10-Q

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

FORM 10-Q

(Mark One)

x QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15 (d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the Quarterly period ended  September 30, 2019

OR

¨ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15 (d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from                                                                     to                                                  

Commission file number 1-7865

HMG/COURTLAND PROPERTIES, INC.

(Exact name of small business issuer as specified in its charter)

Delaware	59-1914299
(State or other jurisdiction of	(I.R.S. Employer
incorporation or organization)	Identification No.)

1870 S. Bayshore Drive, Coconut Grove, Florida	33133
(Address of principal executive offices)	(Zip Code)

305-854-6803

(Registrant's telephone number, including area code)

Not Applicable

(Former name, former address and former fiscal year, if changed since last report)

Indicate by check mark whether the issuer (1) has filed all reports required to be filed by Sections 13 or 15 (d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. 

Yes x  No ¨

Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files).
Yes x  No ¨

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

Large accelerated filer ¨	Accelerated filer ¨	Non-accelerated filer ¨	Smaller reporting company x
Emerging growth company ¨
	(Do not check if a smaller reporting company)

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the exchange Act).   Yes ¨  No x

Title of each class	Trading Symbol(s)	Name of each exchange on which registered
Common Stock - Par value $1.00 per share	HMG	NYSE

APPLICABLE ONLY TO CORPORATE ISSUERS:

State the number of shares outstanding of each of the issuer's classes of common equity, as of the latest practicable date.  1,013,292 Common shares were outstanding as of November 13, 2019.

HMG/COURTLAND PROPERTIES, INC.

Index

		PAGE
		NUMBER
PART I.	Condensed Consolidated Financial Information
	Item 1.  Financial Statements
	Condensed Consolidated Balance Sheets as of September 30, 2019 (Unaudited) and December 31, 2018	1
	Condensed Consolidated Statements of Income for the Three and Nine Months Ended September 30, 2019 and 2018 (Unaudited)	2
	Condensed Consolidated Statements of Changes in Stockholder’s Equity for the Three and Nine Months Ended September 30, 2019 and 2018 (Unaudited)	3
	Condensed Consolidated Statements of Cash Flows for the Nine Months Ended September 30, 2019 and 2018 (Unaudited)	4
	Notes to Condensed Consolidated Financial Statements (Unaudited)	5
	Item 2.  Management's Discussion and Analysis of Financial Condition and Results of Operations	11
	Item 3.  Quantitative and Qualitative Disclosures About Market Risk	12
	Item 4.  Controls and Procedures	12
PART II.	Other Information
	Item 1.  Legal Proceedings	12
	Item 2.  Unregistered Sales of Equity Securities and Use of Proceeds	12
	Item 3.   Defaults Upon Senior Securities	12
	Item 4.  Mine Safety Disclosures	12
	Item 5.  Other Information	12
	Item 6.  Exhibits	12
Signatures		13

Cautionary Statement.  This Form 10-Q contains certain statements relating to future results of the Company that are considered "forward-looking statements" within the meaning of the Private Litigation Reform Act of 1995.  Actual results may differ materially from those expressed or implied as a result of certain risks and uncertainties, including, but not limited to, changes in political and economic conditions; interest rate fluctuation; competitive pricing pressures within the Company's market; equity and fixed income market fluctuation; technological change; changes in law; changes in fiscal, monetary, regulatory and tax policies; monetary fluctuations as well as other risks and uncertainties detailed elsewhere in this Form 10-Q or from time-to-time in the filings of the Company with the Securities and Exchange Commission.  Such forward-looking statements speak only as of the date on which such statements are made, and the Company undertakes no obligation to update any forward-looking statement to reflect events or circumstances after the date on which such statement is made or to reflect the occurrence of unanticipated events.

HMG/COURTLAND PROPERTIES, INC.  AND SUBSIDIARIES

CONDENSED CONSOLIDATED BALANCE SHEETS

	September 30,			December 31,
	2019			2018
	(UNAUDITED)
Investment properties, net of accumulated depreciation:
Office building and other commercial property	$	929,812		$	875,198
Total investment properties, net		929,812			875,198
Cash and cash equivalents		16,237,134			19,738,174
Investments in marketable securities		3,491,531			3,075,718
Other investments		5,919,222			6,039,456
Investment in affiliate		1,437,632			1,637,985
Loans, notes and other receivables		1,799,055			1,796,926
Investment in residential real estate partnership		3,203,225			200,000
Other assets		72,779			73,477
TOTAL ASSETS	$	33,090,390		$	33,436,934
LIABILITIES
Margin payable	$	9,926,672		$	9,857,918
Dividends payable		-			506,646
Accounts payable, accrued expenses and other liabilities		407,256			370,632
Amounts due to Adviser		64,356			40,426
Note payable to affiliate		1,000,000			1,340,000
Deferred income taxes payable		63,338			47,888
TOTAL LIABILITIES		11,461,622			12,163,510
STOCKHOLDERS' EQUITY
Excess common stock, $1 par value; 100,000 shares authorized: no shares issued		-			-
Common stock, $1 par value; 1,050,000 shares authorized, 1,013,292 issued as of September 30, 2019 and 1,046,393 shares issued as of December 31, 2018		1,013,292			1,046,393
Additional paid-in capital		23,859,686			24,157,986
Less: Treasury shares at cost 33,101 shares		-			(340,281	)
Undistributed gains from sales of properties, net of losses		54,642,764			54,642,764
Undistributed losses from operations		(58,136,652	)		(58,473,807	)
Total stockholders' equity		21,379,090			21,033,055
Noncontrolling interest		249,678			240,369
TOTAL EQUITY		21,628,768			21,273,424
TOTAL LIABILITIES AND EQUITY	$	33,090,390		$	33,436,934

See notes to the condensed consolidated financial statements

1

HMG/COURTLAND PROPERTIES, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED)

	For the three months ended						For the nine months ended
	September 30,						September 30,
	2019			2018			2019			2018
REVENUES
Real estate rentals and related revenue	$	18,786		$	18,092		$	56,358		$	54,275
EXPENSES
Operating expenses:
Rental and other properties		31,223			343,196			76,236			382,916
Adviser's base fee		165,000			165,000			495,000			495,000
General and administrative		41,048			92,540			150,550			212,682
Professional fees and expenses		22,637			13,527			144,662			134,819
Directors' fees and expenses		21,583			17,452			59,744			57,817
Depreciation and amortization		3,849			3,849			11,548			11,548
Interest expense		13,447			19,032			42,748			68,262
Total expenses		298,787			654,596			980,488			1,363,044
Loss before other income, income taxes and gain on sale of real estate		(280,001	)		(636,504	)		(924,130	)		(1,308,769	)
Net realized and unrealized gains from investments in marketable securities		12,190			1,829			252,747			26,291
Equity gain (loss) from operations of residential real estate partnerships		3,225			-			3,225			(143,890	)
Net income from other investments		479,258			80,208			654,239			370,616
Interest, dividend and other income		136,909			82,756			375,336			271,298
Total other income		631,582			164,793			1,285,547			524,315
Income (loss) before taxes and gain on sale of real estate		351,581			(471,711	)		361,417			(784,454	)
Provision for income taxes		(12,010	)		(26,532	)		(14,954	)		(60,111	)
Net income (loss) before gain on sale of real estate		339,571			(498,243	)		346,463			(844,565	)
Gain on sale of real estate, net		-			-			-			5,473,887
Net income (loss)		339,571			(498,243	)		346,463			4,629,322
Gain attributable to non-controlling interest		(850	)		(3,097	)		(9,308	)		(14,010	)
Net income (loss) attributable to the company	$	338,721		$	(501,340	)	$	337,155		$	4,615,312
Weighted average common shares outstanding-basic and diluted		1,013,292			1,013,292			1,013,292			1,011,349
Net income (loss) per common share:
Basic and diluted net income (loss) per share	$	0.33		$	(0.49	)	$	0.33		$	4.56

See notes to the condensed consolidated financial statements

2

HMG/COURTLAND PROPERTIES, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY

FOR THE THREE AND NINE MONTHS ENDED SEPTEMBER 30, 2019 AND 2018 (Unaudited)

	Common Stock				Additional		Undistributed  Gains from Sales of Properties			Undistributed  Losses from			Treasury Stock					Total Stockholders'
	Shares		Amount		Paid-In Capital		Net of Losses			Operations			Shares		Cost			Equity
Balance as of January 1, 2018		1,035,493	$	1,035,493	$	24,076,991	$	52,208,753		$	(57,120,990	)		33,101	$	(340,281	)	$	19,859,966
Net income (loss) for three months ended March 31, 2018		-		-		-		5,473,887			(282,994	)		-		-			5,190,893
Stock options exercised, net of 1,600 re-load shares		10,900		10,900		80,995		-			-			-		-			91,895
Dividend paid -$2.50 per share		-		-		-		(2,533,230	)		-			-		-			(2,533,230	)
Balance as of March 31, 2018		1,046,393		1,046,393		24,157,986		55,149,410			(57,403,984	)		33,101		(340,281	)		22,609,524
Net loss for three months ended June 30, 2018		-		-		-		-			(74,240	)		-		-			(74,240	)
Balance as of June 30, 2018		1,046,393		1,046,393		24,157,986		55,149,410			(57,478,224	)		33,101		(340,281	)		22,535,284
Net loss for three months ended September 30, 2018		-		-		-		-			(501,340	)		-		-			(501,340	)
Balance as of September 30, 2018		1,046,393	$	1,046,393	$	24,157,986	$	55,149,410		$	(57,979,564	)		33,101	$	(340,281	)	$	22,033,944

	Common Stock						Additional			Undistributed  Gains from Sales of Properties		Undistributed  Losses from			Treasury Stock						Total Stockholders'
	Shares			Amount			Paid-In Capital			Net of Losses		Operations			Shares			Cost			Equity
Balance as of January 1, 2019		1,046,393		$	1,046,393		$	24,157,986		$	54,642,764	$	(58,473,807	)		33,101		$	(340,281	)	$	21,033,055
Net loss for three months ended March 31, 2019		-			-			-			-		(11,116	)		-			-			(11,116	)
Balance as of March 31, 2019		1,046,393			1,046,393			24,157,986			54,642,764		(58,484,923	)		33,101			(340,281	)		21,021,939
Net income for three months ended June 30, 2019		-			-			-			-		9,550			-			-			9,550
Retired 33,101 treasury shares		(33,101	)		(33,101	)		(307,180	)		-		-			(33,101	)		340,281			-
Balance as of June 30, 2019		1,013,292			1,013,292			23,850,806			54,642,764		(58,475,373	)		-			-			21,031,489
Net income for three months ended September 30, 2019		-			-			-			-		338,721			-			-			338,721
Stock compensationexpense								8,880														8,880
Balance as of September 30, 2019		1,013,292		$	1,013,292		$	23,859,686		$	54,642,764	$	(58,136,652	)	$	-		$	-		$	21,379,090

See notes to the condensed consolidated financial statements

3

HMG/COURTLAND PROPERTIES, INC.  AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)

