Table of Contents
	Page
Consolidated Balance Sheets	3
Consolidated Statements of Income	4
Net Income, FFO, Core FFO, AFFO, Adjusted EBITDA and NOI Reconciliations	5
Financial Highlights	6
Same Property Statistics	7
Consolidated Statements of Cash Flows	9
Capital Structure and Leverage Ratios	10
Debt Maturity	12
Property Table by Tenant	13
Property Table by State	14
Lease Expirations	15
Recent Acquisitions	16
Property Table	17
Definitions	19
Press Release Dated May 3, 2017	20

 

The statement of operations and supplemental statement of operations provided in this supplemental information package present funds from operations, core funds from operations, adjusted funds from operations, net operating income (NOI), Same Property NOI, Same Property cash NOI and Adjusted EBITDA which are REIT industry financial measures that are not calculated in accordance with accounting principles generally accepted in the United States of America. Please see page 19 for a definition of these supplemental performance measures. Please see the supplemental statement of operations reconciliation for a reconciliation of certain captions in the supplemental statement of operations reported in this supplemental information package to the statement of operations as reported in the Company’s filings with the SEC on Form 10-Q.

 

 

Consolidated Balance Sheets
		March 31, 2017				September 30, 2016
		(unaudited)
ASSETS
Real Estate Investments:
Land		$	168,082,315			$	165,375,315
Buildings and Improvements			1,056,125,003				1,005,938,180
Total Real Estate Investments			1,224,207,318				1,171,313,495
Accumulated Depreciation			(161,947,883	)			(148,830,169	)
Real Estate Investments			1,062,259,435				1,022,483,326
Cash and Cash Equivalents			22,951,899				95,749,508
Securities Available for Sale at Fair Value			99,405,410				73,604,894
Tenant and Other Receivables			977,700				1,444,824
Deferred Rent Receivable			7,478,688				6,917,431
Prepaid Expenses			7,966,014				4,830,987
Capitalized Lease Costs, net of Accumulated Amortization of $3,512,238 and $3,238,516, respectively			3,932,981				4,165,268
Intangible Assets, net of Accumulated Amortization of $12,841,419 and $12,332,599, respectively			5,758,872				5,816,153
Financing Costs, net of Accumulated Amortization of $431,765 and $246,678, respectively			1,063,498				1,245,923
Other Assets			8,425,238				7,227,571
TOTAL ASSETS		$	1,220,219,735			$	1,223,485,885
LIABILITIES AND SHAREHOLDERS’ EQUITY
Liabilities:
Fixed Rate Mortgage Notes Payable, net of Unamortized Debt Issuance Costs		$	477,598,305			$	477,476,010
Loans Payable			26,000,000				80,790,684
Accounts Payable and Accrued Expenses			2,798,104				3,998,771
Other Liabilities			14,518,225				9,868,572
Preferred Stock Called for Redemption			-0-				53,493,750
Total Liabilities			520,914,634				625,627,787
COMMITMENTS AND CONTINGENCIES
Shareholders’ Equity:
7.875% Series B Cumulative Redeemable Preferred Stock, $0.01 Par Value Per Share: 2,300,000 Shares Authorized, Issued and Outstanding as of March 31, 2017 and September 30, 2016			57,500,000				57,500,000
6.125% Series C Cumulative Redeemable Preferred Stock, $0.01 Par Value Per Share: 8,850,000 and 5,400,000 Shares Authorized as of March 31, 2017 and September 30, 2016, respectively; 8,400,000 and 5,400,000 Shares Issued and Outstanding as of March 31, 2017 and September 30, 2016, respectively			210,000,000				135,000,000
Common Stock, $0.01 Par Value Per Share: 193,289,750 and 194,600,000 Shares Authorized as of March 31, 2017 and September 30, 2016, respectively; 72,107,640 and 68,920,972 Shares Issued and Outstanding as of March 31, 2017 and September 30, 2016, respectively			721,076				689,210
Excess Stock, $0.01 Par Value Per Share: 200,000,000 Shares Authorized as of March 31, 2017 and September 30, 2016; No Shares Issued or Outstanding as of March 31, 2017 and September 30, 2016			-0-				-0-
Additional Paid-In Capital			418,713,736				391,726,621
Accumulated Other Comprehensive Income			12,370,289				12,942,267
Undistributed Income			-0-				-0-
Total Shareholders’ Equity			699,305,101				597,858,098
TOTAL LIABILITIES & SHAREHOLDERS’ EQUITY		$	1,220,219,735			$	1,223,485,885

 

Second Quarter FY 2017 Supplemental of Monmouth Real Estate Investment Corp. Page 3 of 23

 

 

Consolidated Statements of Income
(unaudited)
		Three Months Ended								Six Months Ended
		3/31/2017				3/31/2016				3/31/2017				3/31/2016
INCOME:
Rental Revenue		$	23,610,830			$	19,610,868			$	46,891,686			$	38,675,787
Reimbursement Revenue			3,697,361				3,355,970				7,598,116				6,550,413
TOTAL INCOME			27,308,191				22,966,838				54,489,802				45,226,200
EXPENSES:
Real Estate Taxes			2,851,862				2,675,677				5,758,843				5,047,813
Operating Expenses			1,288,265				1,103,358				2,582,733				2,334,723
General & Administrative Expenses			2,078,538				2,221,445				3,521,001				3,557,409
Acquisition Costs			-0-				265,012				178,526				410,597
Depreciation			7,139,077				5,786,062				14,131,572				11,381,494
Amortization of Capitalized Lease Costs and Intangible Assets			427,756				486,360				875,553				972,971
TOTAL EXPENSES			13,785,498				12,537,914				27,048,228				23,705,007
OTHER INCOME (EXPENSE):
Dividend and Interest Income			1,439,182				1,379,668				2,731,333				2,564,321
Gain on Sale of Securities Transactions			-0-				878,962				806,108				887,342
Interest Expense, including Amortization of Financing Costs			(6,537,264	)			(5,555,607	)			(12,700,483	)			(10,902,254	)
TOTAL OTHER INCOME (EXPENSE)			(5,098,082	)			(3,296,977	)			(9,163,042	)			(7,450,591	)
NET INCOME			8,424,611				7,131,947				18,278,532				14,070,602
Less: Preferred Dividend			3,582,036				2,151,758				7,279,796				4,303,516
NET INCOME ATTRIBUTABLE TO COMMON SHAREHOLDERS		$	4,842,575			$	4,980,189			$	10,998,736			$	9,767,086

 

Second Quarter FY 2017 Supplemental of Monmouth Real Estate Investment Corp. Page 4 of 23

 

 

Net Income, FFO, Core FFO, AFFO, Adjusted EBITDA and NOI Reconciliations
(unaudited)

		Three Months Ended								Six Months Ended
		3/31/2017				3/31/2016				3/31/2017				3/31/2016
FFO, Core FFO, AFFO
Net Income Attributable to Common Shareholders		$	4,842,575			$	4,980,189			$	10,998,736			$	9,767,086
Plus: Depreciation Expense (excluding Corporate Office Tenant Improvements)			7,099,906				5,756,944				14,053,686				11,324,405
Plus: Amortization of Intangible Assets			240,973				319,736				508,820				643,200
Plus: Amortization of Capitalized Lease Costs			212,275				192,116				417,717				380,755
Plus: Loss on Sale of Real Estate Investment			-0-				-0-				95,336				-0-
FFO Attributable to Common Shareholders			12,395,729				11,248,985				26,074,295				22,115,446
Plus: Acquisition Costs			-0-				265,012				178,526				410,597
Core FFO Attributable to Common Shareholders			12,395,729				11,513,997				26,252,821				22,526,043
Plus: Stock Compensation Expense			166,190				101,968				266,345				206,928
Plus: Depreciation of Corporate Office Tenant Improvements			39,171				29,118				77,886				57,089
Plus: Amortization of Financing Costs			384,984				238,671				665,897				473,038
Plus: Non-recurring other expense			-0-				400,000				-0-				400,000
Less: Gain on Sale of Securities Transactions			-0-				(878,962	)			(806,108	)			(887,342	)
Less: Effect of Non-cash U.S. GAAP Straight-line Rent Adjustment			(286,617	)			(512,170	)			(629,856	)			(821,835	)
Less: Recurring Capital Expenditures			(188,390	)			(147,861	)			(376,802	)			(484,052	)
AFFO Attributable to Common Shareholders		$	12,511,067			$	10,744,761			$	25,450,183			$	21,469,869

 

		Three Months Ended								Six Months Ended
		3/31/2017				3/31/2016				3/31/2017				3/31/2016
Adjusted EBITDA
Net Income Attributable to Common Shareholders		$	4,842,575			$	4,980,189			$	10,998,736			$	9,767,086
Plus: Preferred Dividends			3,582,036				2,151,758				7,279,796				4,303,516
Plus: Depreciation & Amortization			7,566,833				6,272,422				15,007,125				12,354,465
Plus: Interest Expense, Including Amortization of Financing Costs			6,537,264				5,555,607				12,700,483				10,902,254
Plus: Acquisition Costs			-0-				265,012				178,526				410,597
Plus: Net Amortization of Acquired Above and Below Market Lease Revenue			25,492				25,492				50,984				50,984
Plus: Loss on Sale of Real Estate Investment			-0-				-0-				95,336				-0-
Less: Gain on Sale of Securities Transactions			-0-				(878,962	)			(806,108	)			(887,342	)
Adjusted EBITDA		$	22,554,200			$	18,371,518			$	45,504,878			$	36,901,560

 

