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
Same Property Statistics	7
Consolidated Statements of Cash Flows	9
Capital Structure and Leverage Ratios	10
Debt Maturity	12
Property Table by Tenant	13
Property Table by State	14
Lease Expirations	15
Recent Acquisitions	16
Property Table	17
Definitions	19
Press Release Dated November 28, 2016	20

 

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-K.  

   

 

Consolidated Balance Sheets

 

		September 30, 2016				September 30, 2015
ASSETS
Real Estate Investments:
Land		$	165,375,315			$	133,500,315
Buildings and Improvements			1,005,938,180				807,509,590
Total Real Estate Investments			1,171,313,495				941,009,905
Accumulated Depreciation			(148,830,169	)			(124,898,639	)
Net Real Estate Investments			1,022,483,326				816,111,266
Cash and Cash Equivalents			95,749,508				12,073,909
Securities Available for Sale at Fair Value			73,604,894				54,541,237
Tenant and Other Receivables			1,444,824				783,052
Deferred Rent Receivable			6,917,431				5,205,295
Prepaid Expenses			4,830,987				3,931,616
Financing Costs, net of Accumulated Amortization of $3,399,232 and $3,247,014, respectively			7,518,066				5,987,911
Capitalized Lease Costs, net of Accumulated Amortization of $3,238,516 and $2,534,521, respectively			4,165,268				3,407,432
Intangible Assets, net of Accumulated Amortization of $12,332,599 and $11,153,855, respectively			5,816,153				6,115,134
Other Assets			7,227,571				7,835,090
TOTAL ASSETS		$	1,229,758,028			$	915,991,942
LIABILITIES AND SHAREHOLDERS’ EQUITY
Liabilities:
Mortgage Notes Payable		$	483,748,153			$	373,991,174
Loans Payable			80,790,684				85,041,386
Preferred Stock Called for Redemption			53,493,750				-0-
Accounts Payable and Accrued Expenses			3,998,771				3,113,274
Other Liabilities			9,868,572				7,835,468
Total Liabilities			631,899,930				469,981,302
COMMITMENTS AND CONTINGENCIES
Shareholders’ Equity:
7.625% Series A Cumulative Redeemable Preferred Stock,  $0.01 Par Value Per Share: -0- and 2,139,750 Shares Authorized, Issued and Outstanding as of September 30, 2016  and 2015, respectively			-0-				53,493,750
7.875% Series B Cumulative Redeemable Preferred Stock, $0.01 Par Value Per Share: 2,300,000 Shares Authorized,  Issued and Outstanding as of September 30, 2016 and 2015			57,500,000				57,500,000
6.125% Series C Cumulative Redeemable Preferred Stock, $0.01 Par Value Per Share: 5,400,000 and -0- Shares Authorized, Issued and Outstanding as of September 30, 2016 and 2015, respectively			135,000,000				-0-
Common Stock – $0.01 Par Value Per Share: 194,600,000 and 200,000,000 Shares Authorized as of September 30, 2016  and 2015, respectively; 68,920,972 and 62,123,454 Shares Issued and Outstanding as of September 30, 2016 and 2015, respectively			689,210				621,235
Excess Stock – $0.01 Par Value Per Share: 200,000,000 Shares Authorized as of September 30, 2016 and 2015;  No Shares Issued or Outstanding as of September 30, 2016 and 2015			-0-				-0-
Additional Paid-In Capital			391,726,621				339,837,258
Accumulated Other Comprehensive Income (Loss)			12,942,267				(5,441,603	)
Undistributed Income			-0-				-0-
Total Shareholders’ Equity			597,858,098				446,010,640
TOTAL LIABILITIES & SHAREHOLDERS’ EQUITY		$	1,229,758,028			$	915,991,942

 

Fourth Quarter FY 2016 & FY 2016 Supplemental of Monmouth Real Estate Investment Corp. Page 3 of 23

 

 

Consolidated Statements of Income

 

		Three Months Ended								Twelve Months Ended
		9/30/2016				9/30/2015				9/30/2016				9/30/2015
INCOME:
Rental Revenue		$	22,126,728			$	18,167,515			$	81,592,429			$	67,059,385
Reimbursement Revenue			3,449,183				2,399,574				13,323,681				10,716,112
Lease Termination Income			-0-				-0-				-0-				238,625
TOTAL INCOME			25,575,911				20,567,089				94,916,110				78,014,122
EXPENSES:
Real Estate Taxes			2,773,882				1,792,836				10,455,401				8,362,135
Operating Expenses			957,410				1,042,746				4,273,899				4,127,884
General & Administrative Expenses			2,836,283				1,891,115				7,936,124				6,305,928
Acquisition Costs			184,486				242,699				730,441				1,546,088
Depreciation			6,576,648				5,336,059				24,055,022				19,705,320
Amortization of Capitalized Lease Costs and Intangible Assets			614,283				569,625				2,032,658				2,067,408
TOTAL EXPENSES			13,942,992				10,875,080				49,483,545				42,114,763
OTHER INCOME (EXPENSE):
Dividend and Interest Income			1,565,937				852,684				5,616,392				3,723,867
Gain on Sale of Securities Transactions, net			3,239,190				428,426				4,398,599				805,513
Interest Expense			(5,842,699	)			(5,128,971	)			(21,836,811	)			(18,558,150	)
Amortization of Financing Costs			(402,737	)			(677,765	)			(1,116,238	)			(1,286,016	)
TOTAL OTHER INCOME (EXPENSE)			(1,440,309	)			(4,525,626	)			(12,938,058	)			(15,314,786	)
INCOME FROM CONTINUING OPERATIONS			10,192,610				5,166,383				32,494,507				20,584,573
Gain on Sale of Real Estate Investment			-0-				5,021,242				-0-				5,021,242
NET INCOME			10,192,610				10,187,625				32,494,507				25,605,815
Less: Preferred Dividends			2,565,196				2,151,758				9,020,470				8,607,032
Less: Redemption of Preferred Stock			2,942,149				-0-				2,942,149				-0-
NET INCOME ATTRIBUTABLE TO  COMMON SHAREHOLDERS		$	4,685,265			$	8,035,867			$	20,531,888			$	16,998,783

 

Fourth Quarter FY 2016 & FY 2016 Supplemental of Monmouth Real Estate Investment Corp. Page 4 of 23

 

 

NOI, EBITDA, FFO, Core FFO and AFFO Reconciliations

(unaudited)

 

		Three Months Ended								Twelve Months Ended
		9/30/2016				9/30/2015				9/30/2016				9/30/2015
Revenues
Rental Revenue		$	22,126,728			$	18,167,515			$	81,592,429			$	67,059,385
Reimbursement Revenue			3,449,183				2,399,574				13,323,681				10,716,112
Total Rental and Reimbursement Revenue			25,575,911				20,567,089				94,916,110				77,775,497
Expenses
Real Estate Taxes			2,773,882				1,792,836				10,455,401				8,362,135
Operating Expenses			957,410				1,042,746				4,273,899				4,127,884
Total Expenses			3,731,292				2,835,582				14,729,300				12,490,019
Net Operating Income – NOI			21,844,619				17,731,507				80,186,810				65,285,478
Lease Termination Income			-0-				-0-				-0-				238,625
Dividend and Interest Income			1,565,937				852,684				5,616,392				3,723,867
Net Amortization of Acquired Above and Below Market Lease Revenue			25,491				25,492				101,967				59,750
General & Administrative Expenses			(2,836,283	)			(1,891,115	)			(7,936,124	)			(6,305,928	)
EBITDA			20,599,764				16,718,568				77,969,045				63,001,792
Interest Expense			(5,842,699	)			(5,128,971	)			(21,836,811	)			(18,558,150	)
Gain on Sale of Securities Transactions, net			3,239,190				428,426				4,398,599				805,513
Acquisition Costs			(184,486	)			(242,699	)			(730,441	)			(1,546,088	)
Preferred Dividends			(2,565,196	)			(2,151,758	)			(9,020,470	)			(8,607,032	)
Redemption of Preferred Stock			(2,942,149	)			-0-				(2,942,149	)			-0-
Depreciation of Corporate Office Tenant Improvements			(35,535	)			(8,163	)			(123,492	)			(79,572	)
Amortization of Financing Costs			(402,737	)			(677,765	)			(1,116,238	)			(1,286,016	)
Funds From Operations – FFO			11,866,152				8,937,638				46,598,043				33,730,447
Depreciation (excluding Corporate Office Tenant Improvements)			(6,541,113	)			(5,327,896	)			(23,931,530	)			(19,625,748	)
Gain on Sale of Real Estate Investment			-0-				5,021,242				-0-				5,021,242
Amortization of Capitalized Lease Costs and Intangible Assets			(639,774	)			(595,117	)			(2,134,625	)			(2,127,158	)
Net Income Attributable to Common Shareholders			4,685,265				8,035,867				20,531,888				16,998,783
Funds From Operations – FFO			11,866,152				8,937,638				46,598,043				33,730,447
Acquisition Costs			184,486				242,699				730,441				1,546,088
Redemption of Preferred Stock			2,942,149				-0-				2,942,149				-0-
Core Funds From Operations - Core FFO			14,992,787				9,180,337				50,270,633				35,276,535
Stock Compensation Expense			619,777				165,317				926,465				448,895
Depreciation of Corporate Office Tenant Improvements			35,535				8,163				123,492				79,572
Amortization of Financing Costs			402,737				677,765				1,116,238				1,286,016
Non-recurring Other Expense (1)			-0-				-0-				500,000				-0-
Lease Termination Income			-0-				-0-				-0-				(238,625	)
Gain on Sale of Securities Transactions, net			(3,239,190	)			(428,426	)			(4,398,599	)			(805,513	)
U.S. GAAP Straight-line Rent Adjustment			(537,768	)			(282,133	)			(1,709,821	)			(1,446,264	)
Recurring Capital Expenditures			(309,521	)			(161,790	)			(963,065	)			(623,658	)
Adjusted Funds From Operations – AFFO			11,964,357				9,159,233				45,865,343				33,976,958
EBITDA			20,599,764				16,718,568				77,969,045				63,001,792
Stock Compensation Expense			619,777				165,317				926,465				448,895
Non-recurring Other Expense (1)			-0-				-0-				500,000				-0-
Lease Termination Income			-0-				-0-				-0-				(238,625	)
U.S. GAAP Straight-line Rent Adjustment			(537,768	)			(282,133	)			(1,709,821	)			(1,446,264	)
Recurring Capital Expenditures			(309,521	)			(161,790	)			(963,065	)			(623,658	)
Interest Expense			(5,842,699	)			(5,128,971	)			(21,836,811	)			(18,558,150	)
Preferred Dividends			(2,565,196	)			(2,151,758	)			(9,020,470	)			(8,607,032	)
Adjusted Funds From Operations – AFFO		$	11,964,357			$	9,159,233			$	45,865,343			$	33,976,958

 

(1)

Consists of one-time payroll expenditures.

