Table of Contents

Page

Consolidated Balance Sheets

3

Consolidated Statements of Income

4

NOI, EBITDA, FFO, Core FFO and AFFO Reconciliations

5

Financial Highlights

6

Net Operating Income (NOI), Same Store NOI and Same Store Cash NOI Reconciliations

7

Consolidated Statements of Cash Flows

8

Capital Structure and Leverage Ratios

9

Debt Maturity

11

Property Table by Tenant

12

Property Table by State

13

Lease Expirations

14

Recent Acquisitions

15

Property Table

16

Definitions

18

Press Release Dated December 10, 2014

19

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 (NOI) , same store

NOI, same store cash NOI and EBITDA which are REIT industry financial measures that are not calculated in accordance with

accounting principles generally accepted in the United States of Ameica. Please see page 18 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-K.

Consolidated Balance Sheets
		September 30,		September 30,
ASSETS		2014		2013
Real Estate Investments:
Land		$             109,858,989		$             97,400,859
Buildings and Improvements		634,068,423		530,493,968
Total Real Estate Investments		743,927,412		627,894,827
Accumulated Depreciation		(107,004,184)		(91,095,415)
Net Real Estate Investments		636,923,228		536,799,412
Cash and Cash Equivalents		20,474,661		12,404,512
Securities Available for Sale at Fair Value		59,311,403		45,451,740
Tenant and Other Receivables		1,312,975		889,645
Deferred Rent Receivable		3,759,031		3,158,286
Prepaid Expenses		2,764,795		2,201,270
Financing Costs, net of Accumulated Amortization of
$3,710,149 and $3,061,640, respectively		4,356,264		3,823,919
Lease Costs, net of Accumulated Amortization of
$1,886,457 and $1,414,861, respectively		2,741,414		2,183,772
Intangible Assets, net of Accumulated Amortization of
$9,740,983 and $8,333,680, respectively		6,490,881		6,727,360
Other Assets		5,622,048		3,600,950
TOTAL ASSETS		$              743,756,700		$           617,240,866
LIABILITIES AND SHAREHOLDERS' EQUITY
Liabilities:
Mortgage Notes Payable		$              287,796,006		$           250,093,382
Loans Payable		25,200,000		22,200,000
Accounts Payable and Accrued Expenses		4,930,041		5,404,883
Other Liabilities		5,199,571		3,627,630
Total Liabilities		323,125,618		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 September 30,		53,493,750		53,493,750
2014 and 2013
Series B – 7.875% Cumulative Redeemable Preferred Stock,
$0.01 Par Value Per Share: 2,300,000 Shares Authorized,
Issued and Outstanding as of September 30, 2014 and		57,500,000		57,500,000
2013
Common Stock – $0.01 Par Value Per Share: 200,000,000
and 67,700,000 Shares Authorized; 57,008,754 and
44,488,509 Shares Issued and Outstanding as of
September 30, 2014 and 2013, respectively		570,088		444,885
Excess Stock – $0.01 Par Value Per Share: 200,000,000 and
5,000,000 Shares Authorized as of September 30, 2014
and 2013, respectively; No Shares Issued or Outstanding
as of September 30, 2014 and 2013		-0-		-0-
Additional Paid-In Capital		308,945,888		222,487,068
Accumulated Other Comprehensive Income		121,356		1,989,268
Undistributed Income		-0-		-0-
Total Shareholders' Equity		420,631,082		335,914,971
TOTAL LIABILITIES & SHAREHOLDERS' EQUITY		$            743,756,700		$            617,240,866

 

 

 

 

Fourth Quarter FY 2014 & FY 2014 Supplemental of Monmouth Real Estate Investment Corp. Page 3 of 21

 

Consolidated Statements of Income
	Three Months Ended				Twelve Months Ended
	9/30/2014		9/30/2013		9/30/2014				9/30/2013
INCOME:
Rental Revenue	$14,472,676		$12,120,514		$55,512,165				$46,880,309
Reimbursement Revenue	2,453,335		2,298,609		9,160,176				7,726,777
Lease Termination Income	-0-		-0-		1,182,890				690,730
TOTAL INCOME	16,926,011		14,419,123		65,855,231				55,297,816
EXPENSES:
Real Estate Taxes	1,979,430		1,851,705		7,605,611				5,864,834
Operating Expenses	997,369		910,333		3,711,868				3,363,776
General & Administrative Expense	1,755,926		1,337,704		5,709,937				4,982,945
Acquisition Costs	19,016		54,700		481,880				514,699
Depreciation	4,129,298		3,281,162		15,908,769				12,864,542
Amortization of Lease Costs and Intangible Assets	464,789		566,917		1,810,812				2,018,440
TOTAL EXPENSES	9,345,828		8,002,521		35,228,877				29,609,236
OTHER INCOME (EXPENSE):
Interest and Dividend Income	1,005,111		913,894		3,882,597				3,885,920
Gain on Sale of Securities Transactions, net	683,521		157,166		2,166,766				7,133,252
Interest Expense	(3,874,061)		(3,473,699)		(16,104,678)				(14,956,954)
Amortization of Financing Costs	(190,448)		(149,751)		(725,745)				(647,112)
TOTAL OTHER INCOME (EXPENSE)	(2,375,877)		(2,552,390)		(10,781,060)				(4,584,894)
INCOME FROM CONTINUING OPERATIONS	5,204,306		3,864,212		19,845,294				21,103,686
INCOME FROM DISCONTINUED OPERATIONS	-0-		-0-		-0-				291,560
NET INCOME	5,204,306		3,864,212		19,845,294				21,395,246
Less:  Preferred Dividend	2,151,758		2,151,758		8,607,032				8,607,032
NET INCOME ATTRIBUTABLE TO
COMMON SHAREHOLDERS	$3,052,548		$1,712,454		$11,238,262				$12,788,214

 

 

 

 

 

 

 

 

 

 

Fourth Quarter FY 2014 & FY 2014 Supplemental of Monmouth Real Estate Investment Corp. Page 4 of 21

 

NOI, EBITDA, FFO, Core FFO and AFFO Reconciliations
(unaudited)
		Three Months Ended					Twelve Months Ended
		9/30/2014			9/30/2013		9/30/2014		9/30/2013
Revenues
	Rental Revenue	$14,472,676			$12,120,514		$55,512,165		$46,880,309
	Reimbursement Revenue	2,453,335			2,298,609		9,160,176		7,726,777
	Total Rental and Reimbursement Revenue	16,926,011			14,419,123		64,672,341		54,607,086
Expenses
	Real Estate Taxes	1,979,430			1,851,705		7,605,611		5,864,834
	Operating Expenses	997,369			910,333		3,711,868		3,363,776
	Total Expenses	2,976,799			2,762,038		11,317,479		9,228,610
Net Operating Income - NOI		13,949,212			11,657,085		53,354,862		45,378,476
	Lease Termination Income	-0-			-0-		1,182,890		690,730
	Interest and Dividend Income	1,005,111			913,894		3,882,597		3,885,920
	Net Operating Loss from Discontinued Operations (1)	-0-			-0-		-0-		(41,391)
	General & Administrative Expense	(1,755,926)			(1,337,704)		(5,709,937)		(4,982,945)
EBITDA		13,198,397			11,233,275		52,710,412		44,930,790
	Interest Expense	(3,874,061)			(3,473,699)		(16,104,678)		(14,956,954)
	Gain on Sale of Securities Transactions, net	683,521			157,166		2,166,766		7,133,252
	Acquisition Costs	(19,016)			(54,700)		(481,880)		(514,699)
	Preferred Dividend	(2,151,758)			(2,151,758)		(8,607,032)		(8,607,032)
	Amortization of Financing and Lease Costs	(316,841)			(356,063)		(1,188,621)		(1,122,254)
Funds From Operations - FFO		7,520,242			5,354,221		28,494,967		26,863,103
	Depreciation Expense (including Discontinued Operations)	(4,129,298)			(3,281,162)		(15,908,769)		(12,877,385)
	Gain on Sale of Investment Property	-0-			-0-		-0-		345,794
	Amortization of Intangible Assets	(338,396)			(360,605)		(1,347,936)		(1,543,298)
Net Income Attributable to Common Shareholders		3,052,548			1,712,454		11,238,262		12,788,214
Funds From Operations - FFO		7,520,242			5,354,221		28,494,967		26,863,103
	Acquisition Costs	19,016			54,700		481,880		514,699
Core Funds From Operations - Core FFO		7,539,258			5,408,921		28,976,847		27,377,802
	Lease Termination Income	-0-			-0-		(1,182,890)		(690,730)
	Gain on Sale of Securities Transactions, net	(683,521)			(157,166)		(2,166,766)		(7,133,252)
	Stock Compensation Expense	90,232			86,497		347,002		329,148
	Amortization of Financing and Lease Costs	316,841			356,063		1,188,621		1,122,254
	Straight-lined Rents	(291,413)			(52,119)		(600,745)		(943,785)
	Recurring Capital Expenditures	(249,993)			(295,025)		(760,959)		(539,465)
Adjusted Funds From Operations - AFFO		6,721,404			5,347,171		25,801,110		19,521,972
EBITDA		13,198,397			11,233,275		52,710,412		44,930,790
	Lease Termination Income	-0-			-0-		(1,182,890)		(690,730)
	Interest Expense	(3,874,061)			(3,473,699)		(16,104,678)		(14,956,954)
	Preferred Dividend	(2,151,758)			(2,151,758)		(8,607,032)		(8,607,032)
	Stock Compensation Expense	90,232			86,497		347,002		329,148
	Straight-lined Rents	(291,413)			(52,119)		(600,745)		(943,785)
	Recurring Capital Expenditures	(249,993)			(295,025)		(760,959)		(539,465)
Adjusted Funds From Operations - AFFO		$6,721,404			$5,347,171		$25,801,110		$19,521,972

