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Securities Available for Sale
 12 Months Ended
Dec. 31, 2017
Investments, Debt and Equity Securities [Abstract]  
Securities Available for Sale

NOTE 4 – SECURITIES AVAILABLE FOR SALE

 

The Company’s securities available for sale consist of common and preferred stock of other REITs. The Company does not own more than 10% of the outstanding shares of any of these securities, nor does it have controlling financial interest.

 

As of December 31, 2017 and 2016, the Company’s securities are all classified as available-for-sale. See Note 13 for Fair Value Measurements.

 

The following is a listing of securities available for sale at December 31, 2017:

 

        Interest     Number           Market  
    Series   Rate     of Shares     Cost     Value  
                             
Equity Securities:                                    
Preferred Stock:                                    
CBL & Associates Properties, Inc.   D     7.375 %     2,000     $ 50,269     $ 43,720  
CBL & Associates Properties, Inc.   E     6.625 %     62,724       1,487,145       1,383,064  
Cedar Realty Trust, Inc.   B     7.250 %     18,269       422,544       458,755  
Cedar Realty Trust, Inc.   C     6.500 %     20,000       494,407       500,800  
Colony Northstar, Inc.   I     7.150 %     20,000       500,000       503,600  
Investors Real Estate Trust   C     6.625 %     20,000       500,000       520,308  
Pennsylvania Real Estate Investment Trust   B     7.375 %     40,000       1,000,000       1,007,200  
Pennsylvania Real Estate Investment Trust   D     6.875 %     20,000       498,207       502,200  
Urstadt Biddle Properties, Inc.   G     6.750 %     5,000       125,000       131,000  
Urstadt Biddle Properties, Inc.   H     6.250 %     12,500       312,500       326,875  
Total Preferred Stock                         5,390,072       5,377,522  
                                     
Common Stock:                                    
CBL & Associates Properties, Inc.                 1,500,000       16,157,749       8,490,000  
Franklin Street Properties Corporation                 150,000       1,659,118       1,611,000  
Government Properties Income Trust                 1,020,000       19,430,983       18,910,800  
Kimco Realty Corporation                 750,000       14,475,908       13,612,500  
Monmouth Real Estate Investment Corporation (1)                 2,335,930       20,698,562       41,579,558  
Pennsylvania Real Estate Investment Trust                 150,000       1,602,636       1,783,500  
Select Income Real Estate Investment Trust                 775,000       18,649,691       19,475,750  
Senior Housing Properties Trust                 160,911       2,739,069       3,081,446  
Tanger Factory Outlet                 120,000       2,941,621       3,181,200  
Urstadt Biddle Properties, Inc.                 100,000       2,048,516       2,174,000  
Vereit, Inc.                 1,300,000       11,253,514       10,127,000  
Washington Prime Group                 500,000       4,397,255       3,560,000  
Total Common Stock                         116,054,622       127,586,754  
                                     
Total Securities Available for Sale                       $ 121,444,694     $ 132,964,276  

 

(1) Related entity – See Note 8.

 

The following is a listing of securities available for sale at December 31, 2016:

 

        Interest     Number           Market  
    Series   Rate     of Shares     Cost     Value  
                             