 

Fourth Quarter FY 2016 & FY 2016 Supplemental of Monmouth Real Estate Investment Corp. Page 5 of 23

 

 

Financial Highlights

(unaudited)

 

		Three Months Ended								Twelve Months Ended
		9/30/2016				9/30/2015				9/30/2016				9/30/2015
Weighted Average Common Shares Outstanding
Basic			68,013,820				60,434,609				65,468,564				59,085,888
Diluted			68,159,029				60,514,018				65,558,284				59,201,296
Net Income Attributable to Common Shareholders		$	4,685,265			$	8,035,867			$	20,531,888			$	16,998,783
Basic		$	0.07			$	0.13			$	0.31			$	0.29
Diluted			0.07				0.13				0.31				0.29
Net Operating Income – NOI		$	21,844,619			$	17,731,507			$	80,186,810			$	65,285,478
Basic		$	0.32			$	0.29			$	1.22			$	1.10
Diluted			0.32				0.29				1.22				1.10
Funds From Operations – FFO		$	11,866,152			$	8,937,638			$	46,598,043			$	33,730,447
Basic		$	0.17			$	0.15			$	0.71			$	0.57
Diluted			0.17				0.15				0.71				0.57
Core Funds From Operations - Core FFO		$	14,992,787			$	9,180,337			$	50,270,633			$	35,276,535
Basic		$	0.22			$	0.15			$	0.77			$	0.60
Diluted			0.22				0.15				0.77				0.60
Core FFO Excluding Gains on Securities Transactions  and Lease Termination Income, net		$	11,753,597			$	8,751,911			$	45,872,034			$	34,232,397
Basic		$	0.17			$	0.14			$	0.70			$	0.58
Diluted			0.17				0.14				0.70				0.58
Core FFO Including Gain Over Historic Cost (Undepreciated)  on Sale of Real Estate Investment (1)		$	14,992,787			$	12,470,286			$	50,270,633			$	38,566,484
Basic		$	0.22			$	0.21			$	0.77			$	0.65
Diluted			0.22				0.21				0.77				0.65
Adjusted Funds From Operations - AFFO		$	11,964,357			$	9,159,233			$	45,865,343			$	33,976,958
Basic		$	0.18			$	0.15			$	0.70			$	0.58
Diluted			0.18				0.15				0.70				0.57
Dividends Declared per Common Share		$	0.16			$	0.15			$	0.64			$	0.60

 

(1) On September 18, 2015, the Company sold its 160,000 square foot industrial building located in Monroe, NC for $9,000,000 with net sale proceeds to the Company of $8,846,686. Prior to the sale, the historic cost basis was $5,556,737 and the net book value (net of accumulated depreciation) was $3,825,443. Under U.S. GAAP, the sale resulted in a realized gain of $5,021,242, representing a 131% gain over the depreciated U.S. GAAP basis and a realized gain on historic cost of $3,289,949, representing a 59% gain over the Company’s historic cost basis.  

 

Fourth Quarter FY 2016 & FY 2016 Supplemental of Monmouth Real Estate Investment Corp. Page 6 of 23

 

 

Same Property Statistics

 

		Three Months Ended
		9/30/2016								9/30/2015				Change				Change %
Total Square Feet / Total Properties			16,010,372/99								13,918,963/92				2,091,409				15.0	%
Occupancy Percentage at Quarter End			99.6	%							97.7	%			190 bps				1.9	%
Same Property Square Feet / Number of Same Properties							12,381,669/84
Same Property Occupancy Percentage at Quarter End			99.5	%							97.4	%			210 bps				2.2	%
Same Property Net Operating Income (NOI) (GAAP)		$	16,220,468							$	15,666,895			$	553,573				3.5	%
Reversal of U.S. GAAP Straight-line Rent Adjustment			(193,254	)							(267,432	)			74,178
Same Property Cash NOI (Cash)		$	16,027,214							$	15,399,463			$	627,751				4.1	%

 

Same Property Statistics include all properties owned during the entire periods presented with the exclusion of properties expanded during these periods.

 

The 3.5% increase, amounting to $553,573 in Same Property NOI (GAAP), consists of 36% or $197,171 generated by increased NOI from occupied properties and the remaining 64% or $356,402 is attributable to increased NOI from filling previously vacant properties.

 

The 4.1% increase, amounting to $627,751 in Same Property Cash NOI, consists of 43% or $271,621 generated by increased NOI from occupied properties and the remaining 57% or $356,130 is attributable to increased NOI from filling previously vacant properties.

 

Reconciliation of Same Property NOI to Total NOI		Three Months Ended
		9/30/2016				9/30/2015				Change				Change %
Same Property NOI (GAAP)		$	16,220,468			$	15,666,895			$	553,573				3.5	%
NOI of properties purchased subsequent to July 1, 2015 (ten properties for fiscal 2016 and two properties for fiscal 2015)			3,631,279				495,501
NOI of properties expanded subsequent to July 1, 2015 (five properties for fiscal 2016 and 2015)			1,992,872				1,502,108
NOI of property sold subsequent to July 1, 2015 (one property for fiscal 2015)			-0-				67,003
Total NOI		$	21,844,619			$	17,731,507			$	4,113,112				23.2	%

 

Fourth Quarter FY 2016 & FY 2016 Supplemental of Monmouth Real Estate Investment Corp. Page 7 of 23

 

 

Same Property Statistics

 

		Twelve Months Ended
		9/30/2016								9/30/2015				Change				Change %
Total Square Feet / Total Properties			16,010,372	/99							13,918,963	/92			2,091,409				15.0	%
Occupancy Percentage at Quarter End			99.6	%							97.7	%			190 bps				1.9	%
Same Property Square Feet / Number of Same Properties							9,621,488	/74
Same Property Occupancy Percentage at Quarter End			99.4	%							96.6	%			280 bps				2.9	%
Same Property Net Operating Income (NOI) (GAAP)		$	51,632,507							$	49,702,824			$	1,929,683				3.9	%
Reversal of U.S. GAAP Straight-line Rent Adjustment			(683,649	)							(908,572	)			224,923
Same Property Cash NOI (Cash)		$	50,948,858							$	48,794,252			$	2,154,606				4.4	%

 

Same Property Statistics include all properties owned during the entire periods presented with the exclusion of properties expanded during these periods.

 

The 3.9% increase, amounting to $1,929,683 in Same Property NOI (GAAP), consists of 35% or $682,434 generated by increased NOI from occupied properties and the remaining 65% or $1,247,249 is attributable to increased NOI from filling previously vacant properties.

 

The 4.4% increase, amounting to $2,154,606 in Same Property Cash NOI, consists of 50% or $1,077,316 generated by increased NOI from occupied properties and the remaining 50% or $1,077,290 is attributable to increased NOI from filling previously vacant properties.

 

 

Reconciliation of Same Property NOI to Total NOI		Twelve Months Ended
		9/30/2016				9/30/2015				Change				Change %
Same Property NOI (GAAP)		$	51,632,507			$	49,702,824			$	1,929,683				3.9	%
NOI of properties purchased subsequent to October 1, 2014 (eighteen properties for fiscal 2016 and ten properties for fiscal 2015)			19,833,107				7,652,178
NOI of properties expanded subsequent to October 1, 2014 (seven properties for fiscal 2016 and 2015)			8,721,196				7,465,931
NOI of property sold subsequent to October 1, 2014 (one property for fiscal 2015)			-0-				464,545
Total NOI		$	80,186,810			$	65,285,478			$	14,901,332				22.8	%

 

Fourth Quarter FY 2016 & FY 2016 Supplemental of Monmouth Real Estate Investment Corp. Page 8 of 23

 

 

Consolidated Statements of Cash Flows

 