	For the nine months ended  September 30,
	2019			2018
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income attributable to the Company	$	337,155		$	4,615,312
Adjustments to reconcile net income attributable to the Company to net cash used in operating activities:
Depreciation expense		11,548			11,548
Stock compensation expense		8,880			-
Net income from other investments, excluding impairment losses		(654,239	)		(370,616	)
Equity (gain) on sale of property in residential real estate partnership		-			(5,473,887	)
Equity (gain) loss from operations of residential real estate partnership		(3,225	)		143,890
Net (gains) from investments in marketable securities		(252,747	)		(26,291	)
Net gain attributable to non-controlling interest		9,308			14,010
Deferred income tax expense		15,450			60,111
Changes in assets and liabilities:
Other assets and other receivables		(7,616	)		62,942
Accounts payable, accrued expenses and other liabilities		(1,785	)		(223,636	)
Total adjustments		(874,426	)		(5,801,929	)
Net cash used in operating activities		(537,271	)		(1,186,617	)
CASH FLOWS FROM INVESTING ACTIVITIES:
Net proceeds from sales and redemptions of securities		1,096,670			1,140,259
Investments in marketable securities		(959,737	)		(1,379,385	)
Distribution from investment in residential real estate partnership, Orlando, FL		6,187			7,525,000
Contributions to investment residential real estate partnership, Fort Myers, FL		(3,000,000	)		(200,000	)
Distributions from other investments		1,435,879			1,560,667
Contributions to other investments		(919,613	)		(1,079,783	)
Proceeds from collections of mortgage loans and notes receivables		-			500,000
Distribution from affiliate		220,899			193,286
Purchases and improvements of properties		(66,162	)		(26,097	)
Net cash (used in) provided by investing activities		(2,185,877	)		8,233,947
CASH FLOWS FROM FINANCING ACTIVITIES:
Margin borrowings		68,754			9,725,280
Dividend paid		(506,646	)		(2,533,230	)
Repayment of note payable to affiliate		(340,000	)		(210,000	)
Proceeds from stock options exercised		-			91,895
Net cash (used in) provided by financing activities		(777,892	)		7,073,945
Net (decrease) increase in cash and cash equivalents		(3,501,040	)		14,121,275
Cash and cash equivalents at beginning of the period		19,738,174			5,223,995
Cash and cash equivalents at end of the period	$	16,237,134		$	19,345,270
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION:
Cash paid during the period for interest	$	43,000		$	68,000
NON-CASH INVESTING AND FINANCING ACTIVITIES:
Retirement of treasury stock during the period	$	340,281		$	-

See notes to the condensed consolidated financial statements

4

HMG/COURTLAND PROPERTIES, INC. AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

1. CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

In the opinion of the Company, the accompanying unaudited condensed consolidated financial statements prepared in accordance with instructions for Form 10-Q, include all adjustments (consisting only of normal recurring accruals) which are necessary for a fair presentation of the results for the periods presented.  Certain information and footnote disclosures normally included in the consolidated financial statements prepared in accordance with accounting principles generally accepted in the United States of America have been condensed or omitted.  It is suggested that these condensed consolidated financial statements be read in conjunction with the Company's Annual Report for the year ended December 31, 2018.  The balance sheet as of December 31, 2018 was derived from audited consolidated financial statements as of that date. The results of operations for the three and nine months ended September 30, 2019 are not necessarily indicative of the results to be expected for future periods or the full year.

The condensed consolidated financial statements include the accounts of HMG/Courtland Properties, Inc. (the "Company") and entities in which the Company owns a majority voting interest or controlling financial interest. All material transactions and balances with consolidated and unconsolidated entities have been eliminated in consolidation or as required under the equity method.

2. RECENT ACCOUNTING PRONOUNCEMENTS

In June 2018, the FASB issued ASU 2018-07, “Compensation – Stock Compensation (Topic 718).” ASU 2018-07 simplifies the accounting for nonemployee stock-based payment transactions. This ASU is effective for public entities for interim and annual reporting periods beginning after December 15, 2018, and early application is permitted. The adoption of this guidance on January 1, 2019 did not have an impact on the Company’s consolidated financial statements.

In February 2016, the FASB issued ASU 2016-02, “Leases,” which created a new Topic, ASC Topic 842 and established the core principle that a lessee should recognize the assets, representing rights-of-use, and liabilities to make lease payments that arise from leases. For leases with a term of 12 months or less, a lessee is permitted to make an election under which such assets and liabilities would not be recognized, and lease expense would be recognized generally on a straight-line basis over the lease term. This ASU is effective for public entities for interim and annual reporting periods beginning after December 15, 2018, and early application is permitted. The adoption of this guidance on January 1, 2019 did not have an impact on the Company’s consolidated financial statements.

The Company does not believe that any recently issued, but not yet effective accounting standards, if currently adopted, will have a material effect on the Company’s consolidated financial position, results of operations and cash flows.

3. INVESTMENT IN RESIDENTIAL REAL ESTATE PARTNERSHIP (FORT MYERS, FL)

As previously reported on Form 8-K dated July 19, 2019, pursuant to the terms of a Construction and Mini Perm Loan Agreement ("Loan Agreement"), between Murano At Three Oaks Associates LLC, a Florida limited liability company formed in September 2018 (the “Borrower”) which is 25% owned by HMG, and PNC Bank, National Association ("Lender"), Lender provided a construction loan to the Borrower for the principal sum of approximately $41.59 million (“Loan”). The proceeds of the Loan shall be used to finance the construction of multi-family residential apartments containing 318 units totaling approximately 312,000 net rentable square feet on a 17.5-acre site located in Fort Myers, Florida ("Project").  The Project site was purchased by the Borrower concurrently with the closing of the Loan. Total development costs for the Project are estimated at approximately $56.08 million and the Borrower’s equity totals approximately $14.49 million. HMG’s share of the equity is 25%, or approximately $3.62 million, all of which has been funded to date including approximately $423,000 funded on October 8, 2019. Construction activities on the Project site began in August 2019.There is no outstanding amount on the loan as of September 30, 2019.

5

HMG and the other members (or affiliates thereof) of the Borrower ("Guarantors") entered into a Completion Guaranty ("Completion Guaranty") and a Guaranty and Suretyship Agreement ("Repayment Guaranty") (collectively, the “Guaranties”). Under the Completion Guaranty, each Guarantor shall unconditionally guaranty, as a primary obligor, and become surety for the prompt payment and performance by Borrower of the “Guaranteed Obligations” (as defined). Under the Repayment Guaranty, Guarantor unconditionally guarantees, as a primary obligor, and becomes surety for the prompt payment and performance of, as defined (i) all Interest Obligations, (ii) all Loan Document Obligations, (iii) all Expense Obligations, (iv) the Carrying Cost Obligations, (v) the Principal Amount, (vi) interest on each of the foregoing including, if applicable, interest at the Default Rate (as defined). At all times prior to the First Reduction Date (as defined below), the Guarantors are collectively responsible for 30% of the Principal Obligations, (ii) at all times after the First Reduction Date, the Guarantors are collectively responsible for15% of the Principal Obligations, and (iii) at all times after the Second Reduction Date, 0% of the Principal Obligations. First Reduction Conditions" means satisfaction of the following conditions: (i) no Event of Default has occurred and is continuing; (ii) Completion of Construction has occurred; and (iii) the Project has achieved a DSCR of not less than 1.25 to 1.00 for two (2) consecutive fiscal quarters.

Each Guarantor is required to maintain compliance with the following financial covenants, as defined: (1) liquidity shall not be less than $2.5 million. Liquidity is defined as the sum of unencumbered, unrestricted cash and cash equivalents and marketable securities, and (2) net worth shall not be less than $10 million.  As of September 30, 2019, HMG was in compliance with all covenants required by Guarantors in the Loan Agreement.

4. INVESTMENTS IN MARKETABLE SECURITIES

Investments in marketable securities consist primarily of large capital corporate equity and debt securities in varying industries or issued by government agencies with readily determinable fair values. These securities are stated at market value, as determined by the most recent traded price of each security at the balance sheet date. Consistent with the Company's overall current investment objectives and activities its entire marketable securities portfolio is classified as trading. Accordingly, all unrealized gains (losses) on this portfolio are recorded in income.  Included in investments in marketable securities is approximately $1.90 million and $1.76 million of large capital real estate investment trusts (REITs) as of September 30, 2019 and December 31, 2018, respectively.

Net realized and unrealized gain from investments in marketable securities for the three and nine months ended September 30, 2019 and 2018 is summarized below:

	Three months ended September 30,						Nine months ended September 30,
Description	2019			2018			2019		2018
Net realized gain from sales of securities	$	17,000		$	39,000		$	6,000	$	35,000
Unrealized net (loss) gain in trading securities		(5,000	)		(37,000	)		247,000		(9,000	)
Total net gain from investments in marketable securities	$	12,000		$	2,000		$	253,000	$	26,000

For the three months ended September 30, 2019, net realized gain from sales of marketable securities was approximately $17,000 which consisted of $19,000 of gross gains and $2,000 of gross losses. For the nine months ended September 30, 2019, net realized loss from sales of marketable securities was approximately $6,000 and consisted of approximately $66,000 of gross gains net of $60,000 of gross losses.

For the three months ended September 30, 2018, net realized gain from sales of marketable securities was approximately $39,000 of which approximately $44,000 consisted of gross gains and $5,000 of gross losses. For the nine months ended September 30, 2018, net realized gain from sales of marketable securities was approximately $35,000 and consisted of approximately $68,000 of gross gains net of $33,000 of gross losses.

Investment gains and losses on marketable securities may fluctuate significantly from period to period in the future and could have a significant impact on the Company's net earnings. However, the amount of investment gains or losses on marketable securities for any given period has no predictive value and variations in amount from period to period have no practical analytical value.

5. OTHER INVESTMENTS

As of September 30, 2019, the Company’s portfolio of other investments had an aggregate carrying value of approximately $5.9 million and we have committed to fund approximately $919,000 as required by agreements with the investees. The carrying value of these investments is equal to contributions less distributions and loss valuation adjustments, if any.

6

During the nine months ended September 30, 2019, we made cash contributions to other investments of approximately $920,000. This consisted of $700,000 in three new investments.  One in February 2019 for $200,000 in a partnership which holds residential mortgages acquired from a bank at discount, one in June 2019 for $300,000 in a partnership that is constructing residential apartments in Atlanta, GA and one in July 2019 for $200,000 in a real estate private lending fund.  We also made follow on contributions to existing investments of approximately $220,000.

During the nine months ended September 30, 2019, we received cash distributions from other investments of approximately $1,436,000.  This consisted of distributions from existing investments (primarily real estate related), including $563,000 received in September 2019 from a partnership which sold its sole asset, a multifamily residential property located in Austin, Texas.  We recognized a gain of $429,000 on this investment, before incentive fee.  In August 2019, we redeemed a stock fund for $316,000 and recognized a gain of $66,000, before incentive fee. Also, in the first quarter of 2019 the Company’s $300,000 investments in a private insurance company publicly registered all shares and began trading on the NASDAQ on March 29, 2019.  Accordingly, we have transferred this investment to marketable securities.  As of September 30, 2019, this investment had an unrealized loss of approximately $98,000.

Net income from other investments for the three and nine months ended September 30, 2019 and 2018, is approximately as follows:

	Three months ended September 30,				Nine months ended September 30,
Description	2019		2018		2019		2018
Partnerships owning real estate and related	$	409,000	$	26,000	$	536,000	$	191,000
Partnerships owning diversified businesses		61,000		29,000		97,000		70,000
Other (bank stocks)		-		-		-		34,000
Income from investment in 49% owned affiliate (T.G.I.F. Texas, Inc.)		9,000		25,000		21,000		76,000
Total net income from other investments	$	479,000	$	80,000	$	654,000	$	371,000

The following tables present approximate gross unrealized losses and fair values for those investments that were in an unrealized loss position as of September 30, 2019 and December 31, 2018, aggregated by investment category and the length of time that investments have been in a continuous loss position:

	As of September 30, 2019
	12 Months or Less					Greater than 12 Months					Total
Investment Description	Fair Value		Unrealized Loss			Fair Value		Unrealized Loss			Fair Value		Unrealized Loss
Partnerships owning investments in technology related industries	$	-	$	-		$	150,000	$	(11,000	)	$	150,000	$	(11,000	)
Partnerships owning investments in diversified businesses		513,000		(30,000	)		-		-			513,000		(30,000	)
Total	$	513,000	$	(30,000	)	$	150,000	$	(11,000	)	$	663,000	$	(41,000	)

	As of December 31, 2018
	12 Months or Less					Greater than 12 Months					Total
Investment Description	Fair Value		Unrealized Loss			Fair Value		Unrealized Loss			Fair Value		Unrealized Loss
Partnerships owning investments in technology related industries	$	-	$	-		$	132,000	$	(18,000	)	$	132,000	$	(18,000	)
Partnerships owning investments in diversified businesses		273,00		(27,000	)							273,000		(27,000	)
Total	$	273,000		(27,000	)		132,000	$	(18,000	)	$	405,000	$	(45,000	)

When evaluating the investments for other-than-temporary impairment, the Company reviews factors such as the length of time and extent to which fair value has been below cost basis, the financial condition of the issuer and any changes thereto, and the Company’s intent to sell, or whether it is more likely than not it will be required to sell, the investment before recovery of the investment’s amortized cost basis.

