Exhibit 99.1

 

 

 

 

Table of Contents

 

	Page
Consolidated Balance Sheets	3
Consolidated Statements of Income (Loss)	4
FFO, AFFO and Adjusted EBITDA Reconciliations	5
NOI Reconciliations	6
Financial Highlights	7
Same Property Statistics	9
Consolidated Statements of Cash Flows	10
Capital Structure and Leverage Ratios	11
Debt Maturity	13
Property Table by Tenant	14
Property Table by State	15
Lease Expirations	16
Recent Acquisitions	17
Property Table	18
Definitions	21
Press Release Dated May 6, 2020	22

 

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

 

 

Consolidated Balance Sheets

(in thousands except for per share amounts)

 

		As of				As of
		March 31,				September 30,
		2020				2019
		(unaudited)
ASSETS
Real Estate Investments:
Land		$	245,096			$	239,299
Buildings and Improvements			1,721,612				1,627,219
Total Real Estate Investments			1,966,708				1,866,518
Accumulated Depreciation			(272,372	)			(249,584	)
Real Estate Investments			1,694,336				1,616,934
Cash and Cash Equivalents			35,913				20,179
Securities Available for Sale at Fair Value			99,035				185,250
Tenant and Other Receivables			3,688				1,335
Deferred Rent Receivable			12,340				11,199
Prepaid Expenses			11,915				6,714
Intangible Assets, net of Accumulated Amortization of $16,701 and $15,686, respectively			16,456				14,970
Capitalized Lease Costs, net of Accumulated Amortization of $3,895 and $3,378, respectively			5,931				5,670
Financing Costs, net of Accumulated Amortization of $162 and $1,352, respectively			1,569				144
Other Assets			8,865				9,553
TOTAL ASSETS		$	1,890,048			$	1,871,948
LIABILITIES AND SHAREHOLDERS’ EQUITY
Liabilities:
Fixed Rate Mortgage Notes Payable, net of Unamortized Debt Issuance Costs		$	779,742			$	744,928
Loans Payable			75,000				95,000
Accounts Payable and Accrued Expenses			4,257				3,570
Other Liabilities			22,206				17,407
Total Liabilities			881,205				860,905
COMMITMENTS AND CONTINGENCIES
Shareholders’ Equity:
6.125% Series C Cumulative Redeemable Preferred Stock, $0.01 Par Value Per Share: 21,900 and 16,400 Shares Authorized as of March 31, 2020 and September 30, 2019, respectively; 17,169 and 13,907 Shares Issued and Outstanding as of March 31, 2020 and September 30, 2019, respectively			429,215				347,678
Common Stock, $0.01 Par Value Per Share: 200,000 and 188,040 Shares Authorized as of March 31, 2020 and September 30, 2019, respectively; 97,980 and 96,399 Shares Issued and Outstanding as of March 31, 2020 and September 30, 2019, respectively			980				964
Excess Stock, $0.01 Par Value Per Share: 200,000 Shares Authorized as of March 31, 2020 and September 30, 2019; No Shares Issued or Outstanding as of March 31, 2020 and September 30, 2019			-0-				-0-
Additional Paid-In Capital			578,648				662,401
Undistributed Income			-0-				-0-
Total Shareholders’ Equity			1,008,843				1,011,043
TOTAL LIABILITIES & SHAREHOLDERS’ EQUITY		$	1,890,048			$	1,871,948

 

 

Consolidated Statements of Income (Loss)

(unaudited) (in thousands)

 

		For The								For The
		Three Months Ended								Six Months Ended
		3/31/2020				3/31/2019				3/31/2020				3/31/2019
INCOME:
Rental Revenue		$	35,114			$	32,934			$	69,983			$	65,551
Reimbursement Revenue			6,594				5,447				13,424				11,053
TOTAL INCOME			41,708				38,381				83,407				76,604
EXPENSES:
Real Estate Taxes			5,029				4,163				10,064				8,203
Operating Expenses			1,634				1,673				3,831				3,537
General & Administrative Expenses			2,396				2,252				4,660				4,069
Non-recurring Severance Expense			-0-				-0-				786				-0-
Depreciation			11,475				10,756				22,907				21,234
Amortization of Capitalized Lease Costs and Intangible Assets			767				721				1,521				1,423
TOTAL EXPENSES			21,301				19,565				43,769				38,466
OTHER INCOME (EXPENSE):
Dividend Income			3,404				3,515				6,642				7,882
Unrealized Holding Gains (Losses) Arising During the Periods			(83,075	)			15,568				(86,710	)			(27,059	)
Interest Expense, including Amortization of Financing Costs			(9,050	)			(9,598	)			(18,259	)			(18,603	)
TOTAL OTHER INCOME (EXPENSE)			(88,721	)			9,485				(98,327	)			(37,780	)
NET INCOME (LOSS)			(68,314	)			28,301				(58,689	)			358
Less: Preferred Dividends			6,764				4,480				12,862				8,901
NET INCOME (LOSS) ATTRIBUTABLE TO
COMMON SHAREHOLDERS		$	(75,078	)		$	23,821			$	(71,551	)		$	(8,543	)

 

 

FFO, AFFO and Adjusted EBITDA Reconciliations

(unaudited) (in thousands)

 

		For The								For The
		Three Months Ended								Six Months Ended
		3/31/2020				3/31/2019				3/31/2020				3/31/2019
FFO, AFFO
Net Income (Loss) Attributable to Common Shareholders		$	(75,078	)		$	23,821			$	(71,551	)		$	(8,543	)
Less/Plus: Unrealized Holding (Gains) Losses Arising During the Periods (1)			83,075				(15,568	)			86,710				27,059
Plus: Depreciation Expense (excluding Corporate Office Capitalized Costs)			11,409				10,589				22,788				21,026
Plus: Amortization of Intangible Assets			508				505				1,016				1,005
Plus: Amortization of Capitalized Lease Costs			285				241				557				470
FFO Attributable to Common Shareholders			20,199				19,588				39,520				41,017
Plus: Depreciation of Corporate Office Capitalized Costs			66				167				118				208
Plus: Stock Compensation Expense			114				215				270				344
Plus: Amortization of Financing Costs			322				320				758				637
Plus: Non-recurring Severance Expense			-0-				-0-				786				-0-
Less: Recurring Capital Expenditures			(717	)			(630	)			(936	)			(1,187	)
Less: Effect of Non-cash U.S. GAAP Straight-line Rent Adjustment			(632	)			(488	)			(1,232	)			(825	)
AFFO Attributable to Common Shareholders		$	19,352			$	19,172			$	39,284			$	40,194

 

		For The								For The
		Three Months Ended								Six Months Ended
		3/31/2020				3/31/2019				3/31/2020				3/31/2019
Adjusted EBITDA
Net Income (Loss) Attributable to Common Shareholders		$	(75,078	)		$	23,821			$	(71,551	)		$	(8,543	)
Plus: Preferred Dividends			6,764				4,480				12,862				8,901
Plus: Interest Expense, including Amortization of Financing Costs			9,050				9,598				18,259				18,603
Plus: Depreciation and Amortization			12,242				11,477				24,428				22,658
Plus: Net Amortization of Acquired Above and Below Market Lease Revenue			26				25				51				51
Less/Plus: Unrealized Holding (Gains) Losses Arising During the Periods			83,075				(15,568	)			86,710				27,059
Adjusted EBITDA		$	36,079			$	33,833			$	70,759			$	68,729

 

(1)

Unrealized Holding Gains or Losses Arising During the Periods, if any, were previously reported as an adjustment to Core Funds From Operations (Core FFO).

 

 

NOI Reconciliations

(unaudited) (in thousands)

 

		For The								For The
		Three Months Ended								Six Months Ended
		3/31/2020				3/31/2019				3/31/2020				3/31/2019
Net Operating Income
Net Income (Loss) Attributable to Common Shareholders		$	(75,078	)		$	23,821			$	(71,551	)		$	(8,543	)
Plus: Preferred Dividends			6,764				4,480				12,862				8,901
Plus: General & Administrative Expenses			2,396				2,252				4,660				4,069
Plus: Non-recurring Severance Expense			-0-				-0-				786				-0-
Plus: Depreciation			11,475				10,756				22,907				21,234
Plus: Amortization of Capitalized Lease Costs and Intangible Assets			767				721				1,521				1,423
Plus: Interest Expense, including Amortization of Financing Costs			9,050				9,598				18,259				18,603
Less/Plus: Unrealized Holding (Gains) Losses Arising During the Periods			83,075				(15,568	)			86,710				27,059
Less: Dividend Income			(3,404	)			(3,515	)			(6,642	)			(7,882	)
Net Operating Income – NOI		$	35,045			$	32,545			$	69,512			$	64,864

 

		For The								For The
		Three Months Ended								Six Months Ended
		3/31/2020				3/31/2019				3/31/2020				3/31/2019
Components of Net Operating Income Consists of:
Revenues:
Rental Revenue		$	35,114			$	32,934			$	69,983			$	65,551
Reimbursement Revenue			6,594				5,447				13,424				11,053
Total Rental and Reimbursement Revenue			41,708				38,381				83,407				76,604
Expenses:
Real Estate Taxes			5,029				4,163				10,064				8,203
Operating Expenses			1,634				1,673				3,831				3,537
Total Real Estate Taxes and Operating Expenses			6,663				5,836				13,895				11,740
Net Operating Income – NOI		$	35,045			$	32,545			$	69,512			$	64,864

 

 

Financial Highlights

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

 