		Three Months Ended								Six Months Ended
		3/31/2017				3/31/2016				3/31/2017				3/31/2016
Net Operating Income
Net Income Attributable to Common Shareholders		$	4,842,575			$	4,980,189			$	10,998,736			$	9,767,086
Plus: Preferred Dividends			3,582,036				2,151,758				7,279,796				4,303,516
Plus: General & Administrative Expenses			2,078,538				2,221,445				3,521,001				3,557,409
Plus: Acquisition Costs			-0-				265,012				178,526				410,597
Plus: Depreciation			7,139,077				5,786,062				14,131,572				11,381,494
Plus: Amortization of Capitalized Lease Costs and Intangible Assets			427,756				486,360				875,553				972,971
Less: Dividend and Interest Income			(1,439,182	)			(1,379,668	)			(2,731,333	)			(2,564,321	)
Less: Gain on Sale of Securities Transactions			-0-				(878,962	)			(806,108	)			(887,342	)
Plus: Interest Expense, including Amortization of Financing Costs			6,537,264				5,555,607				12,700,483				10,902,254
Net Operating Income - NOI		$	23,168,064			$	19,187,803			$	46,148,226			$	37,843,664

 

		Three Months Ended								Six Months Ended
		3/31/2017				3/31/2016				3/31/2017				3/31/2016
Components of Net Operating Income consists of:
Revenues
Rental Revenue		$	23,610,830			$	19,610,868			$	46,891,686			$	38,675,787
Reimbursement Revenue			3,697,361				3,355,970				7,598,116				6,550,413
Total Rental and Reimbursement Revenue			27,308,191				22,966,838				54,489,802				45,226,200
Expenses
Real Estate Taxes			2,851,862				2,675,677				5,758,843				5,047,813
Operating Expenses			1,288,265				1,103,358				2,582,733				2,334,723
Total Real Estate Taxes and Operating Expenses			4,140,127				3,779,035				8,341,576				7,382,536
Net Operating Income - NOI		$	23,168,064			$	19,187,803			$	46,148,226			$	37,843,664

 

Second Quarter FY 2017 Supplemental of Monmouth Real Estate Investment Corp. Page 5 of 23

 

 

Financial Highlights
(unaudited)

 

		Three Months Ended								Six Months Ended
		3/31/2017				3/31/2016				3/31/2017				3/31/2016
Weighted Average Common Shares Outstanding
Basic			71,243,381				64,657,058				70,456,222				63,757,087
Diluted			71,406,875				64,736,469				70,607,766				63,828,310
Net Income Attributable to Common Shareholders		$	4,842,575			$	4,980,189			$	10,998,736			$	9,767,086
Basic		$	0.07			$	0.08			$	0.16			$	0.15
Diluted			0.07				0.08				0.16				0.15
Net Operating Income – NOI		$	23,168,064			$	19,187,803			$	46,148,226			$	37,843,664
Basic		$	0.33			$	0.30			$	0.65			$	0.59
Diluted			0.32				0.30				0.65				0.59
Funds From Operations – FFO		$	12,395,729			$	11,248,985			$	26,074,295			$	22,115,446
Basic		$	0.17			$	0.17			$	0.37			$	0.35
Diluted			0.17				0.17				0.37				0.35
Core Funds From Operations - Core FFO		$	12,395,729			$	11,513,997			$	26,252,821			$	22,526,043
Basic		$	0.17			$	0.18			$	0.37			$	0.35
Diluted			0.17				0.18				0.37				0.35
Core FFO Excluding Gains on Securities Transactions		$	12,395,729			$	10,635,035			$	25,446,713			$	21,638,701
Basic		$	0.17			$	0.16			$	0.36			$	0.34
Diluted			0.17				0.16				0.36				0.34
Adjusted Funds From Operations - AFFO		$	12,511,067			$	10,744,761			$	25,450,183			$	21,469,869
Basic		$	0.18			$	0.17			$	0.36			$	0.34
Diluted			0.18				0.17				0.36				0.34
Dividends Declared per Common Share		$	0.16			$	0.16			$	0.32			$	0.32

 

Second Quarter FY 2017 Supplemental of Monmouth Real Estate Investment Corp. Page 6 of 23

 

 

Same Property Statistics
		Three Months Ended
		3/31/2017																								3/31/2016												Change				Change %
Total Square Feet / Total Properties			16,553,910				/				100																14,550,855				/				94				2,003,055				13.8	%
Occupancy Percentage at Quarter End			100.0	%																							99.6	%											40 bps				0.4	%
Same Property Square Feet / Number of Same Properties															13,392,274				/				88
Same Property Occupancy Percentage at Quarter End			100.0	%																							100.0	%											0 bps				0.0	%
Same Property Net Operating Income (NOI) (GAAP)		$	18,012,762																							$	18,032,816											$	(20,054	)			(0.1	)%
Reversal of Effect of Non-cash U.S. GAAP Straight-line Rent Adjustment			(155,783	)																							(478,057	)											322,274
Same Property Cash NOI (Cash)		$	17,856,979																							$	17,554,759											$	302,220				1.7	%

 

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

 

The 0.1% decrease, amounting to $20,054 in Same Property NOI, consists of $147,623 attributable to increased Same Property NOI from filling previously vacant properties offset by a decrease in Same Property NOI from occupied properties of $167,677.

 

The 1.7% increase, amounting to $302,220 in Same Property Cash NOI, consists of $148,046 attributable to increased Same Property Cash NOI from filling previously vacant properties and by an increase in Same Property Cash NOI from occupied properties of $154,174.

  

Reconciliation of Same Property NOI to Total NOI
		Three Months Ended
		3/31/2017				3/31/2016				Change				Change %
Same Property NOI (GAAP)		$	18,012,762			$	18,032,816			$	(20,054	)			(0.1	)%
NOI of properties purchased subsequent to October 1, 2015 (eight properties for fiscal 2017 and one properties for fiscal 2016)			3,591,668				92,403
NOI of properties expanded subsequent to October 1, 2015 (four properties for fiscal 2017 and 2016)			1,563,634				1,078,478
NOI of property sold subsequent to October 1, 2015 (one property sold during fiscal 2017)			-0-				(15,894	)
Total NOI		$	23,168,064			$	19,187,803			$	3,980,261				20.7	%

 

Second Quarter FY 2017 Supplemental of Monmouth Real Estate Investment Corp. Page 7 of 23

 

 

Same Property Statistics
		Six Months Ended
		3/31/2017																								3/31/2016												Change				Change %
Total Square Feet / Total Properties			16,553,910				/				100																14,550,855				/				94				2,003,055				13.8	%
Occupancy Percentage at Quarter End			100.0	%																							99.6	%											40 bps				0.4	%
Same Property Square Feet / Number of Same Properties															12,886,242				/				86
Same Property Occupancy Percentage at Quarter End			100.0	%																							100.0	%											0 bps				0.0	%
Same Property Net Operating Income (NOI) (GAAP)		$	34,516,046																							$	34,173,271											$	342,775				1.0	%
Reversal of Effect of Non-cash U.S. GAAP Straight-line Rent Adjustment			(338,041	)																							(778,609	)											440,568
Same Property Cash NOI (Cash)		$	34,178,005																							$	33,394,662											$	783,343				2.3	%

 

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

 

The 1.0% increase, amounting to $342,775 in Same Property NOI, consists of $490,389 attributable to increased Same Property NOI from filling previously vacant properties offset by a decrease in Same Property NOI from occupied properties of $147,614.

 

The 2.3% increase, amounting to $783,343 in Same Property Cash NOI, consists of $609,265 attributable to increased Same Property Cash NOI from filling previously vacant properties and by an increase in Same Property Cash NOI from occupied properties of $174,078.

 

Reconciliation of Same Property NOI to Total NOI		Six Months Ended
		3/31/2017				3/31/2016				Change				Change %
Same Property NOI (GAAP)		$	34,516,046			$	34,173,271			$	342,775				1.0	%
NOI of properties purchased subsequent to October 1, 2015 (ten properties for fiscal 2017 and three properties for fiscal 2016)			8,592,414				1,561,380
NOI of properties expanded subsequent to October 1, 2015 (four properties for fiscal 2017 and 2016)			3,153,803				2,169,971
NOI of property sold subsequent to October 1, 2015 (one property sold during fiscal 2017)			(114,037	)			(60,958	)
Total NOI		$	46,148,226			$	37,843,664			$	8,304,562				21.9	%

 

Second Quarter FY 2017 Supplemental of Monmouth Real Estate Investment Corp. Page 8 of 23

 

 

Consolidated Statements of Cash Flows
(unaudited)		Six Months Ended
		3/31/2017				3/31/2016
CASH FLOWS FROM OPERATING ACTIVITIES
Net Income		$	18,278,532			$	14,070,602
Noncash Items Included in Net Income:
Depreciation & Amortization			15,673,022				12,827,503
Stock Compensation Expense			266,345				206,928
Gain on Sale of Securities Transactions			(806,108	)			(887,342	)
Loss on Sale of Real Estate Investment			95,336				-0-
Changes in:
Tenant, Deferred Rent and Other Receivables			452,335				(1,135,834	)
Prepaid Expenses			(3,135,027	)			(2,840,928	)
Other Assets and Capitalized Lease Costs			(839,704	)			(2,327,353	)
Accounts Payable, Accrued Expenses and Other Liabilities			861,044				8,514,594
NET CASH PROVIDED BY OPERATING ACTIVITIES			30,845,775				28,428,170
CASH FLOWS FROM INVESTING ACTIVITIES
Purchase of Real Estate and Intangible Assets			(56,101,538	)			(70,418,761	)
Capital Improvements			(1,013,209	)			(10,193,323	)
Proceeds on Sale of Real Estate			4,125,819				-0-
Return of Deposits on Real Estate			1,000,000				900,000
Deposits Paid on Acquisitions of Real Estate			(1,575,000	)			(850,000	)
Proceeds from Sale of Securities Available for Sale			3,739,239				7,416,459
Purchase of Securities Available for Sale			(29,305,625	)			(13,132,910	)
NET CASH USED IN INVESTING ACTIVITIES			(79,130,314	)			(86,278,535	)
CASH FLOWS FROM FINANCING ACTIVITIES
Net (Repayments) Proceeds from Loans Payable			(54,790,684	)			14,875,497
Proceeds from Fixed Rate Mortgage Notes Payable			38,000,000				46,670,000
Principal Payments on Fixed Rate Mortgage Notes Payable			(37,700,474	)			(14,235,258	)
Financing Costs Paid on Debt			(660,702	)			(615,329	)
Proceeds from the Exercise of Stock Options			-0-				1,412,050
Redemption of Series A Preferred Stock			(53,493,750	)			-0-
Proceeds from Underwritten Public Offering of Preferred Stock, net of offering costs			71,017,493				-0-
Proceeds from Issuance of Common Stock in the DRIP, net of Dividend Reinvestments			37,812,970				28,200,304
Preferred Dividends Paid			(6,621,359	)			(4,303,516	)
Common Dividends Paid, net of Reinvestments			(18,076,564	)			(16,292,674	)
NET CASH (USED IN) PROVIDED BY FINANCING ACTIVITIES			(24,513,070	)			55,711,074
NET DECREASE IN CASH AND CASH EQUIVALENTS			(72,797,609	)			(2,139,291	)
CASH AND CASH EQUIVALENTS - BEGINNING OF PERIOD			95,749,508				12,073,909
CASH AND CASH EQUIVALENTS - END OF PERIOD		$	22,951,899			$	9,934,618