		Twelve Months Ended
		9/30/2016				9/30/2015
CASH FLOWS FROM OPERATING ACTIVITIES
Net Income		$	32,494,507			$	25,605,815
Noncash Items Included in Net Income:
Depreciation & Amortization			27,203,918				23,058,744
Stock Compensation Expense			926,465				448,895
Gain on Sale of Securities Transactions, net			(4,398,599	)			(805,513	)
Gain on Sale of Real Estate Investments			-0-				(5,021,242	)
Changes in:
Tenant, Deferred Rent & Other Receivables			(1,640,504	)			(800,203	)
Prepaid Expenses			(899,371	)			(1,166,821	)
Other Assets and Capitalized Lease Costs			(1,814,638	)			(2,359,895	)
Accounts Payable, Accrued Expenses & Other Liabilities			2,827,722				(897,495	)
NET CASH PROVIDED BY OPERATING ACTIVITIES			54,699,500				38,062,285
CASH FLOWS FROM INVESTING ACTIVITIES
Purchase of Real Estate & Intangible Assets			(210,747,340	)			(192,187,485	)
Capital and Land Site Improvements			(21,566,561	)			(10,541,656	)
Proceeds on Sale of Real Estate			-0-				8,846,686
Return of Deposits on Real Estate			2,950,000				3,100,000
Deposits Paid on Acquisitions of Real Estate			(2,200,000	)			(3,700,000	)
Purchase of Securities Available for Sale			(19,055,956	)			(16,188,760	)
Proceeds from Sale of Securities Available for Sale			22,774,768				16,201,480
NET CASH USED IN INVESTING ACTIVITIES			(227,845,089	)			(194,469,735	)
CASH FLOWS FROM FINANCING ACTIVITIES
Proceeds from Mortgage Notes Payable			153,428,485				122,173,058
Principal Payments on Mortgage Notes Payable			(43,671,506	)			(35,977,890	)
Net (Repayments) Proceeds from Loans Payable			(4,250,702	)			59,841,386
Financing Costs Paid on Debt			(2,646,393	)			(2,917,663	)
Proceeds from Underwritten Public Offering of Preferred Stock, net of offering costs			130,543,422				-0-
Proceeds from Issuance of Common Stock in the DRIP, net of Dividend Reinvestments			63,806,651				39,915,387
Proceeds from the Exercise of Stock Options			1,883,300				612,410
Preferred Dividends Paid			(8,607,032	)			(8,607,032	)
Common Dividends Paid, net of Reinvestments			(33,665,037	)			(27,032,958	)
NET CASH PROVIDED BY FINANCING ACTIVITIES			256,821,188				148,006,698
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS			83,675,599				(8,400,752	)
CASH AND CASH EQUIVALENTS - BEGINNING OF YEAR			12,073,909				20,474,661
CASH AND CASH EQUIVALENTS - END OF YEAR		$	95,749,508			$	12,073,909

 

Fourth Quarter FY 2016 & FY 2016 Supplemental of Monmouth Real Estate Investment Corp. Page 9 of 23

 

 

Capital Structure and Leverage Ratios		As of				As of
(unaudited)		9/30/2016				9/30/2015
Mortgage Notes Payable		$	483,748,153			$	373,991,174
Loans Payable			80,790,684				85,041,386
Preferred Stock Called for Redemption			53,493,750				-0-
Total Debt			618,032,587				459,032,560
7.625% Series A Cumul. Redeemable Preferred			-0-				53,493,750
7.875% Series B Cumul. Redeemable Preferred			57,500,000				57,500,000
6.125% Series C Cumul. Redeemable Preferred			135,000,000				-0-
Total Preferred Stock			192,500,000				110,993,750
Common Stock, Paid-In-Capital & Other			405,358,098				335,016,890
Total Shareholders’ Equity			597,858,098				446,010,640
Total Book Capitalization			1,215,890,685				905,043,200
Accumulated Depreciation			148,830,169				124,898,639
Total Undepreciated Book Capitalization		$	1,364,720,854			$	1,029,941,839
Shares Outstanding			68,920,972				62,123,454
Market Price Per Share		$	14.27			$	9.75
Equity Market Capitalization		$	983,502,270			$	605,703,677
Total Debt			618,032,587				459,032,560
Preferred			192,500,000				110,993,750
Total Market Capitalization		$	1,794,034,857			$	1,175,729,987
Total Debt		$	618,032,587			$	459,032,560
less: Cash and Cash Equivalents			95,749,508				12,073,909
Net Debt		$	522,283,079			$	446,958,651
less: Securities Available for Sale at Fair Value (Securities)			73,604,894				54,541,237
Net Debt Less Securities		$	448,678,185			$	392,417,414
Net Debt / Undepreciated Book Capitalization			38.3	%			43.4	%
Net Debt / Total Market Capitalization			29.1	%			38.0	%
Net Debt Plus Preferred / Total Market Capitalization			39.8	%			47.5	%
Net Debt Less Securities / Undepreciated Book Capitalization			32.9	%			38.1	%
Net Debt Less Securities / Total Market Capitalization			25.0	%			33.4	%
Net Debt Less Securities Plus Preferred / Total Market Capitalization			35.7	%			42.8	%
Weighted Average Interest Rate on Fixed Rate Debt			4.49	%			4.85	%

 

Fourth Quarter FY 2016 & FY 2016 Supplemental of Monmouth Real Estate Investment Corp. Page 10 of 23

 

 

Capital Structure and Leverage Ratios continued

(unaudited)

 

		Three Months Ended								Twelve Months Ended
		9/30/2016				9/30/2015				9/30/2016				9/30/2015
Net Income		$	10,192,610			$	10,187,625			$	32,494,507			$	25,605,815
plus: Depreciation & Amortization			7,593,668				6,583,449				27,203,918				23,058,744
plus: Interest Expense			5,842,699				5,128,971				21,836,811				18,558,150
plus: Acquisition Costs			184,486				242,699				730,441				1,546,088
plus: Net Amortization of Acquired Above and  Below Market Lease Revenue			25,491				25,492				101,967				59,750
less: Gain on Sale of Securities Transactions, net			(3,239,190	)			(428,426	)			(4,398,599	)			(805,513	)
less: Gain on Sale of Real Estate Investment			-0-				(5,021,242	)			-0-				(5,021,242	)
EBITDA		$	20,599,764			$	16,718,568			$	77,969,045			$	63,001,792
Interest Expense		$	5,842,699			$	5,128,971			$	21,836,811				18,558,150
Preferred Dividends			2,565,196				2,151,758				9,020,470				8,607,032
Total Fixed Charges		$	8,407,895			$	7,280,729			$	30,857,281			$	27,165,182
Interest Coverage			3.5 x				3.3 x				3.6 x				3.4 x
Fixed Charge Coverage			2.5 x				2.3 x				2.5 x				2.3 x
Net Debt		$	522,283,079			$	446,958,651			$	522,283,079			$	446,958,651
Net Debt Less Securities			448,678,185				392,417,414				448,678,185				392,417,414
Preferred			192,500,000				110,993,750				192,500,000				110,993,750
Annualized EBITDA			82,399,056				66,874,272				77,969,045				63,001,792
Net Debt / EBITDA			6.3 x				6.7 x				6.7 x				7.1 x
Net Debt Less Securities / EBITDA			5.4 x				5.9 x				5.8 x				6.2 x
Net Debt + Preferred / EBITDA			8.7 x				8.3 x				9.2 x				8.9 x
Net Debt Less Securities + Preferred / EBITDA			7.8 x				7.5 x				8.2 x				8.0 x

 

Fourth Quarter FY 2016 & FY 2016 Supplemental of Monmouth Real Estate Investment Corp. Page 11 of 23

 

 

 

						Loans								% of
Fiscal Year Ended		Mortgages				Payable				Total				Total
2017			57,791,871				4,790,684				62,582,555				11.1	%
2018			43,879,833				-0-				43,879,833				7.8	%
2019			47,464,988				-0-				47,464,988				8.4	%
2020			28,808,574				76,000,000				104,808,574				18.5	%
2021			29,255,776				-0-				29,255,776				5.2	%
Thereafter			276,547,111				-0-				276,547,111				49.0	%
Total as of 9/30/2016 (1)		$	483,748,153			$	80,790,684			$	564,538,837				100.0	%
Weighted Average Interest Rate			4.48	%			2.19	%			4.16	%
Weighted Average Term			10.54 yrs				3.84 yrs				9.58 yrs

 

(1)	Does not include Preferred Stock Called for Redemption in the amount of $53,493,750 which was redeemed on October 14, 2016.

 

Fourth Quarter FY 2016 & FY 2016 Supplemental of Monmouth Real Estate Investment Corp. Page 12 of 23

 

 

Property Table by Tenant

(unaudited)

 