		For The												For The
		Three Months Ended												Six Months Ended
		3/31/2020				3/31/2019				Change (%)				3/31/2020				3/31/2019				Change (%)
Weighted Average Common Shares Outstanding
Basic			97,864				92,978				5.3	%			97,370				91,728				6.2	%
Diluted			97,941				93,059				5.2	%			97,466				91,831				6.1	%
Net Income (Loss) Attributable to Common Shareholders		$	(75,078	)		$	23,821				(415.2	)%		$	(71,551	)		$	(8,543	)			(737.5	)%
Basic		$	(0.77	)		$	0.26				(396.2	)%		$	(0.73	)		$	(0.09	)			(711.1	)%
Diluted			(0.77	)			0.26				(396.2	)%			(0.73	)			(0.09	)			(711.1	)%
Net Operating Income – NOI		$	35,045			$	32,545				7.7	%		$	69,512			$	64,864				7.2	%
Basic		$	0.36			$	0.35				2.9	%		$	0.71			$	0.71				0.0	%
Diluted			0.36				0.35				2.9	%			0.71				0.71				0.0	%
Funds From Operations – FFO		$	20,199			$	19,588				3.1	%		$	39,520			$	41,017				(3.6	)%
Basic		$	0.21			$	0.21				0.0	%		$	0.41			$	0.45				(8.9	)%
Diluted			0.21				0.21				0.0	%			0.41				0.45				(8.9	)%
Adjusted Funds From Operations – AFFO		$	19,352			$	19,172				0.9	%		$	39,284			$	40,194				(2.3	)%
Basic		$	0.20			$	0.21				(4.8	)%		$	0.40			$	0.44				(9.1	)%
Diluted			0.20				0.21				(4.8	)%			0.40				0.44				(9.1	)%
Dividends Declared per Common Share		$	0.17			$	0.17							$	0.34			$	0.34
Dividend/AFFO Payout Ratio			85.0	%			81.0	%							85.0	%			77.3	%

 

 

Same Property Statistics

(unaudited) (in thousands except for square feet)

 

		For The Three Months Ended
		3/31/2020								3/31/2019				Change				Change %
Total Square Feet / Total Properties			23,019,627 / 116								21,802,046 / 113				1,217,581				5.6	%
Occupancy Percentage at End of Period			99.4	%							98.9	%			50 bps				0.5	%
Same Property Square Feet / Number of Same Properties							21,513,880 / 112
Same Property Occupancy Percentage at End of Period			99.4	%							98.9	%			50 bps				0.5	%
Same Property Net Operating Income (NOI) (GAAP)		$	32,834							$	32,201			$	633				2.0	%
Reversal of Effect of Non-cash U.S. GAAP Straight-line Rent Adjustment			(435	)							(454	)			19
Same Property Cash NOI		$	32,399							$	31,747			$	652				2.1	%

 

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

 

Reconciliation of Same Property NOI to Total NOI

(unaudited) (in thousands)

 

		For The
		Three Months Ended
		3/31/2020				3/31/2019				Change				Change %
Same Property NOI (GAAP)		$	32,834			$	32,201			$	633				2.0	%
NOI of properties purchased subsequent to December 31, 2018 (one property purchased during fiscal 2019 and two properties purchased during fiscal 2020)			1,700				0
NOI of property expanded subsequent to December 31, 2018 (one property expanded during fiscal 2019)			511				344
Total NOI		$	35,045			$	32,545			$	2,500				7.7	%

 

 

Same Property Statistics

(unaudited) (in thousands except for square feet)

 

		For The Six Months Ended
		3/31/2020								3/31/2019				Change				Change %
Total Square Feet / Total Properties			23,019,627 / 116								21,802,046 / 113				1,217,581				5.6	%
Occupancy Percentage at End of Period			99.4	%							98.9	%			50 bps				0.5	%
Same Property Square Feet / Number of Same Properties							21,040,215 / 110
Same Property Occupancy Percentage at End of Period			99.3	%							98.9	%			40 bps				0.4	%
Same Property Net Operating Income (NOI) (GAAP)		$	61,709							$	61,178			$	531				0.9	%
Reversal of Effect of Non-cash U.S. GAAP Straight-line Rent Adjustment			(878	)							(919	)			41
Same Property Cash NOI		$	60,831							$	60,259			$	572				0.9	%

 

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

 

Reconciliation of Same Property NOI to Total NOI

(unaudited) (in thousands)

 

		For The Six Months Ended
		3/31/2020				3/31/2019				Change				Change %
Same Property NOI (GAAP)		$	61,709			$	61,178			$	531				0.9	%
NOI of properties purchased subsequent to September 30, 2018 (three properties purchased during fiscal 2019 and two properties purchased during fiscal 2020)			6,782				3,084
NOI of property expanded subsequent to September 30, 2018 (one property expanded during fiscal 2019)			1,021				602
Total NOI		$	69,512			$	64,864			$	4,648				7.2	%

 

 

Consolidated Statements of Cash Flows

 

(unaudited)(in thousands)

 

		For The
		Six Months Ended
		3/31/2020				3/31/2019
CASH FLOWS FROM OPERATING ACTIVITIES
Net Income (Loss)		$	(58,689	)		$	358
Noncash Items Included in Net Income (Loss):
Depreciation & Amortization			25,186				23,294
Deferred Straight Line Rent			(1,232	)			(825	)
Stock Compensation Expense			270				344
Securities received as Dividend Income			(745	)			(430	)
Unrealized Holding Losses Arising During the Periods			86,710				27,059
Changes in:
Tenant & Other Receivables			(2,302	)			(401	)
Prepaid Expenses			(5,201	)			(4,041	)
Other Assets & Capitalized Lease Costs			(1,380	)			1,349
Accounts Payable, Accrued Expenses & Other Liabilities			5,237				3,511
NET CASH PROVIDED BY OPERATING ACTIVITIES			47,854				50,218
CASH FLOWS FROM INVESTING ACTIVITIES
Purchase of Real Estate & Intangible Assets			(99,424	)			(113,406	)
Capital Improvements			(3,314	)			(9,205	)
Return of Deposits on Real Estate			1,300				200
Deposits Paid on Acquisitions of Real Estate			(200	)			(1,550	)
Proceeds from Sale of Securities Available for Sale Called for Redemption			250				-0-
Purchase of Securities Available for Sale			-0-				(49,067	)
NET CASH USED IN INVESTING ACTIVITIES			(101,388	)			(173,028	)
CASH FLOWS FROM FINANCING ACTIVITIES
Net Repayments on Loans Payable			(20,000	)			(56,850	)
Proceeds from Fixed Rate Mortgage Notes Payable			61,900				72,500
Principal Payments on Fixed Rate Mortgage Notes Payable			(27,191	)			(29,929	)
Financing Costs Paid on Debt			(2,078	)			(443	)
Proceeds from the Exercise of Stock Options			1,016				567
Proceeds from Underwritten Public Offering of Common Stock, net of offering costs			-0-				132,338
Proceeds from At-The-Market 6.125% Series C Preferred Stock, net of offering costs			80,288				11,282
Proceeds from Issuance of Common Stock in the DRIP, net of Dividend Reinvestments			18,489				32,147
Shares repurchased through the Common Stock Repurchase Plan			(3,209	)			-0-
Preferred Dividends Paid			(12,445	)			(8,839	)
Common Dividends Paid, net of Reinvestments			(27,502	)			(22,929	)
NET CASH PROVIDED BY FINANCING ACTIVITIES			69,268				129,844
NET INCREASE IN CASH AND CASH EQUIVALENTS			15,734				7,034
CASH AND CASH EQUIVALENTS - BEGINNING OF PERIOD			20,179				9,324
CASH AND CASH EQUIVALENTS - END OF PERIOD		$	35,913			$	16,358

 

 

Capital Structure and Leverage Ratios

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

 

		As of				As of				As of
		3/31/2020				3/31/2019				9/30/2019
Fixed Rate Mortgage Notes Payable, net of Unamortized Debt Issuance Costs		$	779,742			$	754,123			$	744,928
Loans Payable			75,000				129,759				95,000
Total Debt			854,742				883,882				839,928
6.125% Series C Cumulative Redeemable Preferred Stock			429,215				299,230				347,678
Common Stock, Additional Paid-In-Capital & Other			579,628				643,882				663,365
Total Shareholders’ Equity			1,008,843				943,112				1,011,043
Total Book Capitalization			1,863,585				1,826,994				1,850,971
Accumulated Depreciation			272,372				228,092				249,584
Total Undepreciated Book Capitalization		$	2,135,957			$	2,055,086			$	2,100,555
Shares Outstanding			97,980				93,869				96,399
Market Price Per Share		$	12.05			$	13.18			$	14.41
Equity Market Capitalization		$	1,180,654			$	1,237,194			$	1,389,107
Total Debt			854,742				883,882				839,928
Total Preferred Stock			429,215				299,230				347,678
Total Market Capitalization		$	2,464,611			$	2,420,306			$	2,576,713
Total Debt		$	854,742			$	883,882			$	839,928
less: Cash and Cash Equivalents			35,913				16,358				20,179
Net Debt		$	818,829			$	867,524			$	819,749
less: Securities Available for Sale at Fair Value (Securities)			99,035				177,359				185,250
Net Debt Less Securities		$	719,794			$	690,165			$	634,499
Net Debt / Total Undepreciated Book Capitalization			38.3	%			42.2	%			39.0	%
Net Debt / Total Market Capitalization			33.2	%			35.8	%			31.8	%
Net Debt Plus Preferred Stock / Total Market Capitalization			50.6	%			48.2	%			45.3	%
Net Debt Less Securities / Total Undepreciated Book Capitalization			33.7	%			33.6	%			30.2	%
Net Debt Less Securities / Total Market Capitalization			29.2	%			28.5	%			24.6	%
Net Debt Less Securities Plus Preferred Stock / Total Market Capitalization			46.6	%			40.9	%			38.1	%
Weighted Average Interest Rate on Fixed Rate Mortgage Debt			4.04	%			4.07	%			4.03	%
Weighted Average Term on Fixed Rate Mortgage Debt			11.3 yrs.				11.6 yrs.				11.3 yrs.
Weighted Average Interest Rate on Fixed Rate Debt (1)			3.94	%			4.07	%			4.03	%
Weighted Average Term on Fixed Rate Debt (1)			10.7 yrs.				11.6 yrs.				11.3 yrs.
Weighted Average Lease Term			7.4 yrs.				8.0 yrs.				7.6 yrs.