 

Second Quarter FY 2017 Supplemental of Monmouth Real Estate Investment Corp. Page 9 of 23

 

 

Capital Structure and Leverage Ratios
(unaudited)
		As of				As of				As of
		3/31/2017				3/31/2016				9/30/2016
Fixed Rate Mortgage Notes Payable, Net of Unamortized Debt Costs		$	477,598,305			$	401,083,780			$	477,476,010
Loans Payable			26,000,000				99,916,883				80,790,684
Preferred Stock Called for Redemption			-0-				-0-				53,493,750
Total Debt			503,598,305				501,000,663				611,760,444
7.625% Series A Cumul. Redeemable Preferred			-0-				53,493,750				-0-
7.875% Series B Cumul. Redeemable Preferred			57,500,000				57,500,000				57,500,000
6.125% Series C Cumul. Redeemable Preferred			210,000,000				-0-				135,000,000
Total Preferred Stock			267,500,000				110,993,750				192,500,000
Common Stock, Paid-In-Capital & Other			431,805,101				365,812,551				405,358,098
Total Shareholders’ Equity			699,305,101				476,806,301				597,858,098
Total Book Capitalization			1,202,903,406				977,806,964				1,209,618,542
Accumulated Depreciation			161,947,883				136,359,705				148,830,169
Total Undepreciated Book Capitalization		$	1,364,851,289			$	1,114,166,669			$	1,358,448,711
Shares Outstanding			72,107,640				65,588,024				68,920,972
Market Price Per Share		$	14.27			$	11.89			$	14.27
Equity Market Capitalization		$	1,028,976,023			$	779,841,605			$	983,502,270
Total Debt			503,598,305				501,000,663				611,760,444
Preferred			267,500,000				110,993,750				192,500,000
Total Market Capitalization		$	1,800,074,328			$	1,391,836,018			$	1,787,762,714
Total Debt		$	503,598,305			$	501,000,663			$	611,760,444
less: Cash and Cash Equivalents			22,951,899				9,934,618				95,749,508
Net Debt		$	480,646,406			$	491,066,045			$	516,010,936
less: Securities Available for Sale at Fair Value (Securities)			99,405,410				68,646,996				73,604,894
Net Debt Less Securities		$	381,240,996			$	422,419,049			$	442,406,042
Net Debt / Undepreciated Book Capitalization			35.2	%			44.1	%			38.0	%
Net Debt / Total Market Capitalization			26.7	%			35.3	%			28.9	%
Net Debt Plus Preferred / Total Market Capitalization			41.6	%			43.3	%			39.6	%
Net Debt Less Securities / Undepreciated Book Capitalization			27.9	%			37.9	%			32.6	%
Net Debt Less Securities / Total Market Capitalization			21.2	%			30.3	%			24.7	%
Net Debt Less Securities Plus Preferred / Total Market Capitalization			36.0	%			38.3	%			35.5	%
Weighted Average Interest Rate on Fixed Rate Debt			4.37	%			4.61	%			4.49	%

 

Second Quarter FY 2017 Supplemental of Monmouth Real Estate Investment Corp. Page 10 of 23

 

 

Capital Structure and Leverage Ratios continued

(unaudited)

 

																		Fiscal Year
		Three Months Ended								Six Months Ended								Ended
			3/31/2017				3/31/2016				3/31/2017				3/31/2016				9/30/2016
Net Income		$	8,424,611			$	7,131,947			$	18,278,532			$	14,070,602			$	32,494,507
plus: Depreciation & Amortization			7,566,833				6,272,422				15,007,125				12,354,465				26,087,680
plus: Interest Expense, including Amortization of Financing Costs			6,537,264				5,555,607				12,700,483				10,902,254				22,953,049
plus: Acquisition Costs			-0-				265,012				178,526				410,597				730,441
plus: Net Amortization of Acquired Above and  Below Market Lease Revenue			25,492				25,492				50,984				50,984				101,967
less: Gain on Sale of Securities Transactions			-0-				(878,962	)			(806,108	)			(887,342	)			-0-
Plus: Loss on Sale of Real Estate Investment			-0-				-0-				95,336				-0-				(4,398,599	)
Adjusted EBITDA		$	22,554,200			$	18,371,518			$	45,504,878			$	36,901,560			$	77,969,045
Interest Expense, including Amortization of  Financing Costs		$	6,537,264			$	5,555,607			$	12,700,483			$	10,902,254			$	22,953,049
Preferred Dividends			3,582,036				2,151,758				7,279,796				4,303,516				9,020,470
Total Fixed Charges		$	10,119,300			$	7,707,365			$	19,980,279			$	15,205,770			$	31,973,519
Interest Coverage			3.5 x				3.3 x				3.6 x				3.4 x				3.4 x
Fixed Charge Coverage			2.2 x				2.4 x				2.3 x				2.4 x				2.4 x
Net Debt		$	480,646,406			$	491,066,045			$	480,646,406			$	491,066,045			$	516,010,936
Net Debt Less Securities			381,240,996				422,419,049				381,240,996				422,419,049				442,406,042
Preferred			267,500,000				110,993,750				267,500,000				110,993,750				192,500,000
Annualized Adjusted EBITDA			90,216,800				73,486,072				91,009,756				73,803,120				77,969,045
Net Debt / Adjusted EBITDA			5.3 x				6.7 x				5.3 x				6.7 x				6.6 x
Net Debt Less Securities / Adjusted EBITDA			4.2 x				5.7 x				4.2 x				5.7 x				5.7 x
Net Debt + Preferred / Adjusted EBITDA			8.3 x				8.2 x				8.2 x				8.2 x				9.1 x
Net Debt Less Securities + Preferred / Adjusted EBITDA			7.2 x				7.3 x				7.1 x				7.2 x				8.1 x

 

Second Quarter FY 2017 Supplemental of Monmouth Real Estate Investment Corp. Page 11 of 23

 

 

Debt Matuity
(unaudited)

 

 

										Loans								% of
Fiscal Year Ended						Mortgages				Payable				Total				Total
2017						$	28,170,372			$	-0-			$	28,170,372				5.5	%
2018							46,130,441				-0-				46,130,441				9.0	%
2019							47,564,829				-0-				47,564,829				9.3	%
2020							31,368,909				26,000,000				57,368,909				11.2	%
2021							31,916,923				-0-				31,916,923				6.3	%
Thereafter							298,896,202				-0-				298,896,202				58.7	%
Total as of 3/31/2017			(A)			$	484,047,676			$	26,000,000			$	510,047,676				100.0	%
Weighted Average Interest Rate							4.37	%			2.68	%			4.28	%
Weighted Average Term							10.65 yrs.				3.50 yrs.				10.29 yrs.

 

(A)

Mortgages does not include unamortized debt issuance costs of $6,449,371.

 

Second Quarter FY 2017 Supplemental of Monmouth Real Estate Investment Corp. Page 12 of 23

 

 

