Exhibit 99

 

 

 

Table of Contents

 

	Page
Consolidated Balance Sheets	3
Consolidated Statements of Income (Loss)	4
FFO, AFFO and Adjusted EBITDA Reconciliations	5
NOI Reconciliations	6
Financial Highlights	7
Same Property Statistics	8
Consolidated Statements of Cash Flows	10
Capital Structure and Leverage Ratios	11
Debt Maturity	13
Property Table by Tenant	14
Property Table by State	15
Lease Expirations	16
Recent Acquisitions	17
Property Table	18
Definitions	21
Press Release Dated August 4, 2020	22

 

The statement of operations and supplemental statement of operations provided in this supplemental information package present funds from operations (FFO), adjusted funds from operations (AFFO), net operating income (NOI) and adjusted EBITDA, which are REIT industry financial measures that are not calculated in accordance with accounting principles generally accepted in the United States. Please see page 21 for a definition of these supplemental performance measures. Please see the supplemental statement of operations reconciliation for a reconciliation of certain captions in the supplemental statement of operations reported in this supplemental information package to the statement of operations as reported in the Company’s filings with the SEC on Form 10-Q.

 

 

Consolidated Balance Sheets

(in thousands except for per share amounts)

 

		As of				As of
		June 30,				September 30,
		2020				2019
		(unaudited)
ASSETS
Real Estate Investments:
Land		$	249,118			$	239,299
Buildings and Improvements			1,778,055				1,627,219
Total Real Estate Investments			2,027,173				1,866,518
Accumulated Depreciation			(284,058	)			(249,584	)
Real Estate Investments			1,743,115				1,616,934
Cash and Cash Equivalents			12,104				20,179
Securities Available for Sale at Fair Value			118,877				185,250
Tenant and Other Receivables			2,565				1,335
Straight-line Rent Receivable			12,453				11,199
Prepaid Expenses			8,957				6,714
Intangible Assets, net of Accumulated Amortization of $17,225 and $15,686, respectively			17,154				14,970
Capitalized Lease Costs, net of Accumulated Amortization of $4,184 and $3,378, respectively			5,860				5,670
Financing Costs, net of Accumulated Amortization of $259 and $1,352, respectively			1,477				144
Other Assets			8,863				9,553
TOTAL ASSETS		$	1,931,425			$	1,871,948
LIABILITIES AND SHAREHOLDERS’ EQUITY
Liabilities:
Fixed Rate Mortgage Notes Payable, net of Unamortized Debt Issuance Costs		$	804,342			$	744,928
Loans Payable			80,000				95,000
Accounts Payable and Accrued Expenses			4,177				3,570
Other Liabilities			19,121				17,407
Total Liabilities			907,640				860,905
COMMITMENTS AND CONTINGENCIES
Shareholders’ Equity:
6.125% Series C Cumulative Redeemable Preferred Stock, $0.01 Par Value Per Share: 21,900 and 16,400 Shares Authorized as of June 30, 2020 and September 30, 2019, respectively; 17,354 and 13,907 Shares Issued and Outstanding as of June 30, 2020 and September 30, 2019, respectively			433,850				347,678
Common Stock, $0.01 Par Value Per Share: 200,000 and 188,040 Shares Authorized as of June 30, 2020 and September 30, 2019, respectively; 97,972 and 96,399 Shares Issued and Outstanding as of June 30, 2020 and September 30, 2019, respectively			980				964
Excess Stock, $0.01 Par Value Per Share: 200,000 Shares Authorized as of June 30, 2020 and September 30, 2019; No Shares Issued or Outstanding as of June 30, 2020 and September 30, 2019			-0-				-0-
Additional Paid-In Capital			588,955				662,401
Undistributed Income			-0-				-0-
Total Shareholders’ Equity			1,023,785				1,011,043
TOTAL LIABILITIES & SHAREHOLDERS’ EQUITY		$	1,931,425			$	1,871,948

 

 

Consolidated Statements of Income (Loss)

(unaudited) (in thousands)

 

		For The								For The
		Three Months Ended								Nine Months Ended
		6/30/2020				6/30/2019				6/30/2020				6/30/2019
INCOME:
Rental Revenue		$	35,427			$	33,127			$	105,410			$	98,678
Reimbursement Revenue			6,348				5,421				19,772				16,473
TOTAL INCOME			41,775				38,548				125,182				115,151
EXPENSES:
Real Estate Taxes			5,140				4,168				15,205				12,370
Operating Expenses			1,427				1,649				5,258				5,186
General & Administrative Expenses			2,198				2,351				6,858				6,420
Non-recurring Severance Expense			-0-				-0-				786				-0-
Depreciation			11,743				10,833				34,650				32,067
Amortization of Capitalized Lease Costs and Intangible Assets			788				721				2,308				2,144
TOTAL EXPENSES			21,296				19,722				65,065				58,187
OTHER INCOME (EXPENSE):
Dividend Income			2,344				3,686				8,987				11,569
Unrealized Holding Gains (Losses) Arising During the Periods			19,610				(11,609	)			(67,100	)			(38,668	)
Interest Expense, including Amortization of Financing Costs			(8,975	)			(9,275	)			(27,235	)			(27,879	)
TOTAL OTHER INCOME (EXPENSE)			12,979				(17,198	)			(85,348	)			(54,978	)
NET INCOME (LOSS)			33,458				1,628				(25,231	)			1,986
Less: Preferred Dividends			6,607				4,749				19,469				13,650
NET INCOME (LOSS) ATTRIBUTABLE TO COMMON SHAREHOLDERS		$	26,851			$	(3,121	)		$	(44,700	)		$	(11,664	)

 

 

 

FFO, AFFO and Adjusted EBITDA Reconciliations

(unaudited) (in thousands)

 

		For The								For The
		Three Months Ended								Nine Months Ended
		6/30/2020				6/30/2019				6/30/2020				6/30/2019
FFO, AFFO
Net Income (Loss) Attributable to Common Shareholders		$	26,851			$	(3,121	)		$	(44,700	)		$	(11,664	)
Less/Plus: Unrealized Holding (Gains) Losses Arising During the Periods			(19,610	)			11,609				67,100				38,668
Plus: Depreciation Expense (excluding Corporate Office Capitalized Costs)			11,685				10,665				34,474				31,692
Plus: Amortization of Intangible Assets			524				490				1,539				1,495
Plus: Amortization of Capitalized Lease Costs			290				256				846				726
FFO Attributable to Common Shareholders			19,740				19,899				59,259				60,917
Plus: Depreciation of Corporate Office Capitalized Costs			57				168				176				376
Plus: Stock Compensation Expense			98				231				368				574
Plus: Amortization of Financing Costs			327				319				1,084				956
Plus: Non-recurring Severance Expense			-0-				-0-				786				-0-
Less: Recurring Capital Expenditures			(508	)			(702	)			(1,443	)			(1,888	)
Less: Effect of Non-cash U.S. GAAP Straight-line Rent Adjustment			(226	)			(527	)			(1,459	)			(1,352	)
AFFO Attributable to Common Shareholders		$	19,488			$	19,388			$	58,771			$	59,583

 

		For The								For The
		Three Months Ended								Nine Months Ended
		6/30/2020				6/30/2019				6/30/2020				6/30/2019
Adjusted EBITDA
Net Income (Loss) Attributable to Common Shareholders		$	26,851			$	(3,121	)		$	(44,700	)		$	(11,664	)
Plus: Preferred Dividends			6,607				4,749				19,469				13,650
Plus: Interest Expense, including Amortization of Financing Costs			8,975				9,275				27,235				27,879
Plus: Depreciation and Amortization			12,531				11,554				36,958				34,211
Plus: Net Amortization of Acquired Above and Below Market Lease Revenue			26				26				77				77
Less/Plus: Unrealized Holding (Gains) Losses Arising During the Periods			(19,610	)			11,609				67,100				38,668
Adjusted EBITDA		$	35,380			$	34,092			$	106,139			$	102,821

 

 

NOI Reconciliations

(unaudited) (in thousands)

		For The								For The
		Three Months Ended								Nine Months Ended
		6/30/2020				6/30/2019				6/30/2020				6/30/2019
Net Operating Income
Net Income (Loss) Attributable to Common Shareholders		$	26,851			$	(3,121	)		$	(44,700	)		$	(11,664	)
Plus: Preferred Dividends			6,607				4,749				19,469				13,650
Plus: General & Administrative Expenses			2,198				2,351				6,858				6,420
Plus: Non-recurring Severance Expense			-0-				-0-				786				-0-
Plus: Depreciation			11,743				10,833				34,650				32,067
Plus: Amortization of Capitalized Lease Costs and Intangible Assets			788				721				2,308				2,144
Plus: Interest Expense, including Amortization of Financing Costs			8,975				9,275				27,235				27,879
Less/Plus: Unrealized Holding (Gains) Losses Arising During the Periods			(19,610	)			11,609				67,100				38,668
Less: Dividend Income			(2,344	)			(3,686	)			(8,987	)			(11,569	)
Net Operating Income – NOI		$	35,208			$	32,731			$	104,719			$	97,595

 

		For The								For The
		Three Months Ended								Nine Months Ended
		6/30/2020				6/30/2019				6/30/2020				6/30/2019
Components of Net Operating Income Consists of:
Revenues:
Rental Revenue		$	35,427			$	33,127			$	105,410			$	98,678
Reimbursement Revenue			6,348				5,421				19,772				16,473
Total Rental and Reimbursement Revenue			41,775				38,548				125,182				115,151
Expenses:
Real Estate Taxes			5,140				4,168				15,205				12,370
Operating Expenses			1,427				1,649				5,258				5,186
Total Real Estate Taxes and Operating Expenses			6,567				5,817				20,463				17,556
Net Operating Income – NOI		$	35,208			$	32,731			$	104,719			$	97,595

 

 

Financial Highlights

(unaudited) (in thousands except for per share amounts)

 

