Exhibit 99

 

 

 

 

Table of Contents

 

	Page
Consolidated Balance Sheets	3
Consolidated Statements of Income	4
FFO, AFFO and Adjusted EBITDA Reconciliations	5
NOI Reconciliations	6
Financial Highlights	7
Same Property Statistics	8
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	20
Press Release Dated February 4, 2021	21

 

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 20 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
		December 31,				September 30,
		2020				2020
		(unaudited)
ASSETS
Real Estate Investments:
Land		$	266,794			$	250,497
Buildings and Improvements			1,945,087				1,793,367
Total Real Estate Investments			2,211,881				2,043,864
Accumulated Depreciation			(308,041	)			(296,020	)
Real Estate Investments			1,903,840				1,747,844
Cash and Cash Equivalents			29,280				23,517
Securities Available for Sale at Fair Value			126,292				108,832
Tenant and Other Receivables			4,056				5,431
Deferred Rent Receivable			13,385				12,856
Prepaid Expenses			12,100				7,554
Intangible Assets, net of Accumulated Amortization of $17,861 and $17,330, respectively			21,163				16,832
Capitalized Lease Costs, net of Accumulated Amortization of $4,589 and $4,286, respectively			5,831				5,631
Financing Costs, net of Accumulated Amortization of $453 and $356, respectively			1,282				1,380
Other Assets			4,972				9,906
TOTAL ASSETS		$	2,122,201			$	1,939,783
LIABILITIES AND SHAREHOLDERS’ EQUITY
Liabilities:
Fixed Rate Mortgage Notes Payable, net of Unamortized Debt
Issuance Costs		$	888,247			$	799,507
Loans Payable			75,000				75,000
Accounts Payable and Accrued Expenses			5,022				3,998
Other Liabilities			27,980				23,673
Total Liabilities			996,249				902,178
COMMITMENTS AND CONTINGENCIES
Shareholders’ Equity:
6.125% Series C Cumulative Redeemable Preferred Stock, $0.01 Par Value Per Share: 26,600 and 21,900 Shares Authorized as of  December 31, 2020 and September 30, 2020, respectively; 21,986 and 18,880 Shares Issued and Outstanding as of December 31, 2020 and September 30, 2020, respectively			549,640				471,994
Common Stock, $0.01 Par Value Per Share: 300,000 and 200,000 Shares Authorized as of December 31, 2020 and September 30, 2020, respectively; 98,266 and 98,054 Shares Issued and Outstanding as of December 31, 2020 and September 30, 2020, respectively			983				981
Excess Stock, $0.01 Par Value Per Share: 200,000 Shares Authorized as of December 31, 2020 and September 30, 2020; No Shares Issued or Outstanding  as of December 31, 2020 and September 30, 2020			-0-				-0-
Additional Paid-In Capital			579,264				568,998
Accumulated Other Comprehensive Loss			(3,935	)			(4,368	)
Undistributed Income			-0-				-0-
Total Shareholders’ Equity			1,125,952				1,037,605
TOTAL LIABILITIES & SHAREHOLDERS’ EQUITY		$	2,122,201			$	1,939,783

 

 

Consolidated Statements of Income

(unaudited)(in thousands)

 

		For The
		Three Months Ended
		12/31/2020				12/31/2019
INCOME:
Rental Revenue		$	36,846			$	34,870
Reimbursement Revenue			6,737				6,830
Lease Termination Income			377				-0-
TOTAL INCOME			43,960				41,700
EXPENSES:
Real Estate Taxes			5,318				5,036
Operating Expenses			1,736				2,197
General & Administrative Expenses			2,272				2,264
Non-recurring Severance Expense			-0-				786
Depreciation			12,078				11,433
Amortization of Capitalized Lease Costs and Intangible Assets			809				753
TOTAL EXPENSES			22,213				22,469
OTHER INCOME (EXPENSE):
Dividend Income			1,607				3,238
Unrealized Holding Gains (Losses) Arising During the Periods			19,721				(3,635	)
Interest Expense, including Amortization of Financing Costs			(9,159	)			(9,209	)
TOTAL OTHER INCOME (EXPENSE)			12,169				(9,606	)
NET INCOME			33,916				9,625
Less: Preferred Dividends			8,170				6,097
NET INCOME ATTRIBUTABLE TO COMMON SHAREHOLDERS		$	25,746			$	3,528