Tenant						Property Count				Square Footage				Occupied Square Footage				% of Occupied sf				Annual Rent				% of Total Ann. Rent				Rent Per sf Occup.				Undepreciated Cost				Mortgage Balance
FedEx Ground Package System, Inc.							38				6,160,372				6,160,372				38.5	%		$	45,243,000				49.6	%		$	7.34			$	597,261,416				266,821,635
FedEx Corporation							14				973,413				973,413				6.1	%			5,375,000				5.9	%			5.52				71,871,313				15,854,877
FedEx Supply Chain Services, Inc.							1				449,900				449,900				2.8	%			1,327,000				1.4	%			2.95				14,620,887				6,667,886
Total FedEx							53				7,583,685				7,583,685				47.4	%			51,945,000				56.9	%			6.85			$	683,753,616			$	289,344,398
Milwaukee Electric Tool Corporation							1				861,889				861,889				5.4	%			2,934,000				3.2	%			3.40				36,914,917				25,000,000
ULTA, Inc.							1				671,354				671,354				4.2	%			2,651,000				2.9	%			3.95				37,500,391				22,760,488
Jim Beam Brands Company							1				599,840				599,840				3.7	%			2,013,000				2.2	%			3.36				28,000,000				18,352,289
TreeHouse Private Brands, Inc.							1				558,600				558,600				3.5	%			2,166,000				2.4	%			3.88				26,767,852				16,694,848
CBOCS Distribution, Inc.							1				381,240				381,240				2.4	%			1,420,000				1.6	%			3.72				14,215,126				7,659,116
Best Buy Warehousing Logistics, Inc.							1				368,060				368,060				2.3	%			1,641,000				1.8	%			4.46				19,600,000				10,446,469
The Coca-Cola Company/Western Container Corp.							2				323,358				323,358				2.0	%			1,678,000				1.8	%			5.19				20,504,069				6,662,406
Science Applications International							1				302,400				302,400				1.9	%			1,462,000				1.6	%			4.83				13,340,592				5,605,514
International Paper Company							1				280,000				280,000				1.7	%			1,326,000				1.5	%			4.74				18,294,108				10,648,115
Woodstream Corporation			(C)				1				256,000				256,000				1.6	%			896,000				1.0	%			3.50				8,848,278				-0-
United Technologies Corporation							2				244,317				244,317				1.5	%			1,895,000				2.1	%			7.76				22,537,415				7,960,781
Anda Pharmaceuticals, Inc.							1				234,660				234,660				1.5	%			1,196,000				1.3	%			5.10				14,550,000				8,750,368
UGN, Inc.							1				232,200				232,200				1.5	%			1,050,000				1.1	%			4.52				12,937,000				8,071,987
Caterpillar Logistics Services, Inc.							1				218,120				218,120				1.4	%			1,169,000				1.3	%			5.36				14,868,857				-0-
Anheuser-Busch, Inc.							1				184,800				184,800				1.2	%			806,000				0.9	%			4.36				12,542,814				-0-
Carlisle Tire & Wheel Company							1				179,280				179,280				1.1	%			787,000				0.9	%			4.39				7,225,401				397,513
NF&M International Inc.			(B)				1				174,802				174,802				1.1	%			832,000				0.9	%			4.76				5,337,378				-0-
Home Depot USA, Inc.							1				171,200				171,200				1.1	%			978,000				1.1	%			5.71				11,298,367				-0-
Kellogg Sales Company							3				170,279				170,279				1.1	%			982,000				1.1	%			5.77				12,159,973				2,241,680
Bunzl Distribution Midcentral, Inc.							1				158,417				158,417				1.0	%			741,000				0.8	%			4.68				9,600,000				6,958,091
Victory Packaging, L.P.							1				148,000				148,000				0.9	%			470,000				0.5	%			3.18				5,441,876				-0-
Challenger Lifts, Inc. (Snap-on Inc.)							1				137,500				137,500				0.9	%			835,000				0.9	%			6.07				11,304,000				7,288,891
Altec Industries, Inc.			(C)				1				126,880				126,880				0.8	%			349,000				0.4	%			2.75				4,385,428				-0-
General Electric Company							1				125,860				125,860				0.8	%			1,311,000				1.4	%			10.42				19,950,000				12,700,739
The American Bottling Company							2				110,080				110,080				0.7	%			734,000				0.8	%			6.67				10,498,031				1,934,175
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				0.6	%			427,000				0.5	%			4.18				4,245,913				-0-
Holland 1916 Inc.							1				95,898				95,898				0.6	%			341,000				0.4	%			3.56				7,397,881				-0-
National Oilwell Varco, Inc.							1				91,295				91,295				0.6	%			746,000				0.8	%			8.17				8,083,107				3,124,904
Joseph T. Ryerson and Son, Inc.							1				89,052				89,052				0.6	%			506,000				0.6	%			5.68				6,932,916				349,658
CHEP USA, Inc.							1				83,000				83,000				0.5	%			494,000				0.5	%			5.95				7,405,447				2,519,243
Datatel Resources Corporation			(B)				1				80,856				80,856				0.5	%			242,000				0.3	%			2.99				2,468,845				-0-
Sherwin-Williams Company							2				78,887				78,887				0.5	%			637,000				0.7	%			8.07				7,244,131				-0-
RGH Enterprises, Inc.							1				75,000				75,000				0.5	%			596,000				0.7	%			7.95				5,525,600				3,786,099
Tampa Bay Grand Prix							1				68,385				68,385				0.4	%			289,000				0.3	%			4.23				5,677,982				-0-
Various Tenants at Retail Shopping Center							1				64,138				64,138				0.4	%			780,000				0.9	%			12.16				3,072,880				-0-
SOFIVE, Inc.							1				60,400				60,400				0.4	%			537,000				0.6	%			8.89				4,903,589				1,898,199
Siemens Real Estate							1				51,130				51,130				0.3	%			473,000				0.4	%			9.25				4,452,425				2,592,182
B/E Aerospace, Inc.							1				38,833				38,833				0.1	%			360,000				0.3	%			9.27				5,100,000				-0-
Keystone Automotive Industries MN, Inc.							1				36,270				36,270				0.1	%			140,000				0.1	%			3.86				2,161,895				-0-
Graybar Electric Company							1				26,340				26,340				0.1	%			109,000				0.1	%			4.14				1,858,591				-0-
Tenant Total as of 9/30/16							98				15,950,947				15,950,947				99.6	%		$	91,305,000				100.0	%		$	5.72			$	1,166,145,304			$	483,748,153
Vacant			(D)				1				59,425				-0-				0.0	%			-0-				0.0	%			-0-				5,157,126				-0-
Total as of 9/30/16							99				16,010,372				15,950,947				99.6	%		$	91,305,000				100.0	%		$	5.72				(A) $1,171,302,430			$	483,748,153
Acquisition Subsequent to 9/30/16
FedEx Ground Package System, Inc.							1				338,584				338,584				2.1	%			2,308,000				2.5	%			6.82				35,100,000				23,500,000
Pro Forma Total with Acquisition Subsequent to 9/30/16							100				16,348,956				16,289,531				99.6	%		$	93,613,000				100.0	%		$	5.75			$	1,206,402,430			$	507,248,153
Disposition Subsequent to 9/30/16
Vacant			(D)				(1	)			(59,425	)			-0-				0.0	%			-0-				0.0	%			-0-				(5,157,126	)			-0-
Pro Forma Total							99				16,289,531				16,289,531				100.0	%		$	93,613,000				100.0	%		$	5.75			$	1,201,245,304			$	507,248,153

 

(A) Does not include $11,065 of vacant land.

 

(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.

 

(D) Our vacant property located in White Bear Lake, MN was sold on 10/27/16.

 

Fourth Quarter FY 2016 & FY 2016 Supplemental of Monmouth Real Estate Investment Corp. Page 13 of 23

 

 

Property Table by State  

(unaudited)

 

State						Property Count				Square Footage				Occupied Square Footage				% of Total sf				Annual Rent				% of Total Ann. Rent				Rent Per sf Occup.				Undepreciated Cost				Mortgage Balance
Florida							11				1,448,215				1,448,215				9.0	%		$	10,290,000				11.3	%			7.11			$	141,434,425			$	68,168,030
Texas							9				1,379,468				1,379,468				8.6	%			10,474,000				11.5	%			7.59				131,532,565				58,081,639
Kentucky							3				1,295,940				1,295,940				8.1	%			5,014,000				5.5	%			3.87				66,071,852				42,336,028
Mississippi							4				1,158,889				1,158,889				7.2	%			4,359,000				4.8	%			3.76				55,224,199				33,750,368
Ohio							7				1,032,469				1,032,469				6.4	%			6,074,000				6.7	%			5.88				72,767,472				28,946,267
Indiana							2				999,176				999,176				6.2	%			4,184,000				4.6	%			4.19				61,446,391				35,050,164
Illinois							9				958,045				958,045				6.0	%			6,192,000				6.8	%			6.46				81,842,244				10,051,077
Tennessee							3				891,777				891,777				5.6	%			3,058,000				3.3	%			3.43				33,848,216				15,878,083
Kansas							4				813,043				813,043				5.1	%			4,641,000				5.1	%			5.71				60,936,352				34,623,651
Missouri							5				804,397				804,397				5.0	%			3,079,000				3.4	%			3.83				39,277,974				9,199,771
North Carolina							3				585,224				585,224				3.7	%			2,909,000				3.2	%			4.97				44,656,386				20,001,944
South Carolina							3				571,115				571,115				3.6	%			3,552,000				3.9	%			6.22				36,368,552				8,596,685
Pennsylvania							3				504,040				504,040				3.1	%			3,036,000				3.3	%			6.02				36,764,873				16,717,886
Michigan							3				489,571				489,571				3.1	%			3,472,000				3.8	%			7.09				41,248,198				16,083,458
Virginia							5				407,265				407,265				2.5	%			2,438,000				2.7	%			5.99				34,480,436				7,840,633
Colorado							3				363,597				363,597				2.3	%			3,040,000				3.3	%			8.36				42,058,523				20,965,637
Georgia							3				307,662				307,662				1.9	%			1,743,000				1.9	%			5.67				22,194,624				774,093
Arizona							1				283,358				283,358				1.8	%			1,346,000				1.5	%			4.75				16,824,226				5,299,383
Wisconsin							2				238,666				238,666				1.5	%			1,369,000				1.5	%			5.74				15,952,361				3,260,401
New York							3				230,381				230,381				1.4	%			1,890,000				2.1	%			8.20				20,382,097				4,129,647
Washington							1				210,445				210,445				1.3	%			1,962,000				2.1	%			9.32				30,210,680				19,881,817
Oklahoma							2				204,580				204,580				1.3	%			1,305,000				1.4	%			6.38				16,328,293				6,336,007
Louisiana							1				175,315				175,315				1.1	%			1,258,000				1.4	%			7.18				18,410,000				12,468,713
Maryland							1				144,523				144,523				0.9	%			1,426,000				1.6	%			9.87				14,512,355				-0-
New Jersey							2				124,538				124,538				0.8	%			1,317,000				1.4	%			12.16				7,976,469				1,898,199
Minnesota			(B)				2				119,823				60,398				0.7	%			372,000				0.4	%			6.18				10,377,126				2,612,978
Nebraska							1				89,115				89,115				0.6	%			446,000				0.5	%			5.00				5,944,691				-0-
Alabama							1				88,653				88,653				0.6	%			590,000				0.6	%			6.66				6,605,131				795,594
Connecticut							1				54,812				54,812				0.3	%			329,000				0.2	%			6.00				3,463,824				-0-
Iowa							1				36,270				36,270				0.3	%			140,000				0.2	%			3.86				2,161,895				-0-
Total as of 9/30/16							99				16,010,372				15,950,947				100.0	%		$	91,305,000				100.0	%		$	5.72				(A) $1,171,302,430			$	483,748,153
Acquisition Subsequent to 9/30/16
New York							1				338,584				338,584				2.1	%			2,308,000				2.5	%			6.82				35,100,000				23,500,000
Pro Forma Total with Acquisition Subsequent to 9/30/16							100				16,348,956				16,289,531				100.0	%		$	93,613,000				100.0	%		$	5.75			$	1,206,402,430			$	507,248,153
Disposition Subsequent to 9/30/16
Minnesota			(B)				(1	)			(59,425	)			-0-				-0-				-0-				-0-				-0-				(5,157,126	)			-0-
Pro Forma Total							99				16,289,531				16,289,531				100.0	%		$	93,613,000				100.0	%		$	5.75			$	1,201,245,304			$	507,248,153

 

(A) Does not include $11,065 of vacant land.