(1) Excludes Gain on Sale of Investment Property and Depreciation Expense from Discontinued Operations

 

Fourth Quarter FY 2014 & FY 2014 Supplemental of Monmouth Real Estate Investment Corp. Page 5 of 21

 

 

Financial Highlights
(unaudited)
		Three Months Ended						Twelve Months Ended
		9/30/2014			9/30/2013			9/30/2014			9/30/2013
Weighted Average Common Shares Outstanding
	Basic	56,619,694			43,783,922			49,829,924			42,275,555
	Diluted	56,754,281			43,892,770			49,925,036			42,432,354
Net Operating Income - NOI		$13,949,212			$11,657,085			$53,354,862			$45,378,476
	Basic	$0.24			$0.27			$1.07			$1.07
	Diluted	0.25			0.27			1.07			1.07
Net Income Attributable to Common Shareholders		$3,052,548			$1,712,454			$11,238,262			$12,788,214
	Basic	$0.06			$0.03			$0.23			$0.30
	Diluted	0.06			0.03			0.23			0.30
Funds From Operations - FFO		$7,520,242			$5,354,221			$28,494,967			$26,863,103
	Basic	$0.13			$0.12			$0.57			$0.64
	Diluted	0.13			0.12			0.57			0.63
Core Funds From Operations - Core FFO		$7,539,258			$5,408,921			$28,976,847			$27,377,802
	Basic	$0.13			$0.12			$0.58			$0.65
	Diluted	0.13			0.12			0.58			0.65
Core FFO Excluding Gains on Securities Transactions, net		$6,855,737			$5,251,755			$26,810,081			$20,244,550
	Basic	$0.12			$0.12			$0.54			$0.48
	Diluted	0.12			0.12			0.54			0.48
Core FFO Excluding Lease Termination Income, net		$7,539,258			$5,408,921			$27,793,957			$26,687,072
	Basic	$0.13			$0.12			$0.56			$0.63
	Diluted	0.13			0.12			0.56			0.63
Adjusted Funds From Operations - AFFO		$6,721,404			$5,347,171			$25,801,110			$19,521,972
	Basic	$0.12			$0.12			$0.52			$0.46
	Diluted	0.12			0.12			0.52			0.46
Dividends Declared per Common Share		$0.15			$0.15			$0.60			$0.60

 

 

 

 

 

 

 

 

Fourth Quarter FY 2014 & FY 2014 Supplemental of Monmouth Real Estate Investment Corp. Page 6 of 21

 

	Net Operating Income (NOI), Same Store NOI and Same Store Cash NOI Reconciliations
	(unaudited)
						Three Months Ended				Twelve Months Ended
						9/30/2014		9/30/2013		9/30/2014		9/30/2013
	Revenues
			Rental Revenue			$14,472,676		$12,120,514		$55,512,165		$46,880,309
			Reimbursement Revenue			2,453,335		2,298,609		9,160,176		7,726,777
			Total Rental and Reimbursement Revenue			16,926,011		14,419,123		64,672,341		54,607,086
	Expenses
			Real Estate Taxes			1,979,430		1,851,705		7,605,611		5,864,834
			Operating Expenses			997,369		910,333		3,711,868		3,363,776
			Total Expenses			2,976,799		2,762,038		11,317,479		9,228,610
	Net Operating Income - NOI					13,949,212		11,657,085		53,354,862		45,378,476
	Occupancy percentage as of September 30th					95.9%		96.0%		95.9%		96.0%
	Net Operating Income - NOI					13,949,212		11,657,085		53,354,862		45,378,476
		Less: NOI of properties acquired during the periods presented				2,079,419		61,418		9,979,365		2,661,412
	NOI, excluding properties acquired during the periods presented					11,869,793		11,595,667		43,375,497		42,717,064
	Occupancy percentage as of September 30th of properties included in calculating NOI, excluding properties acquired during the periods presented					95.2%		95.9%		94.7%		95.5%
	NOI, excluding properties acquired during the periods presented					11,869,793		11,595,667		43,375,497		42,717,064
		Less: NOI of properties expanded during the periods presented (1)				2,065,031		1,590,397		7,653,581		5,877,117
	NOI, excluding properties acquired and/or expanded during the periods presented					9,804,762		10,005,270		35,721,916		36,839,947
	Occupancy percentage as of September 30th of properties included in calculating NOI, excluding properties acquired and/or expanded during the periods presented					94.6%		95.5%		94.0%		95.0%
	NOI, excluding properties acquired and/or expanded during the periods presented					9,804,762		10,005,270		35,721,916		36,839,947
		Less: NOI of properties that experienced any vacancy during the periods presented				58,242		71,174		754,123		1,312,799
	Same Store NOI					9,746,520		9,934,096		34,967,793		35,527,148
		Reversal of same store straight line rent U.S. GAAP adjustment				(13,117)		(179,254)		(161,353)		(416,842)
	Same Store Cash NOI					$9,733,403		$9,754,842		$34,806,440		$35,110,306

 

(1) NOI from expanded properties includes the full NOI generated from those expanded properties prior to and subsequent to the expansion.

 

 

 

Fourth Quarter FY 2014 & FY 2014 Supplemental of Monmouth Real Estate Investment Corp. Page 7 of 21

 