7

In accordance with ASC Topic 320-10-65, Recognition and Presentation of Other-Than-Temporary Impairments there were no impairment valuation adjustments for the three and nine months ended September 30, 2019 and 2018.

6. FAIR VALUE OF FINANCIAL INSTRUMENTS

In accordance with ASC Topic 820, the Company measures cash and cash equivalents and marketable debt and equity securities at fair value on a recurring basis. Other investments are measured at fair value on a nonrecurring basis.

The following are the major categories of assets and liabilities measured at fair value on a recurring basis as of September 30, 2019 and December 31, 2018, using quoted prices in active markets for identical assets (Level 1) and significant other observable inputs (Level 2).  For the periods presented, there were no major assets measured at fair value on a recurring basis where significant unobservable inputs were used (Level 3):

Assets and liabilities measured at fair value on a recurring basis are summarized below:

	Fair value measurement at reporting date using
Description	Total  September 30, 2019		Quoted Prices in Active  Markets for Identical Assets (Level 1)		Significant Other  Observable Inputs (Level 2)		Significant  Unobservable Inputs (Level 3)
Assets:
Cash equivalents:
Money market mutual funds	$	1,040,000	$	1,040,000		-	$	-
US T-Bills		14,282,000		14,282,000		-		-
Marketable securities:
Corporate debt securities		520,000		-	$	520,000		-
Marketable equity securities		2,971,000		2,971,000		-		-
Total assets	$	18,813,000	$	18,293,000	$	520,000	$	-

	Fair value measurement at reporting date using
Description	Total  December 31, 2018		Quoted Prices in Active  Markets for Identical Assets (Level 1)		Significant Other  Observable Inputs (Level 2)		Significant  Unobservable Inputs (Level 3)
Assets:
Cash equivalents:
Time deposits	$	355,000	$	-	$	355,000	$	-
Money market mutual funds		1,594,000		1,594,000		-		-
US T-Bills		17,429,000		17,429,000		-		-
Marketable securities:
Corporate debt securities		502,000		-		502,000		-
Marketable equity securities		2,574,000		2,574,000		-		-
Total assets	$	22,454,000	$	21,597,000	$	857,000	$	-

Carrying amount is the estimated fair value for corporate debt securities and time deposits based on a market-based approach using observable (Level 2) inputs such as prices of similar assets in active markets.

7. INCOME TAXES

The Company as a qualifying real estate investment trust (“REIT”) distributes its taxable ordinary income to stockholders in conformity with requirements of the Internal Revenue Code and is not required to report deferred items due to its ability to distribute all taxable income. In addition, net operating losses can be carried forward to reduce future taxable income but cannot be carried back.

The Company’s 95%-owned taxable REIT subsidiary, CII, files a separate income tax return and its operations are not included in the REIT’s income tax return.

8

Distributed capital gains on sales of real estate as they relate to REIT activities are not subject to taxes; however, undistributed capital gains may be subject to corporate tax.

On December 14, 2018 the Company declared a capital gain dividend of $0.50 per share which was payable on January 9, 2019 to all shareholders of record as of December 28, 2018.

The Company accounts for income taxes in accordance with ASC Topic 740, “Accounting for Income Taxes.” ASC Topic 740 requires a Company to use the asset and liability method of accounting for income taxes. Under this method, deferred income taxes are recognized for the tax consequences of “temporary differences” by applying enacted statutory tax rates applicable to future years to differences between the financial statement carrying amounts and the tax basis of existing assets and liabilities. The effect on deferred income taxes of a change in tax rates is recognized in income in the period that includes the enactment date. Deferred taxes only pertain to CII. As of September 30, 2019, and December 31, 2018, the Company has recorded a net deferred tax liability of $63,000 and $48,000, respectively, primarily as a result of timing differences associated with the carrying value of the investment in affiliate (TGIF) and other investments. CII’s NOL carryover to 2019 is approximately at $1 million and has been fully reserved due to CII historically having tax losses.

The provision for income taxes in the consolidated statements of comprehensive income consists approximately of the following:

Nine months ended September 30,	2019		2018
Current:
Federal	$	-	$	-
State		-		-
		-		-
Deferred:
Federal	$	13,000	$	43,000
State		2,000		10,000
		15,000		53,000
Increased valuation allowance		-		7,000
Total	$	15,000	$	60,000

The Company follows the provisions of ASC Topic 740-10, “Accounting for Uncertainty in Income Taxes” which clarifies the accounting for uncertainty in income taxes recognized in an enterprise’s financial statements in accordance with ASC Topic 740 and prescribes a recognition threshold and measurement process for financial statement recognition and measurement of a tax position taken or expected to be taken in a tax return. This topic also provides guidance on de-recognition, classification, interest and penalties, accounting in interim periods, disclosure and transition.

Based on our evaluation, we have concluded that there are no significant uncertain tax positions requiring recognition in our consolidated financial statements. Our evaluation was performed for the tax years ended December 31, 2018. The Company’s federal income tax returns since 2014 are subject to examination by the Internal Revenue Service, generally for a period of three years after the returns were filed.

We may from time to time be assessed interest or penalties by major tax jurisdictions, although any such assessments historically have been minimal and immaterial to our financial results. In the event we have received an assessment for interest and/or penalties, it has been classified in the consolidated financial statements as selling, general and administrative expense.

8. STOCK OPTIONS

Stock based compensation expense is recognized using the fair-value method for all awards. On July 25, 2019 the Company granted options to purchase 8,000 shares of the Company’s common stock to three directors and one officer.  The exercise price of the options is equal to $13.20 per share, the market price of the stock on the date of grant and the options expires on June 29, 2021.  The Company determined the fair value of its option awards using the Black-Scholes option pricing model.  The following assumptions were used to value the options granted during the nine months ended September 30, 2019: 2 year expected life; expected volatility of approximately 19.5%; risk-free of 1.93% and annual dividend yield of 4%.  The expected life for options granted during the period represents the period of time that options are to be outstanding based on the expiration date of the Plan.  Expected volatilities are based upon historical volatility of the Company’s stock over a period equal to the 2 year expected life.

9

The weighted average fair value for options granted during the nine months ended September 30, 2019 was $1.11 per share.  For the nine months ended September 30, 2019 the Company recorded approximately $9,000 in stock expense compensation relating to the options granted in 2019. 

The following table summarizes stock option activity during the nine months ended September 30, 2019:

			Weighted
			Average
	Options		Exercise
	Outstanding		Price
Outstanding at January 1, 2019		1,600	$	15.30
Exercised		-		-
Forfeited		-		-
Expired unexercised		-		-
Granted options		8,000		13.20
Outstanding at September 30, 2019		9,600	$	13.55

The following table summarizes information concerning outstanding and exercisable options as of September 30, 2019:

	Number of  securities to be issued upon  exercise of outstanding options		Weighted-average  exercise price of outstanding options		Number of securities  remaining available for future issuance under equity  compensation plans
Equity compensation plan approved by shareholders		9,600	$	13.55		36,608
Equity compensation plan not approved by shareholders		—		—		—
Total		9,600	$	13.55		36,608

As of September 30, 2019, the stock options outstanding and exercisable had no intrinsic value.

10

Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations

RESULTS OF OPERATIONS 

The Company reported net income of approximately $339,000 ($0.33 per share) and $337,000 ($0.33 per share) for the three and nine months ended September 30, 2019, respectively. The Company reported a net loss of approximately $501,000 ($0.49 per share) for the three months ended September 30, 2018, and net income of approximately $4.6 million ($4.56 per share) for the nine months ended September 30, 2018.

REVENUES 

Rentals and related revenues for the three and nine months ended September 30, 2019 were approximately $19,000 and $56,000, respectively and primarily consists of rent from the Advisor to CII for its corporate office. For the three and nine months ended September 30, 2018 rental and related revenues were $18,000 and $54,000, respectively.

Net realized and unrealized gains from investments in marketable securities: 

Net realized gain from the sale of marketable securities for the three and nine months ended September 30, 2019 was approximately $17,000 and $6,000, respectively.  Unrealized net loss from investments in marketable securities for the three months ended September 30, 2019 was approximately $5,000. Unrealized net gain from investments in marketable securities for the nine months ended September 30, 2019 was approximately $247,000. Net realized gain from investments in marketable securities for the three and nine months ended September 30, 2018 was approximately $39,000 and $35,000, respectively.  Unrealized net loss from investments in marketable securities for the three and nine months ended September 30, 2018 was approximately $37,000 and $9,000, respectively.  For further details refer to Note 4 to Condensed Consolidated Financial Statements (unaudited).

Equity gain (loss) from operations in residential real estate partnerships: 

Equity gain (loss) from operations in residential real estate partnerships for the three and nine months ended September 30, 2019 was approximately $3,000 from interest income earned from member contributions prior to construction of multi-family residential apartments in Fort Myers, FL. Equity loss from operations in residential real estate partnerships for the nine months ended September 30, 2018 was approximately$144,000 relating to the multi-family residential apartments which property was sold in February 2018 and the Company recognized a gain on the sale of approximately $5.47 million, net of incentive fee in the first quarter of 2018.

Net income from other investments: 

Net income from other investments for the three and nine months ended September 30, 2019 was approximately $479,000 and $654,000, respectively.  Net income from other investments for the three and nine months ended September 30, 2018 was approximately $80,000 and $371,000, respectively.   For further details refer to Note 5 to Condensed Consolidated Financial Statements (unaudited).

Interest, dividend and other income: 

Interest, dividend and other income for the three and nine months ended September 30, 2019 was approximately $137,000 and $375,000, respectively.  Interest, dividend and other income for the three and nine months ended September 30, 2018 was approximately $83,000 and $271,000, respectively.  The increases in the three and nine-month comparable periods was primarily due to increased interest income from investments in US T-bills.

EXPENSES 

Rental and other properties operating expenses for the three and nine months ended September 30, 2019 as compared with the same periods in 2018 decreased by $312,000 (91%) and $307,000 (80%), respectively.  The decreases were primarily the result of non-recurring estimated environmental remediation costs relating the Company’s property located in Montpelier, Vermont.

General and administrative expenses for the three and nine months ended September 30, 2019 as compared with the same periods in 2018 decreased by $51,000 (56%) and $62,000 (29%), respectively.  The decreases were primarily attributable to decreased dues and subscriptions expenses relating to Courtland Investments, Inc. and decreased non-recurring costs relating to a proposed real estate venture in Orlando which was not pursued, and the related deposits were written off in 2018.

Interest expense for the nine months ended September 30, 2019 as compared with the same period in 2018 decreased by approximately $25,000 (37%).  The decrease was primarily due to decreased interest rates.

EFFECT OF INFLATION: 

Inflation affects the costs of holding the Company's investments. Increased inflation would decrease the purchasing power of our mainly liquid investments.

11

LIQUIDITY, CAPITAL EXPENDITURE REQUIREMENTS AND CAPITAL RESOURCES

The Company's material commitments primarily consist of a note payable to the Company’s 49% owned affiliate, T.G.I.F. Texas, Inc. (“TGIF”) of approximately $1.0 million due on demand, contributions committed to other investments of approximately $919,000 due upon demand. The $9.93 million in margin is primarily related to the purchase of US T-bills at quarter end.  The T-bills were sold in October 2019 and the related margin was repaid.  The purchase of T-bills at each fiscal quarter end is for the purposes of qualifying for the REIT asset test. The funds necessary to meet these obligations are expected from the proceeds from the sales of investments, distributions from investments and available cash. 

MATERIAL COMPONENTS OF CASH FLOWS 

For the nine months ended September 30, 2019, net cash used in operating activities was approximately $537,000, primarily consisting of operating expenses less interest, dividend and other income.

For the nine months ended September 30, 2019, net cash used in investing activities was approximately $2.19 million.  This consisted primarily of contributions to investment in residential real estate partnership (Fort Myers, FL) of $3.0 million, purchases of marketable securities of $960,000, contribution to other investments of $920,000 and purchases and improvements of properties of $66,000. These uses of funds were partially offset by sources of cash consisting primarily of $1.10 million of net proceeds from sales and redemptions of marketable securities, distributions from other investments of $1.44 million and distribution from affiliate of $221,000.

