Table of Contents

Page

Consolidated Balance Sheets

3

Consolidated Statements of Income

4

FFO, Core FFO, AFFO, NOI and EBITDA Reconciliations

5

Financial Highlights

6

Consolidated Statements of Cash Flows

7

Capital Structure and Leverage Ratios

8

Debt Maturity

10

Property Table by Tenant

11

Property Table by State

12

Lease Expirations

13

Recent Acquisitions

14

Property Table

15

Definitions

17

Press Release Dated May 7, 2014

18

The statement of operations and supplemental statement of operations provided in this supplemental information package

present funds from operations, core funds from operations, adjusted funds from operations, net operating income and EBITDA,

which are REIT industry financial measures that are not calculated in accordance with accounting principles generally accepted

in the United States. Please see page 17 for a definition of these supplemental performance measures. Please see the

supplemental statement of operations reconciliation for a reconciliation of certain captions in the supplemental statement

of operations reported in this supplemental information package to the statement of operations as reported in the Company's

filings with the SEC on Form 10-Q.

Consolidated Balance Sheets
		March 31,		September 30,
		2014		2013
ASSETS		(unaudited)
Real Estate Investments:
Land		$             106,337,910		$             97,400,859
Buildings and Improvements		601,319,844		530,493,968
Total Real Estate Investments		707,657,754		627,894,827
Accumulated Depreciation		(98,883,773)		(91,095,415)
Net Real Estate Investments		608,773,981		536,799,412
Cash and Cash Equivalents		10,702,905		12,404,512
Securities Available for Sale at Fair Value		53,465,772		45,451,740
Tenant and Other Receivables		679,330		889,645
Deferred Rent Receivable		3,532,983		3,158,286
Prepaid Expenses		4,439,381		2,201,270
Financing Costs, net of Accumulated Amortization of
$3,322,085 and $3,061,640, respectively		4,337,233		3,823,919
Lease Costs, net of Accumulated Amortization of
$1,659,702 and $1,414,861, respectively		2,463,734		2,183,772
Intangible Assets, net of Accumulated Amortization of
$9,034,508 and $8,333,680, respectively		7,197,355		6,727,360
Other Assets		1,932,757		3,600,950
TOTAL ASSETS		$              697,525,431		$           617,240,866
LIABILITIES AND SHAREHOLDERS' EQUITY
Liabilities:
Mortgage Notes Payable		$              286,688,441		$           250,093,382
Loans Payable		47,431,597		22,200,000
Accounts Payable and Accrued Expenses		3,485,953		5,404,883
Other Liabilities		7,277,651		3,627,630
Total Liabilities		344,883,642		281,325,895
COMMITMENTS AND CONTINGENCIES
Shareholders' Equity:
Series A - 7.625% Cumulative Redeemable Preferred Stock,
$0.01 Par Value Per Share: 2,139,750 Shares
Authorized, Issued and Outstanding as of March 31,		53,493,750		53,493,750
2014 and September 30, 2013, respectively
Series B - 7.875% Cumulative Redeemable Preferred Stock,
$0.01 Par Value Per Share:  2,300,000 Shares Authorized,
Issued and Outstanding as of March 31, 2014 and		57,500,000		57,500,000
September 30, 2013, respectively
Common Stock – $0.01 Par Value Per Share: 67,700,000
Shares Authorized as of March 31, 2014 and September
30, 2013; 47,312,212 and 44,488,509 Shares Issued and		473,132		444,885
Outstanding as of March 31, 2014 and September 30,
2013, respectively
Excess Stock – $0.01 Par Value Per Share: 5,000,000 Shares
Authorized; No Shares Issued or Outstanding		-0-		-0-
Additional Paid-In Capital		237,925,410		222,487,068
Accumulated Other Comprehensive Income		3,249,497		1,989,268
Undistributed Income		-0-		-0-
Total Shareholders' Equity		352,641,789		335,914,971
TOTAL LIABILITIES & SHAREHOLDERS' EQUITY		$            697,525,431		$            617,240,866

 

 

Second Quarter FY 2014 Supplemental of Monmouth Real Estate Investment Corp. Page 3 of 20

 

Consolidated Statements of Income
(unaudited)
	Three Months Ended						Six Months Ended
	3/31/2014				3/31/2013		3/31/2014				3/31/2013
INCOME:
Rental Revenue	$14,085,029				$11,738,407		$27,655,751				$23,047,661
Reimbursement Revenue	2,260,276				1,567,802		4,350,709				3,086,038
Lease Termination Income	-0-				-0-		-0-				690,730
TOTAL INCOME	16,345,305				13,306,209		32,006,460				26,824,429
EXPENSES:
Real Estate Taxes	1,771,802				1,117,948		3,628,857				2,281,462
Operating Expenses	1,129,543				967,176		1,848,980				1,493,800
General & Administrative Expenses	1,328,256				944,352		2,448,719				2,239,408
Acquisition Costs	-0-				-0-		462,864				385,862
Depreciation	3,975,112				3,268,393		7,788,358				6,389,457
Amortization of Lease Costs and Intangible Assets	451,459				477,852		894,685				970,716
TOTAL EXPENSES	8,656,172				6,775,721		17,072,463				13,760,705
OTHER INCOME (EXPENSE):
Interest and Dividend Income	996,794				1,004,964		1,935,562				2,128,025
Gain on Sale of Securities Transactions, net	425,349				3,802,704		576,074				5,913,472
Interest Expense	(4,185,372)				(3,842,634)		(8,060,513)				(7,718,306)
Amortization of Financing Costs	(168,662)				(152,095)		(337,680)				(332,885)
TOTAL OTHER INCOME (EXPENSE)	(2,931,891)				812,939		(5,886,557)				(9,694)
INCOME FROM CONTINUING OPERATIONS	4,757,242				7,343,427		9,047,440				13,054,030
INCOME FROM DISCONTINUED OPERATIONS	-0-				300,484		-0-				296,458
NET INCOME	4,757,242				7,643,911		9,047,440				13,350,488
Less:  Preferred Dividend	2,151,758				2,151,758		4,303,516				4,303,516
NET INCOME ATTRIBUTABLE TO
COMMON SHAREHOLDERS	$2,605,484				$5,492,153		$4,743,924				$9,046,972

 

 

 

 

 

 

 

Second Quarter FY 2014 Supplemental of Monmouth Real Estate Investment Corp. Page 4 of 20

 

