10-Q

U.S. SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, DC 20549

FORM 10-Q

x	Quarterly Report Under Section 13 or 15(d) of the Securities Exchange Act of 1934
	For the quarterly period ended June 30, 2013
¨	Transition Report Pursuant to 13 or 15(d) of the Securities Exchange Act of 1934
	For the transition period of              to

Commission File Number 0-7865.

SECURITY LAND AND DEVELOPMENT CORPORATION

(Exact name of issuer as specified in its charter)

Georgia	58-1088232
(State or other Jurisdiction of Incorporation or Organization)	(I.R.S. Employer Identification Number)

2816 Washington Road, #103, Augusta, Georgia 30909

(Address of Principal Executive Offices)

Issuers Telephone Number (706) 736-6334

(Former Name, Former Address and Former Fiscal Year, if Changed Since Last Year)

Check whether the Issuer (1) filed all reports required to be filed by Section 13 or 15(d) of the Exchange Act during the past 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 is a large accelerated filer, an accelerated filer, a non-accelerated filer, or a smaller reporting company. 

See the definitions of "large accelerated filer," "accelerated filer" and "smaller reporting company" in rule 12b-2 of the Exchange Act.

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

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 shell company (as defined in Rule 12b-2 of the Exchange Act).

                                                                                                                            ¨Yes     xNo

State the number of shares outstanding of each of the issuer’s classes of common equity, as of the latest practicable date.

Class	Outstanding at August 12, 2013
Common Stock, $0.10 Par Value	5,243,107 shares

Table of Contents

SECURITY LAND AND DEVELOPMENT CORPORATION

Form 10-Q

Index

Part I	FINANCIAL INFORMATION
Item 1.	Financial Statements
	Consolidated Balance Sheets as of June 30, 2013 and September 30, 2012	1
	Consolidated Statements of Income and Retained Earnings for the Three Month Periods ended and for the Nine Month Periods ended June 30, 2013 and 2012	2
	Condensed Consolidated Statements of Cash Flows for the Three Month Periods ended and for the Nine Month Periods ended June 30, 2013 and 2012	3
	Notes to the Consolidated Financial Statements	4-7
Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	8-9
Item 3.	Quantitative and Qualitative Disclosures About Market Risk	9
Item 4.	Controls and Procedures	9
Part II	OTHER INFORMATION	10
Item 1.	Legal Proceedings	10
Item 1A.	Risk Factors	10
Item 2.	Unregistered Sales of Equity Securities and use of Proceeds	10
Item 3.	Defaults Upon Senior Securities	10
Item 4.	Reserved for Future Use	10
Item 5.	Other Information	10
Item 6.	Exhibits	10
	SIGNATURES	11-13

PART I. FINANCIAL INFORMATION

Item 1. Financial Statements

CONSOLIDATED BALANCE SHEETS
			June 30,			September 30,
				2013		2012
			(unaudited)
ASSETS
CURRENT ASSETS
	Cash			$	41,738	$	48,767
	Receivables from tenants, net of allowance of $6,235 and $5,322
		at June 30, 2013 and September 30, 2012		450,399		398,338
		Total current assets		492,137		447,105
INVESTMENT PROPERTIES
	Investment properties for lease, net of accumulated depreciation			5,494,191		5,587,324
	Land and improvements held for investment or development			3,639,598		3,639,598
				9,133,789		9,226,922
OTHER ASSETS				78,091		83,802
				$	9,704,017	$	9,757,829
LIABILITIES AND STOCKHOLDERS' EQUITY
CURRENT LIABILITIES
	Accounts payable and accrued expenses			$	294,210	$	382,242
	Income taxes payable			93,849		283,747
	Current maturities of notes payable			574,009		538,079
	Current maturities of deferred revenue			24,652		24,652
		Total current liabilities		986,720		1,228,720
LONG-TERM LIABILITIES
	Notes payable and line of credit, less current portion			3,091,945		3,136,794
	Deferred income taxes			770,399		771,847
	Deferred revenue, less current portion			22,582		41,071
		Total long-term liabilities		3,884,926		3,949,712
		Total liabilities		4,871,646		5,178,432
STOCKHOLDERS' EQUITY
	Common stock, par value $.10 per share; 30,000,000 shares authorized;
	5,243,107 shares issued and outstanding			524,311		524,311
	Additional paid-in capital			333,216		333,216
	Retained earnings			3,974,844		3,721,870
Total Equity				4,832,371		4,579,397
Liabilities and Equity				$	9,704,017	$	9,757,829
The accompanying notes are an integral part of these consolidated financial statements.
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SECURITY LAND AND DEVELOPMENT CORPORATION
CONSOLIDATED STATEMENTS OF INCOME AND RETAINED EARNINGS
	For the Three Month		For the Nine Month
	Period Ended June 30,		Period Ended June,
	2013	2012	2013	2012
	(unaudited)	(unaudited)	(unaudited)	(unaudited)
OPERATING REVENUE
Rent Revenue	$      363,097	$      357,312	$   1,085,150	$   1,059,418
OPERATING EXPENSES
Depreciation and amortization	32,948	32,948	98,844	98,324
Property taxes	64,292	63,795	198,653	190,601
Payroll and related costs	19,703	21,444	63,978	65,006
Insurance and utilities	11,240	11,520	30,933	32,124
Repairs and maintenance	9,488	14,680	23,575	32,289
Professional services	10,038	19,465	59,428	73,691
Bad Debt	-	1,287	2,825	9,849
Other	6,880	270	20,514	3,126
	154,589	165,409	498,750	505,010
Operating income	208,508	191,903	586,400	554,408
OTHER INCOME (EXPENSE)
Interest	(54,076)	(62,834)	(177,726)	(196,017)
Income before income taxes	154,432	129,069	408,674	358,391
INCOME TAXES PROVISION
Income Tax Expense	59,571	47,821	155,700	135,438
Net income	94,861	81,253	252,974	222,953
RETAINED EARNINGS, BEGINNING OF PERIOD	3,879,983	3,579,314	3,721,870	3,437,609
RETAINED EARNINGS, END OF PERIOD	$   3,974,844	$   3,660,567	$   3,974,844	$   3,660,562
PER SHARE DATA
Net income per common share	$            0.02	$            0.02	$            0.05	$            0.04
The accompanying notes are an integral part of these consolidated financial statements.

