Attached files
| file | filename |
|---|---|
| 8-K - MONMOUTH REAL ESTATE INVESTMENT CORP | form8-k.htm |
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 Property NOI, Same Property 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 America. Please see page 19 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.
| March
31, 2016 | September
30, 2015 | |||||||
| (unaudited) | ||||||||
| ASSETS | ||||||||
| Real Estate Investments: | ||||||||
| Land | $ | 144,885,315 | $ | 134,160,315 | ||||
| Buildings and Improvements | 874,477,994 | 807,619,001 | ||||||
| Total Real Estate Investments | 1,019,363,309 | 941,779,316 | ||||||
| Accumulated Depreciation | (136,359,705 | ) | (124,978,211 | ) | ||||
| Net Real Estate Investments | 883,003,604 | 816,801,105 | ||||||
| Cash and Cash Equivalents | 9,934,618 | 12,073,909 | ||||||
| Securities Available for Sale at Fair Value | 68,646,996 | 54,541,237 | ||||||
| Tenant and Other Receivables | 1,148,035 | 783,052 | ||||||
| Deferred Rent Receivable | 6,027,130 | 5,205,295 | ||||||
| Prepaid Expenses | 6,772,544 | 3,931,616 | ||||||
| Financing Costs, net of Accumulated Amortization of $3,720,052 and $3,247,014, respectively | 6,130,202 | 5,987,911 | ||||||
| Capitalized Lease Costs, net of Accumulated Amortization of $2,915,276 and $2,534,521, respectively | 4,241,705 | 3,407,432 | ||||||
| Intangible Assets, net of Accumulated Amortization of $11,797,054 and $11,153,855, respectively | 5,554,799 | 6,115,134 | ||||||
| Other Assets | 8,195,829 | 7,145,251 | ||||||
| TOTAL ASSETS | $ | 999,655,462 | $ | 915,991,942 | ||||
| LIABILITIES AND SHAREHOLDERS’ EQUITY | ||||||||
| Liabilities: | ||||||||
| Mortgage Notes Payable | $ | 406,425,916 | $ | 373,991,174 | ||||
| Loans Payable | 99,916,883 | 85,041,386 | ||||||
| Accounts Payable and Accrued Expenses | 5,470,111 | 3,113,274 | ||||||
| Other Liabilities | 11,036,251 | 7,835,468 | ||||||
| Total Liabilities | 522,849,161 | 469,981,302 | ||||||
| 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, 2016 and September 30, 2015 | 53,493,750 | 53,493,750 | ||||||
| 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, 2016 and September 30, 2015 | 57,500,000 | 57,500,000 | ||||||
| Common Stock – $0.01 Par Value Per Share: 200,000,000 Shares Authorized as of March 31, 2016 and September 30, 2015; 65,588,024 and 62,123,454 Shares Issued and Outstanding as of March 31, 2016 and September 30, 2015 | 655,880 | 621,235 | ||||||
| Excess Stock – $0.01 Par Value Per Share: 200,000,000 Shares Authorized as of March 31, 2016 and September 30, 2015; No Shares Issued or Outstanding as of March 31, 2016 and September 30, 2015 | -0- | -0- | ||||||
| Additional Paid-In Capital | 363,096,308 | 339,837,258 | ||||||
| Accumulated Other Comprehensive Income (Loss) | 2,060,363 | (5,441,603 | ) | |||||
| Undistributed Income | -0- | -0- | ||||||
| Total Shareholders’ Equity | 476,806,301 | 446,010,640 | ||||||
| TOTAL LIABILITIES & SHAREHOLDERS’ EQUITY | $ | 999,655,462 | $ | 915,991,942 | ||||
Second Quarter FY 2016 Supplemental of Monmouth Real Estate Investment Corp. Page 3 of 22
Consolidated Statements of Income
(unaudited)
| Three Months Ended | Six Months Ended | |||||||||||||||
| 3/31/2016 | 3/31/2015 | 3/31/2016 | 3/31/2015 | |||||||||||||
| INCOME: | ||||||||||||||||
| Rental Revenue | $ | 19,610,868 | $ | 16,205,524 | $ | 38,675,787 | $ | 31,635,739 | ||||||||
| Reimbursement Revenue | 3,355,970 | 2,653,072 | 6,550,413 | 4,900,387 | ||||||||||||
| Lease Termination Income | -0- | -0- | -0- | 238,625 | ||||||||||||
| TOTAL INCOME | 22,966,838 | 18,858,596 | 45,226,200 | 36,774,751 | ||||||||||||
| EXPENSES: | ||||||||||||||||
| Real Estate Taxes | 2,675,677 | 1,951,451 | 5,047,813 | 3,940,194 | ||||||||||||
| Operating Expenses | 1,103,358 | 999,614 | 2,334,723 | 2,001,862 | ||||||||||||
| General & Administrative Expenses | 2,221,445 | 1,567,725 | 3,557,409 | 2,808,310 | ||||||||||||
| Acquisition Costs | 265,012 | 471,115 | 410,597 | 862,684 | ||||||||||||
| Depreciation | 5,786,062 | 4,785,948 | 11,381,494 | 9,270,216 | ||||||||||||
| Amortization of Capitalized Lease Costs and Intangible Assets | 486,360 | 529,820 | 972,971 | 1,005,315 | ||||||||||||
| TOTAL EXPENSES | 12,537,914 | 10,305,673 | 23,705,007 | 19,888,581 | ||||||||||||
| OTHER INCOME (EXPENSE): | ||||||||||||||||
| Interest and Dividend Income | 1,379,668 | 962,948 | 2,564,321 | 1,998,405 | ||||||||||||
| Gain on Sale of Securities Transactions, net | 878,962 | -0- | 887,342 | 377,087 | ||||||||||||
| Interest Expense | (5,316,936 | ) | (4,493,933 | ) | (10,429,216 | ) | (8,623,498 | ) | ||||||||
| Amortization of Financing Costs | (238,671 | ) | (203,258 | ) | (473,038 | ) | (395,832 | ) | ||||||||
| TOTAL OTHER INCOME (EXPENSE) | (3,296,977 | ) | (3,734,243 | ) | (7,450,591 | ) | (6,643,838 | ) | ||||||||
| NET INCOME | 7,131,947 | 4,818,680 | 14,070,602 | 10,242,332 | ||||||||||||
| Less: Preferred Dividend | 2,151,758 | 2,151,758 | 4,303,516 | 4,303,516 | ||||||||||||
| NET INCOME ATTRIBUTABLE TO COMMON SHAREHOLDERS | $ | 4,980,189 | $ | 2,666,922 | $ | 9,767,086 | $ | 5,938,816 | ||||||||
Second Quarter FY 2016 Supplemental of Monmouth Real Estate Investment Corp. Page 4 of 22
NOI, EBITDA, FFO, Core FFO and AFFO Reconciliations
(unaudited)
| Three Months Ended | Six Months Ended | |||||||||||||||
| 3/31/2016 | 3/31/2015 | 3/31/2016 | 3/31/2015 | |||||||||||||
| Revenues | ||||||||||||||||
| Rental Revenue | $ | 19,610,868 | $ | 16,205,524 | $ | 38,675,787 | $ | 31,635,739 | ||||||||
| Reimbursement Revenue | 3,355,970 | 2,653,072 | 6,550,413 | 4,900,387 | ||||||||||||
| Total Rental and Reimbursement Revenue | 22,966,838 | 18,858,596 | 45,226,200 | 36,536,126 | ||||||||||||
| Expenses | ||||||||||||||||
| Real Estate Taxes | 2,675,677 | 1,951,451 | 5,047,813 | 3,940,194 | ||||||||||||
| Operating Expenses | 1,103,358 | 999,614 | 2,334,723 | 2,001,862 | ||||||||||||
| Total Expenses | 3,779,035 | 2,951,065 | 7,382,536 | 5,942,056 | ||||||||||||
| Net Operating Income - NOI | 19,187,803 | 15,907,531 | 37,843,664 | 30,594,070 | ||||||||||||
| Lease Termination Income | -0- | -0- | -0- | 238,625 | ||||||||||||
| Interest and Dividend Income | 1,379,668 | 962,948 | 2,564,321 | 1,998,405 | ||||||||||||
| Net Amortization of Acquired Above and Below Market Lease Revenue | 25,492 | (1,883 | ) | 50,984 | 8,767 | |||||||||||
| General & Administrative Expenses | (2,221,445 | ) | (1,567,725 | ) | (3,557,409 | ) | (2,808,310 | ) | ||||||||
| EBITDA | 18,371,518 | 15,300,871 | 36,901,560 | 30,031,557 | ||||||||||||
| Interest Expense | (5,316,936 | ) | (4,493,933 | ) | (10,429,216 | ) | (8,623,498 | ) | ||||||||
| Gain on Sale of Securities Transactions, net | 878,962 | -0- | 887,342 | 377,087 | ||||||||||||
| Acquisition Costs | (265,012 | ) | (471,115 | ) | (410,597 | ) | (862,684 | ) | ||||||||
| Preferred Dividend | (2,151,758 | ) | (2,151,758 | ) | (4,303,516 | ) | (4,303,516 | ) | ||||||||
| Depreciation of Corporate Office Tenant Improvements | (29,118 | ) | (33,511 | ) | (57,089 | ) | (33,511 | ) | ||||||||
| Amortization of Financing Costs | (238,671 | ) | (203,258 | ) | (473,038 | ) | (395,832 | ) | ||||||||
| Funds From Operations - FFO | 11,248,985 | 7,947,296 | 22,115,446 | 16,189,603 | ||||||||||||
| Depreciation (excluding corporate office) | (5,756,944 | ) | (4,752,437 | ) | (11,324,405 | ) | (9,236,705 | ) | ||||||||
| Amortization of Capitalized Lease Costs and Intangible Assets | (511,852 | ) | (527,937 | ) | (1,023,955 | ) | (1,014,082 | ) | ||||||||
| Net Income Attributable to Common Shareholders | 4,980,189 | 2,666,922 | 9,767,086 | 5,938,816 | ||||||||||||
| Funds From Operations - FFO | 11,248,985 | 7,947,296 | 22,115,446 | 16,189,603 | ||||||||||||
| Acquisition Costs | 265,012 | 471,115 | 410,597 | 862,684 | ||||||||||||
| Core Funds From Operations - Core FFO | 11,513,997 | 8,418,411 | 22,526,043 | 17,052,287 | ||||||||||||
| Lease Termination Income | -0- | -0- | -0- | (238,625 | ) | |||||||||||
| Gain on Sale of Securities Transactions, net | (878,962 | ) | -0- | (887,342 | ) | (377,087 | ) | |||||||||
| Stock Compensation Expense | 101,968 | 96,673 | 206,928 | 186,905 | ||||||||||||
| Depreciation of Corporate Office Tenant Improvements | 29,118 | 33,511 | 57,089 | 33,511 | ||||||||||||
| Amortization of Financing Costs | 238,671 | 203,258 | 473,038 | 395,832 | ||||||||||||
| U.S. GAAP Straight-lined Rent Adjustment | (512,170 | ) | (531,647 | ) | (821,835 | ) | (863,626 | ) | ||||||||
| Recurring Capital Expenditures | (147,861 | ) | (82,297 | ) | (484,052 | ) | (255,797 | ) | ||||||||
| Non-recurring other expense | 400,000 | -0- | 400,000 | -0- | ||||||||||||
| Adjusted Funds From Operations - AFFO | 10,744,761 | 8,137,909 | 21,469,869 | 15,933,400 | ||||||||||||
| EBITDA | 18,371,518 | 15,300,871 | 36,901,560 | 30,031,557 | ||||||||||||
| Lease Termination Income | -0- | -0- | -0- | (238,625 | ) | |||||||||||
| Interest Expense | (5,316,936 | ) | (4,493,933 | ) | (10,429,216 | ) | (8,623,498 | ) | ||||||||
| Preferred Dividend | (2,151,758 | ) | (2,151,758 | ) | (4,303,516 | ) | (4,303,516 | ) | ||||||||
| Stock Compensation Expense | 101,968 | 96,673 | 206,928 | 186,905 | ||||||||||||
| U.S. GAAP Straight-lined Rent Adjustment | (512,170 | ) | (531,647 | ) | (821,835 | ) | (863,626 | ) | ||||||||