		For The												For The
		Three Months Ended												Nine Months Ended
		6/30/2020				6/30/2019				Change (%)				6/30/2020				6/30/2019				Change (%)
Weighted Average Common Shares Outstanding
Basic			97,906				94,399				3.7	%			97,548				92,619				5.3	%
Diluted			97,962				94,493				3.7	%			97,626				92,719				5.3	%
Net Income (Loss) Attributable to Common Shareholders		$	26,851			$	(3,121	)			960.3	%		$	(44,700	)		$	(11,664	)			(283.2	)%
Basic		$	0.27			$	(0.03	)			1,000.0	%		$	(0.46	)		$	(0.13	)			(253.8	)%
Diluted			0.27				(0.03	)			1,000.0	%			(0.46	)			(0.13	)			(253.8	)%
Net Operating Income – NOI		$	35,208			$	32,731				7.6	%		$	104,719			$	97,595				7.3	%
Basic		$	0.36			$	0.35				2.9	%		$	1.07			$	1.05				1.9	%
Diluted			0.36				0.35				2.9	%			1.07				1.05				1.9	%
Funds From Operations – FFO		$	19,740			$	19,899				(0.8	)%		$	59,259			$	60,917				(2.7	)%
Basic		$	0.20			$	0.21				(4.8	)%		$	0.61			$	0.66				(7.6	)%
Diluted			0.20				0.21				(4.8	)%			0.61				0.66				(7.6	)%
Adjusted Funds From Operations – AFFO		$	19,488			$	19,388				0.5	%		$	58,771				59,583				(1.4	)%
Basic		$	0.20			$	0.21				(4.8	)%		$	0.60			$	0.64				(6.3	)%
Diluted			0.20				0.21				(4.8	)%			0.60				0.64				(6.3	)%
Dividends Declared per Common Share		$	0.17			$	0.17							$	0.51			$	0.51
Dividend/AFFO Payout Ratio			85.0	%			81.0	%							85.0	%			79.7	%

 

 

Same Property Statistics

(unaudited) (in thousands except for square feet)

 

		For The Three Months Ended
		6/30/2020								6/30/2019				Change				Change %
Total Square Feet / Total Properties			23,375,642 / 118								21,802,835 / 113				1,572,807				7.2	%
Occupancy Percentage at End of Period			99.4	%							98.9	%			50 bps				0.5	%
Same Property Square Feet / Number of Same Properties							21,802,835 / 113
Same Property Occupancy Percentage at End of Period			99.4	%							98.9	%			50 bps				0.5	%
Same Property Net Operating Income (NOI) (GAAP)		$	32,792							$	32,731			$	61				0.2	%
Reversal of Effect of Non-cash U.S. GAAP Straight-line Rent Adjustment			(34	)							(527	)			493
Same Property Cash NOI		$	32,758							$	32,204			$	554				1.7	%

 

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

 

Reconciliation of Same Property NOI to Total NOI

(unaudited) (in thousands)

 

		For The Three Months Ended
		6/30/2020				6/30/2019				Change				Change %
Same Property NOI (GAAP)		$	32,792			$	32,731			$	61				0.2	%
NOI of properties purchased subsequent to March 31, 2019 (one property purchased during fiscal 2019 and four properties purchased during fiscal 2020)			2,416				0
NOI of property expanded subsequent to  March 31, 2019 (no properties expanded during fiscal 2019 or fiscal 2020)			0				0
Total NOI		$	35,208			$	32,731			$	2,477				7.6	%

 

 

Same Property Statistics

(unaudited) (in thousands except for square feet)

 

		For The Nine Months Ended
		6/30/2020								6/30/2019				Change				Change %
Total Square Feet / Total Properties			23,375,642 / 118								21,802,835 / 113				1,572,807				7.2	%
Occupancy Percentage at End of Period			99.4	%							98.9	%			50 bps				0.5	%
Same Property Square Feet / Number of Same Properties							21,040,215 / 110
Same Property Occupancy Percentage at End of Period			99.3	%							98.9	%			40 bps				0.4	%
Same Property Net Operating Income (NOI) (GAAP)		$	92,228							$	91,637			$	591				0.6	%
Reversal of Effect of Non-cash U.S. GAAP Straight-line Rent Adjustment			(844	)							(1,370	)			526
Same Property Cash NOI		$	91,384							$	90,267			$	1,117				1.2	%

 

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

 

Reconciliation of Same Property NOI to Total NOI

(unaudited) (in thousands)

 

		For The Nine Months Ended
		6/30/2020				6/30/2019				Change				Change %
Same Property NOI (GAAP)		$	92,228			$	91,637			$	591				0.6	%
NOI of properties purchased subsequent to September 30, 2018 (three properties purchased during fiscal 2019 and four properties purchased during fiscal 2020)			10,960				4,846
NOI of property expanded subsequent to September 30, 2018 (one property expanded during fiscal 2019)			1,531				1,112
Total NOI		$	104,719			$	97,595			$	7,124				7.3	%

 

 

Consolidated Statements of Cash Flows

(unaudited)(in thousands)

 

		For The
		Nine Months Ended
			6/30/2020				6/30/2019
CASH FLOWS FROM OPERATING ACTIVITIES
Net Income (Loss)		$	(25,231	)		$	1,986
Noncash Items Included in Net Income (Loss):
Depreciation & Amortization			38,043				35,167
Deferred Straight Line Rent			(1,459	)			(1,352	)
Stock Compensation Expense			368				574
Securities Available for Sale Received as Dividend Income			(977	)			(651	)
Unrealized Holding Losses Arising During the Periods			67,100				38,668
Changes in:
Tenant & Other Receivables			(1,153	)			664
Prepaid Expenses			(2,242	)			(1,185	)
Other Assets & Capitalized Lease Costs			(1,999	)			173
Accounts Payable, Accrued Expenses & Other Liabilities			2,482				709
NET CASH PROVIDED BY OPERATING ACTIVITIES			74,932				74,753
CASH FLOWS FROM INVESTING ACTIVITIES
Purchase of Real Estate & Intangible Assets			(160,023	)			(113,406	)
Capital Improvements			(4,726	)			(11,594	)
Return of Deposits on Real Estate			2,000				200
Deposits Paid on Acquisitions of Real Estate			(550	)			(6,400	)
Proceeds from Securities Available for Sale Called for Redemption			250				-0-
Purchase of Securities Available for Sale			-0-				(54,136	)
NET CASH USED IN INVESTING ACTIVITIES			(163,049	)			(185,336	)
CASH FLOWS FROM FINANCING ACTIVITIES
Net Repayments on Loans Payable			(15,000	)			(60,422	)
Proceeds from Fixed Rate Mortgage Notes Payable			100,560				72,500
Principal Payments on Fixed Rate Mortgage Notes Payable			(41,166	)			(50,180	)
Financing Costs Paid on Debt			(2,397	)			(444	)
Proceeds from the Exercise of Stock Options			1,016				567
Proceeds from Underwritten Public Offering of Common Stock, net of offering costs			-0-				132,338
Proceeds from At-The-Market 6.125% Series C Preferred Stock, net of offering costs			84,815				24,049
Proceeds from Issuance of Common Stock in the DRIP, net of Dividend Reinvestments			18,641				44,618
Shares repurchased through the Common Stock Repurchase Plan			(4,276	)			-0-
Preferred Dividends Paid			(19,029	)			(13,520	)
Common Dividends Paid, net of Reinvestments			(43,122	)			(34,616	)
NET CASH PROVIDED BY FINANCING ACTIVITIES			80,042				114,890
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS			(8,075	)			4,307
CASH AND CASH EQUIVALENTS - BEGINNING OF PERIOD			20,179				9,324
CASH AND CASH EQUIVALENTS - END OF PERIOD		$	12,104			$	13,631

 

 

Capital Structure and Leverage Ratios

(unaudited) (in thousands except for per share amounts)

 

		As of				As of				As of
		6/30/2020				6/30/2019				9/30/2019
Fixed Rate Mortgage Notes Payable, net of Unamortized Debt Issuance Costs		$	804,342			$	734,095			$	744,928
Loans Payable			80,000				126,187				95,000
Total Debt			884,342				860,282				839,928
6.125% Series C Cumulative Redeemable Preferred Stock			433,850				312,660				347,678
Common Stock, Additional Paid-In-Capital & Other			589,935				641,112				663,365
Total Shareholders’ Equity			1,023,785				953,772				1,011,043
Total Book Capitalization			1,908,127				1,814,054				1,850,971
Accumulated Depreciation			284,058				238,757				249,584
Total Undepreciated Book Capitalization		$	2,192,185			$	2,052,811			$	2,100,555
Shares Outstanding			97,972				95,155				96,399
Market Price Per Share		$	14.49			$	13.55			$	14.41
Equity Market Capitalization		$	1,419,614			$	1,289,350			$	1,389,107
Total Debt			884,342				860,282				839,928
Total Preferred Stock			433,850				312,660				347,678
Total Market Capitalization		$	2,737,806			$	2,462,292			$	2,576,713
Total Debt		$	884,342			$	860,282			$	839,928
less: Cash and Cash Equivalents			12,104				13,631				20,179
Net Debt		$	872,238			$	846,651			$	819,749
less: Securities Available for Sale at Fair Value (Securities)			118,877				171,040				185,250
Net Debt Less Securities		$	753,361			$	675,611			$	634,499
Net Debt / Total Undepreciated Book Capitalization			39.8	%			41.2	%			39.0	%
Net Debt / Total Market Capitalization			31.9	%			34.4	%			31.8	%
Net Debt Plus Preferred Stock / Total Market Capitalization			47.7	%			47.1	%			45.3	%
Net Debt Less Securities / Total Undepreciated Book Capitalization			34.4	%			32.9	%			30.2	%
Net Debt Less Securities / Total Market Capitalization			27.5	%			27.4	%			24.6	%
Net Debt Less Securities Plus Preferred Stock / Total Market Capitalization			43.4	%			40.1	%			38.1	%
Weighted Average Interest Rate on Fixed Rate Mortgage Debt			4.00	%			4.03	%			4.03	%
Weighted Average Term on Fixed Rate Mortgage Debt			11.2 yrs.				11.5 yrs.				11.3 yrs.
Weighted Average Lease Term			7.2 yrs.				7.8 yrs.				7.6 yrs.