CONSOLIDATED STATEMENTS OF CASH FLOWS
			For the Three Month					For the Nine Month
			Period Ended June 30,					Period Ended June 30,
			2013			2012		2013		2012
			(unaudited)			(unaudited)		(unaudited)		(unaudited)
OPERATING ACTIVITIES
	Net income			$	94,861	$	81,248	$	252,974	$	222,953
	Adjustments to reconcile net income to net cash provided
	by (used in) operating activities:
		Depreciation and amortization		32,948		32,948		98,844		98,324
		Changes in deferred and accrued amounts:		(377,526)		(20,356)		(349,928)		39,228
		Net cash provided by (used in) operating activities		(249,717)		93,840		1,890		360,505
INVESTING ACTIVITIES
Purchases of, and improvements to, investment properties				-		(7,800)		-		(7,800)
		Net cash used in investing activities		-		(7,800)		-		(7,800)
FINANCING ACTIVITIES
	Proceeds from shareholder			-		-		30,000		-
	Repayments to shareholder			-		-		(30,000)		-
	Proceeds from notes payable			404,235		-		404,235		-
	Principal payments on notes payable			(142,980)		(127,277)		(413,154)		(375,079)
		Net cash provided by (used in) financing activities		261,255		(127,277)		(8,919)		(375,079)
		Net increase (decrease) in cash		11,538		(41,237)		(7,029)		(22,374)
CASH, BEGINNING OF PERIOD				30,200		70,053		48,767		51,190
CASH, END OF PERIOD				$	41,738	$	28,816	$	41,738	$	28,816
SUPPLEMENTAL CASH FLOW INFORMATION:
	Cash paid for interest			$	66,839	$	63,642	$	182,728	$	197,391
	Cash paid for income taxes			$	335,613	$	35,000	$	375,613	$	66,000
NON-CASH FINANCING ACTIVITIES
	Refinancing of line of credit to term note			$	-	$	-	$	301,170	$	-
The accompanying notes are an integral part of these consolidated financial statements.
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SECURITY LAND AND DEVELOPMENT CORPORATION

Notes to the Consolidated Financial Statements

Note  1 – Basis of Presentation

The accompanying unaudited consolidated financial statements were prepared in accordance with instructions for Form 10-Q, Article 8 of Regulation S-X and accounting principles generally accepted in the United States of America; therefore, they do not include all disclosures necessary for a complete presentation of financial condition, results of operations, and cash flows.  Such statements are unaudited but, in the opinion of management, reflect all adjustments, which are of a normal recurring nature and necessary for a fair presentation of results for the selected interim periods.  Users of financial information produced for interim periods are encouraged to refer to the footnotes contained in the audited financial statements appearing in our Form 10-K for the year ended September 30, 2012 when reviewing interim financial statements.

The financial statements include estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenue and expenses during the reporting period.  Actual results could differ from those estimates.  The consolidated financial statements include the accounts of Security Land and Development Corporation and its four wholly owned subsidiaries, Royal Palms Motel, Inc., SLDC, LLC, SLDC 2, LLC and SLDC III, LLC (described on a consolidated basis as the “Company”).  Significant intercompany transactions and accounts are eliminated in consolidation.

Critical Accounting Policies:

Estimates of Useful Lives of Investment Properties for Purposes of Depreciation

Management has estimated useful lives of investment properties, except for land, that are leased, and the Company utilizes the straight-line method to compute depreciation over the estimated useful lives of the investment properties.  Actual depreciation of investment properties will vary from management’s estimates, and the value of investment properties is more directly impacted by market conditions and the physical condition of the investment properties.

Evaluation of Long-Lived Assets for Impairment

The Company evaluates long-lived assets for impairment whenever events or changes in circumstances indicate that the carrying amount of investment properties may not be recoverable.  In evaluating recoverability, the Company generally estimates future cash flows expected to result from the use of the asset and its eventual disposition.  An impairment loss is recognized when the expected future cash flows of the asset are less than the carrying amount.

Estimates of Income Tax Rates Applicable to Deferred Taxes

The Company has deferred income taxes through a series of tax-deferred like-kind exchange transactions on certain investment properties and through accelerated depreciation elections on certain other assets.  Actual income taxes that may become due when taxable gains are realized on the sale of assets may differ from management’s estimates as a result of changes in tax laws, the tax status of the Company, or the actual taxable earnings of the Company in the periods the deferred income taxes become due. 

Refer to the Company’s Form 10-K for the year ended September 30, 2012 for further information regarding its critical accounting policies.

-4-

Note  2 – Investment Properties

Investment properties leased or held for lease to others under operating leases consisted of the following at
June 30, 2013 and September 30, 2012:

	June 30,			September 30,
	2013			2012
	(unaudited)
National Plaza building, land and improvements	$	5,138,796		$	5,138,796
Evans Ground Lease, land and improvements	2,430,373			2,430,373
Commercial land and improvements	3,639,598			3,639,598
	11,208,767			11,208,767
Less accumulated depreciation	(2,190,712		)	(2,099,614		)
	9,018,055			9,109,153
Residential rental property	145,847			145,847
Less accumulated depreciation	(30,113		)	(28,078		)
	115,734			117,769
Investment properties for lease, net of accumulated depreciation	$	9,133,789		$	9,226,922

Depreciation expense totaled approximately $31,000 and $93,000 for both the three-month and nine-month periods ended June 30, 2013 and 2012.

The National Plaza is a retail strip center located on Washington Road in Augusta Georgia.  Approximately 81% of the rentable space at the National Plaza is leased to Publix Supermarkets, Inc., the National Plaza’s anchor tenant. 

The Company entered into a long-term ground lease with a major national tenant and its developer in May 2006 on approximately 18 acres of land in Columbia County, Georgia.  The agreement required monthly rental payments of $20,833 during the development period, which was completed in January 2007.  Following the expiration of the development period, the lease requires annual rental payments of $500,000 for the first 5 years then increasing 5% in years 6, 11, and 16.  The lessee has an option to renew at year 21 and another option every 5 years thereafter for a possible total lease term of 50 years.  The lease provides for the tenant to pay for insurance and property taxes. The Company is recognizing rents on a straight-line basis over the lease term.  In July 2013 the Company sold .5 acres of the land parcel that contains the above noted lease in Columbia County, Georgia for $156,000 to the Georgia Department of Transportation.  Of this amount, approximately $144,000 is obligated to go to principal pay down on the associated debt and the remaining approximately $12,000 will go to the lessee as a reduction of rental obligation.   Management does not believe that the sale of the parcel in question has any significant affect on the Evans Ground Lease or the Company’s ability to continue leasing the property or related rental revenues. 

The Company holds several parcels of land for investment or development purposes, including 19.38 acres of land in North Augusta, South Carolina, purchased in parcels during 2007 and 2008.  The Company also owns approximately 85 acres of land in south Richmond County, Georgia and a 1.1 acre parcel along Washington Road in Augusta, Georgia that adjoins the Company’s National Plaza investment property.  The aggregate costs of these investment properties held for investment or development was $3,639,598 at June 30, 2013 and September 30, 2012.

