Long-Term Debt

9 Months Ended

Jun. 30, 2016

Debt Disclosure [Abstract]

Long-Term Debt

(5) Long-Term debt. Long-term debt is summarized as follows (in thousands):

	June 30,		September 30,
	2016		2015
Revolving credit agreements	$	—		8,494
5.6% to 7.9% mortgage notes
due in installments through 2027		37,081		40,191
		37,081		48,685
Less portion due within one year		4,384		4,180
	$	32,697		44,505

On January 30, 2015, in connection with the Spin-off, the Company terminated its $55 million credit facility entered into with Wells Fargo Bank, N.A. in 2012 and simultaneously entered into a new five year credit agreement with Wells Fargo with a maximum facility amount of $20 million (the "Credit Agreement"). The Credit Agreement provides a revolving credit facility (the “Revolver”) with a $10 million sublimit available for standby letters of credit. At the time of the Spin-off, the Company refinanced $10,483,000 of borrowings then outstanding on the terminated revolver. As of June 30, 2016, there was no debt outstanding on the Company’s new credit facility, $2,442,000 letters of credit commitment and $17,558,000 available for borrowing. The credit agreement contains certain conditions and financial covenants, including a minimum $110 million tangible net worth. As of June 30, 2016, the tangible net worth covenant would have limited our ability to pay dividends or repurchase stock with borrowed funds to a maximum of $83 million combined. The Company was in compliance with all covenants as of June 30, 2016.

During the first quarter of fiscal 2015, the Company announced the execution of a commitment from First Tennessee Bank to provide up to $40 million dollars of mortgage backed financing in two separate facilities. On July 24, 2015 the Company closed on a five year, $20 million secured revolver with a twenty-four month window to convert up to the full amount of the facility into a ten year term loan. As of June 30, 2016, there was no debt outstanding on the revolver. The second facility is a $20 million ten year term loan secured by to-be-determined collateral from our current pool of unencumbered warehouse/office properties. The purpose of these loans is to facilitate growth through new construction in the Land Development and Construction segment and/or acquisition of existing, operating buildings to be added to the Asset Management segment.

During the three months ended June 30, 2016 and June 30, 2015 the Company capitalized interest costs of $240,000 and $258,000, respectively. During the nine months ended June 30, 2016 and June 30, 2015, the Company capitalized interest costs of $704,000 and $827,000, respectively.

The fair values of the Company’s mortgage notes payable were estimated based on current rates available to the Company for debt of the same remaining maturities. At June 30, 2016, the carrying amount and fair value of such long-term debt was $37,081,000 and $40,533,000, respectively.