| Recurring Capital Expenditures | (147,861 | ) | (82,297 | ) | (484,052 | ) | (255,797 | ) | ||||||||
| Non-recurring other expense | 400,000 | -0- | 400,000 | -0- | ||||||||||||
| Adjusted Funds From Operations - AFFO | $ | 10,744,761 | $ | 8,137,909 | $ | 21,469,869 | $ | 15,933,400 | ||||||||
Second Quarter FY 2016 Supplemental of Monmouth Real Estate Investment Corp. Page 5 of 22
(unaudited)
| Three Months Ended | Six Months Ended | |||||||||||||||
| 3/31/2016 | 3/31/2015 | 3/31/2016 | 3/31/2015 | |||||||||||||
| Weighted Average Common Shares Outstanding | ||||||||||||||||
| Basic | 64,657,058 | 58,308,728 | 63,757,087 | 57,793,469 | ||||||||||||
| Diluted | 64,736,469 | 58,462,729 | 63,828,310 | 57,936,743 | ||||||||||||
| Net Operating Income – NOI | $ | 19,187,803 | $ | 15,907,531 | $ | 37,843,664 | $ | 30,594,070 | ||||||||
| Basic | $ | 0.30 | $ | 0.27 | $ | 0.59 | $ | 0.53 | ||||||||
| Diluted | 0.30 | 0.27 | 0.59 | 0.53 | ||||||||||||
| Net Income Attributable to Common Shareholders | $ | 4,980,189 | $ | 2,666,922 | $ | 9,767,086 | $ | 5,938,816 | ||||||||
| Basic | $ | 0.08 | $ | 0.04 | $ | 0.15 | $ | 0.10 | ||||||||
| Diluted | 0.08 | 0.04 | 0.15 | 0.10 | ||||||||||||
| Funds From Operations – FFO | $ | 11,248,985 | $ | 7,947,296 | $ | 22,115,446 | $ | 16,189,603 | ||||||||
| Basic | $ | 0.17 | $ | 0.14 | $ | 0.35 | $ | 0.28 | ||||||||
| Diluted | 0.17 | 0.14 | 0.35 | 0.28 | ||||||||||||
| Core Funds From Operations - Core FFO | $ | 11,513,997 | $ | 8,418,411 | $ | 22,526,043 | $ | 17,052,287 | ||||||||
| Basic | $ | 0.18 | $ | 0.14 | $ | 0.35 | $ | 0.29 | ||||||||
| Diluted | 0.18 | 0.14 | 0.35 | 0.29 | ||||||||||||
| Core FFO Excluding Gains on Securities Transactions and Lease Termination Income, net | $ | 10,635,035 | $ | 8,418,411 | $ | 21,638,701 | $ | 16,436,575 | ||||||||
| Basic | $ | 0.16 | $ | 0.14 | $ | 0.34 | $ | 0.28 | ||||||||
| Diluted | 0.16 | 0.14 | 0.34 | 0.28 | ||||||||||||
| Adjusted Funds From Operations - AFFO | $ | 10,744,761 | $ | 8,137,909 | $ | 21,469,869 | $ | 15,933,400 | ||||||||
| Basic | $ | 0.17 | $ | 0.14 | $ | 0.34 | $ | 0.28 | ||||||||
| Diluted | 0.17 | 0.14 | 0.34 | 0.28 | ||||||||||||
| Dividends Declared per Common Share | $ | 0.16 | $ | 0.15 | $ | 0.32 | $ | 0.30 | ||||||||
Second Quarter FY 2016 Supplemental of Monmouth Real Estate Investment Corp. Page 6 of 22
| Three Months Ended | ||||||||||||||||||||||
| 3/31/2016 | 3/31/15 | Change | Change % | |||||||||||||||||||
| Total Square Feet / Total Properties | 14,550,855/94 | 12,952,617/89 | 1,598,238 | 12.3 | % | |||||||||||||||||
| Occupancy Percentage at Quarter End | 99.6 | % | 97.5 | % | 210 bps | 2.2 | % | |||||||||||||||
| Same Property Square Feet / Number of Same Properties | ||||||||||||||||||||||
| 11,896,183/83 | ||||||||||||||||||||||
| Same Property Occupancy Percentage at Quarter End | 99.5 | % | 97.2 | % | 230 bps | 2.4 | % | |||||||||||||||
| Same Property Net Operating Income (NOI) (GAAP) | $ | 15,291,323 | $ | 14,943,386 | $ | 347,937 | 2.3 | % | ||||||||||||||
| Reversal of U.S. GAAP Straight-Line Rent Adjustment | (373,593 | ) | (531,646 | ) | 158,053 | |||||||||||||||||
| Same Property Cash NOI (Cash) | $ | 14,917,730 | $ | 14,411,740 | $ | 505,990 | 3.5 | % | ||||||||||||||
Same Property Statistics include all properties owned during the entire periods presented with the exclusion of properties expanded during these periods.
The 2.3% increase, amounting to $347,937 in Same Property NOI (GAAP), consists of 26% or $89,228 generated by increased NOI from occupied properties and the remaining 74% or $258,709 attributable to increased NOI from filling previously vacant properties.
The 3.5% increase, amounting to $505,990 in Same Property Cash NOI, consists of 64% or $324,796 generated by increased NOI from occupied properties and the remaining 36% or $181,194 attributable to increased NOI from filling previously vacant properties.
| Reconciliation of Same Property NOI to Total NOI | Three Months Ended | |||||||||||||||
| 3/31/2016 | 3/31/15 | Change | Change % | |||||||||||||
| Same Property NOI (GAAP) | $ | 15,291,323 | $ | 14,943,386 | $ | 347,942 | 2.3 | % | ||||||||
| NOI of properties purchased subsequent to January 1, 2015( eight properties for fiscal 2016 and two properties for fiscal 2015) | 3,034,189 | 218,438 | ||||||||||||||
| NOI of properties expanded subsequent to January 1, 2015 (three properties for fiscal 2016 and 2015) | 862,291 | 599,327 | ||||||||||||||
| NOI of property sold subsequent to January 1, 2015 (one property for fiscal 2015) | -0- | 146,380 | ||||||||||||||
| Total NOI | $ | 19,187,803 | $ | 15,907,531 | $ | 3,280,277 | 20.6 | % | ||||||||
Second Quarter FY 2016 Supplemental of Monmouth Real Estate Investment Corp. Page 7 of 22
Same Property Statistics
| Six Months Ended | ||||||||||||||||||||||
| 3/31/2016 | 3/31/15 | Change | Change % | |||||||||||||||||||
| Total Square Feet / Total Properties | 14,550,855/94 | 12,952,617/89 | 1,598,238 | 12.3 | % | |||||||||||||||||
| Occupancy Percentage at Quarter End | 99.6 | % | 97.5 | % | 210 bps | 2.2 | % | |||||||||||||||
| Same Property Square Feet / Number of Same Properties | ||||||||||||||||||||||
| 10,481,248/77 | ||||||||||||||||||||||
| Same Property Occupancy Percentage at Quarter End | 99.4 | % | 96.9 | % | 250 bps | 2.6 | % | |||||||||||||||
| Same Property Net Operating Income (NOI) (GAAP) | $ | 27,443,892 | $ | 26,555,709 | $ | 888,1838 | 3.3 | % | ||||||||||||||
| Reversal of U.S. GAAP Straight-Line Rent Adjustment | (466,417 | ) | (647,571 | ) | 181,154 | |||||||||||||||||
| Same Property Cash NOI (Cash) | $ | 26,977,475 | $ | 25,908,138 | $ | 1,069,3371 | 4.1 | % | ||||||||||||||
Same Property Statistics include all properties owned during the entire periods presented with the exclusion of properties expanded during these periods.
The 3.3% increase, amounting to $888,183 in Same Property NOI (GAAP), consists of 53% or $472,585 generated by increased NOI from occupied properties and the remaining 47% or $415,598 attributable to increased NOI from filling previously vacant properties.
The 4.1% increase, amounting to $1,069,337 in Same Property Cash NOI, consists of 69% or $732,595 generated by increased NOI from occupied properties and the remaining 31% or $336,742 attributable to increased NOI from filling previously vacant properties.
| Reconciliation of Same Property NOI to Total NOI | Six Months Ended | |||||||||||||||
| 3/31/2016 | 3/31/15 | Change | Change % | |||||||||||||
| Same Property NOI (GAAP) | $ | 27,443,892 | $ | 26,555,709 | $ | 888,183 | 3.3 | % | ||||||||
| NOI of properties purchased subsequent to October 1, 2014 (thirteen properties for fiscal 2016 and seven properties for fiscal 2015) | 8,203,219 | 2,187,807 | ||||||||||||||
| NOI of properties expanded subsequent to October 1, 2014 (four properties for fiscal 2016 and 2015) | 2,196,553 | 1,586,746 | ||||||||||||||
| NOI of property sold subsequent to October 1, 2014 (one property for fiscal 2015) | -0- | 263,808 | ||||||||||||||
| Total NOI | $ | 37,843,664 | $ | 30,594,070 | $ | 7,249,594 | 23.7 | % | ||||||||
Second Quarter FY 2016 Supplemental of Monmouth Real Estate Investment Corp. Page 8 of 22
Consolidated Statements of Cash Flows
(unaudited)
| Six Months Ended | ||||||||
| 3/31/2016 | 3/31/2015 | |||||||
| CASH FLOWS FROM OPERATING ACTIVITIES | ||||||||
| Net Income | $ | 14,070,602 | $ | 10,242,332 | ||||
| Noncash Items Included in Net Income: | ||||||||
| Depreciation & Amortization | 12,827,503 | 10,678,415 | ||||||
| Stock Based Compensation Expense | 206,928 | 186,905 | ||||||
| Gain on Sale of Securities Transactions, net | (887,342 | ) | (377,087 | ) | ||||
| Changes In: | ||||||||
| Tenant, Deferred Rent and Other Receivables | (1,135,834 | ) | (618,061 | ) | ||||
| Prepaid Expenses | (2,840,928 | ) | (2,664,189 | ) | ||||
| Other Assets and Capitalized Lease Costs | (2,327,353 | ) | (892,206 | ) | ||||
| Accounts Payable, Accrued Expenses and Other Liabilities | 8,514,594 | 1,297,741 | ||||||
| NET CASH PROVIDED BY OPERATING ACTIVITIES | 28,428,170 | 17,853,850 | ||||||
| CASH FLOWS FROM INVESTING ACTIVITIES | ||||||||
| Purchase of Real Estate and Intangible Assets | (70,418,761 | ) | (112,400,079 | ) | ||||
| Capital and Land Site Improvements | (10,193,323 | ) | (5,394,632 | ) | ||||
| Return of Deposits on Real Estate | 900,000 | 1,900,000 | ||||||
| Deposits Paid on Acquisitions of Real Estate | (850,000 | ) | (2,000,000 | ) | ||||
| Proceeds from Sale of Securities Available for Sale | 7,416,459 | 9,584,512 | ||||||
| Purchase of Securities Available for Sale | (13,132,910 | ) | (1,244,580 | ) | ||||
| NET CASH USED IN INVESTING ACTIVITIES | (86,278,535 | ) | (109,554,779 | ) | ||||
| CASH FLOWS FROM FINANCING ACTIVITIES | ||||||||
| Net Proceeds from Loans Payable | 14,875,497 | 39,961,669 | ||||||
| Proceeds from Mortgage Notes Payable | 46,670,000 | 73,186,828 | ||||||
| Principal Payments on Mortgage Notes Payable | (14,235,258 | ) | (13,814,294 | ) | ||||
| Financing Costs Paid on Debt | (615,329 | ) | (1,214,592 | ) | ||||
| Proceeds from the Exercise of Stock Options | 1,412,050 | 612,409 | ||||||
| Proceeds from Issuance of Common Stock in the DRIP, net of Dividend Reinvestments | 28,200,304 | 15,531,409 | ||||||
| Preferred Dividends Paid | (4,303,516 | ) | (4,303,516 | ) | ||||
| Common Dividends Paid, net of Reinvestments | (16,292,674 | ) | (13,232,331 | ) | ||||
