v3.26.3
INVESTMENTS IN REAL ESTATE
 12 Months Ended
Jun. 30, 2026
INVESTMENTS IN REAL ESTATE [Abstract]  
INVESTMENTS IN REAL ESTATE
NOTE 3 – INVESTMENTS IN REAL ESTATE

The following tables provide summary information regarding our operating properties, which are owned through our subsidiaries. The ownership interest shown below is the percentage of the property owned by the subsidiary, not the percentage of the subsidiary owned by the Company.

Consolidated Operating Properties

Property Name:
Commodore Apartments
The Park View Apartments
Hollywood Apartments
Shoreline Apartments
Property Owner:
Madison-PVT Partners LLC
PVT-Madison Partners LLC
PT Hillview GP, LLC
MacKenzie-BAA IG Shoreline LLC
Location:
Oakland, CA
Oakland, CA
Los Angeles, CA
Concord, CA
Number of Tenants:
43
35
48
75
Year Built:
1912
1929
1917
1968
Ownership Interest:
100%
100%
100%
100%
 
 
 
 
 
Property Name:
Satellite Place Office Building
First & Main Office Building
1300 Main Office Building
Woodland Corporate Center
Property Owner:
MacKenzie Satellite Place Corp.
First & Main, LP
1300 Main, LP
Woodland Corporate Center Two, LP
Location:
Duluth, GA
Napa, CA
Napa, CA
Woodland, CA
Number of Tenants:
5
8
6
13
Year Built:
2002
2001
2020
2004
Ownership Interest:
100%
100%
100%
100%
 
 
 
 
 
Property Name:
Main Street West Office Building
220 Campus Lane Office Building
Green Valley Executive Center
One Harbor Center
Property Owner:
Main Street West, LP
220 Campus Lane, LLC
GV Executive Center, LLC
One Harbor Center, LP
Location:
Napa, CA
Fairfield, CA
Fairfield, CA
Suisun, CA
Number of Tenants:
9
4
15
11
Year Built:
2007
1990
2006
2001
Ownership Interest:
100%
100%
100%
100%
 
 
 
 
 
Property Name:
Green Valley Medical Center
Aurora at Green Valley
 
 
Property Owner:
Green Valley Medical Center, LP
MRC Aurora, LLC
 
 
Location:
Fairfield, CA
Fairfield, CA
 
 
Number of Tenants:
12
67
 
 
Year Built:
2002
2025
 
 
Ownership Interest:
100%
100%
 
 

In addition to our commercial and residential real estate properties, we own a vacant parcel adjacent to the 220 Campus Lane Office Building in Fairfield, California. We acquired the vacant land in September 2023 with the long-term objective of developing it into a multi-family residential community. This project, known as Blue Ridge, is expected to consist of 84 luxury multi-family units in Solano County, one of the fastest-growing counties in California. The entitlement process for the vacant land is on-going. Our goal is to commence construction in fall 2027; however, this is subject to the city’s approval of our development application submitted in April 2024 and to securing the necessary financial resources. The Company is currently evaluating potential development and financing structures for the project, including discussions with a third-party developer pursuant to which the Company may contribute the land and the third party may arrange construction financing and development capital for the project.

The total depreciation expense of our operating properties for the years ended June 30, 2026 and 2025 were $7,239,178 and $7,902,429, respectively.

Operating Leases:

Our real estate assets are leased to tenants under operating leases that contain varying terms and expirations. The leases may have provisions to extend the lease agreements, options for early termination after paying a specified penalty and other terms and conditions as negotiated. We retain substantially all the risks and benefits of ownership of the real estate assets leased to tenants. Generally, upon the execution of a lease, we do not require a security deposit from tenants on our commercial real estate properties, depending upon the terms of the respective leases and the creditworthiness of the tenants. Even when required, security deposits generally are not significant amounts. Therefore, exposure to credit risk exists to the extent that a receivable from a tenant exceeds the amount of the security deposit. Security deposits received in cash related to tenant leases are included in other accrued liabilities in the accompanying consolidated balance sheets and were immaterial as of June 30, 2026 and 2025.
The following table presents the components of income from real estate operations for the years ended June 30, 2026 and 2025:

