EXHIBIT- 99

 

 

 

Table of Contents

 

	Page
Consolidated Balance Sheets	3
Consolidated Statements of Income	4
NOI, EBITDA, FFO, Core FFO and AFFO Reconciliations	5
Financial Highlights	6
Same Property Statistics	7
Consolidated Statements of Cash Flows	8
Capital Structure and Leverage Ratios	9
Debt Maturity	11
Property Table by Tenant	12
Property Table by State	13
Lease Expirations	14
Recent Acquisitions	15
Property Table	16
Definitions	18
Press Release Dated February 3, 2016	19

 

The statement of operations and supplemental statement of operations provided in this supplemental information package present funds from operations, core funds from operations, adjusted funds from operations, net operating income (NOI), Same Property NOI, Same Property cash NOI and EBITDA which are REIT industry financial measures that are not calculated in accordance with accounting principles generally accepted in the United States of America. Please see page 18 for a definition of these supplemental performance measures. Please see the supplemental statement of operations reconciliation for a reconciliation of certain captions in the supplemental statement of operations reported in this supplemental information package to the statement of operations as reported in the Company’s filings with the SEC on Form 10-Q.

 

 

Table of Content

 

Consolidated Balance Sheets

 

		December 31, 2015				September 30, 2015
		(unaudited)
ASSETS
Real Estate Investments:
Land		$	141,185,315			$	134,160,315
Buildings and Improvements			852,201,439				807,619,001
Total Real Estate Investments			993,386,754				941,779,316
Accumulated Depreciation			(130,573,643	)			(124,978,211	)
Net Real Estate Investments			862,813,111				816,801,105
Cash and Cash Equivalents			12,926,924				12,073,909
Securities Available for Sale at Fair Value			61,032,630				54,541,237
Tenant and Other Receivables			1,397,112				783,052
Deferred Rent Receivable			5,514,960				5,205,295
Prepaid Expenses			6,525,914				3,931,616
Financing Costs, net of Accumulated Amortization of $3,481,381 and $3,247,014, respectively			6,158,217				5,987,911
Capitalized Lease Costs, net of Accumulated Amortization of  $2,723,159 and $2,534,521, respectively			3,358,776				3,407,432
Intangible Assets, net of Accumulated Amortization of  $11,477,319 and $11,153,855, respectively			5,791,670				6,115,134
Other Assets			6,850,563				7,145,251
TOTAL ASSETS		$	972,369,877			$	915,991,942
LIABILITIES AND SHAREHOLDERS’ EQUITY
Liabilities:
Mortgage Notes Payable		$	400,720,157			$	373,991,174
Loans Payable			99,979,502				85,041,386
Accounts Payable and Accrued Expenses			2,389,392				3,113,274
Other Liabilities			10,893,930				7,835,468
Total Liabilities			513,982,981				469,981,302
COMMITMENTS AND CONTINGENCIES
Shareholders’ Equity:
Series A – 7.625% Cumulative Redeemable Preferred Stock,  $0.01 Par Value Per Share: 2,139,750 Shares Authorized, Issued and Outstanding as of December 31, 2015  and September 30, 2015			53,493,750				53,493,750
Series B – 7.875% Cumulative Redeemable Preferred Stock, $0.01 Par Value Per Share: 2,300,000 Shares Authorized,  Issued and Outstanding as of December 31, 2015 and September 30, 2015			57,500,000				57,500,000
Common Stock – $0.01 Par Value Per Share: 200,000,000 Shares Authorized as of December 31, 2015 and September 30, 2015;  63,790,755 and 62,123,454 Shares Issued and Outstanding as of  December 31, 2015 and September 30, 2015			637,908				621,235
Excess Stock – $0.01 Par Value Per Share: 200,000,000 Shares Authorized as of December 31, 2015 and September 30, 2015;  No Shares Issued or Outstanding as of December 31, 2015 and September 30, 2015			-0-				-0-
Additional Paid-In Capital			350,415,079				339,837,258
Accumulated Other Comprehensive (Loss) Income			(3,659,841	)			(5,441,603	)
Undistributed Income			-0-				-0-
Total Shareholders’ Equity			458,386,896				446,010,640
TOTAL LIABILITIES & SHAREHOLDERS’ EQUITY		$	972,369,877			$	915,991,942

  

 

Table of Content 

 

Consolidated Statements of Income

(unaudited)

 

		Three Months Ended
		12/31/15				12/31/14
INCOME:
Rental Revenue		$	19,064,919			$	15,430,215
Reimbursement Revenue			3,194,443				2,247,315
Lease Termination Income			-0-				238,625
TOTAL INCOME			22,259,362				17,916,155
EXPENSES:
Real Estate Taxes			2,372,136				1,988,743
Operating Expenses			1,231,365				1,002,248
General & Administrative Expenses			1,335,964				1,240,585
Acquisition Costs			145,585				391,569
Depreciation			5,595,432				4,484,268
Amortization of Capitalized Lease Costs and Intangible Assets			486,611				475,495
TOTAL EXPENSES			11,167,093				9,582,908
OTHER INCOME (EXPENSE):
Interest and Dividend Income			1,184,653				1,035,457
Gain on Sale of Securities Transactions, net			8,380				377,087
Interest Expense			(5,112,280	)			(4,129,565	)
Amortization of Financing Costs			(234,367	)			(192,574	)
TOTAL OTHER INCOME (EXPENSE)			(4,153,614	)			(2,909,595	)
NET INCOME			6,938,655				5,423,652
Less: Preferred Dividends			2,151,758				2,151,758
NET INCOME ATTRIBUTABLE TO COMMON SHAREHOLDERS		$	4,786,897			$	3,271,894

 

 

Table of Content

 

NOI, EBITDA, FFO, Core FFO and AFFO Reconciliations

(unaudited)

 

		Three Months Ended
		12/31/15				12/31/14
Revenues
Rental Revenue		$	19,064,919			$	15,430,215
Reimbursement Revenue			3,194,443				2,247,315
Total Rental and Reimbursement Revenue			22,259,362				17,677,530
Expenses
Real Estate Taxes			2,372,136				1,988,743
Operating Expenses			1,231,365				1,002,248
Total Expenses			3,603,501				2,990,991
Net Operating Income – NOI			18,655,861				14,686,539
Lease Termination Income			-0-				238,625
Interest and Dividend Income			1,184,653				1,035,457
Net Amortization of Acquired Above and Below Market Lease Revenue			25,492				10,650
General & Administrative Expenses			(1,335,964	)			(1,240,585	)
EBITDA			18,530,042				14,730,686
Interest Expense			(5,112,280	)			(4,129,565	)
Gain on Sale of Securities Transactions, net			8,380				377,087
Acquisition Costs			(145,585	)			(391,569	)
Preferred Dividend			(2,151,758	)			(2,151,758	)
Depreciation of Corporate Office Tenant Improvements			(27,971	)			-0-
Amortization of Financing Costs			(234,367	)			(192,574	)
Funds From Operations - FFO			10,866,461				8,242,307
Depreciation (excluding corporate office)			(5,567,461	)			(4,484,268	)
Amortization of Capitalized Lease Costs and Intangible Assets			(512,103	)			(486,145	)
Net Income Attributable to Common Shareholders			4,786,897				3,271,894
Funds From Operations - FFO			10,866,461				8,242,307
Acquisition Costs			145,585				391,569
Core Funds From Operations - Core FFO			11,012,046				8,633,876
Lease Termination Income			-0-				(238,625	)
Gain on Sale of Securities Transactions, net			(8,380	)			(377,087	)
Stock Compensation Expense			104,961				90,232
Depreciation of Corporate Office Tenant Improvements			27,971				-0-
Amortization of Financing Costs			234,367				192,574
U.S. GAAP Straight-line Rent Adjustment			(309,665	)			(331,979	)
Recurring Capital Expenditures			(336,191	)			(173,500	)
Adjusted Funds From Operations - AFFO			10,725,109				7,795,491
EBITDA			18,530,042				14,730,686
Lease Termination Income			-0-				(238,625	)
Interest Expense			(5,112,280	)			(4,129,565	)
Preferred Dividend			(2,151,758	)			(2,151,758	)
Stock Compensation Expense			104,961				90,232
U.S. GAAP Straight-line Rent Adjustment			(309,665	)			(331,979	)
Recurring Capital Expenditures			(336,191	)			(173,500	)
Adjusted Funds From Operations - AFFO		$	10,725,109			$	7,795,491

 

 

Table of Content 

 

Financial Highlights

(unaudited)