(Continued)

-5-

Note  2 – Investment Properties, (Continued)

Refer to the Company’s Form 10-K for the year ended September 30, 2012 for further information on operating lease agreements and land held for investment or development purposes.

Note  3 – Notes Payable and Line of Credit

Notes payable and line of credit consisted of the following at:

	June 30, 2013			September 30, 2012
	(unaudited)
A note payable to the seller of approximately 2.81 acres of land in North Augusta, South Carolina, collateralized by the land. The note is payable in monthly installments of $7,182 through June 2013, and bears interest at a fixed rate of 6%.	$	-		$	63,052
A note payable to an insurance company, secured with a mortgage interest in National Plaza and an assignment of rents. The note is payable in monthly installments of $35,633, including interest, through June 2015, and bears interest at a fixed rate of 7.875%.	788,862			1,054,186
A note payable to an insurance company collateralized with approximately 18 acres of land in Columbia County, Georgia, and an assignment of the long-term ground lease. The note is payable in monthly installments of $19,137, including interest, through May 1, 2027, and bears interest at a fixed rate of 5.85%.	2,183,010			2,257,635
A note payable with a regional financial institution.  In March 2008 the Company took out a line of credit with a regional financial institution for up to $251,934 with a floating interest rate based on prime and originally payable in full in April 2009. In April 2009 the Company refinanced the $243,019 line of credit with a regional financial institution. The Company entered into an agreement with the same regional financial institution to borrow the outstanding balance of $243,019, bearing interest based on the greater of prime or 6% with interest payments due monthly, maturing in April 2010. In January 2010 the Company renewed this line of credit and increased the open balance to $300,250. This agreement originally matured in February 2011. In December 2010, the Company renewed the line of credit to December 5, 2011, at the greater of prime plus 1% or 6%. In December 2011, the Company renewed the line of credit to December 12, 2012, at the greater of prime plus 1% or 6%. In November of 2012, the Company converted the line of credit to a fixed rate loan due December 2017.  The new term loan accrues interest at a 5.5% annually with monthly installments of $3,287.  The current balance relates to the purchase of the 1 acre adjoining the North Augusta, South Carolina property in May 2008 and is collateralized by the residential property on Stanley Drive in Augusta, Georgia.	290,343			300,000
A note payable to a regional financial institution collateralized with 17.54 acres of land in North Augusta, South Carolina. The note is payable in monthly installments of $7,653, including principal and interest, through July 2018, and bears interest at a fixed rate of 5%.	403,739			-
	3,665,954			3,674,873
Less current maturities	(574,009		)	(538,079		)
	$	3,091,945		$	3,136,794

(Continued)

-6-

Note  3 – Notes Payable and Line of Credit, (Continued)

Management of the Company expects future liquidity needs of the Company to be funded from rent revenues, refinancing and the appreciation in investment properties (which can be sold or mortgaged, if necessary).  Additionally, funding can be obtained from members of the Company’s Board of Directors.

Current maturities of notes payable will require the Company to make payments over the next 12 months totaling $574,009.  The Company projects that it will be able to fund the payment of its current maturities of notes payable through cash flows generated from its operations and cash on hand, but there can be no assurance that this will occur.

If the Company is unsuccessful in their efforts described above, the Company intends to seek additional financing or sell certain of its assets.

Note  4 – Income Taxes

As of September 30, 2012 the Company was in arrears in paying its income tax obligations, with a total outstanding income tax payable balance in the amount of $244,714.  Of this amount $202,950 was related to 2012 and the remaining $41,764 was related to the 2011 tax expense.  As of June 30, 2013 the Company believes it has paid all prior year income taxes payable in full and has made all estimated tax payments through March 31, 2013. 

Note  5 – Concentrations

Substantially all of the Company’s assets consist of real estate located in Richmond and Columbia Counties in the state of Georgia and in North Augusta, South Carolina.  Approximately 99% of the Company’s revenues are earned from two of the Company’s investment properties, National Plaza and the Evans Ground Lease, which comprise approximately 51% and 48% of the Company’s revenues, respectively.   The anchor tenant for National Plaza, Publix Supermarkets, Inc. (“Publix”), a regional food supermarket chain, leases approximately 81% of the space at National Plaza.  The Company generates approximately 37% of its revenues though its lease with Publix.

Note  6 –  Related Party Transactions

The Company has hired an attorney who sits on the Company’s Board of Directors and who also serves a Vice President of the Company, to represent the Company in a legal matter regarding a tenant’s claim for reimbursement of certain expenses charged.  It is the opinion of the Company’s management that the Company is not liable for this claim.

During the first quarter of 2013, the Company borrowed $30,000 from a member of the Company’s Board of Directors, who is also a member of the Flanagin family, to meet cash flow needs.  The entire amount was repaid during the first quarter with interest at a rate of 6%.  There were no additional borrowings from this related party during the current quarter.

-7-

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

Results of Operations:

The Company’s results of operations for the nine months ended June 30, 2013, and a comparative analysis of the same period for 2012 are presented below:

					Increase (Decrease)
					2013 compared to 2012
	2013		2012		Amount		Percent
Rent revenue	$	1,085,150	$	1,059,418	$	25,732	2	%
Operating expenses	498,750		505,010		(6,260)		-1	%
Interest expense	177,726		196,017		(18,291)		-9	%
Income tax expense	155,700		135,438		20,262		15	%
Net income	252,974		222,953		30,021		13	%

Rent revenue consists primarily of rent revenue from the Company’s National Plaza, a strip center on Washington Road in Augusta, Georgia, and the Evans Ground Lease in Evans, Georgia.  The Company also earned rent revenue from a ground lease with an auto-repair service operation on an out parcel of National Plaza. 

Refer to the Company’s Form 10-K for the year ended September 30, 2012 for further information regarding the properties owned and their lease terms.

Total operating expenses for the nine months ended June 30, 2013 was consistent with the same period for 2012.  Management expects operating expenses for the remainder of the current fiscal year to be comparable to the current operating period.

Interest expense for the nine month period ended June 30, 2013 decreased compared to 2012 due to the decrease in debt resulting from scheduled principal payments. Management expects interest expense for the remainder of the current fiscal year to increase slightly due to the additional borrowings in the current quarter.

Income tax expense for the nine month period ended June 30, 2013 increased compared to the same period for 2012 due mainly to increased rental income related higher tenant occupancy at National Plaza and  lower interest expense as noted above.  Management expects income tax expense for the remainder of the current fiscal year to be comparable to the current operating period.

Liquidity and Sources of Capital:

The Company’s ratio of current assets to current liabilities at June 30, 2013 was 50%.  The ratio was 36% at September 30, 2012. 

Management of the Company expects future liquidity needs of the Company to be funded from rent revenues, refinancing and the appreciation in investment properties (which can be sold or mortgaged, if necessary).  Additionally, funding can be obtained from members of the Board of Directors.