For the nine months ended September 30, 2019, net cash used in financing activities was approximately $778,000, consisting of $507,000 dividends paid and $340,000 principal payment on note due to affiliate.  These uses of funds were partially offset by increased margin borrowings (net of repayments) of $69,000.

Item 3. Quantitative and Qualitative Disclosures about Market Risk

Not applicable

Item 4. Controls and Procedures

(a) Evaluation of Disclosure Controls and Procedures.

Our Chief Executive Officer and Chief Financial Officer, after evaluating the effectiveness of our disclosure controls and procedures (as defined in the Securities Exchange Act Rules 13a-15(e) and 15d-15(e)) as of the end of the period covered by this Quarterly Report on Form 10-Q have concluded that, based on such evaluation, our disclosure controls and procedures were effective and designed to ensure that material information relating to us and our consolidated subsidiaries, which we are required to disclose in the reports we file or submit under the Securities Exchange Act of 1934, was made known to them by others within those entities and reported within the time periods specified in the SEC's rules and forms.

(b) Changes in Internal Control Over Financial Reporting.

There were no changes in the Company's internal controls over financial reporting identified in connection with the evaluation of such internal control over financial reporting that occurred during our last fiscal quarter which have materially affected, or reasonably likely to materially affect, our internal control over financial reporting.

PART II.   OTHER INFORMATION

Item 1. Legal Proceedings: None

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds:

As previously reportedon December 14, 2018, HMG announced that its Board of Directors has authorized the purchase of up to $500,000 of HMG common stock on the open market or through privately negotiated transactions.  The program will be in place through December 31, 2021.  During the nine months ended September 30, 2019, there were no shares purchased as part of this publicly announced program.

Item 3. Defaults Upon Senior Securities: None.

Item 4. Mine Safety Disclosures: Not applicable.

Item 5. Other Information: None

Item 6. Exhibits:

(a)  Certifications pursuant to 18 USC Section 1350-Sarbanes-Oxley Act of 2002. Filed herewith.

12

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

	HMG/COURTLAND PROPERTIES, INC.
	/s/ Maurice Wiener
Dated:  November 13, 2019	CEO and President
Dated:  November 13, 2019	/s/Carlos Camarotti
	CFO and Vice President

13

EX-31

Exhibits:

EXHIBIT 31A: CERTIFICATION REQUIRED UNDER SECTION 302 OF THE SARBANES-OXLEY ACT OF 2002

I, Maurice Wiener, certify that:

1.  I have reviewed this quarterly report on Form 10-Q of HMG/Courtland Properties, Inc.

2.  Based on my knowledge, this quarterly report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this quarterly report;

3.  Based on my knowledge, the financial statements, and other financial information included in this quarterly report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this quarterly report;

4.  The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f) for the registrant and have:

a)  designed such disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e)), or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this quarterly report is being prepared; 

b)  designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; 

c)  evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and 

d)  disclosed this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting;

5.  The registrant’s other certifying officers and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of registrant’s board of directors (or persons performing the equivalent function):

a)  all significant deficiencies in the design or operation of internal controls which could adversely affect the registrant’s ability to record, process, summarize and report financial data and have identified for the registrant’s auditors any material weaknesses in internal controls; and 

b)  any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal controls over financial reporting.

Date:  November 13, 2019

  /s/ Maurice Wiener

Maurice Wiener, Principal Executive Officer

EX-31

Exhibits:

EXHIBIT 31B: CERTIFICATION REQUIRED UNDER SECTION 302 OF THE SARBANES-OXLEY ACT OF 2002

I, Carlos Camarotti, certify that:

1.  I have reviewed this quarterly report on Form 10-Q of HMG/Courtland Properties, Inc.

2.  Based on my knowledge, this quarterly report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this quarterly report;

3.  Based on my knowledge, the financial statements, and other financial information included in this quarterly report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this quarterly report;

4.  The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f) for the registrant and have:

a)  designed such disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e)), or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this quarterly report is being prepared; 

b)  designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; 

c)  evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and 

d)  disclosed this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting;

5.  The registrant’s other certifying officers and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of registrant’s board of directors (or persons performing the equivalent function):

a)  all significant deficiencies in the design or operation of internal controls which could adversely affect the registrant’s ability to record, process, summarize and report financial data and have identified for the registrant’s auditors any material weaknesses in internal controls; and 

b)  any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal controls over financial reporting.

Date:  November 13, 2019

  /s/ Carlos Camarotti

Carlos Camarotti, Principal Financial Officer

EX-32

EXHIBIT 32:

CERTIFICATION PURSUANT TO 18 U.S.C. SECTION 1350,

AS ADOPTED PURSUANT TO

SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

In connection with the Quarterly Report of HMG/Courtland Properties, Inc. (the "Company") on Form 10-Q for the period ending September 30, 2019 as filed with the Securities and Exchange Commission on the date hereof (the "Report"), I, Maurice Wiener, Principal Executive Officer of the Company, certify, pursuant to 18 U.S.C. § 1350, as adopted pursuant to § 906 of the Sarbanes-Oxley Act of 2002, that:

(1) The Report fully complies with the requirements of section 13 or 15(d) of the Securities Exchange Act of 1934; and

(2) The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company for the periods indicated in the Report.

/s/ Maurice Wiener

Principal Executive Officer

HMG/Courtland Properties, Inc.

CERTIFICATION PURSUANT TO 18 U.S.C. SECTION 1350,

AS ADOPTED PURSUANT TO

SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

In connection with the Quarterly Report of HMG/Courtland Properties, Inc. (the "Company") on Form 10-Q for the period ending September 30, 2019 as filed with the Securities and Exchange Commission on the date hereof (the "Report"), I, Carlos Camarotti, Principal Financial Officer of the Company, certify, pursuant to 18 U.S.C. § 1350, as adopted pursuant to § 906 of the Sarbanes-Oxley Act of 2002, that:

(1) The Report fully complies with the requirements of section 13 or 15(d) of the Securities Exchange Act of 1934; and

(2) The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company for the periods indicated in the Report.

/s/ Carlos Camarotti

Principal Financial Officer

HMG/Courtland Properties, Inc.

XML

INVESTMENTS IN MARKETABLE SECURITIES (Tables)

9 Months Ended

Sep. 30, 2019

Investments, Debt and Equity Securities [Abstract]

Gain (Loss) on Securities [Table Text Block]

Net realized and unrealized gain from investments in marketable securities for the three and nine months ended September 30, 2019 and 2018 is summarized below:

	Three months ended September 30,						Nine months ended September 30,
Description	2019			2018			2019		2018
Net realized gain from sales of securities	$	17,000		$	39,000		$	6,000	$	35,000
Unrealized net (loss) gain in trading securities		(5,000	)		(37,000	)		247,000		(9,000	)
Total net gain from investments in marketable securities	$	12,000		$	2,000		$	253,000	$	26,000

XML

FAIR VALUE OF FINANCIAL INSTRUMENTS

9 Months Ended

Sep. 30, 2019

Fair Value Disclosures [Abstract]

Fair Value Disclosures [Text Block]

6. FAIR VALUE OF FINANCIAL INSTRUMENTS

In accordance with ASC Topic 820, the Company measures cash and cash equivalents and marketable debt and equity securities at fair value on a recurring basis. Other investments are measured at fair value on a nonrecurring basis.

The following are the major categories of assets and liabilities measured at fair value on a recurring basis as of September 30, 2019 and December 31, 2018, using quoted prices in active markets for identical assets (Level 1) and significant other observable inputs (Level 2).  For the periods presented, there were no major assets measured at fair value on a recurring basis where significant unobservable inputs were used (Level 3):

Assets and liabilities measured at fair value on a recurring basis are summarized below:

	Fair value measurement at reporting date using
Description	Total  September 30, 2019		Quoted Prices in Active  Markets for Identical Assets (Level 1)		Significant Other  Observable Inputs (Level 2)		Significant  Unobservable Inputs (Level 3)
Assets:
Cash equivalents:
Money market mutual funds	$	1,040,000	$	1,040,000		-	$	-
US T-Bills		14,282,000		14,282,000		-		-
Marketable securities:
Corporate debt securities		520,000		-	$	520,000		-
Marketable equity securities		2,971,000		2,971,000		-		-
Total assets	$	18,813,000	$	18,293,000	$	520,000	$	-

	Fair value measurement at reporting date using
Description	Total  December 31, 2018		Quoted Prices in Active  Markets for Identical Assets (Level 1)		Significant Other  Observable Inputs (Level 2)		Significant  Unobservable Inputs (Level 3)
Assets:
Cash equivalents:
Time deposits	$	355,000	$	-	$	355,000	$	-
Money market mutual funds		1,594,000		1,594,000		-		-
US T-Bills		17,429,000		17,429,000		-		-
Marketable securities:
Corporate debt securities		502,000		-		502,000		-
Marketable equity securities		2,574,000		2,574,000		-		-
Total assets	$	22,454,000	$	21,597,000	$	857,000	$	-

Carrying amount is the estimated fair value for corporate debt securities and time deposits based on a market-based approach using observable (Level 2) inputs such as prices of similar assets in active markets.

XML

INCOME TAXES (Details Textual) - USD ($)	1 Months Ended
	Dec. 14, 2018	Sep. 30, 2019	Dec. 31, 2018
Income Tax Disclosure [Line Items]
Deferred Income Tax Liabilities, Net		$ 63,000	$ 48,000
Common Stock, Dividends, Per Share, Cash Paid	$ 0.50
Cii [Member]
Income Tax Disclosure [Line Items]
Noncontrolling Interest, Ownership Percentage by Parent		95.00%
Cii [Member] | Change in Accounting Method Accounted for as Change in Estimate [Member]
Income Tax Disclosure [Line Items]
Operating Loss Carryforwards		$ 1,000,000

XML

CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

9 Months Ended

Sep. 30, 2019

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Condensed Financial Statements [Text Block]

1. CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

In the opinion of the Company, the accompanying unaudited condensed consolidated financial statements prepared in accordance with instructions for Form 10-Q, include all adjustments (consisting only of normal recurring accruals) which are necessary for a fair presentation of the results for the periods presented.  Certain information and footnote disclosures normally included in the consolidated financial statements prepared in accordance with accounting principles generally accepted in the United States of America have been condensed or omitted.  It is suggested that these condensed consolidated financial statements be read in conjunction with the Company's Annual Report for the year ended December 31, 2018.  The balance sheet as of December 31, 2018 was derived from audited consolidated financial statements as of that date. The results of operations for the three and nine months ended September 30, 2019 are not necessarily indicative of the results to be expected for future periods or the full year.

The condensed consolidated financial statements include the accounts of HMG/Courtland Properties, Inc. (the "Company") and entities in which the Company owns a majority voting interest or controlling financial interest. All material transactions and balances with consolidated and unconsolidated entities have been eliminated in consolidation or as required under the equity method.