(B) Our vacant property located in White Bear Lake, MN was sold on 10/27/16.

 

Fourth Quarter FY 2016 & FY 2016 Supplemental of Monmouth Real Estate Investment Corp. Page 14 of 23

 

 

Lease Expirations  

(unaudited)  

 

Fiscal Year						Property Count				Square Footage				% of Total sf				Annual Rent				% of Total Ann. Rent				Rent Per sf Occup.				Lease Exp. Term in Years				Undepreciated  Cost				Mortgage Balance
2017(B)							9				1,038,804				6.5	%		$	6,161,000				6.7	%		$	5.93				0.7			$	74,871,115			$	5,891,210
2018(B)							15				1,324,159				8.3	%			7,760,000				8.5	%			5.86				1.6				90,474,349				15,446,300
2019							9				1,370,849				8.6	%			7,091,000				7.8	%			5.17				2.6				81,415,015				24,554,105
2020							4				383,449				2.4	%			2,102,000				2.3	%			5.48				3.7				27,373,089				349,658
2021							7				684,692				4.3	%			3,335,000				3.7	%			4.87				4.7				46,749,236				8,321,114
2022							7				1,138,320				7.1	%			6,339,000				6.9	%			5.57				5.5				75,756,452				33,611,239
2023							10				1,302,007				8.1	%			8,019,000				8.8	%			6.16				6.8				100,068,191				39,770,922
2024							11				1,743,587				10.9	%			10,579,000				11.6	%			6.07				7.7				130,495,799				47,457,765
2025(B)							9				2,404,478				15.0	%			11,989,000				13.1	%			4.99				8.6				158,659,122				87,202,627
2026							5				748,154				4.7	%			6,182,000				6.8	%			8.26				9.6				86,055,233				45,994,555
2027							3				395,691				2.5	%			2,189,000				2.4	%			5.53				10.6				26,905,640				5,299,383
2028							1				861,889				5.4	%			2,934,000				3.2	%			3.40				11.8				36,914,917				25,000,000
2029							2				262,613				1.6	%			1,513,000				1.7	%			5.76				12.8				21,954,950				9,701,419
2030							4				1,044,832				6.5	%			7,366,000				8.1	%			7.05				13.5				109,094,466				69,838,008
2031							2				624,685				3.9	%			4,800,000				5.1	%			7.69				14.5				69,517,000				48,615,000
2034							1				558,600				3.5	%			2,166,000				2.4	%			3.88				17.1				26,767,850				16,694,848
Various tenants at retail shopping center							1				64,138				0.4	%			780,000				0.9	%			12.16				-0-				3,072,880				-0-
Vacant			(C)				1				59,425				0.4	%			-0-				0.0	%			-0-				-0-				5,157,126				-0-
Total as of 9/30/16							99				16,010,372				100.0	%		$	91,305,000				100.0	%		$	5.72				7.4				(A) $1,171,302,430			$	483,748,153
Acquisition Subsequent to 9/30/16
2031							1				338,584				2.1	%			2,308,000				2.5	%			6.82				14.5				35,100,000				23,500,000
Pro Forma Total with Acquisition Subsequent to 9/30/16							100				16,348,956				100.0	%		$	93,613,000				100.0	%		$	5.75				7.6			$	1,206,402,430			$	507,248,153
Disposition Subsequent to 9/30/16
Vacant			(C)				(1	)			(59,425	)			(0.4	%)			-0-				0.0	%			-0-				-0-				(5,157,126	)			-0-
Pro Forma Total							99				16,289,531				100.0	%		$	93,613,000				100.0	%		$	5.75				7.6			$	1,201,245,304			$	507,248,153

 

(A) Does not include $11,065 of vacant land.

 

(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.

 

(C) Our vacant property located in White Bear Lake, MN was sold on 10/27/16.

 

Fourth Quarter FY 2016 & FY 2016 Supplemental of Monmouth Real Estate Investment Corp. Page 15 of 23

 

 

Recent Acquisitions During Fiscal 2016

(unaudited) 

 

No		Tenant		City (MSA)		State				Fiscal Year Acquisition		Square Footage				Annual Rent				Rent Per sf Occup.				Lease Expiration		Purchase  Price				Initial Mortgage 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
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
5		FedEx Ground Package System, Inc.		Colorado Springs			CO			2016			225,362				1,832,000				8.13			1/31/2026			28,845,500				18,730,000
6		Challenger Lifts, Inc. (Snap-on Inc.)		Louisville			KY			2016			137,500				835,000				6.07			6/7/2026			11,304,000				7,350,000
7		FedEx Ground Package System, Inc.		Davenport (Orlando)			FL			2016			310,922				2,604,000				8.38			4/30/2031			37,780,000				26,400,000
8		FedEx Ground Package System, Inc.		Olathe (Kansas City)			KS			2016			313,763				2,196,000				7.00			5/31/2031			31,737,000				22,215,000
		Total as of 9/30/16											1,829,884			$	14,076,000			$	7.69					$	210,747,341			$	141,586,000
Acquisition Subsequent to 9/30/16
9		FedEx Ground Package System, Inc.		Hamburg (Buffalo)			NY			2017			338,584			$	2,308,000			$	6.82			3/31/2031		$	35,100,000			$	23,500,000
													338,584			$	2,308,000			$	6.82					$	35,100,000			$	23,500,000

 

Fourth Quarter FY 2016 & FY 2016 Supplemental of Monmouth Real Estate Investment Corp. Page 16 of 23

 

 

Property Table

(unaudited)

 