 

 

Capital Structure and Leverage Ratios

(unaudited) (in thousands)

 

		For the Three Months Ended								For the Nine Months Ended								Fiscal Year Ended
		6/30/2020				6/30/2019				6/30/2020				6/30/2019				9/30/2019
Net Income (Loss) Attributable to Common Shareholders		$	26,851			$	(3,121	)		$	(44,700	)		$	(11,664	)		$	11,026
Plus: Preferred Dividends			6,607				4,749				19,469				13,650				18,774
Plus: Interest Expense, including Amortization of Financing Costs			8,975				9,275				27,235				27,879				36,912
Plus: Depreciation and Amortization			12,531				11,554				36,958				34,211				45,890
Plus: Net Amortization of Acquired Above and Below Market Lease Revenue			26				26				77				77				103
Less/Plus: Unrealized Holding (Gains) Losses Arising During the Periods			(19,610	)			11,609				67,100				38,668				24,680
Adjusted EBITDA		$	35,380			$	34,092			$	106,139			$	102,821			$	137,385
Interest Expense, including Amortization of Financing Costs		$	8,975			$	9,275			$	27,235			$	27,879			$	36,912
Preferred Dividends			6,607				4,749				19,469				13,650				18,774
Total Fixed Charges		$	15,582			$	14,024			$	46,704			$	41,529			$	55,686
Interest Coverage			3.9 x				3.7 x				3.9 x				3.7 x				3.7 x
Fixed Charge Coverage			2.3 x				2.4 x				2.3 x				2.5 x				2.5 x
Net Debt		$	872,238			$	846,651			$	872,238			$	846,651			$	819,749
Net Debt Less Securities			753,361				675,611				753,361				675,611				634,499
Total Preferred Stock			433,850				312,660				433,850				312,660				347,678
Annualized Adjusted EBITDA			141,520				136,368				141,519				137,095				137,385
Net Debt / Adjusted EBITDA			6.2 x				6.2 x				6.2 x				6.2 x				6.0 x
Net Debt Less Securities / Adjusted EBITDA			5.3 x				5.0 x				5.3 x				4.9 x				4.6 x
Net Debt + Preferred Stock / Adjusted EBITDA			9.2 x				8.5 x				9.2 x				8.5 x				8.5 x
Net Debt Less Securities + Preferred Stock / Adjusted EBITDA			8.4 x				7.2 x				8.4 x				7.2 x				7.1 x

 

 

Debt Maturity

(unaudited) (In thousands)

 

 

										Loans									% of
Fiscal Year Ended						Mortgages				Payable					Total				Total
2020						$	14,688			$	5,000		(B)		$	19,688				2.2	%
2021							60,263				-0-					60,263				6.8	%
2022							82,613				-0-					82,613				9.3	%
2023							61,541				-0-					61,541				6.9	%
2024							74,807				-0-					74,807				8.4	%
Thereafter							518,397				75,000		(C)			593,397				66.4	%
Total as of 6/30/2020			(A)			$	812,309			$	80,000				$	892,309				100.0	%
Weighted Average Interest Rate							4.00	%			2.78	%				3.89	%
Weighted Average Term							11.2 yrs.				4.3 yrs.					10.6 yrs.

 

	(A)	Mortgages does not include unamortized debt issuance costs of $8.0 million.
	(B)	Represents margin debt which is due upon demand. Subsequent to the quarter end, we paid off this margin debt.
	(C)	Represents a Term Loan maturing January 2025.

 

 

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.							45				9,101,593				9,101,593				38.9	%		$	74,007,000				50.2	%		$	8.13			$	1,055,494,582				$	457,097,001
FedEx Corporation							16				1,164,830				1,164,830				5.0	%			7,492,000				5.1	%			6.43				108,854,670					20,771,501
FedEx Forward Depots, Inc.							1				449,900				449,900				1.9	%			1,394,000				0.9	%			3.10				16,092,852					3,532,289
Total FedEx							62				10,716,323				10,716,323				45.8	%			82,893,000				56.2	%			7.74				1,180,442,104					481,400,791
Amazon.com Services, Inc. (Amazon.com, Inc.)							4				1,370,465				1,370,465				5.9	%			9,709,000				6.6	%			7.08				151,597,032					85,937,017
Milwaukee Electric Tool Corporation							1				861,889				861,889				3.7	%			3,076,000				2.1	%			3.57				36,914,917					18,517,035
Shaw Industries, Inc.							1				831,764				831,764				3.6	%			3,529,000				2.4	%			4.24				56,025,945					28,825,747
ULTA, Inc.							1				671,354				671,354				2.9	%			2,755,000				1.9	%			4.10				37,540,948					17,710,034
Jim Beam Brands Company (Beam Suntory)							1				599,840				599,840				2.6	%			2,092,000				1.4	%			3.49				28,000,000					14,884,902
International Paper Company							2				578,472				578,472				2.5	%			2,639,000				1.8	%			4.56				37,024,608					18,234,310
TreeHouse Private Brands, Inc.							1				558,600				558,600				2.4	%			2,246,000				1.5	%			4.02				26,807,852					13,991,566
Autoneum North America, Inc.							1				413,605				413,605				1.8	%			2,221,000				1.5	%			5.37				21,040,396					13,069,495
B. Braun Medical Inc.							1				399,440				399,440				1.7	%			2,159,000				1.5	%			5.41				30,263,247					17,474,438
UGN, Inc.							1				387,000				387,000				1.7	%			2,088,000				1.4	%			5.40				21,576,756					12,830,691
CBOCS Distribution, Inc. (Cracker Barrel)							1				381,240				381,240				1.6	%			1,475,000				1.0	%			3.87				14,215,126					-0-
Best Buy Warehousing Logistics, Inc.							1				368,060				368,060				1.6	%			1,709,000				1.2	%			4.64				19,600,000					8,191,801
Toyota Tsusho America, Inc.							1				350,000				350,000				1.5	%			1,710,000				1.2	%			4.89				25,078,587					16,312,321
Coca-Cola							2				323,358				323,358				1.4	%			1,725,000				1.2	%			5.33				20,504,069					2,595,283
Science Applications International Corporation							1				302,400				302,400				1.3	%			1,683,000				1.1	%			5.57				14,463,148					-0-
Bunzl USA Holdings, Inc.							2				268,778				268,778				1.1	%			1,500,000				1.0	%			5.58				18,731,674					11,121,385
Woodstream Corporation			(A)				1				256,000				256,000				1.1	%			932,000				0.6	%			3.64				8,958,278					-0-
Anda Pharmaceuticals, Inc.							1				234,660				234,660				1.0	%			1,215,000				0.8	%			5.18				14,550,000					6,428,839
United Technologies Corporation							2				223,150				223,150				1.0	%			1,507,000				1.0	%			6.75				23,594,917					4,961,570
Mickey Thompson Performance Tires and Wheels (Cooper Tire)							1				219,765				219,765				0.9	%			1,523,000				1.0	%			6.93				18,934,065					10,980,563
Rinnai America Corporation							1				218,120				218,120				0.9	%			851,000				0.6	%			3.90				15,082,217					-0-
Anheuser-Busch, Inc.							1				184,800				184,800				0.8	%			843,000				0.6	%			4.56				12,697,848					-0-
Carlisle Tire & Wheel Company							1				179,280				179,280				0.8	%			765,000				0.5	%			4.27				7,282,986					-0-
NF&M International, Inc.			(B)				1				174,802				174,802				0.7	%			841,000				0.6	%			4.81				5,414,850					-0-
Home Depot USA, Inc.							1				171,200				171,200				0.7	%			1,064,000				0.7	%			6.21				11,303,317					-0-
Magna Seating of America, Inc.							1				153,000				153,000				0.7	%			1,197,000				0.8	%			7.82				17,557,830					9,277,101
Victory Packaging, L.P.							1				148,000				148,000				0.6	%			514,000				0.3	%			3.47				5,455,379					-0-
Challenger Lifts, Inc. (Snap-On Inc.)							1				137,500				137,500				0.6	%			852,000				0.6	%			6.20				11,304,000					5,808,421
Altec Industries, Inc.			(A)				1				126,880				126,880				0.5	%			376,000				0.3	%			2.96				4,439,947					-0-
General Electric Company							1				125,860				125,860				0.5	%			1,334,000				0.9	%			10.60				19,964,283					9,793,926
Keurig Dr Pepper							2				110,080				110,080				0.5	%			753,000				0.5	%			6.84				10,498,031					1,448,041
Style Crest, Inc.							1				106,507				106,507				0.5	%			398,000				0.3	%			3.74				7,263,673					-0-
Sonwil Distribution Center, Inc.							1				104,981				104,981				0.4	%			630,000				0.4	%			6.00				10,960,823					-0-
Pittsburgh Glass Works, LLC							1				102,135				102,135				0.4	%			450,000				0.3	%			4.41				4,249,615					-0-
Dakota Bodies, LLC							1				96,687				96,687				0.4	%			378,000				0.3	%			3.91				7,797,827					-0-
National Oilwell Varco, Inc.							1				91,295				91,295				0.4	%			796,000				0.5	%			8.72				8,163,278					1,240,892
Joseph T. Ryerson and Son, Inc.							1				89,052				89,052				0.4	%			514,000				0.3	%			5.77				7,164,514					-0-
CHEP USA, Inc.							1				83,000				83,000				0.3	%			506,000				0.4	%			6.10				7,463,672					-0-
Sherwin-Williams Company							2				78,887				78,887				0.3	%			648,000				0.4	%			8.21				7,258,078					-0-
RGH Enterprises, Inc. (Cardinal Health)							1				75,000				75,000				0.2	%			619,000				0.5	%			8.25				5,525,600					-0-
Tampa Bay Grand Prix							1				68,385				68,385				0.3	%			361,000				0.2	%			5.28				5,677,982					-0-
Various Tenants at Retail Shopping Center							1				64,220				61,190				0.3	%			757,000				0.5	%			12.37				3,139,564					-0-
SOFIVE, Inc.							1				60,400				60,400				0.3	%			633,000				0.4	%			10.48				5,296,752					1,273,228
Locke Supply Co.							1				60,000				60,000				0.3	%			325,000				0.2	%			5.42				4,914,955					-0-
Siemens Real Estate							1				51,130				51,130				0.2	%			459,000				0.3	%			8.98				4,554,685					-0-
Foundation Building Materials, LLC							1				36,270				36,270				0.2	%			178,000				0.1	%			4.91				2,543,770					-0-
Graybar Electric Company							1				26,340				26,340				0.1	%			121,000				0.1	%			4.59				2,312,027					-0-
Vacant			(B)				2				135,668				-0-				0.0	%			-0-				0.0	%			-0-				6,011,427					-0-
Total as of 6/30/20							118				23,375,642				23,236,944				99.4	%		$	147,549,000				100.0	%		$	6.35			$	2,027,162,599			(C)	$	812,309,397