During the quarter, the Company obtained financing, using land as collateral, to pay tax amounts outstanding to the IRS and other outstanding liabilities.

-8-

Current maturities of notes payable will require the Company to make payments over the next 12 months totaling $574,009.  The Company projects that it will be able to fund the payment of its current maturities of notes payable through cash flows generated from its operations and cash on hand, but there can be no assurance that this will occur.

Cautionary Note Regarding Forward-Looking Statements:

The results of operations for the nine-month period ended June 30, 2013 are not necessarily indicative of the results that may be expected for the entire fiscal year.  The Company may, from time to time, make written or oral forward-looking statements, including statements contained in the Company’s filings with the Securities and Exchange Commission (the “Commission”) and its reports to stockholders.  Such forward-looking statements are made based on management’s belief as well as assumptions made by, and information currently available to, management pursuant to “safe harbor” provisions of the Private Securities Litigation Reform Act of 1995.  The Company’s actual results may differ materially from the results anticipated in these forward-looking statements due to a variety of factors, including, but not limited to, competition from other real estate companies, the ability of the Company to obtain financing for projects, and the continuing operations of tenants.

Item  3. Quantitative and Qualitative Disclosures About Market Risks

   Not applicable to smaller reporting companies

Item  4. Controls and Procedures

(a)    Within the 90 days prior to the filing date of this report, the Company carried out an evaluation, under the supervision and with the participation of the Company’s management, including the Company’s Chief Executive Officer, of the effectiveness of the design and operation of the Company’s disclosure controls and procedures pursuant to Rules 13a-15(e) and 15d-15(e) under the Securities and Exchange Act of 1934.  Based upon that evaluation, the Company’s Chief Executive Officer concluded that the Company’s disclosure controls and procedures were ineffective.

(b)    There were no significant changes in the Company’s internal controls over financial reporting or in other factors that could significantly affect these controls subsequent to the date the Chief Executive Officer carried out the evaluation.

        As of September 30, 2012, the Company’s management evaluated the effectiveness of its internal control.  Based on the evaluation, the Company’s management concluded that the Company’s internal control over financial reporting was ineffective as of September 30, 2012 and identified a material weakness related to the lack of segregation of duties, accounting personnel with the requisite knowledge of GAAP and the lack of written policies and procedures over financial reporting.

        Notwithstanding the existence of this material weakness in our internal control over financial reporting, our management believes that the consolidated financial statements included in its reports fairly present in all material respects the Company’s financial condition, results of operations and cash flows for the periods presented.

There has been no change in the Company’s internal control over financial reporting that occurred during the Company’s most recent fiscal quarter that has materially affected, or is reasonably likely to materially affect, the Company’s internal control over financial reporting.

 -9-

PART II - OTHER INFORMATION

Item  1. Legal Proceedings

During 2011, the Company was notified by a tenant of a claim for reimbursement of certain expenses charged.  It is the opinion of the Company's management that the Company is not liable for this claim.  The Company has accrued approximately $100,000 for professional fees and other expenses to defend its position.

Item  1A. Risk Factors

The Company, as a smaller reporting company, is not required to provide the information required by this item.

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

None

Item  3. Defaults Upon Senior Securities

None

Item  4. Reserved for Future Use

Item  5. Other Information

Management of the Company notes that no Forms 8-K were filed during the period and Management is not aware of any un-reported matters occurring during the period that would require disclosure in a Form 8-K. 

Item  6. Exhibits

(a)	Exhibit No.	Description
	31.1	Certification Pursuant to Section 302 of Sarbanes-Oxley Act of 2002
	32.1	Certification Pursuant to Section 906 of Sarbanes-Oxley Act of 2002
	101	The following financial information from Security Land and Development Corporation’s Quarterly Report on Form 10-Q for the quarter ended June 30, 2013 is  formatted in Extensible Business Reporting Language (XBRL):  (i) The Consolidated Balance Sheets, (ii) the Consolidated Statements of Income and Retained Earnings, (iii) the Consolidated Statements of Cash Flows and (iv) Notes to Consolidated Financial Statements.

 -10-

SIGNATURES

In accordance with the requirements of the Exchange Act, the registrant caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

SECURITY LAND AND DEVELOPMENT CORPORATION

(Registrant)

By:	/s/ T. Greenlee Flanagin	August 12, 2013
	T. Greenlee Flanagin	Date
	President
	Chief Executive Officer and Chief Financial Officer

-11-

EX-31

EXHIBIT 31.1

CERTIFICATIONS

I, T. Greenlee Flanagin, certify that:

1.  I have reviewed this quarterly report on Form 10-Q of Security Land and Development Corporation;

2.  Based on my knowledge, this 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 report;

3.  Based on my knowledge, the financial statements, and other financial information included in this 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 report;

4.  The registrant’s other certifying officers 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, or caused such disclosure controls and procedures to be designed under 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 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 in 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; and

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.

a)  all significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information.

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

Date:   August 12, 2013

/s/ T. Greenlee Flanagin

T. Greenlee Flanagin

President and Chief Executive Officer and
Chief Financial Officer

EX-32

 

EXHIBIT 32.1

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 Security Land and Development Corporation (the “Company”) on Form 10-Q for the quarter ended June 30, 2013 as filed with the Securities and Exchange Commission on the date hereof (the “Report”), the undersigned, T. Greenlee Flanagin, President and Chief Executive Officer of the Company, does hereby certify, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that to the best of my knowledge:

	(1)	The Report fully complies with the requirements of section 13(a) 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.
By:
	/s/ T. Greenlee Flanagin
	T. Greenlee Flanagin
	President
	Chief Executive Officer and Chief
	Financial Officer
	August 12, 2013

A signed original of this written statement required by Section 906 has been provided to Security Land and Development Corporation and will be retained by Security Land and Development Corporation and furnished to the Securities and Exchange Commission or its staff upon request.