Property Table by Tenant
(unaudited)
Tenant				Property Count				Square Footage				Occupied Square Footage				% of Occupied sf				Annual Rent				% of Total Ann. Rent				Rent Per sf Occup.				Undepreciated Cost				Mortgage Balance
FedEx Ground Package System, Inc.					40				6,763,253				6,763,253				40.9	%		$	49,447,000				51.6	%		$	7.31			$	654,763,153			$	292,121,991
FedEx Corporation					14				973,413				973,413				5.9	%			5,372,000				5.6	%			5.52				72,179,973				11,363,990
FedEx Supply Chain Services, Inc.					1				449,900				449,900				2.7	%			1,327,000				1.4	%			2.95				14,620,887				6,279,685
Total FedEx					55				8,186,566				8,186,566				49.5	%			56,146,000				58.6	%			6.86				741,564,013				309,765,666
Milwaukee Electric Tool Corporation					1				861,889				861,889				5.2	%			3,010,000				3.1	%			3.49				36,914,917				24,307,438
ULTA, Inc.					1				671,354				671,354				4.1	%			2,677,000				2.8	%			3.99				37,500,391				22,129,037
Jim Beam Brands Company					1				599,840				599,840				3.6	%			2,032,000				2.1	%			3.39				28,000,000				17,975,995
TreeHouse Private Brands, Inc.					1				558,600				558,600				3.4	%			2,186,000				2.3	%			3.91				26,767,852				16,358,324
CBOCS Distribution, Inc.					1				381,240				381,240				2.3	%			1,433,000				1.5	%			3.76				14,215,126				7,554,896
Best Buy Warehousing Logistics, Inc.					1				368,060				368,060				2.2	%			1,660,000				1.7	%			4.51				19,600,000				10,172,294
The Coca-Cola Company (Western Container Corporation)					2				323,358				323,358				2.0	%			1,684,000				1.8	%			5.21				20,504,069				6,159,467
Science Applications International					1				302,400				302,400				1.8	%			1,476,000				1.5	%			4.88				13,340,592				-0-
International Paper Company					1				280,000				280,000				1.7	%			1,337,000				1.4	%			4.78				18,294,108				10,292,790
Woodstream Corporation		(B)			1				256,000				256,000				1.5	%			910,000				0.9	%			3.55				8,882,831				-0-
United Technologies Corporation					2				244,317				244,317				1.5	%			1,896,000				2.0	%			7.76				22,552,240				7,603,252
Anda Pharmaceuticals, Inc.					1				234,660				234,660				1.4	%			1,200,000				1.3	%			5.11				14,550,000				8,464,390
UGN, Inc.					1				232,200				232,200				1.4	%			1,060,000				1.1	%			4.57				12,937,000				7,842,218
Caterpillar Logistics Services, Inc.					1				218,120				218,120				1.3	%			1,169,000				1.2	%			5.36				14,868,857				-0-
Anheuser-Busch, Inc.					1				184,800				184,800				1.1	%			810,000				0.8	%			4.38				12,578,197				-0-
Carlisle Tire & Wheel Company					1				179,280				179,280				1.1	%			787,000				0.8	%			4.39				7,225,401				134,949
NF&M International Inc.		(A)			1				174,802				174,802				1.1	%			833,000				0.9	%			4.77				5,389,424				-0-
Home Depot USA, Inc.					1				171,200				171,200				1.0	%			988,000				1.0	%			5.77				11,298,367				-0-
Kellogg Sales Company					3				170,279				170,279				1.0	%			982,000				1.0	%			5.77				12,175,116				-0-
Bunzl Distribution Midcentral, Inc.					1				158,417				158,417				1.0	%			747,000				0.8	%			4.72				9,647,403				6,878,520
Victory Packaging, L.P.					1				148,000				148,000				0.9	%			496,000				0.5	%			3.35				5,441,876				-0-
Challenger Lifts, Inc. (Snap-On Inc.)					1				137,500				137,500				0.8	%			831,000				0.9	%			6.04				11,304,000				7,103,266
Altec Industries, Inc.		(B)			1				126,880				126,880				0.8	%			349,000				0.4	%			2.75				4,402,553				-0-
General Electric Company					1				125,860				125,860				0.8	%			1,315,000				1.4	%			10.45				19,950,000				12,335,608
The American Bottling Company (Dr Pepper Snapple)					2				110,080				110,080				0.7	%			739,000				0.8	%			6.71				10,498,031				1,874,070
Style Crest, Inc.					1				106,507				106,507				0.6	%			381,000				0.4	%			3.58				7,238,613				-0-
Pittsburgh Glass Works, LLC					1				102,135				102,135				0.6	%			427,000				0.4	%			4.18				4,245,913				-0-
Holland 1916 Inc.					1				95,898				95,898				0.6	%			345,000				0.4	%			3.60				7,397,881				-0-
National Oilwell Varco, Inc.					1				91,295				91,295				0.6	%			750,000				0.8	%			8.22				8,083,107				2,910,740
Joseph T. Ryerson and Son, Inc.					1				89,052				89,052				0.5	%			506,000				0.5	%			5.68				6,932,916				-0-
CHEP USA, Inc.					1				83,000				83,000				0.5	%			497,000				0.5	%			5.99				7,405,447				2,362,965
Datatel Resources Corporation		(A)			1				80,856				80,856				0.5	%			243,000				0.3	%			3.01				2,492,919				-0-
Sherwin-Williams Company					2				78,887				78,887				0.5	%			640,000				0.7	%			8.11				7,244,128				-0-
RGH Enterprises, Inc.					1				75,000				75,000				0.5	%			601,000				0.6	%			8.01				5,525,600				-0-
Tampa Bay Grand Prix					1				68,385				68,385				0.4	%			293,000				0.3	%			4.28				5,677,982				-0-
Various Tenants at Retail Shopping Center					1				64,220				64,220				0.4	%			735,000				0.8	%			11.45				3,072,880				-0-
SOFIVE, Inc.					1				60,400				60,400				0.3	%			548,000				0.6	%			9.07				4,903,589				1,821,791
Siemens Real Estate					1				51,130				51,130				0.2	%			479,000				0.5	%			9.37				4,452,425				-0-
Rockwell Collins, Inc.					1				38,833				38,833				0.2	%			362,000				0.4	%			9.32				5,100,000				-0-
Keystone Automotive Industries MN, Inc.					1				36,270				36,270				0.2	%			141,000				0.1	%			3.89				2,161,895				-0-
Graybar Electric Company					1				26,340				26,340				0.2	%			109,000				0.1	%			4.14				1,858,594				-0-
Tenant Total as of 3/31/17					100				16,553,910				16,553,910				100.0	%		$	95,810,000				100.0	%		$	5.79			$	1,224,196,253			(C)	$484,047,676
Acquisitions Subsequent to 3/31/17
FedEx Ground Package System, Inc.					1				343,483				343,483				2.0	%			2,102,000				2.1	%			6.12				32,120,000				20,875,000
Pro Forma Total					101				16,897,393				16,897,393				100.0	%		$	97,912,000				100.0	%		$	5.79			$	1,256,316,253			$	504,922,676

 

	(A)	NF&M International and Datatel Resources are located at one property and therefore are counted as one property in the Property Count total.
	(B)	Woodstream Corporation and Altec Industries, Inc. are located at one property and therefore are counted as one property in the Property Count total. Other than these two properties indicated in footnotes (A) and (B) and the one retail property, all other properties are single-tenant.
	(C)	Does not include unamortized debt issuance costs of $6,449,371.

 

Second Quarter FY 2017 Supplemental of Monmouth Real Estate Investment Corp. Page 13 of 23

 

 

Property Table by State
(unaudited)
State		Property Count				Square Footage				Occupied Square Footage				% of Total sf				Annual Rent				% of Total Ann. Rent				Rent Per sf Occup.				Undepreciated Cost				Mortgage Balance
Florida			12				1,661,887				1,661,887				10.0	%		$	11,677,000				12.2	%			7.03			$	162,343,314			$	79,157,472
Texas			9				1,430,093				1,430,093				8.6	%			10,988,000				11.5	%			7.68				132,162,531				52,992,067
Kentucky			3				1,295,940				1,295,940				7.8	%			5,049,000				5.3	%			3.90				66,071,852				41,437,585
Mississippi			4				1,158,889				1,158,889				7.0	%			4,439,000				4.6	%			3.83				55,224,199				32,771,828
Ohio			7				1,032,469				1,032,469				6.2	%			6,116,000				6.4	%			5.92				72,772,468				22,866,661
Indiana			2				999,176				999,176				6.0	%			4,210,000				4.4	%			4.21				61,446,391				33,969,360
Illinois			9				958,045				958,045				5.8	%			6,101,000				6.4	%			6.37				82,074,151				9,426,312
Tennessee			3				891,777				891,777				5.4	%			3,071,000				3.2	%			3.44				33,852,531				15,268,835
Kansas			4				813,043				813,043				4.9	%			4,652,000				4.9	%			5.72				60,936,352				33,338,233
Missouri			5				804,397				804,397				4.9	%			3,103,000				3.2	%			3.86				39,377,057				6,878,520
North Carolina			3				585,224				585,224				3.5	%			3,111,000				3.2	%			5.32				45,725,286				19,470,572
South Carolina			3				571,115				571,115				3.5	%			3,566,000				3.7	%			6.24				36,368,552				2,562,696
New York			4				568,965				568,965				3.4	%			4,204,000				4.4	%			7.39				55,232,098				23,305,150
Pennsylvania			3				504,040				504,040				3.0	%			3,042,000				3.2	%			6.04				36,840,993				16,167,469
Michigan			3				489,571				489,571				3.0	%			3,472,000				3.6	%			7.09				41,315,172				15,520,620
Virginia			5				407,265				407,265				2.5	%			2,442,000				2.5	%			6.00				34,492,606				7,459,433
Colorado			3				363,597				363,597				2.2	%			3,040,000				3.2	%			8.36				42,058,524				20,203,233
Georgia			3				307,662				307,662				1.9	%			1,743,000				1.8	%			5.67				22,200,671				669,735
Arizona			1				283,358				283,358				1.7	%			1,352,000				1.4	%			4.77				16,824,226				4,916,067
Wisconsin			2				238,666				238,666				1.4	%			1,300,000				1.4	%			5.45				15,952,361				3,110,019
Washington			1				210,445				210,445				1.3	%			1,962,000				2.0	%			9.32				30,226,229				19,365,210
Oklahoma			2				204,580				204,580				1.2	%			1,308,000				1.4	%			6.39				16,332,494				6,037,435
Louisiana			1				175,315				175,315				1.1	%			1,260,000				1.3	%			7.19				18,410,000				12,145,156
Maryland			1				144,523				144,523				0.9	%			1,426,000				1.5	%			9.87				14,512,355				-0-
New Jersey			2				124,620				124,620				0.8	%			1,283,000				1.3	%			10.30				7,976,469				1,821,791
Nebraska			1				89,115				89,115				0.5	%			446,000				0.5	%			5.00				5,944,691				-0-
Alabama			1				88,653				88,653				0.5	%			605,000				0.6	%			6.82				6,661,819				693,750
Minnesota			1				60,398				60,398				0.4	%			372,000				0.4	%			6.16				5,220,000				2,492,467
Connecticut			1				54,812				54,812				0.3	%			329,000				0.3	%			6.00				3,478,966				-0-
Iowa			1				36,270				36,270				0.3	%			141,000				0.1	%			3.89				2,161,895				-0-
Total as of 3/31/17			100				16,553,910				16,553,910				100.0	%		$	95,810,000				100.0	%		$	5.79			$	1,224,196,253			(A)	$484,047,676
Acquisitions Subsequent to 3/31/17
Michigan			1				343,483				343,483				2.0	%			2,102,000				2.1	%			6.12				32,120,000				20,875,000
Pro Forma Total			101				16,897,393				16,897,393				100.0	%		$	97,912,000				100.0	%		$	5.79			$	1,256,316,253			$	504,922,676

 

(A)

Does not include unamortized debt issuance costs of $6,449,371.