XML

CONDENSED CONSOLIDATED STATEMENTS OF INCOME - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2019	Sep. 30, 2018
REVENUES
Real estate rentals and related revenue	$ 18,786	$ 18,092	$ 56,358	$ 54,275
Operating expenses:
Rental and other properties	31,223	343,196	76,236	382,916
Adviser's base fee	165,000	165,000	495,000	495,000
General and administrative	41,048	92,540	150,550	212,682
Professional fees and expenses	22,637	13,527	144,662	134,819
Directors' fees and expenses	21,583	17,452	59,744	57,817
Depreciation and amortization	3,849	3,849	11,548	11,548
Interest expense	13,447	19,032	42,748	68,262
Total expenses	298,787	654,596	980,488	1,363,044
Loss before other income, income taxes and gain on sale of real estate	(280,001)	(636,504)	(924,130)	(1,308,769)
Net realized and unrealized gains from investments in marketable securities	12,190	1,829	252,747	26,291
Equity gain (loss) from operations of residential real estate partnerships	3,225	0	3,225	(143,890)
Net income from other investments	479,258	80,208	654,239	370,616
Interest, dividend and other income	136,909	82,756	375,336	271,298
Total other income	631,582	164,793	1,285,547	524,315
Income (loss) before taxes and gain on sale of real estate	351,581	(471,711)	361,417	(784,454)
Provision for income taxes	(12,010)	(26,532)	(14,954)	(60,111)
Net income (loss) before gain on sale of real estate	339,571	(498,243)	346,463	(844,565)
Gain on sale of real estate, net	0	0	0	5,473,887
Net income (loss)	339,571	(498,243)	346,463	4,629,322
Gain attributable to non-controlling interest	(850)	(3,097)	(9,308)	(14,010)
Net income (loss) attributable to the company	$ 338,721	$ (501,340)	$ 337,155	$ 4,615,312
Weighted average common shares outstanding-basic and diluted	1,013,292	1,013,292	1,013,292	1,011,349
Net income (loss) per common share:
Basic and diluted net income (loss) per share	$ 0.33	$ (0.49)	$ 0.33	$ 4.56

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OTHER INVESTMENTS (Details) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2019	Sep. 30, 2018
Investments, All Other Investments [Abstract]
Partnerships owning real estate and related	$ 409,000	$ 26,000	$ 536,000	$ 191,000
Partnerships owning diversified businesses	61,000	29,000	97,000	70,000
Other (bank stocks)	0	0	0	34,000
Income from investment in 49% owned affiliate (T.G.I.F. Texas, Inc.)	9,000	25,000	21,000	76,000
Total net income from other investments	$ 479,000	$ 80,000	$ 654,000	$ 371,000

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STOCK OPTIONS (Tables)

9 Months Ended

Sep. 30, 2019

Disclosure of Compensation Related Costs, Share-based Payments [Abstract]

Share-based Compensation, Stock Options, Activity [Table Text Block]

The following table summarizes stock option activity during the nine months ended September 30, 2019:

			Weighted
			Average
	Options		Exercise
	Outstanding		Price
Outstanding at January 1, 2019		1,600	$	15.30
Exercised		-		-
Forfeited		-		-
Expired unexercised		-		-
Granted options		8,000		13.20
Outstanding at September 30, 2019		9,600	$	13.55

Schedule of Share-based Compensation, Shares Authorized under Stock Option Plans, by Exercise Price Range [Table Text Block]

The following table summarizes information concerning outstanding and exercisable options as of September 30, 2019:

	Number of  securities to be issued upon  exercise of outstanding options		Weighted-average  exercise price of outstanding options		Number of securities  remaining available for future issuance under equity  compensation plans
Equity compensation plan approved by shareholders		9,600	$	13.55		36,608
Equity compensation plan not approved by shareholders		—		—		—
Total		9,600	$	13.55		36,608

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INCOME TAXES (Details) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2019	Sep. 30, 2018
Current:
Federal			$ 0	$ 0
State			0	0
Total			0	0
Deferred:
Federal			13,000	43,000
State			2,000	10,000
Total			15,000	53,000
Increased valuation allowance			0	7,000
Total	$ 12,010	$ 26,532	$ 14,954	$ 60,111

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FAIR VALUE OF FINANCIAL INSTRUMENTS (Details) - USD ($)	Sep. 30, 2019	Dec. 31, 2018
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Cash and Cash Equivalents, Fair Value Disclosure	$ 18,813,000	$ 22,454,000
Fair Value, Inputs, Level 1 [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Cash and Cash Equivalents, Fair Value Disclosure	18,293,000	21,597,000
Fair Value, Inputs, Level 2 [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Cash and Cash Equivalents, Fair Value Disclosure	520,000	857,000
Fair Value, Inputs, Level 3 [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Cash and Cash Equivalents, Fair Value Disclosure	0	0
Time Deposits [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Cash and Cash Equivalents, Fair Value Disclosure		355,000
Time Deposits [Member] | Fair Value, Inputs, Level 1 [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Cash and Cash Equivalents, Fair Value Disclosure		0
Time Deposits [Member] | Fair Value, Inputs, Level 2 [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Cash and Cash Equivalents, Fair Value Disclosure		355,000
Time Deposits [Member] | Fair Value, Inputs, Level 3 [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Cash and Cash Equivalents, Fair Value Disclosure		0
Money Market Mutual Funds [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Cash and Cash Equivalents, Fair Value Disclosure	1,040,000	1,594,000
Money Market Mutual Funds [Member] | Fair Value, Inputs, Level 1 [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Cash and Cash Equivalents, Fair Value Disclosure	1,040,000	1,594,000
Money Market Mutual Funds [Member] | Fair Value, Inputs, Level 2 [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Cash and Cash Equivalents, Fair Value Disclosure	0	0
Money Market Mutual Funds [Member] | Fair Value, Inputs, Level 3 [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Cash and Cash Equivalents, Fair Value Disclosure	0	0
U S T bills [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Cash and Cash Equivalents, Fair Value Disclosure	14,282,000	17,429,000
U S T bills [Member] | Fair Value, Inputs, Level 1 [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Cash and Cash Equivalents, Fair Value Disclosure	14,282,000	17,429,000
U S T bills [Member] | Fair Value, Inputs, Level 2 [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Cash and Cash Equivalents, Fair Value Disclosure	0	0
U S T bills [Member] | Fair Value, Inputs, Level 3 [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Cash and Cash Equivalents, Fair Value Disclosure	0	0
Corporate Debt Securities [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Cash and Cash Equivalents, Fair Value Disclosure	520,000	502,000
Corporate Debt Securities [Member] | Fair Value, Inputs, Level 1 [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Cash and Cash Equivalents, Fair Value Disclosure	0	0
Corporate Debt Securities [Member] | Fair Value, Inputs, Level 2 [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Cash and Cash Equivalents, Fair Value Disclosure	520,000	502,000
Corporate Debt Securities [Member] | Fair Value, Inputs, Level 3 [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Cash and Cash Equivalents, Fair Value Disclosure	0	0
Marketable Equity Securities [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Cash and Cash Equivalents, Fair Value Disclosure	2,971,000	2,574,000
Marketable Equity Securities [Member] | Fair Value, Inputs, Level 1 [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Cash and Cash Equivalents, Fair Value Disclosure	2,971,000	2,574,000
Marketable Equity Securities [Member] | Fair Value, Inputs, Level 2 [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Cash and Cash Equivalents, Fair Value Disclosure	0	0
Marketable Equity Securities [Member] | Fair Value, Inputs, Level 3 [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Cash and Cash Equivalents, Fair Value Disclosure	$ 0	$ 0

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INVESTMENTS IN MARKETABLE SECURITIES (Details Textual) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2019	Sep. 30, 2018	Mar. 31, 2019	Dec. 31, 2018
Marketable Securities [Line Items]
Marketable Securities Gain	$ 19,000	$ 44,000	$ 66,000	$ 68,000
Marketable Securities Loss	2,000	5,000	60,000	33,000
Marketable Securities	3,491,531		3,491,531		$ 300,000	$ 3,075,718
Net realized gain (loss) from sales of securities	17,000	$ 39,000	6,000	$ 35,000
Real Estate Investment Trusts [Member]
Marketable Securities [Line Items]
Marketable Securities	$ 1,900,000		$ 1,900,000			$ 1,760,000

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INCOME TAXES (Tables)

9 Months Ended

Sep. 30, 2019

Income Tax Disclosure [Abstract]

Schedule of Components of Income Tax Expense (Benefit) [Table Text Block]

The provision for income taxes in the consolidated statements of comprehensive income consists approximately of the following:

Nine months ended September 30,	2019		2018
Current:
Federal	$	-	$	-
State		-		-
		-		-
Deferred:
Federal	$	13,000	$	43,000
State		2,000		10,000
		15,000		53,000
Increased valuation allowance		-		7,000
Total	$	15,000	$	60,000

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RECENT ACCOUNTING PRONOUNCEMENTS (Policies)

9 Months Ended

Sep. 30, 2019

Accounting Policies [Abstract]

New Accounting Pronouncements, Policy [Policy Text Block]

In June 2018, the FASB issued ASU 2018-07, “Compensation – Stock Compensation (Topic 718).” ASU 2018-07 simplifies the accounting for nonemployee stock-based payment transactions. This ASU is effective for public entities for interim and annual reporting periods beginning after December 15, 2018, and early application is permitted. The adoption of this guidance on January 1, 2019 did not have an impact on the Company’s consolidated financial statements.

In February 2016, the FASB issued ASU 2016-02, “Leases,” which created a new Topic, ASC Topic 842 and established the core principle that a lessee should recognize the assets, representing rights-of-use, and liabilities to make lease payments that arise from leases. For leases with a term of 12 months or less, a lessee is permitted to make an election under which such assets and liabilities would not be recognized, and lease expense would be recognized generally on a straight-line basis over the lease term. This ASU is effective for public entities for interim and annual reporting periods beginning after December 15, 2018, and early application is permitted. The adoption of this guidance on January 1, 2019 did not have an impact on the Company’s consolidated financial statements.

The Company does not believe that any recently issued, but not yet effective accounting standards, if currently adopted, will have a material effect on the Company’s consolidated financial position, results of operations and cash flows.

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OTHER INVESTMENTS

9 Months Ended

Sep. 30, 2019

Investments, All Other Investments [Abstract]

Investments and Other Noncurrent Assets [Text Block]

5. OTHER INVESTMENTS

As of September 30, 2019, the Company’s portfolio of other investments had an aggregate carrying value of approximately $5.9 million and we have committed to fund approximately $919,000 as required by agreements with the investees. The carrying value of these investments is equal to contributions less distributions and loss valuation adjustments, if any.

During the nine months ended September 30, 2019, we made cash contributions to other investments of approximately $920,000. This consisted of $700,000 in three new investments.  One in February 2019 for $200,000 in a partnership which holds residential mortgages acquired from a bank at discount, one in June 2019 for $300,000 in a partnership that is constructing residential apartments in Atlanta, GA and one in July 2019 for $200,000 in a real estate private lending fund.  We also made follow on contributions to existing investments of approximately $220,000.

During the nine months ended September 30, 2019, we received cash distributions from other investments of approximately $1,436,000.  This consisted of distributions from existing investments (primarily real estate related), including $563,000 received in September 2019 from a partnership which sold its sole asset, a multifamily residential property located in Austin, Texas.  We recognized a gain of $429,000 on this investment, before incentive fee.  In August 2019, we redeemed a stock fund for $316,000 and recognized a gain of $66,000, before incentive fee. Also, in the first quarter of 2019 the Company’s $300,000 investments in a private insurance company publicly registered all shares and began trading on the NASDAQ on March 29, 2019.  Accordingly, we have transferred this investment to marketable securities.  As of September 30, 2019, this investment had an unrealized loss of approximately $98,000.

Net income from other investments for the three and nine months ended September 30, 2019 and 2018, is approximately as follows:

	Three months ended September 30,				Nine months ended September 30,
Description	2019		2018		2019		2018
Partnerships owning real estate and related	$	409,000	$	26,000	$	536,000	$	191,000
Partnerships owning diversified businesses		61,000		29,000		97,000		70,000
Other (bank stocks)		-		-		-		34,000
Income from investment in 49% owned affiliate (T.G.I.F. Texas, Inc.)		9,000		25,000		21,000		76,000
Total net income from other investments	$	479,000	$	80,000	$	654,000	$	371,000

The following tables present approximate gross unrealized losses and fair values for those investments that were in an unrealized loss position as of September 30, 2019 and December 31, 2018, aggregated by investment category and the length of time that investments have been in a continuous loss position:

	As of September 30, 2019
	12 Months or Less					Greater than 12 Months					Total
Investment Description	Fair Value		Unrealized Loss			Fair Value		Unrealized Loss			Fair Value		Unrealized Loss
Partnerships owning investments in technology related industries	$	-	$	-		$	150,000	$	(11,000	)	$	150,000	$	(11,000	)
Partnerships owning investments in diversified businesses		513,000		(30,000	)		-		-			513,000		(30,000	)
Total	$	513,000	$	(30,000	)	$	150,000	$	(11,000	)	$	663,000	$	(41,000	)

	As of December 31, 2018
	12 Months or Less					Greater than 12 Months					Total
Investment Description	Fair Value		Unrealized Loss			Fair Value		Unrealized Loss			Fair Value		Unrealized Loss
Partnerships owning investments in technology related industries	$	-	$	-		$	132,000	$	(18,000	)	$	132,000	$	(18,000	)
Partnerships owning investments in diversified businesses		273,00		(27,000	)							273,000		(27,000	)
Total	$	273,000		(27,000	)		132,000	$	(18,000	)	$	405,000	$	(45,000	)

When evaluating the investments for other-than-temporary impairment, the Company reviews factors such as the length of time and extent to which fair value has been below cost basis, the financial condition of the issuer and any changes thereto, and the Company’s intent to sell, or whether it is more likely than not it will be required to sell, the investment before recovery of the investment’s amortized cost basis.