 

 

FFO, AFFO and Adjusted EBITDA Reconciliations

(unaudited) (in thousands)

 

		For The
		Three Months Ended
FFO, AFFO		12/31/2020				12/31/2019
Net Income Attributable to Common Shareholders		$	25,746			$	3,528
Less/Plus: Unrealized Holding (Gains) Losses Arising During the Periods			(19,721	)			3,635
Plus: Depreciation Expense (excluding Corporate Office Capitalized Costs)			12,020				11,380
Plus: Amortization of Intangible Assets			532				508
Plus: Amortization of Capitalized Lease Costs			303				271
FFO Attributable to Common Shareholders			18,880				19,322
Plus: Depreciation of Corporate Office Capitalized Costs			57				53
Plus: Stock Compensation Expense			57				156
Plus: Amortization of Financing Costs			331				435
Plus: Non-recurring Severance Expense			-0-				786
Less: Lease Termination Income			(377	)			-0-
Less: Recurring Capital Expenditures			(160	)			(218	)
Less: Effect of Non-cash U.S. GAAP Straight-line Rent Adjustment			(618	)			(600	)
AFFO Attributable to Common Shareholders		$	18,170			$	19,934

 

		For The
		Three Months Ended
Adjusted EBITDA		12/31/2020				12/31/2019
Net Income Attributable to Common Shareholders		$	25,746			$	3,528
Plus: Preferred Dividends			8,170				6,097
Plus: Interest Expense, including Amortization of Financing Costs			9,159				9,209
Plus: Depreciation and Amortization			12,887				12,186
Plus: Net Amortization of Acquired Above and Below Market Lease Revenue			26				26
Less/Plus: Unrealized Holding (Gains) Losses Arising During the Periods			(19,721	)			3,635
Adjusted EBITDA		$	36,267			$	34,681

 

 

NOI Reconciliations

(unaudited) (in thousands)

 

		For The
		Three Months Ended
Net Operating Income		12/31/2020				12/31/2019
Net Income Attributable to Common Shareholders		$	25,746			$	3,528
Plus: Preferred Dividend Expense			8,170				6,097
Plus: General & Administrative Expenses			2,272				2,264
Plus: Non-recurring Severance Expense			-0-				786
Plus: Depreciation			12,078				11,433
Plus: Amortization of Capitalized Lease Costs and Intangible Assets			809				753
Plus: Interest Expense, including Amortization of Financing Costs			9,159				9,209
Less/Plus: Unrealized Holding (Gains) Losses Arising During the Periods			(19,721	)			3,635
Less: Dividend Income			(1,607	)			(3,238	)
Less: Lease Termination Income			(377	)			-0-
Net Operating Income – NOI		$	36,529			$	34,467

 

		For The
		Three Months Ended
Components of Net Operating Income Consists of:		12/31/2020				12/31/2019
Revenues:
Rental Revenue		$	36,846			$	34,870
Reimbursement Revenue			6,737				6,830
Total Rental and Reimbursement Revenue			43,583				41,700
Expenses:
Real Estate Taxes			5,318				5,036
Operating Expenses			1,736				2,197
Total Real Estate Taxes and Operating Expenses			7,054				7,233
Net Operating Income – NOI		$	36,529			$	34,467

 

 

Financial Highlights

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

 

		For The
		Three Months Ended
		12/31/2020				12/31/2019				Change (%)
Weighted Average Common Shares Outstanding
Basic			98,105				96,881				1.3	%
Diluted			98,211				97,006				1.2	%
Net Income Attributable to Common Shareholders		$	25,746			$	3,528				629.9	%
Basic		$	0.26			$	0.04				550.0	%
Diluted			0.26				0.04				550.0	%
Net Operating Income – NOI		$	36,529			$	34,467				6.0	%
Basic		$	0.37			$	0.36				2.8	%
Diluted			0.37				0.36				2.8	%
Funds From Operations – FFO		$	18,880			$	19,322				(2.3	)%
Basic		$	0.19			$	0.20				(5.0	)%
Diluted			0.19				0.20				(5.0	)%
Adjusted Funds From Operations – AFFO		$	18,170			$	19,934				(8.8	)%
Basic		$	0.19			$	0.21				(9.5	)%
Diluted			0.19				0.21				(9.5	)%
Dividends Declared per Common Share		$	0.17			$	0.17
Dividend/AFFO Payout Ratio			89.5	%			81.0	%