 

		Three Months Ended
		12/31/15				12/31/14
Weighted Average Common Shares Outstanding
Basic			62,866,898				57,289,411
Diluted			62,948,800				57,445,812
Net Operating Income - NOI		$	18,655,861			$	14,686,539
Basic		$	0.30			$	0.26
Diluted			0.30				0.26
Net Income Attributable to Common Shareholders		$	4,786,897			$	3,271,894
Basic		$	0.08			$	0.06
Diluted			0.08				0.06
Funds From Operations - FFO		$	10,866,461			$	8,242,307
Basic		$	0.17			$	0.14
Diluted			0.17				0.14
Core Funds From Operations - Core FFO		$	11,012,046			$	8,633,876
Basic		$	0.18			$	0.15
Diluted			0.17				0.15
Core FFO Excluding Gains on Securities Transactions and Excluding Lease Termination Income, net		$	11,003,666			$	8,018,164
Basic		$	0.18			$	0.14
Diluted			0.17				0.14
Adjusted Funds From Operations - AFFO		$	10,725,109			$	7,795,491
Basic		$	0.17			$	0.14
Diluted			0.17				0.14
Dividends Declared per Common Share		$	0.16			$	0.15

 

 

Table of Content 

 

Same Property Statistics

 

		Three Months Ended																		Change
		12/31/2015										12/31/2014					Change			%
Total Square Feet / Total Properties			14,424,995		/	93							12,422,838		/	87		2,002,157			16.1	%
Occupancy Percentage at Quarter End			98.8	%									96.3	%				250 bps			2.6	%
Same Property Square Feet / Number of Same Properties								10,481,284	/	77
Same Property Occupancy Percentage at Quarter End			98.3	%									96.9	%				140 bps			1.4	%
Same Property Net Operating Income (NOI) (GAAP)		$	13,594,372									$	13,079,826				$	514,546			3.9	%
Reversal of U.S. GAAP Straight-Line Rent Adjustment			(138,704	)									(325,877	)				187,173
Same Property Cash NOI (CASH)		$	13,455,668									$	12,753,949				$	701,719			5.5	%

 

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

 

The 3.9% increase, amounting to $514,546 in Same Property NOI, consists of 69.5% or $357,657 generated by increased NOI from occupied properties and the remaining 30.5% or $156,889 attributable to increased NOI from filling previously vacant properties.

 

The 5.5% increase, amounting to $701,719 in Same Property Cash NOI, consists of 77.8% or $546,170 generated by increased NOI from occupied properties and the remaining 22.2% or $155,549 attributable to increased NOI from filling previously vacant properties.

 

Reconciliation of Same Property NOI to Total NOI

 

		Three Months Ended																		Change
		12/31/2015										12/31/2014					Change			%
Same Property NOI (GAAP)		$	13,594,372									$	13,079,826				$	514,546			3.9	%
NOI of properties purchased subsequent to October 1, 2014 (twelve properties for fiscal 2015 and five properties for fiscal 2014)			3,968,181										754,736
NOI of properties expanded subsequent to October 1, 2014 (four properties for fiscal 2015 and 2014)			1,093,308										734,549
NOI of property sold subsequent to October 1, 2014 (one property for fiscal 2014)			-0-										117,428
Total NOI		$	18,655,861									$	14,686,539				$	3,969,322			27.0	%

 

 

Table of Content  

 

Consolidated Statements of Cash Flows

(unaudited)

 

		Three Months Ended
		12/31/15				12/31/14
CASH FLOWS FROM OPERATING ACTIVITIES
Net Income		$	6,938,655			$	5,423,652
Noncash Items Included in Net Income:
Depreciation & Amortization			6,316,410				5,152,337
Stock Based Compensation Expense			104,961				90,232
Gain on Sale of Securities Transactions, net			(8,380	)			(377,087	)
Changes In:
Tenant, Deferred Rent and Other Receivables			(898,233	)			(1,521,764	)
Prepaid Expenses			(2,594,298	)			(1,305,317	)
Other Assets and Capitalized Lease Costs			(203,940	)			(257,867	)
Accounts Payable, Accrued Expenses and Other Liabilities			1,981,853				1,161,136
NET CASH PROVIDED BY OPERATING ACTIVITIES			11,637,028				8,365,322
CASH FLOWS FROM INVESTING ACTIVITIES
Purchase of Real Estate and Intangible Assets			(50,385,897	)			(68,338,125	)
Capital and Land Site Improvements			(860,167	)			(2,224,333	)
Return of Deposits on Real Estate			900,000				1,300,000
Deposits Paid on Acquisitions of Real Estate			(550,000	)			(1,325,000	)
Proceeds from Sale of Securities Available for Sale			1,790,403				9,584,334
Purchase of Securities Available for Sale			(6,491,654	)			(1,089,914	)
NET CASH USED IN INVESTING ACTIVITIES			(55,597,315	)			(62,093,038	)
CASH FLOWS FROM FINANCING ACTIVITIES
Net Proceeds from Loans Payable			14,938,116				14,990,477
Proceeds from Mortgage Notes Payable			33,670,000				44,486,828
Principal Payments on Mortgage Notes Payable			(6,941,017	)			(7,824,424	)
Financing Costs Paid on Debt			(404,674	)			(648,369	)
Proceeds from the Exercise of Stock Options			924,300				79,091
Proceeds from Issuance of Common Stock in the DRIP, net of Dividend Reinvestments			12,575,537				6,246,427
Preferred Dividends Paid			(2,151,758	)			(2,151,758	)
Common Dividends Paid, net of Reinvestments			(7,797,202	)			(6,624,599	)
NET CASH PROVIDED BY FINANCING ACTIVITIES			44,813,302				48,553,673
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS			853,015				(5,174,043	)
CASH AND CASH EQUIVALENTS - BEGINNING OF PERIOD			12,073,909				20,474,661
CASH AND CASH EQUIVALENTS - END OF PERIOD		$	12,926,924			$	15,300,618

 

 

Table of Content 

 

Capital Structure and Leverage Ratios

(unaudited)

 

		As of				As of				As of
		12/31/15				12/31/14				9/30/15
Mortgage Notes Payable		$	400,720,157			$	324,458,410			$	373,991,174
Loans Payable			99,979,502				40,190,477				85,041,386
Total Debt			500,699,659				364,648,887				459,032,560
Series A - 7.625% Cumul. Redeemable Preferred			53,493,750				53,493,750				53,493,750
Series B - 7.875% Cumul. Redeemable Preferred			57,500,000				57,500,000				57,500,000
Total Preferred Stock			110,993,750				110,993,750				110,993,750
Common Stock, Paid-In-Capital & Other			347,393,146				313,037,296				335,016,890
Total Shareholders’ Equity			458,386,896				424,031,046				446,010,640
Total Book Capitalization			959,086,555				788,679,933				905,043,200
Accumulated Depreciation			130,573,643				111,488,453				124,978,211
Total Undepreciated Book Capitalization		$	1,089,660,198			$	900,168,386			$	1,030,021,411
Shares Outstanding			63,790,755				57,809,349				62,123,454
Market Price Per Share		$	10.46			$	11.07			$	9.75
Equity Market Capitalization		$	667,251,297			$	639,949,493			$	605,703,677
Total Debt			500,699,659				364,648,887				459,032,560
Preferred			110,993,750				110,993,750				110,993,750
Total Market Capitalization		$	1,278,944,706			$	1,115,592,130			$	1,175,729,987
Total Debt		$	500,699,659			$	364,648,887			$	459,032,560
less: Cash and Cash Equivalents			12,926,924				15,300,618				12,073,909
Net Debt		$	487,772,735			$	349,348,269			$	446,958,651
less: Securities Available for Sale at Fair Value (Securities)			61,032,630				51,530,990				54,541,237
Net Debt Less Securities		$	426,740,105			$	297,817,279			$	392,417,414
Net Debt / Undepreciated Book Capitalization			44.8%				38.8%				43.4%
Net Debt / Total Market Capitalization			38.1%				31.3%				38.0%
Net Debt Plus Preferred / Total Market Capitalization			46.8%				41.3%				47.5%
Net Debt Less Securities / Undepreciated Book Capitalization			39.2%				33.1%				38.1%
Net Debt Less Securities / Total Market Capitalization			33.4%				26.7%				33.4%
Net Debt Less Securities Plus Preferred / Total Market Capitalization			42.0%				36.6%				42.8%
Weighted Average Interest Rate on Fixed Rate Debt			4.77%				5.16%				4.85%