 

	(A)	Woodstream Corporation and Altec Industries, Inc. are located at one property and, therefore, are counted as one property in the Property Count Total.
	(B)	NF&M International is located in a 255,658 square foot industrial park in Monaca (Pittsburgh), PA, of which 80,856 square feet are vacant. This industrial park is counted as one property in the Property Count Total. Other than two properties indicated in footnotes (A) and (B) and one retail property, all properties are single-tenant.
	(C)	Does not include unamortized debt issuance costs of $7,966,986.

 

 

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		13			2,211,583				2,211,583				9.5	%		$	15,817,000				10.7	%		$	7.15			$	227,587,902			$	85,677,333
Indiana		4			1,964,923				1,964,923				8.4	%			11,132,000				7.5	%			5.67				167,487,527				94,067,086
Ohio		10			1,858,506				1,858,506				8.0	%			11,218,000				7.6	%			6.04				137,189,167				51,686,656
Texas		10			1,781,967				1,781,967				7.6	%			13,788,000				9.3	%			7.74				183,107,137				67,681,983
Georgia		6			1,639,696				1,639,696				7.0	%			10,551,000				7.1	%			6.43				166,213,681				81,421,927
South Carolina		6			1,371,721				1,371,721				5.9	%			10,309,000				7.0	%			7.52				129,964,844				52,671,211
Kentucky		3			1,295,940				1,295,940				5.5	%			5,190,000				3.5	%			4.00				66,111,852				34,684,889
North Carolina		5			1,225,987				1,225,987				5.2	%			8,688,000				5.9	%			7.09				132,526,762				68,482,923
Mississippi		4			1,158,889				1,158,889				5.0	%			4,532,000				3.1	%			3.91				55,677,635				24,945,874
Illinois		9			958,045				958,045				4.1	%			6,222,000				4.2	%			6.49				83,168,709				7,483,017
Tennessee		3			891,777				891,777				3.8	%			3,188,000				2.2	%			3.57				35,677,250				3,532,289
Michigan		4			833,054				833,054				3.6	%			5,577,000				3.8	%			6.69				73,424,162				22,654,378
Kansas		4			813,043				813,043				3.5	%			4,678,000				3.2	%			5.75				61,025,122				26,020,683
Missouri		4			740,119				740,119				3.2	%			2,900,000				2.0	%			3.92				35,448,902				6,319,464
Oklahoma		4			614,941				614,941				2.6	%			3,975,000				2.7	%			6.46				54,961,021				26,311,965
New York		3			518,565				518,565				2.2	%			3,572,000				2.4	%			6.89				51,618,400				19,101,252
Pennsylvania		3			504,040				423,184				2.2	%			2,826,000				1.9	%			6.68				36,906,779				12,326,903
New Jersey		3			471,765				468,735				2.0	%			6,696,000				4.6	%			14.29				92,423,938				51,939,063
Alabama		2			451,595				451,595				1.9	%			2,650,000				1.8	%			5.87				39,714,135				17,001,043
Virginia		5			407,265				407,265				1.7	%			2,456,000				1.7	%			6.03				34,868,096				3,524,522
Colorado		2			295,227				295,227				1.3	%			2,441,000				1.6	%			8.27				35,694,134				14,840,275
Arizona		1			283,358				283,358				1.2	%			1,393,000				0.9	%			4.92				16,824,226				2,231,508
Wisconsin		2			238,666				238,666				1.0	%			1,295,000				0.9	%			5.43				16,377,221				2,055,817
Washington		1			210,445				210,445				0.9	%			1,962,000				1.3	%			9.32				30,320,686				15,766,363
Louisiana		1			175,315				175,315				0.7	%			1,270,000				0.9	%			7.24				18,425,875				9,873,503
Maryland		1			148,881				148,881				0.6	%			1,455,000				1.0	%			9.77				14,512,355				-0-
Nebraska		1			89,115				89,115				0.4	%			446,000				0.3	%			5.00				5,963,626				-0-
Utah		1			69,734				69,734				0.3	%			772,000				0.5	%			11.07				12,666,994				8,360,000
Minnesota		1			60,398				60,398				0.3	%			372,000				0.3	%			6.16				5,223,944				1,647,470
Connecticut		1			54,812				-0-				0.2	%			-0-				0.0	%			-0-				3,506,747				-0-
Iowa		1			36,270				36,270				0.2	%			178,000				0.1	%			4.91				2,543,770				-0-
Total as of 6/30/20		118			23,375,642				23,236,944				100.0	%		$	147,549,000				100.0	%		$	6.35			$	2,027,162,599		(A)	$	812,309,397

 

(A)

Does not include unamortized debt issuance costs of $7,966,986.

 

 

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
2020		(B)			1				98,045				0.4	%		$	490,000				0.3	%		$	5.00				-0-			$	-0-			$	-0-
2021		(A)			10				1,206,723				5.2	%			5,560,000				3.8	%			4.61				0.9				69,813,124				6,683,239
2022					7				1,152,006				4.9	%			6,372,000				4.3	%			5.53				1.7				78,920,819				19,765,577
2023		(A)			14				1,840,004				7.9	%			10,612,000				7.2	%			5.77				2.9				128,622,634				17,588,596
2024					13				1,887,034				8.1	%			11,722,000				7.9	%			6.21				3.9				137,488,989				22,935,645
2025		(A)			10				2,459,470				10.5	%			12,462,000				8.4	%			5.07				4.9				164,532,551				64,398,049
2026					8				1,078,913				4.6	%			8,331,000				5.6	%			7.72				5.9				113,206,322				30,442,622
2027					12				2,373,001				10.2	%			13,049,000				8.8	%			5.50				7.1				185,819,770				64,355,260
2028					11				2,571,915				11.0	%			13,970,000				9.5	%			5.43				7.8				182,728,436				62,263,260
2029					9				1,830,929				7.8	%			10,548,000				7.1	%			5.76				8.8				147,759,792				61,791,530
2030					5				1,026,032				4.4	%			8,177,000				5.5	%			7.97				9.8				119,544,872				58,729,758
2031					3				963,269				4.1	%			7,152,000				4.8	%			7.42				10.8				104,691,839				58,095,208
2032		(B)			8				2,131,983				9.1	%			18,803,000				12.7	%			8.82				11.8				290,952,566				164,859,510
2033					2				639,068				2.7	%			6,486,000				4.4	%			10.15				12.8				106,803,506				63,564,427
2034					3				1,561,347				6.7	%			9,284,000				6.6	%			5.95				13.8				127,748,517				78,176,716
2035					2				356,015				1.5	%			3,774,000				2.6	%			10.60				14.8				59,377,871				38,660,000
Various tenants at retail shopping center					1				64,220				0.3	%			757,000				0.5	%			12.37				-0-				3,139,564				-0-
Vacant		(A)			2				135,668				0.6	%			-0-				0.0	%			-0-				-0-				6,011,427				-0-
Total as of 6/30/20					118				23,375,642				100.0	%		$	147,549,000				100.0	%		$	6.35				7.2			$	2,027,162,599		(C)	$	812,309,397

 

	(A)	Included in 2021 is Woodstream Corporation and included in 2023 is Altec Industries, which both occupy one property. Included in 2025 is NF&M International, which occupies 174,802 square feet of a 255,658 square foot Industrial Park. The remaining 80,856 square feet are included in Vacant. Each of these properties are counted as one property in the Property Count Total. Other than these properties and one retail property, all properties are single-tenant.
	(B)	Included in 2020 and 2032 is a property located in Aiken (Augusta, GA), SC leased to Autoneum North America, Inc. This property contains two leasable structures with two different lease terms. Both are counted as one property in the property count total.
	(C)	Does not include unamortized debt issuance costs of $7,966,986.