Consolidated Statements of Cash Flows
		Twelve Months Ended
		9/30/2014		9/30/2013
CASH FLOWS FROM OPERATING ACTIVITIES
Net Income		$19,845,294		$21,395,246
Noncash Items Included in Net Income:
Depreciation & Amortization		18,445,326		15,542,937
Stock Based Compensation Expense		347,002		329,148
Gain on Sale of Securities Transactions, net		(2,166,766)		(7,133,252)
Gain on Sale of Real Estate Investments		-0-		(345,794)
Changes In:
Tenant, Deferred Rent & Other Receivables		(922,107)		(614,639)
Prepaid Expenses		(563,525)		(772,816)
Other Assets and Lease Costs		(1,086,846)		(886,724)
Accounts Payable, Accrued Expenses & Other Liabilities		876,619		1,204
NET CASH PROVIDED BY OPERATING ACTIVITIES		34,774,997		27,515,310
CASH FLOWS FROM INVESTING ACTIVITIES
Purchase of Real Estate & Intangible Assets		(97,374,760)		(66,397,561)
Capital Improvements		(19,674,128)		(14,031,430)
Proceeds on Sale of Real Estate		-0-		1,413,891
Return of Deposits on Real Estate		2,050,000		720,000
Deposits on Acquisitions of Real Estate		(3,250,000)		(2,050,000)
Purchase of Securities Available for Sale		(27,840,200)		(13,504,751)
Proceeds from Sale of Securities Available for Sale		14,279,391		33,476,767
Collections on Loans Receivable		15,329		22,041
NET CASH USED BY INVESTING ACTIVITIES		(131,794,368)		(60,351,043)
CASH FLOWS FROM FINANCING ACTIVITIES
Proceeds from Mortgages		62,905,000		49,000,000
Principal Payments on Mortgages		(25,202,376)		(36,850,529)
Net Proceeds from Loans		3,000,000		17,000,000
Repurchase of Subordinated Convertible Debentures		-0-		(5,115,000)
Financing Costs on Debt		(2,070,790)		(1,769,369)
Net (Distributions) Contributions to Noncontrolling Interests		65,959		(73,822)
Proceeds from Underwritten Public Offering of Common Stock,
net of offering costs		65,112,686		-0-
Proceeds from Issuance of Common Stock in the DRIP,
net of reinvestments		30,465,806		24,338,006
Proceeds from Exercise of Options		1,327,169		1,301,663
Preferred Dividends Paid		(8,607,032)		(8,607,032)
Dividends Paid, net of reinvestments		(21,906,902)		(18,634,530)
NET CASH  PROVIDED BY FINANCING ACTIVITIES		105,089,520		20,589,387
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS		8,070,149		(12,246,346)
CASH AND CASH EQUIVALENTS AT BEGINNING OF YEAR		12,404,512		24,650,858
CASH AND CASH EQUIVALENTS AT END OF YEAR		$20,474,661		$12,404,512

 

 

 

 

Fourth Quarter FY 2014 & FY 2014 Supplemental of Monmouth Real Estate Investment Corp. Page 8 of 21

 

 

Capital Structure and Leverage Ratios			As of		As of
(unaudited)			9/30/2014		9/30/2013
Mortgage Notes Payable			$287,796,006		$250,093,382
Loans Payable			25,200,000		22,200,000
	Total Debt		312,996,006		272,293,382
Series A - 7.625% Cumul. Redeemable Preferred			53,493,750		53,493,750
Series B - 7.875% Cumul. Redeemable Preferred			57,500,000		57,500,000
	Total Preferred Stock		110,993,750		110,993,750
Common Stock, Paid-in-Capital & Other			309,637,332		224,921,221
	Total Shareholders' Equity		420,631,082		335,914,971
	Total Book Capitalization		733,627,088		608,208,353
	Accumulated Depreciation		107,004,184		91,095,415
	Total Undepreciated Book Capitalization		$840,631,272		$699,303,768
Shares Outstanding			57,008,754		44,488,509
Market Price Per Share			$10.12		$9.07
Equity Market Capitalization			$576,928,590		$403,510,777
Total Debt			312,996,006		272,293,382
Preferred			110,993,750		110,993,750
	Total Market Capitalization		$1,000,918,346		$786,797,909
Total Debt			$312,996,006		$272,293,382
less: Cash and Cash Equivalents			20,474,661		12,404,512
	Net Debt		$292,521,345		$259,888,870
Net Debt / Undepreciated Book Capitalization			34.8%		37.2%
Net Debt / Total Market Capitalization			29.2%		33.0%
Net Debt + Preferred / Total Market Capitalization			40.3%		47.1%

 

 

 

 

Fourth Quarter FY 2014 & FY 2014 Supplemental of Monmouth Real Estate Investment Corp. Page 9 of 21

Capital Structure and Leverage Ratios (continued)
(unaudited)
			Three Months Ended				Twelve Months Ended
			9/30/2014		9/30/2013		9/30/2014			9/30/2013
Net Income			$5,204,306		$3,864,212		$19,845,294			$21,395,246
plus: Depreciation & Amortization (includes Discontinued Operations)			4,784,535		3,997,830		18,445,326			15,542,937
plus: Interest Expense			3,874,061		3,473,699		16,104,678			14,956,954
plus: Acquisition Costs			19,016		54,700		481,880			514,699
less: Gain on Sale of Securities Transactions, net			(683,521)		(157,166)		(2,166,766)			(7,133,252)
less: Gain on Sale of Investment Property			-0-		-0-		-0-			(345,794)
	EBITDA		$13,198,397		$11,233,275		$52,710,412			$44,930,790
Interest Expense			$3,874,061		$3,473,699		$16,104,678			$14,956,954
Preferred Dividends Paid			2,151,758		2,151,758		8,607,032			8,607,032
	Total Fixed Charges		$6,025,819		$5,625,457		$24,711,710			$23,563,986
Interest Coverage			3.4 x		3.2 x		3.3 x			3.0 x
Fixed Charge Coverage			2.2 x		2.0 x		2.1 x			1.9 x
Net Debt			$292,521,345		$259,888,870		$292,521,345			$259,888,870
Annualized EBITDA			52,793,588		44,933,100		52,710,412			44,930,790
Net Debt / EBITDA			5.5 x		5.8 x		5.5 x			5.8 x
Net Debt + Preferred / EBITDA			7.6 x		8.3 x		7.7 x			8.3 x

 

 

 

 

 

 

 

Fourth Quarter FY 2014 & FY 2014 Supplemental of Monmouth Real Estate Investment Corp. Page 10 of 21

 

				Loans			% of
Fiscal Year Ended		Mortgages		Payable (1)		Total (1)	Total
2015		24,701,813		1,012,039		25,713,852	8.2%
2016		36,863,827		21,270,163	(1)	58,133,990	18.6%
2017		45,125,585		2,917,798		48,043,383	15.4%
2018		35,316,086		-0-		35,316,086	11.3%
2019		30,159,385		-0-		30,159,385	9.6%
Thereafter		115,629,310		-0-		115,629,310	36.9%
Total as of 9/30/2014		$287,796,006	$25,200,000			$312,996,006	100.0%

Notes:

(1) Includes a $20 million Line of Credit due June 2016, which has a one year extension option

 

Fourth Quarter FY 2014 & FY 2014 Supplemental of Monmouth Real Estate Investment Corp. Page 11 of 21