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Investment Properties (Details Textuals 2)	9 Months Ended
	Jun. 30, 2013
Real Estate [Abstract]
Percentage of National Plaza space leased to Publix Supermarkets, Inc	81.00%

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CONSOLIDATED STATEMENTS OF INCOME AND RETAINED EARNINGS (Unaudited) (USD $)	3 Months Ended		9 Months Ended
	Jun. 30, 2013	Jun. 30, 2012	Jun. 30, 2013	Jun. 30, 2012
OPERATING REVENUE
Rent Revenue	$ 363,097	$ 357,312	$ 1,085,150	$ 1,059,418
OPERATING EXPENSES
Depreciation and amortization	32,948	32,948	98,844	98,324
Property taxes	64,292	63,795	198,653	190,601
Payroll and related costs	19,703	21,444	63,978	65,006
Insurance and utilities	11,240	11,520	30,933	32,124
Repairs and maintenance	9,488	14,680	23,575	32,289
Professional services	10,038	19,465	59,428	73,691
Bad Debt		1,287	2,825	9,849
Other	6,880	270	20,514	3,126
Total operating expenses	154,589	165,409	498,750	505,010
Operating income	208,508	191,903	586,400	554,408
OTHER INCOME (EXPENSE)
Interest	(54,076)	(62,834)	(177,726)	(196,017)
Income before income taxes	154,432	129,069	408,674	358,391
INCOME TAXES PROVISION
Income Tax Expense	59,571	47,821	155,700	135,438
Net income	94,861	81,253	252,974	222,953
RETAINED EARNINGS, BEGINNING OF PERIOD	3,879,983	3,579,314	3,721,870	3,437,609
RETAINED EARNINGS, END OF PERIOD	$ 3,974,844	$ 3,660,562	$ 3,974,844	$ 3,660,562
PER SHARE DATA
Net income per common share (in dollars per share)	$ 0.02	$ 0.02	$ 0.05	$ 0.04

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Concentrations

9 Months Ended

Jun. 30, 2013

Risks and Uncertainties [Abstract]

Concentrations

Note  5 – Concentrations

Substantially all of the Company’s assets consist of real estate located in Richmond and Columbia Counties in the state of Georgia and in North Augusta, South Carolina.  Approximately 99% of the Company’s revenues are earned from two of the Company’s investment properties, National Plaza and the Evans Ground Lease, which comprise approximately 51% and 48% of the Company’s revenues, respectively.   The anchor tenant for National Plaza, Publix Supermarkets, Inc. (“Publix”), a regional food supermarket chain, leases approximately 81% of the space at National Plaza.  The Company generates approximately 37% of its revenues though its lease with Publix.

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Related Party Transactions (Details Textuals) (USD $)	9 Months Ended	3 Months Ended
	Jun. 30, 2013	Dec. 31, 2012 Member of Board of Directors
Related Party Transaction [Line Items]
Proceeds from shareholder	$ 30,000	$ 30,000
Interest rate for repayments		6.00%

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Investment Properties (Details Textuals 3) (Long-term ground lease, USD $)	1 Months Ended
	May 31, 2006 acre	Jul. 31, 2013 Subsequent Event acre
Investment Holdings [Line Items]
Area of land for long-term ground lease	18
Monthly rental payments, development period	$ 20,833
Annual rental payments	500,000
Annual rental payments description	first 5 years
Percentage of rent increasing in years 6, 11, and 16	5.00%
Renewal period	21 years
Renewal period description	every 5 years thereafter
Total lease term	50 years
Area of land sold		0.5
Value of land sold		156,000
Principal pay down of debt		144,000
Amount paid to lessee		$ 12,000

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Basis of Presentation

9 Months Ended

Jun. 30, 2013

Organization, Consolidation and Presentation Of Financial Statements [Abstract]

Basis of Presentation

Note  1 – Basis of Presentation

The accompanying unaudited consolidated financial statements were prepared in accordance with instructions for Form 10-Q, Article 8 of Regulation S-X and accounting principles generally accepted in the United States of America; therefore, they do not include all disclosures necessary for a complete presentation of financial condition, results of operations, and cash flows.  Such statements are unaudited but, in the opinion of management, reflect all adjustments, which are of a normal recurring nature and necessary for a fair presentation of results for the selected interim periods.  Users of financial information produced for interim periods are encouraged to refer to the footnotes contained in the audited financial statements appearing in our Form 10-K for the year ended September 30, 2012 when reviewing interim financial statements.

The financial statements include estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenue and expenses during the reporting period.  Actual results could differ from those estimates.  The consolidated financial statements include the accounts of Security Land and Development Corporation and its four wholly owned subsidiaries, Royal Palms Motel, Inc., SLDC, LLC, SLDC 2, LLC and SLDC III, LLC (described on a consolidated basis as the “Company”).  Significant intercompany transactions and accounts are eliminated in consolidation.

Critical Accounting Policies:

Estimates of Useful Lives of Investment Properties for Purposes of Depreciation

Management has estimated useful lives of investment properties, except for land, that are leased, and the Company utilizes the straight-line method to compute depreciation over the estimated useful lives of the investment properties.  Actual depreciation of investment properties will vary from management’s estimates, and the value of investment properties is more directly impacted by market conditions and the physical condition of the investment properties.

Evaluation of Long-Lived Assets for Impairment

The Company evaluates long-lived assets for impairment whenever events or changes in circumstances indicate that the carrying amount of investment properties may not be recoverable.  In evaluating recoverability, the Company generally estimates future cash flows expected to result from the use of the asset and its eventual disposition.  An impairment loss is recognized when the expected future cash flows of the asset are less than the carrying amount.

Estimates of Income Tax Rates Applicable to Deferred Taxes

The Company has deferred income taxes through a series of tax-deferred like-kind exchange transactions on certain investment properties and through accelerated depreciation elections on certain other assets.  Actual income taxes that may become due when taxable gains are realized on the sale of assets may differ from management’s estimates as a result of changes in tax laws, the tax status of the Company, or the actual taxable earnings of the Company in the periods the deferred income taxes become due. 

Refer to the Company’s Form 10-K for the year ended September 30, 2012 for further information regarding its critical accounting policies.

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Notes Payable and Line of Credit

9 Months Ended

Jun. 30, 2013

Debt Disclosure [Abstract]

Notes Payable and Line of Credit

Note  3 – Notes Payable and Line of Credit

Notes payable and line of credit consisted of the following at:

