Debt Obligations

9 Months Ended

Jun. 30, 2016

Debt obligations consist of the following (dollars in thousands):



	June 30, 2016		September 30, 2015
Mortgages payable (a)	$	516,617	$	456,064
Junior subordinated notes	37,400		37,400
Total debt obligations	$	554,017	$	493,464

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(a) Excludes mortgages payable held for sale of $27,130 and $19,248 at June 30, 2016 and September 30, 2015, respectively.

Mortgages Payable

During the nine months ended June 30, 2016, the Trust incurred the following fixed rate mortgage debt in connection with the following acquisitions (dollars in thousands):



Location	Closing Date	Acquisition Mortgage Debt		Interest Rate		Interest only period	Maturity Date
LaGrange, GA	11/18/15	$	16,051	4.36	%	-	February 2022
Katy, TX	1/22/16	30,750		4.44	%	60 months	February 2026
Macon, GA	2/1/16	11,200		4.39	%	24 months	February 2026
Southaven, MS	2/29/16	28,000		4.24	%	60 months	March 2026
San Antonio, TX	5/6/16	26,400		3.61	%	23 months	May 2023
Dallas, TX	5/11/16	27,938		4.01	%	24 months	May 2028
Columbia, SC	5/31/16	12,934		4.28	%	36 months	June 2026
		$	153,273

During the nine months ended June 30, 2016, the Trust obtained supplemental fixed rate mortgage financing as set forth in the table below (dollars in thousands):



Location	Closing Date	Supplemental Mortgage Debt		Interest Rate		Maturity Date
Pensacola, FL	10/13/15	$	3,194	4.92	%	March 2022
Atlanta, GA	11/10/15	5,000		4.93	%	July 2021
Houston, TX	2/9/16	3,865		4.94	%	August 2021
Huntsville, AL	4/15/16	2,650		5.29	%	November 2023
		$	14,709

During the nine months ended June 30, 2016, $8,034,000 was advanced on the construction loan that financed the Greenville, SC (Southridge) development and $6,808,000 was advanced on the loan that is financing the N. Charleston, SC (Factory at Garco) development.

Junior Subordinated Notes

At June 30, 2016 and September 30, 2015, the Trust's junior subordinated notes had an outstanding principal balance of $37,400,000. At June 30, 2016, the interest rate on the outstanding balance is three month LIBOR + 2.00% (i.e., 2.64%).

The junior subordinated notes require interest only payments through the maturity date of April 30, 2036, at which time repayment of the outstanding principal and unpaid interest become due. Interest expense for the three months ended June 30, 2016 and 2015 was $318,000 and $458,000, respectively; interest expense for the nine months ended June 30, 2016 and 2015 was $1,233,000 and $1,375,000, respectively. Amortization of the deferred costs, a component of interest expense, was $5,000 for each of the three months ended June 30, 2016 and 2015, and $15,000 for each of the nine months ended June 30, 2016 and 2015.