FFO, Core FFO, AFFO, NOI and EBITDA Reconciliations
(unaudited)
		Three Months Ended					Six Months Ended
		3/31/2014			3/31/2013		3/31/2014		3/31/2013
Revenues
	Rental Revenue	$14,085,029			$11,738,407		$27,655,751		$23,047,661
	Reimbursement Revenue	2,260,276			1,567,802		4,350,709		3,086,038
	Total Rental and Reimbursement Revenue	16,345,305			13,306,209		32,006,460		26,133,699
Expenses
	Real Estate Taxes	1,771,802			1,117,948		3,628,857		2,281,462
	Operating Expenses	1,129,543			967,176		1,848,980		1,493,800
	Total Expenses	2,901,345			2,085,124		5,477,837		3,775,262
Net Operating Income - NOI		13,443,960			11,221,085		26,528,623		22,358,437
	Lease Termination Income	-0-			-0-		-0-		690,730
	Interest and Dividend Income	996,794			1,004,964		1,935,562		2,128,025
	Net Operating Loss from Discontinued Operations	-0-			(45,310)		-0-		(36,493)
	General & Administrative Expenses	(1,328,256)			(944,352)		(2,448,719)		(2,239,408)
EBITDA		13,112,498			11,236,387		26,015,466		22,901,291
	Interest Expense	(4,185,372)			(3,842,634)		(8,060,513)		(7,718,306)
	Gain on Sale of Securities Transactions, net	425,349			3,802,704		576,074		5,913,472
	Acquisition Costs	-0-			-0-		(462,864)		(385,862)
	Preferred Dividend	(2,151,758)			(2,151,758)		(4,303,516)		(4,303,516)
	Amortization of Financing and Lease Costs	(281,726)			(245,244)		(561,221)		(534,195)
Funds From Operations - FFO		6,918,991			8,799,455		13,203,426		15,872,884
	Depreciation Expense (including Discontinued Operations)	(3,975,112)			(3,268,393)		(7,788,358)		(6,402,300)
	Gain on Sale of Investment Property	-0-			345,794		-0-		345,794
	Amortization of Intangible Assets	(338,395)			(384,703)		(671,144)		(769,406)
Net Income Attributable to Common Shareholders		2,605,484			5,492,153		4,743,924		9,046,972
Funds From Operations - FFO		6,918,991			8,799,455		13,203,426		15,872,884
	Acquisition Costs	-0-			-0-		462,864		385,862
Core Funds From Operations - Core FFO		6,918,991			8,799,455		13,666,290		16,258,746
	Lease Termination Income	-0-			-0-		-0-		(690,730)
	Gain on Sale of Securities Transactions, net	(425,349)			(3,802,704)		(576,074)		(5,913,472)
	Stock Compensation Expense	85,137			81,562		171,634		161,089
	Amortization of Financing and Lease Costs	281,726			245,244		561,221		534,195
	Straight-lined Rents	(183,635)			(575,202)		(374,696)		(723,195)
	Recurring Capital Expenditures	(212,437)			(140,164)		(292,370)		(176,804)
Adjusted Funds From Operations - AFFO		6,464,433			4,608,191		13,156,005		9,449,829
EBITDA		13,112,498			11,236,387		26,015,466		22,901,291
	Lease Termination Income	-0-			-0-		-0-		(690,730)
	Interest Expense	(4,185,372)			(3,842,634)		(8,060,513)		(7,718,306)
	Preferred Dividend	(2,151,758)			(2,151,758)		(4,303,516)		(4,303,516)
	Stock Compensation Expense	85,137			81,562		171,634		161,089
	Straight-lined Rents	(183,635)			(575,202)		(374,696)		(723,195)
	Recurring Capital Expenditures	(212,437)			(140,164)		(292,370)		(176,804)
Adjusted Funds From Operations - AFFO		$6,464,433			$4,608,191		$13,156,005		$9,449,829

Second Quarter FY 2014 Supplemental of Monmouth Real Estate Investment Corp. Page 5 of 20

Financial Highlights
(unaudited)
		Three Months Ended						Six Months Ended
		3/31/2014			3/31/2013			3/31/2014			3/31/2013
Weighted Average Common Shares Outstanding
	Basic	46,739,035			41,770,762			45,982,937			41,331,860
	Diluted	46,845,472			41,989,449			46,080,826			41,545,266
Net Operating Income - NOI		$13,443,960			$  11,221,085			$26,528,623			$  22,358,437
	Basic	$0.29			$0.27			$0.58			$0.54
	Diluted	0.29			0.27			0.58			0.54
Net Income Attributable to Common Shareholders		$2,605,484			$5,492,153			$4,743,924			$9,046,972
	Basic	$0.06			$0.13			$0.10			$0.22
	Diluted	0.06			0.13			0.10			0.22
Funds From Operations - FFO		$6,918,991			$8,799,455			$13,203,426			$15,872,884
	Basic	$0.15			$0.21			$0.29			$0.38
	Diluted	0.15			0.21			0.29			0.38
Core Funds From Operations - Core FFO		$6,918,991			$8,799,455			$13,666,290			$16,258,746
	Basic	$0.15			$0.21			$0.30			$0.39
	Diluted	0.15			0.21			0.30			0.39
Core FFO Excluding Gains on Securities Transactions, net		$6,493,642			$4,996,751			$13,090,216			$10,345,274
	Basic	$0.14			$0.12			$0.28			$0.25
	Diluted	0.14			0.12			0.28			0.25
Core FFO Excluding Lease Termination Income, net		$6,918,991			$8,799,455			$13,666,290			$15,568,016
	Basic	$0.15			$0.21			$0.30			$0.38
	Diluted	0.15			0.21			0.30			0.37
Adjusted Funds From Operations - AFFO		$6,464,433			$4,608,191			$13,156,005			$9,449,829
	Basic	$0.14			$0.11			$0.29			$0.23
	Diluted	0.14			0.11			0.29			0.23
Dividends Declared per Common Share		$0.15			$0.15			$0.30			$0.30

 

 

 

 

Second Quarter FY 2014 Supplemental of Monmouth Real Estate Investment Corp. Page 6 of 20

 

 

Consolidated Statements of Cash Flows
(unaudited)
		Six Months Ended
		3/31/2014		3/31/2013
CASH FLOWS FROM OPERATING ACTIVITIES
Net Income		$9,047,440		$13,350,488
Noncash Items Included in Net Income:
Depreciation and Amortization		9,020,723		7,713,152
Stock Compensation Expense		171,634		161,089
Gain on Sale of Securities Transactions, net		(576,074)		(5,913,472)
Gain on Sale of Real Estate Investments		-0-		(345,794)
Changes In:
Tenant, Deferred Rent and Other Receivables		(113,398)		(2,626,339)
Prepaid Expenses		(2,238,111)		(2,019,862)
Other Assets and Lease Costs		(340,780)		(948,543)
Accounts Payable, Accrued Expenses and Other Liabilities		2,966,468		1,298,984
NET CASH PROVIDED BY OPERATING ACTIVITIES		17,937,902		10,669,703
CASH FLOWS FROM INVESTING ACTIVITIES
Purchase of Real Estate and Intangible Assets, net of deposits		(73,860,759)		(42,363,385)
Capital and Land Site Improvements		(8,295,926)		(3,741,423)
Proceeds on Sale of Real Estate Investments		-0-		1,413,891
Return of Deposits on Real Estate		1,800,000		570,000
Deposits Paid on Acquisition of Real Estate		(700,000)		(1,350,000)
Proceeds from Sale of Securities Available for Sale		7,080,741		25,178,027
Purchase of Securities Available for Sale		(13,258,470)		(9,305,129)
Collections on Loans Receivable		7,770		11,221
NET CASH USED IN INVESTING ACTIVITIES		(87,226,644)		(29,586,798)
CASH FLOWS FROM FINANCING ACTIVITIES
Net Proceeds from Loans		25,231,597		12,000,000
Repurchase of Subordinated Convertible Debentures		-0-		(5,115,000)
Proceeds from Mortgages		48,905,000		35,000,000
Principal Payments on Mortgages		(12,309,941)		(21,591,284)
Financing Costs Paid on Debt		(474,594)		(519,521)
Net Distributions to Noncontrolling Interests		(12,442)		(40,266)
Proceeds from Issuance of Common Stock in the DRIP,
net of reinvestments		20,725,762		8,160,817
Preferred Dividends Paid		(4,303,516)		(4,303,516)
Common Dividends Paid, net of Reinvestments		(10,174,731)		(9,194,538)
NET CASH  PROVIDED BY FINANCING ACTIVITIES		67,587,135		14,396,692
NET DECREASE IN CASH AND CASH EQUIVALENTS		(1,701,607)		(4,520,403)
CASH AND CASH EQUIVALENTS - BEGINNING OF PERIOD		12,404,512		24,650,858
CASH AND CASH EQUIVALENTS - END OF PERIOD		$10,702,905		$20,130,455

 

 

 

 

Second Quarter FY 2014 Supplemental of Monmouth Real Estate Investment Corp. Page 7 of 20

 

 