 

(1)

For the quarter ended 3/31/20, Fixed Rate Debt (excluding unamortized debt issue costs) includes $788 million in Fixed Rate Mortgage Debt and a $75 million term loan that is fixed with a LIBOR interest rate swap agreement. We obtained the $75 million term loan during the six months ended 3/31/20. Therefore, for prior year quarters presented, the Fixed Rate Debt only includes Fixed Rate Mortgage Debt.

 

 

Capital Structure and Leverage Ratios

(unaudited) (in thousands)

 

		For the Three Months Ended								For the Six Months Ended								Fiscal Year Ended
		3/31/2020				3/31/2019				3/31/2020				3/31/2019				9/30/2019
Net Income (Loss) Attributable to Common Shareholders		$	(75,078	)		$	23,821			$	(71,551	)		$	(8,543	)		$	11,026
Plus: Preferred Dividends			6,764				4,480				12,862				8,901				18,774
Plus: Interest Expense, including Amortization of Financing Costs			9,050				9,598				18,259				18,603				36,912
Plus: Depreciation and Amortization			12,242				11,477				24,428				22,658				45,890
Plus: Net Amortization of Acquired Above and Below Market Lease Revenue			26				25				51				51				103
Less/Plus: Unrealized Holding (Gains) Losses Arising During the Periods			83,075				(15,568	)			86,710				27,059				24,680
Adjusted EBITDA		$	36,079			$	33,833			$	70,759			$	68,729			$	137,385
Interest Expense, including Amortization of Financing Costs		$	9,050			$	9,598			$	18,259			$	18,603			$	36,912
Preferred Dividends			6,764				4,480				12,862				8,901				18,774
Total Fixed Charges		$	15,814			$	14,078			$	31,121			$	27,504			$	55,686
Interest Coverage			4.0 x				3.5 x				3.9 x				3.7 x				3.7 x
Fixed Charge Coverage			2.3 x				2.4 x				2.3 x				2.5 x				2.5 x
Net Debt		$	818,829			$	867,524			$	818,829			$	867,524			$	819,749
Net Debt Less Securities			719,794				690,165				719,794				690,165				634,499
Total Preferred Stock			429,215				299,230				429,215				299,230				347,678
Annualized Adjusted EBITDA			144,316				135,332				141,518				137,458				137,385
Net Debt / Adjusted EBITDA			5.7 x				6.4 x				5.8 x				6.3 x				6.0 x
Net Debt Less Securities / Adjusted EBITDA			5.0 x				5.1 x				5.1 x				5.0 x				4.6 x
Net Debt + Preferred Stock / Adjusted EBITDA			8.6 x				8.6 x				8.8 x				8.5 x				8.5 x
Net Debt Less Securities + Preferred Stock / Adjusted EBITDA			8.0 x				7.3 x				8.1 x				7.2 x				7.1 x

 

 

Debt Maturity

(unaudited) (In thousands)

 

 

Fiscal Year Ended					Mortgages				Loans Payable					Total				% of Total
2020					$	28,156			$	-0-				$	28,156				3.3	%
2021						58,193				-0-					58,193				6.7	%
2022						80,477				-0-					80,477				9.3	%
2023						59,338				-0-					59,338				6.9	%
2024						72,535				-0-					72,535				8.4	%
Thereafter						488,926				75,000		(B)			563,926				65.4	%
Total as of 3/31/2020		(A)			$	787,625			$	75,000				$	862,625				100.0	%
Weighted Average Interest Rate						4.04	%			2.92	%				3.94	%
Weighted Average Term						11.3 yrs.				4.8 yrs.					10.7 yrs.

 

	(A)	Mortgages does not include unamortized debt issuance costs of $7.9 million.
	(B)	Represents a Term Loan maturing January 2025.

 

 

Property Table by Tenant

(unaudited)

 

Tenant				Property Count				Square Footage				Occupied Square Footage				% of Occupied sf				Annual Rent				% of Total Ann. Rent				Rent Per sf Occup.				Undepreciated Cost				Mortgage Balance
FedEx Ground Package System, Inc.					44				8,815,312				8,815,312				38.3	%		$	71,005,000				49.4	%		$	8.05			$	1,008,572,421			$	434,473,387
FedEx Corporation					15				1,095,096				1,095,096				4.8	%			6,720,000				4.7	%			6.14				95,883,586				12,598,966
FedEx Forward Depots, Inc.					1				449,900				449,900				2.0	%			1,394,000				0.9	%			3.10				16,092,852				3,758,157
Total FedEx					60				10,360,308				10,360,308				45.1	%			79,119,000				55.0	%			7.64				1,120,548,859				450,830,510
Amazon.com Services, Inc. (Amazon.com, Inc.)					4				1,370,465				1,370,465				6.0	%			9,709,000				6.8	%			7.08				151,565,650				86,911,455
Milwaukee Electric Tool Corporation					1				861,889				861,889				3.7	%			3,076,000				2.1	%			3.57				36,914,917				18,987,962
Shaw Industries, Inc.					1				831,764				831,764				3.6	%			3,529,000				2.5	%			4.24				56,025,945				29,322,922
ULTA, Inc.					1				671,354				671,354				2.9	%			2,755,000				1.9	%			4.10				37,540,423				18,070,216
Jim Beam Brands Company (Beam Suntory)					1				599,840				599,840				2.6	%			2,092,000				1.5	%			3.49				28,000,000				15,155,360
International Paper Company					2				578,472				578,472				2.5	%			2,639,000				1.8	%			4.56				37,024,608				18,591,412
TreeHouse Private Brands, Inc.					1				558,600				558,600				2.4	%			2,246,000				1.6	%			4.02				26,807,852				14,185,207
Autoneum North America, Inc.					1				413,605				413,605				1.8	%			2,221,000				1.5	%			5.37				21,040,396				13,276,078
B. Braun Medical Inc.					1				399,440				399,440				1.7	%			2,159,000				1.5	%			5.41				30,008,069				17,727,063
UGN, Inc.					1				387,000				387,000				1.7	%			2,088,000				1.5	%			5.40				21,576,756				13,098,389
CBOCS Distribution, Inc. (Cracker Barrel)					1				381,240				381,240				1.7	%			1,475,000				1.0	%			3.87				14,215,126				-0-
Best Buy Warehousing Logistics, LLC					1				368,060				368,060				1.6	%			1,709,000				1.2	%			4.64				19,600,000				8,356,776
Toyota Tsusho America, Inc.					1				350,000				350,000				1.5	%			1,710,000				1.2	%			4.89				25,078,587				16,521,184
Coca-Cola					2				323,358				323,358				1.4	%			1,725,000				1.2	%			5.33				20,504,069				2,888,659
Science Applications International Corporation					1				302,400				302,400				1.3	%			1,683,000				1.2	%			5.57				14,446,471				-0-
Bunzl USA Holdings, Inc.					2				268,778				268,778				1.2	%			1,500,000				1.0	%			5.58				18,731,674				11,275,723
Woodstream Corporation		(A)			1				256,000				256,000				1.1	%			932,000				0.6	%			3.64				8,958,278				-0-
Anda Pharmaceuticals, Inc.					1				234,660				234,660				1.0	%			1,215,000				0.8	%			5.18				14,550,000				6,596,916
United Technologies Corporation					2				223,150				223,150				1.0	%			1,507,000				1.0	%			6.75				23,594,917				5,185,920
Mickey Thompson Performance Tires and Wheels (Cooper Tire)					1				219,765				219,765				1.0	%			1,523,000				1.1	%			6.93				18,934,065				11,149,989
Rinnai America Corporation					1				218,120				218,120				0.9	%			851,000				0.6	%			3.90				15,082,217				-0-
Anheuser-Busch, Inc.					1				184,800				184,800				0.8	%			843,000				0.6	%			4.56				12,697,848				-0-
Carlisle Tire & Wheel Company					1				179,280				179,280				0.8	%			765,000				0.5	%			4.27				7,232,986				-0-
NF&M International, Inc.		(B)			1				174,802				174,802				0.8	%			841,000				0.6	%			4.81				5,411,182				-0-
Home Depot USA, Inc.					1				171,200				171,200				0.7	%			1,064,000				0.7	%			6.21				11,303,317				-0-
Magna Seating of America, Inc.					1				153,000				153,000				0.7	%			1,197,000				0.8	%			7.82				17,557,830				9,400,000
Victory Packaging, L.P.					1				148,000				148,000				0.6	%			514,000				0.4	%			3.47				5,455,379				-0-
Challenger Lifts, Inc. (Snap-On Inc.)					1				137,500				137,500				0.6	%			852,000				0.6	%			6.20				11,304,000				5,913,698
Altec Industries, Inc.		(A)			1				126,880				126,880				0.6	%			376,000				0.3	%			2.96				4,439,947				-0-
General Electric Company					1				125,860				125,860				0.5	%			1,334,000				0.9	%			10.60				19,964,283				10,000,245
Keurig Dr Pepper					2				110,080				110,080				0.5	%			753,000				0.5	%			6.84				10,498,031				1,483,106
Style Crest, Inc.					1				106,507				106,507				0.5	%			398,000				0.3	%			3.74				7,263,673				-0-
Sonwil Distribution Center, Inc.					1				104,981				104,981				0.5	%			630,000				0.4	%			6.00				10,960,823				-0-
Pittsburgh Glass Works, LLC					1				102,135				102,135				0.4	%			450,000				0.3	%			4.41				4,249,615				-0-
Dakota Bodies, LLC					1				96,687				96,687				0.4	%			378,000				0.3	%			3.91				7,785,314				-0-
National Oilwell Varco, Inc.					1				91,295				91,295				0.4	%			796,000				0.6	%			8.72				8,163,278				1,377,267
Joseph T. Ryerson and Son, Inc.					1				89,052				89,052				0.4	%			514,000				0.4	%			5.77				7,066,732				-0-
CHEP USA, Inc.					1				83,000				83,000				0.4	%			506,000				0.4	%			6.10				7,463,672				-0-
Sherwin-Williams Company					2				78,887				78,887				0.3	%			648,000				0.5	%			8.21				7,258,078				-0-
RGH Enterprises, Inc. (Cardinal Health)					1				75,000				75,000				0.3	%			619,000				0.4	%			8.25				5,525,600				-0-
Tampa Bay Grand Prix					1				68,385				68,385				0.3	%			361,000				0.3	%			5.28				5,677,982				-0-
Various Tenants at Retail Shopping Center					1				64,220				62,440				0.3	%			784,000				0.5	%			12.56				3,139,564				-0-
SOFIVE, Inc.					1				60,400				60,400				0.3	%			633,000				0.4	%			10.48				5,296,752				1,318,819
Locke Supply Co.					1				60,000				60,000				0.3	%			325,000				0.2	%			5.42				4,914,955				-0-
Siemens Real Estate					1				51,130				51,130				0.1	%			459,000				0.3	%			8.98				4,452,425				-0-
Foundation Building Materials, LLC					1				36,270				36,270				0.1	%			178,000				0.1	%			4.91				2,543,770				-0-
Graybar Electric Company					1				26,340				26,340				0.1	%			121,000				0.1	%			4.59				2,312,027				-0-
Vacant		(B)			2				135,668				-0-				0.0	%			-0-				0.0	%			-0-				6,009,731				-0-
Total as of 3/31/20					116				23,019,627				22,882,179				99.4	%		$	143,802,000				100.0	%		$	6.28			$	1,966,697,673		(C)	$	787,624,876