 

 

Recent Acquisitions During Fiscal 2020

(unaudited)

 

								Date of		Square				Annual				Rent Per				Lease		Purchase				Initial Mortgage
No		Tenant		City (MSA)		State		Acquisition		Footage				Rent				sf Occup.				Expiration		Price				Balance
1		Amazon.com Services, Inc.		Greenwood (Indianapolis)		IN		10/10/19			615,747			$	4,950,000			$	8.04			8/31/34		$	81,500,000			$	52,500,000
2		Magna Seating of America, Inc.		Lancaster (Columbus)		OH		3/30/20			153,000				1,197,000				7.82			1/31/30			17,874,000				9,400,000
3		FedEx Ground Package System, Inc.		Greensboro		NC		5/21/20			286,281				3,002,000				10.49			4/30/35			47,645,000				30,300,000
4		FedEx Corporation		Ogden (Salt Lake City)		UT		5/21/20			69,734				772,000				11.07			3/31/35			12,864,000				8,360,000
		As of 6/30/20									1,124,762			$	9,921,000			$	8.82					$	159,883,000			$	100,560,000

 

 

Property Table

(unaudited)

 

																										Rent				Lease Exp.
										Fiscal Year								Square				Annual				Per sf				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			$	3,076,000			$	3.57				8.1			$	36,914,917			$	18,517,035
2		Shaw Industries, Inc.				Savannah		GA			2018				100.0	%			831,764				3,529,000				4.24				7.3				56,025,945				28,825,747
3		ULTA, Inc.				Greenwood (Indianapolis)		IN			2015				100.0	%			671,354				2,755,000				4.10				5.1				37,540,948				17,710,034
4		Amazon.com Services, Inc. (Amazon.com, Inc.)				Greenwood (Indianapolis)		IN			2020				100.0	%			615,747				4,950,000				8.04				14.2				79,363,909				51,354,459
5		Jim Beam Brands Company (Beam Suntory)				Frankfort (Lexington)		KY			2015				100.0	%			599,840				2,092,000				3.49				4.6				28,000,000				14,884,902
6		TreeHouse Private Brands, Inc.				Buckner (Louisville)		KY			2014				100.0	%			558,600				2,246,000				4.02				13.3				26,807,852				13,991,566
7		FedEx Forward Depots, Inc.				Memphis		TN			2010				100.0	%			449,900				1,394,000				3.10				8.9				16,092,852				3,532,289
8		Autoneum North America, Inc.		(B)		Aiken (Augusta, GA)		SC			2017				100.0	%			315,560				1,731,000				5.49				11.8				21,040,396				13,069,495
		Autoneum North America, Inc.				Aiken (Augusta, GA)		SC			2017				100.0	%			98,045				490,000				5.00				-0-				-0-				-0-
9		B. Braun Medical Inc.				Daytona Beach		FL			2018				100.0	%			399,440				2,159,000				5.41				7.8				30,263,247				17,474,438
10		UGN, Inc.				Monroe (Cincinnati)		OH			2015				100.0	%			387,000				2,088,000				5.40				13.7				21,576,756				12,830,691
11		Woodstream Corporation				St. Joseph		MO			2001				100.0	%			256,000				932,000				3.64				1.3				8,958,278				-0-
		Altec Industries, Inc.				St. Joseph		MO			2001				100.0	%			126,880				376,000				2.96				2.7				4,439,947				-0-
12		CBOCS Distribution, Inc. (Cracker Barrel)				Lebanon (Nashville)		TN			2011				100.0	%			381,240				1,475,000				3.87				4.0				14,215,126				-0-
13		FedEx Ground Package System, Inc.				Braselton (Atlanta)		GA			2018				100.0	%			373,750				3,782,000				10.12				12.7				60,227,126				36,374,212
14		Best Buy Warehousing Logistics, Inc.				Streetsboro (Cleveland)		OH			2012				100.0	%			368,060				1,709,000				4.64				1.6				19,600,000				8,191,801
15		Amazon.com Services, Inc. (Amazon.com, Inc.)				Mobile		AL			2018				100.0	%			362,942				2,045,000				5.63				8.4				33,052,316				17,001,043
16		FedEx Ground Package System, Inc.				Concord (Charlotte)		NC			2017				100.0	%			354,482				2,537,000				7.16				11.9				40,043,145				22,428,160
17		FedEx Ground Package System, Inc.				Mesquite (Dallas)		TX			2017				100.0	%			351,874				3,203,000				9.10				11.8				49,880,493				27,811,093
18		Toyota Tsusho America, Inc.				Lafayette		IN			2019				100.0	%			350,000				1,710,000				4.89				9.0				25,078,587				16,312,321
19		FedEx Ground Package System, Inc.				Trenton		NJ			2019				100.0	%			347,145				5,306,000				15.28				12.0				83,987,622				50,665,835
20		FedEx Ground Package System, Inc.				Walker (Grand Rapids)		MI			2017				100.0	%			343,483				2,105,000				6.13				11.6				31,654,987				17,509,441
21		FedEx Ground Package System, Inc.				Hamburg (Buffalo)		NY			2017				100.0	%			338,584				2,323,000				6.86				10.8				35,131,977				19,101,252
22		FedEx Ground Package System, Inc.				Concord (Charlotte)		NC			2016				100.0	%			330,717				2,237,000				6.76				5.1				33,053,688				15,754,763
23		FedEx Ground Package System, Inc.				Indianapolis		IN			2014				100.0	%			327,822				1,717,000				5.24				7.3				25,504,083				8,690,272
24		FedEx Ground Package System, Inc.				Olathe (Kansas City)		KS			2016				100.0	%			313,763				2,210,000				7.04				10.9				31,768,185				17,829,098
25		FedEx Ground Package System, Inc.				Davenport (Orlando)		FL			2016				100.0	%			310,922				2,619,000				8.42				10.8				37,791,677				21,164,858
26		FedEx Ground Package System, Inc.				Ft. Worth (Dallas)		TX			2015				100.0	%			304,608				2,387,000				7.84				9.8				35,444,074				18,249,956
27		Science Applications International Corporation				Hanahan (Charleston)		SC			2005				100.0	%			302,400				1,683,000				5.57				3.3				14,463,148				-0-
28		Amazon.com Services, Inc. (Amazon.com, Inc.)				Oklahoma City		OK			2018				100.0	%			300,000				1,925,000				6.42				7.3				29,878,942				17,581,515
29		International Paper Company				Kenton		OH			2017				100.0	%			298,472				1,268,000				4.25				7.2				18,730,500				10,406,500
30		FedEx Ground Package System, Inc.				Jacksonville		FL			2015				100.0	%			297,579				1,998,000				6.71				9.5				30,925,530				14,163,110
31		FedEx Ground Package System, Inc.				Greensboro		NC			2020				100.0	%			286,281				3,002,000				10.49				14.8				46,710,877				30,300,000
32		Western Container Corp. (Coca-Cola)				Tolleson (Phoenix)		AZ			2003				100.0	%			283,358				1,393,000				4.92				6.8				16,824,226				2,231,508
33		International Paper Company				Edwardsville (Kansas City)		KS			2014				100.0	%			280,000				1,371,000				4.90				3.2				18,294,108				7,827,810
34		FedEx Ground Package System, Inc.				Charleston		SC			2018				100.0	%			265,318				2,704,000				10.19				13.0				46,576,380				27,190,215
35		NF&M International, Inc.				Monaca (Pittsburgh)		PA			1988				68.4	%			255,658				841,000				4.81				4.5				7,919,530				-0-
36		FedEx Ground Package System, Inc.				Orion		MI			2007				100.0	%			245,633				1,908,000				7.77				3.0				22,940,227				-0-
37		FedEx Ground Package System, Inc.				Homestead (Miami)		FL			2017				100.0	%			237,756				2,282,000				9.60				11.8				37,911,556				20,963,985
38		Anda Pharmaceuticals, Inc.				Olive Branch (Memphis, TN)		MS			2012				100.0	%			234,660				1,215,000				5.18				2.1				14,550,000				6,428,839
39		FedEx Ground Package System, Inc.				Colorado Springs		CO			2016				100.0	%			225,362				1,832,000				8.13				5.6				29,320,066				14,840,275
40		Mickey Thompson Performance Tires and Wheels (Cooper Tire)				Stow		OH			2017				100.0	%			219,765				1,523,000				6.93				7.2				18,934,065				10,980,563
41		Rinnai America Corporation				Griffin (Atlanta)		GA			2006				100.0	%			218,120				851,000				3.90				0.5				15,082,217				-0-
42		FedEx Ground Package System, Inc.				Ft. Myers		FL			2017				100.0	%			213,672				1,418,000				6.64				7.2				21,684,310				11,910,942
43		FedEx Ground Package System, Inc.				Burlington (Seattle/Everett)		WA			2016				100.0	%			210,445				1,962,000				9.32				10.2				30,320,686				15,766,363
44		FedEx Ground Package System, Inc.				Sauget (St. Louis, MO)		IL			2015				100.0	%			198,773				1,036,000				5.21				8.9				15,204,950				7,483,017
45		Anheuser-Busch, Inc.				Granite City (St. Louis, MO)		IL			2001				100.0	%			184,800				843,000				4.56				1.4				12,697,848				-0-
46		Carrier Enterprise, LLC (United Technologies)				Carrollton (Dallas)		TX			2010				100.0	%			184,317				1,140,000				6.18				3.6				18,494,917				4,961,570
47		FedEx Ground Package System, Inc.				Spring (Houston)		TX			2014				100.0	%			181,176				1,581,000				8.73				4.3				19,328,922				6,791,231
48		Carlisle Tire & Wheel Company				Edwardsville (Kansas City)		KS			2003				100.0	%			179,280				765,000				4.27				3.1				7,282,986				-0-
49		FedEx Ground Package System, Inc.				Ft. Mill (Charlotte, NC)		SC			2010				100.0	%			176,939				1,598,000				9.03				8.2				17,063,643				-0-
50		FedEx Ground Package System, Inc.				Covington (New Orleans)		LA			2016				100.0	%			175,315				1,270,000				7.24				5.0				18,425,875				9,873,503
51		FedEx Ground Package System, Inc.				Livonia (Detroit)		MI			2013				100.0	%			172,005				1,194,000				6.94				1.8				13,879,697				5,144,937
52		Home Depot USA, Inc.				Montgomery (Chicago)		IL			2004				100.0	%			171,200				1,064,000				6.21				2.5				11,303,317				-0-
53		FedEx Ground Package System, Inc.				Tampa		FL			2004				100.0	%			170,779				1,624,000				9.51				6.1				19,745,245				-0-
54		FedEx Ground Package System, Inc.				Edinburg		TX			2011				100.0	%			164,207				1,097,000				6.68				6.3				12,039,014				-0-
55		FedEx Ground Package System, Inc.				Lindale (Tyler)		TX			2015				100.0	%			163,378				725,000				4.44				4.0				9,965,550				4,932,882
56		Bunzl Distribution Midcentral, Inc.				Kansas City		MO			2015				100.0	%			158,417				764,000				4.82				1.3				10,003,235				6,319,464
57		FedEx Ground Package System, Inc.				Oklahoma City		OK			2012				100.0	%			158,340				1,048,000				6.62				5.1				12,605,609				2,480,488
58		Magna Seating of America, Inc.				Columbus		OH			2020				100.0	%			153,000				1,197,000				7.82				9.6				17,557,830				9,277,101
59		FedEx Ground Package System, Inc.				Waco		TX			2012				100.0	%			150,710				1,078,000				7.15				5.2				12,551,368				3,694,359

