Table of Contents

Page

Consolidated Balance Sheets

3

Consolidated Statements of Operations

4

FFO, Core FFO, AFFO, NOI and EBITDA Reconciliations

5

Financial Highlights

6

Consolidated Statements of Cash Flows

7

Capital Structure and Leverage Ratios

8

Debt Maturity

9

Property Table by Tenant

10

Property Table by State

11

Lease Expirations

12

Property Table

13

Definitions

15

Press Release Dated May 8, 2013

16

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

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

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

in the United States. Please see page 15 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
(unaudited)
		March 31,		September 30,
ASSETS		2013		2012
Real Estate Investments:
Land		$               92,470,414		$               88,559,914
Buildings and Improvements		499,445,482		457,557,443
Total Real Estate Investments		591,915,896		546,117,357
Accumulated Depreciation		(84,620,330)		(78,230,873)
Net Real Estate Investments		507,295,566		467,886,484
Real Estate Held for Sale		-		1,080,940
Cash and Cash Equivalents		20,130,455		24,650,858
Securities Available for Sale at Fair Value		52,264,390		61,685,173
Tenant and Other Receivables		3,068,710		1,116,825
Deferred Rent Receivable		2,937,695		2,214,501
Loans Receivable, net		76,695		87,916
Prepaid Expenses		3,448,316		1,428,454
Financing Costs, net of Accumulated Amortization of
$2,747,413 and $2,546,806, respectively		3,568,398		3,213,762
Lease Costs, net of Accumulated Amortization of
$1,213,305 and $1,156,699, respectively		2,046,158		1,518,780
Intangible Assets, net of Accumulated Amortization of
$7,530,104 and $6,731,014, respectively		7,485,936		7,635,026
Other Assets		2,450,801		1,988,983
TOTAL ASSETS		$             604,773,120		$             574,507,702
LIABILITIES AND SHAREHOLDERS' EQUITY
Liabilities:
Mortgage Notes Payable		$             251,352,627		$             237,943,911
Subordinated Convertible Debentures		-0-		8,615,000
Loans Payable		17,200,000		5,200,000
Accounts Payable and Accrued Expenses		3,590,366		3,881,769
Other Liabilities		4,730,004		3,179,883
Total Liabilities		276,872,997		258,820,563
COMMITMENTS AND CONTINGENCIES
Shareholders' Equity:
Series A - 7.625% Cumulative Redeemable Preferred Stock,
$0.01 Par Value Per Share:  2,139,750 Shares Authorized, Issued and
Outstanding as of March 31, 2013 and September 30, 2012		53,493,750		53,493,750
Series B - 7.875% Cumulative Redeemable Preferred Stock,
$0.01 Par Value Per Share:  2,300,000 Shares Authorized, Issued and
Outstanding as of March 31, 2013 and September 30, 2012		57,500,000		57,500,000
Common Stock – $0.01 Par Value Per Share: 67,700,000 Shares Authorized
as of March 31, 2013 and 42,205,458 and 40,696,692 Shares Issued and
Outstanding as of March 31, 2013 and September 30, 2012, respectively		422,055		406,967
Excess Stock – $0.01 Par Value per share: 5,000,000 Shares
Authorized; No Shares Issued or Outstanding		-		-
Additional Paid-In Capital		210,561,738		198,902,485
Accumulated Other Comprehensive Income		5,922,580		5,383,937
Undistributed Income		-		-
Total Shareholders' Equity		327,900,123		315,687,139
TOTAL LIABILITIES & SHAREHOLDERS' EQUITY		$          604,773,120		$          574,507,702

 

 

 

Second Quarter FY 2013 Supplemental of Monmouth Real Estate Investment Corp. Page 3 of 19

 

Consolidated Statements of Operations
(unaudited)
	Three Months Ended				Six Months Ended
	3/31/2013		3/31/2012		3/31/2013		3/31/2012
INCOME:
Rental Revenue	$11,738,407		$10,691,955		$23,047,661		$21,349,581
Reimbursement Revenue	1,567,802		1,875,848		3,086,038		3,455,688
Lease Termination Income	-0-		3,222,283		690,730		3,222,283
TOTAL INCOME	13,306,209		15,790,086		26,824,429		28,027,552
EXPENSES:
Real Estate Taxes	1,117,948		1,675,693		2,281,462		3,100,296
Operating Expenses	967,176		605,502		1,493,800		1,270,329
General & Administrative Expense	944,352		926,267		2,239,408		1,941,500
Acquisition Costs	-0-		261,382		385,862		565,724
Depreciation	3,268,393		2,810,470		6,389,457		5,576,986
Amortization of Lease Costs and Intangible Assets	477,852		413,123		970,716		801,518
TOTAL EXPENSES	6,775,721		6,692,437		13,760,705		13,256,353
OTHER INCOME (EXPENSE):
Interest and Dividend Income	1,004,964		892,506		2,128,025		1,841,832
Gain on Securities Transactions, net	3,802,704		2,209,257		5,913,472		4,997,715
Interest Expense	(3,842,634)		(3,779,879)		(7,718,306)		(7,633,597)
Amortization of Financing Costs	(152,095)		(115,259)		(332,885)		(355,321)
TOTAL OTHER INCOME (EXPENSE)	812,939		(793,375)		(9,694)		(1,149,371)
INCOME FROM CONTINUING OPERATIONS	7,343,427		8,304,274		13,054,030		13,621,828
INCOME (LOSS) FROM DISCONTINUED OPERATIONS	300,484		(44,242)		296,458		4,227
NET INCOME	7,643,911		8,260,032		13,350,488		13,626,055
Less:  Preferred Dividend	2,151,758		1,019,805		4,303,516		2,039,610
NET INCOME ATTRIBUTABLE TO
COMMON SHAREHOLDERS	$5,492,153		$7,240,227		$9,046,972		$11,586,445

 

 

 

 

 

 

 

 

Second Quarter FY 2013 Supplemental of Monmouth Real Estate Investment Corp. Page 4 of 19

 