														Fiscal Year						Square				Annual				Rent Per sf				Lease Exp. Term in				Undepreciated				Mortgage
No		Tenant						City (MSA)		State				Acquisition		Occup.				Footage				Rent				Occup.				Years				Cost				Balance
1		Milwaukee Electric Tool Corporation						Olive Branch (Memphis, TN)			MS			2013			100.0	%			861,889			$	2,934,000			$	3.40				11.8			$	36,914,917			$	25,000,000
2		ULTA, Inc.						Greenwood (Indianapolis)			IN			2015			100.0	%			671,354				2,651,000				3.95				8.8				37,500,391				22,760,488
3		Jim Beam Brands Company						Frankfort			KY			2015			100.0	%			599,840				2,013,000				3.36				8.3				28,000,000				18,352,289
4		TreeHouse Private Brands, Inc.						Buckner (Louisville)			KY			2014			100.0	%			558,600				2,166,000				3.88				17.1				26,767,852				16,694,848
5		FedEx Supply Chain Services, Inc.						Memphis			TN			2010			100.0	%			449,900				1,327,000				2.95				2.7				14,620,887				6,667,886
6		Woodstream Corporation			(B)			St. Joseph			MO			2001			100.0	%			256,000				896,000				3.50				1.0				8,848,278				-0-
		Altec Industries, Inc.			(B)			St. Joseph			MO			2001			100.0	%			126,880				349,000				2.75				1.4				4,385,428				-0-
7		CBOCS Distribution, Inc.						Lebanon (Nashville)			TN			2011			100.0	%			381,240				1,420,000				3.72				7.8				14,215,126				7,659,116
8		Best Buy Warehousing Logistics, Inc.						Streetsboro (Cleveland)			OH			2012			100.0	%			368,060				1,641,000				4.46				5.3				19,600,000				10,446,469
9		FedEx Ground Package System, Inc.						Concord (Charlotte)			NC			2016			100.0	%			330,717				2,078,000				6.28				8.8				31,975,897				20,001,944
10		FedEx Ground Package System, Inc.						Indianapolis			IN			2014			100.0	%			327,822				1,533,000				4.68				7.6				23,946,000				12,289,676
11		FedEx Ground Package System, Inc.						Olathe (Kansas City)			KS			2016			100.0	%			313,763				2,196,000				7.00				14.3				31,737,000				22,215,000
12		FedEx Ground Package System, Inc.						Davenport (Orlando)			FL			2016			100.0	%			310,922				2,604,000				8.38				14.6				37,780,000				26,400,000
13		FedEx Ground Package System, Inc.						Fort Worth (Dallas)			TX			2015			100.0	%			304,608				2,362,000				7.75				13.6				35,300,832				23,431,093
14		Science Applications International						Hanahan (Charleston)			SC			2005			100.0	%			302,400				1,462,000				4.83				2.6				13,340,592				5,605,514
15		FedEx Ground Package System, Inc.						Jacksonville			FL			2015			100.0	%			297,579				1,992,000				6.69				13.3				30,645,954				18,453,112
16		Western Container Corp.						Tolleson (Phoenix)			AZ			2003			100.0	%			283,358				1,346,000				4.75				10.6				16,824,226				5,299,383
17		International Paper Company						Edwardsville (Kansas City)			KS			2014			100.0	%			280,000				1,326,000				4.74				6.9				18,294,108				10,648,115
18		NF&M International			(C)			Monaca (Pittsburgh)			PA			1988			100.0	%			174,802				832,000				4.76				8.3				5,337,378				-0-
		Datatel Resources Corp.			(C)			Monaca (Pittsburgh)			PA			1988			100.0	%			80,856				242,000				2.99				1.2				2,468,845				-0-
19		FedEx Ground Package System, Inc.						Orion			MI			2007			100.0	%			245,633				1,908,000				7.77				6.8				22,885,636				8,580,058
20		Anda Pharmaceuticals, Inc.						Olive Branch (Memphis, TN)			MS			2012			100.0	%			234,660				1,196,000				5.10				5.8				14,550,000				8,750,368
21		UGN, Inc.						Monroe (Cincinnati)			OH			2015			100.0	%			232,200				1,050,000				4.52				13.4				12,937,000				8,071,987
22		FedEx Ground Package System, Inc.						Colorado Springs			CO			2016			100.0	%			225,362				1,832,000				8.13				9.3				28,500,000				18,576,282
23		Caterpillar Logistics Services, Inc.						Griffin (Atlanta)			GA			2006			100.0	%			218,120				1,169,000				5.36				0.2				14,868,857				-0-
24		FedEx Ground Package System, Inc.						Burlington (Seattle/Everett)			WA			2016			100.0	%			210,445				1,962,000				9.32				13.9				30,210,680				19,881,817
25		FedEx Ground Package System, Inc.						Sauget (St. Louis, MO)			IL			2015			100.0	%			198,773				1,036,000				5.21				12.7				15,204,950				9,701,419
26		Anheuser-Busch, Inc.						Granite City (St. Louis, MO)			IL			2001			100.0	%			184,800				806,000				4.36				5.2				12,542,814				-0-
27		United Technologies Corporation						Carrollton (Dallas)			TX			2010			100.0	%			184,317				1,576,000				8.55				2.3				17,769,106				7,960,781
28		FedEx Ground Package System, Inc.						Spring (Houston)			TX			2014			100.0	%			181,176				1,581,000				8.73				8.0				19,283,798				9,126,834
29		Carlisle Tire & Wheel Company						Edwardsville (Kansas City)			KS			2003			100.0	%			179,280				787,000				4.39				1.7				7,225,401				397,513
30		FedEx Ground Package System, Inc.						Ft. Mill (Charlotte, NC)			SC			2010			100.0	%			176,939				1,415,000				8.00				7.1				15,413,307				1,926,986
31		FedEx Ground Package System, Inc.						Covington (New Orleans)			LA			2016			100.0	%			175,315				1,258,000				7.18				8.8				18,410,000				12,468,713
32		FedEx Ground Package System, Inc.						Livonia (Detroit)			MI			2013			100.0	%			172,005				1,194,000				6.94				5.5				13,762,030				7,503,400
33		Home Depot USA, Inc.						Montgomery (Chicago)			IL			2004			100.0	%			171,200				978,000				5.71				3.8				11,298,367				-0-
34		FedEx Ground Package System, Inc.						Tampa			FL			2004			100.0	%			170,779				1,614,000				9.45				9.8				19,696,102				6,633,049
35		FedEx Ground Package System, Inc.						Lindale (Tyler)			TX			2015			100.0	%			163,378				725,000				4.44				7.8				9,930,000				6,378,382
36		Bunzl Distribution Midcentral, Inc.						Kansas City			MO			2015			100.0	%			158,417				741,000				4.68				5.0				9,600,000				6,958,091
37		FedEx Ground Package System, Inc.						Oklahoma City			OK			2012			100.0	%			158,340				1,048,000				6.62				8.8				12,580,262				4,401,832
38		FedEx Ground Package System, Inc.						Waco			TX			2012			100.0	%			150,710				1,078,000				7.15				8.9				12,546,157				4,799,919
39		Victory Packaging, L.P.						Fayetteville			NC			1997			100.0	%			148,000				470,000				3.18				4.4				5,441,876				-0-
40		FedEx Ground Package System, Inc.						Beltsville (Washington, DC)			MD			2001			100.0	%			144,523				1,426,000				9.87				1.8				14,512,355				-0-
41		FedEx Ground Package System, Inc.						El Paso			TX			2006			100.0	%			144,149				1,345,000				9.33				7.0				12,431,193				3,259,726
42		FedEx Ground Package System, Inc.						Cocoa			FL			2008			100.0	%			144,138				1,112,000				7.71				8.0				14,127,449				5,063,864
43		FedEx Ground Package System, Inc.						Cudahy (Milwaukee)			WI			2001			100.0	%			139,564				901,000				6.46				0.7				9,382,361				-0-
44		Challenger Lifts, Inc (Snap-on Inc.)						Louisville			KY			2016			100.0	%			137,500				835,000				6.07				9.7				11,304,000				7,288,891
45		FedEx Ground Package System, Inc.						Richfield (Cleveland)			OH			2006			100.0	%			131,152				1,493,000				11.38				8.0				16,435,478				3,078,731
46		General Electric Company						Imperial (Pittsburgh)			PA			2016			100.0	%			125,860				1,311,000				10.42				9.3				19,950,000				12,700,739
47		FedEx Ground Package System, Inc.						Wheeling (Chicago)			IL			2003			100.0	%			123,000				1,386,000				11.27				0.7				18,537,652				-0-
48		FedEx Ground Package System, Inc.						Altoona			PA			2014			100.0	%			122,522				651,000				5.31				6.9				9,008,650				4,017,147
49		FedEx Ground Package System, Inc.			(E)			Edinburg			TX			2011			100.0	%			113,582				598,000				5.27				5.0				11,423,872				-0-
50		FedEx Corporation						Mechanicsville (Richmond)			VA			2001			100.0	%			112,799				541,000				4.80				6.6				7,758,181				-0-
51		FedEx Corporation						Orlando			FL			2008			100.0	%			110,638				666,000				6.02				1.2				8,554,432				4,342,604
52		Style Crest, Inc.						Winston-Salem			NC			2002			100.0	%			106,507				361,000				3.39				4.5				7,238,613				-0-
53		FedEx Ground Package System, Inc.						Cheektowaga (Buffalo)			NY			2000			100.0	%			104,981				966,000				9.20				2.9				10,960,822				343,548
54		FedEx Ground Package System, Inc.						West Chester Twp (Cincinnati)			OH			1999			100.0	%			103,818				532,000				5.12				6.9				5,728,690				2,071,107
55		FedEx Ground Package System, Inc.						Roanoke			VA			2013			100.0	%			103,402				755,000				7.30				6.6				10,200,000				5,321,390
56		Pittsburgh Glass Works LLC.						O’ Fallon (St. Louis)			MO			1994			100.0	%			102,135				427,000				4.18				1.7				4,245,913				-0-
57		FedEx Ground Package System, Inc.						Green Bay			WI			2013			100.0	%			99,102				468,000				4.72				6.7				6,570,000				3,260,401
58		Holland 1916 Inc.						Liberty (Kansas City)			MO			1998			100.0	%			95,898				341,000				3.56				2.7				7,397,881				-0-
59		FedEx Corporation						Jacksonville			FL			1999			100.0	%			95,883				518,000				5.40				2.7				6,246,401				1,384,194
60		FedEx Corporation						Tampa			FL			2006			100.0	%			95,662				603,000				6.30				1.0				7,592,861				3,900,447

 

Fourth Quarter FY 2016 & FY 2016 Supplemental of Monmouth Real Estate Investment Corp. Page 17 of 23

 

 

 Property Table

(unaudited)

 