 

 

Table of Content 

 

Capital Structure and Leverage Ratios continued

(unaudited)

 

										Fiscal Year
		Three Months Ended								Ended
		12/31/15				12/31/14				9/30/15
Net Income		$	6,938,655			$	5,423,652			$	25,605,815
plus: Depreciation & Amortization			6,316,410				5,152,337				23,058,744
plus: Interest Expense			5,112,280				4,129,565				18,558,150
plus: Acquisition Costs			145,585				391,569				1,546,088
plus: Net Amortization of Acquired Above and Below Market Lease Revenue			25,492				10,650				59,750
less: Gain on Sale of Securities Transactions, net			(8,380	)			(377,087	)			(805,513	)
less: Gain on Sale of Real Estate Investment			-0-				-0-				(5,021,242	)
EBITDA		$	18,530,042			$	14,730,686			$	63,001,792
Interest Expense		$	5,112,280			$	4,129,565				18,558,150
Preferred Dividends Paid			2,151,758				2,151,758				8,607,032
Total Fixed Charges		$	7,264,038			$	6,281,323			$	27,165,182
Interest Coverage			3.6 x				3.6 x				3.4 x
Fixed Charge Coverage			2.6 x				2.3 x				2.3 x
Net Debt		$	487,772,735			$	349,348,269			$	446,958,651
Net Debt Less Securities			426,740,105				297,817,279				392,417,414
Annualized EBITDA			74,120,168				58,922,744				63,001,792
Net Debt / EBITDA			6.6 x				5.9 x				7.1 x
Net Debt Less Securities / EBITDA			5.8 x				5.1 x				6.2 x
Net Debt Plus Preferred / EBITDA			8.1 x				7.8 x				8.9 x
Net Debt Less Securities Plus Preferred / EBITDA			7.3 x				6.9 x				8.0 x

 

 

Table of Content  

 

Debt Maturity

(unaudited)

 

 

						Loans								% of
Fiscal Year Ended		Mortgages				Payable				Total				Total
2016			35,711,184				188,848				35,900,032				7.2	%
2017			51,964,834				4,790,654				56,755,488				11.3	%
2018			42,629,324				-0-				42,629,324				8.5	%
2019			37,763,177				95,000,000				132,763,177				26.5	%
2020			22,602,134				-0-				22,602,134				4.5	%
Thereafter			210,049,504				-0-				210,049,504				42.0	%
Total as of 12/31/15		$	400,720,157			$	99,979,502			$	500,699,659				100.0	%
Weighted Average Interest Rate			4.76	%			2.32	%			4.28	%
Weighted Average Term			9.33 yrs				3.59 yrs				8.18 yrs

 

 

Table of Content 

 

Property Table by Tenant

(unaudited)

 

						Property				Square				Occupied Square				% of Occupied				Annual				% of Total Ann.				Rent Per Sq. Ft.				Undepreciated				Mortgage
Tenant						Count				Footage				Footage				Sq. Ft.				Rent				Rent				Occup.				Cost				Balance
FedEx Ground Package System, Inc.							34				5,084,939				5,084,939				35.3	%		$	36,347,000				46.2	%		$	7.15			$	461,885,771			$	198,065,189
FedEx Corporation							14				973,413				973,413				6.7	%			5,407,000				6.9	%			5.55				71,676,530				16,840,472
FedEx Supply Chain Services, Inc.							1				449,900				449,900				3.1	%			1,327,000				1.7	%			2.95				14,620,887				7,234,083
Total FedEx							49				6,508,252				6,508,252				45.1	%			43,081,000				54.8	%			6.62				548,183,188				222,139,744
ULTA, Inc.							1				671,354				671,354				4.7	%			2,651,000				3.4	%			3.95				37,484,574				23,684,852
Milwaukee Electric Tool Corporation							1				615,305				615,305				4.3	%			2,012,000				2.6	%			3.27				27,502,797				14,028,067
Jim Beam Brands Company							1				599,840				599,840				4.2	%			2,013,000				2.6	%			3.36				28,000,000				18,899,961
Ralcorp Holdings, Inc.							1				558,600				558,600				3.9	%			2,166,000				2.8	%			3.88				26,719,716				17,186,682
CBOCS Distribution, Inc.							1				381,240				381,240				2.6	%			1,420,000				1.8	%			3.72				14,215,126				7,808,227
Best Buy Warehousing Logistics, Inc.							1				368,060				368,060				2.6	%			1,641,000				2.1	%			4.46				19,600,000				10,843,880
The Coca-Cola Company/Western Container Corp.							2				323,358				323,358				2.2	%			1,619,000				2.1	%			5.01				18,848,429				7,395,713
Science Applications International							1				302,400				302,400				2.1	%			1,462,000				1.9	%			4.83				13,340,592				5,858,316
International Paper Company							1				280,000				280,000				1.9	%			1,326,000				1.7	%			4.74				18,294,108				11,169,757
Woodstream Corporation			(C)				1				256,000				256,000				1.8	%			896,000				1.1	%			3.50				8,823,781				112,773
United Technologies Corporation							2				244,317				244,317				1.7	%			1,891,000				2.4	%			7.74				22,505,069				8,475,011
Anda Pharmaceuticals, Inc.							1				234,660				234,660				1.6	%			1,196,000				1.5	%			5.10				14,550,000				9,166,694
UGN, Inc.							1				232,200				232,200				1.6	%			1,050,000				1.3	%			4.52				12,937,000				8,408,634
Caterpillar Logistics Services, Inc.							1				218,120				218,120				1.5	%			1,169,000				1.5	%			5.36				14,868,857				6,916,699
Anheuser-Busch, Inc.							1				184,800				184,800				1.3	%			806,000				1.0	%			4.36				12,386,675				912,940
Carlisle Tire & Wheel Company							1				179,280				179,280				1.2	%			787,000				1.0	%			4.39				7,225,401				773,697
NF&M International Inc.			(B)				1				174,802				174,802				1.2	%			832,000				1.1	%			4.76				3,958,293				-0-
Home Depot USA, Inc.							1				171,200				171,200				1.2	%			978,000				1.2	%			5.71				11,298,367				-0-
Kellogg Sales Company							3				170,279				170,279				1.2	%			982,000				1.2	%			5.77				12,116,973				2,347,654
Bunzl Distribution Midcentral, Inc.							1				158,417				158,417				1.1	%			741,000				0.9	%			4.68				9,600,000				7,070,233
Victory Packaging, L.P.							1				148,000				148,000				1.0	%			470,000				0.6	%			3.18				5,418,245				-0-
Altec Industries, Inc.			(C)				1				126,880				126,880				0.9	%			349,000				0.4	%			2.75				4,373,287				55,893
The American Bottling Company							2				110,080				110,080				0.8	%			734,000				0.9	%			6.67				10,498,031				2,021,796
Pittsburgh Glass Works LLC.							1				102,135				102,135				0.7	%			427,000				0.5	%			4.18				4,245,913				-0-
Holland 1916 Inc.							1				95,898				95,898				0.7	%			341,000				0.4	%			3.56				7,378,719				-0-
National Oilwell Varco, Inc.							1				91,295				91,295				0.6	%			746,000				0.9	%			8.17				8,083,107				3,432,694
Joseph T. Ryerson and Son, Inc.							1				89,052				89,052				0.6	%			506,000				0.6	%			5.68				6,928,956				724,139
CHEP USA, Inc.							1				83,000				83,000				0.6	%			494,000				0.6	%			5.95				7,405,447				2,745,119
Datatel Resources Corporation			(B)				1				80,856				80,856				0.6	%			242,000				0.3	%			2.99				3,810,675				-0-
Sherwin-Williams Company							2				78,887				78,887				0.5	%			637,000				0.8	%			8.07				7,244,128				-0-
RGH Enterprises, Inc.							1				75,000				75,000				0.5	%			596,000				0.8	%			7.95				5,525,600				3,861,492
Tampa Bay Grand Prix							1				68,385				68,385				0.5	%			289,000				0.4	%			4.23				5,656,542				-0-
Various Tenants at Retail Shopping Center							1				64,138				53,820				0.4	%			565,000				0.7	%			10.50				2,827,312				-0-
SOFIVE, Inc.							1				60,400				60,400				0.4	%			537,000				0.7	%			8.89				4,889,712				2,009,119
Siemens Real Estate							1				51,130				51,130				0.4	%			473,000				0.6	%			9.25				4,452,425				2,670,371
B/E Aerospace, Inc.							1				38,833				38,833				0.2	%			360,000				0.5	%			9.27				5,100,000				-0-
Keystone Automotive Industries MN, Inc.							1				36,270				36,270				0.2	%			140,000				0.2	%			3.86				2,161,895				-0-
Graybar Electric Company							1				26,340				26,340				0.2	%			109,000				0.1	%			4.14				1,850,794				-0-
Tenant Total as of 12/31/15							91				14,259,063				14,248,745				98.8	%		$	78,734,000				100.0	%		$	5.53			$	980,309,734			$	400,720,157
Vacant							2				165,932				-0-				0.0	%			-0-				0.0	%			-0-				12,237,549				-0-
Total as of 12/31/15							93				14,424,995				14,248,745				98.8	%		$	78,734,000				100.0	%		$	5.53			(A)$	992,547,283			$	400,720,157
Leasing Activity Subsequent to 12/31/15
Style Crest, Inc.			(D)				na				na				106,507				0.7	%			361,000				0.5	%			3.39				na				na
Pro Forma Total							93				14,424,995				14,355,252				99.5	%		$	79,095,000				100.0	%		$	5.51			(A)$	992,547,283			$	400,720,157

 

(A) Does not include $839,471 of vacant land and corporate office leasehold improvements not associated with a specific tenant.