FFO, Core FFO, AFFO, NOI and EBIDTA Reconciliations
(unaudited)
		Three Months Ended					Six Months Ended
		3/31/2013			3/31/2012		3/31/2013			3/31/2012
Revenues
	Rental Revenue	$11,738,407			$10,691,955		$23,047,661			$21,349,581
	Reimbursement Revenue	1,567,802			1,875,848		3,086,038			3,455,688
	Total Revenue	13,306,209			12,567,803		26,133,699			24,805,269
Expenses
	Real Estate Taxes	1,117,948			1,675,693		2,281,462			3,100,296
	Operating Expenses	967,176			605,502		1,493,800			1,270,329
	Total Expenses	2,085,124			2,281,195		3,775,262			4,370,625
Net Operating Income - NOI		11,221,085			10,286,608		22,358,437			20,434,644
	Lease Termination Income	-			3,222,283		690,730			3,222,283
	Interest and Dividend Income	1,004,964			892,506		2,128,025			1,841,832
	Net Operating Income (Loss) from Discontinued Operations	(45,310)			(24,595)		(36,493)			51,234
	General & Administrative Expense	(944,352)			(926,267)		(2,239,408)			(1,941,500)
EBITDA		11,236,387			13,450,535		22,901,291			23,608,493
	Interest Expense	(3,842,634)			(3,779,879)		(7,718,306)			(7,633,597)
	Gain on Securities Transactions, net	3,802,704			2,209,257		5,913,472			4,997,715
	Acquisition Costs	-			(261,382)		(385,862)			(565,724)
	Preferred Dividend	(2,151,758)			(1,019,805)		(4,303,516)			(2,039,610)
	Other Amortization	(245,244)			(206,463)		(534,195)			(517,028)
Funds From Operations - FFO		8,799,455			10,392,263		15,872,884			17,850,249
	Depreciation Expense (including discontinued operations)	(3,268,393)			(2,830,117)		(6,402,300)			(5,615,773)
	Income (Loss) on Sale of Investment Property	345,794			-		345,794			(8,220)
	Amortization of In-Place Lease Intangible Assets	(384,703)			(321,919)		(769,406)			(639,811)
Net Income Attributable to Common Shareholders		5,492,153			7,240,227		9,046,972			11,586,445
Funds From Operations - FFO		8,799,455			10,392,263		15,872,884			17,850,249
	Acquisition Costs	-			261,382		385,862			565,724
Core Funds From Operations - Core FFO		8,799,455			10,653,645		16,258,746			18,415,973
	Gain on Securities Transactions, net	(3,802,704)			(2,209,257)		(5,913,472)			(4,997,715)
	Stock Compensation Expense	81,562			62,373		161,089			126,696
	Other Amortization	245,244			206,463		534,195			517,028
	Straight-lined Rents	(575,202)			(69,437)		(723,195)			(98,462)
	Recurring Capital Expenditures	(140,164)			(97,132)		(176,804)			(258,520)
Adjusted Funds From Operations - AFFO		4,608,191			8,546,655		10,140,559			13,705,000
EBITDA		11,236,387			13,450,535		22,901,291			23,608,493
	Interest Expense	(3,842,634)			(3,779,879)		(7,718,306)			(7,633,597)
	Preferred Dividend	(2,151,758)			(1,019,805)		(4,303,516)			(2,039,610)
	Stock Compensation Expense	81,562			62,373		161,089			126,696
	Straight-lined Rents	(575,202)			(69,437)		(723,195)			(98,462)
	Recurring Capital Expenditures	(140,164)			(97,132)		(176,804)			(258,520)
Adjusted Funds From Operations - AFFO		$4,608,191			$8,546,655		$10,140,559			$13,705,000

Second Quarter FY 2013 Supplemental of Monmouth Real Estate Investment Corp. Page 5 of 19

 

Financial Highlights
(unaudited)
		Three Months Ended							Six Months Ended
		3/31/2013			3/31/2012				3/31/2013				3/31/2012
Weighted Average Shares Outstanding
	Basic	41,770,762			39,883,133				41,331,860				38,631,103
	Diluted	41,989,449			40,043,673				41,545,266				38,749,864
Net Operating Income - NOI		$11,221,085			$10,286,608				$22,358,437				$20,434,644
	Basic	$0.27			$0.26				$0.54				$0.53
	Diluted	0.27			0.26				0.54				0.53
Net Income Attributable to Common Shareholders		$5,492,153			$7,240,227				$9,046,972				$11,586,445
	Basic	$0.13			$0.18				$0.22				$0.30
	Diluted	0.13			0.18				0.22				0.30
Funds From Operations - FFO		$8,799,455			$10,392,263				$15,872,884				$17,850,249
	Basic	$0.21			$0.26				$0.38				$0.46
	Diluted	0.21			0.26				0.38				0.46
Core Funds From Operations - Core FFO		$8,799,455			$10,653,645				$16,258,746				$18,415,973
	Basic	$0.21			$0.27				$0.39				$0.48
	Diluted	0.21			0.27				0.39				0.48
Core FFO Excluding Gains on Securities Transactions, net		$4,996,751			$8,444,388				$10,345,274				$13,418,258
	Basic	$0.12			$0.21				$0.25				$0.35
	Diluted	0.12			0.21				0.25				0.35
Adjusted Funds From Operations - AFFO		$4,608,191			$8,546,655				$10,140,559				$13,705,000
	Basic	$0.11			$0.21				$0.25				$0.35
	Diluted	0.11			0.21				0.24				0.35
AFFO Excluding Lease Termination Income, net		$4,608,191			$5,324,372				$9,449,829				$10,482,717
	Basic	$0.11			$0.13				$0.23				$0.27
	Diluted	0.11			0.13				0.23				0.27
Dividends Declared per Common Share		$0.15			$0.15				$0.30				$0.30

 

 

 

 

 

 

 

 

Second Quarter FY 2013 Supplemental of Monmouth Real Estate Investment Corp. Page 6 of 19

 