Capital Structure and Leverage Ratios			As of		As of		As of
(unaudited)			03/31/2014		03/31/2013		9/30/2013
Mortgage Notes Payable			$286,688,441		$251,352,627		$250,093,382
Loans Payable			47,431,597		17,200,000		22,200,000
	Total Debt		334,120,038		268,552,627		272,293,382
Series A - 7.625% Cumul. Redeemable Preferred			53,493,750		53,493,750		53,493,750
Series B - 7.875% Cumul. Redeemable Preferred			57,500,000		57,500,000		57,500,000
	Total Preferred Stock		110,993,750		110,993,750		110,993,750
Common Stock, Paid-in-Capital & Other			241,648,039		216,906,373		224,921,221
	Total Shareholders' Equity		352,641,789		327,900,123		335,914,971
	Total Book Capitalization		686,761,827		596,452,750		608,208,353
	Accumulated Depreciation		98,883,773		84,620,330		91,095,415
	Total Undepreciated Book Capitalization		$785,645,600		$681,073,080		$699,303,768
Shares Outstanding			47,313,212		42,205,458		44,488,509
Market Price Per Share			$9.54		$11.15		$9.07
Equity Market Capitalization			$451,368,042		$470,590,857		$403,510,777
Total Debt			334,120,038		268,552,627		272,293,382
Preferred			110,993,750		110,993,750		110,993,750
	Total Market Capitalization		$896,481,830		$850,137,234		$786,797,909
Total Debt			$334,120,038		$268,552,627		$272,293,382
less: Cash and Cash Equivalents			10,702,905		20,130,455		12,404,512
	Net Debt		$323,417,133		$248,422,172		$259,888,870
Net Debt / Undepreciated Book Capitalization			41.2%		36.5%		37.2%
Net Debt / Total Market Capitalization			36.1%		29.2%		33.0%
Net Debt + Preferred / Total Market Capitalization			48.5%		42.3%		47.1%

 

 

Second Quarter FY 2014 Supplemental of Monmouth Real Estate Investment Corp. Page 8 of 20

Capital Structure and Leverage Ratios (continued)
(unaudited)
											Fiscal Year
			Three Months Ended				Six Months Ended				Ended
			03/31/2014		03/31/2013		03/31/2014		03/31/2013		9/30/2013
Net Income			$4,757,242		$7,643,911		$9,047,440		$13,350,488		$21,395,246
plus: Depreciation & Amortization (includes Discontinued Operations)			4,595,233		3,898,340		9,020,723		7,705,901		15,542,937
plus: Interest Expense			4,185,372		3,842,634		8,060,513		7,718,306		14,956,954
plus: Acquisition Costs			-0-		-0-		462,864		385,862		514,699
less: Gain on Sale of Securities Transactions, net			(425,349)		(3,802,704)		(576,074)		(5,913,472)		(7,133,252)
less: Gain on Sale of Investment Property			-0-		(345,794)		-0-		(345,794)		(345,794)
	EBITDA		$13,112,498		$11,236,387		$26,015,466		$22,901,291		$44,930,790
Interest Expense			$4,185,372		$3,842,634		$8,060,513		$7,718,306		$14,956,954
Preferred Dividends Paid			2,151,758		2,151,758		4,303,516		4,303,516		8,607,032
	Total Fixed Charges		$6,337,130		$5,994,392		$12,364,029		$12,021,822		$23,563,986
Interest Coverage			3.1 x		2.9 x		3.2 x		3.0 x		3.0 x
Fixed Charge Coverage			2.1 x		1.9 x		2.1 x		1.9 x		1.9 x
Net Debt			$323,417,133		$248,422,172		$323,417,133		$248,422,172		$259,888,870
Annualized EBITDA			52,449,992		44,945,548		52,030,932		45,802,582		44,930,790
Net Debt / EBITDA			6.2 x		5.5 x		6.2 x		5.4 x		5.8 x

 

 

 

 

 

 

 

 

Second Quarter FY 2014 Supplemental of Monmouth Real Estate Investment Corp. Page 9 of 20

 

 

				Loans			% of
Fiscal Year Ended		Mortgages		Payable (1)		Total (1)	Total
2014		$11,451,321		$-0-		$11,451,321	3.5%
2015		24,858,907		1,012,039		25,870,946	7.8%
2016		36,448,658		41,270,163	(2)	77,718,821	23.4%
2017		44,218,585		2,917,798		47,136,383	14.2%
2018		34,372,026		-0-		34,372,026	10.4%
Thereafter		135,338,944		-0-		135,338,944	40.7%
Total as of 03/31/2014		$286,688,441	$45,200,000			$331,888,441	100.0%

 

 

Notes:

(1)

Excludes $2.2 million of margin loans which are due upon demand.

(2)

Includes a $40 million Line of Credit due June 2016, which has a one year extension option.

 

Second Quarter FY 2014 Supplemental of Monmouth Real Estate Investment Corp. Page 10 of 20

Property Table by Tenant
(unaudited)					Occupied
		Property		Square	Square	% of Total	Annual	% of Total	Rent Per		Undepreciated		Mortgage
Tenant		Count		Footage	Footage	Sq. Ft.	Rent	Ann. Rent	Sq. Ft. Occup.		Cost		Balance
FedEx Ground Package System, Inc.		27		3,026,716	3,026,716	28.3%	$23,048,000	40.9%	$7.61		$281,039,624		$113,985,019
FedEx Corporation		14		973,413	973,413	9.1%	5,408,000	9.6%	5.56		71,012,746		22,468,533
FedEx Supply Chain Services, Inc.		1		449,900	449,900	4.2%	1,317,000	2.4%	2.93		14,620,887		8,483,341
Total FedEx		42		4,450,029	4,450,029	41.6%	29,773,000	52.9%	6.69		366,673,257		144,936,893
Milwaukee Electric Tool Corp.		1		615,305	615,305	5.7%	1,978,000	3.5%	3.21		27,368,816		15,966,518
Ralcorp Holdings, Inc.		1		558,600	558,600	5.2%	2,135,000	3.8%	3.82		26,633,125		18,276,302
Woodstream Corporation		1		388,671	256,000	2.4%	896,000	1.6%	3.50		13,128,850		1,808,850
CBOCS Distribution, Inc.		1		381,240	381,240	3.6%	1,393,000	2.5%	3.65		14,215,126		8,124,904
Best Buy Warehousing Logistics, Inc.		1		368,060	368,060	3.4%	1,611,000	2.9%	4.38		19,600,000		11,709,972
Coca Cola / Western Container		2		323,358	323,358	3.0%	1,584,000	2.8%	4.90		18,852,354		9,012,869
Norton McNaughton of Squire, Inc.		1		306,000	306,000	2.9%	1,389,000	2.5%	4.54		12,972,474		6,396,839
International Paper		1		280,000	280,000	2.6%	1,304,000	2.3%	4.66		18,085,492		12,335,764
United Technologies Corporation		2		244,317	244,317	2.3%	1,878,000	3.3%	7.69		22,481,005		9,578,575
Anda Distribution		1		234,660	234,660	2.2%	1,186,000	2.1%	5.05		14,550,000		10,081,878
Caterpillar Logistics Services, Inc.		1		218,120	218,120	2.0%	1,169,000	2.1%	5.36		14,868,857		7,651,660
Anheuser-Busch, Inc.		1		184,800	184,800	1.7%	785,000	1.4%	4.25		12,386,675		2,499,370
Carlisle Tire & Wheel Company		1		179,280	179,280	1.7%	761,000	1.4%	4.24		7,025,401		1,574,836
Home Depot USA, Inc.		1		171,200	171,200	1.6%	896,000	1.6%	5.23		11,298,367		-0-
Kellogg Sales Company		3		170,279	170,279	1.6%	1,035,000	1.8%	6.08		11,884,916		3,121,491
Maidenform, Inc.		1		148,000	148,000	1.4%	278,000	0.5%	3.76		4,870,749		-0-
NF&M International		1	(B)	112,542	112,542	1.1%	342,000	0.6%	3.04		1,879,515		-0-
Pittsburgh Glass Works		1		102,135	102,135	1.0%	427,000	0.8%	4.18		3,907,712		-0-
Holland 1916 Inc.		1		95,898	95,898	0.9%	333,000	0.6%	3.47		7,371,118		-0-
National Oilwell Varco		1		91,295	91,295	0.8%	737,000	1.3%	8.07		8,080,828		4,092,215
Joseph T. Ryerson		1		89,052	89,052	0.8%	506,000	0.9%	5.68		6,867,596		1,525,624
DHL		1		83,000	83,000	0.8%	662,000	1.2%	7.98		6,815,697		3,236,323
Datatel Resources		1	(B)	80,856	80,856	0.8%	222,000	0.4%	2.75		1,350,341		-0-
Sherwin-Williams Company		2		78,887	78,887	0.7%	633,000	1.1%	8.02		7,169,755		-0-
RGH Enterprises, Inc.		1		75,000	75,000	0.7%	584,000	1.0%	7.79		5,525,600		4,026,990
Tampa Bay Grand Prix		1		68,385	68,385	0.6%	281,000	0.5%	4.11		5,651,066		2,328,157
Various Tenants at Retail Shopping Center		1		64,138	31,138	0.3%	209,000	0.4%	6.71		1,517,288		-0-
Macy’s East, Inc.		1		59,400	59,400	0.6%	226,000	0.4%	7.61		4,838,592		2,251,613
Siemens Real Estate		1		51,130	51,130	0.5%	462,000	0.8%	9.04		4,416,000		2,840,186
The American Bottling Company		1		46,240	46,240	0.4%	253,000	0.4%	5.47		3,700,000		2,214,932
Keystone Automotive		1		36,270	36,270	0.3%	137,000	0.2%	3.78		2,161,895		-0-
Graybar Electric Company		1		26,340	26,340	0.2%	109,000	0.2%	4.14		1,850,795		-0-
Tenant Total as of 03/31/2014		78	(B)	10,382,487	10,216,816	95.4%	$56,174,000	99.8%	$5.55		$689,999,262		$285,592,761
Vacant		3		325,932	-0-	4.6%	133,000 (C)	0.2%	-0-		17,571,809		1,095,680
Total as of 03/31/2014		81		10,708,419	10,216,816	100.0%	$56,307,000	100.0%	$5.55		$707,571,071	(A)	$286,688,441