 

	(A)	Woodstream Corporation and Altec Industries, Inc. are located at one property and, therefore, are counted as one property in the Property Count Total.
	(B)	NF&M International is located in a 255,658 square foot industrial park in Monaca (Pittsburgh), PA, of which 80,856 square feet is vacant. This industrial park is counted as one property in the Property Count Total.
		Other than two properties indicated in footnotes (A) and (B) and one retail property, all properties are single-tenant.
	(C)	Does not include unamortized debt issuance costs of $7,883,277.

 

 

Property Table by State

(unaudited)

 

State		Property Count				Square Footage				Occupied Square Footage				% of Total sf				Annual Rent				% of Total Ann. Rent				Rent Per sf Occup.				Undepreciated Cost				Mortgage Balance
Florida			13				2,211,583				2,211,583				9.6	%		$	15,817,000				11.0	%		$	7.15			$	227,294,042			$	87,155,584
Indiana			4				1,964,923				1,964,923				8.5	%			11,132,000				7.7	%			5.67				167,487,002				95,387,657
Ohio			10				1,858,506				1,858,506				8.1	%			11,218,000				7.8	%			6.04				137,086,907				52,569,190
Texas			10				1,781,967				1,781,967				7.7	%			13,788,000				9.6	%			7.74				183,030,482				69,218,487
Georgia			6				1,639,696				1,639,696				7.1	%			10,551,000				7.3	%			6.43				166,213,681				82,651,157
South Carolina			6				1,371,721				1,371,721				6.0	%			10,309,000				7.2	%			7.52				129,916,784				53,457,653
Kentucky			3				1,295,940				1,295,940				5.6	%			5,190,000				3.6	%			4.00				66,111,852				35,254,265
Mississippi			4				1,158,889				1,158,889				5.0	%			4,532,000				3.2	%			3.91				55,677,635				25,584,878
Illinois			9				958,045				958,045				4.2	%			6,222,000				4.3	%			6.49				82,801,814				7,642,546
North Carolina			4				939,706				939,706				4.1	%			5,686,000				4.0	%			6.05				85,815,885				38,843,474
Tennessee			3				891,777				891,777				3.9	%			3,188,000				2.2	%			3.57				35,677,250				3,758,157
Michigan			4				833,054				833,054				3.6	%			5,577,000				3.9	%			6.69				73,374,059				23,112,149
Kansas			4				813,043				813,043				3.5	%			4,678,000				3.3	%			5.75				60,943,937				26,607,739
Missouri			4				740,119				740,119				3.2	%			2,900,000				2.0	%			3.92				35,436,389				6,365,378
Oklahoma			4				614,941				614,941				2.7	%			3,975,000				2.8	%			6.46				54,961,021				26,803,706
New York			3				518,565				518,565				2.3	%			3,572,000				2.5	%			6.89				51,587,223				19,429,142
Pennsylvania			3				504,040				423,184				2.2	%			2,826,000				2.0	%			6.68				36,901,415				12,639,230
New Jersey			3				471,765				469,985				2.0	%			6,723,000				4.7	%			14.30				92,423,939				52,687,945
Alabama			2				451,595				451,595				2.0	%			2,650,000				1.8	%			5.87				39,714,135				17,270,843
Virginia			5				407,265				407,265				1.8	%			2,456,000				1.7	%			6.03				34,860,124				3,652,516
Colorado			2				295,227				295,227				1.3	%			2,441,000				1.7	%			8.27				35,683,647				15,106,669
Arizona			1				283,358				283,358				1.2	%			1,393,000				1.0	%			4.92				16,824,226				2,450,448
Wisconsin			2				238,666				238,666				1.0	%			1,295,000				0.9	%			5.43				16,377,221				2,141,856
Washington			1				210,445				210,445				0.9	%			1,962,000				1.4	%			9.32				30,320,686				16,058,668
Louisiana			1				175,315				175,315				0.8	%			1,270,000				0.9	%			7.24				18,425,875				10,059,120
Maryland			1				148,881				148,881				0.6	%			1,455,000				1.0	%			9.77				14,512,355				-0-
Nebraska			1				89,115				89,115				0.4	%			446,000				0.2	%			5.00				5,963,626				-0-
Minnesota			1				60,398				60,398				0.3	%			372,000				0.2	%			6.16				5,223,944				1,716,419
Connecticut			1				54,812				-0-				0.2	%			-0-				0.0	%			-0-				3,506,747				-0-
Iowa			1				36,270				36,270				0.2	%			178,000				0.1	%			4.91				2,543,770				-0-
Total as of 3/31/20			116				23,019,627				22,882,179				100.0	%		$	143,802,000				100.0	%		$	6.28			$	1,966,697,673		(A)	$	787,624,876

 

(A)

Does not include unamortized debt issuance costs of $7,883,277.

 

 

Lease Expirations

(unaudited)

 

Fiscal Year					Property Count				Square Footage				% of Total Sf				Annual Rent				% of Total Ann. Rent				Rent Per sf Occup.				Lease Exp. Term in Years				Undepreciated Cost				Mortgage Balance
2020(B)						1				98,045				0.4	%		$	490,000				0.3	%		$	5.00				0.2			$	-0-			$	-0-
2021(A)						10				1,206,723				5.2	%			5,560,000				3.9	%			4.61				1.2				69,813,125				6,803,589
2022						7				1,152,006				5.0	%			6,372,000				4.4	%			5.53				1.9				78,920,819				20,268,373
2023(A)						14				1,840,004				8.0	%			10,612,000				7.4	%			5.77				3.2				128,514,559				18,177,152
2024						13				1,887,034				8.2	%			11,722,000				8.2	%			6.21				4.1				137,370,052				23,574,582
2025(A)						10				2,459,470				10.7	%			12,462,000				8.7	%			5.07				5.1				164,430,576				65,735,019
2026						8				1,078,913				4.7	%			8,331,000				5.8	%			7.72				6.1				113,183,322				31,020,612
2027						12				2,373,001				10.3	%			13,049,000				9.1	%			5.50				7.4				185,550,657				65,599,896
2028						11				2,571,915				11.2	%			13,970,000				9.7	%			5.43				8.0				182,446,253				63,454,104
2029						9				1,830,929				8.0	%			10,548,000				7.3	%			5.76				9.1				147,728,409				63,010,860
2030						5				1,026,032				4.5	%			8,177,000				5.7	%			7.97				10.0				119,468,217				59,863,914
2031						3				963,269				4.2	%			7,152,000				5.0	%			7.42				11.1				104,617,800				59,109,378
2032(B)						8				2,131,983				9.3	%			18,803,000				13.1	%			8.82				12.1				290,952,566				167,404,925
2033						2				639,068				2.8	%			6,486,000				4.5	%			10.15				13.1				106,803,506				64,469,981
2034						3				1,561,347				6.8	%			9,284,000				6.5	%			5.95				14.0				127,748,517				79,132,491
Various tenants at retail shopping center						1				64,220				0.2	%			784,000				0.4	%			12.56				-0-				3,139,564				-0-
Vacant		(A)				2				135,668				0.5	%			-0-				0.0	%			-0-				-0-				6,009,731				-0-
Total as of 3/31/20						116				23,019,627				100.0	%		$	143,802,000				100.0	%		$	6.28				7.4			$	1,966,697,673		(C)	$	787,624,876

 

	(A)	Included in 2021 is Woodstream Corporation and included in 2023 is Altec Industries which both occupy one property. Included in 2025 is NF&M International, which occupies 174,802 square feet of a 255,658 square foot Industrial Park. The remaining 80,856 square feet is included in Vacant. Each of these properties are counted as one property in the Property Count Total. Other than these properties and one retail property, all properties are single-tenant.
	(B)	Included in 2020 and 2032 is a property located in Aiken (Augusta, GA), SC leased to Autoneum North America, Inc. This property contains two leasable structures with two different lease terms. Both are counted as one property in the property count total.
	(C)	Does not include unamortized debt issuance costs of $7,883,277.