 
  
Year Ended June 30,
  
 
  
2026
    
2025
  
Lease income - Operating leases
  
$
18,358,243
    
$
20,781,843
  
Variable lease income (1)
    
1,649,171
      
1,278,000
  
 
  
$
20,007,414
    
$
22,059,843
  

(1) Primarily includes tenant reimbursements for utilities and common area maintenance.

As of June 30, 2026, the future minimum rental income from our real estate properties under non-cancelable operating leases are as follows:

Year ended June 30,:
  
Rental Income
  
2027
  
$
13,128,503
  
2028
    
9,433,168
  
2029
    
7,212,452
  
2030
    
5,709,568
  
2031
    
3,965,064
  
Thereafter
    
10,066,204
  
Total
  
$
49,514,959
  

Lease Intangibles, Above-Market Lease Assets and Below-Market Lease Liabilities, Net

As of June 30, 2026 and 2025, our acquired lease intangibles, above-market lease assets, and below-market lease liabilities were as follows:

 
  
As of June 30, 2026
  
 
  
Lease Intangibles
    
Above-Market
Lease Assets
    
Below-Market
Lease Liabilities
  
Cost
  
$
10,543,760
    
$
628,573
    
$
2,125,446
  
Accumulated amortization
    
(7,437,644
)
    
(462,223
)
    
(1,846,327
)
Accumulated impairment loss
    
(232,915
)
    
(7,840
)
    
(58,112
)
Total
  
$
2,873,201
    
$
158,510
    
$
221,007
  
 
                        
Weighted average amortization period (years)
    
5.5
      
4.6
      
4.8
  

 
  
As of June 30, 2025
  
 
  
Lease Intangibles
    
Above-Market
Lease Assets
    
Below-Market
Lease Liabilities
  
Cost
  
$
11,184,664
    
$
628,572
    
$
2,643,300
  
Accumulated amortization
    
(7,038,895
)
    
(338,589
)
    
(2,082,971
)
Accumulated impairment loss
    
(121,974
)
    
(4,440
)
    
(29,855
)
Total
  
$
4,023,795
    
$
285,543
    
$
530,474
  
 
                        
Weighted average amortization period (years)
    
4.8
      
4.6
      
4.8
  
Our amortization of lease intangibles, above-market lease assets and below-market lease liabilities for the year ended June 30, 2026, were as follows:

 
  
Lease Intangibles
    
Above-Market
Lease Assets
    
Below-Market
Lease Liabilities
  
Amortization
  
$
1,902,449
    
$
130,646
    
$
(292,291
)

Our amortization of lease intangibles, above-market lease assets and below-market lease liabilities for the year ended June 30, 2025, were as follows:

 
  
Lease Intangibles
    
Above-Market
Lease Assets
    
Below-Market
Lease Liabilities
  
Amortization
  
$
3,530,128
    
$
204,116
    
$
(748,219
)

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,
  
 
  
2027
    
2028
    
2029
    
2030
    
2031
    
Thereafter
  
In-place leases, to be included in amortization
  
$
882,505
    
$
571,431
    
$
430,973
    
$
347,449
    
$
217,135
    
$
423,708
  
 
                                                
Above-market lease intangibles
  
$
63,822
    
$
36,119
    
$
30,827
    
$
24,388
    
$
3,354
    
$
-
  
Below-market lease liabilities
    
(126,032
)
    
(42,126
)
    
(31,299
)
    
(6,829
)
    
(6,026
)
    
(8,695
)
 
  
$
(62,210
)
  
$
(6,007
)
  
$
(472
)
  
$
17,559
    
$
(2,672
)
  
$
(8,695
)