Consolidated Statements of Cash Flows
(unaudited)
		Six Months Ended
		3/31/2013		3/31/2012
CASH FLOWS FROM OPERATING ACTIVITIES
Net Income		$13,350,488		$13,626,055
Noncash Items Included in Net Income:
Depreciation		6,402,300		5,615,773
Amortization		1,310,852		1,156,839
Stock Compensation Expense		161,089		126,696
(Gain) on Securities Transactions, net		(5,913,472)		(4,997,715)
(Gain) Loss on Sale of Investment Property		(345,794)		8,220
Changes In:
Tenant, Deferred Rent and Other Receivables		(2,626,339)		(406,291)
Prepaid Expenses		(2,019,862)		(717,706)
Other Assets and Lease Costs		71,457		(174,042)
Accounts Payable, Accrued Expenses and Other Liabilities		1,298,984		1,682,424
NET CASH PROVIDED BY OPERATING ACTIVITIES		11,689,703		15,920,253
CASH FLOWS FROM INVESTING ACTIVITIES
Purchase of Real Estate and Intangible Assets, net of deposits		(42,363,385)		(50,810,600)
Capital and Land Site Improvements		(3,741,423)		(1,672,864)
Proceeds on Sale of Investment Property, net		1,413,891		2,553,507
Deposits on Acquisition of Real Estate		(1,800,000)		(1,000,000)
Proceeds from Sale of Securities Available for Sale		25,178,027		19,248,938
Purchase of Securities Available for Sale		(9,305,129)		(11,826,052)
Collections on Loans Receivable		11,221		68,069
NET CASH USED IN INVESTING ACTIVITIES		(30,606,798)		(43,439,002)
CASH FLOWS FROM FINANCING ACTIVITIES
Net Proceeds from (Repayments to) Loans Payable		12,000,000		(8,360,950)
Repurchase of Subordinated Convertible Debentures		(5,115,000)		(125,000)
Proceeds from Mortgage Notes Payable		35,000,000		49,233,000
Principal Payments on Mortgage Notes Payable		(21,591,284)		(22,007,314)
Financing Costs Paid on Debt		(519,521)		(1,302,805)
Repayment of Employee Loan		-0-		688,724
Net Distributions to Noncontrolling Interests		(40,266)		(40,267)
Proceeds from the Exercise of Stock Options		-0-		771,593
Proceeds from Registered Direct Placement of Common Stock,
net of Offering Costs		-0-		16,189,700
Proceeds from Issuance of Common Stock in the DRIP, net of Reinvestments		8,160,817		10,074,648
Preferred Dividends Paid		(4,303,516)		(2,039,610)
Common Dividends Paid, net of Reinvestments		(9,194,538)		(10,383,521)
NET CASH  PROVIDED BY FINANCING ACTIVITIES		14,396,692		32,698,198
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS		(4,520,403)		5,179,449
CASH AND CASH EQUIVALENTS - BEGINNING OF PERIOD		24,650,858		6,376,808
CASH AND CASH EQUIVALENTS - END OF PERIOD		$20,130,455		$11,556,257

 

 

 

Second Quarter FY 2013 Supplemental of Monmouth Real Estate Investment Corp. Page 7 of 19

 

Capital Structure and Leverage Ratios
(unaudited)
			As of 3/31/2013			As of 3/31/2012		As of 9/30/2012
Mortgage Notes Payable			$251,352,627			$233,639,856		$237,943,911
Loans Payable			17,200,000			13,700,000		5,200,000
Subordinated Convertible Debentures			-			8,790,000		8,615,000
	Total Debt		268,552,627			256,129,856		251,758,911
Series A - 7.625% Cumulative Redeemable Preferred Stock			53,493,750			53,493,750		53,493,750
Series B - 7.875% Cumulative Redeemable Preferred Stock			57,500,000			-		57,500,000
	Total Preferred Stock		110,993,750			53,493,750		110,993,750
Common Stock, Paid-in-Capital & Other			216,906,373			212,339,117		204,693,389
	Total Shareholders' Equity		327,900,123			265,832,867		315,687,139
	Total Book Capitalization		596,452,750			521,962,723		567,446,050
	Accumulated Depreciation		84,620,330			73,493,533		78,230,873
	Total Undepreciated Book Capitalization		$681,073,080			$595,456,256		$645,676,923
Shares Outstanding			42,205,458			40,222,375		40,696,692
Market Price Per Share			$11.15			$9.74		$11.19
Equity Market Capitalization			$470,590,857			$391,765,933		$455,395,983
Total Debt			268,552,627			256,129,856		251,758,911
Total Preferred Stock			110,993,750			53,493,750		110,993,750
	Total Market Capitalization		$850,137,234			$701,389,539		$818,148,644
Total Debt			$268,552,627			$256,129,856		$251,758,911
less: Cash and Cash Equivalents			20,130,455			11,556,257		24,650,858
	Net Debt		$248,422,172			$244,573,599		$227,108,053
Net Debt / Undepreciated Book Capitalization			36.5%			41.1%		35.2%
Net Debt / Total Market Capitalization			29.3%			34.9%		27.8%
Net Debt + Preferred / Total Market Capitalization			42.3%			42.5%		41.3%
			Three Months Ended					Fiscal Year Ended
			3/31/2013		3/31/2012			9/30/2012
Net Income			$7,643,911		$8,260,032			$18,684,495
plus: Depreciation & Amortization (includes Discontinued Operations)		3,898,340			3,358,499			13,910,385
plus: Interest Expense			3,842,634		3,779,879			15,352,499
plus: Acquisition Costs			-		261,382			667,799
less: Gain On Securities Transactions, net			(3,802,704)		(2,209,257)			(6,044,065)
less: (Loss) on Sale of Investment Property			(345,794)		-			-
	EBITDA		$11,236,387		$13,450,535			$42,571,113
Interest Expense			$3,842,634		$3,779,879			$15,352,499
Preferred Dividends Paid			2,151,758		1,019,805			5,135,782
	Total Fixed Charges		$5,994,392		$4,799,684			$20,488,281
Interest Coverage			2.9 x		3.6 x			2.8 x
Fixed Charge Coverage			1.9 x		2.8 x			2.1 x
Total Debt			$268,552,627		$256,129,856			$251,758,911
Annualized EBITDA			44,945,548		53,802,140			42,571,113
Total Debt / EBITDA			6.0 x		4.8 x			5.9 x

 

Second Quarter FY 2013 Supplemental of Monmouth Real Estate Investment Corp. Page 8 of 19

 

				Loans		% of
FY Year		Mortgages		Payable (1)	Total	Total
2013		15,016,820		12,000,000	27,016,820	10.1%
2014		20,818,049		-	20,818,049	7.8%
2015		21,835,789		1,012,039	22,847,828	8.5%
2016		33,400,263		1,270,162	34,670,425	12.9%
2017		40,721,489		2,917,799	43,639,288	16.2%
Thereafter		119,560,217		-	119,560,217	44.5%
Total as of 3/31/2013		$251,352,627	$17,200,000		$268,552,627	100.0%

 

 

 

 

 

 

Second Quarter FY 2013 Supplemental of Monmouth Real Estate Investment Corp. Page 9 of 19