 

 

Recent Acquisitions During Fiscal 2020

(unaudited)

 

No		Tenant		City (MSA)		State			Date of Acquisition				Square Footage				Annual Rent				Rent Per sf Occup.				Lease Expiration				Purchase Price				Initial Mortgage Balance
1		Amazon.com Services, Inc.		Greenwood (Indianapolis)		IN				10/10/19				615,747			$	4,950,000			$	8.04				8/31/34			$	81,500,000			$	52,500,000
2		Magna Seating of America, Inc.		Lancaster (Columbus)		OH				3/30/20				153,000				1,197,000				7.82				1/31/30				17,900,000				9,400,000
		As of 3/31/20												768,747			$	6,147,000			$	8.00							$	99,400,000			$	61,900,000

 

 

Property Table

(unaudited)

 

												Fiscal Year							Square				Annual				Rent Per sf				Lease Exp. Term in				Undepreciated				Mortgage
No		Tenant					City (MSA)		State			Acquisition			Occup.				Footage				Rent				Occup.				Years				Cost				Balance
1		Milwaukee Electric Tool Corporation					Olive Branch (Memphis, TN)		MS			2013				100.0	%			861,889			$	3,076,000			$	3.57				8.3			$	36,914,917			$	18,987,962
2		Shaw Industries, Inc.					Savannah		GA			2018				100.0	%			831,764				3,529,000				4.24				7.5				56,025,945				29,322,922
3		ULTA, Inc.					Greenwood (Indianapolis)		IN			2015				100.0	%			671,354				2,755,000				4.10				5.3				37,540,423				18,070,216
4		Amazon.com Services, Inc. (Amazon.com, Inc.)					Greenwood (Indianapolis)		IN			2020				100.0	%			615,747				4,950,000				8.04				14.4				79,363,910				51,848,895
5		Jim Beam Brands Company (Beam Suntory)					Frankfort (Lexington)		KY			2015				100.0	%			599,840				2,092,000				3.49				4.8				28,000,000				15,155,360
6		TreeHouse Private Brands, Inc.					Buckner (Louisville)		KY			2014				100.0	%			558,600				2,246,000				4.02				13.6				26,807,852				14,185,207
7		FedEx Forward Depots, Inc.					Memphis		TN			2010				100.0	%			449,900				1,394,000				3.10				9.2				16,092,852				3,758,157
8		Autoneum North America, Inc.		(B)			Aiken (Augusta, GA)		SC			2017				100.0	%			315,560				1,731,000				5.49				12.1				21,040,396				13,276,078
		Autoneum North America, Inc.					Aiken (Augusta, GA)		SC			2017				100.0	%			98,045				490,000				5.00				0.2				-0-				-0-
9		B. Braun Medical Inc.					Daytona Beach		FL			2018				100.0	%			399,440				2,159,000				5.41				8.0				30,008,069				17,727,063
10		UGN, Inc.					Monroe (Cincinnati)		OH			2015				100.0	%			387,000				2,088,000				5.40				13.9				21,576,756				13,098,389
11		Woodstream Corporation					St. Joseph		MO			2001				100.0	%			256,000				932,000				3.64				1.5				8,958,278				-0-
		Altec Industries, Inc.					St. Joseph		MO			2001				100.0	%			126,880				376,000				2.96				2.9				4,439,947				-0-
12		CBOCS Distribution, Inc. (Cracker Barrel)					Lebanon (Nashville)		TN			2011				100.0	%			381,240				1,475,000				3.87				4.3				14,215,126				-0-
13		FedEx Ground Package System, Inc.					Braselton (Atlanta)		GA			2018				100.0	%			373,750				3,782,000				10.12				12.9				60,227,126				36,887,372
14		Best Buy Warehousing Logistics, LLC					Streetsboro (Cleveland)		OH			2012				100.0	%			368,060				1,709,000				4.64				1.8				19,600,000				8,356,776
15		Amazon.com Services, Inc. (Amazon.com, Inc.)					Mobile		AL			2018				100.0	%			362,942				2,045,000				5.63				8.7				33,052,316				17,270,843
16		FedEx Ground Package System, Inc.					Concord (Charlotte)		NC			2017				100.0	%			354,482				2,537,000				7.16				12.2				40,043,145				22,786,022
17		FedEx Ground Package System, Inc.					Mesquite (Dallas)		TX			2017				100.0	%			351,874				3,203,000				9.10				12.0				49,880,493				28,268,492
18		Toyota Tsusho America, Inc.					Lafayette		IN			2019				100.0	%			350,000				1,710,000				4.89				9.3				25,078,587				16,521,184
19		FedEx Ground Package System, Inc.					Trenton		NJ			2019				100.0	%			347,145				5,306,000				15.28				12.3				83,987,622				51,369,126
20		FedEx Ground Package System, Inc.					Walker (Grand Rapids)		MI			2017				100.0	%			343,483				2,105,000				6.13				11.8				31,654,987				17,797,468
21		FedEx Ground Package System, Inc.					Hamburg (Buffalo)		NY			2017				100.0	%			338,584				2,323,000				6.86				11.0				35,100,800				19,429,142
22		FedEx Ground Package System, Inc.					Concord (Charlotte)		NC			2016				100.0	%			330,717				2,237,000				6.76				5.3				33,053,688				16,057,452
23		FedEx Ground Package System, Inc.					Indianapolis		IN			2014				100.0	%			327,822				1,717,000				5.24				7.6				25,504,083				8,947,362
24		FedEx Ground Package System, Inc.					Olathe (Kansas City)		KS			2016				100.0	%			313,763				2,210,000				7.04				11.2				31,737,000				18,142,152
25		FedEx Ground Package System, Inc.					Davenport (Orlando)		FL			2016				100.0	%			310,922				2,619,000				8.42				11.1				37,780,000				21,538,084
26		FedEx Ground Package System, Inc.					Ft. Worth (Dallas)		TX			2015				100.0	%			304,608				2,387,000				7.84				10.1				35,367,419				18,617,264
27		Science Applications International Corporation					Hanahan (Charleston)		SC			2005				100.0	%			302,400				1,683,000				5.57				3.6				14,446,471				-0-
28		Amazon.com Services, Inc. (Amazon.com, Inc.)					Oklahoma City		OK			2018				100.0	%			300,000				1,925,000				6.42				7.6				29,878,942				17,791,717
29		International Paper Company					Kenton		OH			2017				100.0	%			298,472				1,268,000				4.25				7.4				18,730,500				10,564,036
30		FedEx Ground Package System, Inc.					Jacksonville		FL			2015				100.0	%			297,579				1,998,000				6.71				9.8				30,925,530				14,469,163
31		Western Container Corp. (Coca-Cola)					Tolleson (Phoenix)		AZ			2003				100.0	%			283,358				1,393,000				4.92				7.1				16,824,226				2,450,448
32		International Paper Company					Edwardsville (Kansas City)		KS			2014				100.0	%			280,000				1,371,000				4.90				3.4				18,294,108				8,027,376
33		FedEx Ground Package System, Inc.					Charleston		SC			2018				100.0	%			265,318				2,704,000				10.19				13.3				46,576,380				27,582,609
34		NF&M International, Inc.					Monaca (Pittsburgh)		PA			1988				68.4	%			255,658				841,000				4.81				4.8				7,914,166				-0-
35		FedEx Ground Package System, Inc.					Orion		MI			2007				100.0	%			245,633				1,908,000				7.77				3.2				22,890,124				-0-
36		FedEx Ground Package System, Inc.					Homestead (Miami)		FL			2017				100.0	%			237,756				2,282,000				9.60				12.0				37,911,556				21,308,773
37		Anda Pharmaceuticals, Inc.					Olive Branch (Memphis, TN)		MS			2012				100.0	%			234,660				1,215,000				5.18				2.3				14,550,000				6,596,916
38		FedEx Ground Package System, Inc.					Colorado Springs		CO			2016				100.0	%			225,362				1,832,000				8.13				5.8				29,320,066				15,106,669
39		Mickey Thompson Performance Tires and Wheels (Cooper Tire)					Stow		OH			2017				100.0	%			219,765				1,523,000				6.93				7.4				18,934,065				11,149,989
40		Rinnai America Corporation					Griffin (Atlanta)		GA			2006				100.0	%			218,120				851,000				3.90				0.8				15,082,217				-0-
41		FedEx Ground Package System, Inc.					Ft. Myers		FL			2017				100.0	%			213,672				1,418,000				6.64				7.4				21,684,310				12,112,501
42		FedEx Ground Package System, Inc.					Burlington (Seattle/Everett)		WA			2016				100.0	%			210,445				1,962,000				9.32				10.4				30,320,686				16,058,668
43		FedEx Ground Package System, Inc.					Sauget (St. Louis, MO)		IL			2015				100.0	%			198,773				1,036,000				5.21				9.2				15,204,950				7,642,546
44		Anheuser-Busch, Inc.					Granite City (St. Louis, MO)		IL			2001				100.0	%			184,800				843,000				4.56				1.7				12,697,848				-0-
45		Carrier Enterprise, LLC (United Technologies)					Carrollton (Dallas)		TX			2010				100.0	%			184,317				1,140,000				6.18				3.8				18,494,917				5,185,920
46		FedEx Ground Package System, Inc.					Spring (Houston)		TX			2014				100.0	%			181,176				1,581,000				8.73				4.5				19,328,922				6,958,081
47		Carlisle Tire & Wheel Company					Edwardsville (Kansas City)		KS			2003				100.0	%			179,280				765,000				4.27				3.3				7,232,986				-0-
48		FedEx Ground Package System, Inc.					Ft. Mill (Charlotte, NC)		SC			2010				100.0	%			176,939				1,598,000				9.03				8.4				17,063,643				-0-
49		FedEx Ground Package System, Inc.					Covington (New Orleans)		LA			2016				100.0	%			175,315				1,270,000				7.24				5.3				18,425,875				10,059,120
50		FedEx Ground Package System, Inc.					Livonia (Detroit)		MI			2013				100.0	%			172,005				1,194,000				6.94				2.0				13,879,697				5,314,681