 

(B) NF&M International and Datatel Resources are located at one property and therefore are counted as one property in the Property Count total.

 

(C) Woodstream Corporation and Altec Industries, Inc. are located at one property and therefore are counted as one property in the Property Count total.

 

(D) Entered into a 5.25 year lease agreement through March 31, 2021. The lease commenced on January 1, 2016 and is with Style Crest, Inc. Initial annual rent of $356,798, representing $3.35 per square foot, will commence on April 1, 2016 with 3.0% annual increases thereafter.

 

 

Table of Content 

 

Property Table by State

(unaudited)

 

			Property				Square				Occupied Square				% of Total				Annual				% of Total Ann.				Rent Per Sq. Ft.				Undepreciated				Mortgage
State			Count				Footage				Footage				Sq. Ft.				Rent				Rent				Occup.				Cost				Balance
Texas				9				1,379,468				1,379,468				9.6	%		$	10,474,000				13.3	%			7.59			$	127,441,095			$	61,010,435
Kentucky				2				1,158,440				1,158,440				8.0	%			4,179,000				5.3	%			3.61				54,719,716				36,086,643
Florida				10				1,137,293				1,137,293				7.9	%			7,565,000				9.6	%			6.65				102,305,646				43,976,788
Ohio				7				1,032,469				1,032,469				7.2	%			6,071,000				7.7	%			5.88				72,719,594				30,322,708
Indiana				2				999,176				999,176				6.9	%			4,184,000				5.3	%			4.19				61,430,574				36,631,959
Illinois				9				958,045				958,045				6.6	%			6,224,000				7.9	%			6.50				81,663,417				15,075,635
Mississippi				4				912,305				912,305				6.3	%			3,437,000				4.4	%			3.77				45,804,282				23,194,761
Tennessee				3				891,777				891,777				6.2	%			3,058,000				3.9	%			3.43				33,818,647				16,762,245
Missouri				5				804,397				804,397				5.6	%			3,079,000				3.9	%			3.83				39,179,174				9,586,553
North Carolina				3				585,224				478,717				4.1	%			2,548,000				3.2	%			5.32				44,474,565				20,780,000
South Carolina				3				571,115				571,115				4.0	%			3,552,000				4.5	%			6.22				36,368,552				9,466,677
Kansas				3				499,280				499,280				3.5	%			2,445,000				3.1	%			4.90				29,199,352				13,478,796
Michigan				3				489,571				489,571				3.4	%			3,472,000				4.4	%			7.09				41,248,198				16,899,462
Virginia				5				407,265				407,265				2.8	%			2,434,000				3.1	%			5.98				34,449,924				8,395,909
Pennsylvania				2				378,180				378,180				2.6	%			1,725,000				2.2	%			4.56				16,758,968				4,288,230
Georgia				3				307,662				307,662				2.1	%			1,743,000				2.2	%			5.67				22,148,187				7,842,018
Arizona				1				283,358				283,358				2.0	%			1,287,000				1.6	%			4.54				15,168,586				5,860,371
Wisconsin				2				238,666				238,666				1.7	%			1,369,000				1.7	%			5.74				15,943,672				3,480,418
New York				3				230,381				230,381				1.6	%			1,890,000				2.4	%			8.20				20,382,098				4,428,563
Oklahoma				2				204,580				204,580				1.4	%			1,305,000				1.7	%			6.38				16,342,450				6,771,761
Louisiana				1				175,315				175,315				1.2	%			1,258,000				1.6	%			7.18				18,410,000				12,890,000
Maryland				1				144,523				144,523				1.0	%			1,426,000				1.8	%			9.87				14,467,755				4,932,003
Colorado				2				138,235				138,235				1.0	%			1,208,000				1.5	%			8.74				13,549,166				2,816,595
New Jersey				2				124,538				114,220				0.9	%			1,102,000				1.4	%			9.65				7,717,024				2,009,119
Minnesota				2				119,823				60,398				0.8	%			372,000				0.5	%			6.16				10,377,126				2,789,293
Nebraska				1				89,115				89,115				0.6	%			446,000				0.6	%			5.00				5,937,281				-0-
Alabama				1				73,712				73,712				0.4	%			412,000				0.5	%			5.59				4,896,515				943,215
Connecticut				1				54,812				54,812				0.3	%			329,000				0.3	%			6.00				3,463,824				-0-
Iowa				1				36,270				36,270				0.3	%			140,000				0.2	%			3.86				2,161,895				-0-
Total as of 12/31/15				93				14,424,995				14,248,745				100.0	%		$	78,734,000				100.0	%		$	5.53			(A)$	992,547,283			$	400,720,157
Leasing Activity Subsequent to 12/31/15
North Carolina		(B)		na				na				106,507				0.7	%			361,000				0.5	%			3.39				na				na
Pro Forma Total				93				14,424,995				14,355,252				100.0	%		$	79,095,000				100.0	%		$	5.51			(A)$	992,547,283			$	400,720,157

 

	(A)	Does not include $839,471 of vacant land and corporate office leasehold improvements not associated with a specific tenant.
	(B)	Included in leasing activity subsequent to 12/31/15 is one property located in North Carolina that the Company has recently entered into a 5.25 year lease agreement that commenced on January 1, 2016.

 

 

Table of Content 

 

Lease Expirations

(unaudited)

 

						Property				Square				% of Total Sq.				Annual				% of Total Ann.				Rent Per Sq. Ft.				Lease Exp. Term in				Undepreciated				Mortgage
Fiscal Year						Count				Footage				Ft.				Rent				Rent				Occup.				Years				Cost				Balance
2016							1				60,000				0.4	%		$	315,000				0.4	%			5.25				0.4			$	4,760,769			$	-0-
2017			(B)				13				1,539,526				10.7	%			8,798,000				11.2	%			5.71				1.4				105,340,743				23,107,214
2018			(B)				15				1,324,159				9.2	%			7,760,000				9.9	%			5.86				2.4				91,591,276				22,177,890
2019							8				1,310,849				9.1	%			6,772,000				8.6	%			5.17				3.4				76,577,961				26,433,087
2020							2				239,585				1.7	%			1,267,000				1.6	%			5.29				4.6				16,954,909				-0-
2021							6				578,185				4.0	%			2,974,000				3.8	%			5.14				5.5				35,501,603				8,605,575
2022							8				1,212,032				8.4	%			6,751,000				8.6	%			5.57				6.3				80,496,828				37,090,675
2023							11				1,917,312				13.3	%			10,031,000				12.7	%			5.23				7.5				127,487,552				56,149,319
2024							12				1,914,366				13.3	%			12,069,000				15.3	%			6.30				8.4				148,852,778				57,075,815
2025			(B)				9				2,404,478				16.7	%			11,989,000				15.2	%			4.99				9.5				157,264,501				90,757,426
2027							1				38,833				0.3	%			360,000				0.5	%			9.27				11.5				5,100,000				-0-
2029							2				262,613				1.8	%			1,513,000				1.9	%			5.76				13.5				21,950,000				10,102,916
2030							3				834,387				5.6	%			5,404,000				6.8	%			6.48				14.2				78,883,786				52,033,558
2034							1				558,600				3.9	%			2,166,000				2.8	%			3.88				17.8				26,719,716				17,186,682
Various tenants at retail shopping center							1				64,138				0.4	%			565,000				0.7	%			10.50				-0-				2,827,312				-0-
Vacant							2				165,932				1.2	%			-0-				0.0	%			-0-				-0-				12,237,549				-0-
Total as of 12/31/15							93				14,424,995				100.0	%		$	78,734,000				100.0	%		$	5.53				7.1			(A)$	992,547,283			$	400,720,157
Leasing Activity Subsequent to 12/31/15
2021			(C)				na				na				0.7	%			361,000				0.5	%			3.39				5.3				na				na
Pro Forma Total							93				14,424,995				100.0	%		$	79,095,000				100.0	%		$	5.51				7.1			(A)$	992,547,283			$	400,720,157

 

	(A)	Does not include $839,471 of vacant land and corporate office leasehold improvements not associated with a specific tenant.
	(B)	Included in 2018 is Datatel Resources and included in 2025 is NF&M International which both occupy one property. Included in 2017 is Woodstream Corporation and included in 2018 is Altec Industries which both occupy one property.
	(C)	Included in leasing activity subsequent to 12/31/15 is one property located in North Carolina that the Company has recently entered into a 5.25 year lease agreement that commenced on January 1, 2016.

