Debt Obligations

6 Months Ended

Mar. 31, 2015

ligations consist of the following (dollars in thousands):



	March 31, 2015		September 30, 2014
Mortgages payable	$	516,519	$	482,406
Junior subordinated notes	37,400		37,400
Total debt obligations	$	553,919	$	519,806

Mortgages Payable

The Trust assumed mortgage debt of $17,173,000 in connection with the Trust's purchase, in December 2014, of a multi-family property located in Pensacola, FL. The mortgage bears interest at 4.85%, is interest only for 12 months and matures in October 2018.

Contemporaneously with the Trust's increased ownership interest in a joint venture that owns multi-family properties in Houston, TX, the Trust refinanced a $6,494,000 adjustable rate mortgage and obtained a $7,500,000 fixed rate mortgage bearing interest at 4.19%. The new mortgage is interest only until November 2015 and matures in November 2024.

During the six months ended March 31, 2015, the Trust obtained additional mortgage financing as set forth in the table below (dollars in thousands):



Location	Closing Date	Additional Mortgage Debt		Interest Rate		Maturity Date
Melbourne, FL	1/23/15	$	1,907	4.17	%	April 2019
West Palm Beach, FL	3/20/15	$	4,000	4.35	%	April 2019

Note 5 – Debt Obligations - continued

Junior Subordinated Notes

At March 31, 2015 and September 30, 2014, the Trust's junior subordinated notes had an outstanding principal balance of $37,400,000. The interest rates on the outstanding notes is set forth in the table below:



Interest Period	Interest Rate
August 1, 2012 through April 29, 2016	4.90	%
April 30, 2016 through April 30, 2036	Libor + 2.00%

Interest expense relating to the junior subordinated notes was $458,000 for each of the three months ended March 31, 2015 and 2014, and $916,000 for each of the six months ended March 31, 2015 and 2014. Amortization of the deferred costs, a component of interest expense, was $5,000 for each of the three months ended March 31, 2015 and 2014, and $10,000 for each of the six months ended March 31, 2015 and 2014.