| NET CASH PROVIDED BY FINANCING ACTIVITIES | 55,711,074 | 96,727,582 | ||||||
| NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS | (2,139,291 | ) | 5,026,653 | |||||
| CASH AND CASH EQUIVALENTS - BEGINNING OF PERIOD | 12,073,909 | 20,474,661 | ||||||
| CASH AND CASH EQUIVALENTS - END OF PERIOD | $ | 9,934,618 | $ | 25,501,314 | ||||
Second Quarter FY 2016 Supplemental of Monmouth Real Estate Investment Corp. Page 9 of 22
Capital Structure and Leverage Ratios
(unaudited)
| As of | As of | As of | ||||||||||
| 3/31/2016 | 3/31/2015 | 9/30/2015 | ||||||||||
| Mortgage Notes Payable | $ | 406,425,916 | $ | 347,168,540 | $ | 373,991,174 | ||||||
| Loans Payable | 99,916,883 | 65,161,669 | 85,041,386 | |||||||||
| Total Debt | 506,342,799 | 412,330,209 | 459,032,560 | |||||||||
| 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 | 365,812,551 | 319,832,077 | 335,016,890 | |||||||||
| Total Shareholders’ Equity | 476,806,301 | 430,825,827 | 446,010,640 | |||||||||
| Total Book Capitalization | 983,149,100 | 843,156,036 | 905,043,200 | |||||||||
| Accumulated Depreciation | 136,359,705 | 116,274,401 | 124,978,211 | |||||||||
| Total Undepreciated Book Capitalization | $ | 1,119,508,805 | $ | 959,430,437 | $ | 1,030,021,411 | ||||||
| Shares Outstanding | 65,588,024 | 58,937,495 | 62,123,454 | |||||||||
| Market Price Per Share | $ | 11.89 | $ | 11.11 | $ | 9.75 | ||||||
| Equity Market Capitalization | $ | 779,841,605 | $ | 654,795,569 | $ | 605,703,677 | ||||||
| Total Debt | 506,342,799 | 412,330,209 | 459,032,560 | |||||||||
| Preferred | 110,993,750 | 110,993,750 | 110,993,750 | |||||||||
| Total Market Capitalization | $ | 1,397,178,154 | $ | 1,178,119,528 | $ | 1,175,729,987 | ||||||
| Total Debt | $ | 506,342,799 | $ | 412,330,209 | $ | 459,032,560 | ||||||
| less: Cash and Cash Equivalents | 9,934,618 | 25,501,314 | 12,073,909 | |||||||||
| Net Debt | $ | 496,408,181 | $ | 386,828,895 | $ | 446,958,651 | ||||||
| less: Securities Available for Sale at Fair Value (Securities) | 68,646,996 | 52,506,095 | 54,541,237 | |||||||||
| Net Debt Less Securities | $ | 427,761,185 | $ | 334,322,800 | $ | 392,417,414 | ||||||
| Net Debt / Undepreciated Book Capitalization | 44.3 | % | 40.3 | % | 43.4 | % | ||||||
| Net Debt / Total Market Capitalization | 35.5 | % | 32.8 | % | 38.0 | % | ||||||
| Net Debt Plus Preferred / Total Market Capitalization | 43.5 | % | 42.3 | % | 47.5 | % | ||||||
| Net Debt Less Securities / Undepreciated Book Capitalization | 38.2 | % | 34.8 | % | 38.1 | % | ||||||
| Net Debt Less Securities / Total Market Capitalization | 30.6 | % | 28.4 | % | 33.4 | % | ||||||
| Net Debt Less Securities Plus Preferred / Total Market Capitalization | 38.6 | % | 37.8 | % | 42.8 | % | ||||||
| Weighted Average Interest Rate on Fixed Rate Debt | 4.61 | % | 5.05 | % | 4.85 | % | ||||||
Second Quarter FY 2016 Supplemental of Monmouth Real Estate Investment Corp. Page 10 of 22
Capital Structure and Leverage Ratios continued
(unaudited)
| Fiscal Year | ||||||||||||||||||||
| Three Months Ended | Six Months Ended | Ended | ||||||||||||||||||
| 3/31/2016 | 3/31/2015 | 3/31/2016 | 3/31/2015 | 9/30/2015 | ||||||||||||||||
| Net Income | $ | 7,131,947 | $ | 4,818,680 | $ | 14,070,602 | $ | 10,242,332 | $ | 25,605,815 | ||||||||||
| plus: Depreciation & Amortization | 6,511,093 | 5,519,026 | 12,827,503 | 10,671,363 | 23,058,744 | |||||||||||||||
| plus: Interest Expense | 5,316,936 | 4,493,933 | 10,429,216 | 8,623,498 | 18,558,150 | |||||||||||||||
| plus: Acquisition Costs | 265,012 | 471,115 | 410,597 | 862,684 | 1,546,088 | |||||||||||||||
| plus: Net Amortization of Acquired Above and Below Market Lease Revenue | 25,492 | (1,883 | ) | 50,984 | 8,767 | 59,750 | ||||||||||||||
| less: Gain on Sale of Securities Transactions, net | (878,962 | ) | -0- | (887,342 | ) | (377,087 | ) | (805,513 | ) | |||||||||||
| less: Gain on Sale of Real Estate Investment | -0- | -0- | -0- | -0- | (5,021,242 | ) | ||||||||||||||
| EBITDA | $ | 18,371,518 | $ | 15,300,871 | $ | 36,901,560 | $ | 30,031,557 | $ | 63,001,792 | ||||||||||
| Interest Expense | $ | 5,316,936 | $ | 4,493,933 | $ | 10,429,216 | $ | 8,623,498 | 18,558,150 | |||||||||||
| Preferred Dividends Paid | 2,151,758 | 2,151,758 | 4,303,516 | 4,303,516 | 8,607,032 | |||||||||||||||
| Total Fixed Charges | $ | 7,468,694 | $ | 6,645,691 | $ | 14,732,732 | $ | 12,927,014 | $ | 27,165,182 | ||||||||||
| Interest Coverage | 3.5 x | 3.4 x | 3.5 x | 3.5 x | 3.4 x | |||||||||||||||
| Fixed Charge Coverage | 2.5 x | 2.3 x | 2.5 x | 2.3 x | 2.3 x | |||||||||||||||
| Net Debt | $ | 496,408,181 | $ | 386,828,895 | $ | 496,408,181 | $ | 386,828,895 | $ | 446,958,651 | ||||||||||
| Net Debt Less Securities | 427,761,185 | 334,322,800 | 427,761,185 | 334,322,800 | 392,417,414 | |||||||||||||||
| Annualized EBITDA | 73,486,072 | 61,203,484 | 73,803,120 | 60,063,114 | 63,001,792 | |||||||||||||||
| Net Debt / EBITDA | 6.8 x | 6.3 x | 6.7 x | 6.4 x | 7.1 x | |||||||||||||||
| Net Debt Less Securities / EBITDA | 5.8 x | 5.5 x | 5.8 x | 5.6 x | 6.2 x | |||||||||||||||
| Net Debt + Preferred / EBITDA | 8.3 x | 8.1 x | 8.2 x | 8.3 x | 8.9 x | |||||||||||||||
| Net Debt Less Securities + Preferred / EBITDA | 7.3 x | 7.3 x | 7.3 x | 7.4 x | 8.0 x | |||||||||||||||
Second Quarter FY 2016 Supplemental of Monmouth Real Estate Investment Corp. Page 11 of 22
(unaudited)
| Loans | % of | |||||||||||||||
| Fiscal Year Ended | Mortgages | Payable | Total | Total | ||||||||||||
| 2016 | 22,137,558 | 126,229 | 22,263,787 | 4.4 | % | |||||||||||
| 2017 | 59,882,940 | 4,790,654 | 64,673,594 | 12.8 | % | |||||||||||
| 2018 | 38,943,556 | -0- | 38,943,556 | 7.7 | % | |||||||||||
| 2019 | 42,333,366 | 95,000,000 | 137,333,366 | 27.1 | % | |||||||||||
| 2020 | 23,477,791 | -0- | 23,477,791 | 4.6 | % | |||||||||||
| Thereafter | 219,650,705 | -0- | 219,650,705 | 43.4 | % | |||||||||||
| Total as of 3/31/16 | $ | 406,425,916 | $ | 99,916,883 | $ | 506,342,799 | 100.0 | % | ||||||||
| Weighted Average Interest Rate | 4.60 | % | 2.30 | % | 4.15 | % | ||||||||||
| Weighted Average Term | 9.28 yrs | 3.34 yrs | 8.10 yrs | |||||||||||||
Second Quarter FY 2016 Supplemental of Monmouth Real Estate Investment Corp. Page 12 of 22
(unaudited)
| Property | Square | Occupied Square | %
of Occupied | Annual | %
of | Rent | Undepreciated | Mortgage | ||||||||||||||||||||||||||||||||
| Tenant | Count | Footage | Footage | Sq. Ft. | Rent | Rent | Occup. | Cost | Balance | |||||||||||||||||||||||||||||||
| FedEx Ground Package System, Inc. | 34 | 5,084,939 | 5,084,939 | 34.9 | % | $ | 36,347,000 | 45.1 | % | $ | 7.15 | $ | 463,611,667 | $ | 194,442,661 | |||||||||||||||||||||||||
| FedEx Corporation | 14 | 973,413 | 973,413 | 6.7 | % | 5,407,000 | 6.7 | % | 5.55 | 71,762,529 | 16,517,070 | |||||||||||||||||||||||||||||
| FedEx Supply Chain Services, Inc. | 1 | 449,900 | 449,900 | 3.1 | % | 1,327,000 | 1.6 | % | 2.95 | 14,620,887 | 7,047,467 | |||||||||||||||||||||||||||||
| Total FedEx | 49 | 6,508,252 | 6,508,252 | 44.7 | % | 43,081,000 | 53.4 | % | 6.62 | $ | 549,995,083 | 218,007,198 | ||||||||||||||||||||||||||||
| ULTA, Inc. | 1 | 671,354 | 671,354 | 4.6 | % | 2,651,000 | 3.3 | % | 3.95 | 37,484,574 | 23,379,733 | |||||||||||||||||||||||||||||
| Milwaukee Electric Tool Corporation | 1 | 615,305 | 615,305 | 4.2 | % | 2,012,000 | 2.5 | % | 3.27 | 30,566,430 | 13,740,602 | |||||||||||||||||||||||||||||
| Jim Beam Brands Company | 1 | 599,840 | 599,840 | 4.1 | % | 2,013,000 | 2.5 | % | 3.36 | 28,000,000 | 18,719,604 | |||||||||||||||||||||||||||||
| Ralcorp Holdings, Inc. | 1 | 558,600 | 558,600 | 3.8 | % | 2,166,000 | 2.7 | % | 3.88 | 26,719,716 | 17,024,441 | |||||||||||||||||||||||||||||
| CBOCS Distribution, Inc. | 1 | 381,240 | 381,240 | 2.6 | % | 1,420,000 | 1.8 | % | 3.72 | 14,215,126 | 7,759,461 | |||||||||||||||||||||||||||||
| Best Buy Warehousing Logistics, Inc. | 1 | 368,060 | 368,060 | 2.5 | % | 1,641,000 | 2.0 | % | 4.46 | 19,600,000 | 10,713,223 | |||||||||||||||||||||||||||||
| The Coca-Cola Company/Western Container Corp. | 2 | 323,358 | 323,358 | 2.2 | % | 1,678,000 | 2.1 | % | 5.19 | 19,340,971 | 7,154,046 | |||||||||||||||||||||||||||||
| Science Applications International | 1 | 302,400 | 302,400 | 2.1 | % | 1,462,000 | 1.8 | % | 4.83 | 13,340,592 | 5,775,589 | |||||||||||||||||||||||||||||
| International Paper Company | 1 | 280,000 | 280,000 | 1.9 | % | 1,326,000 | 1.6 | % | 4.74 | 18,294,108 | 10,997,372 | |||||||||||||||||||||||||||||
| Woodstream Corporation | (C) | 1 | 256,000 | 256,000 | 1.8 | % | 896,000 | 1.1 | % | 3.50 | 8,823,781 | -0- | ||||||||||||||||||||||||||||
| United Technologies Corporation | 2 | 244,317 | 244,317 | 1.7 | % | 1,895,000 | 2.3 | % | 7.76 | 22,512,609 | 8,306,477 | |||||||||||||||||||||||||||||
| Anda Pharmaceuticals, Inc. | 1 | 234,660 | 234,660 | 1.6 | % | 1,196,000 | 1.5 | % | 5.10 | 14,550,000 | 9,029,577 | |||||||||||||||||||||||||||||
| UGN, Inc. | 1 | 232,200 | 232,200 | 1.6 | % | 1,050,000 | 1.3 | % | 4.52 | 12,937,000 | 8,297,472 | |||||||||||||||||||||||||||||
| Caterpillar Logistics Services, Inc. | 1 | 218,120 | 218,120 | 1.5 | % | 1,169,000 | 1.4 | % | 5.36 | 14,868,857 | 6,804,874 | |||||||||||||||||||||||||||||
| Anheuser-Busch, Inc. | 1 | 184,800 | 184,800 | 1.3 | % | 806,000 | 1.0 | % | 4.36 | 12,398,355 | 669,810 | |||||||||||||||||||||||||||||