Property Table by Tenant
(unaudited)
		Property		Square	Occupied 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		3,199,673	3,199,673	28.6%	$24,207,000	40.6%	$7.57		$288,274,044		$108,629,327
FedEx Corporation		14		973,413	973,413	8.7%	5,408,000	9.1%	5.56		71,452,170		20,839,497
FedEx Supply Chain Services, Inc.		1		449,900	449,900	4.0%	1,317,000	2.2%	2.93		14,620,887		8,136,372
FedEx SmartPost, Inc.		1		327,822	327,822	2.9%	1,520,000	2.5%	4.64		23,744,000		14,000,000
Total FedEx		43		4,950,808	4,950,808	44.2%	32,452,000	54.4%	6.55		398,091,101		151,605,196
Milwaukee Electric Tool Corporation		1		615,305	615,305	5.5%	1,978,000	3.3%	$3.21		27,368,816		15,425,608
Ralcorp Holdings, Inc.		1		558,600	558,600	5.0%	2,135,000	3.6%	3.82		26,633,125		17,973,039
Woodstream Corporation		1		388,671	256,000	2.3%	896,000	1.5%	3.50		13,128,850		1,363,680
CBOCS Distribution, Inc. (A subsidiary of Cracker Barrel Old Country Store, Inc.)		1		381,240	381,240	3.4%	1,393,000	2.3%	3.65		14,215,126		8,038,668
Best Buy Warehousing Logistics, Inc.		1		368,060	368,060	3.3%	1,611,000	2.7%	4.38		19,600,000		11,470,944
Cocal-Cola Enterprises, Inc./Western Container Corp. (A subsidiary of Coca-Cola Enterprises, Inc.)		2		323,358	323,358	2.9%	1,584,000	2.7%	4.90		18,852,354		8,563,815
Norton McNaughton of Squire, Inc.		1		302,400	302,400	2.7%	1,389,000	2.3%	4.59		12,972,474		6,249,976
International Paper Company		1		280,000	280,000	2.5%	1,304,000	2.2%	4.66		18,085,492		12,009,761
United Technologies Corporation		2		244,317	244,317	2.2%	1,878,000	3.1%	7.69		22,481,005		9,276,421
Anda Pharmaceuticals, Inc. (A subsidiary of Actavis, Inc.)		1		234,660	234,660	2.1%	1,186,000	2.0%	5.05		14,550,000		9,828,177
Caterpillar Logistics Services, Inc.		1		218,120	218,120	1.9%	1,169,000	2.0%	5.36		14,868,857		7,449,942
Anheuser-Busch, Inc.		1		184,800	184,800	1.6%	785,000	1.3%	4.25		12,386,675		2,066,003
Carlisle Tire & Wheel Company		1		179,280	179,280	1.6%	761,000	1.3%	4.24		7,225,401		1,356,358
Home Depot USA, Inc.		1		171,200	171,200	1.5%	955,000	1.6%	5.58		11,298,367		-0-
Kellogg Sales Company		3		170,279	170,279	1.5%	1,018,000	1.7%	5.98		12,011,073		2,513,863
Charlotte Pipe and Foundry Company		1		160,000	160,000	1.4%	571,000	1.0%	3.57		5,500,697		912,017
NF&M International Inc.	(B)	1		112,542	112,542	1.0%	342,000	0.6%	3.04		3,672,740		-0-
Pittsburgh Glass Works LLC		1		102,135	102,135	0.9%	427,000	0.7%	4.18		3,928,456		-0-
Holland 1916 Inc.		1		95,898	95,898	0.9%	333,000	0.6%	3.47		7,371,118		-0-
National Oilwell Varco, Inc.		1		91,295	91,295	0.8%	737,000	1.2%	8.07		8,080,828		3,911,783
Joseph T. Ryerson and Son, Inc.		1		89,052	89,052	0.8%	506,000	0.8%	5.68		6,896,644		1,306,487
CHEP USA, Inc.		1		83,000	83,000	0.7%	472,000	0.8%	5.69		7,464,795		3,101,629
Datatel Resources Corporation	(B)	1		80,856	80,856	0.7%	222,000	0.4%	2.75		2,188,936		-0-
Sherwin-Williams Company		2		78,887	78,887	0.7%	633,000	1.1%	8.02		7,224,201		-0-
RGH Enterprises, Inc.		1		75,000	75,000	0.7%	584,000	1.0%	7.79		5,525,600		3,981,931
Tampa Bay Grand Prix		1		68,385	68,385	0.6%	281,000	0.5%	4.11		5,651,066		2,250,952
Various Tenants at Retail Shopping Center		1		64,138	53,820	0.5%	202,000	0.3%	3.75		2,512,671		-0-
SOFIVE, Inc.		1		60,400	60,400	0.5%	504,000	0.8%	8.34		4,838,592		2,184,584
Siemens Real Estate (A division of Siemens Corporation)		1		51,130	51,130	0.5%	462,000	0.8%	9.04		4,416,000		2,793,854
The American Bottling Company (A subsidiary of Dr Pepper Snapple Group, Inc.)		1		46,240	46,240	0.4%	253,000	0.4%	5.47		3,700,000		2,161,318
Keystone Automotive Industries MN, Inc.		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	0.3%	109,000	0.1%	4.14		1,850,794		-0-
Tenant Total as of 9/30/2014	(B)	79		10,892,666	10,749,677	95.9%	$59,269,000	99.3%	$5.51		$726,753,749		$287,796,006
Vacant	(C)	3		313,932	-0-	4.1%	411,000	0.7%	-0-		16,949,961		-0-
Total as of 9/30/2014		82		11,206,598	10,749,677	100.0%	$59,680,000	100.0%	$5.51		(A) $743,703,710		$287,796,006
Acquisitions Subsequent to 9/30/2014
FedEx Ground Package System, Inc.		2		362,151	362,151	3.1%	1,761,000	2.8%	4.86		25,130,000		17,660,000
BE Aerospace, Inc.		1		38,833	38,833	0.3%	359,000	0.6%	9.24		5,100,000		-0-
Bunzl Distribution Midcentral, Inc.		1		158,417	158,417	1.3%	736,000	1.2%	4.65		9,600,000		7,226,828
Pro Forma Total		86		11,765,999	11,309,078	100.0%	$62,536,000	100.0%	$5.49		$783,533,710		$312,682,834

 

(A) Does not include $223,702 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.

 

Fourth Quarter FY 2014 & FY 2014 Supplemental of Monmouth Real Estate Investment Corp. Page 12 of 21

 

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
Texas		7	862,836	862,836	7.7%	$6,608,000	11.1%	$7.66		$77,215,565		$39,355,535
Illinois		7	720,439	720,439	6.4%	4,780,000	8.0%	6.63		61,311,180		7,300,316
Mississippi		4	912,305	912,305	8.1%	3,394,000	5.7%	3.72		45,670,302		25,253,785
Tennessee		3	891,777	891,777	8.0%	3,021,000	5.1%	3.39		33,807,174		18,160,195
Florida		9	839,714	839,714	7.5%	5,528,000	9.3%	6.58		71,534,710		29,219,986
Ohio		5	736,429	736,429	6.6%	4,460,000	7.5%	6.06		53,047,018		23,551,427
Missouri		4	651,771	519,100	5.8%	2,006,000	3.4%	3.86		29,176,798		3,877,543
South Carolina		3	571,115	571,115	5.1%	3,478,000	5.8%	6.09		36,000,434		10,822,538
Kentucky		1	558,600	558,600	5.0%	2,135,000	3.6%	3.82		26,633,125		17,973,039
Kansas		3	499,280	499,280	4.5%	2,397,000	4.0%	4.80		28,990,736		15,170,679
Michigan		3	489,571	489,571	4.4%	3,472,000	5.8%	7.09		41,058,361		20,643,434
North Carolina		3	414,507	160,000	3.7%	982,000	1.6%	3.57		17,293,532		912,017
Virginia		5	407,265	407,265	3.6%	2,405,000	4.0%	5.91		34,482,152		9,280,802
Indiana		1	327,822	327,822	2.9%	1,520,000	2.5%	4.64		23,744,000		14,000,000
Pennsylvania		2	315,920	315,920	2.8%	1,215,000	2.0%	3.85		14,851,676		4,722,377
Georgia		3	307,662	307,662	2.7%	1,767,000	3.0%	5.74		22,137,911		8,613,782
Arizona		1	283,358	283,358	2.5%	1,252,000	2.1%	4.42		15,172,511		6,759,255
Wisconsin		2	238,666	238,666	2.1%	1,369,000	2.3%	5.74		15,943,672		3,832,781
New York		3	230,381	230,381	2.1%	1,886,000	3.2%	8.19		20,285,298		4,897,252
Oklahoma		2	166,152	166,152	1.5%	966,000	1.6%	5.81		13,304,165		7,466,893
Maryland		1	144,523	144,523	1.3%	1,426,000	2.4%	9.87		14,458,484		6,061,132
Colorado		2	138,235	138,235	1.2%	1,208,000	2.0%	8.74		13,549,167		3,489,036
New Jersey		2	124,538	114,220	1.1%	706,000	1.2%	6.18		7,351,263		2,184,584
Minnesota		2	119,823	60,398	1.1%	372,000	0.6%	6.16		10,377,126		3,071,475
Nebraska		1	89,115	89,115	0.8%	446,000	0.7%	5.00		5,929,890		-0-
Alabama		1	73,712	73,712	0.7%	412,000	0.7%	5.59		4,751,741		1,176,143
Connecticut		1	54,812	54,812	0.5%	332,000	0.6%	6.06		3,463,824		-0-
Iowa		1	36,270	36,270	0.3%	137,000	0.2%	3.78		2,161,895		-0-
Total as of 9/30/2014		82	11,206,598	10,749,677	100.0%	$59,680,000	100.0%	$5.51		(A) $743,703,710		$287,796,006
Acquisitions Subsequent to 9/30/2014
Texas		1	163,378	163,378	1.5%	$725,000	1.2%	4.44		$9,930,000		$7,000,000
Illinois		2	237,606	237,606	2.1%	1,395,000	2.3%	5.87		20,300,000		10,660,000
Missouri		1	158,417	158,417	1.4%	736,000	1.2%	4.65		9,600,000		7,226,828
Pro Forma Total		86	11,765,999	11,309,078	100.0%	$62,536,000	100.0%	$5.49		(A) $783,533,710		$312,682,834

 

(A)

Does not include $223,702 of vacant land and corporate office leasehold improvements not associated with a specific tenant.

