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Securities Available for Sale
 3 Months Ended
Mar. 31, 2014
Securities Available For Sale [Abstract]  
SECURITIES AVAILABLE FOR SALE

NOTE 4 – SECURITIES AVAILABLE FOR SALE

 

The Company owns a portfolio of securities of other REITs. During the three months ended March 31, 2014, the Company sold securities with a cost of $3,029,906 and recognized a Gain on Sale of $508,403. The Company also made purchases of $1,153,766 in Securities Available for Sale. Of this amount, the Company made total purchases of 31,114 common shares of Monmouth Real Estate Investment Corporation (MREIC), a related REIT, through MREIC’s Dividend Reinvestment and Stock Purchase Plan for a total cost of $281,272 or weighted average cost of $9.04 per share. The Company owned a total of 1,906,261 MREIC common shares as of March 31, 2014 at a total cost of $15,772,747 and a fair value of $18,185,726.

 

As of March 31, 2014, the Company had eleven securities that were temporarily impaired. The Company considers many factors in determining whether a security is other than temporarily impaired, including the nature of the security and the cause, severity and duration of the impairment.

 

The following is a summary of temporarily impaired securities at March 31, 2014:

 

  Less Than 12 Months  12 Months or Longer
  Fair  Unrealized  Fair  Unrealized
 Value Loss Value Loss
Preferred Stock$    3,944,894 $       (82,258) $    -0- $    -0-
Common Stock1,783,950 (269,441) $    -0- $    -0-
     Total$    5,728,844 $  (351,699) $    -0- $    -0-

 

The following is a summary of the range of the losses on these temporarily impaired securities:

 

Number of

Individual Securities

 

 

Fair Value

 

 

Unrealized Loss

 

Range of Loss

9 $   3,937,154 $      (68,486)0% to 5%
1 232,440 (17,560)7%
1 1,559,250 (265,653)15%
11 $   5,728,844 $ (351,699) 

 

The Company has determined that these securities are temporarily impaired as of March 31, 2014. The Company normally holds REIT securities long term and has the ability and intent to hold securities to recovery. As of March 31, 2014, the Company had total net unrealized gains of $4,438,679 in its REIT securities portfolio.