 

 

Property Table

(unaudited)

 

																											Rent				Lease Exp.
												Fiscal Year							Square				Annual				Per sf				Term in				Undepreciated				Mortgage
No		Tenant					City (MSA)		State			Acquisition			Occup.				Footage				Rent				Occup.				Years				Cost				Balance
51		Home Depot USA, Inc.					Montgomery (Chicago)		IL			2004				100.0	%			171,200			$	1,064,000			$	6.21				2.8			$	11,303,317			$	-0-
52		FedEx Ground Package System, Inc.					Tampa		FL			2004				100.0	%			170,779				1,624,000				9.51				6.3				19,745,245				-0-
53		FedEx Ground Package System, Inc.					Edinburg		TX			2011				100.0	%			164,207				1,097,000				6.68				6.5				12,039,014				-0-
54		FedEx Ground Package System, Inc.					Lindale (Tyler)		TX			2015				100.0	%			163,378				725,000				4.44				4.3				9,965,550				5,037,130
55		Bunzl Distribution Midcentral, Inc.					Kansas City		MO			2015				100.0	%			158,417				764,000				4.82				1.5				10,003,235				6,365,378
56		FedEx Ground Package System, Inc.					Oklahoma City		OK			2012				100.0	%			158,340				1,048,000				6.62				5.3				12,605,609				2,618,538
57		Magna Seating of America, Inc.					Lancaster (Columbus)		OH			2020				100.0	%			153,000				1,197,000				7.82				9.8				17,557,830				9,400,000
58		FedEx Ground Package System, Inc.					Waco		TX			2012				100.0	%			150,710				1,078,000				7.15				5.4				12,551,368				3,774,333
59		FedEx Ground Package System, Inc.					Beltsville (Washington, DC)		MD			2001				100.0	%			148,881				1,455,000				9.77				8.3				14,512,355				-0-
60		Victory Packaging, L.P.					Fayetteville		NC			1997				100.0	%			148,000				514,000				3.47				0.9				5,455,379				-0-
61		FedEx Ground Package System, Inc.					El Paso		TX			2006				100.0	%			144,149				1,345,000				9.33				3.5				12,431,192				-0-
62		FedEx Ground Package System, Inc.					Cocoa		FL			2008				100.0	%			144,138				1,112,000				7.71				4.5				14,127,449				-0-
63		FedEx Ground Package System, Inc.					Cudahy (Milwaukee)		WI			2001				100.0	%			139,564				827,000				5.93				7.3				9,807,221				-0-
64		Challenger Lifts, Inc. (Snap-On Inc.)					Louisville		KY			2016				100.0	%			137,500				852,000				6.20				6.2				11,304,000				5,913,698
65		FedEx Ground Package System, Inc.					Richfield (Cleveland)		OH			2006				100.0	%			131,152				1,493,000				11.38				4.5				16,447,178				-0-
66		FedEx Ground Package System, Inc.					Savannah		GA			2019				100.0	%			126,520				1,755,000				13.87				8.6				27,531,560				16,440,863
67		General Electric Company					Imperial (Pittsburgh)		PA			2016				100.0	%			125,860				1,334,000				10.60				5.8				19,964,283				10,000,245
68		FedEx Ground Package System, Inc.					Wheeling (Chicago)		IL			2003				100.0	%			123,000				1,272,000				10.34				7.2				18,992,949				-0-
69		FedEx Ground Package System, Inc.					Altoona		PA			2014				100.0	%			122,522				651,000				5.31				3.4				9,022,966				2,638,985
70		FedEx Corporation					Charleston		SC			2018				100.0	%			121,683				1,314,000				10.80				12.4				21,519,412				12,598,966
71		FedEx Corporation					Mechanicsville (Richmond)		VA			2001				100.0	%			112,799				541,000				4.80				3.1				7,819,488				-0-
72		FedEx Corporation					Orlando		FL			2008				100.0	%			110,638				666,000				6.02				7.7				8,793,224				-0-
73		Bunzl Distribution Oklahoma, Inc.					Oklahoma City		OK			2017				100.0	%			110,361				736,000				6.67				4.4				8,728,439				4,910,345
74		Style Crest, Inc.					Winston-Salem		NC			2002				100.0	%			106,507				398,000				3.74				1.0				7,263,673				-0-
75		Sonwil Distribution Center, Inc.					Cheektowaga (Buffalo)		NY			2000				100.0	%			104,981				630,000				6.00				1.8				10,960,823				-0-
76		FedEx Ground Package System, Inc.					West Chester Twp. (Cincinnati)		OH			1999				100.0	%			103,818				556,000				5.36				3.4				5,733,686				-0-
77		FedEx Ground Package System, Inc.					Roanoke		VA			2013				100.0	%			103,402				755,000				7.30				3.1				10,200,000				3,652,516
78		Pittsburgh Glass Works, LLC					O’ Fallon (St. Louis)		MO			1994				100.0	%			102,135				450,000				4.41				1.2				4,249,615				-0-
79		FedEx Ground Package System, Inc.					Green Bay		WI			2013				100.0	%			99,102				468,000				4.72				3.2				6,570,000				2,141,856
80		Dakota Bodies, LLC					Liberty (Kansas City)		MO			1998				100.0	%			96,687				378,000				3.91				6.1				7,785,314				-0-
81		FedEx Corporation					Jacksonville		FL			1999				100.0	%			95,883				536,000				5.59				9.2				6,584,384				-0-
82		FedEx Corporation					Tampa		FL			2006				100.0	%			95,662				603,000				6.30				7.7				7,879,557				-0-
83		Amazon.com Services, Inc.					Hanahan (Charleston)		SC			2005				100.0	%			91,776				789,000				8.60				9.3				9,270,482				-0-
84		National Oilwell Varco, Inc.					Houston		TX			2010				100.0	%			91,295				796,000				8.72				9.5				8,163,278				1,377,267
85		FedEx Corporation					Omaha		NE			1999				100.0	%			89,115				446,000				5.00				3.6				5,963,626				-0-
86		Joseph T. Ryerson and Son, Inc.					Elgin (Chicago)		IL			2002				100.0	%			89,052				514,000				5.77				4.8				7,066,732				-0-
87		FedEx Ground Package System, Inc.					Huntsville		AL			2005				100.0	%			88,653				605,000				6.82				6.3				6,661,819				-0-
88		CHEP USA, Inc.					Roanoke		VA			2007				100.0	%			83,000				506,000				6.10				4.9				7,463,672				-0-
89		FedEx Corporation					Bedford Heights (Cleveland)		OH			2007				100.0	%			82,269				438,000				5.32				8.4				7,304,467				-0-
90		RGH Enterprises, Inc. (Cardinal Health)					Halfmoon (Albany)		NY			2012				100.0	%			75,000				619,000				8.25				1.7				5,525,600				-0-
91		FedEx Corporation					Schaumburg (Chicago)		IL			1997				100.0	%			73,500				478,000				6.50				7.0				5,177,940				-0-
92		FedEx Corporation					Romulus (Detroit)		MI			1998				100.0	%			71,933				370,000				5.14				1.2				4,949,251				-0-
93		FedEx Ground Package System, Inc.					Denver		CO			2005				100.0	%			69,865				609,000				8.72				5.6				6,363,581				-0-
94		Tampa Bay Grand Prix					Tampa		FL			2005				100.0	%			68,385				361,000				5.28				7.5				5,677,982				-0-
95		Sherwin-Williams Company					Rockford		IL			2011				100.0	%			66,387				486,000				7.32				3.8				5,551,227				-0-
96		Various Tenants at Retail Shopping Center					Somerset		NJ			1970				97.0	%			64,220				784,000				12.56				na				3,139,564				-0-
97		Keurig Dr Pepper					Cincinnati		OH			2015				100.0	%			63,840				487,000				7.63				9.5				6,750,000				-0-
98		FedEx Corporation					Chattanooga		TN			2007				100.0	%			60,637				319,000				5.26				2.6				5,369,272				-0-
99		SOFIVE, Inc.					Carlstadt (New York, NY)		NJ			2001				100.0	%			60,400				633,000				10.48				9.8				5,296,752				1,318,819
100		FedEx Ground Package System, Inc.					Stewartville (Rochester)		MN			2013				100.0	%			60,398				372,000				6.16				3.2				5,223,944				1,716,419
101		Locke Supply Co.					Richmond		VA			2004				100.0	%			60,000				325,000				5.42				12.1				4,914,955				-0-