 

 

 

Fourth Quarter FY 2014 & FY 2014 Supplemental of Monmouth Real Estate Investment Corp. Page 13 of 21

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
2015		3		469,602	4.2%	$2,166,000	3.6%	$4.61	0.7		$21,649,304		$8,763,838
2016	(B)	3		325,656	2.9%	1,315,000	2.2%	4.04	1.5		19,316,616		2,066,003
2017		14		1,832,197	16.3%	9,328,000	15.6%	5.49	2.7		115,104,358		28,295,582
2018	(B)	12		1,061,763	9.5%	6,765,000	11.3%	6.37	3.7		77,901,943		23,469,745
2019		7		1,008,449	9.0%	5,275,000	8.8%	5.23	4.6		63,189,043		23,129,841
2020		2		239,585	2.1%	1,236,000	2.1%	5.16	5.8		16,949,433		2,250,952
2021		4		271,768	2.4%	1,755,000	2.9%	6.46	6.9		20,366,438		10,933,881
2022		9		1,249,738	11.2%	7,256,000	12.2%	5.81	7.6		86,229,535		49,598,033
2023		11		1,916,782	17.1%	9,664,000	16.2%	5.04	8.7		125,942,891		61,286,479
2024		11		1,750,988	15.6%	11,196,000	18.8%	6.39	9.7		138,655,005		54,742,400
2025		2		143,400	1.3%	976,000	1.6%	6.81	10.3		12,303,387		5,286,213
2034		1		558,600	5.0%	2,135,000	3.6%	3.82	19.1		26,633,125		17,973,039
Various tenants at retail shopping center		1		64,138	0.6%	202,000	0.4%	3.75	-0-		2,512,671		-0-
Vacant	(C)	3		313,932	2.8%	411,000	0.7%	-0-	-0-		16,949,961		-0-
Total as of 9/30/2014		82		11,206,598	100.0%	$59,680,000	100.0%	$5.51	6.7		(A) $743,703,710		$287,796,006
Acquisitions Subsequent to 9/30/2014
2021		1		158,417	1.3%	736,000	1.2%	4.65	7.0		9,600,000		7,226,828
2024		1		163,378	1.4%	725,000	1.2%	4.44	9.8		9,930,000		7,000,000
2027		1		38,833	0.3%	359,000	0.6%	9.24	12.7		5,100,000		-0-
2029		1		198,773	1.7%	1,036,000	1.6%	5.21	14.7		15,200,000		10,660,000
Pro Forma Total		86		11,765,999	100.0%	$62,536,000	100.0%	$5.49	6.9		(A) $783,533,710		$312,682,834

 

(A) Does not include $223,702 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) Includes rental revenue from properties during Fiscal 2014 prior to becoming vacant.

 

 

 

 

Fourth Quarter FY 2014 & FY 2014 Supplemental of Monmouth Real Estate Investment Corp. Page 14 of 21

 

 

 

 

Recent Acquisitions During Fiscal 2014
(unaudited)
					Fiscal Year	Square	Annual	Rent Per	Lease		Purchase		Initial Mortgage
No	Tenant	City (MSA)	State		Acquisition	Footage	Rent	Sq. Ft. Occup.	Expiration		Price		Balance
1	The American Bottling Company (A subsidiary of Dr Pepper Snapple Group, Inc.)	Tulsa	OK		2014	46,240	$253,000	$5.47	2/28/2024		$3,700,000		$2,250,000
2	Ralcorp Holdings, Inc.	Buckner (Louisville)	KY		2014	558,600	2,135,000	3.82	10/31/2033		27,070,616		18,475,000
3	International Paper Company	Edwardsville (Kansas City)	KS		2014	280,000	1,304,000	4.66	8/31/2023		18,818,825		12,550,000
4	FedEx Ground Package System, Inc.	Altoona	PA		2014	122,522	651,000	5.31	8/31/2023		8,990,000		5,000,000
5	FedEx Ground Package System, Inc. (1)	Spring (Houston)	TX		2014	114,923	1,146,000	9.97	8/31/2023		15,281,318		10,630,000
6	FedEx SmartPost, Inc.	Indianapolis	IN		2014	327,822	1,520,000	4.64	4/30/2024		23,744,000		14,000,000
	As of 9/30/2014					1,450,107	$7,009,000	$4.83			$97,604,759		$62,905,000
Acquisitions Subsequent to 9/30/2014
7	FedEx Ground Package System, Inc.	Lindale (Tyler)	TX		2015	163,378	$725,000	$4.44	6/30/2024		10,271,355		7,000,000
8	FedEx Ground Package System, Inc.	Sauget (St. Louis, MO)	IL		2015	198,773	1,036,000	5.21	5/31/2029		15,231,000		10,660,000
9	BE Aerospace, Inc.	Rockford	IL		2015	38,833	359,000	9.24	6/1/2027		5,200,000		-0-
10	Bunzl Distribution Midcentral, Inc.	Kansas City	MO		2015	158,417	736,000	4.65	9/30/2021		9,635,770		7,226,828
	Acquisitions Subsequent to 9/30/2014					559,401	$2,856,000	$5.11			$40,338,125		$24,886,828

 

(1)

Property was subsequently expanded by 66,253 square feet, increasing annual rent to $1,581,000 and extending the lease expiration to September 30, 2024.

 

 

 

 

 

 

 

 

 

Fourth Quarter FY 2014 & FY 2014 Supplemental of Monmouth Real Estate Investment Corp. Page 15 of 21