	June 30, 2013			September 30, 2012
	(unaudited)
A note payable to the seller of approximately 2.81 acres of land in North Augusta, South Carolina, collateralized by the land. The note is payable in monthly installments of $7,182 through June 2013, and bears interest at a fixed rate of 6%.	$	-		$	63,052
A note payable to an insurance company, secured with a mortgage interest in National Plaza and an assignment of rents. The note is payable in monthly installments of $35,633, including interest, through June 2015, and bears interest at a fixed rate of 7.875%.	788,862			1,054,186
A note payable to an insurance company collateralized with approximately 18 acres of land in Columbia County, Georgia, and an assignment of the long-term ground lease. The note is payable in monthly installments of $19,137, including interest, through May 1, 2027, and bears interest at a fixed rate of 5.85%.	2,183,010			2,257,635
A note payable with a regional financial institution.  In March 2008 the Company took out a line of credit with a regional financial institution for up to $251,934 with a floating interest rate based on prime and originally payable in full in April 2009. In April 2009 the Company refinanced the $243,019 line of credit with a regional financial institution. The Company entered into an agreement with the same regional financial institution to borrow the outstanding balance of $243,019, bearing interest based on the greater of prime or 6% with interest payments due monthly, maturing in April 2010. In January 2010 the Company renewed this line of credit and increased the open balance to $300,250. This agreement originally matured in February 2011. In December 2010, the Company renewed the line of credit to December 5, 2011, at the greater of prime plus 1% or 6%. In December 2011, the Company renewed the line of credit to December 12, 2012, at the greater of prime plus 1% or 6%. In November of 2012, the Company converted the line of credit to a fixed rate loan due December 2017.  The new term loan accrues interest at a 5.5% annually with monthly installments of $3,287.  The current balance relates to the purchase of the 1 acre adjoining the North Augusta, South Carolina property in May 2008 and is collateralized by the residential property on Stanley Drive in Augusta, Georgia.	290,343			300,000
A note payable to a regional financial institution collateralized with 17.54 acres of land in North Augusta, South Carolina. The note is payable in monthly installments of $7,653, including principal and interest, through July 2018, and bears interest at a fixed rate of 5%.	403,739			-
	3,665,954			3,674,873
Less current maturities	(574,009		)	(538,079		)
	$	3,091,945		$	3,136,794

Management of the Company expects future liquidity needs of the Company to be funded from rent revenues, refinancing and the appreciation in investment properties (which can be sold or mortgaged, if necessary).  Additionally, funding can be obtained from members of the Company’s Board of Directors.

Current maturities of notes payable will require the Company to make payments over the next 12 months totaling $574,009.  The Company projects that it will be able to fund the payment of its current maturities of notes payable through cash flows generated from its operations and cash on hand, but there can be no assurance that this will occur.

If the Company is unsuccessful in their efforts described above, the Company intends to seek additional financing or sell certain of its assets.

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Related Party Transactions

9 Months Ended

Jun. 30, 2013

Related Party Transactions [Abstract]

Related Party Transactions

Note  6 –  Related Party Transactions

The Company has hired an attorney who sits on the Company’s Board of Directors and who also serves a Vice President of the Company, to represent the Company in a legal matter regarding a tenant’s claim for reimbursement of certain expenses charged.  It is the opinion of the Company’s management that the Company is not liable for this claim.

During the first quarter of 2013, the Company borrowed $30,000 from a member of the Company’s Board of Directors, who is also a member of the Flanagin family, to meet cash flow needs.  The entire amount was repaid during the first quarter with interest at a rate of 6%.  There were no additional borrowings from this related party during the current quarter.

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Income Taxes

9 Months Ended

Jun. 30, 2013

Income Tax Disclosure [Abstract]

Income Taxes

Note  4 – Income Taxes

As of September 30, 2012 the Company was in arrears in paying its income tax obligations, with a total outstanding income tax payable balance in the amount of $244,714.  Of this amount $202,950 was related to 2012 and the remaining $41,764 was related to the 2011 tax expense.  As of June 30, 2013 the Company believes it has paid all prior year income taxes payable in full and has made all estimated tax payments through March 31, 2013. 

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CONSOLIDATED BALANCE SHEETS (Parentheticals) (USD $)	Jun. 30, 2013	Sep. 30, 2012
Statement Of Financial Position [Abstract]
Allowance of receivables from tenants (in dollars)	$ 6,235	$ 5,322
Common stock, par value (in dollars per share)	$ 0.10	$ 0.10
Common stock, shares authorized	30,000,000	30,000,000
Common stock, shares issued	5,243,107	5,243,107
Common stock, shares outstanding	5,243,107	5,243,107

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Notes Payable and Line of Credit (Tables)

9 Months Ended

Jun. 30, 2013

Debt Disclosure [Abstract]

Schedule of notes payable and line of credit

	June 30, 2013			September 30, 2012
	(unaudited)
A note payable to the seller of approximately 2.81 acres of land in North Augusta, South Carolina, collateralized by the land. The note is payable in monthly installments of $7,182 through June 2013, and bears interest at a fixed rate of 6%.	$	-		$	63,052
A note payable to an insurance company, secured with a mortgage interest in National Plaza and an assignment of rents. The note is payable in monthly installments of $35,633, including interest, through June 2015, and bears interest at a fixed rate of 7.875%.	788,862			1,054,186
A note payable to an insurance company collateralized with approximately 18 acres of land in Columbia County, Georgia, and an assignment of the long-term ground lease. The note is payable in monthly installments of $19,137, including interest, through May 1, 2027, and bears interest at a fixed rate of 5.85%.	2,183,010			2,257,635
A note payable with a regional financial institution.  In March 2008 the Company took out a line of credit with a regional financial institution for up to $251,934 with a floating interest rate based on prime and originally payable in full in April 2009. In April 2009 the Company refinanced the $243,019 line of credit with a regional financial institution. The Company entered into an agreement with the same regional financial institution to borrow the outstanding balance of $243,019, bearing interest based on the greater of prime or 6% with interest payments due monthly, maturing in April 2010. In January 2010 the Company renewed this line of credit and increased the open balance to $300,250. This agreement originally matured in February 2011. In December 2010, the Company renewed the line of credit to December 5, 2011, at the greater of prime plus 1% or 6%. In December 2011, the Company renewed the line of credit to December 12, 2012, at the greater of prime plus 1% or 6%. In November of 2012, the Company converted the line of credit to a fixed rate loan due December 2017.  The new term loan accrues interest at a 5.5% annually with monthly installments of $3,287.  The current balance relates to the purchase of the 1 acre adjoining the North Augusta, South Carolina property in May 2008 and is collateralized by the residential property on Stanley Drive in Augusta, Georgia.	290,343			300,000
A note payable to a regional financial institution collateralized with 17.54 acres of land in North Augusta, South Carolina. The note is payable in monthly installments of $7,653, including principal and interest, through July 2018, and bears interest at a fixed rate of 5%.	403,739			-
	3,665,954			3,674,873
Less current maturities	(574,009		)	(538,079		)
	$	3,091,945		$	3,136,794