														Fiscal Year						Square				Annual				Rent Per sf				Lease Exp. Term in				Undepreciated				Mortgage
No		Tenant						City (MSA)		State				Acquisition		Occup.				Footage				Rent				Occup.				Years				Cost				Balance
61		FedEx Ground Package System, Inc.						Hanahan (Charleston)			SC			2005			100.0	%			91,776			$	675,000			$	7.35				1.8			$	7,614,653			$	1,064,185
62		National Oilwell Varco, Inc.						Houston			TX			2010			100.0	%			91,295				746,000				8.17				6.0				8,083,107				3,124,904
63		FedEx Corporation						Omaha			NE			1999			100.0	%			89,115				446,000				5.00				7.1				5,944,691				-0-
64		Joseph T. Ryerson and Son, Inc.						Elgin (Chicago)			IL			2002			100.0	%			89,052				506,000				5.68				3.3				6,932,916				349,658
65		FedEx Ground Package System, Inc.						Huntsville			AL			2005			100.0	%			88,653				590,000				6.66				9.8				6,605,131				795,594
66		FedEx Ground Package System, Inc.						Ft. Myers			FL			2003			100.0	%			87,500				433,000				4.95				0.7				5,017,447				-0-
67		CHEP USA, Inc.						Roanoke			VA			2007			100.0	%			83,000				494,000				5.95				8.4				7,405,447				2,519,243
68		FedEx Corporation						Bedford Heights (Cleveland)			OH			2007			100.0	%			82,269				408,000				4.96				1.9				6,863,879				2,685,791
69		RGH Enterprises, Inc.						Halfmoon (Albany)			NY			2012			100.0	%			75,000				596,000				7.95				5.2				5,525,600				3,786,099
70		FedEx Corporation						Schaumburg (Chicago)			IL			1997			100.0	%			73,500				483,000				6.57				10.5				4,981,414				-0-
71		FedEx Corporation						Romulus (Detroit)			MI			1998			100.0	%			71,933				370,000				5.14				4.7				4,600,532				-0-
72		FedEx Ground Package System, Inc.						Denver			CO			2005			100.0	%			69,865				564,000				8.07				1.8				6,354,051				1,059,646
73		Tampa Bay Grand Prix						Tampa			FL			2005			100.0	%			68,385				289,000				4.23				4.0				5,677,982				-0-
74		FedEx Ground Package System, Inc.						Colorado Springs			CO			2006			100.0	%			68,370				644,000				9.42				2.0				7,204,472				1,329,709
75		Sherwin-Williams Company						Rockford			IL			2011			100.0	%			66,387				477,000				7.19				7.3				5,551,227				-0-
76		Kellogg Sales Company						Kansas City			MO			2007			100.0	%			65,067				325,000				4.99				1.8				4,800,474				2,241,680
77		Various Tenants at Retail Shopping Center						Somerset			NJ			1970			100.0	%			64,138				780,000				12.16				na				3,072,880				-0-
78		The American Bottling Company						Cincinnati			OH			2015			100.0	%			63,840				477,000				7.47				13.0				6,750,000				-0-
79		FedEx Corporation						Chattanooga			TN			2007			100.0	%			60,637				311,000				5.13				1.1				5,012,203				1,551,081
80		SOFIVE, Inc.						Carlstadt (New York, NY)			NJ			2001			100.0	%			60,400				537,000				8.89				8.3				4,903,589				1,898,199
81		FedEx Ground Package System, Inc.						Stewartville (Rochester)			MN			2013			100.0	%			60,398				372,000				6.16				6.7				5,220,000				2,612,978
82		United Technologies Corporation						Richmond			VA			2004			100.0	%			60,000				319,000				5.32				2.2				4,768,309				-0-
83		Vacant			(D)			White Bear Lake (Minneapolis/St. Paul)			MN			2001			0.00	%			59,425				-0-				na				na				5,157,126				-0-
84		FedEx Ground Package System, Inc.						Augusta			GA			2005			100.0	%			59,358				453,000				7.63				1.7				5,354,035				774,093
85		Kellogg Sales Company						Newington (Hartford)			CT			2001			100.0	%			54,812				329,000				6.00				3.4				3,463,824				-0-
86		Siemens Real Estate						Lebanon (Cincinnati)			OH			2012			100.0	%			51,130				473,000				9.25				2.6				4,452,425				2,592,182
87		Kellogg Sales Company						Orangeburg (New York)			NY			1993			100.0	%			50,400				328,000				6.51				1.4				3,895,675				-0-
88		FedEx Corporation						Charlottesville			VA			1999			100.0	%			48,064				329,000				6.85				0.9				4,348,499				-0-
89		FedEx Ground Package System, Inc.						Corpus Christi			TX			2012			100.0	%			46,253				463,000				10.01				4.9				4,764,500				-0-
90		The American Bottling Company						Tulsa			OK			2014			100.0	%			46,240				257,000				5.56				7.4				3,748,031				1,934,175
91		The Coca-Cola Company						Topeka			KS			2009			100.0	%			40,000				332,000				8.30				5.0				3,679,843				1,363,023
92		B/E Aerospace, Inc.						Rockford			IL			2015			100.0	%			38,833				360,000				9.27				10.8				5,100,000				-0-
93		Keystone Automotive Industries MN, Inc.						Urbandale (Des Moines)			IA			1994			100.0	%			36,270				140,000				3.86				0.5				2,161,895				-0-
94		FedEx Corporation						Richland (Jackson)			MS			1994			100.0	%			36,000				120,000				3.33				7.5				1,900,691				-0-
95		FedEx Corporation						Punta Gorda			FL			2007			100.0	%			34,624				304,000				8.78				0.7				4,113,265				1,990,760
96		FedEx Corporation						Lakeland			FL			2006			100.0	%			32,105				155,000				4.83				1.2				1,982,532				-0-
97		FedEx Corporation						Augusta			GA			2006			100.0	%			30,184				121,000				4.01				6.2				1,971,732				-0-
98		Graybar Electric Company						Ridgeland (Jackson)			MS			1993			100.0	%			26,340				109,000				4.14				2.8				1,858,591				-0-
99		Sherwin-Williams Company						Burr Ridge (Chicago)			IL			1997			100.0	%			12,500				160,000				12.80				5.1				1,692,904				-0-
		Total as of 9/30/16															99.6	%			16,010,372			$	91,305,000			$	5.72				7.4				(A) $1,171,302,430			$	483,748,153
		Acquisition Subsequent to 9/30/16
100		FedEx Ground Package System, Inc.						Hamburg (Buffalo)			NY			2017			100.0	%			338,584				2,308,000				6.82				14.5				35,100,000				23,500,000
		Pro Forma Total with Acquisition Subsequent to 9/30/16															99.6	%			16,348,956			$	93,613,000			$	5.75				7.6			$	1,206,402,430			$	507,248,153
		Disposition Subsequent to 9/30/16
99		Vacant			(D)			White Bear Lake (Minneapolis/St. Paul)			MN			2001			0.00	%			(59,425	)			-0-				na				na				(5,157,126	)			-0-
		Pro Forma Total															100.0	%			16,289,531			$	93,613,000			$	5.75				7.6			$	1,201,245,304			$	507,248,153

 

(A) Does not include $11,065 of vacant land.

 

(B) Both tenants occupy one property.

 

(C) Both tenants occupy one property.

 

(D) Our vacant property located in White Bear Lake, MN was sold on 10/27/16.

 

(E) Not reflected above – On October 1, 2016, a 50,741 square foot expansion of the building was completed, resulting in a new 10 year lease which extended the prior lease expiration date from September 2021 to September 2026. Inaddition, the expansion resulted in an increase in annual rent effective from the date of completion of approximately $499,000.

 

Fourth Quarter FY 2016 & FY 2016 Supplemental of Monmouth Real Estate Investment Corp. Page 18 of 23

 

 

 

 

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 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 dividend and interest 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 and plus costs associated with the Redemption of Preferred Stock.

 

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.

 

Fourth Quarter FY 2016 & FY 2016 Supplemental of Monmouth Real Estate Investment Corp. Page 19 of 23

 

 

FOR IMMEDIATE RELEASE

November 28, 2016

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, 2016

 

FREEHOLD, NJ, November 28, 2016........ Monmouth Real Estate Investment Corporation (NYSE:MNR) reported Net Income Attributable to Common Shareholders of $20,532,000 or $0.31 per diluted share for the fiscal year ended September 30, 2016 as compared to $16,999,000 or $0.29 per diluted share for the fiscal year ended September 30, 2015 representing an increase of 6.9%. Core Funds from Operations (Core FFO) were $50,271,000 or $0.77 per diluted share for the fiscal year ended September 30, 2016 as compared to $35,276,000 or $0.60 per diluted share for the fiscal year ended September 30, 2015 representing an increase in Core FFO per share of 28.3%. Adjusted Funds from Operations (AFFO), for the fiscal year ended September 30, 2016 were $45,865,000 or $0.70 per diluted share versus $33,977,000 or $0.57 per diluted share for the fiscal year ended September 30, 2015 representing an increase in AFFO per share of 22.8%.

 

Net Income Attributable to Common Shareholders for the three months ended September 30, 2016 was $4,685,000 or $0.07 per diluted share as compared to $8,036,000 or $0.13 per diluted share for the three months ended September 30, 2015 representing a decrease in Net Income Attributable to Common Shareholders per share of 46.2%. Core FFO for the three months ended September 30, 2016 was $14,993,000 or $0.22 per diluted share as compared to $9,180,000 or $0.15 per diluted share for the three months ended September 30, 2015 representing an increase in Core FFO per share of 46.7%. AFFO for the three months ended September 30, 2016 was $11,964,000 or $0.18 per diluted share versus $9,159,000 or $0.15 per diluted share for the three months ended September 30, 2015 representing an increase in AFFO per share of 20.0%.

 

A summary of significant financial information for the three and twelve months ended September 30, 2016 and 2015 is as follows:

 

		Three Months Ended September 30,
		2016				2015
Rental Revenue		$	22,127,000			$	18,168,000
Reimbursement Revenue		$	3,449,000			$	2,400,000
Net Operating Income (NOI) (1)		$	21,845,000			$	17,732,000
Total Expenses		$	13,943,000			$	10,875,000
Dividend and Interest Income		$	1,566,000			$	853,000
Gain on Sale of Securities Transactions, net		$	3,239,000			$	428,000
Net Income		$	10,193,000			$	10,188,000
Net Income Attributable to Common Shareholders		$	4,685,000			$	8,036,000
Net Income Attributable to Common Shareholders Per Diluted Common Share		$	0.07			$	0.13
Core FFO (1)		$	14,993,000			$	9,180,000
Core FFO per Diluted Common Share (1)		$	0.22			$	0.15
AFFO (1)		$	11,964,000			$	9,159,000
AFFO per Diluted Common Share (1)		$	0.18			$	0.15
Dividends Declared per Common Share		$	0.16			$	0.15
Weighted Avg. Diluted Common Shares Outstanding			68,159,000				60,514,000

 

		Twelve Months Ended September 30,
		2016				2015
Rental Revenue		$	81,592,000			$	67,059,000
Reimbursement Revenue		$	13,324,000			$	10,716,000
Lease Termination Income		$	-0-			$	239,000
Net Operating Income (NOI) (1)		$	80,187,000			$	65,285,000
Total Expenses		$	49,484,000			$	42,115,000
Dividend and Interest Income		$	5,616,000			$	3,724,000
Gain on Sale of Securities Transactions, net		$	4,399,000			$	805,000
Net Income		$	32,495,000			$	25,606,000
Net Income Attributable to Common Shareholders		$	20,532,000			$	16,999,000
Net Income Attributable to Common Shareholders Per Diluted Common Share		$	0.31			$	0.29
Core FFO (1)		$	50,271,000			$	35,276,000
Core FFO per Diluted Common Share (1)		$	0.77			$	0.60
AFFO (1)		$	45,865,000			$	33,977,000
AFFO per Diluted Common Share (1)		$	0.70			$	0.57
Dividends Declared per Common Share		$	0.64			$	0.60
Weighted Avg. Diluted Common Shares Outstanding			65,558,000				59,201,000

 

A summary of significant balance sheet information as of September 30, 2016 and 2015 is as follows:

 

		September 30, 2016				September 30, 2015
Net Real Estate Investments		$	1,022,483,000			$	816,111,000
Securities Available for Sale at Fair Value		$	73,605,000			$	54,541,000
Total Assets		$	1,229,758,000			$	915,992,000
Mortgage Notes Payable		$	483,748,000			$	373,991,000
Loans Payable		$	80,791,000			$	85,041,000
Total Shareholders’ Equity		$	597,858,000			$	446,011,000

 

Fourth Quarter FY 2016 & FY 2016 Supplemental of Monmouth Real Estate Investment Corp. Page 20 of 23

 

 

Michael P. Landy, President and CEO, commented on the results for the fiscal year 2016,

 

“Fiscal 2016 was a very productive year for Monmouth. Our Company executed exceptionally well and our achievements were many.