 

 

Table of Content 

 

Recent Acquisitions During Fiscal 2016

(unaudited)

 

No				Tenant		City (MSA)		State		Fiscal Year Acquisition		Square Footage				Annual Rent				Rent Per Sq. Ft. Occup.				Lease Expiration				Purchase Price				Initial Mortgage Balance
1				FedEx Ground Package System, Inc.		Concord (Charlotte)		NC		2016			330,717			$	2,078,000			$	6.28			7/31/2025				$	31,975,897			$	20,780,000
2				FedEx Ground Package System, Inc.		Covington (New Orleans)		LA		2016			175,315				1,258,000				7.18			6/30/2025					18,410,000				12,890,000
				As of 12/31/15									506,032			$	3,336,000			$	6.59							$	50,385,897			$	33,670,000

 

 

Table of Content 

 

Property Table

(unaudited)

 

										Fiscal Year						Square				Annual				Rent Per Sq. Ft.				Lease Exp. Term in		Undepreciated				Mortgage
No		Tenant				City (MSA)		State		Acquisition		Occup.				Footage				Rent				Occup.				Years		Cost				Balance
1		ULTA, Inc.				Greenwood (Indianapolis)		IN		2015			100.0	%			671,354			$	2,651,000			$	3.95			9.6		$	37,484,574			$	23,684,852
2		Milwaukee Electric Tool Corporation				Olive Branch (Memphis, TN)		MS		2013			100.0	%			615,305				2,012,000				3.27			7.3			27,502,797				14,028,067
3		Jim Beam Brands Company				Frankfort		KY		2015			100.0	%			599,840				2,013,000				3.36			9.1			28,000,000				18,899,961
4		Ralcorp Holdings, Inc.				Buckner (Louisville)		KY		2014			100.0	%			558,600				2,166,000				3.88			17.8			26,719,716				17,186,682
5		FedEx Supply Chain Services, Inc.				Memphis		TN		2010			100.0	%			449,900				1,327,000				2.95			3.4			14,620,887				7,234,083
6		Woodstream Corporation		(B)		St. Joseph		MO		2001			100.0	%			256,000				896,000				3.50			1.8			8,823,781				112,773
		Altec Industries, Inc.		(B)		St. Joseph		MO		2001			100.0	%			126,880				349,000				2.75			2.2			4,373,287				55,893
7		CBOCS Distribution, Inc.				Lebanon (Nashville)		TN		2011			100.0	%			381,240				1,420,000				3.72			8.5			14,215,126				7,808,227
8		Best Buy Warehousing Logistics, Inc.				Streetsboro (Cleveland)		OH		2012			100.0	%			368,060				1,641,000				4.46			6.1			19,600,000				10,843,880
9		FedEx Ground Package System, Inc.				Concord (Charlotte)		NC		2016			100.0	%			330,717				2,078,000				6.28			10.0			31,975,897				20,780,000
10		FedEx Ground Package System, Inc.				Indianapolis		IN		2014			100.0	%			327,822				1,533,000				4.68			8.3			23,946,000				12,947,107
11		FedEx Ground Package System, Inc.				Fort Worth (Dallas)		TX		2015			100.0	%			304,608				2,362,000				7.75			14.3			35,300,832				24,386,989
12		Science Applications International				Hanahan (Charleston)		SC		2005			100.0	%			302,400				1,462,000				4.83			3.3			13,340,592				5,858,316
13		FedEx Ground Package System, Inc.				Jacksonville		FL		2015			100.0	%			297,579				1,992,000				6.69			14.0			30,645,954				19,237,935
14		Western Container Corp.				Tolleson (Phoenix)		AZ		2003			100.0	%			283,358				1,287,000				4.54			1.3			15,168,586				5,860,371
15		International Paper Company				Edwardsville (Kansas City)		KS		2014			100.0	%			280,000				1,326,000				4.74			7.7			18,294,108				11,169,757
16		NF&M International		(C)		Monaca (Pittsburgh)		PA		1988			100.0	%			174,802				832,000				4.76			9.0			3,958,293				-0-
		Datatel Resources Corp.		(C)		Monaca (Pittsburgh)		PA		1988			100.0	%			80,856				242,000				2.99			1.9			3,810,675				-0-
17		FedEx Ground Package System, Inc.				Orion		MI		2007			100.0	%			245,633				1,908,000				7.77			7.5			22,885,636				8,969,702
18		Anda Pharmaceuticals, Inc.				Olive Branch (Memphis, TN)		MS		2012			100.0	%			234,660				1,196,000				5.10			6.6			14,550,000				9,166,694
19		UGN, Inc.				Monroe (Cincinnati)		OH		2015			100.0	%			232,200				1,050,000				4.52			14.2			12,937,000				8,408,634
20		Caterpillar Logistics Services, Inc.				Griffin (Atlanta)		GA		2006			100.0	%			218,120				1,169,000				5.36			0.9			14,868,857				6,916,699
21		FedEx Ground Package System, Inc.				Sauget (St. Louis, MO.)		IL		2015			100.0	%			198,773				1,036,000				5.21			13.4			15,200,000				10,102,916
22		Anheuser-Busch, Inc.				Granite City (St. Louis, MO)		IL		2001			100.0	%			184,800				806,000				4.36			5.9			12,386,675				912,940
23		United Technologies Corporation				Carrollton (Dallas)		TX		2010			100.0	%			184,317				1,576,000				8.55			3.0			17,744,300				8,475,011
24		FedEx Ground Package System, Inc.				Spring (Houston)		TX		2014			100.0	%			181,176				1,581,000				8.73			8.8			19,227,521				9,553,334
25		Carlisle Tire & Wheel Company				Edwardsville (Kansas City)		KS		2003			100.0	%			179,280				787,000				4.39			2.4			7,225,401				773,697
26		FedEx Ground Package System, Inc.				Ft. Mill (Charlotte, NC)		SC		2010			100.0	%			176,939				1,415,000				8.00			7.8			15,413,307				2,336,277
27		FedEx Ground Package System, Inc.				Covington (New Orleans)		LA		2016			100.0	%			175,315				1,258,000				7.18			9.6			18,410,000				12,890,000
28		FedEx Ground Package System, Inc.				Livonia (Detroit)		MI		2013			100.0	%			172,005				1,194,000				6.94			6.3			13,762,030				7,929,760
29		Home Depot USA, Inc.				Montgomery (Chicago)		IL		2004			100.0	%			171,200				978,000				5.71			4.5			11,298,367				-0-
30		FedEx Ground Package System, Inc.				Tampa		FL		2004			100.0	%			170,779				1,493,000				8.74			8.5			18,458,273				7,146,956
31		FedEx Ground Package System, Inc.				Lindale (Tyler)		TX		2015			100.0	%			163,378				725,000				4.44			8.5			9,930,000				6,638,978
32		Bunzl Distribution Midcentral, Inc.				Kansas City		MO		2015			100.0	%			158,417				741,000				4.68			5.8			9,600,000				7,070,233
33		FedEx Ground Package System, Inc.				Oklahoma City		OK		2012			100.0	%			158,340				1,048,000				6.62			9.5			12,594,419				4,749,965
34		FedEx Ground Package System, Inc.				Waco		TX		2012			100.0	%			150,710				1,078,000				7.15			9.7			12,546,159				4,998,410
35		Victory Packaging, L.P.				Fayetteville		NC		1997			100.0	%			148,000				470,000				3.18			5.2			5,418,245				-0-
36		FedEx Ground Package System, Inc.				Beltsville (Washington, DC)		MD		2001			100.0	%			144,523				1,426,000				9.87			2.6			14,467,755				4,932,003
37		FedEx Ground Package System, Inc.				El Paso		TX		2006			100.0	%			144,149				1,345,000				9.33			7.8			12,406,193				3,525,019
38		FedEx Ground Package System, Inc.				Cocoa		FL		2008			100.0	%			144,138				1,112,000				7.71			8.8			14,089,843				5,290,840
39		FedEx Ground Package System, Inc.				Cudahy (Milwaukee)		WI		2001			100.0	%			139,564				901,000				6.46			1.5			9,373,672				-0-
40		FedEx Ground Package System, Inc.				Richfield (Cleveland)		OH		2006			100.0	%			131,152				1,490,000				11.36			8.8			16,435,478				3,332,300
41		FedEx Ground Package System, Inc.				Wheeling (Chicago)		IL		2003			100.0	%			123,000				1,386,000				11.27			1.4			18,537,652				3,335,640
42		FedEx Ground Package System, Inc.				Altoona		PA		2014			100.0	%			122,522				651,000				5.31			7.7			8,990,000				4,288,230
43		FedEx Ground Package System, Inc.				Edinburg		TX		2011			100.0	%			113,582				598,000				5.26			5.7			7,438,483				-0-
44		FedEx Corporation				Mechanicsville (Richmond)		VA		2001			100.0	%			112,799				541,000				4.80			7.3			7,739,671				-0-
45		FedEx Corporation				Orlando		FL		2008			100.0	%			110,638				666,000				6.02			1.9			8,541,237				4,515,230
46		Vacant		(D)		Winston-Salem		NC		2002			0.0	%			106,507				-0-				na			na			7,080,423				-0-
47		FedEx Ground Package System, Inc.				Cheektowaga (Buffalo)		NY		2000			100.0	%			104,981				966,000				9.20			3.7			10,960,823				567,071
48		FedEx Ground Package System, Inc.				West Chester Twp (Cincinnati)		OH		1999			100.0	%			103,818				532,000				5.12			7.7			5,728,690				2,248,043
49		FedEx Ground Package System, Inc.				Roanoke		VA		2013			100.0	%			103,402				755,000				7.30			7.3			10,200,000				5,650,790
50		Pittsburgh Glass Works LLC.				O’ Fallon (St. Louis)		MO		1994			100.0	%			102,135				427,000				4.18			2.5			4,245,913				-0-
51		FedEx Ground Package System, Inc.				Green Bay		WI		2013			100.0	%			99,102				468,000				4.72			7.4			6,570,000				3,480,418
52		Holland 1916 Inc.				Liberty (Kansas City)		MO		1998			100.0	%			95,898				341,000				3.56			3.5			7,378,719				-0-
53		FedEx Corporation				Jacksonville		FL		1999			100.0	%			95,883				518,000				5.40			3.4			6,229,421				1,628,235
54		FedEx Corporation				Tampa		FL		2006			100.0	%			95,662				603,000				6.30			1.8			7,571,132				4,075,725
55		FedEx Ground Package System, Inc.				Hanahan (Charleston)		SC		2005			100.0	%			91,776				675,000				7.35			2.6			7,614,653				1,272,084
56		National Oilwell Varco, Inc.				Houston		TX		2010			100.0	%			91,295				746,000				8.17			6.8			8,083,107				3,432,694
57		FedEx Corporation				Omaha		NE		1999			100.0	%			89,115				446,000				5.00			7.8			5,937,281				-0-
58		Joseph T. Ryerson and Son, Inc.				Elgin (Chicago)		IL		2002			100.0	%			89,052				506,000				5.68			1.1			6,928,956				724,139