Property Table by Tenant
(unaudited)				Occupied
		Property	Square	Square	% of Total	Annual	% of Total	Rent Per		Undepreciated		Mortgage
Tenant		Count	Footage	Footage	Sq. Ft.	Rent	Ann. Rent	Sq. Ft. Occup.		Cost		Balance
FedEx Ground		22	2,358,295	2,358,295	25.7%	$17,765,000	37.5%	$7.53		$215,046,507		$92,136,205
FedEx Express		14	973,413	973,413	10.6%	5,451,000	11.5%	5.60		70,346,990		25,905,216
FedEx Supply Chain Services		1	449,900	449,900	4.9%	1,305,000	2.8%	2.90		14,600,000		9,154,332
Total FedEx		37	3,781,608	3,781,608	41.3%	24,521,000	51.7%	6.48		299,993,497		127,195,753
Milwauke Tool		1	615,305	615,305	6.7%	1,923,000	4.1%	3.13		27,368,816		17,018,351
Woodstream		1	388,671	256,000	2.8%	896,000	1.9%	3.50		13,116,870		2,646,926
CBOCS Distribution, Inc.		1	381,240	381,240	4.2%	1,381,000	2.9%	3.62		14,215,126		8,287,882
Best Buy Warehousing Logistics, Inc.		1	368,060	368,060	4.0%	1,595,000	3.4%	4.33		19,600,000		12,167,250
Coca Cola / Western Container		2	323,358	323,358	3.5%	1,566,000	3.3%	4.84		18,839,339		9,881,137
Norton McNaughton of Squire, Inc.		1	306,000	306,000	3.3%	1,389,000	2.9%	4.54		12,972,474		6,674,881
Various		2	265,480	230,605	2.5%	907,000	1.9%	3.93		4,407,744		-
Carrier Sales		2	244,317	244,317	2.7%	1,853,000	3.9%	7.58		22,451,041		11,606,376
Anda Pharmaceuticals, Inc		1	234,660	234,660	2.6%	1,182,000	2.5%	5.04		14,550,000		10,571,407
Caterpillar Logistics Services, Inc.		1	218,120	218,120	2.4%	1,169,000	2.5%	5.36		14,868,857		8,036,374
Anheuser-Busch, Inc.		1	184,800	184,800	2.0%	778,000	1.6%	4.21		12,386,675		3,321,353
Carlisle Tire & Wheel Company		1	179,280	179,280	2.0%	728,000	1.5%	4.06		7,025,401		1,988,419
Home Depot USA, Inc.		1	171,200	171,200	1.9%	889,000	1.9%	5.19		11,298,367		-
Kellogg Company		3	170,279	170,279	1.9%	1,061,000	2.2%	6.23		11,834,916		3,472,522
Maidenform, Inc.		1	148,000	148,000	1.6%	444,000	0.9%	3.00		4,870,749		3,354,210
H.E.P. Direct		1	106,507	106,507	1.2%	288,000	0.6%	2.70		6,913,986		-
Pittsburgh Glass Works		1	102,135	102,135	1.1%	427,000	0.9%	4.18		3,900,602		-
National Oilwell		1	91,295	91,295	1.0%	733,000	1.5%	8.03		8,080,828		4,435,044
Joseph T. Ryerson		1	89,052	89,052	1.0%	506,000	1.1%	5.68		6,867,596		1,941,705
DHL		1	83,000	83,000	0.9%	639,000	1.3%	7.70		6,815,697		3,493,991
Sherwin-Williams Company		2	78,887	78,887	0.9%	631,000	1.3%	8.00		7,103,762		1,912,857
RGH Enterprises Inc.		1	75,000	75,000	0.8%	579,000	1.2%	7.72		5,525,600		4,115,250
Tampa Bay Grand Prix		1	68,385	68,385	0.7%	262,000	0.6%	3.83		5,616,874		2,476,121
Macy’s East, Inc.		1	59,400	59,400	0.6%	230,000	0.5%	3.87		4,838,592		2,380,519
Siemens		1	51,130	51,130	0.6%	456,000	1.0%	8.92		4,416,000		2,930,259
Keystone Automotive		1	36,270	36,270	0.4%	136,000	0.3%	3.75		2,161,895		-
Graybar Electric Company		1	26,340	26,340	0.3%	109,000	0.2%	4.14		1,850,794		-
Tenant Total as of 3/31/2013		70	8,847,779	8,680,233	94.7%	$47,278,000	99.7%	$5.45		$573,892,098		$249,908,587
Vacant		3	317,625	-	5.3%	119,000 (A)	0.3%	0.53		17,991,447		1,444,040
Total as of 3/31/2013		73	9,165,404	8,680,233	100.0%	$47,397,000	100.0%	$5.46		$591,883,545 (B)		$251,352,627

(A)

Includes rental revenue from properties during Fiscal 2013 prior to becoming vacant.

(B)

Does not include $32,351 of vacant land and corporate office leasehold improvements not associated with a specific tenant.

 

Second Quarter FY 2013 Supplemental of Monmouth Real Estate Investment Corp. Page 10 of 19

 