| Carlisle Tire & Wheel Company | 1 | 179,280 | 179,280 | 1.2 | % | 787,000 | 1.0 | % | 4.39 | 7,225,401 | 650,600 | |||||||||||||||||||||||||||||
| NF&M International Inc. | (B) | 1 | 174,802 | 174,802 | 1.2 | % | 832,000 | 1.0 | % | 4.76 | 3,958,293 | -0- | ||||||||||||||||||||||||||||
| Home Depot USA, Inc. | 1 | 171,200 | 171,200 | 1.2 | % | 978,000 | 1.2 | % | 5.71 | 11,298,367 | -0- | |||||||||||||||||||||||||||||
| Kellogg Sales Company | 3 | 170,279 | 170,279 | 1.2 | % | 982,000 | 1.2 | % | 5.77 | 12,159,973 | 2,312,867 | |||||||||||||||||||||||||||||
| Bunzl Distribution Midcentral, Inc. | 1 | 158,417 | 158,417 | 1.1 | % | 741,000 | 0.9 | % | 4.68 | 9,600,000 | 7,032,682 | |||||||||||||||||||||||||||||
| Victory Packaging, L.P. | 1 | 148,000 | 148,000 | 1.0 | % | 470,000 | 0.6 | % | 3.18 | 5,441,876 | -0- | |||||||||||||||||||||||||||||
| Altec Industries, Inc. | (C) | 1 | 126,880 | 126,880 | 0.9 | % | 349,000 | 0.4 | % | 2.75 | 4,373,287 | -0- | ||||||||||||||||||||||||||||
| General Electric Company | 1 | 125,860 | 125,860 | 0.9 | % | 1,311,000 | 1.6 | % | 10.42 | 19,950,000 | 13,000,000 | |||||||||||||||||||||||||||||
| The American Bottling Company | 2 | 110,080 | 110,080 | 0.8 | % | 734,000 | 0.9 | % | 6.67 | 10,498,031 | 1,992,922 | |||||||||||||||||||||||||||||
| Style Crest, Inc. | 1 | 106,507 | 106,507 | 0.7 | % | 361,000 | 0.4 | % | 3.39 | 7,238,613 | -0- | |||||||||||||||||||||||||||||
| Pittsburgh Glass Works LLC. | 1 | 102,135 | 102,135 | 0.7 | % | 427,000 | 0.5 | % | 4.18 | 4,245,913 | -0- | |||||||||||||||||||||||||||||
| Holland 1916 Inc. | 1 | 95,898 | 95,898 | 0.7 | % | 341,000 | 0.4 | % | 3.56 | 7,397,881 | -0- | |||||||||||||||||||||||||||||
| National Oilwell Varco, Inc. | 1 | 91,295 | 91,295 | 0.6 | % | 746,000 | 0.9 | % | 8.17 | 8,083,107 | 3,331,850 | |||||||||||||||||||||||||||||
| Joseph T. Ryerson and Son, Inc. | 1 | 89,052 | 89,052 | 0.6 | % | 506,000 | 0.6 | % | 5.68 | 6,932,916 | 601,474 | |||||||||||||||||||||||||||||
| CHEP USA, Inc. | 2 | 83,000 | 83,000 | 0.6 | % | 494,000 | 0.6 | % | 5.95 | 7,405,447 | 2,670,944 | |||||||||||||||||||||||||||||
| Datatel Resources Corporation | (B) | 1 | 80,856 | 80,856 | 0.6 | % | 242,000 | 0.3 | % | 2.99 | 3,810,675 | -0- | ||||||||||||||||||||||||||||
| Sherwin-Williams Company | 2 | 78,887 | 78,887 | 0.5 | % | 637,000 | 0.8 | % | 8.07 | 7,244,128 | -0- | |||||||||||||||||||||||||||||
| RGH Enterprises, Inc. | 1 | 75,000 | 75,000 | 0.5 | % | 596,000 | 0.7 | % | 7.95 | 5,525,600 | 3,836,331 | |||||||||||||||||||||||||||||
| Tampa Bay Grand Prix | 1 | 68,385 | 68,385 | 0.5 | % | 289,000 | 0.4 | % | 4.23 | 5,677,982 | -0- | |||||||||||||||||||||||||||||
| Various Tenants at Retail Shopping Center | 1 | 64,138 | 64,138 | 0.4 | % | 777,000 | 1.0 | % | 12.11 | 3,180,025 | -0- | |||||||||||||||||||||||||||||
| SOFIVE, Inc. | 1 | 60,400 | 60,400 | 0.4 | % | 537,000 | 0.7 | % | 8.89 | 4,903,589 | 1,972,632 | |||||||||||||||||||||||||||||
| Siemens Real Estate | 1 | 51,130 | 51,130 | 0.4 | % | 473,000 | 0.6 | % | 9.25 | 4,452,425 | 2,644,135 | |||||||||||||||||||||||||||||
| B/E Aerospace, Inc. | 1 | 38,833 | 38,833 | 0.3 | % | 360,000 | 0.4 | % | 9.27 | 5,100,000 | -0- | |||||||||||||||||||||||||||||
| Keystone Automotive Industries MN, Inc. | 1 | 36,270 | 36,270 | 0.2 | % | 140,000 | 0.2 | % | 3.86 | 2,161,895 | -0- | |||||||||||||||||||||||||||||
| Graybar Electric Company | 1 | 26,340 | 26,340 | 0.2 | % | 109,000 | 0.1 | % | 4.14 | 1,850,794 | -0- | |||||||||||||||||||||||||||||
| Tenant Total as of 3/31/16 | 93 | 14,491,430 | 14,491,430 | 99.6 | % | $ | 80,681,000 | 100.0 | % | $ | 5.57 | $ | 1,013,363,420 | $ | 406.425.916 | |||||||||||||||||||||||||
| Vacant | 1 | 59,425 | -0- | 0.0 | % | -0- | 0.0 | % | -0- | 5,157,126 | -0- | |||||||||||||||||||||||||||||
| Total as of 3/31/16 | 94 | 14,550,855 | 14,491,430 | 99.6 | % | $ | 80,681,000 | 100.0 | % | $ | 5.57 | (A) $1,018,520,546 | $ | 406.425.916 | ||||||||||||||||||||||||||
| Acquisitions Subsequent to 3/31/16 | ||||||||||||||||||||||||||||||||||||||||
| FedEx Ground Package System, Inc. | 1 | 210,445 | 210,445 | 1.4 | % | 1,962,000 | 2.4 | % | 9.32 | 30,662,080 | 20,221,000 | |||||||||||||||||||||||||||||
| Pro Forma Total | 95 | 14,761,300 | 14,701,875 | 99.6 | % | $ | 82,643,000 | 100.0 | % | $ | 5.62 | (A) $1,049,182,626 | $ | 426,646,916 | ||||||||||||||||||||||||||
(A) Does not include $842,763 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) Woodstream Corporation and Altec Industries, Inc. are located at one property and therefore are counted as one property in the Property Count total.
Second Quarter FY 2016 Supplemental of Monmouth Real Estate Investment Corp. Page 13 of 22
(unaudited)
| Property | Square | Occupied Square | % of Total | Annual | % of Total Ann. | Rent
Per Sq. Ft. | Undepreciated | Mortgage | ||||||||||||||||||||||||||||
| State | Count | Footage | Footage | Sq. Ft. | Rent | Rent | Occup. | Cost | Balance | |||||||||||||||||||||||||||
| Texas | 9 | 1,379,468 | 1,379,468 | 9.5 | % | $ | 10,474,000 | 13.0 | % | 7.59 | $ | 127,969,811 | $ | 60,046,029 | ||||||||||||||||||||||
| Kentucky | 2 | 1,158,440 | 1,158,440 | 8.0 | % | 4,179,000 | 5.2 | % | 3.61 | 54,719,716 | 35,744,045 | |||||||||||||||||||||||||
| Florida | 10 | 1,137,293 | 1,137,293 | 7.8 | % | 7,565,000 | 9.4 | % | 6.65 | 102,838,191 | 43,250,472 | |||||||||||||||||||||||||
| Ohio | 7 | 1,032,469 | 1,032,469 | 7.1 | % | 6,071,000 | 7.5 | % | 5.88 | 72,765,297 | 29,869,344 | |||||||||||||||||||||||||
| Indiana | 2 | 999,176 | 999,176 | 6.9 | % | 4,184,000 | 5.2 | % | 4.19 | 61,430,574 | 36,109,880 | |||||||||||||||||||||||||
| Illinois | 9 | 958,045 | 958,045 | 6.6 | % | 6,224,000 | 7.7 | % | 6.50 | 81,679,058 | 14,453,920 | |||||||||||||||||||||||||
| Mississippi | 4 | 912,305 | 912,305 | 6.3 | % | 3,437,000 | 4.3 | % | 3.77 | 48,867,915 | 22,770,179 | |||||||||||||||||||||||||
| Tennessee | 3 | 891,777 | 891,777 | 6.1 | % | 3,058,000 | 3.8 | % | 3.43 | 33,818,647 | 16,471,413 | |||||||||||||||||||||||||
| Missouri | 5 | 804,397 | 804,397 | 5.5 | % | 3,079,000 | 3.8 | % | 3.83 | 39,241,336 | 9,345,549 | |||||||||||||||||||||||||
| North Carolina | 3 | 585,224 | 585,224 | 4.0 | % | 2,909,000 | 3.6 | % | 4.97 | 44,656,386 | 20,523,149 | |||||||||||||||||||||||||
| South Carolina | 3 | 571,115 | 571,115 | 3.9 | % | 3,552,000 | 4.4 | % | 6.22 | 36,368,552 | 9,181,548 | |||||||||||||||||||||||||
| Pennsylvania | 3 | 504,040 | 504,040 | 3.5 | % | 3,036,000 | 3.8 | % | 6.02 | 36,708,968 | 17,198,769 | |||||||||||||||||||||||||
| Kansas | 3 | 499,280 | 499,280 | 3.4 | % | 2,445,000 | 3.0 | % | 4.90 | 29,199,352 | 13,126,802 | |||||||||||||||||||||||||
| Michigan | 3 | 489,571 | 489,571 | 3.4 | % | 3,472,000 | 4.3 | % | 7.09 | 41,248,198 | 16,631,157 | |||||||||||||||||||||||||
| Virginia | 5 | 407,265 | 407,265 | 2.8 | % | 2,438,000 | 3.0 | % | 5.99 | 34,468,089 | 8,212,985 | |||||||||||||||||||||||||
| Georgia | 3 | 307,662 | 307,662 | 2.1 | % | 1,743,000 | 2.2 | % | 5.67 | 22,164,662 | 7,680,479 | |||||||||||||||||||||||||
| Arizona | 1 | 283,358 | 283,358 | 1.9 | % | 1,346,000 | 1.7 | % | 4.75 | 15,661,128 | 5,675,216 | |||||||||||||||||||||||||
| Wisconsin | 2 | 238,666 | 238,666 | 1.6 | % | 1,369,000 | 1.7 | % | 5.74 | 15,952,361 | 3,407,810 | |||||||||||||||||||||||||
| New York | 3 | 230,381 | 230,381 | 1.6 | % | 1,890,000 | 2.3 | % | 8.20 | 20,382,099 | 4,330,150 | |||||||||||||||||||||||||
| Oklahoma | 2 | 204,580 | 204,580 | 1.4 | % | 1,305,000 | 1.6 | % | 6.38 | 16,328,293 | 6,628,100 | |||||||||||||||||||||||||
| Louisiana | 1 | 175,315 | 175,315 | 1.2 | % | 1,258,000 | 1.6 | % | 7.18 | 18,410,000 | 12,785,748 | |||||||||||||||||||||||||
| Maryland | 1 | 144,523 | 144,523 | 1.0 | % | 1,426,000 | 1.8 | % | 9.87 | 14,512,355 | 4,708,531 | |||||||||||||||||||||||||
| Colorado | 2 | 138,235 | 138,235 | 1.0 | % | 1,208,000 | 1.5 | % | 8.74 | 13,549,167 | 2,676,220 | |||||||||||||||||||||||||
| New Jersey | 2 | 124,538 | 124,538 | 0.9 | % | 1,314,000 | 1.6 | % | 12.11 | 8,083,614 | 1,972,632 | |||||||||||||||||||||||||
| Minnesota | 2 | 119,823 | 60,398 | 0.8 | % | 372,000 | 0.5 | % | 6.18 | 10,377,126 | 2,731,107 | |||||||||||||||||||||||||
| Nebraska | 1 | 89,115 | 89,115 | 0.6 | % | 446,000 | 0.6 | % | 5.00 | 5,937,281 | -0- | |||||||||||||||||||||||||
| Alabama | 1 | 73,712 | 73,712 | 0.5 | % | 412,000 | 0.5 | % | 5.59 | 5,556,651 | 894,682 | |||||||||||||||||||||||||
| Connecticut | 1 | 54,812 | 54,812 | 0.4 | % | 329,000 | 0.4 | % | 6.00 | 3,463,824 | -0- | |||||||||||||||||||||||||
| Iowa | 1 | 36,270 | 36,270 | 0.2 | % | 140,000 | 0.2 | % | 3.86 | 2,161,895 | -0- | |||||||||||||||||||||||||
| Total as of 3/31/16 | 94 | 14,550,855 | 14,491,430 | 100.0 | % | $ | 80,681,000 | 100.0 | % | $ | 5.57 | (A)$1,018,520,546 | $ | 406,425,916 | ||||||||||||||||||||||
| ||||||||||||||||||||||||||||||||||||
| Acquisitions Subsequent to 3/31/16 | ||||||||||||||||||||||||||||||||||||
| Washington | 1 | 210,445 | 210,445 | 1.4 | % | 1,962,000 | 2.4 | % | 9.32 | 30,662,080 | 20,221,000 | |||||||||||||||||||||||||
| Pro Forma Total | 95 | 14,761,300 | 14,701,875 | 100.0 | % | $ | 82,643,000 | 100.0 | % | $ | 5.62 | (A)$1,049,182,626 | $ | 426,646,916 | ||||||||||||||||||||||
(A) Does not include $842,763 of vacant land and corporate office leasehold improvements not associated with a specific tenant.