 

 

Same Property Statistics

(unaudited) (in thousands except for square feet)

 

		For The Three Months Ended
		12/31/2020								12/31/2019				Change				Change %
Total Square Feet / Total Properties			24,543,795/121								22,866,627/115				1,677,168				7.3	%
Occupancy Percentage at End of Period			99.7	%							99.2	%			50 bps				0.5	%
Same Property Square Feet / Number of Same Properties							21,839,072/113
Same Property Occupancy Percentage at End of Period			99.6	%							99.1	%			50 bps				0.5	%
Same Property Net Operating Income (NOI) (GAAP)		$	32,868							$	32,795			$	73				0.2	%
Reversal of Effect of Non-cash U.S. GAAP Straight-line Rent Adjustment			(418	)							(550	)			132
Same Property Cash NOI		$	32,450							$	32,245			$	205				0.6	%

 

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
		12/31/2020				12/31/2019				Change				Change %
Same Property NOI (GAAP)		$	32,868			$	32,795			$	73				0.2	%
NOI of properties purchased subsequent to September 30, 2019 (two properties purchased during fiscal 2021 and five properties purchased during fiscal 2020)			3,058				1,127
NOI of properties expanded subsequent to September 30, 2019 (one property expanded during fiscal 2021)			603				545
Total NOI		$	36,529			$	34,467			$	2,062				6.0	%

 

 

Consolidated Statements of Cash Flows

(unaudited)(in thousands)

 

		For the Three Months Ended
		12/31/2020				12/31/2019
CASH FLOWS FROM OPERATING ACTIVITIES
Net Income		$	33,916			$	9,625
Noncash Items Included in Net Income:
Depreciation & Amortization			13,217				12,621
Deferred Straight Line Rent			(618	)			(600	)
Stock Compensation Expense			57				156
Securities Available for Sale Received as Dividend Income			(239	)			(226	)
Unrealized Holding (Gains) Losses Arising During the Periods			(19,721	)			3,635
Changes in:
Tenant & Other Receivables			1,400				(6,114	)
Prepaid Expenses			(4,546	)			(5,250	)
Other Assets & Capitalized Lease Costs			824				453
Accounts Payable, Accrued Expenses & Other Liabilities			5,402				4,572
NET CASH PROVIDED BY OPERATING ACTIVITIES			29,692				18,872
CASH FLOWS FROM INVESTING ACTIVITIES
Purchase of Real Estate & Intangible Assets			(170,568	)			(81,513	)
Capital Improvements			(2,256	)			(1,328	)
Return of Deposits on Real Estate			5,000				1,200
Deposits Paid on Acquisitions of Real Estate			(1,450	)			(100	)
Proceeds from Securities Available for Sale Called for Redemption			2,500				-0-
NET CASH USED IN INVESTING ACTIVITIES			(166,774	)			(81,741	)
CASH FLOWS FROM FINANCING ACTIVITIES
Net Repayments on Loans Payable			-0-				(15,000	)
Proceeds from Fixed Rate Mortgage Notes Payable			104,000				52,500
Principal Payments on Fixed Rate Mortgage Notes Payable			(14,923	)			(13,356	)
Financing Costs Paid on Debt			(569	)			(1,980	)
Proceeds from the Exercise of Stock Options			1,566				606
Proceeds from At-The-Market 6.125% Series C Preferred Stock, net of offering costs			75,958				43,153
Proceeds from Issuance of Common Stock in the DRIP, net  of Dividend Reinvestments			237				11,305
Preferred Dividends Paid			(7,774	)			(5,873	)
Common Dividends Paid, net of Reinvestments			(15,650	)			(12,282	)
NET CASH PROVIDED BY FINANCING ACTIVITIES			142,845				59,073
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS			5,763				(3,796	)
CASH AND CASH EQUIVALENTS - BEGINNING OF PERIOD			23,517				20,179
CASH AND CASH EQUIVALENTS - END OF PERIOD		$	29,280			$	16,383

