Securities Available For Sale

9 Months Ended

Sep. 30, 2016

Investments, Debt and Equity Securities [Abstract]

Securities Available For Sale

NOTE 4 – SECURITIES AVAILABLE FOR SALE

The Company’s Securities Available for Sale at Fair Value consists primarily of marketable common and preferred stock of other REITs with a fair value of $111,046,262 as of September 30, 2016. The Company generally limits its investment in marketable securities to no more than approximately 20% of its undepreciated assets. The REIT securities portfolio provides the Company with additional liquidity and additional income and serves as a proxy for real estate when more favorable risk adjusted returns are not available.

During the nine months ended September 30, 2016, the Company sold securities with a cost basis of $10,431,184 and recognized a Gain on Sale of $1,898,836. The Company also made purchases of $23,453,933 in Securities Available for Sale. Of this amount, the Company made total purchases of 86,050 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 $1,023,326 or weighted average cost of $11.89 per share. The Company owned a total of 2,211,321 MREIC common shares as of September 30, 2016 at a total cost of $18,878,380 and a fair value of $31,555,547.

As of September 30, 2016, the Company had total net unrealized gains of $20,957,227 in its REIT securities portfolio. The Company held two securities that had unrealized losses as of September 30, 2016. 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 Company normally holds REIT securities long-term and has the ability and intent to hold these securities to recovery.

The following is a summary of the securities that the Company has determined to be temporarily impaired as of September 30, 2016:

	Less Than 12 Months					12 Months or Longer
	Fair		Unrealized			Fair		Unrealized
	Value		Loss			Value		Loss
Preferred Stock	$	100,340	$	(2,082	)	$	-0-	$	-0-
Common Stock		-0-		-0-			-0-		-0-
Total	$	100,340	$	(2,082	)	$	-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
	2	$	100,340	$	(2,082	)		0-4%