 

(A)

Does not include $86,653 of vacant land and corporate office leasehold improvements not associated with a specific tenant.

(B)

NF&M International and Datatel Resources are located at one property and therefore are counted as one property in the property count total.

(C)

Includes rental revenue from properties during Fiscal 2014 prior to becoming vacant.

 

 

 

Second Quarter FY 2014 Supplemental of Monmouth Real Estate Investment Corp. Page 11 of 20

 

Property Table by State
(unaudited)
		Property	Square	Occupied Square	% of Total	Annual	% of Total	Rent Per			Undepreciated		Mortgage
State		Count	Footage	Footage	Sq. Ft.	Rent	Ann. Rent	Sq. Ft. Occup.			Cost		Balance
Mississippi		4	912,305	912,305	8.5%	$3,394,000	6.0%	$3.72			$45,324,956		$26,048,396
Tennessee		3	891,777	891,777	8.3%	3,021,000	5.4%	3.39			33,807,174		18,694,092
Texas		7	796,583	796,583	7.4%	6,210,000	11.0%	7.80			73,270,777		40,618,351
Florida		9	784,677	784,677	7.3%	5,105,000	9.1%	6.51			70,394,357		30,141,840
Illinois		7	720,439	720,439	6.7%	4,721,000	8.4%	6.55			61,227,685		8,178,193
Ohio		5	684,762	684,762	6.4%	4,122,000	7.3%	6.02			50,906,359		24,173,688
Missouri		4	651,771	519,100	6.1%	2,006,000	3.6%	3.86			29,156,054		4,385,730
South Carolina		3	574,715	574,715	5.4%	3,478,000	6.2%	6.05			36,000,434		11,333,727
Kentucky		1	558,600	558,600	5.2%	2,135,000	3.8%	3.82			26,633,125		18,276,302
Kansas		3	499,280	499,280	4.7%	2,397,000	4.3%	4.80			28,790,736		15,816,885
Michigan		3	489,571	489,571	4.6%	3,472,000	6.2%	7.09			41,048,303		21,226,657
North Carolina		3	414,507	148,000	3.9%	411,000	0.7%	3.76			17,285,432		1,095,680
Virginia		5	407,265	407,265	3.8%	2,595,000	4.6%	6.37			33,825,364		10,572,592
Pennsylvania		2	315,920	315,920	3.0%	1,215,000	2.2%	3.85			12,219,856		4,890,058
Georgia		3	307,662	307,662	2.9%	1,767,000	3.1%	5.74			22,124,662		8,906,389
Arizona		1	283,358	283,358	2.6%	1,252,000	2.2%	4.42			15,172,511		7,106,584
Wisconsin		2	238,666	238,666	2.2%	1,369,000	2.4%	5.74			15,943,672		4,942,414
New York		3	230,381	230,381	2.2%	1,903,000	3.4%	8.26			20,177,142		5,073,575
Oklahoma		2	166,152	166,152	1.6%	966,000	1.7%	5.81			13,304,165		7,734,443
Maryland		1	144,523	144,523	1.3%	1,426,000	2.5%	9.87			14,386,784		6,486,359
Colorado		2	138,235	138,235	1.3%	1,208,000	2.1%	8.74			13,549,167		3,744,795
New Jersey		2	123,538	90,538	1.2%	435,000	0.8%	7.30			6,355,880		2,251,613
Minnesota		2	119,823	60,398	1.1%	372,000	0.7%	6.16			10,377,126		3,180,536
Nebraska		1	89,115	89,115	0.8%	446,000	0.8%	5.00			5,929,890		-0-
Alabama		1	73,712	73,712	0.7%	412,000	0.7%	5.59			4,751,741		1,264,931
Connecticut		1	54,812	54,812	0.5%	332,000	0.6%	6.06			3,445,824		544,611
Iowa		1	36,270	36,270	0.3%	137,000	0.2%	3.78			2,161,895		-0-
Total as of 03/31/2014		81	10,708,419	10,216,816	100.0%	$56,307,000	100.0%	$5.55			$707,571,071	(A)	$286,688,441

 

(A)

Does not include $86,653 of vacant land and corporate office leasehold improvements not associated with a specific tenant.

 

 

 

 

Second Quarter FY 2014 Supplemental of Monmouth Real Estate Investment Corp. Page 12 of 20

Lease Expirations
(unaudited)
		Property		Square	% of Total	Annual	% of Total	Rent Per Sq.	Lease Exp.		Undepreciated		Mortgage
Fiscal Year		Count		Footage	Sq. Ft.	Rent	Ann. Rent	Ft. Occup.	Term in Years		Cost		Balance
2014		2		207,400	1.9%	504,000	0.9%	4.86	-0-		$9,709,340		$2,251,613
2015		5		694,802	6.5%	3,415,000	6.1%	4.92	1.2		36,617,646		8,973,719
2016		3	(B)	325,656	3.0%	1,315,000	2.3%	4.04	2.0		18,478,021		2,499,370
2017		15		1,844,298	17.4%	10,158,000	18.0%	5.93	3.1		130,000,807		39,516,594
2018		11	(B)	1,011,363	9.4%	6,429,000	11.4%	6.36	4.2		72,024,141		24,867,256
2019		8		1,179,228	11.0%	6,687,000	11.9%	5.67	5.1		80,885,533		32,359,605
2020		1		68,385	0.6%	281,000	0.5%	4.11	6.5		5,651,066		2,328,157
2021		4		271,768	2.5%	1,755,000	3.1%	6.46	7.4		20,366,438		11,363,416
2022		9		1,249,738	11.7%	7,256,000	12.9%	5.81	8.1		86,175,089		51,001,566
2023		12		2,031,705	19.0%	10,809,000	19.2%	5.32	9.2		141,193,169		74,716,559
2024		7		875,406	8.2%	5,221,000	9.3%	5.96	10.0		60,747,599		17,438,604
2034		1		558,600	5.2%	2,135,000	3.8%	3.82	19.6		26,633,125		18,276,302
Various (C)		1		64,138	0.6%	209,000	0.4%	6.71	-0-		1,517,288		-0-
Vacant		3		325,932	3.0%	133,000	0.2%	-0-	-0-		17,571,809		1,095,680
Total as of 03/31/2014		81	(B)	10,708,419	100.0%	$56,307,000	100.0%	$5.55	6.8		$707,571,071	(A)	$286,688,441

 

 

 

(A) Does not include $86,653 of vacant land and corporate office leasehold improvements not associated with a specific tenant.