 

During the year, the Company accomplished the following:

 

Solid Financial Results

 

	●	Generated AFFO per share growth of 23%, representing our third consecutive year of double digit growth
	●	Increased our common stock dividend by 6.7% on October 1, 2015
	●	Increased our Gross Revenue by 23% to $100.5 million
	●	Increased our Net Operating Income by 23% to $80.2 million

 

Strong Growth Record and Attractive Pipeline

 

	●	Acquired 1.8 million square feet of high-quality industrial space for $210.7 million comprising eight brand new, Class A built-to-suit properties, all leased long term to investment grade tenants
	●	Completed three expansion projects for approximately $13.0 million, adding additional rental space of 261,000 square feet
	●	Generated 15% year-over-year growth in gross leasable area from acquisitions and expansions
	●	Entered into commitments to purchase nine new build-to-suit properties containing 2.4 million total square feet, representing approximately $247.5 million scheduled to close over the next several quarters, including one property we acquired subsequent to fiscal yearend

 

Strong Portfolio Performance

 

	●	Renewed all three leases totaling 326,000 square feet that were scheduled to expire in fiscal 2016, resulting in a 100% tenant retention rate for the second consecutive year
	●	Increased rents on lease renewals by 5.3% on a U.S. GAAP straight-line basis
	●	Increased our sector leading occupancy rate by 190 basis points from 97.7% to 99.6% at fiscal yearend
	●	Achieved a 100% occupancy rate subsequent to fiscal yearend
	●	Extended our weighted average lease maturity from 7.2 years to 7.6 years currently

 

Strengthened Capitalization

 

	●	Reduced our net debt to total market capitalization from 38.0% to 29.1%
	●	Increased our total market capitalization by 53% to $1.8 billion at fiscal yearend
	●	Raised $135.0 million in gross proceeds through our new Series C Perpetual Preferred offering at 6.125%
	●	Raised approximately $72.2 million in equity through our Dividend Reinvestment and Stock Purchase Plan
	●	Increased and extended our unsecured revolving credit facility from $130 million to $200 million with a $100 million accordion feature, bringing the total potential availability to $300 million
	●	Extended our weighted average debt maturity from 8.1 years to 9.6 years at fiscal yearend
	●	Reduced our weighted average interest rate on our fixed rate debt from 4.9% to 4.5%, and
	●	Generated $4.4 million in net realized gains in addition to the $12.9 million in unrealized gains we held at fiscal yearend on our REIT securities investments.”

 

Mr. Landy stated, “On behalf of the talented team at Monmouth, I am happy to report these exceptional results. The above metrics reflect a strong Company that has clearly enhanced its position over the year. Our business model of investing in well-located, modern industrial buildings, leased primarily to investment-grade tenants has provided our shareholders with reliable returns throughout the business cycle. The high quality of our portfolio is evidenced by our 100% occupancy rate. Fiscal 2016 marked our fourth year out of the past seven in which Monmouth delivered a 100% tenant retention rate, illustrating the mission-critical nature of our property portfolio. Our substantial AFFO per share growth of 23% this year marks our third consecutive year of double-digit increases for this important metric.”

 

“During fiscal 2016, we acquired $210.7 million of brand new, Class A built-to-suit properties leased to investment-grade tenants, and completed several building expansions. Approximately 85% of our rental revenue is generated by investment-grade tenants with the remaining 15% secured by unrated but very strong credits as well. Our securities portfolio delivered exceptional results this year, generating $4.4 million in net realized gains in addition to the $12.9 million in unrealized gains we held at fiscal yearend.”

 

Fourth Quarter FY 2016 & FY 2016 Supplemental of Monmouth Real Estate Investment Corp. Page 21 of 23

 

 

“Our recent $135 million preferred stock offering, combined with our expanded revolving credit facility and our low-levered balance sheet, provide us with the growth capital needed in order to continue to deliver these positive results. Subsequent to fiscal yearend, the Company acquired one brand new built-to-suit property containing 339,000 square feet for $35.1 million and completed a 51,000 square foot building expansion. This brings our current portfolio to a total of 99 properties containing 16.3 million square feet, geographically diversified across 30 states. We are very excited about our best-in-class acquisition pipeline, which now comprises eight new build-to-suit properties containing 2.1 million total square feet, representing approximately $212 million in acquisitions scheduled to close in fiscal 2017 and fiscal 2018.”

 

“The continued migration toward ecommerce will once again be a leading demand driver for industrial space in 2017. This holiday season is expected to deliver record-breaking results for on-line sales and we are working very closely with some of our tenants in order to continue to capture the growth in consumer spending that is heading our way. We recently launched our new and improved website in order to more accurately portray the transformative growth that Monmouth has enjoyed the past several years. I encourage investors to view it in order to best understand our unique Company. Fiscal 2017 is poised to be another successful year at Monmouth and I look forward to reporting continued progress throughout the year.”

 

Monmouth Real Estate Investment Corporation will host its Fiscal Year End and Fourth Quarter 2016 Financial Results Webcast and Conference Call on Tuesday, November 29, 2016 at 10:00 a.m. Eastern Time. Senior management will discuss the results, current market conditions and future outlook.

 

The Company’s Fiscal Year End and Fourth Quarter 2016 financial results being released herein will be available on the Company’s website at www.mreic.reit in the Investor Relations section, under Filings and Reports.

 

To participate in the Webcast, select the 4Q2016 Webcast and Earnings Call link on the homepage of the Company’s website at www.mreic.reit, in the Highlights section. 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 Tuesday, November 29, 2016. It will be available until February 1, 2017, and can be accessed by dialing toll free 877-344-7529 (domestically) and 412-317-0088 (internationally) and entering the passcode 10091370. 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-nine properties located in thirty states, containing a total of approximately 16.3 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 and plus costs associated with the Redemption of Preferred Stock. 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. However, other REITs may use different methodologies to calculate FFO, Core FFO and AFFO and, accordingly, our FFO, Core FFO and AFFO may not be comparable to all other REITs. 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.

 

Fourth Quarter FY 2016 & FY 2016 Supplemental of Monmouth Real Estate Investment Corp. Page 22 of 23

 

 

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 twelve months ended September 30, 2016 and 2015:

 

		Three Months Ended								Twelve Months Ended
		9/30/2016				9/30/2015				9/30/2016				9/30/2015
Net Income Attributable to Common Shareholders		$	4,685,000			$	8,036,000			$	20,532,000			$	16,999,000
Plus: Depreciation Expense (excluding Corporate Office)			6,541,000				5,328,000				23,932,000				19,626,000
Plus: Amortization of Intangible Assets			264,000				330,000				1,178,000				1,370,000
Plus: Amortization of Capitalized Lease Costs			376,000				265,000				956,000				756,000
Less: Gain on Sale of Real Estate Investment			-0-				(5,021,000	)			-0-				(5,021,000	)
FFO Attributable to Common Shareholders			11,866,000				8,938,000				46,598,000				33,730,000
Plus: Acquisition Costs			185,000				242,000				731,000				1,546,000
Plus: Redemption of Preferred Stock			2,942,000				-0-				2,942,000				-0-
Core FFO Attributable to Common Shareholders			14,993,000				9,180,000				50,271,000				35,276,000
Plus: Stock Compensation Expense			620,000				165,000				926,000				449,000
Plus: Depreciation of Corporate Office Tenant Improvements			35,000				8,000				124,000				80,000
Plus: Amortization of Financing Costs			403,000				678,000				1,116,000				1,286,000
Plus: Non-recurring other expense (1)			-0-				-0-				500,000				-0-
Less: Lease Termination Income			-0-				-0-				-0-				(239,000	)
Less: Gain on Sale of Securities Transactions, net			(3,239,000	)			(428,000	)			(4,399,000	)			(805,000	)
Less: U.S. GAAP Straight-line Rent Adjustment			(538,000	)			(282,000	)			(1,710,000	)			(1,446,000	)
Less: Recurring Capital Expenditures			(310,000	)			(162,000	)			(963,000	)			(624,000	)
AFFO Attributable to Common Shareholders		$	11,964,000			$	9,159,000			$	45,865,000			$	33,977,000

 

(1)

Consists of one-time payroll expenditures.

 

The following are the Cash Flows provided (used) by Operating, Investing and Financing Activities for the twelve months ended September 30, 2016 and 2015:

 

		Twelve Months Ended
		9/30/2016				9/30/2015
Operating Activities		$	54,700,000			$	38,062,000
Investing Activities			(227,845,000	)			(194,470,000	)
Financing Activities			256,821,000				148,007,000

 

# # # # #

 

Fourth Quarter FY 2016 & FY 2016 Supplemental of Monmouth Real Estate Investment Corp. Page 23 of 23