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 Corporation		Olive Branch (Memphis, TN)	MS	2013	100.0%	615,305	$1,978,000	$3.21	8.6	$27,368,816	$15,425,608
2	Ralcorp Holdings, Inc.		Buckner (Louisville)	KY	2014	100.0%	558,600	2,135,000	3.82	19.1	26,633,125	17,973,038
3	FedEx Supply Chain Services, Inc.		Memphis	TN	2010	100.0%	449,900	1,317,000	2.93	4.7	14,620,887	8,136,372
4	Woodstream Corporation		St. Joseph	MO	2001	65.9%	388,671	896,000	3.50	3.0	13,128,850	1,363,680
5	CBOCS Distribution, Inc. (A subsidiary of Cracker Barrel Old Country Store, Inc.)		Lebanon (Nashville)	TN	2011	100.0%	381,240	1,393,000	3.65	9.8	14,215,126	8,038,667
6	Best Buy Warehousing Logistics, Inc.		Streetsboro (Cleveland)	OH	2012	100.0%	368,060	1,611,000	4.38	7.3	19,600,000	11,470,944
7	FedEx SmartPost, Inc.		Indianapolis	IN	2014	100.0%	327,822	1,520,000	4.64	9.6	23,744,000	14,000,000
8	Norton McNaughton of Squire, Inc.		Hanahan (Charleston)	SC	2005	100.0%	302,400	1,389,000	4.59	0.6	12,972,474	6,249,976
9	Western Container Corp. (A subsidiary of Coca-Cola Enterprises, Inc.)		Tolleson (Phoenix)	AZ	2003	100.0%	283,358	1,252,000	4.42	2.6	15,172,511	6,759,255
10	International Paper Company		Edwardsville (Kansas City)	KS	2014	100.0%	280,000	1,304,000	4.66	8.9	18,085,492	12,009,761
11	FedEx Ground Package System, Inc.		Orion	MI	2007	100.0%	245,633	1,908,000	7.77	8.8	22,874,748	9,578,032
12	Anda Pharmaceuticals, Inc. (A subsidiary of Actavis, Inc.)		Olive Branch (Memphis, TN)	MS	2012	100.0%	234,660	1,186,000	5.05	7.8	14,550,000	9,828,177
13	Caterpillar Logistics Services, Inc.		Griffin (Atlanta)	GA	2006	100.0%	218,120	1,169,000	5.36	2.2	14,868,857	7,449,942
14	NF&M International Inc.	(B)	Monaca (Pittsburgh)	PA	1988	100.0%	112,542	342,000	3.04	4.0	3,672,740	-0-
	Datatel Resources	(B)	Monaca (Pittsburgh)	PA	1988	100.0%	80,856	222,000	2.75	1.2	2,188,936	-0-
15	Anheuser-Busch, Inc.		Granite City (St. Louis)	IL	2001	100.0%	184,800	785,000	4.25	1.7	12,386,675	2,066,003
16	United Technologies Corporation		Carrollton (Dallas)	TX	2010	100.0%	184,317	1,570,000	8.52	4.3	17,740,000	9,276,421
17	FedEx Ground Package System, Inc.		Spring (Houston)	TX	2014	100.0%	181,176	1,543,000	8.52	10.0	19,226,108	10,236,317
18	Carlisle Tire & Wheel Company		Edwardsville (Kansas City)	KS	2003	100.0%	179,280	761,000	4.24	3.7	7,225,401	1,356,358
19	FedEx Ground Package System, Inc.		Ft. Mill (Charlotte, NC)	SC	2010	100.0%	176,939	1,414,000	7.99	9.1	15,413,307	2,972,570
20	FedEx Ground Package System, Inc.		Livonia (Detroit)	MI	2013	100.0%	172,005	1,194,000	6.94	7.5	13,700,000	8,609,540
21	Home Depot USA, Inc.		Montgomery (Chicago)	IL	2004	100.0%	171,200	955,000	5.58	5.8	11,298,367	-0-
22	FedEx Ground Package System, Inc.		Tampa	FL	2004	100.0%	170,779	1,488,000	8.71	9.8	18,442,815	7,953,829
23	Charlotte Pipe and Foundry Company		Monroe	NC	2001	100.0%	160,000	571,000	3.57	2.8	5,500,697	912,017
24	Vacant	(C)	Fayetteville	NC	1997	-0-	148,000	278,000	na	na	4,870,749	-0-
25	FedEx Ground Package System, Inc.		Beltsville (Washington, DC)	MD	2001	100.0%	144,523	1,426,000	9.87	3.8	14,458,484	6,061,132
26	FedEx Ground Package System, Inc.		Cocoa	FL	2008	100.0%	144,138	1,086,000	7.53	10.0	14,015,881	5,646,188
27	FedEx Ground Package System, Inc.		El Paso	TX	2006	100.0%	143,619	1,046,000	7.28	9.0	11,232,648	3,943,617
28	FedEx Ground Package System, Inc.		Cudahy (Milwaukee)	WI	2001	100.0%	139,564	901,000	6.46	2.8	9,373,672	-0-
29	FedEx Ground Package System, Inc.		Richfield (Cleveland)	OH	2006	100.0%	131,152	1,459,000	11.12	10.0	16,527,187	3,733,511
30	FedEx Ground Package System, Inc.		Wheeling (Chicago)	IL	2003	100.0%	123,000	1,386,000	11.27	2.7	18,537,652	3,927,826
31	FedEx Ground Package System, Inc.		Altoona	PA	2014	100.0%	122,522	651,000	5.31	8.9	8,990,000	4,722,377
32	FedEx Ground Package System, Inc.		Oklahoma City	OK	2012	100.0%	119,912	713,000	5.95	7.5	9,604,165	5,305,575
33	FedEx Ground Package System, Inc.		Edinburg	TX	2011	100.0%	113,582	598,000	5.26	6.9	7,438,483	4,019,887
34	FedEx Corporation		Mechanicsville (Richmond)	VA	2001	100.0%	112,799	541,000	4.80	8.6	7,732,315	-0-
35	FedEx Corporation		Orlando	FL	2008	100.0%	110,638	666,000	6.02	3.2	8,541,237	4,784,769
36	Vacant	(C)	Winston-Salem	NC	2002	-0-	106,507	133,000	na	na	6,922,086	-0-
37	FedEx Ground Package System, Inc.		Cheektowaga (Buffalo)	NY	2000	100.0%	104,981	966,000	9.20	4.9	10,960,823	915,321
38	FedEx Ground Package System, Inc.		West Chester Twp (Cincinnati)	OH	1999	100.0%	103,818	520,000	5.01	8.9	5,728,690	2,523,655
39	FedEx Ground Package System, Inc.		Roanoke	VA	2013	100.0%	103,402	755,000	7.30	8.6	10,200,000	6,179,173
40	FedEx Ground Package System, Inc.		Waco	TX	2012	100.0%	102,594	659,000	6.42	7.7	8,733,000	5,313,941
41	Pittsburgh Glass Works LLC		O' Fallon (St. Louis)	MO	1994	100.0%	102,135	427,000	4.18	0.7	3,928,456	-0-
42	FedEx Ground Package System, Inc.		Green Bay	WI	2013	100.0%	99,102	468,000	4.72	8.7	6,570,000	3,832,781
43	Holland 1916 Inc.		Liberty (Kansas City)	MO	1998	100.0%	95,898	333,000	3.47	4.8	7,371,118	-0-
44	FedEx Corporation		Jacksonville	FL	1999	100.0%	95,883	518,000	5.40	4.7	6,229,421	2,007,872
45	FedEx Corporation		Tampa	FL	2006	100.0%	95,662	603,000	6.30	3.0	7,565,717	4,351,880
46	FedEx Ground Package System, Inc.		Hanahan (Charleston)	SC	2005	100.0%	91,776	675,000	7.35	3.8	7,614,653	1,599,992
47	National Oilwell Varco, Inc.		Houston	TX	2010	100.0%	91,295	737,000	8.07	8.0	8,080,828	3,911,783
48	FedEx Corporation		Omaha	NE	1999	100.0%	89,115	446,000	5.00	9.1	5,929,890	-0-
49	Joseph T. Ryerson and Son, Inc.		Elgin (Chicago)	IL	2002	100.0%	89,052	506,000	5.68	2.3	6,896,644	1,306,487
50	FedEx Ground Package System, Inc.		Ft. Myers	FL	2003	100.0%	87,500	427,000	4.88	2.1	5,017,447	-0-

 

Fourth Quarter FY 2014 & FY 2014 Supplemental of Monmouth Real Estate Investment Corp. Page 16 of 21

 

