INVESTMENTS IN REAL ESTATE (Tables)
|
12 Months Ended |
Jun. 30, 2022 |
|---|
| INVESTMENTS IN REAL ESTATE [Abstract] |
|
| Consolidated Operating Properties Information |
The following tables provide summary information regarding our operating properties, which are owned through our subsidiaries: the Operating Partnership, MacKenzie Satellite, Madison and PVT.
Consolidated Operating Properties
|
Property Name:
|
Addison Corporate Center
|
Commodore Apartments
|
Pon de Leo Apartments
|
|
Property Owner:
|
The Operating Partnership
|
Madison-PVT Partners LLC
|
PVT-Madison Partners LLC
|
|
Location:
|
Windsor, CT
|
Oakland, CA
|
Oakland, CA
|
|
Number of Tenants:
|
6
|
48
|
39
|
|
Year Built:
|
1980
|
1912
|
1929
|
|
Ownership Interest:
|
100%
|
100%
|
100%
|
|
|
|
|
|
|
Property Name:
|
Hollywood Property
|
Shoreline Apartments
|
Satellite Place
|
|
Property Owner:
|
The Operating Partnership
|
The Operating Partnership
|
MacKenzie Satellite Place Inc.
|
|
Location:
|
Hollywood, CA
|
Concord, CA
|
Duluth, GA
|
|
Number of Tenants:
|
16
|
76
|
1
|
|
Year Built:
|
1917
|
1968
|
2002
|
|
Ownership Interest:
|
100%
|
100%
|
100%
|
|
| Allocation of Real Estate Assets Acquired |
The following table presents
the purchase price allocation of real estate assets acquired on October 4, 2021 based on asset acquisition accounting.
|
Property Name:
|
|
Hollywood Property
|
|
|
Acquisition Date:
|
|
October 4, 2021
|
|
|
Purchase Price Allocation
|
|
|
|
|
Land
|
|
$
|
8,704,595
|
|
|
Building
|
|
|
10,524,548
|
|
|
Site Improvements
|
|
|
30,436
|
|
|
Tenant Improvements
|
|
|
41,852
|
|
|
Furniture, Fixtures & Equipment
|
|
|
361,055
|
|
|
Lease In Place
|
|
|
204,346
|
|
|
Leasing Commissions
|
|
|
23,998
|
|
|
Total assets acquired
|
|
$
|
19,890,830
|
|
The following table presents the purchase price allocation of real estate assets acquired on May 16, 2022 based
on asset acquisition accounting.
|
Property Name:
|
|
Shoreline Apartments
|
|
|
Acquisition Date:
|
|
May 16, 2022
|
|
|
Purchase Price Allocation
|
|
|
|
|
Land
|
|
$
|
7,559,390
|
|
|
Building
|
|
|
17,859,545
|
|
|
Site Improvements
|
|
|
1,407,789
|
|
|
Furniture, Fixtures & Equipment
|
|
|
857,443
|
|
|
Lease In Place
|
|
|
552,950
|
|
|
Total assets acquired
|
|
$
|
28,237,117
|
|
The following table presents the purchase price allocation of real estate assets acquired on June 1, 2022 based
on asset acquisition accounting.
|
Property Name:
|
|
Satellite Place
|
|
|
Acquisition Date:
|
|
June 1, 2022
|
|
|
Purchase Price Allocation
|
|
|
|
|
Land
|
|
$
|
2,966,129
|
|
|
Building
|
|
|
6,465,450
|
|
|
Site Imporvements
|
|
|
2,114,369
|
|
|
Tenant Improvements
|
|
|
2,136,966
|
|
|
Lease in Place
|
|
|
1,028,415
|
|
|
Leasing Commissions
|
|
|
436,799
|
|
|
Total assets acquired
|
|
|
15,148,128
|
|
|
|
|
|
|
|
|
Net leasehold asset (liability)
|
|
|
(517,865
|
)
|
|
|
|
|
|
|
|
Total assets acquired, net
|
|
$
|
14,630,263
|
|
|
| Components of Income From Real Estate Operations |
The following table presents the components of income from real estate operations for the year ended June 30, 2022 and six months ended June 30, 2021:
|
|
|
Year Ended
|
|
|
Six Months Ended
|
|
|
|
|
June 30, 2022
|
|
|
June 30, 2021
|
|
|
|
|
|
|
|
|
|
|
Lease Income - Operating leases
|
|
$
|
8,783,327
|
|
|
$
|
3,141,111
|
|
|
Variable lease income (1)
|
|
|
1,585,847
|
|
|
|
604,004
|
|
|
|
|
$
|
10,369,174
|
|
|
$
|
3,745,115
|
|
|
(1) |
Primarily includes tenant
reimbursements for utilities and common area maintenance.
