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INVESTMENTS IN REAL ESTATE
 6 Months Ended
Dec. 31, 2023
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 Parent Company or the Operating Partnership.
 
Consolidated Operating Properties
 
Property Name:
  
Commodore Apartments
  
Pon de Leo 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
  
Hollywood, CA
  
Concord, CA
Number of Tenants:
   47  
36
  
43
  
76
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:
  
3
  
8
  
7
   14
Year Built:
  
2002
  
2001
  
2020
   2004
Ownership Interest:
  
100%
  
100%
  
100%
   100%
                 
Property Name:
  Main Street West Office Building   220 Campus Lane Office Building        
Property Owner:
  Main Street West, LP   220 Campus Lane, LLC        
Location:
  Napa, CA   Fairfield , CA        
Number of Tenants:
  7   1        
Year Built:
  2007   1990        
Ownership Interest:
  100%   100%        
  
The following table presents the purchase price allocation of real estate assets acquired during the six months ended December 31, 2023 based on asset acquisition accounting.

Property Name:
  
220 Campus Lane Office Building
  
Acquisition Date:
  
September 8, 2023
  
Purchase Price Allocation
      
Land
  
$
1,357,288
  
Building
    
859,594
  
Parking Lot
    
410,116
  
Debt mark-to-market
    
223,000
  
         
Total assets acquired
   $
2,849,998
  

Property Name:
  
Campus Lane Residential Land
  
Acquisition Date:
  
September 8, 2023
  
Purchase Price Allocation
        
Land
   $
1,503,758
  
Debt mark-to-market
    120,000  
         
Total assets acquired
  
$
1,623,758
  


The total depreciation expense of our operating properties for the three and six months ended December 31, 2023 were $1,146,504 and $2,276,279, respectively. The total depreciation expense of our operating properties for the three and six months ended December 31, 2022 were $852,671 and $1,558,933, 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 December 31, 2023 and June 30, 2023.

The following table presents the components of income from real estate operations for the three and six months ended December 31, 2023:
 
 
  
Three Months Ended
    
Six Months Ended
  
 
  
December 31, 2023
    
December 31, 2023
  
 
            
Lease income - Operating leases
  
$
3,334,728
    
$
6,690,518
  
Variable lease income (1)
    
242,758
      
446,949
  
 
  
$
3,577,486
    
$
7,137,467
  
 
 
(1)
Primarily includes tenant reimbursements for utilities and common area maintenance.

The following table presents the components of income from real estate operations for the three and six months ended December 31, 2022:
 
 
  
Three Months Ended
    
Six Months Ended
  
 
  
December 31, 2022
    
December 31, 2022
  
 
            
Lease income - Operating leases
  
$
3,253,511
    
$
5,997,594
  
Variable lease income (1)
    
420,741
      
745,161
  
 
  
$
3,674,252
    
$
6,742,755
  
 

 		(1)
Primarily includes tenant reimbursements for utilities and common area maintenance.
 
As of December 31, 2023, the future minimum rental income from our real estate properties under non-cancelable operating leases are as follows:
 
Year ended June 30, :
  
Rental Income
  
2024
  
$
4,289,124
  
2025
    
6,903,886
  
2026
    
5,545,612
  
2027
    
3,979,488
  
2028
    
3,648,482
  
Thereafter
    
9,418,430
  
Total
  
$
33,785,022
  

Lease Intangibles, Above-Market Lease Assets and Below-Market Lease Liabilities, Net
 
As of December 31, 2023, our acquired lease intangibles, above-market lease assets, and below-market lease liabilities were as follows:
 
   
Lease Intangibles
    
Above-Market
Lease Asset
    
Below-Market
Lease Liabilities
  
                   
Cost
  
$
8,024,309
    
$
419,166
    
$
2,346,666
  
Accumulated amortization
    
(2,967,959
)
    
(129,504
)
    
(1,186,294
)
Total
  
$
5,056,350
    
$
289,662
    
$
1,160,372
  
                         
Weighted average amortization period (years)
    
5.2
      
5.4
      
4.9
  
 
As of June 30, 2023, our acquired lease intangibles, above-market lease assets and below-market lease liabilities were as follows:
 
   
Lease Intangibles
    
Above-Market
Lease Asset
    
Below-Market
Lease Liabilities
  
                   
Cost
  
$
7,760,923
    
$
419,166
    
$
2,346,666
  
Accumulated amortization
    
(2,124,799
)
    
(70,653
)
    
(936,576
)
Total
  
$
5,636,124
    
$
348,513
    
$
1,410,090
  
                         
Weighted average amortization period (years)
     4.9
      
5.4
      
5.1
  

Our amortization of lease intangibles, above-market lease assets and below-market lease liabilities for the three and six months ended December 31, 2023 were as follows:
 

  
Three Months Ended December 31, 2023
 

 
Lease Intangibles
    
Above-Market
Lease Asset
    
Below-Market
Lease Liabilities
  
Amortization
  
$
413,267
    
$
29,425
     $ (124,858 )

 
  
Six Months Ended December 31, 2023
  
 
  
Lease Intangibles
Above-Market
Lease Asset
Below-Market
Lease Liabilities
  
Amortization
  
$
843,160
    
$
58,851
    
$
(249,718
)

Our amortization of lease intangibles, above-market lease assets and below-market lease liabilities for the three and six months ended December 31, 2022, were as follows:

 
  
Three Months Ended December 31, 2022
  
 
  
Lease Intangibles
    
Above-Market
Lease Asset
    
Below-Market
Lease Liabilities
  
Amortization
  
$
300,089
    
$
10,559
    
$
(99,830
)

 
  
Six Months Ended December 31, 2022
  
 
  
Lease Intangibles
    
Above-Market
Lease Asset
    
Below-Market
Lease Liabilities
  
Amortization
  
$
502,151
    
$
14,540
    
$
(197,554
)
 
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,
  
   
2024 (remainder)
    
2025
    
2026
    
2027
    
2028
     Thereafter
 
In-place leases, to be included in amortization
  
$
798,732
    
$
1,328,605
    
$
936,509
    
$
559,555
    
$
494,084
     $ 938,865  
                                                 
Above-market lease intangibles
   $
56,874
     $
70,864
     $
41,731
     $
30,177
     $
26,314
     $
63,702  
Below-market lease liabilities
    
(201,528
)
    
(286,084
)
    
(195,626
)
    
(158,666
)
    
(133,125
)
     (185,343 )

 
$
(144,654
)
  
$
(215,220
)
  
$
(153,895
)
  
$
(128,489
)
  
$
(106,811
)
   $ (121,641 )