  

 

Table of Content 

 

Property Table

(unaudited)

 

										Fiscal Year							Square				Annual				Rent Per Sq. Ft.			Lease Exp. Term in			Undepreciated				Mortgage
No		Tenant				City (MSA)		State		Acquisition			Occup.				Footage				Rent				Occup.			Years			Cost				Balance
59		FedEx Ground Package System, Inc.				Ft. Myers		FL		2003			100.0	%			87,500				433,000				4.95			0.8			5,017,447				-0-
60		CHEP USA, Inc.				Roanoke		VA		2007			100.0	%			83,000				494,000				5.95			9.2			7,405,447				2,745,119
61		FedEx Corporation				Bedford Heights (Cleveland)		OH		2007			100.0	%			82,269				408,000				4.96			2.7			6,816,001				2,819,480
62		RGH Enterprises, Inc.				Halfmoon (Albany)		NY		2012			100.0	%			75,000				596,000				7.95			5.9			5,525,600				3,861,492
63		FedEx Ground Package System, Inc.				Huntsville		AL		2005			100.0	%			73,712				412,000				5.59			6.7			4,896,515				943,215
64		FedEx Corporation				Schaumburg (Chicago)		IL		1997			100.0	%			73,500				515,000				7.01			1.2			4,967,639				-0-
65		FedEx Corporation				Romulus (Detroit)		MI		1998			100.0	%			71,933				370,000				5.14			5.4			4,600,532				-0-
66		FedEx Ground Package System, Inc.				Denver		CO		2005			100.0	%			69,865				564,000				8.07			2.6			6,354,051				1,282,289
67		Tampa Bay Grand Prix				Tampa		FL		2005			100.0	%			68,385				289,000				4.23			4.8			5,656,542				-0-
68		FedEx Ground Package System, Inc.				Colorado Springs		CO		2006			100.0	%			68,370				644,000				9.42			2.8			7,195,115				1,534,306
69		Sherwin-Williams Company				Rockford		IL		2011			100.0	%			66,387				477,000				7.19			8.0			5,551,227				-0-
70		Kellogg Sales Company				Kansas City		MO		2007			100.0	%			65,067				325,000				4.99			2.6			4,757,474				2,347,654
71		Various Tenants at Retail Shopping Center				Somerset		NJ		1970			84.0	%			64,138				565,000				10.50			na			2,827,312				-0-
72		The American Bottling Company				Cincinnati		OH		2015			100.0	%			63,840				477,000				7.47			13.8			6,750,000				-0-
73		FedEx Corporation				Chattanooga		TN		2007			100.0	%			60,637				311,000				5.13			1.8			4,982,634				1,719,935
74		SOFIVE, Inc.				Carlstadt (New York, NY)		NJ		2001			100.0	%			60,400				537,000				8.89			9.1			4,889,712				2,009,119
75		FedEx Ground Package System, Inc.				Stewartville (Rochester)		MN		2013			100.0	%			60,398				372,000				6.16			7.4			5,220,000				2,789,293
76		United Technologies Corporation				Richmond		VA		2004			100.0	%			60,000				315,000				5.25			0.4			4,760,769				-0-
77		Vacant				White Bear Lake (Minneapolis/St. Paul)		MN		2001			0.0	%			59,425				-0-				na			na			5,157,126				-0-
78		FedEx Ground Package System, Inc.				Augusta		GA		2005			100.0	%			59,358				453,000				7.63			2.5			5,328,873				925,319
79		Kellogg Sales Company				Newington (Hartford)		CT		2001			100.0	%			54,812				329,000				6.00			1.2			3,463,824				-0-
80		Siemens Real Estate				Lebanon (Cincinnati)		OH		2012			100.0	%			51,130				473,000				9.25			3.3			4,452,425				2,670,371
81		Kellogg Sales Company				Orangeburg (New York)		NY		1993			100.0	%			50,400				328,000				6.51			2.2			3,895,675				-0-
82		FedEx Corporation				Charlottesville		VA		1999			100.0	%			48,064				329,000				6.85			1.7			4,344,037				-0-
83		FedEx Ground Package System, Inc.				Corpus Christi		TX		2012			100.0	%			46,253				463,000				10.01			5.7			4,764,500				-0-
84		The American Bottling Company				Tulsa		OK		2014			100.0	%			46,240				257,000				5.56			8.2			3,748,031				2,021,796
85		The Coca-Cola Company				Topeka		KS		2009			100.0	%			40,000				332,000				8.30			5.8			3,679,843				1,535,342
86		B/E Aerospace, Inc.				Rockford		IL		2015			100.0	%			38,833				360,000				9.27			11.5			5,100,000				-0-
87		Keystone Automotive Industries MN, Inc.				Urbandale (Des Moines)		IA		1994			100.0	%			36,270				140,000				3.86			1.2			2,161,895				-0-
88		FedEx Corporation				Richland (Jackson)		MS		1994			100.0	%			36,000				120,000				3.33			8.3			1,900,691				-0-
89		FedEx Corporation				Punta Gorda		FL		2007			100.0	%			34,624				304,000				8.78			1.5			4,113,265				2,081,867
90		FedEx Corporation				Lakeland		FL		2006			100.0	%			32,105				155,000				4.83			1.9			1,982,532				-0-
91		FedEx Corporation				Augusta		GA		2006			100.0	%			30,184				121,000				4.01			6.9			1,950,457				-0-
92		Graybar Electric Company				Ridgeland (Jackson)		MS		1993			100.0	%			26,340				109,000				4.14			3.6			1,850,794				-0-
93		Sherwin-Williams Company				Burr Ridge (Chicago)		IL		1997			100.0	%			12,500				160,000				12.80			5.8			1,692,901				-0-
		Total as of 12/31/15											98.8	%			14,424,995			$	78,734,000			$	5.53			7.1		(A)$	992,547,283			$	400,720,157
		Leasing Activity Subsequent to 12/31/15
		Style Crest, Inc.		(D)		Winston-Salem		NC		2002			100.0	%			na				361,000				3.39			5.3			na				na
		Pro Forma Total											99.5	%			14,424,995			$	79,095,000			$	5.51			7.1		(A)$	992,547,283			$	400,720,157