Second Quarter FY 2016 Supplemental of Monmouth Real Estate Investment Corp. Page 14 of 22
(unaudited)
| Property | Square | % of Total | Annual | % of Total Ann. | Rent Per Sq. Ft. | Lease
Exp. Term in | Undepreciated | Mortgage | ||||||||||||||||||||||||||||||||
| Fiscal Year | Count | Footage | Sq. Ft. | Rent | Rent | Occup. | Years | Cost | Balance | |||||||||||||||||||||||||||||||
| 2017 | (B) | 12 | 1,256,168 | 8.6 | % | 7,511,000 | 9.3 | % | 5.98 | 1.1 | 90,184,807 | 16,688,527 | ||||||||||||||||||||||||||||
| 2018 | (B) | 15 | 1,324,159 | 9.1 | % | 7,760,000 | 9.6 | % | 5.86 | 2.1 | 91,737,775 | 21,326,251 | ||||||||||||||||||||||||||||
| 2019 | 9 | 1,370,849 | 9.4 | % | 7,091,000 | 8.8 | % | 5.17 | 3.1 | 81,365,433 | 25,815,774 | |||||||||||||||||||||||||||||
| 2020 | 2 | 239,585 | 1.6 | % | 1,267,000 | 1.6 | % | 5.29 | 4.3 | 16,976,349 | -0- | |||||||||||||||||||||||||||||
| 2021 | 7 | 684,692 | 4.7 | % | 3,335,000 | 4.1 | % | 4.87 | 5.2 | 43,211,288 | 8,511,512 | |||||||||||||||||||||||||||||
| 2022 | 8 | 1,212,032 | 8.3 | % | 6,751,000 | 8.4 | % | 5.57 | 6.0 | 81,168,644 | 36,264,688 | |||||||||||||||||||||||||||||
| 2023 | 11 | 1,917,312 | 13.2 | % | 10,031,000 | 12.4 | % | 5.23 | 7.2 | 130,603,286 | 55,087,503 | |||||||||||||||||||||||||||||
| 2024 | 12 | 1,914,366 | 13.2 | % | 12,069,000 | 15.0 | % | 6.30 | 8.2 | 149,406,964 | 56,093,890 | |||||||||||||||||||||||||||||
| 2025 | (B) | 9 | 2,404,478 | 16.5 | % | 11,989,000 | 14.9 | % | 4.99 | 9.1 | 157,264,219 | 89,620,017 | ||||||||||||||||||||||||||||
| 2026 | 1 | 125,860 | 0.9 | % | 1,311,000 | 1.6 | % | 10.42 | 9.8 | 19,950,000 | 13,000,000 | |||||||||||||||||||||||||||||
| 2027 | 2 | 322,191 | 2.2 | % | 1,706,000 | 2.1 | % | 5.29 | 11.1 | 20,761,128 | 5,675,216 | |||||||||||||||||||||||||||||
| 2029 | 2 | 262,613 | 1.8 | % | 1,513,000 | 1.9 | % | 5.76 | 13.3 | 21,950,000 | 9,970,551 | |||||||||||||||||||||||||||||
| 2030 | 3 | 834,387 | 5.7 | % | 5,404,000 | 6.7 | % | 6.48 | 13.9 | 78,883,786 | 51,347,546 | |||||||||||||||||||||||||||||
| 2034 | 1 | 558,600 | 3.8 | % | 2,166,000 | 2.7 | % | 3.88 | 17.6 | 26,719,716 | 17,024,441 | |||||||||||||||||||||||||||||
| Various tenants at retail shopping center | 1 | 64,138 | 0.4 | % | 777,000 | 1.0 | % | 12.11 | -0- | 3,180,025 | -0- | |||||||||||||||||||||||||||||
| Vacant | 1 | 59,425 | 0.4 | % | -0- | 0.0 | % | -0- | -0- | 5,157,126 | -0- | |||||||||||||||||||||||||||||
| Total as of 3/31/16 | 94 | 14,550,855 | 100.0 | % | $ | 80,681,000 | 100.0 | % | $ | 5.57 | 7.0 | (A)$1,018,520,546 | $ | 406,425,916 | ||||||||||||||||||||||||||
| Acquisitions Subsequent to 3/31/16 | ||||||||||||||||||||||||||||||||||||||||
| 2030 | 1 | 210,445 | 1.4 | % | 1,962,000 | 2.4 | % | 9.32 | 14.4 | 30,662,080 | 20,221,000 | |||||||||||||||||||||||||||||
| Pro Forma Total | 95 | 14,761,300 | 100.0 | % | $ | 82,643,000 | 100.0 | % | $ | 5.62 | 7.1 | (A)$1,049,182,626 | $ | 426,646,916 | ||||||||||||||||||||||||||
(A) Does not include $842,763 of vacant land and corporate office leasehold improvements not associated with a specific tenant.
(B) Included in 2018 is Datatel Resources and included in 2025 is NF&M International which both occupy one property. Included in 2017 is Woodstream Corporation and included in 2018 is Altec Industries which both occupy one property.
Second Quarter FY 2016 Supplemental of Monmouth Real Estate Investment Corp. Page 15 of 22
Recent Acquisitions During Fiscal 2016
(unaudited)
| Fiscal Year | Square | Annual | Rent
Per Sq. Ft. | Lease | Purchase | Initial Mortgage | ||||||||||||||||||||||||||||||
| No | Tenant | City (MSA) | State | Acquisition | Footage | Rent | Occup. | Expiration | Price | Balance | ||||||||||||||||||||||||||
| 1 | FedEx Ground Package System, Inc. | Concord (Charlotte) | NC | 2016 | 330,717 | $ | 2,078,000 | $ | 6.28 | 7/31/2025 | $ | 31,975,897 | $ | 20,780,000 | ||||||||||||||||||||||
| 2 | FedEx Ground Package System, Inc. | Covington (New Orleans) | LA | 2016 | 175,315 | 1,258,000 | 7.18 | 6/30/2025 | 18,410,000 | 12,890,000 | ||||||||||||||||||||||||||
| 3 | General Electric Company | Imperial (Pittsburgh) | PA | 2016 | 125,860 | 1,311,000 | 10.42 | 12/31/2025 | 20,032,864 | 13,000,000 | ||||||||||||||||||||||||||
| As of 3/31/16 | 631,892 | $ | 4,647,000 | $ | 7.35 | $ | 70,418,761 | $ | 46,670,000 | |||||||||||||||||||||||||||
| Acquisitions Subsequent to 3/31/16 | ||||||||||||||||||||||||||||||||||||
| 4 | FedEx Ground Package System, Inc. | Burlington (Seattle/Everett) | WA | 2016 | 210,445 | 1,962,000 | 9.32 | 8/31/2030 | 30,662,080 | 20,221,000 | ||||||||||||||||||||||||||
| Acquisitions Subsequent to 3/31/16 | 210,445 | $ | 1,962,000 | $ | 9.32 | $ | 30,662,080 | $ | 20,221,000 | |||||||||||||||||||||||||||
Second Quarter FY 2016 Supplemental of Monmouth Real Estate Investment Corp. Page 16 of 22
(unaudited)
| Rent Per | Lease
Exp. Term | |||||||||||||||||||||||||||||||||||||||||||
| Fiscal Year | Square | Annual | Sq. Ft. | in | Undepreciated | Mortgage | ||||||||||||||||||||||||||||||||||||||
| No | Tenant | City (MSA) | State | Acquisition | Occup. | Footage | Rent | Occup. | Years | Cost | Balance | |||||||||||||||||||||||||||||||||
| 1 | ULTA, Inc. | Greenwood (Indianapolis) | IN | 2015 | 100.0 | % | 671,354 | $ | 2,651,000 | $ | 3.95 | 9.3 | $ | 37,484,574 | $ | 23,379,733 | ||||||||||||||||||||||||||||
| 2 | Milwaukee Electric Tool Corporation | Olive Branch (Memphis, TN) | MS | 2013 | 100.0 | % | 615,305 | 2,012,000 | 3.27 | 7.1 | 30,566,430 | 13,740,602 | ||||||||||||||||||||||||||||||||
| 3 | Jim Beam Brands Company | Frankfort | KY | 2015 | 100.0 | % | 599,840 | 2,013,000 | 3.36 | 8.8 | 28,000,000 | 18,719,604 | ||||||||||||||||||||||||||||||||
| 4 | Ralcorp Holdings, Inc. | Buckner (Louisville) | KY | 2014 | 100.0 | % | 558,600 | 2,166,000 | 3.88 | 17.6 | 26,719,716 | 17,024,441 | ||||||||||||||||||||||||||||||||
| 5 | FedEx Supply Chain Services, Inc. | Memphis | TN | 2010 | 100.0 | % | 449,900 | 1,327,000 | 2.95 | 3.2 | 14,620,887 | 7,047,467 | ||||||||||||||||||||||||||||||||
| 6 | Woodstream Corporation | (B) | St. Joseph | MO | 2001 | 100.0 | % | 256,000 | 896,000 | 3.50 | 1.5 | 8,823,782 | -0- | |||||||||||||||||||||||||||||||
| Altec Industries, Inc. | (B) | St. Joseph | MO | 2001 | 100.0 | % | 126,880 | 349,000 | 2.75 | 1.9 | 4,373,288 | -0- | ||||||||||||||||||||||||||||||||
| 7 | CBOCS Distribution, Inc. | Lebanon (Nashville) | TN | 2011 | 100.0 | % | 381,240 | 1,420,000 | 3.72 | 8.3 | 14,215,126 | 7,759,461 | ||||||||||||||||||||||||||||||||
| 8 | Best Buy Warehousing Logistics, Inc. | Streetsboro (Cleveland) | OH | 2012 | 100.0 | % | 368,060 | 1,641,000 | 4.46 | 5.8 | 19,600,000 | 10,713,223 | ||||||||||||||||||||||||||||||||
| 9 | FedEx Ground Package System, Inc. | Concord | NC | 2016 | 100.0 | % | 330,717 | 2,078,000 | 6.28 | 9.3 | 31,975,897 | 20,523,149 | ||||||||||||||||||||||||||||||||
| 10 | FedEx Ground Package System, Inc. | Indianapolis | IN | 2014 | 100.0 | % | 327,822 | 1,533,000 | 4.68 | 8.1 | 23,946,000 | 12,730,147 | ||||||||||||||||||||||||||||||||
| 11 | FedEx Ground Package System, Inc. | Fort Worth (Dallas) | TX | 2015 | 100.0 | % | 304,608 | 2,362,000 | 7.75 | 14.1 | 35,300,832 | 24,071,184 | ||||||||||||||||||||||||||||||||
| 12 | Science Applications International | Hanahan (Charleston) | SC | 2005 | 100.0 | % | 302,400 | 1,462,000 | 4.83 | 3.1 | 13,340,592 | 5,775,589 | ||||||||||||||||||||||||||||||||
| 13 | FedEx Ground Package System, Inc. | Jacksonville | FL | 2015 | 100.0 | % | 297,579 | 1,992,000 | 6.69 | 13.8 | 30,645,954 | 18,978,890 | ||||||||||||||||||||||||||||||||
| 14 | Western Container Corp. | Tolleson (Phoenix) | AZ | 2003 | 100.0 | % | 283,358 | 1,346,000 | 4.75 | 11.1 | 15,661,128 | 5,675,216 | ||||||||||||||||||||||||||||||||
| 15 | International Paper Company | Edwardsville (Kansas City) | KS | 2014 | 100.0 | % | 280,000 | 1,326,000 | 4.74 | 7.4 | 18,294,108 | 10,997,372 | ||||||||||||||||||||||||||||||||
| 16 | NF&M International | (C) | Monaca (Pittsburgh) | PA | 1988 | 100.0 | % | 174,802 | 832,000 | 4.76 | 8.8 | 3,958,294 | -0- | |||||||||||||||||||||||||||||||
| Datatel Resources Corp. | (C) | Monaca (Pittsburgh) | PA | 1988 | 100.0 | % | 80,856 | 242,000 | 2.99 | 1.7 | 3,810,675 | -0- | ||||||||||||||||||||||||||||||||