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
51	CHEP USA, Inc.		Roanoke			VA			2007		100.0%	83,000	472,000	5.69	10.3	7,464,795	3,101,629
52	FedEx Corporation		Bedford Heights (Cleveland)			OH			2007		100.0%	82,269	408,000	4.96	3.9	6,775,141	3,029,464
53	RGH Enterprises, Inc.		Halfmoon (Albany)			NY			2012		100.0%	75,000	584,000	7.79	7.2	5,525,600	3,981,931
54	FedEx Ground Package System, Inc.		Huntsville			AL			2005		100.0%	73,712	412,000	5.59	7.9	4,751,741	1,176,143
55	FedEx Corporation		Schaumburg (Chicago)			IL			1997		100.0%	73,500	515,000	7.01	2.5	4,967,639	-0-
56	FedEx Corporation		Romulus (Detroit)			MI			1998		100.0%	71,933	370,000	5.14	6.7	4,483,613	2,455,862
57	FedEx Ground Package System, Inc.		Denver			CO			2005		100.0%	69,865	564,000	8.07	3.8	6,354,051	1,631,613
58	Tampa Bay Grand Prix		Tampa			FL			2005		100.0%	68,385	281,000	4.11	6.0	5,651,066	2,250,952
59	FedEx Ground Package System, Inc.		Colorado Springs			CO			2006		100.0%	68,370	644,000	9.42	4.0	7,195,115	1,857,423
60	Sherwin-Williams Company		Rockford			IL			2011		100.0%	66,387	473,000	7.12	9.3	5,540,000	-0-
61	Kellogg Sales Company		Kansas City			MO			2007		100.0%	65,067	350,000	5.38	0.8	4,748,374	2,513,863
62	Various Tenants at Retail Shopping Center		Somerset			NJ			1970		84.0%	64,138	202,000	3.75	-0-	2,512,671	-0-
63	FedEx Corporation		Chattanooga			TN			2007		100.0%	60,637	311,000	5.13	3.1	4,971,161	1,985,155
64	SOFIVE, Inc.		Carlstadt (New York, NY)			NJ			2001		100.0%	60,400	504,000	8.34	10.3	4,838,592	2,184,584
65	FedEx Ground Package System, Inc.		Stewartsville (Rochester)			MN			2013		100.0%	60,398	372,000	6.16	8.7	5,220,000	3,071,475
66	United Technologies Corporation		Richmond			VA			2004		100.0%	60,000	308,000	5.13	1.7	4,741,005	-0-
67	Vacant		White Bear Lake (Minneapolis/St. Paul)			MN			2001		-0-	59,425	-0-	na	na	5,157,126	-0-
68	FedEx Ground Package System, Inc.		Augusta			GA			2005		100.0%	59,358	477,000	8.04	3.8	5,328,873	1,163,840
69	Kellogg Sales Company		Newington (Hartford)			CT			2001		100.0%	54,812	332,000	6.06	2.4	3,463,824	-0-
70	Siemens Real Estate (A division of Siemens Corporation)		Lebanon (Cincinnati)			OH			2012		100.0%	51,130	462,000	9.04	4.6	4,416,000	2,793,854
71	Kellogg Sales Company		Orangeburg (New York)			NY			1993		100.0%	50,400	336,000	6.67	3.4	3,798,875	-0-
72	FedEx Corporation		Charlottesville			VA			1999		100.0%	48,064	329,000	6.85	2.9	4,344,037	-0-
73	The American Bottling Company (A subsidiary of Dr Pepper Snapple Group, Inc.)		Tulsa			OK			2014		100.0%	46,240	253,000	5.47	9.4	3,700,000	2,161,318
74	FedEx Ground Package System, Inc.		Corpus Christi			TX			2012		100.0%	46,253	455,000	9.84	6.9	4,764,500	2,653,571
75	Coca-Cola Enterprises, Inc.		Topeka			KS			2009		100.0%	40,000	332,000	8.30	7.0	3,679,843	1,804,560
76	Keystone Automotive Industries MN, Inc.		Urbandale (Des Moines)			IA			1994		100.0%	36,270	137,000	3.78	2.5	2,161,895	-0-
77	FedEx Corporation		Richland (Jackson)			MS			1994		100.0%	36,000	121,000	3.36	9.5	1,900,691	-0-
78	FedEx Corporation		Punta Gorda			FL			2007		100.0%	34,624	304,000	8.78	2.8	4,104,915	2,224,495
79	FedEx Corporation		Lakeland			FL			2006		100.0%	32,105	155,000	4.83	3.2	1,966,211	-0-
80	FedEx Corporation		Augusta			GA			2006		100.0%	30,184	121,000	4.01	8.2	1,940,182	-0-
81	Graybar Electric Company		Ridgeland (Jackson)			MS			1993		100.0%	26,340	109,000	4.14	4.8	1,850,794	-0-
82	Sherwin-Williams Company		Burr Ridge (Chicago)			IL			1997		100.0%	12,500	160,000	12.80	7.1	1,684,202	-0-
	Total as of 9/30/2014										95.9%	11,206,598	$59,680,000	$5.51	6.7	(A) $743,703,710	$287,796,006
	Acquisitions Subsequent to 9/30/2014
83	FedEx Ground Package System, Inc.		Lindale (Tyler)			TX			2015		100.0%	163,378	$725,000	$4.44	9.8	$9,930,000	7,000,000
84	FedEx Ground Package System, Inc.		Sauget (St. Louis, MO)			IL			2015		100.0%	198,773	1,036,000	5.21	14.7	15,200,000	10,660,000
85	BE Aerospace, Inc.		Rockford			IL			2015		100.0%	38,833	359,000	9.24	12.7	5,100,000	-0-
86	Bunzl Distribution Midcentral, Inc.		Kansas City			MO			2015		100.0%	158,417	736,000	4.65	7.0	9,600,000	7,226,828
	Pro Forma Total										96.1%	11,765,999	$62,536,000	$5.49	6.9	(A) $783,533,710	$312,682,834

 

(A) Does not include $223,702 of vacant land and corporate office leasehold improvements not associated with a specific tenant.

(B) Both tenants occupy one property.

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

 

 

Fourth Quarter FY 2014 & FY 2014 Supplemental of Monmouth Real Estate Investment Corp. Page 17 of 21

Definitions
Investors and analysts following the real estate industry utilize funds from operations ("FFO"), core funds from operations ("Core FFO"), net operating income ("NOI"), same store NOI, same store cash 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 (U.S. GAAP), is the most appropriate measure, it considers NOI, Same Store NOI, Same Store Cash 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 U.S. 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, Same Store NOI, Same Store Cash 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 U.S. GAAP, excluding extraordinary items as defined by U.S. 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.
Same Store NOI is the NOI of all properties owned during all periods presented, excluding any properties that were acquired, expanded or vacant during any time during the periods presented.
Same Store Cash NOI is the Same Store NOI adjusted to exclude the effects of the U.S. GAAP straight line rent adjustment for the properties included in the Same Store NOI calculation.
EBITDA is calculated as NOI, less general and administrative expenses, less NOI from discontinued operations, plus interest and dividend income.
AFFO is calculated as EBITDA, minus lease termination income, minus U.S. GAAP interest expense, minus preferred stock dividends, minus recurring capital expenditures and U.S. GAAP straight line rent adjustment, plus stock option expense.  AFFO excludes realized gains (losses) on securities transactions.
NOI, Same Store NOI, Same Store Cash NOI, EBITDA, FFO, Core FFO and AFFO do not represent cash generated from operating activities in accordance with U.S. 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, Same Store NOI, Same Store Cash NOI, EBITDA, FFO, Core FFO and AFFO should not be considered as substitutes for net income applicable to common shareholders (calculated in accordance with U.S. GAAP) as a measure of results of operations or cash flows (calculated in accordance with U.S. GAAP) as a measure of liquidity. NOI, Same Store NOI, Same Store Cash 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.

 

 

 

 

Fourth Quarter FY 2014 & FY 2014 Supplemental of Monmouth Real Estate Investment Corp. Page 18 of 21

 

FOR IMMEDIATE RELEASE December 10, 2014

 

Contact: Susan Jordan

732-577-9996

 

MONMOUTH REAL ESTATE INVESTMENT CORPORATION REPORTS RESULTS FOR

THE FISCAL YEAR ENDED AND THE FOURTH QUARTER ENDED SEPTEMBER 30, 2014

 

FREEHOLD, NJ, December 10, 2014........ Monmouth Real Estate Investment Corporation (NYSE:MNR) reported Core Funds from Operations (Core FFO) of $28,977,000 or $0.58 per diluted share for the fiscal year ended September 30, 2014 as compared to $27,378,000 or $0.65 per diluted share for the fiscal year ended September 30, 2013. Adjusted Funds from Operations (AFFO), for the fiscal year ended September 30, 2014 was $25,801,000 or $0.52 per diluted share versus $19,522,000 or $0.46 per diluted share for the fiscal year ended September 30, 2013.

 

Core FFO for the three months ended September 30, 2014 was $7,539,000 or $0.13 per diluted share as compared to $5,409,000 or $0.12 per diluted share for the three months ended September 30, 2013. AFFO for the three months ended September 30, 2014 was $6,721,000 or $0.12 per diluted share versus $5,347,000 or $0.12 per diluted share for the three months ended September 30, 2013.

