INVESTMENT IN REAL ESTATE

9 Months Ended

Mar. 31, 2016

NOTE 3 – INVESTMENT IN REAL ESTATE

Investment in real estate consisted of the following:

As of	March 31, 2016		June 30, 2015
Land	$	24,828,000	$	23,453,000
Buildings, improvements and equipment		66,016,000		64,828,000
Accumulated depreciation		(34,061,000)		(32,513,000)
Investment in real estate, net	$	56,783,000	$	55,768,000

In July 2015, the Company purchased a residential house in Los Angeles, California as a strategic asset for $1,975,000 in cash.

In April 2016, the Company entered into an interest rate swap agreement on its $923,000 mortgage note payable on its commercial property located in Los Angeles, California in order to settle the rate as of March 31, 2016 of 5.43% into a fixed rate of 3.99%. The swap agreement matures in January 2021. A swap is a contractual agreement to exchange interest rate payments.