 

 

Property Table

(unaudited)

 

																												Rent				Lease Exp.
												Fiscal Year								Square				Annual				Per sf				Term in				Undepreciated				Mortgage
No				Tenant		City (MSA)		State				Acquisition				Occup.				Footage				Rent				Occup.				Years				Cost				Balance
	60			FedEx Ground Package System, Inc.		Beltsville (Washington, DC)			MD				1997				100.0	%			148,881			$	1,455,000			$	9.77				8.1			$	14,512,355			$	-0-
	61			Victory Packaging, L.P.		Fayetteville			NC				2006				100.0	%			148,000				514,000				3.47				0.7				5,455,379				-0-
	62			FedEx Ground Package System, Inc.		El Paso			TX				2008				100.0	%			144,149				1,345,000				9.33				3.3				12,431,192				-0-
	63			FedEx Ground Package System, Inc.		Cocoa			FL				2001				100.0	%			144,138				1,112,000				7.71				4.3				14,127,449				-0-
	64			FedEx Ground Package System, Inc.		Cudahy (Milwaukee)			WI				2016				100.0	%			139,564				827,000				5.93				7.0				9,807,221				-0-
	65			Challenger Lifts, Inc. (Snap-On Inc.)		Louisville			KY				2006				100.0	%			137,500				852,000				6.20				5.9				11,304,000				5,808,421
	66			FedEx Ground Package System, Inc.		Richfield (Cleveland)			OH				2019				100.0	%			131,152				1,493,000				11.38				4.3				16,447,178				-0-
	67			FedEx Ground Package System, Inc.		Savannah			GA				2016				100.0	%			126,520				1,755,000				13.87				8.3				27,531,560				16,221,968
	68			General Electric Company		Imperial (Pittsburgh)			PA				2003				100.0	%			125,860				1,334,000				10.60				5.5				19,964,283				9,793,926
	69			FedEx Ground Package System, Inc.		Wheeling (Chicago)			IL				2014				100.0	%			123,000				1,272,000				10.34				6.9				18,992,949				-0-
	70			FedEx Ground Package System, Inc.		Altoona			PA				2018				100.0	%			122,522				651,000				5.31				3.2				9,022,966				2,532,977
	71			FedEx Corporation		Charleston			SC				2001				100.0	%			121,683				1,314,000				10.80				12.2				21,519,412				12,411,501
	72			FedEx Corporation		Mechanicsville (Richmond)			VA				2008				100.0	%			112,799				541,000				4.80				2.8				7,827,460				-0-
	73			FedEx Corporation		Orlando			FL				2017				100.0	%			110,638				666,000				6.02				7.4				8,810,059				-0-
	74			Bunzl Distribution Oklahoma, Inc.		Oklahoma City			OK				2002				100.0	%			110,361				736,000				6.67				4.2				8,728,439				4,801,921
	75			Style Crest, Inc.		Winston-Salem			NC				2000				100.0	%			106,507				398,000				3.74				0.8				7,263,673				-0-
	76			SONWIL DISTRIBUTION CENTER, INC.		Cheektowaga (Buffalo)			NY				1999				100.0	%			104,981				630,000				6.00				1.6				10,960,823				-0-
	77			FedEx Ground Package System, Inc.		West Chester Twp. (Cincinnati)			OH				2013				100.0	%			103,818				556,000				5.36				3.2				5,733,686				-0-
	78			FedEx Ground Package System, Inc.		Roanoke			VA				1994				100.0	%			103,402				755,000				7.30				2.8				10,200,000				3,524,522
	79			Pittsburgh Glass Works, LLC		O’ Fallon (St. Louis)			MO				2013				100.0	%			102,135				450,000				4.41				1.0				4,249,615				-0-
	80			FedEx Ground Package System, Inc.		Green Bay			WI				1998				100.0	%			99,102				468,000				4.72				2.9				6,570,000				2,055,817
	81			Dakota Bodies, LLC		Liberty (Kansas City)			MO				1999				100.0	%			96,687				378,000				3.91				5.8				7,797,827				-0-
	82			FedEx Corporation		Jacksonville			FL				2006				100.0	%			95,883				536,000				5.59				8.9				6,584,384				-0-
	83			FedEx Corporation		Tampa			FL				2005				100.0	%			95,662				603,000				6.30				7.4				7,889,727				-0-
	84			Amazon.com Services, Inc.		Hanahan (Charleston)			SC				2010				100.0	%			91,776				789,000				8.60				9.0				9,301,865				-0-
	85			National Oilwell Varco, Inc.		Houston			TX				1999				100.0	%			91,295				796,000				8.72				9.3				8,163,278				1,240,892
	86			FedEx Corporation		Omaha			NE				2002				100.0	%			89,115				446,000				5.00				3.3				5,963,626				-0-
	87			Joseph T. Ryerson and Son, Inc.		Elgin (Chicago)			IL				2005				100.0	%			89,052				514,000				5.77				4.6				7,164,514				-0-
	88			FedEx Ground Package System, Inc.		Huntsville			AL				2007				100.0	%			88,653				605,000				6.82				6.1				6,661,819				-0-
	89			CHEP USA, Inc.		Roanoke			VA				2007				100.0	%			83,000				506,000				6.10				4.7				7,463,672				-0-
	90			FedEx Corporation		Bedford Heights (Cleveland)			OH				2012				100.0	%			82,269				438,000				5.32				8.2				7,304,467				-0-
	91			RGH Enterprises, Inc. (Cardinal Health)		Halfmoon (Albany)			NY				1997				100.0	%			75,000				619,000				8.25				1.4				5,525,600				-0-
	92			FedEx Corporation		Schaumburg (Chicago)			IL				1998				100.0	%			73,500				478,000				6.50				6.8				5,447,053				-0-
	93			FedEx Corporation		Romulus (Detroit)			MI				2005				100.0	%			71,933				370,000				5.14				0.9				4,949,251				-0-
	94			FedEx Ground Package System, Inc.		Denver			CO				2005				100.0	%			69,865				609,000				8.72				5.3				6,374,068				-0-
	95			FedEx Corporation		Ogden			UT				2011				100.0	%			69,734				772,000				11.07				14.8				12,666,994				8,360,000
	96			Tampa Bay Grand Prix		Tampa			FL				1970				100.0	%			68,385				361,000				5.28				7.3				5,677,982				-0-
	97			Sherwin-Williams Company		Rockford			IL				2015				100.0	%			66,387				486,000				7.32				3.5				5,551,227				-0-
	98			Various Tenants at Retail Shopping Center		Somerset			NJ				2007				95.0	%			64,220				757,000				12.37				na				3,139,564				-0-
	99			Keurig Dr Pepper		Cincinnati			OH				2001				100.0	%			63,840				487,000				7.63				9.3				6,750,000				-0-
	100			FedEx Corporation		Chattanooga			TN				2013				100.0	%			60,637				319,000				5.26				2.3				5,369,272				-0-
	101			SOFIVE, Inc.		Carlstadt (New York, NY)			NJ				2004				100.0	%			60,400				633,000				10.48				9.6				5,296,752				1,273,228
	102			FedEx Ground Package System, Inc.		Stewartville (Rochester)			MN				2005				100.0	%			60,398				372,000				6.16				2.9				5,223,944				1,647,470
	103			Locke Supply Co.		Richmond			VA				2001				100.0	%			60,000				325,000				5.42				11.8				4,914,955				-0-
	104			FedEx Ground Package System, Inc.		Augusta			GA				2012				100.0	%			59,358				513,000				8.64				1.0				5,363,304				-0-
	105			Vacant		Newington (Hartford)			CT				1999				0.0	%			54,812				-0-				na				na				3,506,747				-0-
	106			Siemens Real Estate		Lebanon (Cincinnati)			OH				2012				100.0	%			51,130				459,000				8.98				3.8				4,554,685				-0-
	107			FedEx Corporation		Charlottesville			VA				2014				100.0	%			48,064				329,000				6.85				7.2				4,462,009				-0-
	108			FedEx Ground Package System, Inc.		Corpus Christi			TX				2009				100.0	%			46,253				436,000				9.43				1.2				4,808,329				-0-
	109			Keurig Dr Pepper		Tulsa			OK				2015				100.0	%			46,240				266,000				5.75				3.7				3,748,031				1,448,041
	110			Heartland Coca-Cola Bottling Company, LLC (Coca-Cola)		Topeka			KS				1994				100.0	%			40,000				332,000				8.30				1.3				3,679,843				363,775
	111			Collins Aerospace Systems (United Technologies)		Rockford			IL				1994				100.0	%			38,833				367,000				9.45				7.0				5,100,000				-0-
	112			Foundation Building Materials, LLC		Urbandale (Des Moines)			IA				2007				100.0	%			36,270				178,000				4.91				7.5				2,543,770				-0-
	113			FedEx Corporation		Richland (Jackson)			MS				2006				100.0	%			36,000				120,000				3.33				3.8				1,900,691				-0-
	114			FedEx Corporation		Punta Gorda			FL				2006				100.0	%			34,624				284,000				8.20				7.0				4,133,510				-0-
	115			FedEx Corporation		Lakeland			FL				1993				100.0	%			32,105				155,000				4.83				7.4				2,043,226				-0-

 

 

Property Table

(unaudited)

 

																										Rent				Lease Exp.
										Fiscal Year								Square				Annual				Per sf				Term in				Undepreciated				Mortgage
No				Tenant		City (MSA)		State		Acquisition				Occup.				Footage				Rent				Occup.				Years				Cost				Balance
	116			FedEx Corporation		Augusta		GA			2006				100.0	%			30,184			$	121,000			$	4.01				2.4			$	1,983,529			$	-0-
	117			Graybar Electric Company		Ridgeland (Jackson)		MS			1993				100.0	%			26,340				121,000				4.59				5.1				2,312,027				-0-
	118			Sherwin-Williams Company		Burr Ridge (Chicago)		IL			1997				100.0	%			12,500				162,000				12.96				1.3				1,706,851				-0-
				Total as of 6/30/20											99.4	%			23,375,642			$	147,549,000			$	6.35				7.2			$	2,027,162,599			$	(A) 812,309,397

 

	(A)	Does not include unamortized debt issuance costs of $7,966,986.
	(B)	Property located in Aiken (Augusta, GA), SC leased to Autoneum North America, Inc. contains two leasable structures with two different lease terms.