(B) Included in 2016 is Datatel Resources and included in 2018 is NF&M International which both occupy one property and therefore are counted as one property in the property count total.

(C) Various tenants at retail shopping center in Somerset, NJ.

 

 

 

 

 

 

 

Second Quarter FY 2014 Supplemental of Monmouth Real Estate Investment Corp. Page 13 of 20

 

Recent Acquisitions During Fiscal 2014
(unaudited)
					Fiscal Year	Square	Annual	Rent Per	Lease		Undepreciated		Initial Mortgage
No	Tenant	City (MSA)	State		Acquisition	Footage	Rent	Sq. Ft. Occup.	Expiration		Cost		Balance
1	Dr Pepper Snapple	Tulsa	OK		2014	46,260	$ 253,000	$5.47	2/28/2024		$3,700,000		$2,250,000
2	Ralcorp Holdings, Inc./ConAgra	Buckner (Louisville)	KY		2014	558,600	2,133,000	3.82	10/31/2033		26,633,125		18,475,000
3	International Paper	Edwardsville (Kansas City)	KS		2014	280,000	1,304,000	4.66	8/31/2023		18,085,492		12,550,000
4	FedEx Ground	Altoona	PA		2014	122,522	651,000	5.31	8/31/2023		8,990,000		5,000,000
5	FedEx Ground	Spring (Houston)	TX		2014	114,923	1,146,000	9.97	8/31/2023		15,281,318		10,630,000
	As of 03/31/2014					1,122,305	$5,487,000	$4.89			$72,689,935		$48,905,000

 

 

 

 

 

 

 

 

 

 

 

Second Quarter FY 2014 Supplemental of Monmouth Real Estate Investment Corp. Page 14 of 20

 

Property Table
(unaudited)									Rent Per
					Fiscal Year		Square	Annual	Sq. Ft.	Lease Exp.	Undepreciated	Mortgage
No	Tenant		City (MSA)	State	Acquisition	Occup.	Footage	Rent	Occup.	Term in Years	Cost	Balance
1	Milwaukee Electric Tool Corp.		Olive Branch (Memphis, TN)	MS	2013	100.0%	615,305	$1,978,000	$3.21	9.1	$27,368,816	$15,966,518
2	Ralcorp Holdings, Inc./ConAgra		Buckner (Louisville)	KY	2014	100.0%	558,600	2,135,000	3.82	19.6	26,633,125	18,276,302
3	FedEx Supply Chain Services, Inc.		Memphis	TN	2010	100.0%	449,900	1,317,000	2.93	5.2	14,620,887	8,483,341
4	Woodstream Corporation		St. Joseph	MO	2001	65.9%	388,671	896,000	3.50	3.5	13,128,850	1,808,850
5	CBOCS Distribution, Inc.		Lebanon (Nashville)	TN	2011	100.0%	381,240	1,393,000	3.65	10.3	14,215,126	8,124,904
6	Best Buy Warehousing Logistics, Inc.		Streetsboro (Cleveland)	OH	2012	100.0%	368,060	1,611,000	4.38	7.8	19,600,000	11,709,972
7	Norton McNaughton of Squire, Inc.		Hanahan (Charleston)	SC	2005	100.0%	306,000	1,389,000	4.54	1.1	12,972,474	6,396,839
8	Western Container Corp		Tolleson (Phoenix)	AZ	2003	100.0%	283,358	1,252,000	4.42	3.1	15,172,511	7,106,584
9	International Paper		Edwardsville	KS	2014	100.0%	280,000	1,304,000	4.66	9.4	18,085,492	12,335,764
10	FedEx Ground Package System, Inc.		Orion	MI	2007	100.0%	245,633	1,908,000	7.77	9.3	22,864,690	9,807,753
11	Anda Distribution		Olive Branch (Memphis, TN)	MS	2012	100.0%	234,660	1,186,000	5.05	8.3	14,550,000	10,081,878
12	Caterpillar Logistics Services, Inc.		Griffin (Atlanta)	GA	2006	100.0%	218,120	1,169,000	5.36	2.7	14,868,857	7,651,660
13	NF&M International	(B)	Monaca (Pittsburgh)	PA	1988	100.0%	112,542	342,000	3.04	4.5	1,879,515	-0-
	Datatel Resources	(B)	Monaca (Pittsburgh)	PA	1988	100.0%	80,856	222,000	2.75	1.7	1,350,341	-0-
14	Anheuser-Busch, Inc.		Granite City (St. Louis)	IL	2001	100.0%	184,800	785,000	4.25	2.2	12,386,675	2,499,370
15	United Technologies Corporation		Carrollton (Dallas)	TX	2002	100.0%	184,317	1,570,000	8.52	4.8	17,740,000	9,578,575
16	Carlisle Tire & Wheel Company		Edwardsville (Kansas City)	KS	2003	100.0%	179,280	761,000	4.24	4.2	7,025,401	1,574,836
17	FedEx Ground Package System, Inc.		Ft. Mill (Charlotte, NC)	SC	2010	100.0%	176,939	1,414,000	7.99	9.6	15,413,307	3,211,945
18	FedEx Ground Package System, Inc.		Livonia (Detroit)	MI	2013	100.0%	172,005	1,194,000	6.94	8.0	13,700,000	8,871,059
19	Home Depot USA, Inc.		Montgomery (Chicago)	IL	2004	100.0%	171,200	896,000	5.23	1.2	11,298,367	-0-
20	FedEx Ground Package System, Inc.		Tampa	FL	2001	100.0%	170,779	1,412,000	8.27	4.8	17,755,625	8,260,051
21	Vacant		Monroe	NC	2001	-	160,000	-0-	na	-0-	5,500,697	1,095,680
22	Maidenform, Inc.		Fayetteville	NC	1997	100.0%	148,000	278,000	3.76	-0-	4,870,749	-0-
23	FedEx Ground Package System, Inc.		Beltsville (Washington, DC)	MD	2001	100.0%	144,523	1,426,000	9.87	4.3	14,386,784	6,486,359
24	FedEx Ground Package System, Inc.		El Paso	TX	2006	100.0%	143,619	1,045,000	7.28	9.5	11,232,648	4,103,181
25	FedEx Ground Package System, Inc.		Cudahy (Milwaukee)	WI	2001	100.0%	139,564	901,000	6.46	3.3	9,373,672	973,541
26	FedEx Ground Package System, Inc.		Wheeling (Chicago)	IL	2003	100.0%	123,000	1,386,000	11.27	3.2	18,537,652	4,153,199
27	FedEx Ground Package System, Inc.		Altoona	PA	2014	100.0%	122,522	651,000	5.31	9.4	8,990,000	4,890,058
28	FedEx Ground Package System, Inc.		Oklahoma City	OK	2012	100.0%	119,912	713,000	5.95	8.0	9,604,165	5,519,511
29	FedEx Ground Package System, Inc.		Spring (Houston)	TX	2014	100.0%	114,923	1,146,000	9.97	9.4	15,281,318	10,500,084
30	FedEx Ground Package System, Inc.		Edinburg	TX	2011	100.0%	113,582	598,000	5.26	7.4	7,438,483	4,162,560
31	FedEx Corporation		Mechanicsville (Richmond)	VA	2001	100.0%	112,799	541,000	4.80	9.1	7,724,625	952,732
32	FedEx Corporation		Orlando	FL	2008	100.0%	110,638	666,000	6.02	3.7	8,541,237	4,886,563
33	Vacant		Winston-Salem	NC	2002	-	106,507	133,000	na	-0-	6,913,986	-0-
34	FedEx Ground Package System, Inc.		Cheektowaga (Buffalo)	NY	2000	100.0%	104,981	966,000	9.20	5.4	10,960,823	1,046,585
35	FedEx Ground Package System, Inc.		West Chester Twp. (Cincinnati)	OH	1999	100.0%	103,818	520,000	5.01	9.4	5,728,647	2,627,523
36	FedEx Ground Package System, Inc.		Roanoke	VA	2013	100.0%	103,402	755,000	7.30	9.1	10,200,000	6,383,537
37	FedEx Ground Package System. Inc.		Waco	TX	2012	100.0%	102,594	659,000	6.42	8.2	8,733,000	5,435,010
38	Pittsburgh Glass Works		O' Fallon	MO	1994	100.0%	102,135	427,000	4.18	1.2	3,907,712	-0-
39	FedEx Ground Package System. Inc.		Green Bay	WI	2013	100.0%	99,102	468,000	4.72	9.2	6,570,000	3,968,873
40	Holland 1916 Inc.		Liberty (Kansas City)	MO	1998	100.0%	95,898	333,000	3.47	5.3	7,371,118	-0-
41	FedEx Corporation		Jacksonville	FL	1999	100.0%	95,883	518,000	5.40	5.2	6,170,285	2,150,867
42	FedEx Corporation		Tampa	FL	2006	100.0%	95,662	603,000	6.30	3.5	7,565,717	4,457,008
43	FedEx Ground Package System, Inc.		Hanahan (Charleston)	SC	2005	100.0%	91,776	675,000	7.35	4.3	7,614,653	1,724,943
44	National Oilwell Varco		Houston	TX	2010	100.0%	91,295	737,000	8.07	8.5	8,080,828	4,092,215
45	FedEx Corporation		Omaha	NE	1999	100.0%	89,115	446,000	5.00	9.6	5,929,890	-0-
46	FedEx Ground Package System, Inc.		Cocoa	FL	2008	100.0%	89,101	739,000	8.29	2.6	13,641,819	5,780,707
47	Joseph T. Ryerson		Elgin (Chicago)	IL	2002	100.0%	89,052	506,000	5.68	2.8	6,867,596	1,525,624