Equity Securities:                                    
Preferred Stock:                                    
Ashford Hospitality Trust, Inc.   A     8.550 %     10,000     $ 251,205     $ 253,800  
CBL & Associates Properties, Inc.   D     7.375 %     2,000       50,269       48,900  
CBL & Associates Properties, Inc.   E     6.625 %     62,724       1,487,145       1,440,789  
Cedar Realty Trust, Inc.   B     7.250 %     58,577       1,411,846       1,426,126  
Chesapeake Lodging Trust   A     7.750 %     20,000       500,000       507,806  
Corporate Office Properties Trust   L     7.375 %     26,000       650,330       656,760  
Kilroy Realty Corporation   G     6.875 %     34,948       844,770       885,932  
LaSalle Hotel Properties   H     7.500 %     40,000       982,589       1,002,000  
Pennsylvania Real Estate Investment Trust   A     8.250 %     68,800       1,720,885       1,739,952  
Pennsylvania Real Estate Investment Trust   B     7.375 %     40,000       1,000,000       1,000,000  
Retail Properties of America, Inc.   A     7.000 %     20,000       481,949       500,000  
Stag Industrial, Inc.   B     6.625 %     20,100       470,007       501,495  
Summit Hotel Properties, Inc.   B     7.875 %     20,000       500,000       514,780  
Sun Communities, Inc.   A     7.125 %     45,000       1,117,377       1,133,550  
Terreno Realty Corporation   A     7.750 %     20,300       507,791       512,575  
Urstadt Biddle Properties, Inc.   F     7.125 %     30,421       756,304       775,735  
Urstadt Biddle Properties, Inc.   G     6.750 %     5,000       125,000       128,000  
Total Preferred Stock                         12,857,467       13,028,200  
                                     
Common Stock:                                    
CBL & Associates Properties, Inc.                 1,000,000       11,785,016       11,500,000  
Cousins Properties, Inc.                 105,950       820,348       901,635  
Gladstone Commercial Corporation                 180,000       3,199,933       3,618,000  
Government Properties Income Trust                 810,000       15,520,076       15,442,650  
Monmouth Real Estate Investment Corporation (1)                 2,237,588       19,231,411       34,100,835  
Nobility Homes Inc.                 20,000       158,200       315,000  
Parkway Properties Inc.                 33,243       628,819       739,657  
Select Income Real Estate Investment Trust                 740,000       17,802,516       18,648,000  
Senior Housing Properties Trust                 220,911       3,760,406       4,181,845  
Urstadt Biddle Properties, Inc.                 85,000       1,761,151       2,049,350  
Vereit, Inc.                 500,000       4,512,658       4,230,000  
Total Common Stock                         79,180,534       95,726,972  
                                     
Total Securities Available for Sale                       $ 92,038,001     $ 108,755,172  

 

(1) Related entity – See Note 8.

 

As of December 31, 2017, the Company held eight securities that the Company determined were temporarily impaired investments. 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 December 31, 2017:

 

    Less than 12 Months     12 Months or Longer  
    Fair Value     Unrealized Loss     Fair Value     Unrealized Loss  
                         
Preferred Stock   $ 1,383,064     $ (104,080 )   $ 43,720     $ (6,549 )
Common Stock     56,311,300       (11,063,227 )     -0-       -0-  
                                 
Total   $ 57,694,364     $ (11,167,307 )   $ 43,720     $ (6,549 )

 

The following is a summary of the range of the losses:

 

Number of

Individual Securities

     Fair Value     Unrealized Loss     Range of Loss  
                     
  2     $ 20,521,800     $ (568,302 )     3 %
  3       25,122,564       (2,094,002 )     6-10 %
  1       43,720       (6,549 )     13 %
  1       3,560,000       (837,254 )     19 %
  1       8,490,000       (7,667,749 )     47 %
                             
  8     $ 57,738,084     $ (11,173,856 )        

 

The Company normally holds REIT securities long term and has the ability and intent to hold securities to recovery. As of December 31, 2017, 2016 and 2015, the securities portfolio had net unrealized holding gains (losses) of $11,519,582, $16,717,171 and $(2,055,027), respectively.

 

During the years ended December 31, 2017, 2016 and 2015, the Company received proceeds of $17,416,146, $14,831,737 and $4,633,019, on sales or redemptions of securities available for sale, respectively. The Company recorded the following Gain (Loss) on Sale of Securities, net:

 

    2017     2016     2015  
                   
Gross realized gains   $ 1,749,034     $ 2,287,454     $ 208,200  
Gross realized losses     (1,506 )     (2,153 )     (3,970 )
                         
Total Realized Gain on Sales of Securities, net   $ 1,747,528     $ 2,285,301     $ 204,230  

 

The Company had margin loan balances of $37,157,467 and $22,727,458 at December 31, 2017 and 2016, respectively, which were collateralized by the Company’s securities portfolio.