 

A summary of significant financial information for the three and twelve months ended September 30, 2014 and 2013 is as follows:

 

		Three Months Ended September 30,
		2014		2013
Rental Revenue	$	14,473,000	$	12,121,000
Reimbursement Revenue	$	2,453,000	$	2,299,000
Lease Termination Income	$	-0-	$	-0-
Net Operating Income (NOI) (1)	$	13,949,000	$	11,657,000
Total Expenses	$	9,346,000	$	8,003,000
Interest and Dividend Income	$	1,005,000	$	914,000
Gain on Sale of Securities Transactions, net	$	684,000	$	157,000
Income from Continuing Operations	$	5,204,000	$	3,864,000
Income from Discontinued Operations	$	-0-	$	-0-
Net Income Attributable to Common Shareholders	$	3,053,000	$	1,712,000
Net Income Attributable to Common Shareholders Per Diluted Common Share	$	0.06	$	0.03
Core FFO (1)	$	7,539,000	$	5,409,000
Core FFO per Diluted Common Share (1)	$	0.13	$	0.12
AFFO (1)	$	6,721,000	$	5,347,000
AFFO per Diluted Common Share (1)	$	0.12	$	0.12
Weighted Avg. Diluted Common Shares Outstanding		56,754,000		43,893,000

 

		Twelve Months Ended September 30,
		2014		2013
Rental Revenue	$	55,512,000	$	46,880,000
Reimbursement Revenue	$	9,160,000	$	7,727,000
Lease Termination Income	$	1,183,000	$	691,000
Net Operating Income (NOI) (1)	$	53,355,000	$	45,378,000
Total Expenses	$	35,229,000	$	29,609,000
Interest and Dividend Income	$	3,883,000	$	3,886,000
Gain on Sale of Securities Transactions, net	$	2,167,000	$	7,133,000
Income from Continuing Operations	$	19,845,000	$	21,104,000
Income from Discontinued Operations	$	-0-	$	292,000
Net Income Attributable to Common Shareholders	$	11,238,000	$	12,788,000
Net Income Attributable to Common Shareholders Per Diluted Common Share	$	0.23	$	0.30
Core FFO (1)	$	28,977,000	$	27,378,000
Core FFO per Diluted Common Share (1)	$	0.58	$	0.65
AFFO (1)	$	25,801,000	$	19,522,000
AFFO per Diluted Common Share (1)	$	0.52	$	0.46
Weighted Avg. Diluted Common Shares Outstanding		49,925,000		42,432,000

 

 

 

 

Fourth Quarter FY 2014 & FY 2014 Supplemental of Monmouth Real Estate Investment Corp. Page 19 of 21

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

		September 30, 2014		September 30, 2013
Net Real Estate Investments	$	636,923,000	$	536,799,000
Securities Available for Sale at Fair Value	$	59,311,000	$	45,452,000
Total Assets	$	743,757,000	$	617,241,000
Mortgage Notes Payable	$	287,796,000	$	250,093,000
Loans Payable	$	25,200,000	$	22,200,000
Total Shareholders’ Equity	$	420,631,000	$	335,915,000

 

Michael P. Landy, President and CEO, commented on the results for the fiscal year 2014,

 

“Monmouth continued to successfully grow our high quality portfolio and build long-term value for our shareholders. During the year, the Company accomplished the following:

 

·

Acquired 1.5 million square feet of high quality industrial space at an aggregate cost of $97.6 million resulting in a 17% increase in our gross leasable area

·

Completed seven property expansions totaling $23.2 million and is in the process of completing several additional expansions

·

Re-leased 291,000 square feet including 230,000 square feet in lease renewals, representing 66% of fiscal 2014 lease expirations

·

Maintained an industrial sector leading occupancy rate of 95.9%

·

Raised approximately $65.1 million in net proceeds through a public offering of 8.1 million shares of the Company’s Common Stock

·

Raised approximately $38.1 million in equity through the DRIP

·

Increased our total market capitalization 27% to $1.0 billion at fiscal yearend

·

Increased Net Operating Income 18% to $53.4 million

·

Generated AFFO per share growth of 13%

·

Entered into commitments to acquire an additional 3.8 million square feet of high quality industrial space in fiscal 2015 and fiscal 2016, of which 600,000 square feet has been acquired thus far in fiscal 2015

·

Outperformed the broad REIT market by generating an 18.7% total return versus a 13.3% total return for the RMS.”

Mr. Landy stated, “Our business model of investing in net-leased industrial properties on long-term leases to investment grade tenants continued to deliver strong performance. AFFO for the full fiscal year increased by 13%, from $0.46 per share last year to $0.52 this year. During fiscal 2014 we continued to keep our properties well leased and ended the year with an occupancy rate of 95.9%.”

 

“Over the course of fiscal 2014, we acquired approximately 1.5 million square feet of high quality industrial space at an aggregate cost of $97.6 million, representing a 17% increase in our gross leasable area. In keeping with our long-term business plan, this growth was achieved by purchasing well-located, new built-to-suit buildings, leased to strong credit tenants.”

 

“Subsequent to yearend, the Company acquired four new built-to-suit properties containing a total of 559,000 square feet for a total of $40.3 million. This brings our current portfolio to a total of 86 properties containing 11.8 million rentable square feet, geographically diversified across 28 states.”

 

“We are very excited about our best in class acquisition pipeline, which now contains nine new build-to-suit properties consisting of 3.2 million square feet, representing $266 million in total acquisitions scheduled to close over the next several quarters.”

 

Monmouth Real Estate Investment Corporation will host its Fourth Quarter and Fiscal Year-End 2014 Financial Results Webcast and Conference Call. Senior management will discuss the results, current market conditions and future outlook on Thursday, December 11, 2014 at 10:00 a.m. Eastern Time.

 

The Company’s Fourth Quarter and Fiscal Year-End 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 877-510-5852 (domestically) or 412-902-4138 (internationally).

 

Fourth Quarter FY 2014 & FY 2014 Supplemental of Monmouth Real Estate Investment Corp. Page 20 of 21

The replay of the conference call will be available at 12:00 p.m. Eastern Time on Thursday, December 11, 2014. It will be available until February 1, 2015, and can be accessed by dialing toll free 877-344-7529 (domestically) and 412-317-0088 (internationally) and entering the passcode 10052024. 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-six properties located in twenty-eight states, containing a total of approximately 11.8 million rentable square feet. In addition, the Company owns a portfolio of REIT securities.

 

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-U.S. 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 twelve months ended September 30, 2014 and 2013 are calculated as follows:

 

	Three Months Ended				Twelve Months Ended
	9/30/2014		9/30/2013		9/30/2014		9/30/2013
Net Income Attributable to Common Shareholders	$3,053,000		$1,712,000		$11,238,000		$12,788,000
Depreciation Expense (including Discontinued Operations)	4,129,000		3,281,000		15,909,000		12,877,000
Amortization of Intangible Assets	338,000		361,000		1,348,000		1,544,000
Gain on Sale of Investment Property	-0-		-0-		-0-		(346,000)
FFO Attributable to Common Shareholders	7,520,000		5,354,000		28,495,000		26,863,000
Acquisition Costs	19,000		55,000		482,000		515,000
Core FFO Attributable to Common Shareholders	$7,539,000		$5,409,000		$28,977,000		$27,378,000

 

The Company’s Core FFO, excluding the net Gain on Securities Transactions for the three and twelve months ended September 30, 2014 and 2013 are calculated as follows:

 

	Three Months Ended				Twelve Months Ended
	9/30/2014		9/30/2013		9/30/2014		9/30/2013
Core FFO Attributable to Common Shareholders	$7,539,000		$5,409,000		$28,977,000		$27,378,000
Less: Gain on Sale of Securities Transactions, net	684,000		157,000		2,167,000		7,133,000
Core FFO, excluding net Gain on Sale of Securities Transactions Attributable to Common Shareholders	$6,855,000		$5,252,000		$26,810,000		$20,245,000

 

The following are the Cash Flows provided (used) by Operating, Investing and Financing Activities for the twelve months ended September 30, 2014 and 2013:

	Twelve Months Ended
	09/30/2014		09/30/2013
Operating Activities	$34,775,000		$27,515,000
Investing Activities	(131,794,000)		(60,351,000)
Financing Activities	105,090,000		20,589,000

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Fourth Quarter FY 2014 & FY 2014 Supplemental of Monmouth Real Estate Investment Corp. Page 21 of 21