Second Quarter FY 2014 Supplemental of Monmouth Real Estate Investment Corp. Page 15 of 20

 

Property Table									Rent
(unaudited)									Per
					Fiscal Year		Square	Annual	Sq. Ft.	Lease Exp.	Undepreciated	Mortgage
No	Tenant		City (MSA)	State	Acquisition	Occup.	Footage	Rent	Occup.	Term in Years	Cost	Balance
48	FedEx Ground Package System, Inc.		Ft. Myers	FL	2003	100.0%	87,500	427,000	4.88	2.6	5,004,128	-0-
49	DHL		Roanoke	VA	2007	100.0%	83,000	662,000	7.98	2.7	6,815,697	3,236,323
50	FedEx Corporation		Bedford Heights (Cleveland)	OH	2007	100.0%	82,269	408,000	4.96	4.4	6,767,782	3,109,184
51	FedEx Ground Package System, Inc.		Richfield (Cleveland)	OH	2006	100.0%	79,485	1,121,000	14.10	10.5	14,393,930	3,886,823
52	RGH Enterprises, Inc.		Halfmoon (Albany)	NY	2012	100.0%	75,000	584,000	7.79	7.7	5,525,600	4,026,990
53	FedEx Ground Package System, Inc.		Huntsville	AL	2005	100.0%	73,712	412,000	5.59	8.4	4,751,741	1,264,931
54	FedEx Corporation		Schaumburg (Chicago)	IL	1997	100.0%	73,500	515,000	7.01	3.0	4,967,639	-0-
55	FedEx Corporation		Romulus (Detroit)	MI	1998	100.0%	71,933	370,000	5.14	7.2	4,483,613	2,547,845
56	FedEx Ground Package System, Inc.		Denver	CO	2005	100.0%	69,865	564,000	8.07	4.3	6,354,051	1,764,106
57	Tampa Bay Grand Prix		Tampa	FL	2005	100.0%	68,385	281,000	4.11	6.5	5,651,066	2,328,157
58	FedEx Ground Package System, Inc.		Colorado Springs	CO	2006	100.0%	68,370	644,000	9.42	4.5	7,195,115	1,980,689
59	Sherwin-Williams Company		Rockford	IL	2011	100.0%	66,387	473,000	7.12	9.8	5,540,000	-0-
60	Kellogg Sales Company		Kansas City	MO	2007	100.0%	65,067	350,000	5.38	1.3	4,748,374	2,576,880
61	Various Tenants at Retail Shopping Center		Somerset	NJ	1970	48.5%	64,138	209,000	6.71	-0-	1,517,288	-0-
62	FedEx Corporation		Chattanooga	TN	2007	100.0%	60,637	311,000	5.13	3.6	4,971,161	2,085,847
63	FedEx Ground Package System, Inc.		Stewartsville (Rochester)	MN	2013	100.0%	60,398	372,000	6.16	9.2	5,220,000	3,180,536
64	United Technologies Corporation		Richmond	VA	2004	100.0%	60,000	308,000	5.13	2.2	4,741,005	-0-
65	Vacant		White Bear Lake (Minneapolis/St. Paul)	MN	2001	-	59,425	-0-	na	-0-	5,157,126	-0-
66	Macy’s East, Inc.		Carlstadt (New York, NY)	NJ	2001	100.0%	59,400	226,000	7.61	-0-	4,838,592	2,251,613
67	FedEx Ground Package System, Inc.		Augusta	GA	2005	100.0%	59,358	477,000	8.04	4.3	5,328,873	1,254,729
68	Kellogg Sales Company		Newington (Hartford)	CT	2001	100.0%	54,812	332,000	6.06	2.9	3,445,824	544,611
69	Siemens Real Estate		Lebanon (Cincinnati)	OH	2012	100.0%	51,130	462,000	9.04	5.1	4,416,000	2,840,186
70	Kellogg Sales Company		Orangeburg (New York)	NY	1993	100.0%	50,400	353,000	7.00	0.9	3,690,718	-0-
71	FedEx Corporation		Charlottesville	VA	1999	100.0%	48,064	329,000	6.85	3.4	4,344,037	-0-
72	Dr Pepper Snapple		Tulsa	OK	2014	100.0%	46,240	253,000	5.47	9.9	3,700,000	2,214,932
73	FedEx Ground Package System, Inc.		Corpus Christi	TX	2012	100.0%	46,253	455,000	9.84	7.4	4,764,500	2,746,726
74	Coca Cola Enterprises, Inc.		Topeka	KS	2009	100.0%	40,000	332,000	8.30	7.5	3,679,843	1,906,285
75	Keystone Automotive		Urbandale (Des Moines)	IA	1994	100.0%	36,270	137,000	3.78	3.0	2,161,895	-0-
76	FedEx Corporation		Richland (Jackson)	MS	1994	100.0%	36,000	121,000	3.36	10.0	1,555,345	-0-
77	FedEx Corporation		Punta Gorda	FL	2007	100.0%	34,624	304,000	8.78	3.3	4,104,915	2,278,487
78	FedEx Corporation		Lakeland	FL	2006	100.0%	32,105	155,000	4.83	3.7	1,959,568	-0-
79	FedEx Corporation		Augusta	GA	2006	100.0%	30,184	121,000	4.01	8.7	1,926,932	-0-
80	Graybar Electric Company		Ridgeland (Jackson)	MS	1993	100.0%	26,340	109,000	4.14	5.3	1,850,795	-0-
81	Sherwin-Williams Company		Burr Ridge (Chicago)	IL	1997	100.0%	12,500	160,000	12.80	7.6	1,629,755	-0-
	Total as of 03/31/2014					95.4%	10,708,419	$56,307,000	$5.55	6.8	$707,571,071	$286,688,441

 

(A) Does not include $86,653 of vacant land and corporate office leasehold improvements not associated with a specific tenant.