 

	(A)	Does not include $839,471 of vacant land and corporate office leasehold improvements not associated with a specific tenant.
	(B)	Both tenants occupy one property.
	(C)	Both tenants occupy one property.
	(D)	Entered into a 5.25 year lease agreement through March 31, 2021. The lease commenced on January 1, 2016 and is with Style Crest, Inc. Initial annual rent of $356,798, representing $3.35 per square foot, will commence on April 1, 2016 with 3.0% annual increases thereafter.

 

 

Table of Content 

 

 

 

Definitions

 

Investors and analysts following the real estate industry utilize funds from operations (“FFO”), core funds from operations (“Core FFO”), net operating income (“NOI”), Same Property NOI, Same Property cash NOI, earnings before interest, taxes, depreciation and amortization (“EBITDA”) and adjusted funds from operations (“AFFO”), variously defined, as supplemental performance measures. While the Company believes net income available to common stockholders, as defined by accounting principles generally accepted in the United States of America (U.S. GAAP), is the most appropriate measure, it considers NOI, Same Property NOI, Same Property Cash NOI, EBITDA, FFO, Core FFO and AFFO, given their wide use by and relevance to investors and analysts, appropriate supplemental performance measures. FFO, reflecting the assumption that real estate asset values rise or fall with market conditions, principally adjusts for the effects of U.S. GAAP depreciation and amortization of real estate assets. Core FFO reflects the same assumptions as FFO except that is also adjusts for the effects of acquisitions costs. NOI provides a measure of rental operations, and does not factor in depreciation and amortization and non-property specific expenses such as general and administrative expenses. EBITDA provides a tool to further evaluate the ability to incur and service debt and to fund dividends and other cash needs. AFFO provides a tool to further evaluate the ability to fund dividends. In addition, NOI, Same Property NOI, Same Property Cash NOI, EBITDA, FFO, Core FFO and AFFO are commonly used in various ratios, pricing multiples, yields and returns and valuation of calculations used to measure financial position, performance and value.

 

As used herein, the Company calculates FFO, as defined by The National Association of Real Estate Investment Trusts (NAREIT), to be equal to net income (loss) applicable to common shareholders, as defined by U.S. GAAP, excluding extraordinary items as defined by U.S. GAAP, gains or losses from sales of previously depreciated real estate assets, impairment charges related to depreciable real estate assets, plus certain non-cash items such as real estate asset depreciation and amortization. FFO includes gains and losses realized on securities investments.

 

NOI is calculated as recurring revenues of the Company, less property expenses such as real estate taxes, repairs and maintenance, property management, utilities, insurance and other expenses. NOI excludes realized gains (losses) on securities transactions.

 

Same Property NOI is the NOI of all properties owned during the entire periods presented with the exclusion of any properties expanded during the periods presented.

 

Same Property Cash NOI is the Same Property NOI adjusted to exclude the effects of the U.S. GAAP straight-line rent adjustment for the properties included in the Same Property NOI calculation.

 

EBITDA is calculated as NOI, less general and administrative expenses, plus interest and dividend income and lease termination income and net effect of net amortization of acquired above or below market lease revenue.

 

Core FFO is calculated as FFO plus acquisition costs.

 

AFFO is calculated as EBITDA, minus lease termination income, minus U.S. GAAP interest expense, minus preferred stock dividends, minus recurring capital expenditures and U.S. GAAP straight-line rent adjustment, plus stock compensation expense. AFFO excludes realized gains (losses) on securities transactions. Recurring capital expenditures are defined as all capital expenditures, excluding capital expenditures related to expansions at our current locations or capital expenditures that are incurred in conjunction with obtaining a new lease or a lease renewal.

 

NOI, Same Property NOI, Same Property Cash NOI, EBITDA, FFO, Core FFO and AFFO do not represent cash generated from operating activities in accordance with U.S. GAAP and are not necessarily indicative of cash available to fund cash needs, including the repayment of principal on debt and payment of dividends and distributions. NOI, Same Property NOI, Same Property Cash NOI, EBITDA, FFO, Core FFO and AFFO should not be considered as substitutes for net income applicable to common shareholders (calculated in accordance with U.S. GAAP) as a measure of results of operations or cash flows (calculated in accordance with U.S. GAAP) as a measure of liquidity. NOI, Same Property NOI, Same Property Cash NOI, EBITDA, FFO, Core FFO and AFFO as currently calculated by the Company may not be comparable to similarly titled, but variously calculated, measures of other REITs.

 

 

Table of Content 

 

FOR IMMEDIATE RELEASE	February 3, 2016
	Contact: Susan Jordan
	732-577-9996

 

MONMOUTH REAL ESTATE INVESTMENT CORPORATION REPORTS RESULTS FOR

THE FIRST QUARTER ENDED DECEMBER 31, 2015

 

FREEHOLD, NJ, February 3, 2016 Monmouth Real Estate Investment Corporation (NYSE:MNR) reported Core Funds from Operations (Core FFO) of $11,012,000 or $0.17 per diluted share for the three months ended December 31, 2015 as compared to $8,634,000 or $0.15 per diluted share for the three months ended December 31, 2014. Adjusted Funds from Operations (AFFO), for the three months ended December 31, 2015 was $10,725,000 or $0.17 per diluted share versus $7,795,000 or $0.14 per diluted share for the three months ended December 31, 2014 representing an increase in AFFO per share of 21.4%.

 

A summary of significant financial information for the three months ended December 31, 2015 and 2014 is as follows:

 

		Three Months Ended December 31,
		2015				2014
Rental Revenue		$	19,065,000			$	15,430,000
Reimbursement Revenue		$	3,194,000			$	2,247,000
Lease Termination Income		$	-0-			$	239,000
Net Operating Income (NOI) (1)		$	18,656,000			$	14,687,000
Total Expenses		$	11,167,000			$	9,583,000
Interest and Dividend Income		$	1,185,000			$	1,035,000
Gain on Sale of Securities Transactions, net		$	8,000			$	377,000
Net Income		$	6,939,000			$	5,424,000
Net Income Attributable to Common Shareholders		$	4,787,000			$	3,272,000
Net Income Attributable to Common Shareholders Per Diluted Common Share		$	0.08			$	0.06
Core FFO (1)		$	11,012,000			$	8,634,000
Core FFO per Diluted Common Share (1)		$	0.17			$	0.15
AFFO (1)		$	10,725,000			$	7,795,000
AFFO per Diluted Common Share (1)		$	0.17			$	0.14
Weighted Avg. Diluted Common Shares Outstanding			62,949,000				57,446,000

 

A summary of significant balance sheet information as of December 31, 2015 and September 30, 2015 is as follows:

 

		December 31, 2015				September 30, 2015
Net Real Estate Investments		$	862,813,000			$	816,801,000
Securities Available for Sale at Fair Value		$	61,033,000			$	54,541,000
Total Assets		$	972,370,000			$	915,992,000
Mortgage Notes Payable		$	400,720,000			$	373,991,000
Loans Payable		$	99,980,000			$	85,041,000
Total Shareholders’ Equity		$	458,387,000			$	446,011,000