 

 

Property Table

(unaudited)

 

																															Lease Exp.
												Fiscal Year							Square					Annual				Rent Per sf			Term in				Undepreciated				Mortgage
No		Tenant					City (MSA)		State			Acquisition			Occup.				Footage					Rent				Occup.			Years				Cost				Balance
102		FedEx Ground Package System, Inc.					Augusta		GA			2005				100.0	%			59,358			$	513,000			$	8.64				1.2			$	5,363,304			$	-0-
103		Vacant					Newington (Hartford)		CT			2001				0.0	%			54,812				-0-				na				na				3,506,747				-0-
104		Siemens Real Estate					Lebanon (Cincinnati)		OH			2012				100.0	%			51,130				459,000				8.98				4.1				4,452,425				-0-
105		FedEx Corporation					Charlottesville		VA			1999				100.0	%			48,064				329,000				6.85				7.4				4,462,009				-0-
106		FedEx Ground Package System, Inc.					Corpus Christi		TX			2012				100.0	%			46,253				436,000				9.43				1.4				4,808,329				-0-
107		Keurig Dr Pepper					Tulsa		OK			2014				100.0	%			46,240				266,000				5.75				3.9				3,748,031				1,483,106
108		Heartland Coca-Cola Bottling Company, LLC (Coca-Cola)					Topeka		KS			2009				100.0	%			40,000				332,000				8.30				1.5				3,679,843				438,211
109		Collins Aerospace Systems (United Technologies)					Rockford		IL			2015				100.0	%			38,833				367,000				9.45				7.3				5,100,000				-0-
110		Foundation Building Materials, LLC					Urbandale (Des Moines)		IA			1994				100.0	%			36,270				178,000				4.91				7.8				2,543,770				-0-
111		FedEx Corporation					Richland (Jackson)		MS			1994				100.0	%			36,000				120,000				3.33				4.0				1,900,691				-0-
112		FedEx Corporation					Punta Gorda		FL			2007				100.0	%			34,624				284,000				8.20				7.3				4,133,510				-0-
113		FedEx Corporation					Lakeland		FL			2006				100.0	%			32,105				155,000				4.83				7.7				2,043,226				-0-
114		FedEx Corporation					Augusta		GA			2006				100.0	%			30,184				121,000				4.01				2.7				1,983,529				-0-
115		Graybar Electric Company					Ridgeland (Jackson)		MS			1993				100.0	%			26,340				121,000				4.59				5.3				2,312,027				-0-
116		Sherwin-Williams Company					Burr Ridge (Chicago)		IL			1997				100.0	%			12,500				162,000				12.96				1.6				1,706,851				-0-
		Total as of 3/31/20														99.4	%			23,019,627			$	143,802,000			$	6.28				7.4			$	1,966,697,673		(A)	$	787,624,876

 

	(A)	Does not include unamortized debt issuance costs of $7,883,277.
	(B)	Property located in Aiken (Augusta, GA), SC leased to Autoneum North America, Inc. contains two leasable structures with two different lease terms.

 

 

Definitions

 

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

 

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

 

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

 

 

MONMOUTH REAL ESTATE REPORTS RESULTS FOR

THE SECOND QUARTER ENDED MARCH 31, 2020

  

HOLMDEL, NJ, May 6, 2020 Monmouth Real Estate Investment Corporation (NYSE:MNR) reported Net Loss Attributable to Common Shareholders of $75.1 million or $0.77 per diluted share for the three months ended March 31, 2020 as compared to Net Income Attributable to Common Shareholders of $23.8 million or $0.26 per diluted share for the three months ended March 31, 2019, representing a decrease of $98.9 million or $1.03 per diluted share. During the three months ended March 31, 2020, we recognized an $83.1 million unrealized loss or $0.85 per diluted share as compared to a $15.6 million unrealized gain or $0.17 per diluted share for the three months ended March 31, 2019. Funds from Operations (FFO), which excludes unrealized and realized gains or losses from our securities portfolio, for the three months ended March 31, 2020 were $20.2 million or $0.21 per diluted share versus $19.6 million or $0.21 per diluted share for the three months ended March 31, 2019, representing consistent per diluted share earnings. Adjusted Funds from Operations (AFFO), which also excludes unrealized and realized gains or losses from our securities portfolio, for the three months ended March 31, 2020 were $19.4 million or $0.20 per diluted share versus $19.2 million or $0.21 per diluted share for the three months ended March 31, 2019, representing a $0.01 decrease in AFFO per diluted share. Sequentially, our FFO of $0.21 per diluted share for the second quarter of fiscal 2020 is $0.01 higher than our FFO of $0.20 per diluted share for the first quarter of fiscal 2020 and our AFFO of $0.20 per diluted share for the second quarter of fiscal 2020 is $0.01 lower than our AFFO of $0.21 per diluted share for the first quarter of fiscal 2020. The quarterly year over year $0.01 decline in AFFO is primarily attributable to a $2.3 million increase in Preferred Dividend expense as a result of an increase in preferred shares outstanding.

 

Tenant Rent Collections During COVID-19 Pandemic

 

	●	For the month of March were 100%
	●	For the month of April were 99%
	●	While it is still early, thus far for the month of May we have received 95%

 

The future effects of the evolving impact of the COVID-19 pandemic are still uncertain, however at this time, we believe that the fallout from COVID-19 will not have a material adverse effect on our financial condition. To date, Monmouth has received very limited requests for rent deferment, representing an aggregate impact of only 200 basis points on our annual base rent. Of this amount, we have agreed to defer $320,000 which represents a 23 basis point impact on our annual base rent. This deferred amount is due to be paid by the end of the calendar year. Our occupancy rate is currently 99.4% and our weighted average lease term is 7.4 years.

 

A summary of significant financial information for the three and six months ended March 31, 2020 and 2019 (in thousands, except per share amounts) is as follows:

 

		Three Months Ended March 31,
		2020				2019
Rental Revenue		$	35,114			$	32,934
Reimbursement Revenue		$	6,594			$	5,447
Net Operating Income (NOI) (1)		$	35,045			$	32,545
Total Expenses		$	21,301			$	19,565
Dividend Income		$	3,404			$	3,515
Unrealized Holding Gains (Losses) Arising During the Periods		$	(83,075	)		$	15,568
Net Income (Loss)		$	(68,314	)		$	28,301
Net Income (Loss) Attributable to Common Shareholders		$	(75,078	)		$	23,821
Net Income (Loss)Attributable to Common Shareholders Per Diluted Common Share		$	(0.77	)		$	0.26
FFO (1)		$	20,199			$	19,588
FFO per Diluted Common Share (1)		$	0.21			$	0.21
AFFO (1)		$	19,352			$	19,172
AFFO per Diluted Common Share (1)		$	0.20			$	0.21
Dividends Declared per Common Share		$	0.17			$	0.17
Weighted Avg. Diluted Common Shares Outstanding			97,941				93,059

 

 

		Six Months Ended March 31,
		2020				2019
Rental Revenue		$	69,983			$	65,551
Reimbursement Revenue		$	13,424			$	11,053
Net Operating Income (NOI) (1)		$	69,512			$	64,864
Total Expenses		$	43,769			$	38,466
Dividend Income		$	6,642			$	7,882
Unrealized Holding Losses Arising During the Periods		$	(86,710	)		$	(27,059	)
Net Income (Loss)		$	(58,689	)		$	358
Net Loss Attributable to Common Shareholders		$	(71,551	)		$	(8,543	)
Net Loss Attributable to Common Shareholders Per Diluted Common Share		$	(0.73	)		$	(0.09	)
FFO (1)		$	39,520			$	41,017
FFO per Diluted Common Share (1)		$	0.41			$	0.45
AFFO (1)		$	39,284			$	40,194
AFFO per Diluted Common Share (1)		$	0.40			$	0.44
Dividends Declared per Common Share		$	0.34			$	0.34
Weighted Avg. Diluted Common Shares Outstanding			97,466				91,831

 

A summary of significant balance sheet information as of March 31, 2020 and September 30, 2019 (in thousands) is as follows:

 

		March 31, 2020				September 30, 2019
Real Estate Investments		$	1,694,336			$	1,616,934
Securities Available for Sale at Fair Value		$	99,035			$	185,250
Total Assets		$	1,890,048			$	1,871,948
Fixed Rate Mortgage Notes Payable, net of Unamortized Debt Issuance Costs		$	779,742			$	744,928
Loans Payable		$	75,000			$	95,000
Total Shareholders’ Equity		$	1,008,843			$	1,011,043

 

Highlights from Second Quarter Results

 