| 17 | FedEx Ground Package System, Inc. | Orion | MI | 2007 | 100.0 | % | 245,633 | 1,908,000 | 7.77 | 7.3 | 22,885,636 | 8,841,942 | ||||||||||||||||||||||||||||||||
| 18 | Anda Pharmaceuticals, Inc. | Olive Branch (Memphis, TN) | MS | 2012 | 100.0 | % | 234,660 | 1,196,000 | 5.10 | 6.3 | 14,550,000 | 9,029,577 | ||||||||||||||||||||||||||||||||
| 19 | UGN, Inc. | Monroe (Cincinnati) | OH | 2015 | 100.0 | % | 232,200 | 1,050,000 | 4.52 | 13.9 | 12,937,000 | 8,297,472 | ||||||||||||||||||||||||||||||||
| 20 | Caterpillar Logistics Services, Inc. | Griffin (Atlanta) | GA | 2006 | 100.0 | % | 218,120 | 1,169,000 | 5.36 | 0.7 | 14,868,857 | 6,804,874 | ||||||||||||||||||||||||||||||||
| 21 | FedEx Ground Package System, Inc. | Sauget (St. Louis, MO) | IL | 2015 | 100.0 | % | 198,773 | 1,036,000 | 5.21 | 13.2 | 15,200,000 | 9,970,551 | ||||||||||||||||||||||||||||||||
| 22 | Anheuser-Busch, Inc. | Granite City (St. Louis, MO) | IL | 2001 | 100.0 | % | 184,800 | 806,000 | 4.36 | 5.7 | 12,398,355 | 669,810 | ||||||||||||||||||||||||||||||||
| 23 | United Technologies Corporation | Carrollton (Dallas) | TX | 2010 | 100.0 | % | 184,317 | 1,576,000 | 8.55 | 2.8 | 17,744,300 | 8,306,477 | ||||||||||||||||||||||||||||||||
| 24 | FedEx Ground Package System, Inc. | Spring (Houston) | TX | 2014 | 100.0 | % | 181,176 | 1,581,000 | 8.73 | 8.5 | 19,283,798 | 9,412,588 | ||||||||||||||||||||||||||||||||
| 25 | Carlisle Tire & Wheel Company | Edwardsville (Kansas City) | KS | 2003 | 100.0 | % | 179,280 | 787,000 | 4.39 | 2.2 | 7,225,401 | 650,600 | ||||||||||||||||||||||||||||||||
| 26 | FedEx Ground Package System, Inc. | Ft. Mill (Charlotte, NC) | SC | 2010 | 100.0 | % | 176,939 | 1,415,000 | 8.00 | 7.6 | 15,413,307 | 2,202,220 | ||||||||||||||||||||||||||||||||
| 27 | FedEx Ground Package System, Inc. | Covington | LA | 2016 | 100.0 | % | 175,315 | 1,258,000 | 7.18 | 9.3 | 18,410,000 | 12,785,748 | ||||||||||||||||||||||||||||||||
| 28 | FedEx Ground Package System, Inc. | Livonia (Detroit) | MI | 2013 | 100.0 | % | 172,005 | 1,194,000 | 6.94 | 6.0 | 13,762,030 | 7,789,215 | ||||||||||||||||||||||||||||||||
| 29 | Home Depot USA, Inc. | Montgomery (Chicago) | IL | 2004 | 100.0 | % | 171,200 | 978,000 | 5.71 | 4.3 | 11,298,367 | -0- | ||||||||||||||||||||||||||||||||
| 30 | FedEx Ground Package System, Inc. | Tampa | FL | 2004 | 100.0 | % | 170,779 | 1,493,000 | 8.74 | 8.3 | 18,948,239 | 6,978,210 | ||||||||||||||||||||||||||||||||
| 31 | FedEx Ground Package System, Inc. | Lindale (Tyler) | TX | 2015 | 100.0 | % | 163,378 | 725,000 | 4.44 | 8.3 | 9,930,000 | 6,553,102 | ||||||||||||||||||||||||||||||||
| 32 | Bunzl Distribution Midcentral, Inc. | Kansas City | MO | 2015 | 100.0 | % | 158,417 | 741,000 | 4.68 | 5.5 | 9,600,000 | 7,032,682 | ||||||||||||||||||||||||||||||||
| 33 | FedEx Ground Package System, Inc. | Oklahoma City | OK | 2012 | 100.0 | % | 158,340 | 1,048,000 | 6.62 | 9.3 | 12,580,262 | 4,635,178 | ||||||||||||||||||||||||||||||||
| 34 | FedEx Ground Package System, Inc. | Waco | TX | 2012 | 100.0 | % | 150,710 | 1,078,000 | 7.15 | 9.4 | 12,546,157 | 4,933,029 | ||||||||||||||||||||||||||||||||
| 35 | Victory Packaging, L.P. | Fayetteville | NC | 1997 | 100.0 | % | 148,000 | 470,000 | 3.18 | 4.9 | 5,441,876 | -0- | ||||||||||||||||||||||||||||||||
| 36 | FedEx Ground Package System, Inc. | Beltsville (Washington, DC) | MD | 2001 | 100.0 | % | 144,523 | 1,426,000 | 9.87 | 2.3 | 14,512,355 | 4,708,531 | ||||||||||||||||||||||||||||||||
| 37 | FedEx Ground Package System, Inc. | El Paso | TX | 2006 | 100.0 | % | 144,149 | 1,345,000 | 9.33 | 7.5 | 12,431,194 | 3,437,799 | ||||||||||||||||||||||||||||||||
| 38 | FedEx Ground Package System, Inc. | Cocoa | FL | 2008 | 100.0 | % | 144,138 | 1,112,000 | 7.71 | 8.5 | 14,097,786 | 5,216,365 | ||||||||||||||||||||||||||||||||
| 39 | FedEx Ground Package System, Inc. | Cudahy (Milwaukee) | WI | 2001 | 100.0 | % | 139,564 | 901,000 | 6.46 | 1.2 | 9,382,361 | -0- | ||||||||||||||||||||||||||||||||
| 40 | FedEx Ground Package System, Inc. | Richfield (Cleveland) | OH | 2006 | 100.0 | % | 131,152 | 1,490,000 | 11.36 | 8.5 | 16,435,478 | 3,248,875 | ||||||||||||||||||||||||||||||||
| 41 | General Electric Company | Imperial (Pittsburgh) | PA | 2016 | 100.0 | % | 125,860 | 1,311,000 | 10.42 | 9.8 | 19,950,000 | 13,000,000 | ||||||||||||||||||||||||||||||||
| 42 | FedEx Ground Package System, Inc. | Wheeling (Chicago) | IL | 2003 | 100.0 | % | 123,000 | 1,386,000 | 11.27 | 1.2 | 18,537,652 | 3,212,085 | ||||||||||||||||||||||||||||||||
| 43 | FedEx Ground Package System, Inc. | Altoona | PA | 2014 | 100.0 | % | 122,522 | 651,000 | 5.31 | 7.4 | 8,990,000 | 4,198,769 | ||||||||||||||||||||||||||||||||
| 44 | FedEx Ground Package System, Inc. | Edinburg | TX | 2011 | 100.0 | % | 113,582 | 598,000 | 5.26 | 5.4 | 7,885,924 | -0- | ||||||||||||||||||||||||||||||||
| 45 | FedEx Corporation | Mechanicsville (Richmond) | VA | 2001 | 100.0 | % | 112,799 | 541,000 | 4.80 | 7.1 | 7,750,296 | -0- | ||||||||||||||||||||||||||||||||
| 46 | FedEx Corporation | Orlando | FL | 2008 | 100.0 | % | 110,638 | 666,000 | 6.02 | 1.7 | 8,554,432 | 4,458,626 | ||||||||||||||||||||||||||||||||
| 47 | Style Crest, Inc. | Winston-Salem | NC | 2002 | 100.0 | % | 106,507 | 361,000 | 3.39 | 5.0 | 7,238,613 | -0- | ||||||||||||||||||||||||||||||||
| 48 | FedEx Ground Package System, Inc. | Cheektowaga (Buffalo) | NY | 2000 | 100.0 | % | 104,981 | 966,000 | 9.20 | 3.4 | 10,960,823 | 493,819 | ||||||||||||||||||||||||||||||||
| 49 | FedEx Ground Package System, Inc. | West Chester Twp (Cincinnati) | OH | 1999 | 100.0 | % | 103,818 | 532,000 | 5.12 | 7.4 | 5,728,690 | 2,190,061 | ||||||||||||||||||||||||||||||||
| 50 | FedEx Ground Package System, Inc. | Roanoke | VA | 2013 | 100.0 | % | 103,402 | 755,000 | 7.30 | 7.1 | 10,200,000 | 5,542,041 | ||||||||||||||||||||||||||||||||
| 51 | Pittsburgh Glass Works LLC. | O’ Fallon (St. Louis) | MO | 1994 | 100.0 | % | 102,135 | 427,000 | 4.18 | 2.2 | 4,245,913 | -0- | ||||||||||||||||||||||||||||||||
| 52 | FedEx Ground Package System, Inc. | Green Bay | WI | 2013 | 100.0 | % | 99,102 | 468,000 | 4.72 | 7.2 | 6,570,000 | 3,407,810 | ||||||||||||||||||||||||||||||||
| 53 | Holland 1916 Inc. | Liberty (Kansas City) | MO | 1998 | 100.0 | % | 95,898 | 341,000 | 3.56 | 3.2 | 7,397,881 | -0- | ||||||||||||||||||||||||||||||||
| 54 | FedEx Corporation | Jacksonville | FL | 1999 | 100.0 | % | 95,883 | 518,000 | 5.40 | 3.2 | 6,229,421 | 1,548,287 | ||||||||||||||||||||||||||||||||
| 55 | FedEx Corporation | Tampa | FL | 2006 | 100.0 | % | 95,662 | 603,000 | 6.30 | 1.5 | 7,571,132 | 4,018,120 | ||||||||||||||||||||||||||||||||
| 56 | FedEx Ground Package System, Inc. | Hanahan (Charleston) | SC | 2005 | 100.0 | % | 91,776 | 675,000 | 7.35 | 2.3 | 7,614,653 | 1,203,739 | ||||||||||||||||||||||||||||||||
| 57 | National Oilwell Varco, Inc. | Houston | TX | 2010 | 100.0 | % | 91,295 | 746,000 | 8.17 | 6.5 | 8,083,107 | 3,331,850 | ||||||||||||||||||||||||||||||||
| 58 | FedEx Corporation | Omaha | NE | 1999 | 100.0 | % | 89,115 | 446,000 | 5.00 | 7.6 | 5,937,281 | -0- | ||||||||||||||||||||||||||||||||
Second Quarter FY 2016 Supplemental of Monmouth Real Estate Investment Corp. Page 17 of 22
Property Table
(unaudited)
| Rent Per | Lease
Exp. Term | |||||||||||||||||||||||||||||||||||||||
| Fiscal Year | Square | Annual | Sq. Ft. | in | Undepreciated | Mortgage | ||||||||||||||||||||||||||||||||||
| No | Tenant | City (MSA) | State | Acquisition | Occup. | Footage | Rent | Occup. | Years | Cost | Balance | |||||||||||||||||||||||||||||
| 59 | Joseph T. Ryerson and Son, Inc. | Elgin (Chicago) | IL | 2002 | 100.0 | % | 89,052 | 506,000 | 5.68 | 0.8 | 6,932,916 | 601,474 | ||||||||||||||||||||||||||||
| 60 | FedEx Ground Package System, Inc. | Ft. Myers | FL | 2003 | 100.0 | % | 87,500 | 433,000 | 4.95 | 0.6 | 5,017,447 | -0- | ||||||||||||||||||||||||||||
| 61 | CHEP USA, Inc. | Roanoke | VA | 2007 | 100.0 | % | 83,000 | 494,000 | 5.95 | 8.9 | 7,405,447 | 2,670,944 | ||||||||||||||||||||||||||||
| 62 | FedEx Corporation | Bedford Heights (Cleveland) | OH | 2007 | 100.0 | % | 82,269 | 408,000 | 4.96 | 2.4 | 6,861,704 | 2,775,578 | ||||||||||||||||||||||||||||
| 63 | RGH Enterprises, Inc. | Halfmoon (Albany) | NY | 2012 | 100.0 | % | 75,000 | 596,000 | 7.95 | 5.7 | 5,525,600 | 3,836,331 | ||||||||||||||||||||||||||||