|
|
| Real Estate Properties Under Non-Cancelable Operating Leases |
As of June 30, 2022, the future minimum rental income from our real estate properties under non-cancelable operating leases are as follows:
|
Year ended June 30,:
|
|
Rental Income
|
|
|
2023
|
|
$
|
3,111,256
|
|
|
2024
|
|
|
1,694,724
|
|
|
2025
|
|
|
1,727,946
|
|
|
2026
|
|
|
1,772,903
|
|
|
2027
|
|
|
1,819,230
|
|
|
Thereafter
|
|
|
5,591,966
|
|
|
Total
|
|
$
|
15,718,025
|
|
|
| Acquired Lease Intangibles, Above-Market Lease Assets and Below-Market Lease Liabilities |
As of June 30, 2022 and 2021, our acquired lease intangibles, above-market lease assets, and below-market lease liabilities were as follows:
|
|
|
As of June 30, 2022
|
|
|
|
|
Lease Intangibles
|
|
|
Above-Market
Lease Asset
|
|
|
Below-Market
Lease Liabilities
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost
|
|
$
|
2,889,828
|
|
|
$
|
-
|
|
|
$
|
1,455,317
|
|
|
Accumulated amortization
|
|
|
(586,168
|
)
|
|
|
-
|
|
|
|
(391,738
|
)
|
|
Total
|
|
$
|
2,303,660
|
|
|
$
|
-
|
|
|
$
|
1,063,579
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average amortization period (years)
|
|
|
5.2
|
|
|
|
-
|
|
|
|
4.9
|
|
|
|
|
As of June 30, 2021
|
|
|
|
|
Lease Intangibles
|
|
|
Above-Market
Lease Asset
|
|
|
Below-Market
Lease Liabilities
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost
|
|
$
|
5,141,279
|
|
|
$
|
447,663
|
|
|
$
|
937,452
|
|
|
Accumulated amortization
|
|
|
(1,086,485
|
)
|
|
|
(63,952
|
)
|
|
|
(99,139
|
)
|
|
Total
|
|
$
|
4,054,794
|
|
|
$
|
383,711
|
|
|
$
|
838,313
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average amortization period (years)
|
|
|
3.1
|
|
|
|
3.5
|
|
|
|
3.4
|
|
|
| Amortization of Lease Intangibles, Above-Market Lease Assets And Below-Market Lease Liabilities |
Our amortization of lease intangibles, above-market lease assets and below-market lease liabilities for the year ended June 30, 2022, were as
follows:
|
|
|
Year Ended
|
|
|
|
|
June 30, 2022
|
|
|
|
|
Lease
Intangibles
|
|
|
Above-Market
Lease Asset
|
|
|
Below-Market
Lease Liabilities
|
|
|
Amortization
|
|
$
|
1,677,943
|
|
|
$
|
127,904
|
|
|
$
|
(292,599
|
)
|
Our amortization of lease intangibles, above-market lease assets and below-market lease liabilities for the six months ended June 30, 2021, were as
follows:
|
|
|
Six Months Ended
|
|
|
|
|
June 30, 2021
|
|
|
|
|
Lease
Intangibles
|
|
|
Above-Market
Lease Asset
|
|
|
Below-Market
Lease Liabilities
|
|
|
Amortization
|
|
$
|
1,086,486
|
|
|
$
|
63,952
|
|
|
$
|
(99,139
|
)
|
|
| Projected Amortization Expense and Adjustments |
The following table provides the projected amortization expense and adjustments to revenue from tenants for intangible assets and liabilities for
the next five years:
|
|
|
Year Ended June 30, :
|
|
|
|
|
2023
|
|
|
2024
|
|
|
2025
|
|
|
2026
|
|
|
2027
|
|
|
Thereafter
|
|
|
In-place leases, to be included in amortization
|
|
$
|
491,084
|
|
|
$
|
350,698
|
|
|
$
|
350,698
|
|
|
$
|
333,418
|
|
|
$
|
212,460
|
|
|
$
|
565,302
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Above-market lease intangibles
|
|
$
|
-
|
|
|
$
|
-
|
|
|
$
|
-
|
|
|
$
|
-
|
|
|
$
|
-
|
|
|
$
|
-
|
|
|
Below-market lease liabilities
|
|
|
(335,985
|
)
|
|
|
(286,053
|
)
|
|
|
(134,237
|
)
|
|
|
(68,290
|
)
|
|
|
(68,290
|
)
|
|
|
(170,724
|
)
|
|
Total to be included in revenue from tenants
|
|
$
|
(335,985
|
)
|
|
$
|
(286,053
|
)
|
|
$
|
(134,237
|
)
|
|
$
|
(68,290
|
)
|
|
$
|
(68,290
|
)
|
|
$
|
(170,724
|
)
|
|