 

Second Quarter FY 2017 Supplemental of Monmouth Real Estate Investment Corp. Page 14 of 23

 

 

Lease Expirations
(unaudited)
Fiscal Year				Property Count				Square Footage				% of Total sf				Annual Rent				% of Total Ann. Rent				Rent Per sf Occup.				Lease Exp. Term in Years				Undepreciated Cost				Mortgage Balance
	2017	(A)			5				302,120				1.8	%		$	1,810,000				1.9	%		$	5.99				0.3			$	23,252,749			$	5,707,012
	2018	(A)			16				1,542,279				9.3	%			8,930,000				9.3	%			5.79				1.0				105,388,720				9,476,517
	2019				9				1,370,849				8.3	%			7,116,000				7.4	%			5.19				2.1				81,442,177				14,071,048
	2020				4				383,449				2.3	%			2,116,000				2.2	%			5.52				3.2				27,388,231				-0-
	2021				7				827,110				5.0	%			3,705,000				3.9	%			4.48				4.3				44,322,572				8,121,920
	2022				7				1,138,320				6.9	%			6,376,000				6.7	%			5.60				5.0				75,791,836				28,758,592
	2023				10				1,302,007				7.9	%			8,035,000				8.4	%			6.17				6.3				100,082,913				35,081,109
	2024				11				1,743,587				10.5	%			10,597,000				11.1	%			6.08				7.2				130,495,799				45,756,802
	2025	(A)			9				2,404,478				14.5	%			12,207,000				12.7	%			5.08				8.1				159,784,267				84,732,497
	2026				7				1,126,033				6.8	%			8,669,000				9.0	%			7.70				9.2				118,951,060				58,900,797
	2027				5				658,255				4.0	%			4,305,000				4.5	%			6.54				10.1				55,022,179				4,916,067
	2028				1				861,889				5.2	%			3,010,000				3.1	%			3.49				11.3				36,914,917				24,307,438
	2029				2				262,613				1.6	%			1,515,000				1.6	%			5.77				12.3				21,954,950				9,426,312
	2030				4				1,044,832				6.3	%			7,388,000				7.7	%			7.07				13.0				109,196,151				67,903,868
	2031				3				963,269				5.8	%			7,110,000				7.4	%			7.38				14.1				104,367,000				70,529,373
	2034				1				558,600				3.4	%			2,186,000				2.3	%			3.91				16.6				26,767,852				16,358,324
	Various tenants at retail shopping center				1				64,220				0.4	%			735,000				0.8	%			11.45				-0-				3,072,880				-0-
	Total as of 3/31/17				100				16,553,910				100.0	%		$	95,810,000				100.0	%		$	5.79				7.4			$	1,224,196,253			(B)	$484,047,676
	Acquisitions Subsequent to 3/31/17
	2032				1				343,483				2.0	%			2,102,000				2.1	%			6.12				14.8				32,120,000				20,875,000
	Pro Forma Total				101				16,897,393				100.0	%		$	97,912,000				100.0	%		$	5.79				7.5			$	1,256,316,253			$	504,922,676

 

	(A)	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. Other than these two properties and the one retail property, all other properties are single-tenant.
	(B)	Does not include unamortized debt issuance costs of $6,449,371.

 

Second Quarter FY 2017 Supplemental of Monmouth Real Estate Investment Corp. Page 15 of 23

 

 

Recent Acquisitions During Fiscal 2017
(unaudited)
No		Tenant		City (MSA)		State		Fiscal Year Acquisition				Square Footage				Annual Rent				Rent Per sf Occup.				Lease Expiration		Purchase Price				Initial Mortgage Balance
1		FedEx Ground Package System, Inc.		Hamburg (Buffalo)		NY			2017				338,584			$	2,309,000			$	6.82			3/31/2031		$	35,100,000			$	23,500,000
2		FedEx Ground Package System, Inc.		Ft. Myers		FL			2017				213,672				1,365,000				6.39			9/30/2026			21,001,538				14,500,000
		Total as of 3/31/17											552,256			$	3,674,000			$	6.65					$	56,101,538			$	38,000,000
Acquisitions Subsequent to 3/31/17
3		FedEx Ground Package System, Inc.		Walker (Grand Rapids)		MI			2017				343,483				2,102,000				6.12			1/31/2032			32,120,000				20,875,000
													895,739			$	5,776,000			$	6.45					$	88,221,538			$	58,875,000

 

Second Quarter FY 2017 Supplemental of Monmouth Real Estate Investment Corp. Page 16 of 23

 

 