| 64 | FedEx Ground Package System, Inc. | Huntsville | AL | 2005 | 100.0 | % | 73,712 | 412,000 | 5.59 | 6.4 | 5,556,651 | 894,682 | ||||||||||||||||||||||||||||
| 65 | FedEx Corporation | Schaumburg (Chicago) | IL | 1997 | 100.0 | % | 73,500 | 515,000 | 7.01 | 1.0 | 4,967,639 | -0- | ||||||||||||||||||||||||||||
| 66 | FedEx Corporation | Romulus (Detroit) | MI | 1998 | 100.0 | % | 71,933 | 370,000 | 5.14 | 5.2 | 4,600,532 | -0- | ||||||||||||||||||||||||||||
| 67 | FedEx Ground Package System, Inc. | Denver | CO | 2005 | 100.0 | % | 69,865 | 564,000 | 8.07 | 2.3 | 6,354,051 | 1,209,195 | ||||||||||||||||||||||||||||
| 68 | Tampa Bay Grand Prix | Tampa | FL | 2005 | 100.0 | % | 68,385 | 289,000 | 4.23 | 4.5 | 5,677,982 | -0- | ||||||||||||||||||||||||||||
| 69 | FedEx Ground Package System, Inc. | Colorado Springs | CO | 2006 | 100.0 | % | 68,370 | 644,000 | 9.42 | 2.5 | 7,195,115 | 1,467,025 | ||||||||||||||||||||||||||||
| 70 | Sherwin-Williams Company | Rockford | IL | 2011 | 100.0 | % | 66,387 | 477,000 | 7.19 | 7.8 | 5,551,227 | -0- | ||||||||||||||||||||||||||||
| 71 | Kellogg Sales Company | Kansas City | MO | 2007 | 100.0 | % | 65,067 | 325,000 | 4.99 | 2.3 | 4,800,474 | 2,312,867 | ||||||||||||||||||||||||||||
| 72 | Various Tenants at Retail Shopping Center | Somerset | NJ | 1970 | 100.0 | % | 64,138 | 777,000 | 12.11 | na | 3,180,025 | -0- | ||||||||||||||||||||||||||||
| 73 | The American Bottling Company | Cincinnati | OH | 2015 | 100.0 | % | 63,840 | 477,000 | 7.47 | 13.5 | 6,750,000 | -0- | ||||||||||||||||||||||||||||
| 74 | FedEx Corporation | Chattanooga | TN | 2007 | 100.0 | % | 60,637 | 311,000 | 5.13 | 1.6 | 4,982,634 | 1,664,485 | ||||||||||||||||||||||||||||
| 75 | SOFIVE, Inc. | Carlstadt (New York, NY) | NJ | 2001 | 100.0 | % | 60,400 | 537,000 | 8.89 | 8.8 | 4,903,589 | 1,972,632 | ||||||||||||||||||||||||||||
| 76 | FedEx Ground Package System, Inc. | Stewartville (Rochester) | MN | 2013 | 100.0 | % | 60,398 | 372,000 | 6.16 | 7.2 | 5,220,000 | 2,731,107 | ||||||||||||||||||||||||||||
| 77 | United Technologies Corporation | Richmond | VA | 2004 | 100.0 | % | 60,000 | 319,000 | 5.32 | 2.7 | 4,768,309 | -0- | ||||||||||||||||||||||||||||
| 78 | Vacant | White Bear Lake (Minneapolis/St. Paul) | MN | 2001 | 0.0 | % | 59,425 | -0- | na | na | 5,157,126 | -0- | ||||||||||||||||||||||||||||
| 79 | FedEx Ground Package System, Inc. | Augusta | GA | 2005 | 100.0 | % | 59,358 | 453,000 | 7.63 | 2.2 | 5,328,873 | 875,605 | ||||||||||||||||||||||||||||
| 80 | Kellogg Sales Company | Newington (Hartford) | CT | 2001 | 100.0 | % | 54,812 | 329,000 | 6.00 | 0.9 | 3,463,824 | -0- | ||||||||||||||||||||||||||||
| 81 | Siemens Real Estate | Lebanon (Cincinnati) | OH | 2012 | 100.0 | % | 51,130 | 473,000 | 9.25 | 3.1 | 4,452,425 | 2,644,135 | ||||||||||||||||||||||||||||
| 82 | Kellogg Sales Company | Orangeburg (New York) | NY | 1993 | 100.0 | % | 50,400 | 328,000 | 6.51 | 1.9 | 3,895,675 | -0- | ||||||||||||||||||||||||||||
| 83 | FedEx Corporation | Charlottesville | VA | 1999 | 100.0 | % | 48,064 | 329,000 | 6.85 | 1.4 | 4,344,037 | -0- | ||||||||||||||||||||||||||||
| 84 | FedEx Ground Package System, Inc. | Corpus Christi | TX | 2012 | 100.0 | % | 46,253 | 463,000 | 10.01 | 5.4 | 4,764,500 | -0- | ||||||||||||||||||||||||||||
| 85 | The American Bottling Company | Tulsa | OK | 2014 | 100.0 | % | 46,240 | 257,000 | 5.56 | 7.9 | 3,748,031 | 1,992,922 | ||||||||||||||||||||||||||||
| 86 | The Coca-Cola Company | Topeka | KS | 2009 | 100.0 | % | 40,000 | 332,000 | 8.30 | 5.5 | 3,679,843 | 1,478,830 | ||||||||||||||||||||||||||||
| 87 | B/E Aerospace, Inc. | Rockford | IL | 2015 | 100.0 | % | 38,833 | 360,000 | 9.27 | 11.3 | 5,100,000 | -0- | ||||||||||||||||||||||||||||
| 88 | Keystone Automotive Industries MN, Inc. | Urbandale (Des Moines) | IA | 1994 | 100.0 | % | 36,270 | 140,000 | 3.86 | 1.0 | 2,161,895 | -0- | ||||||||||||||||||||||||||||
| 89 | FedEx Corporation | Richland (Jackson) | MS | 1994 | 100.0 | % | 36,000 | 120,000 | 3.33 | 8.0 | 1,900,691 | -0- | ||||||||||||||||||||||||||||
| 90 | FedEx Corporation | Punta Gorda | FL | 2007 | 100.0 | % | 34,624 | 304,000 | 8.78 | 1.2 | 4,113,265 | 2,051,974 | ||||||||||||||||||||||||||||
| 91 | FedEx Corporation | Lakeland | FL | 2006 | 100.0 | % | 32,105 | 155,000 | 4.83 | 1.7 | 1,982,532 | -0- | ||||||||||||||||||||||||||||
| 92 | FedEx Corporation | Augusta | GA | 2006 | 100.0 | % | 30,184 | 121,000 | 4.01 | 6.7 | 1,966,932 | -0- | ||||||||||||||||||||||||||||
| 93 | Graybar Electric Company | Ridgeland (Jackson) | MS | 1993 | 100.0 | % | 26,340 | 109,000 | 4.14 | 3.3 | 1,850,794 | -0- | ||||||||||||||||||||||||||||
| 94 | Sherwin-Williams Company | Burr Ridge (Chicago) | IL | 1997 | 100.0 | % | 12,500 | 160,000 | 12.80 | 5.6 | 1,692,901 | -0- | ||||||||||||||||||||||||||||
| Total as of 3/31/16 | 99.6 | % | 14,550,855 | $ | 80,681,000 | $ | 5.57 | 7.0 | (A)$1,018,520,546 | $ | 406,425,916 | |||||||||||||||||||||||||||||
| Acquisitions Subsequent to 3/31/16 | ||||||||||||||||||||||||||||||||||||||||
| 95 | FedEx Ground Package System, Inc. | Burlington (Seattle/Everett) | WA | 2016 | 100.0 | % | 210,445 | 1,962,000 | 9.32 | 14.4 | 30,662,080 | 20,221,000 | ||||||||||||||||||||||||||||
| Pro Forma Total | 99.6 | % | 14,761,300 | $ | 82,643,000 | $ | 5.62 | 7.1 | (A)$1,049,182,626 | $ | 426,646,916 | |||||||||||||||||||||||||||||
(A) Does not include $842,763 of vacant land and corporate office leasehold improvements not associated with a specific tenant.
(B) Both tenants occupy one property.
(C) Both tenants occupy one property.
Second Quarter FY 2016 Supplemental of Monmouth Real Estate Investment Corp. Page 18 of 22
Investors and analysts following the real estate industry utilize funds from operations (“FFO”), core funds from operations (“Core FFO”), net operating income (“NOI”), Same Property NOI, Same Property 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 Property NOI, Same Property 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 Property NOI, Same Property 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.
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 Property NOI is the NOI of all properties owned during the entire periods presented with the exclusion of any properties expanded during the periods presented.
Same Property Cash NOI is the Same Property NOI adjusted to exclude the effects of the U.S. GAAP straight-line rent adjustment for the properties included in the Same Property NOI calculation.
EBITDA is calculated as NOI, less general and administrative expenses, plus interest and dividend income and lease termination income and net effect of net amortization of acquired above or below market lease revenue.
Core FFO is calculated as FFO plus acquisition costs.
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 compensation expense, plus non-recurring other expense. AFFO excludes realized gains (losses) on securities transactions. Recurring capital expenditures are defined as all capital expenditures, excluding capital expenditures related to expansions at our current locations or capital expenditures that are incurred in conjunction with obtaining a new lease or a lease renewal.
NOI, Same Property NOI, Same Property 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 Property NOI, Same Property 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 Property NOI, Same Property 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.
Second Quarter FY 2016 Supplemental of Monmouth Real Estate Investment Corp. Page 19 of 22
| FOR IMMEDIATE RELEASE | May 4, 2016 |
| Contact: Susan Jordan | |
| 732-577-9996 |
MONMOUTH REAL ESTATE INVESTMENT CORPORATION REPORTS RESULTS FOR
THE SECOND QUARTER ENDED MARCH 31, 2016
FREEHOLD, NJ, May 4, 2016........ Monmouth Real Estate Investment Corporation (NYSE:MNR) reported Core Funds from Operations (Core FFO) of $11,514,000 or $0.18 per diluted share for the three months ended March 31, 2016 as compared to $8,418,000 or $0.14 per diluted share for the three months ended March 31, 2015 representing an increase in Core FFO per share of 28.6%. Adjusted Funds from Operations (AFFO), for the three months ended March 31, 2016 was $10,745,000 or $0.17 per diluted share versus $8,138,000 or $0.14 per diluted share for the three months ended March 31, 2015 representing an increase in AFFO per share of 21.4%.