(B) Both tenants occupy one property.

 

Second Quarter FY 2014 Supplemental of Monmouth Real Estate Investment Corp. Page 16 of 20

Definitions
Investors and analysts following the real estate industry utilize funds from operations ("FFO"), core funds from operations ("Core FFO"), net operating income ("NOI"), earnings before interest, taxes, depreciation and amortization ("EBITDA") and adjusted funds from operations ("AFFO"), variously defined, as supplemental performance measures. While the Company believes net income available to common stockholders, as defined by accounting principles generally accepted in the United States of America (US GAAP), is the most appropriate measure, it considers NOI, EBITDA, FFO, Core FFO and AFFO, given their wide use by and relevance to investors and analysts, appropriate supplemental performance measures. FFO, reflecting the assumption that real estate asset values rise or fall with market conditions, principally adjusts for the effects of US GAAP depreciation and amortization of real estate assets. Core FFO reflects the same assumptions as FFO except that is also adjusts for the effects of acquisitions costs. NOI provides a measure of rental operations, and does not factor in depreciation and amortization and non-property specific expenses such as general and administrative expenses. EBITDA provides a tool to further evaluate the ability to incur and service debt and to fund dividends and other cash needs. AFFO provides a tool to further evaluate the ability to fund dividends. In addition, NOI, EBITDA, FFO, Core FFO and AFFO are commonly used in various ratios, pricing multiples, yields and returns and valuation of calculations used to measure financial position, performance and value.
As used herein, the Company calculates FFO, as defined by The National Association of Real Estate Investment Trusts (NAREIT), to be equal to net income (loss) applicable to common shareholders, as defined by US GAAP, excluding extraordinary items as defined under US GAAP, gains or losses from sales of previously depreciated real estate assets, impairment charges related to depreciable real estate assets, plus certain non-cash items such as real estate asset depreciation and amortization.  FFO includes gains and losses realized on securities investments.
Core FFO is calculated as FFO plus acquisition costs.
NOI is calculated as recurring revenues of the Company, less property expenses such as real estate taxes, repairs and maintenance, property management, utilities, insurance and other expenses.  NOI excludes realized gains (losses) on securities transactions.
EBITDA is calculated as NOI, less general and administrative expenses, less NOI from discontinued operations, plus interest and dividend income.  EBITDA excludes realized gains (losses) on securities transactions and interest expense.
AFFO is calculated as EBITDA, minus lease termination income, minus US GAAP interest expense, minus preferred stock dividends, minus recurring capital expenditures and straight-line rents, plus stock option expense.  AFFO excludes realized gains (losses) on securities transactions.
NOI, EBITDA, FFO, Core FFO and AFFO do not represent cash generated from operating activities in accordance with US GAAP and are not necessarily indicative of cash available to fund cash needs, including the repayment of principal on debt and payment of dividends and distributions. NOI, EBITDA, FFO Core FFO and AFFO should not be considered as substitutes for net income applicable to common shareholders (calculated in accordance with US GAAP) as a measure of results of operations or cash flows (calculated in accordance with US GAAP) as a measure of liquidity. NOI, EBITDA, FFO, Core FFO and AFFO as currently calculated by the Company may not be comparable to similarly titled, but variously calculated, measures of other REITs.

 

 

 

 

 

 

 

Second Quarter FY 2014 Supplemental of Monmouth Real Estate Investment Corp. Page 17 of 20

FOR IMMEDIATE RELEASE May 7, 2014

Contact: Susan Jordan

732-577-9996

 

MONMOUTH REAL ESTATE INVESTMENT CORPORATION

REPORTS RESULTS FOR THE SECOND QUARTER ENDED MARCH 31, 2014

 

FREEHOLD, NJ, May 7, 2014........ Monmouth Real Estate Investment Corporation (NYSE:MNR) reported Core Funds from Operations (Core FFO) of $6,919,000 or $0.15 per diluted share for the three months ended March 31, 2014 as compared to $8,799,000 or $0.21 per diluted share for the three months ended March 31, 2013. Excluding gains realized from the sale of securities during the quarter, Core FFO was $6,494,000 or $0.14 per diluted share for the three months ended March 31, 2014, as compared to $4,997,000 or $0.12 per diluted share for the three months ended March 31, 2013. Adjusted Funds from Operations (AFFO), which excludes gains or losses from the sale of securities, were $0.14 per diluted share for the three months ended March 31, 2014 compared to $0.11 per diluted share for March 31, 2013.

 

A summary of significant financial information for the three and six months ended March 31, 2014 and 2013 is as follows:

 

		Three Months Ended March 31,
		2014		2013
Rental Revenue	$	14,085,000	$	11,738,000
Reimbursement Revenue	$	2,260,000	$	1,568,000
Net Operating Income (NOI) (1)	$	13,444,000	$	11,221,000
Total Expenses	$	8,656,000	$	6,776,000
Interest and Dividend Income	$	997,000	$	1,005,000
Gain on Sale of Securities Transactions, net	$	425,000	$	3,802,000
Income from Continuing Operations	$	4,757,000	$	7,343,000
Income from Discontinued Operations	$	-0-	$	300,000
Net Income Attributable to Common Shareholders	$	2,605,000	$	5,492,000
Net Income Attributable to Common Shareholders Per Diluted Common Share	$	0.05	$	0.13
Core FFO (1)	$	6,919,000	$	8,799,000
Core FFO per Diluted Common Share (1)	$	0.15	$	0.21
AFFO (1)	$	6,464,000	$	4,608,000
AFFO per Diluted Common Share (1)	$	0.14	$	0.11
Weighted Avg. Diluted Common Shares Outstanding		46,845,000		41,989,000

 

 

		Six Months Ended March 31,
		2014		2013
Rental Revenue	$	27,656,000	$	23,048,000
Reimbursement Revenue	$	4,351,000	$	3,086,000
Lease Termination Income	$	-0-	$	691,000
Net Operating Income (NOI) (1)	$	26,529,000	$	22,358,000
Total Expenses	$	17,072,000	$	13,761,000
Interest and Dividend Income	$	1,936,000	$	2,128,000
Gain on Sale of Securities Transactions, net	$	576,000	$	5,913,000
Income from Continuing Operations	$	9,047,000	$	13,054,000
Income from Discontinued Operations	$	-0-	$	296,000
Net Income Attributable to Common Shareholders	$	4,744,000	$	9,047,000
Net Income Attributable to Common Shareholders Per Diluted Common Share	$	0.10	$	0.22
Core FFO (1)	$	13,666,000	$	16,259,000
Core FFO per Diluted Common Share (1)	$	0.30	$	0.39
AFFO (1)	$	13,156,000	$	9,450,000
AFFO per Diluted Common Share (1)	$	0.29	$	0.23
Weighted Avg. Diluted Common Shares Outstanding		46,081,000		41,545,000

 

Second Quarter FY 2014 Supplemental of Monmouth Real Estate Investment Corp. Page 18 of 20

A summary of significant balance sheet information as of March 31, 2014 and September 30, 2013 is as follows:

		March 31, 2014		September 30, 2013
Net Real Estate Investments	$	608,774,000	$	536,799,000
Securities Available for Sale at Fair Value	$	53,466,000	$	45,452,000
Total Assets	$	697,525,000	$	617,241,000
Mortgage Notes Payable	$	286,688,000	$	250,093,000
Loans Payable	$	47,432,000	$	22,200,000
Total Shareholders’ Equity	$	352,642,000	$	335,915,000

 

Michael P. Landy, President and CEO, commented on the results for the second quarter of fiscal 2014:

 

“The recent quarter represented significant progress across multiple fronts:

·

We have entered into agreements to acquire ten new Class A build-to-suit industrial properties, representing approximately 3.1 million square feet, for a total purchase price of approximately $222.3 million. In keeping with our business model, these high quality properties are leased primarily to investment grade tenants pursuant to long-term net leases and strategically situated at major airports, major transportation hubs, and manufacturing plants that are integral to our tenants’ operations. These new properties are expected to generate annualized rental revenue of approximately $15.4 million and will benefit from an average lease term of approximately 11.5 years. Subject to satisfactory due diligence, we anticipate closing these transactions upon completion of construction and occupancy over the next several quarters.