 

 

Table of Content 

 

Michael P. Landy, President and CEO, commented on the results for the first quarter of fiscal 2016,

 

“This was a record quarter for Monmouth and represents an excellent start to fiscal 2016. We are pleased to report continued strength across multiple fronts. During the quarter we:

 

	●	Increased our occupancy rate 250 basis points to 98.8% over the prior year period and 110 basis points over the prior quarter. Subsequent to quarter end, we increased our occupancy rate an additional 70 basis points to 99.5% effective January 1, 2016.
	●	Increased our per share AFFO to $0.17, representing a 21% increase over the prior year period and a 13% increase sequentially
	●	Increased our Net Operating Income (NOI) 27% over the prior year period
	●	Increased our Same Property NOI 3.9% on a GAAP basis and 5.5% on a Cash basis over the prior year period
	●	Increased our quarterly common stock dividend 6.7% to $0.16 per share
	●	Acquired two new Class A built-to-suit properties containing a total of 506,000 square feet, for an aggregate cost of $50.4 million
	●	Grew our acquisition pipeline to nine new Class A build-to-suit properties, representing 2.2 million square feet, for a total purchase price of approximately $248.6 million. These properties are all net-leased to investment grade tenants or their subsidiaries. These acquisitions are expected to generate annualized rental revenue of approximately $16.5 million and will benefit from an average lease term of approximately 13.4 years. Subject to satisfactory due diligence, we anticipate closing these transactions upon completion of construction and occupancy over the next several quarters.
	●	Entered into agreements to expand four of our properties by approximately 312,000 square feet at a cost of approximately $18.4 million. Upon completion, the expansions will result in a new ten year lease extension for three buildings and a new twelve year lease extension for one building being expanded. These expansions will result in increased annual rent of approximately $1.7 million.
	●	Renewed two of the three leases scheduled to expire this fiscal year totaling 326,000 square feet. These lease renewals resulted in a 4.8% increase in rents on a GAAP basis and represent a weighted average lease term of 4.4 years. The last remaining lease renewal is under discussion.
	●	Increased our gross leasable area (GLA) 16% to 14.4 million square feet over the prior year period. Our GLA is expected to grow to 17.0 million square feet upon the completion of the above acquisitions and expansions.”

 

Mr. Landy stated, “On October 1^st, following 24 consecutive years of maintaining or increasing our common stock dividend, we announced a 6.7% dividend increase. This long-term track record of dividends and profitability makes Monmouth not only one of the few REITs that maintained its cash dividend throughout the Global Financial Crisis, but also one of the very few REITs that is paying out a higher cash dividend today than prior to the Global Financial Crisis. This consistent long-term performance underscores the high-quality of our business model, our tenant base, and our property portfolio.”

 

“We’ve put together a high-quality industrial property portfolio that has and will continue to benefit from the opportunities presented by e-commerce and the evolving global supply chain. While our strong showing this quarter bears this out, we remain very confident that the best is yet to come.”

 

Monmouth Real Estate Investment Corporation will host its First Quarter FY 2016 Financial Results Webcast and Conference Call on Thursday, February 4, 2016 at 10:00 a.m. Eastern Time. Senior management will discuss the results, current market conditions and future outlook.

 

The Company’s First Quarter FY 2016 financial results being released herein will be available on the Company’s website at www.mreic.com in the “Financial Filings” section.

 

To participate in the Webcast, select the microphone icon in the Webcast section of the Company’s homepage on the Company’s website at www.mreic.com. Interested parties can also participate via conference call by calling toll free 877-510-5852 (domestically) or 412-902-4138 (internationally).

 

The replay of the conference call will be available at 12:00 p.m. Eastern Time on Thursday, February 4, 2016. It will be available until April 30, 2016, and can be accessed by dialing toll free 877-344-7529 (domestically) and 412-317-0088 (internationally) and entering the passcode 10077955. A transcript of the call and the webcast replay will be available at the Company’s website, www.mreic.com.

 

Monmouth Real Estate Investment Corporation, founded in 1968 is one of the oldest public equity REITs in the U.S. The Company specializes in single-tenant, net-leased industrial properties, subject to long-term leases, primarily to investment grade tenants. Monmouth Real Estate Investment Corporation is a fully-integrated and self-managed real estate company, whose property portfolio consists of ninety-three properties located in twenty-nine states, containing a total of approximately 14.4 million rentable square feet. In addition, the Company owns a portfolio of REIT securities.

 

Certain statements included in this press release which are not historical facts may be deemed forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Any such forward-looking statements are based on the Company’s current expectations and involve various risks and uncertainties. Although the Company believes the expectations reflected in any forward-looking statements are based on reasonable assumptions, the Company can provide no assurance those expectations will be achieved. The risks and uncertainties that could cause actual results or events to differ materially from expectations are contained in the Company’s annual report on Form 10-K and described from time to time in the Company’s other filings with the SEC. The Company undertakes no obligation to publicly update or revise any forward-looking statements whether as a result of new information, future events, or otherwise.

 

 

Table of Content 

 

Notes:

 

(1) Non-U.S. GAAP Information: FFO is defined by the National Association of Real Estate Investment Trusts (“NAREIT”) as net income applicable to common shareholders, excluding gains or losses from sales of depreciable assets, plus real estate-related depreciation and amortization. We define Core FFO as FFO plus acquisition costs. We define AFFO as Core FFO excluding lease termination income, gains or losses on securities transactions, stock based compensation expense, depreciation of corporate office tenant improvements, amortization of deferred financing costs, U.S. GAAP straight-line rent adjustments and less recurring capital expenditures. We define recurring capital expenditures as all capital expenditures, excluding capital expenditures related to expansions at our current locations or capital expenditures that are incurred in conjunction with obtaining a new lease or a lease renewal. We define NOI as recurring rental and reimbursement revenues less real estate and other operating expenses. FFO, Core FFO and AFFO per diluted common share are defined as FFO, Core FFO and AFFO divided by weighted average diluted common shares outstanding. FFO, Core FFO and AFFO per diluted common share, as well as NOI, should be considered as supplemental measures of operating performance used by real estate investment trusts (REITs). FFO, Core FFO and AFFO per diluted common share exclude historical cost depreciation as an expense and may facilitate the comparison of REITs which have different cost basis. The items excluded from FFO, Core FFO and AFFO per diluted common share are significant components in understanding the Company’s financial performance.

 

FFO, Core FFO and AFFO per diluted common share (A) do not represent cash flow from operations as defined by accounting principles generally accepted in the United States of America; (B) should not be considered as an alternative to net income as a measure of operating performance or to cash flows from operating, investing and financing activities; and (C) are not alternatives to cash flow as a measure of liquidity. FFO, Core FFO and AFFO per diluted common share, as well as NOI, as calculated by the Company, may not be comparable to similarly titled measures reported by other REITs.

 

The following is a reconciliation of the Company’s U.S. GAAP Net Income to the Company’s FFO, Core FFO and AFFO for the three months ended December 31, 2015 and 2014:

 

		Three Months Ended
		12/31/2015				12/31/2014
Net Income Attributable to Common Shareholders		$	4,787,000			$	3,272,000
Plus: Depreciation Expense (excluding Corporate Office)			5,567,000				4,484,000
Plus: Amortization of Intangible Assets			323,000				347,000
Plus: Amortization of Capitalized Lease Costs			189,000				139,000
FFO Attributable to Common Shareholders			10,866,000				8,242,000
Plus: Acquisition Costs			146,000				392,000
Core FFO Attributable to Common Shareholders			11,012,000				8,634,000
Plus: Stock Compensation Expense			105,000				90,000
Plus: Depreciation of Corporate Office Tenant Improvements			28,000				-0-
Plus: Amortization of Financing Costs			234,000				193,000
Less: Lease Termination Income			-0-				(239,000	)
Less: Gain on Sale of Securities Transactions, net			(8,000	)			(377,000	)
Less: U.S. GAAP Straight-line Rent Adjustment			(310,000	)			(332,000	)
Less: Recurring Capital Expenditures			(336,000	)			(174,000	)
AFFO Attributable to Common Shareholders		$	10,725,000			$	7,795,000

 

The following are the Cash Flows provided (used) by Operating, Investing and Financing Activities for the three months ended December 31, 2015 and 2014:

 

		Three Months Ended
		12/31/2015				12/31/2014
Operating Activities		$	11,637,000			$	8,365,000
Investing Activities			(55,597,000	)			(62,093,000	)
Financing Activities			44,813,000				48,554,000

 

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