Property Table by State
(unaudited)
		Property	Square	Occupied Square	% of Total	Annual	% of Total	Rent Per			Undepreciated		Mortgage
State		Count	Footage	Footage	Sq. Ft.	Rent	Ann. Rent	Sq. Ft. Occup.			Cost		Balance
Mississippi		4	912,305	912,305	10.0%	$3,354,000	7.1%	$3.68			$45,247,611		$27,589,757
Tennessee		3	891,777	891,777	9.7%	2,998,000	6.3%	3.36			33,614,166		19,720,680
Florida		9	784,677	784,677	8.6%	5,081,000	10.7%	6.48			67,116,257		33,201,414
Illinois		7	720,439	720,439	7.9%	4,705,000	9.9%	6.53			61,161,692		11,761,158
Ohio		5	684,762	684,762	7.5%	3,629,000	7.7%	5.30			43,906,299		25,365,907
Missouri		4	654,073	423,202	7.1%	1,673,000	3.5%	3.95			29,110,344		5,344,226
Texas		6	629,895	629,895	6.9%	4,659,000	9.8%	7.40			54,757,073		32,030,004
South Carolina		3	510,560	510,560	5.6%	3,088,000	6.5%	6.05			33,413,400		12,305,944
Michigan		3	437,417	437,417	4.8%	2,847,000	6.0%	6.51			37,365,647		22,347,582
North Carolina		3	414,507	254,507	4.5%	779,000	1.6%	3.06			17,274,557		4,798,251
Georgia		3	307,662	307,662	3.4%	1,767,000	3.7%	5.74			22,124,663		10,528,469
Virginia		4	303,863	303,863	3.3%	1,815,000	3.8%	5.97			23,588,938		5,321,616
Arizona		1	283,358	283,358	3.1%	1,234,000	2.6%	4.35			15,159,496		7,781,031
New York		3	230,381	230,381	2.5%	1,898,000	4.0%	8.24			20,148,376		5,411,422
Kansas		2	219,280	219,280	2.4%	1,060,000	2.2%	4.83			10,705,244		4,088,527
Pennsylvania		1	201,342	201,342	2.2%	595,000	1.3%	2.96			3,031,531		-
Maryland		1	144,523	144,523	1.6%	1,426,000	3.0%	9.87			14,386,784		7,268,589
Wisconsin		1	139,564	139,564	1.5%	901,000	1.9%	6.46			9,373,672		1,368,371
Colorado		2	138,235	138,235	1.5%	1,208,000	2.5%	8.74			13,549,167		4,234,814
New Jersey		2	123,538	88,663	1.3%	542,000	1.1%	6.11			6,214,805		2,380,519
Oklahoma		1	119,912	119,912	1.3%	706,000	1.5%	5.89			9,437,733		5,933,699
Nebraska		1	89,115	89,115	1.0%	454,000	1.0%	5.09			5,732,599		360,063
Alabama		1	73,712	73,712	0.8%	412,000	0.9%	5.59			4,748,646		1,435,364
Minnesota		1	59,425	-	0.6%	72,000	0.2%	-			5,157,126		-
Connecticut		1	54,812	54,812	0.6%	358,000	0.8%	6.53			3,395,824		775,220
Iowa		1	36,270	36,270	0.4%	136,000	0.3%	3.75			2,161,895		-
Total as of 3/31/2013		73	9,165,404	8,680,233	100.0%	$47,397,000	100.0%	$5.46			$591,883,545		$251,352,627

 

 

 

Second Quarter FY 2013 Supplemental of Monmouth Real Estate Investment Corp. Page 11 of 19

Lease Expirations
(unaudited)
		Property	Square	% of Total	Annual	% of Total	Rent Per	Lease Exp.		Undepreciated		Mortgage
Fiscal Year		Count	Footage	Sq. Ft.	Rent	Ann. Rent	Sq. Ft. Occup.	Term		Cost		Balance
2014		5	348,612	3.8%	1,525,000	3.2%	4.37	0.9 Yrs		18,273,882		6,509,951
2015		7	836,256	9.1%	4,300,000	9.1%	5.14	2.1 Yrs		47,485,773		13,867,646
2016		2	244,800	2.7%	1,082,000	2.3%	4.42	3.2 Yrs		17,097,717		4,774,514
2017		15	1,974,950	21.5%	11,287,000	23.8%	6.13	4.1 Yrs		145,796,266		57,732,558
2018		11	1,005,328	11.0%	6,350,000	13.4%	6.32	5.1 Yrs		76,680,756		28,805,569
2019		8	1,196,114	13.1%	7,345,000	15.5%	6.14	6.1 Yrs		86,252,433		38,468,373
2020		1	68,385	0.7%	262,000	0.6%	3.83	7.5 Yrs		5,616,874		2,476,121
2021		4	271,768	3.0%	1,752,000	3.7%	6.45	8.4 Yrs		20,341,956		12,189,050
2022		8	1,237,238	13.5%	7,058,000	14.9%	5.70	9.0 Yrs		84,375,807		53,703,710
2023		4	862,106	9.4%	3,105,000	6.6%	3.60	10.1 Yrs		42,075,165		20,906,291
2024		3	536,742	5.9%	2,305,000	4.9%	4.29	11.1 Yrs		25,487,725		10,474,804
Various		2	265,480	2.9%	907,000	1.9%	3.93	-		4,407,744		-
Vacant		3	317,625	3.5%	119,000	0.3%	-	-		17,991,447		1,444,040
Total as of 3/31/2013		73	9,165,404	100.0%	$47,397,000	100.0%	$5.46	6.1 Yrs		$591,883,545		$251,352,627

 

 

 

 

 

 

 

Second Quarter FY 2013 Supplemental of Monmouth Real Estate Investment Corp. Page 12 of 19