 

 

Capital Structure and Leverage Ratios

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

 

		As of				As of				As of
		12/31/2020				12/31/2019				9/30/2020
Fixed Rate Mortgage Notes Payable, net of Unamortized Debt Issuance Costs		$	888,247			$	784,048			$	799,507
Loans Payable			75,000				80,000				75,000
Total Debt			963,247				864,048				874,507
6.125% Series C Cumulative Redeemable Preferred Stock			549,640				391,643				471,994
Common Stock, Additional Paid-In-Capital & Other			576,312				665,866				565,611
Total Shareholders’ Equity			1,125,952				1,057,509				1,037,605
Total Book Capitalization			2,089,199				1,921,557				1,912,112
Accumulated Depreciation			308,041				260,963				296,020
Total Undepreciated Book Capitalization		$	2,397,240			$	2,182,520			$	2,208,132
Shares Outstanding			98,266				97,569				98,054
Market Price Per Share		$	17.32			$	14.48			$	13.85
Equity Market Capitalization		$	1,701,960			$	1,412,803			$	1,358,049
Total Debt			963,247				864,048				874,507
Total Preferred Stock			549,640				391,643				471,994
Total Market Capitalization		$	3,214,847			$	2,668,494			$	2,704,550
Total Debt		$	963,247			$	864,048			$	874,507
less: Cash and Cash Equivalents			29,280				16,383				23,517
Net Debt		$	933,967			$	847,665			$	850,990
less: Securities Available for Sale at Fair Value (Securities)			126,292				181,841				108,832
Net Debt Less Securities		$	807,675			$	665,824			$	742,158
Net Debt / Total Undepreciated Book Capitalization			39.0	%			38.8	%			38.5	%
Net Debt / Total Market Capitalization			29.1	%			31.8	%			31.5	%
Net Debt Plus Preferred Stock / Total Market Capitalization			46.1	%			46.4	%			48.9	%
Net Debt Less Securities / Total Undepreciated Book Capitalization			33.7	%			30.5	%			33.6	%
Net Debt Less Securities / Total Market Capitalization			25.1	%			25.0	%			27.4	%
Net Debt Less Securities Plus Preferred Stock / Total Market Capitalization			42.2	%			39.6	%			44.9	%
Weighted Average Interest Rate on Fixed Rate Mortgage Debt			3.88	%			4.05	%			3.98	%
Weighted Average Term on Fixed Rate Mortgage Debt			11.5 yrs.				11.5 yrs.				11.1 yrs.
Weighted Average Lease Term			7.5 yrs.				7.6 yrs.				7.1 yrs.

 

 

Capital Structure and Leverage Ratios

(unaudited) (in thousands)

 

		For the Three Months Ended								Fiscal Year Ended
		12/31/2020				12/31/2019				9/30/2020
Net Income (Loss) Attributable to Common Shareholders		$	25,746			$	3,528			$	(48,617	)
Plus: Preferred Dividends			8,170				6,097				26,474
Plus: Interest Expense, including Amortization of Financing Costs			9,159				9,209				36,376
Plus: Depreciation and Amortization			12,887				12,186				49,850
Plus: Net Amortization of Acquired Above and Below Market Lease Revenue			26				26				103
Less/Plus: Unrealized Holding (Gains) Losses Arising During the Periods			(19,721	)			3,635				77,380
Adjusted EBITDA		$	36,267			$	34,681			$	141,566
Interest Expense, including Amortization of Financing Costs		$	9,159			$	9,209			$	36,376
Preferred Dividends			8,170				6,097				26,474
Total Fixed Charges		$	17,329			$	15,306			$	62,850
Interest Coverage			4.0 x				3.8 x				3.9 x
Fixed Charge Coverage			2.1 x				2.3 x				2.3 x
Net Debt		$	933,967			$	847,665			$	850,990
Net Debt Less Securities			807,675				665,824				742,158
Total Preferred Stock			549,640				391,643				471,994
Annualized Adjusted EBITDA			145,068				138,724				141,566
Net Debt / Adjusted EBITDA			6.4 x				6.1 x				6.0 x
Net Debt Less Securities / Adjusted EBITDA			5.6 x				4.8 x				5.2 x
Net Debt + Preferred Stock / Adjusted EBITDA			10.2 x				8.9 x				9.3 x
Net Debt Less Securities + Preferred Stock / Adjusted EBITDA			9.4 x				7.6 x				8.6 x