Property Table
(unaudited)
No		Tenant				City (MSA)		State		Fiscal Year Acquisition		Occup.				Square Footage				Annual Rent				Rent Per sf Occup.				Lease Exp. Term in Years				Undepreciated Cost				Mortgage Balance
1		Milwaukee Electric Tool Corporation				Olive Branch (Memphis, TN)		MS		2013			100.0	%			861,889			$	3,010,000			$	3.49				11.3			$	36,914,917			$	24,307,438
2		ULTA, Inc.				Greenwood (Indianapolis)		IN		2015			100.0	%			671,354				2,677,000				3.99				8.3				37,500,391				22,129,037
3		Jim Beam Brands Company				Frankfort		KY		2015			100.0	%			599,840				2,032,000				3.39				7.8				28,000,000				17,975,995
4		TreeHouse Private Brands, Inc.				Buckner (Louisville)		KY		2014			100.0	%			558,600				2,186,000				3.91				16.6				26,767,852				16,358,324
5		FedEx Supply Chain Services, Inc.				Memphis		TN		2010			100.0	%			449,900				1,327,000				2.95				2.2				14,620,887				6,279,685
6		Woodstream Corporation		(A)		St. Joseph		MO		2001			100.0	%			256,000				910,000				3.55				4.5				8,882,831				-0-
		Altec Industries, Inc.		(A)		St. Joseph		MO		2001			100.0	%			126,880				349,000				2.75				0.9				4,402,553				-0-
7		CBOCS Distribution, Inc.				Lebanon (Nashville)		TN		2011			100.0	%			381,240				1,433,000				3.76				7.3				14,215,126				7,554,896
8		Best Buy Warehousing Logistics, Inc.				Streetsboro (Cleveland)		OH		2012			100.0	%			368,060				1,660,000				4.51				4.8				19,600,000				10,172,294
9		Fedex Ground Package System, Inc.				Hamburg (Buffalo)		NY		2017			100.0	%			338,584				2,309,000				6.82				14.0				34,850,000				23,117,039
10		FedEx Ground Package System, Inc.				Concord (Charlotte)		NC		2016			100.0	%			330,717				2,234,000				6.76				8.3				33,044,797				19,470,572
11		FedEx Ground Package System, Inc.				Indianapolis		IN		2014			100.0	%			327,822				1,533,000				4.68				7.1				23,946,000				11,840,322
12		FedEx Ground Package System, Inc.				Olathe (Kansas City)		KS		2016			100.0	%			313,763				2,196,000				7.00				14.2				31,737,000				21,667,094
13		FedEx Ground Package System, Inc.				Davenport (Orlando)		FL		2016			100.0	%			310,922				2,605,000				8.38				14.1				37,780,000				25,745,240
14		FedEx Ground Package System, Inc.				Fort Worth (Dallas)		TX		2015			100.0	%			304,608				2,367,000				7.77				13.1				35,300,832				22,779,522
15		Science Applications International				Hanahan (Charleston)		SC		2005			100.0	%			302,400				1,476,000				4.88				2.1				13,340,592				-0-
16		FedEx Ground Package System, Inc.				Jacksonville		FL		2015			100.0	%			297,579				1,999,000				6.72				12.8				30,732,090				17,916,919
17		Western Container Corporation (The Coca-Cola Company)				Tolleson (Phoenix)		AZ		2003			100.0	%			283,358				1,352,000				4.77				10.1				16,824,226				4,916,067
18		International Paper Company				Edwardsville (Kansas City)		KS		2014			100.0	%			280,000				1,337,000				4.78				6.4				18,294,108				10,292,790
19		NF&M International		(B)		Monaca (Pittsburgh)		PA		1988			100.0	%			174,802				833,000				4.77				7.8				5,389,424				-0-
		Datatel Resources Corporation		(C)		Monaca (Pittsburgh)		PA		1988			100.0	%			80,856				243,000				3.01				0.7				2,492,919				-0-
20		FedEx Ground Package System, Inc.				Orion		MI		2007			100.0	%			245,633				1,908,000				7.77				6.3				22,885,636				8,309,452
21		Anda Pharmaceuticals, Inc.				Olive Branch (Memphis, TN)		MS		2012			100.0	%			234,660				1,200,000				5.11				5.3				14,550,000				8,464,390
22		UGN, Inc.				Monroe (Cincinnati)		OH		2015			100.0	%			232,200				1,060,000				4.57				12.9				12,937,000				7,842,218
23		FedEx Ground Package System, Inc.				Colorado Springs		CO		2016			100.0	%			225,362				1,832,000				8.13				8.8				28,500,000				18,109,097
24		Caterpillar Logistics Services, Inc.				Griffin (Atlanta)		GA		2006			100.0	%			218,120				1,169,000				5.36				0.7				14,868,857				-0-
25		Fedex Ground Package System, Inc.				Ft Myers		FL		2017			100.0	%			213,672				1,365,000				6.39				9.5				20,800,000				14,381,672
26		FedEx Ground Package System, Inc.				Burlington (Seattle/Everett)		WA		2016			100.0	%			210,445				1,962,000				9.32				13.4				30,226,229				19,365,210
27		FedEx Ground Package System, Inc.				Sauget (St. Louis, MO)		IL		2015			100.0	%			198,773				1,036,000				5.21				12.2				15,204,950				9,426,312
28		Anheuser-Busch, Inc.				Granite City (St. Louis, MO)		IL		2001			100.0	%			184,800				810,000				4.38				4.7				12,578,197				-0-
29		United Technologies Corporation				Carrollton (Dallas)		TX		2010			100.0	%			184,317				1,576,000				8.55				1.8				17,783,930				7,603,252
30		FedEx Ground Package System, Inc.				Spring (Houston)		TX		2014			100.0	%			181,176				1,581,000				8.73				7.5				19,283,798				8,835,303
31		Carlisle Tire & Wheel Company				Edwardsville (Kansas City)		KS		2003			100.0	%			179,280				787,000				4.39				1.2				7,225,401				134,949
32		FedEx Ground Package System, Inc.				Ft. Mill (Charlotte, NC)		SC		2010			100.0	%			176,939				1,415,000				8.00				6.6				15,413,307				1,641,976
33		FedEx Ground Package System, Inc.				Covington (New Orleans)		LA		2016			100.0	%			175,315				1,260,000				7.19				8.3				18,410,000				12,145,156
34		FedEx Ground Package System, Inc.				Livonia (Detroit)		MI		2013			100.0	%			172,005				1,194,000				6.94				5.0				13,762,030				7,211,167
35		Home Depot USA, Inc.				Montgomery (Chicago)		IL		2004			100.0	%			171,200				988,000				5.77				3.3				11,298,367				-0-
36		FedEx Ground Package System, Inc.				Tampa		FL		2004			100.0	%			170,779				1,624,000				9.51				9.3				19,696,227				6,277,403
37		FedEx Ground Package System, Inc.				Edinburg		TX		2011			100.0	%			164,207				1,097,000				6.68				9.5				12,039,014				-0-
38		FedEx Ground Package System, Inc.				Lindale (Tyler)		TX		2015			100.0	%			163,378				725,000				4.44				7.3				9,930,000				6,199,632
39		Bunzl Distribution Midcentral, Inc.				Kansas City		MO		2015			100.0	%			158,417				747,000				4.72				4.5				9,647,403				6,878,520
40		FedEx Ground Package System, Inc.				Oklahoma City		OK		2012			100.0	%			158,340			$	1,048,000				6.62				8.3				12,584,462				4,163,364
41		FedEx Ground Package System, Inc.				Waco		TX		2012			100.0	%			150,710				1,078,000				7.15				8.4				12,546,157				4,663,617
42		Victory Packaging, L.P.				Fayetteville		NC		1997			100.0	%			148,000				496,000				3.35				3.9				5,441,876				-0-
43		FedEx Ground Package System, Inc.				Beltsville (Washington, DC)		MD		2001			100.0	%			144,523				1,426,000				9.87				1.3				14,512,355				-0-
44		FedEx Ground Package System, Inc.				El Paso		TX		2006			100.0	%			144,149				1,345,000				9.33				6.5				12,431,193				-0-
45		FedEx Ground Package System, Inc.				Cocoa		FL		2008			100.0	%			144,138				1,112,000				7.71				7.5				14,127,449				4,906,504
46		FedEx Ground Package System, Inc.				Cudahy (Milwaukee)		WI		2001			100.0	%			139,564				832,000				5.96				10.3				9,382,361				-0-
47		Challenger Lifts, Inc (Snap-On Inc.)				Louisville		KY		2016			100.0	%			137,500				831,000				6.04				9.2				11,304,000				7,103,266
48		FedEx Ground Package System, Inc.				Richfield (Cleveland)		OH		2006			100.0	%			131,152				1,493,000				11.38				7.5				16,435,478				2,904,098
49		General Electric Company				Imperial (Pittsburgh)		PA		2016			100.0	%			125,860				1,315,000				10.45				8.8				19,950,000				12,335,608
50		FedEx Ground Package System, Inc.				Wheeling (Chicago)		IL		2003			100.0	%			123,000				1,279,000				10.40				10.2				18,537,652				-0-
51		FedEx Ground Package System, Inc.				Altoona		PA		2014			100.0	%			122,522				651,000				5.31				6.4				9,008,650				3,831,861
52		FedEx Corporation				Mechanicsville (Richmond)		VA		2001			100.0	%			112,799				541,000				4.80				6.1				7,761,861				-0-
53		FedEx Corporation				Orlando		FL		2008			100.0	%			110,638				666,000				6.02				0.7				8,554,432				4,222,723
54		Style Crest, Inc.				Winston-Salem		NC		2002			100.0	%			106,507				381,000				3.58				4.0				7,238,613				-0-
55		FedEx Ground Package System, Inc.				Cheektowaga (Buffalo)		NY		2000			100.0	%			104,981				966,000				9.20				2.4				10,960,822				188,111
56		FedEx Ground Package System, Inc.				West Chester Twp. (Cincinnati)		OH		1999			100.0	%			103,818				537,000				5.17				6.4				5,733,686				1,948,051
57		FedEx Ground Package System, Inc.				Roanoke		VA		2013			100.0	%			103,402				755,000				7.30				6.1				10,200,000				5,096,468
58		Pittsburgh Glass Works, LLC				O’ Fallon (St. Louis)		MO		1994			100.0	%			102,135				427,000				4.18				1.2				4,245,913				-0-
59		FedEx Ground Package System, Inc.				Green Bay		WI		2013			100.0	%			99,102				468,000				4.72				6.2				6,570,000				3,110,019

 

Second Quarter FY 2017 Supplemental of Monmouth Real Estate Investment Corp. Page 17 of 23

 

 

Property Table
(unaudited)
No		Tenant		City (MSA)		State		Fiscal Year Acquisition		Occup.				Square Footage				Annual Rent				Rent Per sf Occup.				Lease Exp. Term in Years				Undepreciated Cost				Mortgage Balance
60		Holland 1916 Inc.		Liberty (Kansas City)		MO		1998			100.0	%			95,898			$	345,000			$	3.60				2.2			$	7,397,881			$	-0-
61		FedEx Corporation		Jacksonville		FL		1999			100.0	%			95,883				518,000				5.40				2.2				6,258,738				-0-
62		FedEx Corporation		Tampa		FL		2006			100.0	%			95,662				603,000				6.30				0.5				7,603,154				3,779,410
63		FedEx Ground Package System, Inc.		Hanahan (Charleston)		SC		2005			100.0	%			91,776				675,000				7.35				1.3				7,614,653				920,719
64		National Oilwell Varco, Inc.		Houston		TX		2010			100.0	%			91,295				750,000				8.22				5.5				8,083,107				2,910,740
65		FedEx Corporation		Omaha		NE		1999			100.0	%			89,115				446,000				5.00				6.6				5,944,691				-0-
66		Joseph T. Ryerson and Son, Inc.		Elgin (Chicago)		IL		2002			100.0	%			89,052				506,000				5.68				2.8				6,932,916				-0-
67		FedEx Ground Package System, Inc.		Huntsville		AL		2005			100.0	%			88,653				605,000				6.82				9.3				6,661,819				693,750
68		FedEx Ground Package System, Inc.		Ft. Myers		FL		2003			100.0	%			87,500				433,000				4.95				0.2				5,017,447				-0-
69		CHEP USA, Inc.		Roanoke		VA		2007			100.0	%			83,000				497,000				5.99				7.9				7,405,447				2,362,965
70		FedEx Corporation		Bedford Heights (Cleveland)		OH		2007			100.0	%			82,269				408,000				4.96				1.4				6,863,879				-0-
71		RGH Enterprises, Inc.		Halfmoon (Albany)		NY		2012			100.0	%			75,000				601,000				8.01				4.7				5,525,600				-0-
72		FedEx Corporation		Schaumburg (Chicago)		IL		1997			100.0	%			73,500				480,000				6.53				10.0				5,177,940				-0-
73		FedEx Corporation		Romulus (Detroit)		MI		1998			100.0	%			71,933				370,000				5.14				4.2				4,667,506				-0-
74		FedEx Ground Package System, Inc.		Denver		CO		2005			100.0	%			69,865				564,000				8.07				1.3				6,354,051				905,500
75		Tampa Bay Grand Prix		Tampa		FL		2005			100.0	%			68,385				293,000				4.28				3.5				5,677,982				-0-
76		FedEx Ground Package System, Inc.		Colorado Springs		CO		2006			100.0	%			68,370				644,000				9.42				1.5				7,204,472				1,188,636
77		Sherwin-Williams Company		Rockford		IL		2011			100.0	%			66,387				479,000				7.22				6.8				5,551,227				-0-
78		Kellogg Sales Company		Kansas City		MO		2007			100.0	%			65,067				325,000				4.99				1.3				4,800,474				-0-
79		Various Tenants at Retail Shopping Center		Somerset		NJ		1970			100.0	%			64,220				735,000				11.45				na				3,072,880				-0-
80		The American Bottling Company (Dr Pepper Snapple)		Cincinnati		OH		2015			100.0	%			63,840				479,000				7.50				12.5				6,750,000				-0-
81		FedEx Corporation		Chattanooga		TN		2007			100.0	%			60,637				311,000				5.13				0.6				5,016,518				1,434,255
82		SOFIVE, Inc.		Carlstadt (New York, NY)		NJ		2001			100.0	%			60,400				548,000				9.07				7.8				4,903,589				1,821,791
83		FedEx Ground Package System, Inc.		Stewartville (Rochester)		MN		2013			100.0	%			60,398				372,000				6.16				6.2				5,220,000				2,492,467
84		United Technologies Corporation		Richmond		VA		2004			100.0	%			60,000				320,000				5.33				1.7				4,768,309				-0-
85		FedEx Ground Package System, Inc.		Augusta		GA		2005			100.0	%			59,358				453,000				7.63				1.2				5,354,035				669,735
86		Kellogg Sales Company		Newington (Hartford)		CT		2001			100.0	%			54,812				329,000				6.00				2.9				3,478,966				-0-
87		Siemens Real Estate		Lebanon (Cincinnati)		OH		2012			100.0	%			51,130				479,000				9.37				2.1				4,452,425				-0-
88		Kellogg Sales Company		Orangeburg (New York)		NY		1993			100.0	%			50,400				328,000				6.51				0.9				3,895,675				-0-
89		FedEx Corporation		Charlottesville		VA		1999			100.0	%			48,064				329,000				6.85				0.4				4,356,988				-0-
90		FedEx Ground Package System, Inc.		Corpus Christi		TX		2012			100.0	%			46,253				469,000				10.14				4.4				4,764,500				-0-
91		The American Bottling Company (Dr Pepper Snapple)		Tulsa		OK		2014			100.0	%			46,240				260,000				5.62				6.9				3,748,031				1,874,070
92		The Coca-Cola Company		Topeka		KS		2009			100.0	%			40,000				332,000				8.30				4.5				3,679,843				1,243,400
93		Rockwell Collins, Inc.		Rockford		IL		2015			100.0	%			38,833				362,000				9.32				10.3				5,100,000				-0-
94		Keystone Automotive Industries MN, Inc.		Urbandale (Des Moines)		IA		1994			100.0	%			36,270				141,000				3.89				month-to-month				2,161,895				-0-
95		FedEx Corporation		Richland (Jackson)		MS		1994			100.0	%			36,000				120,000				3.33				7.0				1,900,691				-0-
96		FedEx Corporation		Punta Gorda		FL		2007			100.0	%			34,624				304,000				8.78				0.2				4,113,267				1,927,605
97		FedEx Corporation		Lakeland		FL		2006			100.0	%			32,105				155,000				4.83				0.7				1,982,532				-0-
98		FedEx Corporation		Augusta		GA		2006			100.0	%			30,184				121,000				4.01				5.7				1,977,779				-0-
99		Graybar Electric Company		Ridgeland (Jackson)		MS		1993			100.0	%			26,340				109,000				4.14				2.3				1,858,594				-0-
100		Sherwin-Williams Company		Burr Ridge (Chicago)		IL		1997			100.0	%			12,500				161,000				12.88				4.6				1,692,901				-0-
		Total as of 3/31/17									100.0	%			16,553,910			$	95,810,000			$	5.79				7.4			$	1,224,196,253			(C)	$484,047,676
		Acquisitions Subsequent to 3/31/17
101		FedEx Ground Package System, Inc.		Walker (Grand Rapids)		MI		2017			100.0	%			343,483				2,102,000				6.12				14.8				32,120,000				20,875,000
		Pro Forma Total									100.0	%			16,897,393			$	97,912,000			$	5.79				7.5			$	1,256,316,253			$	504,922,676