Property Table
(unaudited)
									Fiscal Year					Square		Annual		Rent Per		Lease Exp.			Undepreciated			Mortgage
No	Tenant			City		State			Acquisition			Occup.		Footage		Rent		Sq. Ft. Occup.		Term			Cost			Balance
1	Milwauke Tool			Olive Branch		MS			2013			100.0%		615,305		$1,923,000		$3.13		10.1 Yrs			$27,368,816			$17,018,351
2	FedEx Supply Chain Services, Inc.			Memphis		TN			2010			100.0%		449,900		1,305,000		2.90		6.2 Yrs			14,600,000			9,154,332
3	Woodstream			St. Joseph		MO			2001			65.9%		388,671		896,000		3.50		4.5 Yrs			13,116,870			2,646,926
4	CBOCS Distribution, Inc.			Lebanon		TN			2011			100.0%		381,240		1,381,000		3.62		11.3 Yrs			14,215,126			8,287,882
5	Best Buy Warehousing Logistics, Inc.			Streetsboro		OH			2012			100.0%		368,060		1,595,000		4.33		8.8 Yrs			19,600,000			12,167,250
6	Norton McNaughton of Squire, Inc.			Hanahan		SC			2005			100.0%		306,000		1,389,000		4.54		2.1 Yrs			12,972,474			6,674,881
7	Various			Monaca		PA			1997			100.0%		201,342		595,000		2.96		na			3,031,531			-
8	Western Container Corp			Tolleson		AZ			2003			100.0%		283,358		1,234,000		4.35		4.1 Yrs			15,159,496			7,781,031
9	Anda Pharmaceuticals, Inc			Olive Branch		MS			2012			100.0%		234,660		1,182,000		5.04		9.2 Yrs			14,550,000			10,571,407
10	Caterpillar Logistics Services, Inc.			Griffin		GA			2006			100.0%		218,120		1,169,000		5.36		3.7 Yrs			14,868,857			8,036,374
11	FedEx Ground Package System, Inc.			Orion		MI			2007			100.0%		193,479		1,285,000		6.64		4.3 Yrs			19,182,035			10,245,219
12	Anheuser-Busch, Inc.			Granite City		IL			2001			100.0%		184,800		778,000		4.21		3.2 Yrs			12,386,675			3,321,353
13	Carrier Sales			Dallas		TX			2010			100.0%		184,317		1,549,000		8.40		5.8 Yrs			17,740,000			10,153,215
14	Carlisle Tire & Wheel Company			Edwardsville		KS			2003			100.0%		179,280		728,000		4.06		5.2 Yrs			7,025,401			1,988,419
15	Fedex Ground Package System. Inc			Livonia		MI			2013			100.0%		172,005		1,192,000		6.93		9.0 Yrs			13,700,000			9,376,990
16	Home Depot USA, Inc.			Montgomery		IL			2007			100.0%		171,200		889,000		5.19		2.2 Yrs			11,298,367			-
17	FedEx Ground Package System, Inc.			Tampa		FL			2004			100.0%		170,779		1,412,000		8.27		5.8 Yrs			17,723,825			8,845,677
18	Vacant			Monroe		NC			2001			-		160,000		47,000		na		-			5,489,822			1,444,041
19	Maidenform, Inc.			Fayetteville		NC			1997			100.0%		148,000		444,000		3.00		0.8 Yrs			4,870,749			3,354,210
20	FedEx Ground Package System, Inc.			Beltsville		MD			2001			100.0%		144,523		1,426,000		9.87		5.3 Yrs			14,386,784			7,268,589
21	FedEx Ground Package System, Inc.			Cudahy		WI			2001			100.0%		139,564		901,000		6.46		4.3 Yrs			9,373,672			1,368,371
22	FedEx Ground Package System, Inc.			Wheeling		IL			2007			100.0%		123,000		1,386,000		11.27		4.2 Yrs			18,537,652			4,585,244
23	FedEx Ground Package System, Inc.			Oklahoma City		OK			2012			100.0%		119,912		706,000		5.89		9.0 Yrs			9,437,733			5,933,699
24	FedEx Ground Package System, Inc.			Edinburg		TX			2011			100.0%		113,582		598,000		5.26		8.4 Yrs			7,414,000			4,437,390
25	FedEx Corporation			Richmond		VA			2007			100.0%		112,799		543,000		4.81		10.1 Yrs			7,718,163			-
26	FedEx Ground Package System, Inc.			Ft. Mill		SC			2010			100.0%		112,784		1,024,000		9.08		6.5 Yrs			12,834,256			3,666,346
27	FedEx Corporation			Orlando		FL			2008			100.0%		110,638		666,000		6.02		4.7 Yrs			8,492,904			5,080,426
28	H.E.P. Direct			Winston-Salem		NC			2002			100.0%		106,507		288,000		2.70		4.8 Yrs			6,913,986			-
29	FedEx Ground Package System, Inc.			Cheektowaga		NY			2007			100.0%		104,981		966,000		9.20		6.4 Yrs			10,932,057			1,296,172
30	FedEx Ground Package System, Inc.			West Chester Twp		OH			2000			100.0%		103,818		518,000		4.99		10.4 Yrs			5,061,253			2,824,987
31	Fedex Ground Package System. Inc			Waco		TX			2012			100.0%		102,594		659,000		6.42		9.2 Yrs			8,733,000			5,668,706
32	Pittsburgh Glass Works			O' Fallon		MO			1994			100.0%		102,135		427,000		4.18		2.2 Yrs			3,900,602			-
33	Vacant			Liberty		MO			1998			-		98,200		-		na		-			7,344,498			-
34	FedEx Corporation			Jacksonville		FL			1999			100.0%		95,883		524,000		5.46		6.2 Yrs			6,155,500			2,422,371
35	FedEx Corporation			Tampa		FL			2006			100.0%		95,662		603,000		6.30		4.5 Yrs			7,565,717			4,658,580
36	FedEx Ground Package System, Inc.			El Paso		TX			2007			100.0%		91,854		668,000		7.27		2.5 Yrs			8,024,745			4,409,469
37	FedEx Ground Package System, Inc.			Hanahan		SC			2005			100.0%		91,776		675,000		7.35		5.3 Yrs			7,606,670			1,964,717
38	National Oilwell			Houston		TX			2010			100.0%		91,295		733,000		8.03		9.5 Yrs			8,080,828			4,435,044
39	FedEx Corporation			Omaha		NE			1999			100.0%		89,115		454,000		5.09		10.6 Yrs			5,732,599			360,063
40	FedEx Ground Package System, Inc.			Cocoa		FL			2008			100.0%		89,101		739,000		8.29		3.6 Yrs			10,521,455			6,037,408
41	Joseph T. Ryerson			Elgin		IL			2002			100.0%		89,052		506,000		5.68		3.8 Yrs			6,867,596			1,941,705
42	FedEx Ground Package System, Inc.			Ft. Myers		FL			2003			100.0%		87,500		416,000		4.75		1.6 Yrs			4,977,449			-
43	DHL			Roanoke		VA			2007			100.0%		83,000		639,000		7.70		3.7 Yrs			6,815,697			3,493,991
44	FedEx Corporation			Bedford Heights		OH			2007			100.0%		82,269		415,000		5.04		5.4 Yrs			6,620,313			3,261,689
45	FedEx Ground Package System, Inc.			Richfield		OH			2006			100.0%		79,485		645,000		8.11		3.6 Yrs			8,208,733			4,181,723
46	RGH Enterprises Inc.			Halfmoon		NY			2012			100.0%		75,000		579,000		7.72		8.7 Yrs			5,525,600			4,115,250
47	FedEx Ground Package System, Inc.			Huntsville		AL			2005			100.0%		73,712		412,000		5.59		9.4 Yrs			4,748,646			1,435,364
48	FedEx Corporation			Schaumburg		IL			1997			100.0%		73,500		515,000		7.01		4.0 Yrs			4,967,639			-

 

 

Second Quarter FY 2013 Supplemental of Monmouth Real Estate Investment Corp. Page 13 of 19

 