 

During the last two weeks of the quarter we purchased two properties, one on December 17, 2020 and one on December 24, 2020, for an aggregate purchase price of $170.0 million which generate $10.1 million in annualized revenue and has a weighted average lease term of 17.9 years. In connection with acquiring these two properties we obtained two fully-amortizing mortgage loans aggregating $104.0 million with a weighted average interest rate of 3.11% and a weighted average maturity of 16.1 years. The leverage ratios for the three months ended December 31, 2020 do not reflect the full run rate of the Adjusted EBITDA that these two newly acquired properties generate.

 

 

Debt Maturity

(unaudited) (In thousands)

 

 

								Loans										% of
Fiscal Year Ended				Mortgages				Payable						Total				Total
2021				$	49,187				-0-					$	49,187				5.1	%
2022					88,339				-0-						88,339				9.1	%
2023					67,446				-0-						67,446				6.9	%
2024					80,898				-0-						80,898				8.3	%
2025					75,305				75,000			(B)			150,305				15.5	%
Thereafter					535,271				-0-						535,271				55.1	%
Total as of 12/31/2020		(A)		$	896,446			$	75,000					$	971,446				100.0	%
Weighted Average Interest Rate					3.88	%			2.92	%					3.81	%
Weighted Average Term					11.5 yrs.				4.1 yrs.						10.9 yrs.

 

	(A)	Mortgages does not include unamortized debt issuance costs of $8.2 million.
	(B)	Represents a Term Loan maturing January 2025.

 

 

Property Table by Tenant

(unaudited)

 