 

	(A)	Both tenants occupy one property.
	(B)	Both tenants occupy one property. Other than these two properties indicated in footnotes (A) and (B) and the one retail property, all other properties are single-tenant.
	(C)	Does not include unamortized debt issuance costs of $6,449,371.

 

Second Quarter FY 2017 Supplemental of Monmouth Real Estate Investment Corp. Page 18 of 23

 

 

 

Definitions

Investors and analysts following the real estate industry utilize funds from operations (“FFO”), core funds from operations (“Core FFO”), net operating income (“NOI”), Same Property NOI, Same Property Cash NOI, earnings before interest, taxes, depreciation and amortization (“Adjusted 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, Adjusted 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. Adjusted EBITDA provides a tool to further evaluate the ability to incur and service debt and to fund dividends and other cash needs. AFFO provides a supplemental tool to evaluate the Company’s performance. In addition, NOI, Same Property NOI, Same Property Cash NOI, Adjusted 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 the following non-U.S. GAAP measures as follows:

FFO, as defined by The National Association of Real Estate Investment Trusts (NAREIT), to be equal to net income 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. NAREIT created FFO as a non-U.S. GAAP supplemental measure of REIT operating performance and is used by industry anaysts and investors as a supplemental operating performance measure of a REIT.   Core FFO is calculated as FFO plus acquisition costs.   AFFO is calculated as Core FFO plus amortization of financing costs; stock compensation expense, deprecation of corporate office tenant improvements and non-recurring other expenses, less gain on sale of securities transactions; effects of non-cash U.S. GAAP straight-line rent adjustments and recurring capital expenditures. 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 from property operations is calculated as net income attributable to common shareholders, as defined by U.S. GAAP, plus preferred dividends, general & administrative expenses, acquisitions costs, depreciation, amortization of capitalized lease costs & intangible assets and interest expense, including amortization of financing costs, less dividend and interest income and gain on sale of securities transactions. The components of NOI consist of recurring rental and reimbursement revenue, less real estate taxes and operating expenses, such as insurance, utilities, and repairs and maintenance and other expenses.

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

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

Adjusted EBITDA is calculated as net income attributable to common shareholders, as defined by U.S. GAAP, plus preferred dividends, depreciation and amortization, interest expense, including amortization of financing costs, acquisition costs, net amortization of acquired above and below market lease revenue and loss on sale of real estate investment, less gain on sale of securities transactions.

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

 

Second Quarter FY 2017 Supplemental of Monmouth Real Estate Investment Corp. Page 19 of 23

 

 

FOR IMMEDIATE RELEASE

 

May 3, 2017

Contact: Susan Jordan

732-577-9996

 

MONMOUTH REAL ESTATE REPORTS RESULTS FOR

THE SECOND QUARTER ENDED MARCH 31, 2017

 

FREEHOLD, NJ, May 3, 2017........ Monmouth Real Estate Investment Corporation (NYSE:MNR) reported Net Income Attributable to Common Shareholders of $4,843,000 or $0.07 per diluted share for the three months ended March 31, 2017 as compared to $4,980,000 or $0.08 per diluted share for the three months ended March 31, 2016, representing a decrease in Net Income Attributable to Common Shareholders per share of 13%. Core Funds from Operations (Core FFO) were $12,396,000 or $0.17 per diluted share for the three months ended March 31, 2017 as compared to $11,514,000 or $0.18 per diluted share for the three months ended March 31, 2016, representing a decrease in Core FFO per share of 6%. Adjusted Funds from Operations (AFFO), for the three months ended March 31, 2017 were $12,511,000 or $0.18 per diluted share versus $10,745,000 or $0.17 per diluted share for the three months ended March 31, 2016 representing an increase in AFFO per share of 6%.

 

A summary of significant financial information for the three and six months ended March 31, 2017 and 2016 is as follows:

 

		Three Months Ended March 31,
		2017				2016
Rental Revenue		$	23,611,000			$	19,611,000
Reimbursement Revenue		$	3,697,000			$	3,356,000
Net Operating Income (NOI) (1)		$	23,168,000			$	19,188,000
Total Expenses		$	13,785,000			$	12,538,000
Dividend and Interest Income		$	1,439,000			$	1,380,000
Gain on Sale of Securities Transactions, net		$	-0-			$	879,000
Net Income		$	8,425,000			$	7,132,000
Net Income Attributable to Common Shareholders		$	4,843,000			$	4,980,000
Net Income Attributable to Common Shareholders Per Diluted Common Share		$	0.07			$	0.08
Core FFO (1)		$	12,396,000			$	11,514,000
Core FFO per Diluted Common Share (1)		$	0.17			$	0.18
AFFO (1)		$	12,511,000			$	10,745,000
AFFO per Diluted Common Share (1)		$	0.18			$	0.17
Dividends Declared per Common Share		$	0.16			$	0.16
Weighted Avg. Diluted Common Shares Outstanding			71,407,000				64,736,000

 

		Six Months Ended March 31,
		2017				2016
Rental Revenue		$	46,892,000			$	38,676,000
Reimbursement Revenue		$	7,598,000			$	6,550,000
Net Operating Income (NOI) (1)		$	46,148,000			$	37,844,000
Total Expenses		$	27,048,000			$	23,705,000
Dividend and Interest Income		$	2,731,000			$	2,564,000
Gain on Sale of Securities Transactions, net		$	806,000			$	887,000
Net Income		$	18,279,000			$	14,071,000
Net Income Attributable to Common Shareholders		$	10,999,000			$	9,767,000
Net Income Attributable to Common Shareholders Per Diluted Common Share		$	0.16			$	0.15
Core FFO (1)		$	26,253,000			$	22,526,000
Core FFO per Diluted Common Share (1)		$	0.37			$	0.35
AFFO (1)		$	25,450,000			$	21,470,000
AFFO per Diluted Common Share (1)		$	0.36			$	0.34
Dividends Declared per Common Share		$	0.32			$	0.32
Weighted Avg. Diluted Common Shares Outstanding			70,608,000				63,828,000

 

A summary of significant balance sheet information as of March 31, 2017 and September 30, 2016 is as follows:

 

		March 31, 2017				September 30, 2016
Net Real Estate Investments		$	1,062,259,000			$	1,022,483,000
Securities Available for Sale at Fair Value		$	99,405,000			$	73,605,000
Total Assets		$	1,220,220,000			$	1,223,486,000
Fixed Rate Mortgage Notes Payable, net of Unamortized Debt Issuance Costs		$	477,598,000			$	477,476,000
Loans Payable		$	26,000,000			$	80,791,000
Total Shareholders’ Equity		$	699,305,000			$	597,858,000

 

Second Quarter FY 2017 Supplemental of Monmouth Real Estate Investment Corp. Page 20 of 23

 

 

Michael P. Landy, President and CEO, commented on the results for the second quarter of fiscal 2017,

 

“Monmouth continues to make substantial progress. While Net Income Attributable to Common Shareholders per diluted share, (which includes depreciation expense), decreased 13% for the quarter, our AFFO per diluted share, (which does not include depreciation expense), increased to $0.18, representing a 6% increase over the prior year period. We had additional preferred dividend costs this quarter as the result of our recent follow-on offering. As the proceeds from this recent offering are fully put to work we expect our income to offset these costs. Additionally, our solid financial performance continued with the following achievements over the quarter:

 

	●	Increased our Gross Revenue by 18% from $24.3 million in the prior year period to $28.7 million in the current quarter,
	●	Increased our Net Operating Income by 21% from $19.2 million in the prior year period to $23.2 million in the current quarter, and
	●	Increased our Same Property Cash NOI 1.7% over the prior year period.”