Property Table
(unaudited)
									Fiscal Year					Square		Annual		Rent Per		Lease Exp.			Undepreciated			Mortgage
No	Tenant			City		State			Acquisition			Occup.		Footage		Rent		Sq. Ft. Occup.		Term			Cost			Balance
49	FedEx Corporation			Romulus		MI			1998			100.0%		71,933		$370,000		$5.14		8.2 Yrs			$4,483,613			$2,725,373
50	FedEx Ground Package System, Inc.			Denver		CO			2005			100.0%		69,865		564,000		8.07		5.3 Yrs			6,354,051			2,017,357
51	Tampa Bay Grand Prix			Tampa		FL			2007			100.0%		68,385		262,000		3.83		7.5 Yrs			5,616,874			2,476,121
52	FedEx Ground Package System, Inc.			Colorado Springs		CO			2006			100.0%		68,370		644,000		9.42		5.5 Yrs			7,195,115			2,217,457
53	Sherwin-Williams Company			Rockford		IL			2011			100.0%		66,387		470,000		7.08		10.8 Yrs			5,540,000			1,826,860
54	Kellogg Sales Company			Kansas City		MO			2007			100.0%		65,067		350,000		5.38		2.3 Yrs			4,748,374			2,697,299
55	Various			Somerset		NJ			1970			45.6%		64,138		312,000		10.66		na			1,376,213			-
56	FedEx Corporation			Chattanooga		TN			2007			100.0%		60,637		312,000		5.15		4.6 Yrs			4,799,040			2,278,466
57	Carrier Sales			Richmond		VA			2001			100.0%		60,000		304,000		5.07		3.2 Yrs			4,711,041			1,453,161
58	Vacant			White Bear Lake		MN			2007			-		59,425		72,000		na		-			5,157,126			-
59	Macy’s East, Inc.			Carlstadt		NJ			2007			100.0%		59,400		230,000		3.87		1.0 Yrs			4,838,592			2,380,519
60	FedEx Ground Package System, Inc.			Augusta		GA			2005			100.0%		59,358		477,000		8.04		5.3 Yrs			5,328,874			1,429,142
61	Keebler Company			Newington		CT			2001			100.0%		54,812		358,000		6.53		0.9 Yrs			3,395,824			775,220
62	Siemens			Lebanon		OH			2012			100.0%		51,130		456,000		8.92		6.1 Yrs			4,416,000			2,930,259
63	Keebler Company			Orangeburg		NY			1993			100.0%		50,400		353,000		7.00		0.9 Yrs			3,690,718			-
64	FedEx Corporation			Charlottesville		VA			1999			100.0%		48,064		329,000		6.85		4.4 Yrs			4,344,037			374,464
65	FedEx Ground Package System, Inc.			Corpus Christi		TX			2012			100.0%		46,253		452,000		9.77		8.4 Yrs			4,764,500			2,926,180
66	Coca Cola Enterprises, Inc.			Topeka		KS			2009			100.0%		40,000		332,000		8.30		8.5 Yrs			3,679,843			2,100,108
67	Keystone Automotive			Urbandale		IA			1994			100.0%		36,270		136,000		3.75		4.0 Yrs			2,161,895			-
68	FedEx Corporation			Richland		MS			1994			100.0%		36,000		140,000		3.89		1.0 Yrs			1,478,000			-
69	FedEx Corporation			Punta Gorda		FL			2007			100.0%		34,624		304,000		8.78		4.3 Yrs			4,104,915			2,381,522
70	FedEx Corporation			Lakeland		FL			2007			100.0%		32,105		155,000		4.83		4.7 Yrs			1,957,618			1,299,308
71	FedEx Corporation			Augusta		GA			2007			100.0%		30,184		121,000		4.01		9.7 Yrs			1,926,932			1,062,954
72	Graybar Electric Company			Jackson		MS			1993			100.0%		26,340		109,000		4.14		6.3 Yrs			1,850,794			-
73	Sherwin-Williams Company			Burr Ridge		IL			1997			100.0%		12,500		161,000		12.88		1.6 Yrs			1,563,765			85,995
	Total as of 3/31/2013											94.7%		9,165,404		$47,397,000		$5.46		6.1 Yrs			$591,883,545			$251,352,627

 

 

Second Quarter FY 2013 Supplemental of Monmouth Real Estate Investment Corp. Page 14 of 19

 

 

 

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

 

 

 

 

 

 

 

Second Quarter FY 2013 Supplemental of Monmouth Real Estate Investment Corp. Page 15 of 19

FOR IMMEDIATE RELEASE May 8, 2013

Contact: Susan Jordan

732-577-9996

 

MONMOUTH REAL ESTATE INVESTMENT CORPORATION

REPORTS 2nd QUARTER 2013 FINANCIAL RESULTS FOR THE PERIOD ENDED MARCH 31, 2013

 

FREEHOLD, NJ, May 8, 2013........ Monmouth Real Estate Investment Corporation (NYSE/MNR) reported Core Funds from Operations (Core FFO) for the three months ended March 31, 2013 of $8,799,000 or $0.21 per diluted share versus $10,654,000 or $0.27 per diluted share for the three months ended March 31, 2012. Core FFO for the prior year period included $3,222,000 or $0.08 per share in non-recurring lease termination fees. Excluding the effect of these fees, Core FFO for the three months ended March 31, 2012 was $7,432,000 or $0.19 per diluted share.

 

A summary of significant financial information for the three and six months ended March 31, 2013 and 2012 is as follows:

 

		Three Months Ended March 31,
		2013		2012
Rental Revenue	$	11,738,000	$	10,692,000
Reimbursement Revenue	$	1,568,000	$	1,876,000
Lease Termination Income	$	-0-	$	3,222,000
Total Expenses	$	6,776,000	$	6,692,000
Interest and Dividend Income	$	1,005,000	$	893,000
Gain on Securities Transactions, net	$	3,803,000	$	2,209,000
Income from Continuing Operations Income (Loss) from Discontinued Operations	$ $	7,343,000 300,000	$ $	8,304,000 (44,000)
Net Income Attributable to Common Shareholders	$	5,492,000	$	7,240,000
Net Income Attributable to Common Shareholders Per Common Share	$	0.13	$	0.18
Core FFO (1)	$	8,799,000	$	10,654,000
Core FFO per Common Share (1)	$	0.21	$	0.27
Core FFO Excluding Lease Termination Fees (1)	$	8,799,000	$	7,432,000
Core FFO Excluding Lease Termination Fees per Common Share (1)	$	0.21	$	0.19
Weighted Avg. Diluted Common Shares Outstanding		41,989,000		40,044,000