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CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) (USD $)	3 Months Ended		9 Months Ended
	Jun. 30, 2013	Jun. 30, 2012	Jun. 30, 2013	Jun. 30, 2012
OPERATING ACTIVITIES
Net income	$ 94,861	$ 81,253	$ 252,974	$ 222,953
Adjustments to reconcile net income to net cash provided by (used in) operating activities:
Depreciation and amortization	32,948	32,948	98,844	98,324
Changes in deferred and accrued amounts:	(377,526)	(20,356)	(349,928)	39,228
Net cash provided by (used in) operating activities	(249,717)	93,840	1,890	360,505
INVESTING ACTIVITIES
Purchases of, and improvements to, investment properties		(7,800)		(7,800)
Net cash used in investing activities		(7,800)		(7,800)
FINANCING ACTIVITIES
Proceeds from shareholder			30,000
Repayments to shareholder			(30,000)
Proceeds from notes payable	404,235		404,235
Principal payments on notes payable	(142,980)	(127,277)	(413,154)	(375,079)
Net cash provided by (used in) financing activities	261,255	(127,277)	(8,919)	(375,079)
Net increase (decrease) in cash	11,538	(41,237)	(7,029)	(22,374)
CASH, BEGINNING OF PERIOD	30,200	70,053	48,767	51,190
CASH, END OF PERIOD	41,738	28,816	41,738	28,816
SUPPLEMENTAL CASH FLOW INFORMATION:
Cash paid for interest	66,839	63,642	182,728	197,391
Cash paid for income taxes	335,613	35,000	375,613	66,000
NON-CASH FINANCING ACTIVITIES
Refinancing of line of credit to term note			$ 301,170

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CONSOLIDATED BALANCE SHEETS (USD $)	Jun. 30, 2013	Sep. 30, 2012
CURRENT ASSETS
Cash	$ 41,738	$ 48,767
Receivables from tenants, net of allowance of $6,235 and $5,322 at June 30, 2013 and September 30, 2012	450,399	398,338
Total current assets	492,137	447,105
INVESTMENT PROPERTIES
Investment properties for lease, net of accumulated depreciation	5,494,191	5,587,324
Land and improvements held for investment or development	3,639,598	3,639,598
Total investment properties	9,133,789	9,226,922
OTHER ASSETS	78,091	83,802
Total Assets	9,704,017	9,757,829
CURRENT LIABILITIES
Accounts payable and accrued expenses	294,210	382,242
Income taxes payable	93,849	283,747
Current maturities of notes payable	574,009	538,079
Current maturities of deferred revenue	24,652	24,652
Total current liabilities	986,720	1,228,720
LONG-TERM LIABILITIES
Notes payable and line of credit, less current portion	3,091,945	3,136,794
Deferred income taxes	770,399	771,847
Deferred revenue, less current portion	22,582	41,071
Total long-term liabilities	3,884,926	3,949,712
Total liabilities	4,871,646	5,178,432
STOCKHOLDERS' EQUITY
Common stock, par value $.10 per share; 30,000,000 shares authorized; 5,243,107 shares issued and outstanding	524,311	524,311
Additional paid-in capital	333,216	333,216
Retained earnings	3,974,844	3,721,870
Total Equity	4,832,371	4,579,397
Liabilities and Equity	$ 9,704,017	$ 9,757,829

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Concentrations (Details Textuals)	9 Months Ended
	Jun. 30, 2013 Property
Revenues
Concentration Risk [Line Items]
Revenue earned from customers	99.00%
Number of investment properties	2
National Plaza, Publix Supermarkets, Inc.
Concentration Risk [Line Items]
Percentage of lease space	81.00%
Percentage of lease revenue	37.00%
Customer Concentration Risk | National Plaza | Revenues
Concentration Risk [Line Items]
Revenue earned from customers	51.00%
Customer Concentration Risk | Evans Ground Lease | Revenues
Concentration Risk [Line Items]
Revenue earned from customers	48.00%

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Investment Properties (Tables)

9 Months Ended

Jun. 30, 2013

Real Estate [Abstract]

Schedule of investment properties leased or held for lease to others under operating leases

	June 30,			September 30,
	2013			2012
	(unaudited)
National Plaza building, land and improvements	$	5,138,796		$	5,138,796
Evans Ground Lease, land and improvements	2,430,373			2,430,373
Commercial land and improvements	3,639,598			3,639,598
	11,208,767			11,208,767
Less accumulated depreciation	(2,190,712		)	(2,099,614		)
	9,018,055			9,109,153
Residential rental property	145,847			145,847
Less accumulated depreciation	(30,113		)	(28,078		)
	115,734			117,769
Investment properties for lease, net of accumulated depreciation	$	9,133,789		$	9,226,922

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Investment Properties (Details Textuals 1) (USD $)	3 Months Ended		9 Months Ended
	Jun. 30, 2013	Jun. 30, 2012	Jun. 30, 2013	Jun. 30, 2012
Real Estate [Abstract]
Depreciation expense	$ 31,000	$ 31,000	$ 93,000	$ 93,000

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Basis of Presentation (Policies)

9 Months Ended

Jun. 30, 2013

Organization, Consolidation and Presentation Of Financial Statements [Abstract]

Estimates of Useful Lives of Investment Properties for Purposes of Depreciation

Estimates of Useful Lives of Investment Properties for Purposes of Depreciation

Management has estimated useful lives of investment properties, except for land, that are leased, and the Company utilizes the straight-line method to compute depreciation over the estimated useful lives of the investment properties.  Actual depreciation of investment properties will vary from management’s estimates, and the value of investment properties is more directly impacted by market conditions and the physical condition of the investment properties.

Evaluation of Long-Lived Assets for Impairment

Evaluation of Long-Lived Assets for Impairment

The Company evaluates long-lived assets for impairment whenever events or changes in circumstances indicate that the carrying amount of investment properties may not be recoverable.  In evaluating recoverability, the Company generally estimates future cash flows expected to result from the use of the asset and its eventual disposition.  An impairment loss is recognized when the expected future cash flows of the asset are less than the carrying amount.

Estimates of Income Tax Rates Applicable to Deferred Taxes

Estimates of Income Tax Rates Applicable to Deferred Taxes

The Company has deferred income taxes through a series of tax-deferred like-kind exchange transactions on certain investment properties and through accelerated depreciation elections on certain other assets.  Actual income taxes that may become due when taxable gains are realized on the sale of assets may differ from management’s estimates as a result of changes in tax laws, the tax status of the Company, or the actual taxable earnings of the Company in the periods the deferred income taxes become due. 

Refer to the Company’s Form 10-K for the year ended September 30, 2012 for further information regarding its critical accounting policies.

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Investment Properties

9 Months Ended

Jun. 30, 2013

Real Estate [Abstract]

Investment Properties

Note  2 – Investment Properties

Investment properties leased or held for lease to others under operating leases consisted of the following at 
June 30, 2013 and September 30, 2012:

	June 30,			September 30,
	2013			2012
	(unaudited)
National Plaza building, land and improvements	$	5,138,796		$	5,138,796
Evans Ground Lease, land and improvements	2,430,373			2,430,373
Commercial land and improvements	3,639,598			3,639,598
	11,208,767			11,208,767
Less accumulated depreciation	(2,190,712		)	(2,099,614		)
	9,018,055			9,109,153
Residential rental property	145,847			145,847
Less accumulated depreciation	(30,113		)	(28,078		)
	115,734			117,769
Investment properties for lease, net of accumulated depreciation	$	9,133,789		$	9,226,922

Depreciation expense totaled approximately $31,000 and $93,000 for both the three-month and nine-month periods ended June 30, 2013 and 2012.