 

“Our property portfolio continued to deliver strong results as evidenced by the following accomplishments:

 

	●	Maintained our occupancy rate at 100%, representing a 40 basis point increase over the prior year period,
	●	Increased our weighted average lease maturity by 6%, from 7.0 years in the prior year period to 7.4 years at the end of the current quarter, and
	●	Renewed eight of the thirteen leases scheduled to expire in Fiscal 2017, comprising 1.2 million square feet of the total 1.5 million square feet coming due. The 80% tenant retention rate achieved thus far results in a weighted average lease term of 6.4 years. These eight lease renewals result in a 1.1% decrease in GAAP rents. Of the remaining five leases scheduled to expire this fiscal year, one lease was renewed on a short-term basis, and the tenant for one lease did not renew but is currently leasing our space on a month-to-month basis. The remaining three leases are currently under discussion.”

 

“Our balance sheet strength was further enhanced during the quarter as the result of the following:

 

	●	Repaid seven mortgages totaling $19.8 million with interest rates ranging from 5.25% to 7.36%, unencumbering seven properties with total NOI of approximately $5 million,
	●	Reduced our Net Debt to Total Market Capitalization to 26.7% from 35.3%,
	●	Reduced our Net Debt to Adjusted EBITDA to 5.3x as of the current quarter from 6.7x as of the prior year quarter,
	●	Reduced the weighted average interest rate on our fixed rate debt to 4.37% as of the current quarter end from 4.61% as of the prior year quarter end,
	●	Extended the weighted average debt maturity on our fixed rate debt by 15% to 10.7 years as of the current quarter end from 9.3 years as of the prior year quarter end, and
	●	On March 9, 2017, issued an additional 3,000,000 shares of our 6.125% Series C Preferred Stock, at a public offering price of $24.50 per share resulting in a 6.25% yield. We intend to use a portion of the $71.0 million in net proceeds from this offering to redeem all of the outstanding shares of our 7.875% Series B Preferred Stock with a par value of $57.5 million. This 163 basis point reduction will result in over $900,000 in annual preferred dividend savings.”

 

“Our consistent record of qualitative growth is poised to continue as the result of the following:

 

	●	Subsequent to quarter end, we acquired a brand new Class A built-to-suit property with 343,000 square feet for a cost of $32.1 million, leased for 15 years to FedEx Ground. This facility will generate $2.1 million in annualized rental revenue.
	●	In addition, our acquisition pipeline grew over the quarter to eight brand new Class A build-to-suit properties, representing 2 million square feet, for a total purchase price of approximately $219.2 million.
	●	We have increased our gross leaseable area (GLA) by 16% over the prior year period to 16.9 million square feet currently. Our GLA is expected to grow to 18.9 million square feet upon completion of our acquisition pipeline.”

 

Mr. Landy further stated, “As the result of an excellent business model and strong execution by the entire team, considerable progress continues to be made here at Monmouth. Our long-term results and our current 100% occupancy rate reflect the high-quality income streams that our assets generate. Management continues to capitalize on this protracted period of low interest rates by extending our debt maturities and by reducing our cost of capital throughout our capital structure. We have thoughtfully grown our asset base with a focus on housing the digital economy and an understanding of consumer spending and how it continues to evolve. Our Company is very well capitalized to continue building upon the substantial growth that we have achieved to date.”

 

Second Quarter FY 2017 Supplemental of Monmouth Real Estate Investment Corp. Page 21 of 23

 

 

Monmouth Real Estate Investment Corporation will host its Second Quarter FY 2017 Financial Results Webcast and Conference Call on Thursday, May 4, 2017 at 10:00 a.m. Eastern Time. Senior management will discuss the results, current market conditions and future outlook.

 

The Company’s Second Quarter FY 2017 financial results being released herein will be available on the Company’s website at www.mreic.reit in the Investor Relations section, under Filings and Reports.

 

To participate in the Webcast, select the 2Q2017 Webcast and Earnings Call “Link to Webcast” on the homepage of the Company’s website at www.mreic.reit, in the Highlights section, which is located towards the bottom of the homepage. Interested parties can also participate via conference call by calling toll free 877-510-5852 (domestically) or 412-902-4138 (internationally).

 

The replay of the conference call will be available at 12:00 p.m. Eastern Time on Thursday, May 4, 2017. It will be available until August 1, 2017, and can be accessed by dialing toll free 877-344-7529 (domestically) and 412-317-0088 (internationally) and entering the passcode 10102329. A transcript of the call and the webcast replay will be available at the Company’s website on the Investor Relations homepage, www.mreic.reit.

 

Monmouth Real Estate Investment Corporation, founded in 1968, is one of the oldest public equity REITs in the 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 is a fully integrated and self-managed real estate company, whose property portfolio consists of 101 properties containing a total of approximately 16.9 million rentable square feet, geographically diversified across 30 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.

 

Notes:

 

(1)

Non-U.S. GAAP Information: FFO, as defined by The National Association of Real Estate Investment Trusts (NAREIT), to be equal to net income 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. We define Core FFO as FFO plus acquisition costs. We define AFFO as Core FFO excluding lease termination income, gains or losses on securities transactions, stock based compensation expense, depreciation of corporate office tenant improvements, amortization of deferred financing costs, non-recurring other expense, the effect of non-cash 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 from property operations as net income attributable to common shareholders, as defined by U.S. GAAP, plus preferred dividends, general & administrative expenses, acquisitions costs, depreciation, amortization of capitalized lease costs & intangible assets and interest expense, including amortization of financing costs, less dividend and interest income and gain on sale of securities transactions. The components of NOI consists of recurring rental and reimbursement revenue, less real estate taxes and operating expenses, such as insurance, utilities, and repairs and maintenance and other expenses. Adjusted EBITDA is calculated as net income attributable to common shareholders, as defined by U.S. GAAP, plus preferred dividends; depreciation and amortization; interest expense, including amortization of financing costs; acquisition costs; net amortization of acquired above and below market lease revenue and loss on sale of real estate investment, less gain on sale of securities transactions. 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 and Adjusted EBITDA, should be considered as supplemental measures of operating performance used by real estate investment trusts (REITs). FFO, Core FFO and AFFO per diluted common share exclude historical cost depreciation as an expense and may facilitate the comparison of REITs which have different cost basis. However, other REITs may use different methodologies to calculate FFO, Core FFO and AFFO per diluted share and, accordingly, our FFO, Core FFO and AFFO per diluted share may not be comparable to all other REITs. The items excluded from FFO, Core FFO and AFFO per diluted common share are significant components in understanding the Company’s financial performance.

 

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

 

The following is a reconciliation of the Company’s U.S. GAAP Net Income to the Company’s FFO, Core FFO and AFFO for the three and six months ended March 31, 2017 and 2016:

 

		Three Months Ended								Six Months Ended
			3/31/2017				3/31/2016				3/31/2017				3/31/2016
Net Income Attributable to Common Shareholders		$	4,843,000			$	4,980,000			$	10,999,000			$	9,767,000
Plus: Depreciation Expense (excluding Corporate Office Tenant Improvements)			7,100,000				5,757,000				14,054,000				11,324,000
Plus: Amortization of Intangible Assets			241,000				320,000				509,000				643,000
Plus: Amortization of Capitalized Lease Costs			212,000				192,000				417,000				381,000
Plus: Loss on Sale of Real Estate Investment			-0-				-0-				95,000				-0-
FFO Attributable to Common Shareholders			12,396,000				11,249,000				26,074,000				22,115,000
Plus: Acquisition Costs			-0-				265,000				179,000				411,000
Core FFO Attributable to Common Shareholders			12,396,000				11,514,000				26,253,000				22,526,000
Plus: Stock Compensation Expense			166,000				102,000				266,000				207,000
Plus: Depreciation of Corporate Office Tenant Improvements			39,000				29,000				78,000				57,000
Plus: Amortization of Financing Costs			385,000				239,000				666,000				473,000
Plus: Non-recurring other expense			-0-				400,000				-0-				400,000
Less: Gain on Sale of Securities Transactions			-0-				(879,000	)			(806,000	)			(887,000	)
Less: Effect of Non-cash U.S. GAAP Straight-line Rent Adjustment			(287,000	)			(512,000	)			(630,000	)			(822,000	)
Less: Recurring Capital Expenditures			(188,000	)			(148,000	)			(377,000	)			(484,000	)
AFFO Attributable to Common Shareholders		$	12,511,000			$	10,745,000			$	25,450,000			$	21,470,000

 

Second Quarter FY 2017 Supplemental of Monmouth Real Estate Investment Corp. Page 22 of 23

 

 

The following are the Cash Flows provided (used) by Operating, Investing and Financing Activities for the six months ended March 31, 2017 and 2016:

 

		Six Months Ended
			3/31/2017				3/31/2016
Operating Activities		$	30,846,000			$	28,428,000
Investing Activities			(79,130,000	)			(86,279,000	)
Financing Activities			(24,513,000	)			55,711,000

 

# # # # #

 

Second Quarter FY 2017 Supplemental of Monmouth Real Estate Investment Corp. Page 23 of 23