				Property				Square				Occupied Square				% of Occupied				Annual				% of Total				Rent Per				Undepreciated				Mortgage
Tenant				Count				Footage				Footage				sf				Rent				Ann. Rent				sf Occup.				Cost				Balance
FedEx Ground Package System, Inc.					46				9,589,493				9,589,493				39.1	%		$	79,031,000				49.5	%		$	8.24			$1,129,409,675				$	487,715,735
FedEx Corporation					16				1,164,830				1,164,830				4.7	%			7,492,000				4.7	%			6.43			108,888,474					20,171,303
FedEx Forward Depots, Inc.					1				449,900				449,900				1.8	%			1,394,000				0.9	%			3.10			16,092,852					3,072,872
Total FedEx					63				11,204,223				11,204,223				45.6	%			87,917,000				55.1	%			7.85			1,254,391,001					510,959,910
Subsidiaries of Amazon.com, Inc.					5				1,491,245				1,491,245				6.1	%			10,742,000				6.7	%			7.20			166,563,389					93,621,967
Milwaukee Electric Tool Corporation					1				861,889				861,889				3.6	%			3,098,000				1.9	%			3.59			36,914,917					17,561,817
Shaw Industries, Inc.					1				831,764				831,764				3.5	%			3,563,000				2.2	%			4.28			56,025,945					27,818,158
Home Depot U.S.A., Inc.					2				828,718				828,718				3.4	%			6,580,000				4.1	%			7.94			105,267,022					57,000,000
ULTA, Inc.					1				671,354				671,354				2.7	%			2,782,000				1.7	%			4.14			37,773,835					16,979,040
Jim Beam Brands Company (Beam Suntory)					1				599,840				599,840				2.4	%			2,112,000				1.3	%			3.52			28,000,000					14,334,089
International Paper Company					2				578,472				578,472				2.4	%			2,663,000				1.7	%			4.60			37,024,608					17,509,613
TreeHouse Private Brands, Inc.					1				558,600				558,600				2.3	%			2,267,000				1.4	%			4.06			26,807,852					13,598,185
B. Braun Medical Inc.					1				399,440				399,440				1.6	%			2,334,000				1.5	%			5.84			30,906,249					16,961,077
UGN, Inc.					1				387,000				387,000				1.6	%			2,107,000				1.3	%			5.44			21,576,756					12,287,592
CBOCS Distribution, Inc. (Cracker Barrel)					1				381,240				381,240				1.6	%			1,490,000				0.9	%			3.91			14,215,126					-0-
Best Buy Warehousing Logistics, Inc.					1				368,060				368,060				1.5	%			1,725,000				1.1	%			4.69			19,600,000					7,854,983
Toyota Tsusho America, Inc.					1				350,000				350,000				1.4	%			1,722,000				1.1	%			4.92			25,078,587					15,887,892
Coca-Cola					2				323,358				323,358				1.3	%			1,741,000				1.1	%			5.38			20,504,069					1,998,335
Autoneum North America, Inc.					1				315,560				315,560				1.3	%			1,746,000				1.1	%			5.53			21,040,396					12,649,777
Science Applications International Corporation					1				302,400				302,400				1.2	%			1,708,000				1.1	%			5.65			14,463,148					-0-
Bunzl USA Holdings, Inc.					2				268,778				268,778				1.1	%			1,512,000				0.9	%			5.63			18,731,674					10,806,570
Woodstream Corporation		(A) (C)			1				256,000				256,000				1.0	%			946,000				0.6	%			3.70			8,965,820					-0-
Anda Pharmaceuticals, Inc.					1				234,660				234,660				1.0	%			1,220,000				0.8	%			5.20			14,550,000					6,086,584
Mickey Thompson Performance Tires and Wheels (Cooper Tire)					1				219,765				219,765				0.9	%			1,537,000				1.0	%			6.99			18,934,065					10,636,374
Rinnai America Corporation					1				218,120				218,120				0.9	%			913,000				0.6	%			4.19			15,082,217					-0-
Anheuser-Busch, Inc.					1				184,800				184,800				0.8	%			854,000				0.5	%			4.62			12,757,540					-0-