·

We have also entered into agreements to expand seven of our properties by approximately 293,000 square feet pursuant to which we will invest a total of approximately $24 million. Upon completion, the expansions will result in a new ten year lease extension for each of these properties and will result in increased annual rent of approximately $2.4 million.

·

AFFO per diluted share for the current quarter increased 27% as compared to the prior year quarter and increased 26% for the six months ended March 31, 2014 as compared to the six months ended March 31, 2013.

·

Our gross leasable area increased 17% to 10.7 million square feet over the prior year period and is expected to grow to over 14.0 million square feet upon the completion of the above acquisitions and expansions.

·

End of period occupancy increased to 95.4% as compared to 94.7% one year ago. As a result of two previously announced lease expirations subsequent to quarter end, our current occupancy is now 93.5%. Given currently strong market conditions, we anticipate further increased occupancy over the next few quarters.

·

Our average lease maturity increased to 6.8 years compared to 6.1 years a year ago.

We look forward to building on the substantial growth that we have achieved to date by adding high quality properties and tenants to our portfolio while enhancing returns for our shareholders.”

 

Monmouth Real Estate Investment Corporation will host its Second Quarter 2014 Financial Results Webcast and Conference Call. Senior management will discuss the results, current market conditions and future outlook on Thursday, May 8, 2014 at 10:00 a.m. Eastern Time.

 

The Company’s second quarter 2014 financial results being released herein will be available on the Company’s website at www.mreic.com in the “Financial Filings” section.

To participate in the Webcast, select the microphone icon in the Webcast section of the Company’s homepage on the Company’s website at www.mreic.com. Interested parties can also participate via conference call by calling toll free 888-317-6016 (domestically) or 412-317-6016 (internationally).

The replay of the conference call will be available at 12:00 p.m. Eastern Time on Thursday, May 8, 2014. It will be available until July 31, 2014, and can be accessed by dialing toll free 877-344-7529 (domestically) and 412-317-0088 (internationally) and entering the passcode 10042544. A transcript of the call and the webcast replay will be available at the Company’s website, www.mreic.com.

Monmouth Real Estate Investment Corporation, founded in 1968 and one of the oldest public equity REITs in the U.S., specializes in net-leased industrial properties subject to long-term leases primarily to investment grade tenants. The Company is a fully integrated and self-managed real estate company, whose property portfolio consists of eighty industrial properties and one shopping center located in twenty-seven states, containing a total of approximately 10.7 million rentable square feet. In addition, the Company owns a portfolio of REIT securities.

 

 

 

Second Quarter FY 2014 Supplemental of Monmouth Real Estate Investment Corp. Page 19 of 20

 

 

Certain statements included in this press release which are not historical facts may be deemed forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Any such forward-looking statements are based on the Company’s current expectations and involve various risks and uncertainties. Although the Company believes the expectations reflected in any forward-looking statements are based on reasonable assumptions, the Company can provide no assurance those expectations will be achieved. The risks and uncertainties that could cause actual results or events to differ materially from expectations are contained in the Company’s annual report on Form 10-K and described from time to time in the Company’s other filings with the SEC. The Company undertakes no obligation to publicly update or revise any forward-looking statements whether as a result of new information, future events, or otherwise.

 

Notes:

(1) Non-US GAAP Information: FFO is defined by the National Association of Real Estate Investment Trusts ("NAREIT") as net income applicable to common shareholders, excluding gains or losses from sales of depreciable assets, plus real estate-related depreciation and amortization. We define Core FFO as FFO plus acquisition costs. We define AFFO as Core FFO excluding lease termination income, gains or losses on securities transactions, stock based compensation expense, amortization of deferred financing and deferred leasing costs, recurring capital expenditures and straight-line rent adjustments. We define NOI as recurring rental and reimbursement revenues less real estate and other operating expenses. FFO, Core FFO and AFFO per diluted common share are defined as FFO, Core FFO and AFFO divided by weighted average diluted common shares outstanding. FFO, Core FFO and AFFO per diluted common share, as well as NOI, should be considered as supplemental measures of operating performance used by real estate investment trusts (REITs). FFO, Core FFO and AFFO per diluted common share exclude historical cost depreciation as an expense and may facilitate the comparison of REITs which have different cost basis. The items excluded from FFO, Core FFO and AFFO per diluted common share are significant components in understanding the Company’s financial performance.

 

FFO, Core FFO and AFFO per diluted common share (A) do not represent cash flow from operations as defined by accounting principles generally accepted in the United States of America; (B) should not be considered as an alternative to net income as a measure of operating performance or to cash flows from operating, investing and financing activities; and (C) are not alternatives to cash flow as a measure of liquidity. FFO, Core FFO and AFFO per diluted common share, as well as NOI, as calculated by the Company, may not be comparable to similarly titled measures reported by other REITs.

 

The Company’s FFO and Core FFO for the three and six months ended March 31, 2014 and 2013 are calculated as follows:

 

	Three Months Ended				Six Months Ended
	03/31/2014		03/31/2013		03/31/2014		03/31/2013
Net Income Attributable to Common Shareholders	$2,606,000		$5,492,000		$4,744,000		$9,047,000
Depreciation Expense (including Discontinued Operations)	3,975,000		3,268,000		7,788,000		6,402,000
Amortization of Intangible Assets	338,000		385,000		671,000		770,000
Gain on Sale of Investment Property	-0-		(346,000)		-0-		(346,000)
FFO Attributable to Common Shareholders	6,919,000		8,799,000		13,203,000		15,873,000
Acquisition Costs	-0-		-0-		463,000		386,000
Core FFO Attributable to Common Shareholders	$6,919,000		$8,799,000		$13,666,000		$16,259,000

 

The Company’s Core FFO, excluding the net Gain on Securities Transactions for the three and six months ended March 31, 2014 and 2013 are calculated as follows:

 

	Three Months Ended				Six Months Ended
	03/31/2014		03/31/2013		03/31/2014		03/31/2013
Core FFO Attributable to Common Shareholders	$6,919,000		$8,799,000		$13,666,000		$16,259,000
Less: Gain on Sale of Securities Transactions, net	425,000		3,802,000		576,000		5,913,000
Core FFO, excluding net Gain on Sale of Securities Transactions Attributable to Common Shareholders	$6,494,000		$4,997,000		$13,090,000		$10,346,000

 

The following are the Cash Flows provided (used) by Operating, Investing and Financing Activities for the six months ended March 31, 2014 and 2013:

 

	Six Months Ended
	03/31/2014		03/31/2013
Operating Activities	$17,938,000		$10,670,000
Investing Activities	(87,227,000)		(29,587,000)
Financing Activities	67,587,000		14,397,000

 

# # # # #

 

Second Quarter FY 2014 Supplemental of Monmouth Real Estate Investment Corp. Page 20 of 20