 

 

Definitions

 

Investors and analysts following the real estate industry utilize funds from operations (“FFO”), adjusted funds from operations (“AFFO”), net operating income (“NOI”), Same Property NOI, Same Property Cash NOI, and earnings before interest, taxes, depreciation and amortization for real estate & (“Adjusted EBITDA”) variously defined, as supplemental performance measures. While we believe 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, we consider NOI, Same Property NOI, Same Property Cash NOI, Adjusted EBITDA, 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. NOI provides a measure of rental operations, and does not factor in depreciation and amortization and non-property specific expenses such as interest expense and general and administrative expenses. Adjusted 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 supplemental tool to evaluate our performance. In addition, NOI, Same Property NOI, Same Property Cash NOI, Adjusted EBITDA, 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, we calculate the following non-U.S. GAAP measures as follows:

 

	●	FFO, as defined by The National Association of Real Estate Investment Trusts (Nareit), represents net income attributable to common shareholders, as defined by accounting principles generally accepted in the United States of America (U.S. GAAP), excluding extraordinary items, as defined under 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. Included in the Nareit FFO White Paper - 2018 Restatement, is an option pertaining to assets incidental to our main business in the calculation of Nareit FFO to make an election to include or exclude mark-to-market changes in the value recognized on these marketable equity securities. In conjunction with the adoption of the FFO White Paper - 2018 Restatement, for all periods presented, we have elected to exclude unrealized gains and losses from our investments in marketable equity securities from our FFO calculation. Nareit created FFO as a non-GAAP supplemental measure of REIT operating performance.
	●	AFFO is calculated as FFO, excluding stock-based compensation expense, depreciation of corporate office tenant improvements, amortization of deferred financing costs, non-recurring severance expense, effect of non-cash U.S. GAAP straight-line rent adjustments and less recurring capital expenditures. Recurring capital expenditures are defined as all capital expenditures that are recurring in nature, 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 from property operations is calculated as net income attributable to common shareholders, as defined by U.S. GAAP, plus preferred dividends, general & administrative expenses, non-recurring severance expense, depreciation, amortization of capitalized lease costs & intangible assets and interest expense, including amortization of financing costs, unrealized holding (gains) or losses arising during the periods, less dividend income. The components of NOI consist of recurring rental and reimbursement revenue, less real estate taxes and operating expenses, such as insurance, utilities, and repairs and maintenance.
	●	Same Property NOI is calculated as 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 calculated as the Same Property NOI adjusted to exclude the effect of non-cash U.S. GAAP straight-line rent adjustment for the properties included in the Same Property NOI calculation.
	●	Adjusted EBITDA is net income attributable to common shareholders, as defined by U.S. GAAP, plus preferred dividends, interest expense, including amortization of financing costs, depreciation and amortization, net amortization of acquired above and below market lease revenue and unrealized holding losses (minus gains) arising during the periods.

 

FFO, AFFO, NOI, Same Property NOI, Same Property Cash NOI and Adjusted EBITDA, 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. FFO, AFFO, NOI, Same Property NOI, Same Property Cash NOI and Adjusted EBITDA 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. FFO, AFFO, NOI, Same Property NOI, Same Property Cash NOI and Adjusted EBITDA, as currently calculated by us, may not be comparable to similarly titled, but variously calculated, measures of other REITs.

 

 

FOR IMMEDIATE RELEASE	August 4, 2020
	Contact: Becky Coleridge
	732-577-9996

 

MONMOUTH REAL ESTATE REPORTS RESULTS FOR

THE THIRD QUARTER ENDED JUNE 30, 2020

 

HOLMDEL, NJ, August 4, 2020........ Monmouth Real Estate Investment Corporation (NYSE:MNR) reported Net Income Attributable to Common Shareholders of $26.9 million or $0.27 per diluted share for the three months ended June 30, 2020 as compared to Net Loss Attributable to Common Shareholders of $3.1 million or $0.03 per diluted share for the three months ended June 30, 2019, representing an increase of $30.0 million or $0.30 per diluted share. During the three months ended June 30, 2020, we recognized a $19.6 million unrealized holding gain on securities or $0.20 per diluted share as compared to an $11.6 million unrealized holding loss on securities or $0.12 per diluted share for the three months ended June 30, 2019. Funds from Operations (FFO), which excludes unrealized and realized gains or losses from our securities portfolio, for the three months ended June 30, 2020 were $19.7 million or $0.20 per diluted share versus $19.9 million or $0.21 per diluted share for the three months ended June 30, 2019, representing a decrease of $0.01 in FFO per diluted share. Adjusted Funds from Operations (AFFO), which also excludes unrealized and realized gains or losses from our securities portfolio, for the three months ended June 30, 2020 were $19.5 million or $0.20 per diluted share versus $19.4 million or $0.21 per diluted share for the three months ended June 30, 2019, representing a $0.01 decrease in AFFO per diluted share. Sequentially, our FFO of $0.20 per diluted share for the third quarter of fiscal 2020 is $0.01 lower than our FFO of $0.21 per diluted share for the second quarter of fiscal 2020 and our AFFO of $0.20 per diluted share for the third quarter of fiscal 2020 is consistent with our AFFO of $0.20 per diluted share for the second quarter of fiscal 2020. The year over year $0.01 decline in FFO and AFFO for the quarter is primarily attributable to a $1.9 million increase in Preferred Dividend expense as a result of an increase in preferred shares outstanding, as well as a $1.3 million decrease in dividend income, partially offset by a $2.5 million increase in Net Operating Income (NOI).

 

Portfolio Occupancy and Tenant Rent Collections During The COVID-19 Pandemic

 

Our portfolio occupancy remained nearly full during the quarter at 99.4% which represents a 50 basis point increase over the prior year period and is consistent with the prior quarter. Our rent collections throughout the COVID-19 Pandemic have been as follows:

 

	●	For the month of March were 100.0%
	●	For the month of April were 99.6%
	●	For the month of May were 97.9%
	●	For the month of June were 99.4%
	●	For the month of July were 99.6%
	●	For the month of August, we expect total rent collections to come in at 99.6%

 

While the future effects of the evolving impact of the COVID-19 pandemic are still uncertain, at this time we believe that the fallout will not have a material adverse effect on our financial condition. To date, Monmouth has received very limited requests for rent deferment. We have agreed to defer $438,000 which represents a 31 basis point impact on our annual base rent. Approximately 75% of this deferred amount is due to be paid by the end of the calendar year. Our weighted average lease term at quarter end is 7.2 years as compared to 7.4 years at the end of the prior quarter.

 

A summary of significant financial information for the three and nine months ended June 30, 2020 and 2019 (in thousands, except per share amounts) is as follows:

 

		Three Months Ended June 30,
		2020				2019
Rental Revenue		$	35,427			$	33,127
Reimbursement Revenue		$	6,348			$	5,421
Net Operating Income (NOI) (1)		$	35,208			$	32,731
Total Expenses		$	21,296			$	19,722
Dividend Income		$	2,344			$	3,686
Unrealized Holding Gains (Losses) Arising During the Periods		$	19,610			$	(11,609	)
Net Income		$	33,458			$	1,628
Net Income (Loss) Attributable to Common Shareholders		$	26,851			$	(3,121	)
Net Income (Loss) Attributable to Common Shareholders Per Diluted Common Share		$	0.27			$	(0.03	)
FFO (1)		$	19,740			$	19,899
FFO per Diluted Common Share (1)		$	0.20			$	0.21
AFFO (1)		$	19,488			$	19,388
AFFO per Diluted Common Share (1)		$	0.20			$	0.21
Dividends Declared per Common Share		$	0.17			$	0.17
Weighted Avg. Diluted Common Shares Outstanding			97,962				94,493

 

 

		Nine Months Ended June 30,
		2020				2019
Rental Revenue		$	105,410			$	98,678
Reimbursement Revenue		$	19,772			$	16,473
Net Operating Income (NOI) (1)		$	104,719			$	97,595
Total Expenses		$	65,065			$	58,187
Dividend Income		$	8,987			$	11,569
Unrealized Holding Gains (Losses) Arising During the Periods		$	(67,100	)		$	(38,668	)
Net Income (Loss)		$	(25,231	)		$	1,986
Net Income (Loss) Attributable to Common Shareholders		$	(44,700	)		$	(11,664	)
Net Income (Loss) Attributable to Common Shareholders Per Diluted Common Share		$	(0.46	)		$	(0.13	)
FFO (1)		$	59,259			$	60,917
FFO per Diluted Common Share (1)		$	0.61			$	0.66
AFFO (1)		$	58,771			$	59,583
AFFO per Diluted Common Share (1)		$	0.60			$	0.64
Dividends Declared per Common Share		$	0.51			$	0.51
Weighted Avg. Diluted Common Shares Outstanding			97,626				92,719

 

A summary of significant balance sheet information as of June 30, 2020 and September 30, 2019 (in thousands) is as follows:

 

		June 30, 2020				September 30, 2019
Real Estate Investments		$	1,743,115			$	1,616,934
Securities Available for Sale at Fair Value		$	118,877			$	185,250
Total Assets		$	1,931,425			$	1,871,948
Fixed Rate Mortgage Notes Payable, net of Unamortized Debt Issuance Costs		$	804,342			$	744,928
Loans Payable		$	80,000			$	95,000
6.125% Series C Cumulative Redeemable Preferred Stock		$	433,850			$	347,678
Total Shareholders’ Equity		$	1,023,785			$	1,011,043