Carrier Enterprise, LLC (Carrier Global Corporation)					1				184,317				184,317				0.8	%			1,160,000				0.7	%			6.29			18,494,917					4,501,384
Carlisle Tire & Wheel Company					1				179,280				179,280				0.7	%			771,000				0.5	%			4.30			7,282,986					-0-
NF&M International, Inc.		(B)			1				174,802				174,802				0.7	%			842,000				0.5	%			4.82			5,445,065					-0-
Magna Seating of America, Inc.					1				153,000				153,000				0.6	%			1,201,000				0.8	%			7.85			17,557,830					8,904,118
Victory Packaging, L.P.					1				148,000				148,000				0.6	%			504,000				0.3	%			3.41			5,458,279					-0-
Challenger Lifts, Inc. (Snap-On Inc.)					1				137,500				137,500				0.6	%			858,000				0.5	%			6.24			11,304,000					5,594,894
Altec Industries, Inc.		(A)			1				126,880				126,880				0.5	%			378,000				0.2	%			2.98			4,443,684					-0-
General Electric Company					1				125,860				125,860				0.5	%			1,341,000				0.8	%			10.65			19,972,983					9,375,636
Keurig Dr Pepper					2				110,080				110,080				0.4	%			757,000				0.5	%			6.88			10,498,031					1,376,696
Style Crest, Inc.					1				106,507				106,507				0.4	%			433,000				0.3	%			4.07			7,263,673					-0-
Sonwil Distribution Center, Inc.					1				104,981				104,981				0.4	%			630,000				0.4	%			6.00			10,960,823					-0-
Pittsburgh Glass Works, LLC, a Division of VITRO					1				102,135				102,135				0.4	%			453,000				0.3	%			4.44			4,249,615					-0-
Dakota Bodies, LLC					1				96,687				96,687				0.4	%			416,000				0.3	%			4.30			7,797,827					-0-
National Oilwell Varco, Inc.					1				91,295				91,295				0.4	%			801,000				0.5	%			8.77			8,190,901					961,031
Joseph T. Ryerson and Son, Inc.					1				89,052				89,052				0.4	%			519,000				0.3	%			5.83			7,184,598					-0-
CHEP USA, Inc.					1				83,000				83,000				0.3	%			509,000				0.3	%			6.13			7,463,672					-0-
Sherwin-Williams Company					2				78,887				78,887				0.3	%			648,000				0.4	%			8.21			7,308,331					-0-
United Parcel Service, Inc.					1				75,000				75,000				0.3	%			541,000				0.3	%			7.21			5,906,281					-0-
Tampa Bay Grand Prix					1				68,385				68,385				0.3	%			369,000				0.2	%			5.40			5,677,982					-0-
Various Tenants at Retail Shopping Center					1				64,220				61,190				0.2	%			616,000				0.4	%			10.07			3,139,564					-0-
SOFIVE, Inc.					1				60,400				60,400				0.2	%			653,000				0.4	%			10.81			5,296,752					1,180,233
Locke Supply Co.					1				60,000				60,000				0.2	%			340,000				0.3	%			5.67			5,097,100					-0-
Hartford Healthcare Corporation					1				54,812				54,812				0.2	%			307,000				0.3	%			5.60			3,525,917					-0-
Siemens Real Estate					1				51,130				51,130				0.2	%			464,000				0.3	%			9.07			4,554,685					-0-
Collins Aerospace (Raytheon Technologies Corporation)					1				38,833				38,833				0.2	%			368,000				0.2	%			9.48			5,100,000					-0-
Foundation Building Materials, LLC					1				36,270				36,270				0.2	%			179,000				0.1	%			4.94			2,543,770					-0-
Graybar Electric Company					1				26,340				26,340				0.2	%			122,000				0.1	%			4.63			2,736,527					-0-
Vacant		(B)			1				80,856				-0-				0.0	%			-0-				0.0	%			-0-			2,518,657					-0-
Total as of 12/31/20					121				24,543,795				24,459,909				99.7	%		$	159,459,000				100.0	%		$	6.52			$2,212,148,666			(D)	$	896,445,955