 

 

 

 

 

 

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Second Quarter FY 2013 Supplemental of Monmouth Real Estate Investment Corp. Page 16 of 19

 

		Six Months Ended March 31,
		2013		2012
Rental Revenue	$	23,048,000	$	21,350,000
Reimbursement Revenue	$	3,086,000	$	3,456,000
Lease Termination Income	$	691,000	$	3,222,000
Total Expenses	$	13,761,000	$	13,256,000
Interest and Dividend Income	$	2,128,000	$	1,842,000
Gain on Securities Transactions, net	$	5,913,000	$	4,998,000
Income from Continuing Operations Income (Loss) from Discontinued Operations	$ $	13,054,000 296,000	$ $	13,622,000 4,000
Net Income Attributable to Common Shareholders	$	9,047,000	$	11,586,000
Net Income Attributable to Common Shareholders Per Common Share	$	0.22	$	0.30
Core FFO (1)	$	16,259,000	$	18,416,000
Core FFO per Common Share (1)	$	0.39	$	0.48
Core FFO Excluding Lease Termination Fees (1)	$	15,568,000	$	15,194,000
Core FFO Excluding Lease Termination Fees per Common Share (1)	$	0.37	$	0.39
Weighted Avg. Diluted Common Shares Outstanding		41,545,000		38,750,000

 

A summary of significant balance sheet information as of March 31, 2013 and September 30, 2012 is as follows:

 

		March 31, 2013		September 30, 2012
Net Real Estate Investments	$	507,296,000	$	467,886,000
Securities Available for Sale	$	52,264,000	$	61,685,000
Total Assets	$	604,773,000	$	574,508,000
Mortgage Notes Payable	$	251,353,000	$	237,944,000
Subordinated Convertible Debentures	$	-0-	$	8,615,000
Loans Payable	$	17,200,000	$	5,200,000
Total Shareholders’ Equity	$	327,900,000	$	315,687,000

 

Michael P. Landy, President, commented on the results of the second quarter of fiscal year 2013, “The recent quarter represented continued progress across multiple fronts. Our occupancy rate improved by 100 basis points and to 95% compared to occupancy of 94% reported in the December 2012 quarter. Our portfolio wide average lease maturity improved to 6.1 years from 6.0 years in the prior December quarter. We have now secured lease renewals on 93% of the 897,000 square feet in leases set to expire this fiscal year. We have $96 million in new acquisitions under contract representing 1.4 million square feet in new industrial build-to-suit properties secured by investment grade tenants on leases of 10 years or greater. These acquisitions are expected to close in the second half of fiscal 2013 and during fiscal 2014. Our REIT securities portfolio continued to perform well generating $3.8 million in realized gains during the second quarter and $5.9 million in gains realized thus far in fiscal 2013. At quarter end we had an additional $5.9 million in unrealized gains on our REIT securities investments. We are very pleased with our latest results and look forward to continuing to execute our growth strategy of investing in net-leased industrial properties on long-term leases to investment grade tenants.”

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Second Quarter FY 2013 Supplemental of Monmouth Real Estate Investment Corp. Page 17 of 19

Monmouth Real Estate Investment Corporation will host its Second Quarter 2013 Financial Results Webcast and Conference Call. Senior management will discuss the results, current market conditions and future outlook on Thursday, May 9, 2013 at 10:00 a.m. Eastern Time.

 

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

 

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

 

The replay of the conference call will be available at 12:00 p.m. Eastern Time on Thursday, May 9, 2013. It will be available until June 30, 2013, and can be accessed by dialing toll free 877-344-7529 (domestically) and 412-317-0088 (internationally) and entering the passcode 10025487. A transcript of the call and the webcast replay will be available at the Company’s website, www.mreic.com.

 

Formed in 1968, Monmouth Real Estate Investment Corporation is a publicly-owned real estate investment trust specializing in net-leased industrial properties subject to long-term leases primarily to investment grade tenants. The Company is a fully integrated and self-managed real estate company, whose property portfolio consists of seventy-two industrial properties and one shopping center located in twenty-six states. 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.

 

 

 

 

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Second Quarter FY 2013 Supplemental of Monmouth Real Estate Investment Corp. Page 18 of 19

Notes:

 

(1) Non-US GAAP Information: FFO is defined by the National Association of Real Estate Investment Trusts ("NAREIT") as net income applicable to common shareholders, excluding gains or losses from sales of depreciable assets, plus real estate-related depreciation and amortization. Core FFO is defined as FFO plus acquisition costs. FFO per diluted common share is defined as FFO divided by weighted average diluted common shares outstanding. FFO and Core FFO per diluted common share should be considered as supplemental measures of operating performance used by real estate investment trusts (REITs). FFO and Core FFO per diluted common share exclude historical cost depreciation as an expense and may facilitate the comparison of REITs which have different cost basis. The items excluded from FFO and Core FFO per diluted common share are significant components in understanding the Company’s financial performance.

 

FFO and Core FFO 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 and Core FFO per diluted common share, as calculated by the Company, may not be comparable to similarly titled measures reported by other REITs.

 

 

The Company’s FFO and Core FFO for the three and six months ended March 31, 2013 and 2012 are calculated as follows:

 

	Three Months Ended				Six Months Ended
	3/31/2013		3/31/2012		3/31/2013		3/31/2012
Net Income Attributable to Common Shareholders	$5,492,000		$7,240,000		$9,047,000		$11,586,000
Depreciation Expense	3,268,000		2,830,000		6,402,000		5,616,000
Amortization of Lease Intangible Assets	385,000		322,000		770,000		640,000
(Gain) Loss on Sales of Depreciated Assets	(346,000)		-0-		(346,000)		8,000
FFO Attributable to Common Shareholders	$8,799,000		$10,392,000		$15,873,000		$17,850,000
Acquisition Costs	-0-		262,000		386,000		566,000
Core FFO Attributable to Common Shareholders	$8,799,000		$10,654,000		$16,259,000		$18,416,000

 

 

The following are the cash flows provided (used) by operating, investing and financing activities for the six months ended March 31, 2013 and 2012:

 

	2013		2012
Operating Activities	$11,690,000		$15,920,000
Investing Activities	(30,607,000)		(43,439,000)
Financing Activities	14,397,000		32,698,000

 

 

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Second Quarter FY 2013 Supplemental of Monmouth Real Estate Investment Corp. Page 19 of 19