In accordance with ASC Topic 320-10-65, Recognition and Presentation of Other-Than-Temporary Impairments there were no impairment valuation adjustments for the three and nine months ended September 30, 2019 and 2018.

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STOCK OPTIONS (Details)	9 Months Ended
	Sep. 30, 2019 $ / shares shares
Options Outstanding
Outstanding at Beginning | shares	1,600
Exercised | shares	0
Forfeited | shares	0
Expired unexercised | shares	0
Granted options | shares	8,000
Outstanding at the end of the period | shares	9,600
Weighted Average Exercise Price
Outstanding at Beginning | $ / shares	$ 15.30
Exercised | $ / shares	0
Forfeited | $ / shares	0
Expired unexercised | $ / shares	0
Granted options | $ / shares	13.20
Outstanding at Ending | $ / shares	$ 13.55

XML

Cover Page - shares	9 Months Ended
	Sep. 30, 2019	Nov. 13, 2019
Cover [Abstract]
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Sep. 30, 2019
Document Fiscal Year Focus	2019
Document Fiscal Period Focus	Q3
Trading Symbol	HMG
Entity Registrant Name	HMG COURTLAND PROPERTIES INC
Entity Central Index Key	0000311817
Current Fiscal Year End Date	--12-31
Entity Current Reporting Status	Yes
Entity Filer Category	Non-accelerated Filer
Entity Common Stock, Shares Outstanding		1,013,292
Entity Interactive Data Current	Yes
Entity Shell Company	false
Entity Small Business	true
Entity Emerging Growth Company	false
Title of 12(b) Security	Common Stock
Security Exchange Name	NYSE
Entity Address, State or Province	FL

XML

CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY - USD ($)	Total	Common Stock [Member]	Additional Paid-in Capital [Member]	Undistributed Gains from Sales of Properties Net of Losses [Member]	Undistributed Losses from Operations [Member]	Treasury Stock [Member]
Balance at Dec. 31, 2017	$ 19,859,966	$ 1,035,493	$ 24,076,991	$ 52,208,753	$ (57,120,990)	$ (340,281)
Balance (in shares) at Dec. 31, 2017		1,035,493				33,101
Net income (loss)	5,190,893	$ 0	0	5,473,887	(282,994)	$ 0
Stock options exercised, net of 1,600 re-load shares	91,895	$ 10,900	80,995	0	0	0
Stock options exercised, net of 1,600 re-load shares (in shares)		10,900
Dividend paid -$2.50 per share	(2,533,230)	$ 0	0	(2,533,230)	0	0
Balance at Mar. 31, 2018	22,609,524	$ 1,046,393	24,157,986	55,149,410	(57,403,984)	$ (340,281)
Balance (in shares) at Mar. 31, 2018		1,046,393				33,101
Balance at Dec. 31, 2017	19,859,966	$ 1,035,493	24,076,991	52,208,753	(57,120,990)	$ (340,281)
Balance (in shares) at Dec. 31, 2017		1,035,493				33,101
Net income (loss)	4,615,312
Retired 33,101 treasury shares	0
Balance at Sep. 30, 2018	22,033,944	$ 1,046,393	24,157,986	55,149,410	(57,979,564)	$ (340,281)
Balance (in shares) at Sep. 30, 2018		1,046,393				33,101
Balance at Mar. 31, 2018	22,609,524	$ 1,046,393	24,157,986	55,149,410	(57,403,984)	$ (340,281)
Balance (in shares) at Mar. 31, 2018		1,046,393				33,101
Net income (loss)	(74,240)	$ 0	0	0	(74,240)	$ 0
Balance at Jun. 30, 2018	22,535,284	$ 1,046,393	24,157,986	55,149,410	(57,478,224)	$ (340,281)
Balance (in shares) at Jun. 30, 2018		1,046,393				33,101
Net income (loss)	(501,340)	$ 0	0	0	(501,340)	$ 0
Balance at Sep. 30, 2018	22,033,944	$ 1,046,393	24,157,986	55,149,410	(57,979,564)	$ (340,281)
Balance (in shares) at Sep. 30, 2018		1,046,393				33,101
Balance at Dec. 31, 2018	21,033,055	$ 1,046,393	24,157,986	54,642,764	(58,473,807)	$ (340,281)
Balance (in shares) at Dec. 31, 2018		1,046,393				33,101
Net income (loss)	(11,116)	$ 0	0	0	(11,116)	$ 0
Balance at Mar. 31, 2019	21,021,939	$ 1,046,393	24,157,986	54,642,764	(58,484,923)	$ (340,281)
Balance (in shares) at Mar. 31, 2019		1,046,393				33,101
Balance at Dec. 31, 2018	21,033,055	$ 1,046,393	24,157,986	54,642,764	(58,473,807)	$ (340,281)
Balance (in shares) at Dec. 31, 2018		1,046,393				33,101
Net income (loss)	$ 337,155
Stock options exercised, net of 1,600 re-load shares (in shares)	0
Retired 33,101 treasury shares	$ 340,281
Balance at Sep. 30, 2019	21,379,090	$ 1,013,292	23,859,686	54,642,764	(58,136,652)	$ 0
Balance (in shares) at Sep. 30, 2019		1,013,292
Balance at Mar. 31, 2019	21,021,939	$ 1,046,393	24,157,986	54,642,764	(58,484,923)	$ (340,281)
Balance (in shares) at Mar. 31, 2019		1,046,393				33,101
Net income (loss)	9,550	$ 0	0	0	9,550	$ 0
Retired 33,101 treasury shares	$ 0	$ (33,101)	(307,180)	0	0	$ 340,281
Retired 33,101 treasury shares (in shares)	33,101	(33,101)				(33,101)
Balance at Jun. 30, 2019	$ 21,031,489	$ 1,013,292	23,850,806	54,642,764	(58,475,373)	$ 0
Balance (in shares) at Jun. 30, 2019		1,013,292				0
Net income (loss)	338,721	$ 0	0	0	338,721	$ 0
Stock compensation expense	8,880		8,880
Balance at Sep. 30, 2019	$ 21,379,090	$ 1,013,292	$ 23,859,686	$ 54,642,764	$ (58,136,652)	$ 0
Balance (in shares) at Sep. 30, 2019		1,013,292

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RECENT ACCOUNTING PRONOUNCEMENTS

9 Months Ended

Sep. 30, 2019

New Accounting Pronouncements and Changes in Accounting Principles [Abstract]

New Accounting Pronouncements and Changes in Accounting Principles [Text Block]

2. RECENT ACCOUNTING PRONOUNCEMENTS

In June 2018, the FASB issued ASU 2018-07, “Compensation – Stock Compensation (Topic 718).” ASU 2018-07 simplifies the accounting for nonemployee stock-based payment transactions. This ASU is effective for public entities for interim and annual reporting periods beginning after December 15, 2018, and early application is permitted. The adoption of this guidance on January 1, 2019 did not have an impact on the Company’s consolidated financial statements.

In February 2016, the FASB issued ASU 2016-02, “Leases,” which created a new Topic, ASC Topic 842 and established the core principle that a lessee should recognize the assets, representing rights-of-use, and liabilities to make lease payments that arise from leases. For leases with a term of 12 months or less, a lessee is permitted to make an election under which such assets and liabilities would not be recognized, and lease expense would be recognized generally on a straight-line basis over the lease term. This ASU is effective for public entities for interim and annual reporting periods beginning after December 15, 2018, and early application is permitted. The adoption of this guidance on January 1, 2019 did not have an impact on the Company’s consolidated financial statements.

The Company does not believe that any recently issued, but not yet effective accounting standards, if currently adopted, will have a material effect on the Company’s consolidated financial position, results of operations and cash flows.

XML

OTHER INVESTMENTS (Details 1) - USD ($)	Sep. 30, 2019	Dec. 31, 2018
Fair Value
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than Twelve Months, Fair Value	$ 513,000	$ 273,000
Available-for-sale Securities, Continuous Unrealized Loss Position, Twelve Months or Longer, Fair Value	150,000	132,000
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value, Total	663,000	405,000
Unrealized
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than 12 Months, Aggregate Loss	(30,000)	(27,000)
Available-for-sale Securities, Continuous Unrealized Loss Position, 12 Months or Longer, Aggregate Loss	(11,000)	(18,000)
Available-for-sale Securities, Continuous Unrealized Loss Position, Aggregate Loss	(41,000)	(45,000)
Partnerships Owning Investments In Technology Related Industries [Member]
Fair Value
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than Twelve Months, Fair Value	0	0
Available-for-sale Securities, Continuous Unrealized Loss Position, Twelve Months or Longer, Fair Value	150,000	132,000
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value, Total	150,000	132,000
Unrealized
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than 12 Months, Aggregate Loss	0	0
Available-for-sale Securities, Continuous Unrealized Loss Position, 12 Months or Longer, Aggregate Loss	(11,000)	(18,000)
Available-for-sale Securities, Continuous Unrealized Loss Position, Aggregate Loss	(11,000)	(18,000)
Partnerships owning investments in diversified businesses [Member]
Fair Value
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than Twelve Months, Fair Value	513,000	27,300
Available-for-sale Securities, Continuous Unrealized Loss Position, Twelve Months or Longer, Fair Value	0
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value, Total	513,000	273,000
Unrealized
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than 12 Months, Aggregate Loss	(30,000)	(27,000)
Available-for-sale Securities, Continuous Unrealized Loss Position, 12 Months or Longer, Aggregate Loss	0
Available-for-sale Securities, Continuous Unrealized Loss Position, Aggregate Loss	$ (30,000)	$ (27,000)

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INVESTMENT IN RESIDENTIAL REAL ESTATE PARTNERSHIP (FORT MYERS, FL) (Details Textual)	1 Months Ended
	Oct. 08, 2019 USD ($)	Jul. 19, 2019 USD ($) a ft² units
Number of Units in Real Estate Property | units		318
PNC Bank National Association [Member]
Equity Method Investment, Underlying Equity in Net Assets		$ 14,490,000
Debt Instrument, Face Amount		41,590,000
Murano At Three Oaks Associates LLC [Member]
Equity Method Investment, Underlying Equity in Net Assets		$ 3,620,000
Equity Method Investment, Ownership Percentage		25.00%
Fort Myers Florida [Member]
Guarantor Obligations Financial Compliance Covenants		Each Guarantor is required to maintain compliance with the following financial covenants, as defined: (1) liquidity shall not be less than $2.5 million. Liquidity is defined as the sum of unencumbered, unrestricted cash and cash equivalents and marketable securities, and (2) net worth shall not be less than $10 million.
Development Costs, Period Cost		$ 56,080,000
Area Of Land Available For Renting | ft²		312,000
Area of Land | a		17.5
Fort Myers Florida [Member] | Construction Contracts [Member]
Guarantor Obligations, Term		HMG and the other members (or affiliates thereof) of the Borrower ("Guarantors") entered into a Completion Guaranty ("Completion Guaranty") and a Guaranty and Suretyship Agreement ("Repayment Guaranty") (collectively, the “Guaranties”). Under the Completion Guaranty, each Guarantor shall unconditionally guaranty, as a primary obligor, and become surety for the prompt payment and performance by Borrower of the “Guaranteed Obligations” (as defined). Under the Repayment Guaranty, Guarantor unconditionally guarantees, as a primary obligor, and becomes surety for the prompt payment and performance of, as defined (i) all Interest Obligations, (ii) all Loan Document Obligations, (iii) all Expense Obligations, (iv) the Carrying Cost Obligations, (v) the Principal Amount, (vi) interest on each of the foregoing including, if applicable, interest at the Default Rate (as defined). At all times prior to the First Reduction Date (as defined below), the Guarantors are collectively responsible for 30% of the Principal Obligations, (ii) at all times after the First Reduction Date, the Guarantors are collectively responsible for15% of the Principal Obligations, and (iii) at all times after the Second Reduction Date, 0% of the Principal Obligations. First Reduction Conditions" means satisfaction of the following conditions: (i) no Event of Default has occurred and is continuing; (ii) Completion of Construction has occurred; and (iii) the Project has achieved a DSCR of not less than 1.25 to 1.00 for two (2) consecutive fiscal quarters.
Subsequent Event [Member]
Payments To Acquire Residential Real Estate	$ 423,000