A summary of significant financial information for the three and six months ended March 31, 2016 and 2015 is as follows:
Three Months Ended March 31, | ||||||||
| 2016 | 2015 | |||||||
| Rental Revenue | $ | 19,611,000 | $ | 16,206,000 | ||||
| Reimbursement Revenue | $ | 3,356,000 | $ | 2,653,000 | ||||
| Net Operating Income (NOI) (1) | $ | 19,188,000 | $ | 15,908,000 | ||||
| Total Expenses | $ | 12,538,000 | $ | 10,306,000 | ||||
| Interest and Dividend Income | $ | 1,380,000 | $ | 963,000 | ||||
| Gain on Sale of Securities Transactions, net | $ | 879,000 | $ | -0- | ||||
| Net Income | $ | 7,132,000 | $ | 4,819,000 | ||||
| Net Income Attributable to Common Shareholders | $ | 4,980,000 | $ | 2,667,000 | ||||
| Net Income Attributable to Common Shareholders Per Diluted Common Share | $ | 0.08 | $ | 0.04 | ||||
| Core FFO (1) | $ | 11,514,000 | $ | 8,418,000 | ||||
| Core FFO per Diluted Common Share (1) | $ | 0.18 | $ | 0.14 | ||||
| AFFO (1) | $ | 10,745,000 | $ | 8,138,000 | ||||
| AFFO per Diluted Common Share (1) | $ | 0.17 | $ | 0.14 | ||||
| Weighted Avg. Diluted Common Shares Outstanding | 64,736,000 | 58,463,000 | ||||||
| Six
Months Ended March 31, | ||||||||
| 2016 | 2015 | |||||||
| Rental Revenue | $ | 38,676,000 | $ | 31,636,000 | ||||
| Reimbursement Revenue | $ | 6,550,000 | $ | 4,900,000 | ||||
| Lease Termination Income | $ | -0- | $ | 239,000 | ||||
| Net Operating Income (NOI) (1) | $ | 37,844,000 | $ | 30,594,000 | ||||
| Total Expenses | $ | 23,705,000 | $ | 19,889,000 | ||||
| Interest and Dividend Income | $ | 2,564,000 | $ | 1,998,000 | ||||
| Gain on Sale of Securities Transactions, net | $ | 887,000 | $ | 377,000 | ||||
| Net Income | $ | 14,071,000 | $ | 10,242,000 | ||||
| Net Income Attributable to Common Shareholders | $ | 9,767,000 | $ | 5,939,000 | ||||
| Net Income Attributable to Common Shareholders Per Diluted Common Share | $ | 0.15 | $ | 0.10 | ||||
| Core FFO (1) | $ | 22,526,000 | $ | 17,052,000 | ||||
| Core FFO per Diluted Common Share (1) | $ | 0.35 | $ | 0.29 | ||||
| AFFO (1) | $ | 21,470,000 | $ | 15,933,000 | ||||
| AFFO per Diluted Common Share (1) | $ | 0.34 | $ | 0.28 | ||||
| Weighted Avg. Diluted Common Shares Outstanding | 63,828,000 | 57,937,000 | ||||||
A summary of significant balance sheet information as of March 31, 2016 and September 30, 2015 is as follows:
| March 31, 2016 | September 30, 2015 | |||||||
| Net Real Estate Investments | $ | 883,004,000 | $ | 816,801,000 | ||||
| Securities Available for Sale at Fair Value | $ | 68,647,000 | $ | 54,541,000 | ||||
| Total Assets | $ | 999,655,000 | $ | 915,992,000 | ||||
| Mortgage Notes Payable | $ | 406,426,000 | $ | 373,991,000 | ||||
| Loans Payable | $ | 99,917,000 | $ | 85,041,000 | ||||
| Total Shareholders’ Equity | $ | 476,806,000 | $ | 446,011,000 | ||||
Second Quarter FY 2016 Supplemental of Monmouth Real Estate Investment Corp. Page 20 of 22
Michael P. Landy, President and CEO, commented on the results for the second quarter of fiscal 2016,
“Fiscal 2016 is shaping up to be another outstanding year for Monmouth. Our strong performance has continued through this most recent quarter. During the quarter we:
| ● | Increased our occupancy rate 210 basis points over the prior year period and 80 basis points sequentially, to a sector leading 99.6%. | |
| ● | Increased our AFFO per share to $0.17, representing a 21% increase over the prior year period. | |
| ● | Increased our Net Operating Income (NOI) 21% over the prior year period. | |
| ● | Increased our Same Property NOI 2.3% on a GAAP basis and 3.5% on a cash basis over the prior year period. | |
| ● | Acquired for $20.0 million a brand new Class A built-to-suit property with 126,000 square feet leased for 10 years to General Electric Company. This mission critical facility is located near the Pittsburgh International Airport. | |
| ● | Grew our acquisition pipeline to seven new Class A build-to-suit properties, representing 1.9 million square feet, for a total purchase price of approximately $197.9 million. These properties are all net-leased to investment grade tenants or their subsidiaries. These acquisitions are expected to generate annualized rental revenue of approximately $13.2 million and will benefit from an average lease term of approximately 13.5 years. Subject to satisfactory due diligence, we anticipate closing these transactions upon completion of construction and occupancy over the next several quarters. | |
| ● | Increased our expansion pipeline to 312,000 square feet at a cost of approximately $18.4 million. Upon completion, the expansions will result in a new ten year lease extension for three buildings and a new twelve year lease extension for one building being expanded. These expansions will result in increased annualized rent of approximately $1.8 million. | |
| ● | Increased our gross leasable area (GLA) 12.3% to 14.6 million square feet over the prior year period. Our GLA is expected to grow to 17.0 million square feet upon the completion of the above acquisitions and expansions. | |
| ● | Achieved a 100% tenant retention rate for fiscal 2016. This marks our second consecutive year of 100% tenant retention. The fiscal 2016 lease renewals resulted in a 5.3% increase in rents on a GAAP basis and represent a weighted average lease term of 4.1 years. | |
| ● | Allocated capital opportunistically into discounted REIT securities resulting in an unrealized gain of $2.1 million at quarter end in addition to the $879,000 in gains realized during the quarter and the $1.4 million in dividend income these securities generated during the quarter. | |
| ● | Subsequent to quarter end, we acquired for $30.7 million a brand new Class A built-to-suit property with 210,000 square feet leased for 15 years to FedEx Ground located in the Seattle/Everett MSA. This facility is located in close proximity to Boeing’s large manufacturing plant in Everett, WA.” |
Mr. Landy stated, “This marks our fourth consecutive quarter of generating over 20% AFFO per share growth. The high quality of Monmouth’s portfolio is best illustrated by our industrial sector leading occupancy rate of 99.6%, as well as the 100% tenant retention rate we have achieved for the second consecutive year now. With e-commerce sales growing five times faster than overall retail sales, demand for modern industrial space is expected to remain strong.”
“The hard working team at Monmouth remains very focused on continuing to deliver positive long-term results. We look forward to building upon the substantial growth that has been achieved thus far.”
Monmouth Real Estate Investment Corporation will host its Second Quarter FY 2016 Financial Results Webcast and Conference Call on Thursday, May 5, 2016 at 10:00 a.m. Eastern Time. Senior management will discuss the results, current market conditions and future outlook.
The Company’s Second Quarter FY 2016 financial results being released herein will be available on the Company’s website at www.mreic.reit 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.reit. Interested parties can also participate via conference call by calling toll free 877-510-5852 (domestically) or 412-902-4138 (internationally).
The replay of the conference call will be available at 12:00 p.m. Eastern Time on Thursday, May 5, 2016. It will be available until July 30, 2016, and can be accessed by dialing toll free 877-344-7529 (domestically) and 412-317-0088 (internationally) and entering the passcode 10080985. A transcript of the call and the webcast replay will be available at the Company’s website, www.mreic.reit.
Monmouth Real Estate Investment Corporation, founded in 1968 is one of the oldest public equity REITs in the U.S. The Company specializes in single-tenant, net-leased industrial properties, subject to long-term leases, primarily to investment grade tenants. Monmouth Real Estate Investment Corporation is a fully-integrated and self-managed real estate company, whose property portfolio consists of ninety-five properties located in thirty states, containing a total of approximately 14.8 million rentable square feet. In addition, the Company owns a portfolio of REIT securities.
Second Quarter FY 2016 Supplemental of Monmouth Real Estate Investment Corp. Page 21 of 22
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, depreciation of corporate office tenant improvements, amortization of deferred financing costs, non-recurring other expense, U.S. GAAP straight-line rent adjustments and less recurring capital expenditures. We define recurring capital expenditures as all capital expenditures, excluding capital expenditures related to expansions at our current locations or capital expenditures that are incurred in conjunction with obtaining a new lease or a lease renewal. 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 following is a reconciliation of the Company’s U.S. GAAP Net Income to the Company’s FFO, Core FFO and AFFO for the three and six months ended March 31, 2016 and 2015:
| Three Months Ended | Six Months Ended | |||||||||||||||
| 3/31/2016 | 3/31/2015 | 3/31/2016 | 3/31/2015 | |||||||||||||
| Net Income Attributable to Common Shareholders | $ | 4,980,000 | $ | 2,667,000 | $ | 9,767,000 | $ | 5,939,000 | ||||||||
| Plus: Depreciation Expense (excluding Corporate Office) | 5,757,000 | 4,752,000 | 11,324,000 | 9,237,000 | ||||||||||||
| Plus: Amortization of Intangible Assets | 320,000 | 364,000 | 643,000 | 711,000 | ||||||||||||
| Plus: Amortization of Capitalized Lease Costs | 192,000 | 164,000 | 381,000 | 303,000 | ||||||||||||
| FFO Attributable to Common Shareholders | 11,249,000 | 7,947,000 | 22,115,000 | 16,190,000 | ||||||||||||
| Plus: Acquisition Costs | 265,000 | 471,000 | 411,000 | 862,000 | ||||||||||||
| Core FFO Attributable to Common Shareholders | 11,514,000 | 8,418,000 | 22,526,000 | 17,052,000 | ||||||||||||
| Plus: Stock Compensation Expense | 102,000 | 97,000 | 207,000 | 187,000 | ||||||||||||
| Plus: Depreciation of Corporate Office Tenant Improvements | 29,000 | 34,000 | 57,000 | 34,000 | ||||||||||||
| Plus: Amortization of Financing Costs | 239,000 | 203,000 | 473,000 | 396,000 | ||||||||||||
| Plus: Non-recurring other expense | 400,000 | -0- | 400,000 | -0- | ||||||||||||
| Less: Lease Termination Income | -0- | -0- | -0- | (239,000 | ) | |||||||||||
| Less: Gain on Sale of Securities Transactions, net | (879,000 | ) | -0- | (887,000 | ) | (377,000 | ) | |||||||||
| Less: U.S. GAAP Straight-line Rent Adjustment | (512,000 | ) | (532,000 | ) | (822,000 | ) | (864,000 | ) | ||||||||
| Less: Recurring Capital Expenditures | (148,000 | ) | (82,000 | ) | (484,000 | ) | (256,000 | ) | ||||||||
| AFFO Attributable to Common Shareholders | $ | 10,745,000 | $ | 8,138,000 | $ | 21,470,000 | $ | 15,933,000 | ||||||||
The following are the Cash Flows provided (used) by Operating, Investing and Financing Activities for the six months ended March 31, 2016 and 2015:
| Six Months Ended | ||||||||
| 3/31/2016 | 3/31/2015 | |||||||
| Operating Activities | $ | 28,428,000 | $ | 17,854,000 | ||||
| Investing Activities | (86,279,000 | ) | (109,555,000 | ) | ||||
| Financing Activities | 55,711,000 | 96,728,000 | ||||||
# # # # #
Second Quarter FY 2016 Supplemental of Monmouth Real Estate Investment Corp. Page 22 of 22