 

Highlights from Third Quarter Results

 

	●	Increased Gross Revenue by 4% over the prior year period to $44.1 million
	●	Increased Net Operating Income by 8% over the prior year period to $35.2 million
	●	Maintained a conservative AFFO dividend payout ratio of 85%
	●	Increased our Gross Leasable Area (GLA) by 7%, or 1.6 million square feet over the prior year period to 23.4 million square feet
	●	Entered into commitments to acquire four new build-to-suit properties containing 1.5 million total square feet for a total cost of $218.7 million all leased to Investment Grade tenants for a weighted average lease term of 16.8 years
	●	Acquired two properties comprising 356,000 square feet for $60.5 million, both of which are leased to FedEx for 15 years
	●	Increased our portfolio occupancy by 50 basis points over the prior year period and maintained our 99.4% occupancy rate sequentially
	●	Achieved a weighted average lease term of 7.2 years versus 7.8 years in the prior year period
	●	Increased our annualized average base rent per occupied square foot by 2% to $6.35 from the prior year period
	●	Achieved a weighted average debt maturity on fixed-rate mortgage debt of 11.2 years as compared to 11.5 years in the prior year period
	●	Maintained our Net Debt to Adjusted EBITDA at 6.2x which is in-line with the prior year period
	●	Reduced the weighted average interest rate on our fixed-rate mortgage debt to 4.00% from 4.03% in the prior year period and reduced the weighted average interest rate on our total fixed-rate debt to 3.90% from 4.03% in the prior year period

 

 

	●	Raised $4.5 million in net proceeds through the Preferred Stock ATM Program with the sale of 185,000 shares of our 6.125% Series C Preferred Stock at a weighted average price of $24.93 per share
	●	Raised $1.2 million (including dividend reinvestments of $1.0 million) from the Dividend Reinvestment and Stock Purchase Plan, representing a 6% participation rate

 

Michael P. Landy, President and CEO, commented, “Thus far in fiscal 2020, we have acquired four properties comprising 1.1 million square feet for a total purchase price of $159.9 million. During the recent quarter, we acquired two buildings comprising 356,000 square feet for a purchase price of $60.5 million. These properties, located in Greensboro, NC and Salt Lake City, UT are both leased to FedEx for 15 years. Our acquisition pipeline grew over the quarter to $218.7 million and currently contains four new build-to-suit properties comprising 1.5 million total square feet. These properties have a weighted average lease term of 16.8 years. In keeping with our business model, these projects are all leased to investment grade tenants which include, Amazon, FedEx, and Home Depot. Debt financing for three of these four future acquisitions has already been locked-in at a weighted average interest rate of 3.10%.”

 

“We have renewed four of the five leases that were set to expire this fiscal year. These four lease renewals represent 87% of the 410,000 square feet expiring this year. These lease renewals have a weighted average lease term of 4.2 years, and a weighted average lease rate of $5.87 per square foot on a GAAP basis and $5.71 per square foot on a cash basis. This represents an increase of 12.0% on a GAAP basis and an increase of 4.4% on a cash basis.”

 

“Monmouth went into the global pandemic very well positioned with a strong balance sheet, a high-quality tenant roster, nearly full occupancy, and a well-covered dividend. Our resilient rent collection results during these challenging times highlights the mission-critical nature of our assets and underscores the essential need for our tenants’ operations. Because our weighted average lease maturity is 7.2 years and our weighted average fixed-rate mortgage debt maturity is 11.2 years, we expect our income streams to remain resilient for years to come.”

 

“As a result of the government shutdowns, ecommerce sales as a percentage of total retail sales have accelerated from approximately 15% to 27% during the recent quarter. This has created tremendous demand for many of our properties with operations increasing to seven-day work weeks to accommodate this strong demand. The COVID-19 pandemic has also created a need for supply chain reconfiguration. Increased inventory stocking is currently taking place across the U.S. for several industries and this trend is accelerating to accommodate surges in demand. The COVID-19 pandemic has also increased the desire for additional domestic manufacturing, as supply chains now prefer shorter routes and less reliance on foreign sources. Because our portfolio comprises modern industrial buildings located throughout the continental U.S., we are very well-positioned to benefit from these accelerating trends going forward.”

 

Monmouth Real Estate Investment Corporation will host its Third Quarter FY 2020 Financial Results Webcast and Conference Call on Wednesday, August 5, 2020 at 10:00 a.m. Eastern Time. Senior management will discuss the results, current market conditions and future outlook.

 

Our Third Quarter FY 2020 financial results being released herein will be available on our website at www.mreic.reit in the Investor Relations section, under Filings and Reports.

 

To participate in the Webcast, select the 3Q2020 Webcast and Earnings Call “Link to Webcast” on the homepage of our website at www.mreic.reit, in the Highlights section, which is located towards the bottom of the homepage. Interested parties can also participate via conference call by calling toll free 1-877-510-5852 (domestically) or 1-412-902-4138 (internationally).

 

The replay of the conference call will be available at 12:00 p.m. Eastern Time on Wednesday, August 5, 2020. It will be available until November 16, 2020, and can be accessed by dialing toll free 1-877-344-7529 (domestically) and 1-412-317-0088 (internationally) and entering the passcode 10144143. A transcript of the call and the webcast replay will be available at our website on the Investor Relations homepage, www.mreic.reit.

 

Monmouth Real Estate Investment Corporation, founded in 1968, is one of the oldest public equity REITs in the world. We specialize in single tenant, net-leased industrial properties, subject to long-term leases, primarily to investment-grade tenants. Monmouth Real Estate is a fully integrated and self-managed real estate company, whose property portfolio consists of 118 properties containing a total of approximately 23.3 million rentable square feet, geographically diversified across 31 states.

 

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 our current expectations and involve various risks and uncertainties. Although we believe the expectations reflected in any forward-looking statements are based on reasonable assumptions, we 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 our annual report on Form 10-K and described from time to time in our other filings with the SEC. We undertake 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, as defined by The National Association of Real Estate Investment Trusts (Nareit), represents net income attributable to common shareholders, as defined by accounting principles generally accepted in the United States of America (U.S. GAAP), excluding extraordinary items, as defined under 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. Included in the Nareit FFO White Paper - 2018 Restatement, is an option pertaining to assets incidental to our main business in the calculation of Nareit FFO to make an election to include or exclude mark-to-market changes in the value recognized on these marketable equity securities. In conjunction with the adoption of the FFO White Paper - 2018 Restatement, for all periods presented, we have elected to exclude unrealized gains and losses from our investments in marketable equity securities from our FFO calculation. Nareit created FFO as a non-GAAP supplemental measure of REIT operating performance. We define Adjusted Funds From Operations (AFFO) as FFO, excluding stock based compensation expense, depreciation of corporate office tenant improvements, amortization of deferred financing costs, non-recurring severance expense, effect of non-cash U.S. GAAP straight-line rent adjustments and subtracting recurring capital expenditures. We define recurring capital expenditures as all capital expenditures that are recurring in nature, 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 believe that, as widely recognized measures of performance used by other REITs, FFO and AFFO may be considered by investors as supplemental measures to compare our operating performance to those of other REITs. FFO and AFFO exclude historical cost depreciation as an expense and may facilitate the comparison of REITs which have a different cost basis. However, other REITs may use different methodologies to calculate FFO and AFFO and, accordingly, our FFO and AFFO may not be comparable to all other REITs. The items excluded from FFO and AFFO are significant components in understanding our financial performance.

 

FFO and AFFO are non-GAAP performance measures and (i) do not represent Cash Flow from Operations as defined by U.S. GAAP; (ii) should not be considered as an alternative to Net Income or Net Income Attributable to Common Shareholders as a measure of operating performance or to Cash Flows from Operating, Investing and Financing Activities; and (iii) are not an alternative to Cash Flows from Operating, Investing and Financing Activities as a measure of liquidity. FFO and AFFO, as calculated by us, 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 (Loss) Attributable to Common Shareholders to the Company’s FFO and AFFO for the three and nine months ended June 30, 2020 and 2019 (in thousands):

 

		Three Months Ended								Nine Months Ended
		6/30/2020				6/30/2019				6/30/2020				6/30/2019
Net Income (Loss) Attributable to Common Shareholders		$	26,851			$	(3,121	)		$	(44,700	)		$	(11,664	)
Less/Plus: Unrealized Holding (Gains) Losses Arising During the Periods			(19,610	)			11,609				67,100				38,668
Plus: Depreciation Expense (excluding Corporate Office Capitalized Costs)			11,685				10,665				34,474				31,692
Plus: Amortization of Intangible Assets			524				490				1,539				1,495
Plus: Amortization of Capitalized Lease Costs			290				256				846				726
FFO Attributable to Common Shareholders			19,740				19,899				59,259				60,917
Plus: Depreciation of Corporate Office Capitalized Costs			57				168				176				376
Plus: Stock Compensation Expense			98				231				368				574
Plus: Amortization of Financing Costs			327				319				1,084				956
Plus: Non-recurring Severance Expense			-0-				-0-				786				-0-
Less: Recurring Capital Expenditures			(508	)			(702	)			(1,443	)			(1,888	)
Less: Effect of Non-cash U.S. GAAP Straight-line Rent Adjustment			(226	)			(527	)			(1,459	)			(1,352	)
AFFO Attributable to Common Shareholders		$	19,488			$	19,388			$	58,771			$	59,583

 

The following are the Cash Flows provided (used) by Operating, Investing and Financing Activities for the nine months ended June 30, 2020 and 2019 (in thousands):

 

		Nine Months Ended
			6/30/2020				6/30/2019
Operating Activities		$	74,932			$	74,753
Investing Activities			(163,049	)			(185,336	)
Financing Activities			80,042				114,890

 

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