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STOCK OPTIONS (Details Textual)	9 Months Ended
	Sep. 30, 2019 USD ($) $ / shares shares
Share-based Compensation Arrangements by Share-based Payment Award, Options, Grants in Period, Weighted Average Exercise Price	$ 13.20
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross | shares	8,000
Share-based Compensation Arrangement by Share-based Payment Award, Expiration Date	Jun. 29, 2021
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Expected Term	2 years
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Expected Volatility Rate	19.50%
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Risk Free Interest Rate	1.93%
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Expected Dividend Rate	4.00%
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Weighted Average Grant Date Fair Value	$ 1.11
Allocated Share-based Compensation Expense | $	$ 9,000

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INCOME TAXES

9 Months Ended

Sep. 30, 2019

Income Tax Disclosure [Abstract]

Income Tax Disclosure [Text Block]

7. INCOME TAXES

The Company as a qualifying real estate investment trust (“REIT”) distributes its taxable ordinary income to stockholders in conformity with requirements of the Internal Revenue Code and is not required to report deferred items due to its ability to distribute all taxable income. In addition, net operating losses can be carried forward to reduce future taxable income but cannot be carried back.

The Company’s 95%-owned taxable REIT subsidiary, CII, files a separate income tax return and its operations are not included in the REIT’s income tax return.

Distributed capital gains on sales of real estate as they relate to REIT activities are not subject to taxes; however, undistributed capital gains may be subject to corporate tax.

On December 14, 2018 the Company declared a capital gain dividend of $0.50 per share which was payable on January 9, 2019 to all shareholders of record as of December 28, 2018.

The Company accounts for income taxes in accordance with ASC Topic 740, “Accounting for Income Taxes.” ASC Topic 740 requires a Company to use the asset and liability method of accounting for income taxes. Under this method, deferred income taxes are recognized for the tax consequences of “temporary differences” by applying enacted statutory tax rates applicable to future years to differences between the financial statement carrying amounts and the tax basis of existing assets and liabilities. The effect on deferred income taxes of a change in tax rates is recognized in income in the period that includes the enactment date. Deferred taxes only pertain to CII. As of September 30, 2019, and December 31, 2018, the Company has recorded a net deferred tax liability of $63,000 and $48,000, respectively, primarily as a result of timing differences associated with the carrying value of the investment in affiliate (TGIF) and other investments. CII’s NOL carryover to 2019 is approximately at $1 million and has been fully reserved due to CII historically having tax losses.

The provision for income taxes in the consolidated statements of comprehensive income consists approximately of the following:

Nine months ended September 30,	2019		2018
Current:
Federal	$	-	$	-
State		-		-
		-		-
Deferred:
Federal	$	13,000	$	43,000
State		2,000		10,000
		15,000		53,000
Increased valuation allowance		-		7,000
Total	$	15,000	$	60,000

The Company follows the provisions of ASC Topic 740-10, “Accounting for Uncertainty in Income Taxes” which clarifies the accounting for uncertainty in income taxes recognized in an enterprise’s financial statements in accordance with ASC Topic 740 and prescribes a recognition threshold and measurement process for financial statement recognition and measurement of a tax position taken or expected to be taken in a tax return. This topic also provides guidance on de-recognition, classification, interest and penalties, accounting in interim periods, disclosure and transition.

Based on our evaluation, we have concluded that there are no significant uncertain tax positions requiring recognition in our consolidated financial statements. Our evaluation was performed for the tax years ended December 31, 2018. The Company’s federal income tax returns since 2014 are subject to examination by the Internal Revenue Service, generally for a period of three years after the returns were filed.

We may from time to time be assessed interest or penalties by major tax jurisdictions, although any such assessments historically have been minimal and immaterial to our financial results. In the event we have received an assessment for interest and/or penalties, it has been classified in the consolidated financial statements as selling, general and administrative expense.

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INVESTMENT IN RESIDENTIAL REAL ESTATE PARTNERSHIP (FORT MYERS, FL)

9 Months Ended

Sep. 30, 2019

Investment In Real Estate Partnership [Abstract]

Investment In Real Estate Partnership [Text Block]

3. INVESTMENT IN RESIDENTIAL REAL ESTATE PARTNERSHIP (FORT MYERS, FL)

As previously reported on Form 8-K dated July 19, 2019, pursuant to the terms of a Construction and Mini Perm Loan Agreement ("Loan Agreement"), between Murano At Three Oaks Associates LLC, a Florida limited liability company formed in September 2018 (the “Borrower”) which is 25% owned by HMG, and PNC Bank, National Association ("Lender"), Lender provided a construction loan to the Borrower for the principal sum of approximately $41.59 million (“Loan”). The proceeds of the Loan shall be used to finance the construction of multi-family residential apartments containing 318 units totaling approximately 312,000 net rentable square feet on a 17.5-acre site located in Fort Myers, Florida ("Project").  The Project site was purchased by the Borrower concurrently with the closing of the Loan. Total development costs for the Project are estimated at approximately $56.08 million and the Borrower’s equity totals approximately $14.49 million. HMG’s share of the equity is 25%, or approximately $3.62 million, all of which has been funded to date including approximately $423,000 funded on October 8, 2019. Construction activities on the Project site began in August 2019. There is no outstanding amount on the loan as of September 30, 2019. 

HMG and the other members (or affiliates thereof) of the Borrower ("Guarantors") entered into a Completion Guaranty ("Completion Guaranty") and a Guaranty and Suretyship Agreement ("Repayment Guaranty") (collectively, the “Guaranties”). Under the Completion Guaranty, each Guarantor shall unconditionally guaranty, as a primary obligor, and become surety for the prompt payment and performance by Borrower of the “Guaranteed Obligations” (as defined). Under the Repayment Guaranty, Guarantor unconditionally guarantees, as a primary obligor, and becomes surety for the prompt payment and performance of, as defined (i) all Interest Obligations, (ii) all Loan Document Obligations, (iii) all Expense Obligations, (iv) the Carrying Cost Obligations, (v) the Principal Amount, (vi) interest on each of the foregoing including, if applicable, interest at the Default Rate (as defined). At all times prior to the First Reduction Date (as defined below), the Guarantors are collectively responsible for 30% of the Principal Obligations, (ii) at all times after the First Reduction Date, the Guarantors are collectively responsible for15% of the Principal Obligations, and (iii) at all times after the Second Reduction Date, 0% of the Principal Obligations. First Reduction Conditions" means satisfaction of the following conditions: (i) no Event of Default has occurred and is continuing; (ii) Completion of Construction has occurred; and (iii) the Project has achieved a DSCR of not less than 1.25 to 1.00 for two (2) consecutive fiscal quarters.

Each Guarantor is required to maintain compliance with the following financial covenants, as defined: (1) liquidity shall not be less than $2.5 million. Liquidity is defined as the sum of unencumbered, unrestricted cash and cash equivalents and marketable securities, and (2) net worth shall not be less than $10 million.  As of September 30, 2019, HMG was in compliance with all covenants required by Guarantors in the Loan Agreement.

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OTHER INVESTMENTS (Tables)

9 Months Ended

Sep. 30, 2019

Investments, All Other Investments [Abstract]

Investment Holdings, Schedule of Investments [Table Text Block]

Net income from other investments for the three and nine months ended September 30, 2019 and 2018, is approximately as follows:

	Three months ended September 30,				Nine months ended September 30,
Description	2019		2018		2019		2018
Partnerships owning real estate and related	$	409,000	$	26,000	$	536,000	$	191,000
Partnerships owning diversified businesses		61,000		29,000		97,000		70,000
Other (bank stocks)		-		-		-		34,000
Income from investment in 49% owned affiliate (T.G.I.F. Texas, Inc.)		9,000		25,000		21,000		76,000
Total net income from other investments	$	479,000	$	80,000	$	654,000	$	371,000

Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value [Table Text Block]

The following tables present approximate gross unrealized losses and fair values for those investments that were in an unrealized loss position as of September 30, 2019 and December 31, 2018, aggregated by investment category and the length of time that investments have been in a continuous loss position:

	As of September 30, 2019
	12 Months or Less					Greater than 12 Months					Total
Investment Description	Fair Value		Unrealized Loss			Fair Value		Unrealized Loss			Fair Value		Unrealized Loss
Partnerships owning investments in technology related industries	$	-	$	-		$	150,000	$	(11,000	)	$	150,000	$	(11,000	)
Partnerships owning investments in diversified businesses		513,000		(30,000	)		-		-			513,000		(30,000	)
Total	$	513,000	$	(30,000	)	$	150,000	$	(11,000	)	$	663,000	$	(41,000	)

	As of December 31, 2018
	12 Months or Less					Greater than 12 Months					Total
Investment Description	Fair Value		Unrealized Loss			Fair Value		Unrealized Loss			Fair Value		Unrealized Loss
Partnerships owning investments in technology related industries	$	-	$	-		$	132,000	$	(18,000	)	$	132,000	$	(18,000	)
Partnerships owning investments in diversified businesses		273,00		(27,000	)							273,000		(27,000	)
Total	$	273,000		(27,000	)		132,000	$	(18,000	)	$	405,000	$	(45,000	)

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CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares	Sep. 30, 2019	Dec. 31, 2018
Stockholders' Equity, Number of Shares, Par Value and Other Disclosures [Abstract]
Excess common stock, par value	$ 1	$ 1
Excess common stock, shares authorised	100,000	100,000
Excess common stock, shares issued	0	0
Common stock par value	$ 1	$ 1
Common Stock, Shares Authorized	1,050,000	1,050,000
Common Stock, Shares, Issued	1,013,292	1,046,393
Treasury Stock, Shares		33,101

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CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($)	9 Months Ended
	Sep. 30, 2019	Sep. 30, 2018
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income attributable to the Company	$ 337,155	$ 4,615,312
Adjustments to reconcile net income attributable to the Company to net cash used in operating activities:
Depreciation expense	11,548	11,548
Stock compensation expense	8,880	0
Net income from other investments, excluding impairment losses	(654,239)	(370,616)
Equity (gain) on sale of property in residential real estate partnership	0	(5,473,887)
Equity (gain) loss from operations of residential real estate partnership	(3,225)	143,890
Net (gains) from investments in marketable securities	(252,747)	(26,291)
Net gain attributable to non-controlling interest	9,308	14,010
Deferred income tax expense	15,450	60,111
Changes in assets and liabilities:
Other assets and other receivables	(7,616)	62,942
Accounts payable, accrued expenses and other liabilities	(1,785)	(223,636)
Total adjustments	(874,426)	(5,801,929)
Net cash used in operating activities	(537,271)	(1,186,617)
CASH FLOWS FROM INVESTING ACTIVITIES:
Net proceeds from sales and redemptions of securities	1,096,670	1,140,259
Investments in marketable securities	(959,737)	(1,379,385)
Distribution from investment in residential real estate partnership, Orlando, FL	6,187	7,525,000
Contributions to investment residential real estate partnership, Fort Myers, FL	(3,000,000)	(200,000)
Distributions from other investments	1,435,879	1,560,667
Contributions to other investments	(919,613)	(1,079,783)
Proceeds from collections of mortgage loans and notes receivables	0	500,000
Distribution from affiliate	220,899	193,286
Purchases and improvements of properties	(66,162)	(26,097)
Net cash (used in) provided by investing activities	(2,185,877)	8,233,947
CASH FLOWS FROM FINANCING ACTIVITIES:
Margin borrowings	68,754	9,725,280
Dividend paid	(506,646)	(2,533,230)
Repayment of note payable to affiliate	(340,000)	(210,000)
Proceeds from stock options exercised	0	91,895
Net cash (used in) provided by financing activities	(777,892)	7,073,945
Net (decrease) increase in cash and cash equivalents	(3,501,040)	14,121,275
Cash and cash equivalents at beginning of the period	19,738,174	5,223,995
Cash and cash equivalents at end of the period	16,237,134	19,345,270
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION:
Cash paid during the period for interest	43,000	68,000
NON-CASH INVESTING AND FINANCING ACTIVITIES:
Retirement of treasury stock during the period	$ 340,281	$ 0