	●	Increased Gross Revenue by 8% over the prior year period to $45.1 million
	●	Increased Net Operating Income by 8% over the prior year period to $35.0 million
	●	Maintained a conservative AFFO dividend payout ratio of 85%
	●	Increased our Gross Leasable Area (GLA) by 6% over the prior year period to 23.0 million square feet
	●	Entered into commitments to acquire four new build-to-suit properties containing 1.5 million total square feet for a total cost of $229.6 million all leased to Investment Grade tenants
	●	Acquired one property comprising 153,000 square feet for $17.9 million leased to Magna Seating of America for 10 years
	●	Increased occupancy by 50 basis points over the prior year period and 20 basis points sequentially to 99.4%
	●	Renewed two more of the five leases scheduled to expire in fiscal 2020, resulting in the renewal of four of the five leases set to expire during fiscal 2020. The four lease renewals, comprising 355,000 square feet resulted in a 12.0% increase in GAAP rent, a 4.4% increase in Cash rent, and have a weighted-average lease term of 4.2 years
	●	Maintained a weighted average lease term of 7.4 years
	●	Maintained a weighted average debt maturity on fixed-rate mortgage debt of 11.3 years
	●	Reduced Net Debt to Adjusted EBITDA to 5.7x from 6.4x in the prior year period
	●	Reduced the weighted average interest rate on fixed-rate debt to 4.0% from 4.1% in the prior year period
	●	Raised $37.1 million in net proceeds through the Preferred Stock ATM Program with the sale of 1.5 million shares of 6.125% Series C Preferred Stock at a weighted average price of $25.12 per share
	●	Raised $8.6 million (including dividend reinvestments of $1.4 million) from the Dividend Reinvestment and Stock Purchase Plan, representing a 9% participation rate

 

 

Michael P. Landy, President and CEO, commented, “The COVID-19 Pandemic has created significant economic headwinds throughout the entire world. Monmouth went into this downturn very well positioned with a strong balance sheet, a high-quality tenant roster, and a well-covered dividend. Our business model of investing in industrial properties secured by long-term leases to investment grade tenants should enable us to outperform in this current environment. With rent collections for March and April coming in at 100% and 99% respectively, our current occupancy rate at 99.4%, and our weighted average lease term at 7.4 years, we are off to an excellent start.”

 

“During the quarter, on March 30^th, we acquired one building comprising 153,000 square feet for a purchase price of $17.9 million. This property, located in the Columbus, OH MSA, is leased to Magna Seating of America for 10 years. Since this property was acquired at the very end of the quarter, it did not contribute to our current results. Our $229.6 million acquisition pipeline currently contains four new build-to-suit properties comprising 1.5 million total square feet. These properties have a weighted-average lease term of 17.2 years. In keeping with our business model, these projects are all leased to investment grade tenants, with 56% leased to FedEx Ground and 44% leased to Home Depot.”

 

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

 

“At quarter end, our weighted-average lease maturity was 7.4 years and our weighted-average mortgage debt maturity was 11.3 years. We continue to maintain a conservative credit profile with our Net Debt to Adjusted EBITDA at 5.7x, our Fixed Charge Coverage at 2.3x, and our Net Debt to Total Market Capitalization at 33%. Illustrating the strength and visibility of our income streams, our occupancy rate has been over 98% for five consecutive years and our weighted average lease term has exceeded seven years for six consecutive years.”

 

“The value of our properties has appreciated substantially over the past decade as ecommerce demand has increased, and on-line shopping has become an integral part of the retail landscape. The current social distancing environment has created an even stronger shift towards on-line shopping. Because of this surge in ecommerce demand, some of our tenants are running 7-day work weeks and increasing their daily shifts. Their services are now more essential than ever. The COVID-19 Pandemic is also forcing industries and entire

 

Monmouth Real Estate Investment Corporation will host its Second Quarter FY 2020 Financial Results Webcast and Conference Call on Thursday, May 7, 2020 at 10:00 a.m. Eastern Time. Senior management will discuss the results, current market conditions and future outlook.

 

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

 

To participate in the Webcast, select the 2Q2020 Webcast and Earnings Call “Link to Webcast” on the homepage of our website at www.mreic.reit, in the Highlights section, which is located towards the bottom of the homepage. Interested parties can also participate via conference call by calling toll free 1-877-510-5852 (domestically) or 1-412-902-4138 (internationally).

 

The replay of the conference call will be available at 12:00 p.m. Eastern Time on Thursday, May 7, 2020. It will be available until August 5, 2020, and can be accessed by dialing toll free 1-877-344-7529 (domestically) and 1-412-317-0088 (internationally) and entering the passcode 10139462. A transcript of the call and the webcast replay will be available at our website on the Investor Relations homepage, www.mreic.reit.

 

Monmouth Real Estate Investment Corporation, founded in 1968, is one of the oldest public equity REITs in the world. We specialize in single tenant, net-leased industrial properties, subject to long-term leases, primarily to investment-grade tenants. Monmouth Real Estate is a fully integrated and self-managed real estate company, whose property portfolio consists of 116 properties containing a total of approximately 23.0 million rentable square feet, geographically diversified across 30 states. In addition, we own 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 our current expectations and involve various risks and uncertainties. Although we believe the expectations reflected in any forward-looking statements are based on reasonable assumptions, we can provide no assurance those expectations will be achieved. The risks and uncertainties that could cause actual results or events to differ materially from expectations are contained in our annual report on Form 10-K and described from time to time in our other filings with the SEC. We undertake no obligation to publicly update or revise any forward-looking statements whether as a result of new information, future events, or otherwise.

 

Notes:

 

(1) Non-U.S. GAAP Information: FFO, as defined by The National Association of Real Estate Investment Trusts (Nareit), represents net income attributable to common shareholders, as defined by accounting principles generally accepted in the United States of America (U.S. GAAP), excluding extraordinary items, as defined under U.S. GAAP, gains or losses from sales of previously depreciated real estate assets, impairment charges related to depreciable real estate assets, plus certain non-cash items such as real estate asset depreciation and amortization. Included in the Nareit FFO White Paper - 2018 Restatement, is an option pertaining to assets incidental to our main business in the calculation of Nareit FFO to make an election to include or exclude mark-to-market changes in the value recognized on these marketable equity securities. In conjunction with the adoption of the FFO White Paper - 2018 Restatement, for all periods presented, we have elected to exclude unrealized gains and losses from our investments in marketable equity securities from our FFO calculation. Prior to the adoption of the FFO White Paper – 2018 Restatement, we defined Core Funds From Operations (Core FFO) as FFO, excluding Unrealized Holding Gains or Losses Arising During the Periods. Nareit created FFO as a non-GAAP supplemental measure of REIT operating performance. We define Adjusted Funds From Operations (AFFO) as FFO, excluding stock based compensation expense, depreciation of corporate office tenant improvements, amortization of deferred financing costs, non-recurring severance expense, effect of non-cash U.S. GAAP straight-line rent adjustments and subtracting recurring capital expenditures. We define recurring capital expenditures as all capital expenditures that are recurring in nature, excluding capital expenditures related to expansions at our current locations or capital expenditures that are incurred in conjunction with obtaining a new lease or a lease renewal. We believe that, as widely recognized measures of performance used by other REITs, FFO and AFFO may be considered by investors as supplemental measures to compare our operating performance to those of other REITs. FFO and AFFO exclude historical cost depreciation as an expense and may facilitate the comparison of REITs which have a different cost basis. However, other REITs may use different methodologies to calculate FFO and AFFO and, accordingly, our FFO and AFFO may not be comparable to all other REITs. The items excluded from FFO and AFFO are significant components in understanding our financial performance.

 

 

FFO and AFFO are non-GAAP performance measures and (i) do not represent Cash Flow from Operations as defined by U.S. GAAP; (ii) should not be considered as an alternative to Net Income or Net Income Attributable to Common Shareholders as a measure of operating performance or to Cash Flows from Operating, Investing and Financing Activities; and (iii) are not an alternative to Cash Flows from Operating, Investing and Financing Activities as a measure of liquidity. FFO and AFFO, as calculated by us, may not be comparable to similarly titled measures reported by other REITs.

 

The following is a reconciliation of the Company’s U.S. GAAP Net Income (Loss) Attributable to Common Shareholders to the Company’s FFO and AFFO for the three and six months ended March 31, 2020 and 2019 (in thousands):

 

		Three Months Ended								Six Months Ended
		3/31/2020				3/31/2019				3/31/2020				3/31/2019
Net Income (Loss) Attributable to Common Shareholders		$	(75,078	)		$	23,821			$	(71,551	)		$	(8,543	)
Less/Plus: Unrealized Holding (Gains) Losses Arising During the Periods			83,075				(15,568	)			86,710				27,059
Plus: Depreciation Expense (excluding Corporate Office Capitalized Costs)			11,409				10,589				22,788				21,026
Plus: Amortization of Intangible Assets			508				505				1,016				1,005
Plus: Amortization of Capitalized Lease Costs			285				241				557				470
FFO Attributable to Common Shareholders			20,199				19,588				39,520				41,017
Plus: Depreciation of Corporate Office Capitalized Costs			66				167				118				208
Plus: Stock Compensation Expense			114				215				270				344
Plus: Amortization of Financing Costs			322				320				758				637
Plus: Non-recurring Severance Expense			-0-				-0-				786				-0-
Less: Recurring Capital Expenditures			(717	)			(630	)			(936	)			(1,187	)
Less: Effect of Non-cash U.S. GAAP Straight-line Rent Adjustment			(632	)			(488	)			(1,232	)			(825	)
AFFO Attributable to Common Shareholders		$	19,352			$	19,172			$	39,284			$	40,194

 

The following are the Cash Flows provided (used) by Operating, Investing and Financing Activities for the six months ended March 31, 2020 and 2019 (in thousands):

 

		Six Months Ended
		3/31/2020				3/31/2019
Operating Activities		$	47,854			$	50,218
Investing Activities			(101,388	)			(173,028	)
Financing Activities			69,268				129,844

 

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