The National Plaza is a retail strip center located on Washington Road in Augusta Georgia.  Approximately 81% of the rentable space at the National Plaza is leased to Publix Supermarkets, Inc., the National Plaza’s anchor tenant. 

The Company entered into a long-term ground lease with a major national tenant and its developer in May 2006 on approximately 18 acres of land in Columbia County, Georgia.  The agreement required monthly rental payments of $20,833 during the development period, which was completed in January 2007.  Following the expiration of the development period, the lease requires annual rental payments of $500,000 for the first 5 years then increasing 5% in years 6, 11, and 16.  The lessee has an option to renew at year 21 and another option every 5 years thereafter for a possible total lease term of 50 years.  The lease provides for the tenant to pay for insurance and property taxes. The Company is recognizing rents on a straight-line basis over the lease term.  In July 2013 the Company sold .5 acres of the land parcel that contains the above noted lease in Columbia County, Georgia for $156,000 to the Georgia Department of Transportation.  Of this amount, approximately $144,000 is obligated to go to principal pay down on the associated debt and the remaining approximately $12,000 will go to the lessee as a reduction of rental obligation.   Management does not believe that the sale of the parcel in question has any significant affect on the Evans Ground Lease or the Company’s ability to continue leasing the property or related rental revenues. 

The Company holds several parcels of land for investment or development purposes, including 19.38 acres of land in North Augusta, South Carolina, purchased in parcels during 2007 and 2008.  The Company also owns approximately 85 acres of land in south Richmond County, Georgia and a 1.1 acre parcel along Washington Road in Augusta, Georgia that adjoins the Company’s National Plaza investment property.  The aggregate costs of these investment properties held for investment or development was $3,639,598 at June 30, 2013 and September 30, 2012.

Refer to the Company’s Form 10-K for the year ended September 30, 2012 for further information on operating lease agreements and land held for investment or development purposes.

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Investment Properties (Details Textuals 4) (USD $)	Jun. 30, 2013	Sep. 30, 2012
Investment Holdings [Line Items]
Aggregate cost of land and improvements held for investment or development	$ 3,639,598	$ 3,639,598
North Augusta, South Carolina
Investment Holdings [Line Items]
Area of land	19.38
South Richmond County, Georgia
Investment Holdings [Line Items]
Area of land	85
Washington Road in Augusta, Georgia
Investment Holdings [Line Items]
Area of land	1.1

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Investment Properties (Details) (USD $)	Jun. 30, 2013	Sep. 30, 2012
Investment Holdings [Line Items]
Land and land improvements	$ 11,208,767	$ 11,208,767
Less accumulated depreciation	(2,190,712)	(2,099,614)
Investment property, net	9,018,055	9,109,153
Residential rental property	145,847	145,847
Less accumulated depreciation	(30,113)	(28,078)
Residential rental property, net	115,734	117,769
Investment properties for lease, net of accumulated depreciation	9,133,789	9,226,922
National Plaza building
Investment Holdings [Line Items]
Land and land improvements	5,138,796	5,138,796
Evans Ground Lease
Investment Holdings [Line Items]
Land and land improvements	2,430,373	2,430,373
Commercial
Investment Holdings [Line Items]
Land and land improvements	$ 3,639,598	$ 3,639,598

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Income Taxes (Details Textuals) (USD $)	12 Months Ended
	Sep. 30, 2012	Sep. 30, 2011
Income Tax Disclosure [Abstract]
Total outstanding income tax payable	$ 244,714
Income tax expense	$ 202,950	$ 41,764

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Notes Payable and Line of Credit (Details) (USD $)	Jun. 30, 2013	Sep. 30, 2012
Debt Instrument [Line Items]
Long-term debt	$ 3,665,954	$ 3,674,873
Less current maturities	(574,009)	(538,079)
Notes payable and line of credit, less current maturities	3,091,945	3,136,794
Secured Debt | 6% Note Payable
Debt Instrument [Line Items]
Long-term debt		63,052
Secured Debt | 7.875% Note Payable
Debt Instrument [Line Items]
Long-term debt	788,862	1,054,186
Secured Debt | 5.85% Note Payable
Debt Instrument [Line Items]
Long-term debt	2,183,010	2,257,635
Secured Debt | Line of credit
Debt Instrument [Line Items]
Long-term debt	290,343	300,000
Secured Debt | 5% Note Payable
Debt Instrument [Line Items]
Long-term debt	$ 403,739

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Document and Entity Information	9 Months Ended
	Jun. 30, 2013	Aug. 12, 2013
Document and Entity Information [Abstract]
Entity Registrant Name	SECURITY LAND & DEVELOPMENT CORP
Entity Central Index Key	0000088572
Trading Symbol	sldv
Current Fiscal Year End Date	--09-30
Entity Filer Category	Smaller Reporting Company
Entity Common Stock, Shares Outstanding		5,243,107
Document Type	10-Q
Document Period End Date	Jun. 30, 2013
Amendment Flag	false
Document Fiscal Year Focus	2013
Document Fiscal Period Focus	Q3

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Notes Payable and Line of Credit (Parentheticals) (Details Textuals) (USD $)			9 Months Ended			3 Months Ended					9 Months Ended
	Jun. 30, 2013	Sep. 30, 2012	Jun. 30, 2013 Secured Debt 6% Note Payable acre	Jun. 30, 2013 Secured Debt 7.875% Note Payable	Jun. 30, 2013 Secured Debt 5.85% Note Payable acre	Dec. 31, 2012 Secured Debt Line of credit acre	Dec. 31, 2011 Secured Debt Line of credit	Jan. 31, 2010 Secured Debt Line of credit	Apr. 30, 2009 Secured Debt Line of credit	Mar. 31, 2008 Secured Debt Line of credit	Jun. 30, 2013 Secured Debt 5% Note Payable acre
Debt Instrument [Line Items]
Area of land			2.81		18	1					17.54
Notes payable monthly installments			$ 7,182	$ 35,633	$ 19,137	$ 3,287					$ 7,653
Notes payable and line of credit bearing interest rate			6.00%	7.875%	5.85%	5.50%			6.00%		5.00%
Maximum line of credit with a regional financial institution									243,019	251,934
Outstanding balance of renewed line of credit								300,250	243,019
Renewed line of credit interest rate, Description						In December 2011, the Company renewed the line of credit to December 12, 2012, at the greater of prime plus 1% or 6%.	In December 2010, the Company renewed the line of credit to December 5, 2011, at the greater of prime plus 1% or 6%.
Current maturities of notes payable	$ 574,009	$ 538,079