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STOCK OPTIONS (Details 1) - $ / shares	Sep. 30, 2019	Dec. 31, 2018
Number of securities to be issued upon exercise of outstanding options	9,600	1,600
Weighted-average exercise price of outstanding options	$ 13.55	$ 15.30
Number of securities remaining available for future issuance under equity compensation plans	36,608
Equity compensation plan approved by shareholders [Member]
Number of securities to be issued upon exercise of outstanding options	9,600
Weighted-average exercise price of outstanding options	$ 13.55
Number of securities remaining available for future issuance under equity compensation plans	36,608
Equity compensation plan not approved by shareholders [Member]
Number of securities to be issued upon exercise of outstanding options	0
Weighted-average exercise price of outstanding options	$ 0
Number of securities remaining available for future issuance under equity compensation plans	0

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FAIR VALUE OF FINANCIAL INSTRUMENTS (Tables)

9 Months Ended

Sep. 30, 2019

Fair Value Disclosures [Abstract]

Fair Value, by Balance Sheet Grouping [Table Text Block]

Assets and liabilities measured at fair value on a recurring basis are summarized below:

	Fair value measurement at reporting date using
Description	Total  September 30, 2019		Quoted Prices in Active  Markets for Identical Assets (Level 1)		Significant Other  Observable Inputs (Level 2)		Significant  Unobservable Inputs (Level 3)
Assets:
Cash equivalents:
Money market mutual funds	$	1,040,000	$	1,040,000		-	$	-
US T-Bills		14,282,000		14,282,000		-		-
Marketable securities:
Corporate debt securities		520,000		-	$	520,000		-
Marketable equity securities		2,971,000		2,971,000		-		-
Total assets	$	18,813,000	$	18,293,000	$	520,000	$	-

	Fair value measurement at reporting date using
Description	Total  December 31, 2018		Quoted Prices in Active  Markets for Identical Assets (Level 1)		Significant Other  Observable Inputs (Level 2)		Significant  Unobservable Inputs (Level 3)
Assets:
Cash equivalents:
Time deposits	$	355,000	$	-	$	355,000	$	-
Money market mutual funds		1,594,000		1,594,000		-		-
US T-Bills		17,429,000		17,429,000		-		-
Marketable securities:
Corporate debt securities		502,000		-		502,000		-
Marketable equity securities		2,574,000		2,574,000		-		-
Total assets	$	22,454,000	$	21,597,000	$	857,000	$	-

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STOCK OPTIONS

9 Months Ended

Sep. 30, 2019

Disclosure of Compensation Related Costs, Share-based Payments [Abstract]

Disclosure of Compensation Related Costs, Share-based Payments [Text Block]

8. STOCK OPTIONS

Stock based compensation expense is recognized using the fair-value method for all awards. On July 25, 2019 the Company granted options to purchase 8,000 shares of the Company’s common stock to three directors and one officer.  The exercise price of the options is equal to $13.20 per share, the market price of the stock on the date of grant and the options expires on June 29, 2021.  The Company determined the fair value of its option awards using the Black-Scholes option pricing model.  The following assumptions were used to value the options granted during the nine months ended September 30, 2019: 2 year expected life; expected volatility of approximately 19.5%; risk-free of 1.93% and annual dividend yield of 4%.  The expected life for options granted during the period represents the period of time that options are to be outstanding based on the expiration date of the Plan.  Expected volatilities are based upon historical volatility of the Company’s stock over a period equal to the 2 year expected life.

The weighted average fair value for options granted during the nine months ended September 30, 2019 was $1.11 per share.  For the nine months ended September 30, 2019 the Company recorded approximately $9,000 in stock expense compensation relating to the options granted in 2019. 

The following table summarizes stock option activity during the nine months ended September 30, 2019:

			Weighted
			Average
	Options		Exercise
	Outstanding		Price
Outstanding at January 1, 2019		1,600	$	15.30
Exercised		-		-
Forfeited		-		-
Expired unexercised		-		-
Granted options		8,000		13.20
Outstanding at September 30, 2019		9,600	$	13.55

The following table summarizes information concerning outstanding and exercisable options as of September 30, 2019:

	Number of  securities to be issued upon  exercise of outstanding options		Weighted-average  exercise price of outstanding options		Number of securities  remaining available for future issuance under equity  compensation plans
Equity compensation plan approved by shareholders		9,600	$	13.55		36,608
Equity compensation plan not approved by shareholders		—		—		—
Total		9,600	$	13.55		36,608

As of September 30, 2019, the stock options outstanding and exercisable had no intrinsic value.

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INVESTMENTS IN MARKETABLE SECURITIES

9 Months Ended

Sep. 30, 2019

Investments, Debt and Equity Securities [Abstract]

Investments in Debt and Marketable Equity Securities (and Certain Trading Assets) Disclosure [Text Block]

4. INVESTMENTS IN MARKETABLE SECURITIES

Investments in marketable securities consist primarily of large capital corporate equity and debt securities in varying industries or issued by government agencies with readily determinable fair values. These securities are stated at market value, as determined by the most recent traded price of each security at the balance sheet date. Consistent with the Company's overall current investment objectives and activities its entire marketable securities portfolio is classified as trading. Accordingly, all unrealized gains (losses) on this portfolio are recorded in income.  Included in investments in marketable securities is approximately $1.90 million and $1.76 million of large capital real estate investment trusts (REITs) as of September 30, 2019 and December 31, 2018, respectively.

Net realized and unrealized gain from investments in marketable securities for the three and nine months ended September 30, 2019 and 2018 is summarized below:

	Three months ended September 30,						Nine months ended September 30,
Description	2019			2018			2019		2018
Net realized gain from sales of securities	$	17,000		$	39,000		$	6,000	$	35,000
Unrealized net (loss) gain in trading securities		(5,000	)		(37,000	)		247,000		(9,000	)
Total net gain from investments in marketable securities	$	12,000		$	2,000		$	253,000	$	26,000

For the three months ended September 30, 2019, net realized gain from sales of marketable securities was approximately $17,000 which consisted of $19,000 of gross gains and $2,000 of gross losses. For the nine months ended September 30, 2019, net realized loss from sales of marketable securities was approximately $6,000 and consisted of approximately $66,000 of gross gains net of $60,000 of gross losses.

For the three months ended September 30, 2018, net realized gain from sales of marketable securities was approximately $39,000 of which approximately $44,000 consisted of gross gains and $5,000 of gross losses. For the nine months ended September 30, 2018, net realized gain from sales of marketable securities was approximately $35,000 and consisted of approximately $68,000 of gross gains net of $33,000 of gross losses.

Investment gains and losses on marketable securities may fluctuate significantly from period to period in the future and could have a significant impact on the Company's net earnings. However, the amount of investment gains or losses on marketable securities for any given period has no predictive value and variations in amount from period to period have no practical analytical value.

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CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($)	Sep. 30, 2019	Dec. 31, 2018
Investment properties, net of accumulated depreciation:
Office building and other commercial property	$ 929,812	$ 875,198
Total investment properties, net	929,812	875,198
Cash and cash equivalents	16,237,134	19,738,174
Investments in marketable securities	3,491,531	3,075,718
Other investments	5,919,222	6,039,456
Investment in affiliate	1,437,632	1,637,985
Loans, notes and other receivables	1,799,055	1,796,926
Investment in residential real estate partnership	3,203,225	200,000
Other assets	72,779	73,477
TOTAL ASSETS	33,090,390	33,436,934
LIABILITIES
Margin payable	9,926,672	9,857,918
Dividends payable	0	506,646
Accounts payable, accrued expenses and other liabilities	407,256	370,632
Amounts due to Adviser	64,356	40,426
Note payable to affiliate	1,000,000	1,340,000
Deferred income taxes payable	63,338	47,888
TOTAL LIABILITIES	11,461,622	12,163,510
STOCKHOLDERS' EQUITY
Excess common stock, $1 par value; 100,000 shares authorized: no shares issued	0	0
Common stock, $1 par value; 1,050,000 shares authorized, 1,013,292 issued as of September 30, 2019 and 1,046,393 shares issued as of December 31, 2018	1,013,292	1,046,393
Additional paid-in capital	23,859,686	24,157,986
Less: Treasury shares at cost 33,101 shares	0	(340,281)
Undistributed gains from sales of properties, net of losses	54,642,764	54,642,764
Undistributed losses from operations	(58,136,652)	(58,473,807)
Total stockholders' equity	21,379,090	21,033,055
Noncontrolling interest	249,678	240,369
TOTAL EQUITY	21,628,768	21,273,424
TOTAL LIABILITIES AND EQUITY	$ 33,090,390	$ 33,436,934

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CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY (Parenthetical)	3 Months Ended
	Mar. 31, 2018 $ / shares shares
Dividend Paid [Member]
Dividends Paid, Amount Per Share | $ / shares	$ 2.50
Common Stock Including Additional Paid in Capital [Member]
Stock Issued During Period, Shares, New Issues | shares	1,600

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OTHER INVESTMENTS (Details Textual) - USD ($)	1 Months Ended			3 Months Ended		9 Months Ended
	Jul. 31, 2019	Jun. 30, 2019	Feb. 28, 2019	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2019	Sep. 30, 2018	Mar. 31, 2019	Dec. 31, 2018
Other Investment [Line Items]
Other Investments				$ 5,919,222		$ 5,919,222			$ 6,039,456
Company committed to fund approximately as required by agreements with the investees				919,000		919,000
Proceeds from Sale and Maturity of Other Investments						1,435,879	$ 1,560,667
Payments to Acquire Other Investments						919,613	1,079,783
Marketable Securities, Unrealized Gain (Loss)				(5,000)	$ (37,000)	247,000	$ (9,000)
Marketable Securities				$ 3,491,531		3,491,531		$ 300,000	$ 3,075,718
Other Investments [Member]
Other Investment [Line Items]
Marketable Securities, Unrealized Gain (Loss)						$ (98,000)
TGIF Texas Inc [Member]
Other Investment [Line Items]
Equity Method Investment, Ownership Percentage				49.00%		49.00%
Private Banks [Member]
Other Investment [Line Items]
Payments to Acquire Other Investments			$ 200,000
Real Estate Private Lending Fund [Member]
Other Investment [Line Items]
Payments to Acquire Other Investments	$ 200,000
Multifamily Residential Property [Member]
Other Investment [Line Items]
Proceeds from Sale and Maturity of Other Investments						$ 563,000
Gain (Loss) on Sale of Other Investments						429,000
Stock Fund [Member]
Other Investment [Line Items]
Proceeds from Sale and Maturity of Other Investments						316,000
Gain (Loss) on Sale of Other Investments						66,000
Existing investments [Member]
Other Investment [Line Items]
Payments to Acquire Other Investments						220,000
Real Estate Partnership [Member]
Other Investment [Line Items]
Payments to Acquire Other Investments		$ 300,000				$ 700,000

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INVESTMENTS IN MARKETABLE SECURITIES (Details) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2019	Sep. 30, 2018
Marketable Securities, Gain (Loss) [Abstract]
Net realized gain from sales of securities	$ 17,000	$ 39,000	$ 6,000	$ 35,000
Unrealized net (loss) gain in trading securities	(5,000)	(37,000)	247,000	(9,000)
Total net gain from investments in marketable securities	$ 12,190	$ 1,829	$ 252,747	$ 26,291