 

	(A)	Woodstream Corporation and Altec Industries, Inc. are located at one property and, therefore, are counted as one property in the Property Count Total.
	(B)	NF&M International is located in a 255,658 square foot industrial park in Monaca (Pittsburgh), PA, of which 80,856 square feet are vacant. This industrial park is counted as one property in the Property Count Total.
		Other than two properties indicated in footnotes (A) and (B) and one retail property, all properties are single-tenant.
	(C)	Subsequent to the quarter end, tenant renewed for 5 years extending the term to 9/30/2026 with an increase in cash rent of 1.4% and an increase in GAAP rent of 9.0%.
	(D)	Does not include unamortized debt issuance costs of $8,199,121.

 

 

Property Table by State

(unaudited)

 

		Property		Square				Occupied Square				% of Total				Annual				% of Total				Rent Per				Undepreciated						Mortgage
State		Count		Footage				Footage				sf				Rent				Ann. Rent				sf Occup.				Cost						Balance
Ohio		11			2,346,406				2,346,406				9.6	%		$	15,863,000				9.9	%		$	6.76			$	209,209,522					$	96,769,197
Georgia		7			2,297,214				2,297,214				9.4	%			16,177,000				10.1	%			7.04				260,177,386						135,927,377
Florida		13			2,211,583				2,211,583				9.0	%			16,006,000				10.0	%			7.24				228,569,259						82,677,276
Indiana		4			1,964,923				1,964,923				8.0	%			11,212,000				7.0	%			5.71				167,720,415						91,384,899
Texas		10			1,781,967				1,781,967				7.3	%			13,844,000				8.7	%			7.77				183,290,390						64,556,564
Kentucky		3			1,295,940				1,295,940				5.3	%			5,237,000				3.3	%			4.04				66,111,852						33,527,168
South Carolina		6			1,273,676				1,273,676				5.2	%			9,882,000				6.2	%			7.76				129,988,241						51,074,473
North Carolina		5			1,225,987				1,225,987				5.0	%			8,713,000				5.5	%			7.11				132,529,662						66,342,975
Mississippi		4			1,158,889				1,158,889				4.7	%			4,560,000				2.9	%			3.93				56,102,135						23,648,401
Illinois		9			958,045				958,045				3.9	%			6,254,000				3.9	%			6.53				83,336,096						7,158,656
Tennessee		3			891,777				891,777				3.6	%			3,203,000				2.0	%			3.59				35,677,250						3,072,872
Michigan		4			833,054				833,054				3.4	%			5,578,000				3.5	%			6.70				73,427,292						21,724,734
Kansas		4			813,043				813,043				3.3	%			5,038,000				3.2	%			6.20				62,331,797						24,828,348
Missouri		4			740,119				740,119				3.0	%			2,962,000				1.9	%			4.00				35,460,181						6,224,874
Oklahoma		5			735,721				735,721				3.0	%			4,943,000				3.1	%			6.72				69,942,758						34,977,563
New York		3			518,565				518,565				2.1	%			3,500,000				2.2	%			6.75				51,999,081						18,435,493
Pennsylvania		3			504,040				423,184				2.1	%			2,834,000				1.8	%			6.70				36,959,671						11,693,396
New Jersey		3			471,765				468,735				1.9	%			6,597,000				4.1	%			14.07				92,423,938						50,417,552
Alabama		2			451,595				451,595				1.8	%			2,670,000				1.7	%			5.91				39,714,135						16,453,006
Virginia		5			407,265				407,265				1.7	%			2,474,000				1.6	%			6.07				35,050,242						3,264,823
Colorado		2			295,227				295,227				1.2	%			2,441,000				1.5	%			8.27				35,694,134						14,299,643
Arizona		1			283,358				283,358				1.2	%			1,409,000				0.9	%			4.97				16,824,226						1,787,101
Wisconsin		2			238,666				238,666				1.0	%			1,295,000				0.8	%			5.43				16,377,221						1,881,143
Washington		1			210,445				210,445				0.9	%			1,962,000				1.2	%			9.32				30,369,301						15,173,658
Louisiana		1			175,315				175,315				0.7	%			1,274,000				0.8	%			7.27				18,425,875						9,496,551
Maryland		1			148,881				148,881				0.6	%			1,455,000				0.9	%			9.77				14,512,355						-0-
Nebraska		1			89,115				89,115				0.4	%			446,000				0.3	%			5.00				5,963,626						-0-
Utah		1			69,734				69,734				0.3	%			772,000				0.5	%			11.07				12,666,994						8,140,721
Minnesota		1			60,398				60,398				0.2	%			372,000				0.2	%			6.16				5,223,944						1,507,491
Connecticut		1			54,812				54,812				0.1	%			307,000				0.2	%			5.60				3,525,917						-0-
Iowa		1			36,270				36,270				0.1	%			179,000				0.1	%			4.94				2,543,770						-0-
Total as of 12/31/20		121			24,543,795				24,459,909				100.0	%		$	159,459,000				100.0	%		$	6.52			$	2,212,148,666			(A)		$	896,445,955

 

(A)

Does not include unamortized debt issuance costs of $8,199,121.

 

 

Lease Expirations

(unaudited)

 

					Property				Square				% of Total				Annual				% of Total				Rent Per sf				Lease Exp. Term in				Undepreciated						Mortgage
Fiscal Year					Count				Footage				Sf				Rent				Ann. Rent				Occup.				Years				Cost						Balance
2021		(A)				5				628,485				2.6	%		$	2,870,000				1.8	%		$	4.57				0.7			$	31,847,764					$	6,436,108
2022						5				1,064,506				4.3	%			5,623,000				3.5	%			5.28				1.2				71,748,060						18,741,307
2023		(A)				16				2,117,482				8.6	%			12,076,000				7.6	%			5.70				2.4				149,075,022						16,394,700
2024						13				1,887,034				7.7	%			11,797,000				7.4	%			6.25				3.4				137,488,989						21,633,041
2025		(A)				11				2,607,470				10.6	%			13,027,000				8.2	%			5.00				4.4				170,717,740						61,681,610
2026						10				1,231,673				5.0	%			9,269,000				5.8	%			7.53				5.4				125,287,024						29,270,173
2027						13				2,385,501				9.7	%			13,297,000				8.3	%			5.57				6.6				187,577,474						61,829,545
2028						10				2,172,475				8.9	%			11,857,000				7.4	%			5.46				7.3				152,479,439						42,885,484
2029						9				1,830,929				7.5	%			10,610,000				6.7	%			5.79				8.3				147,828,016						59,310,359
2030						6				1,146,812				4.7	%			9,143,000				5.7	%			7.97				9.3				134,711,630						65,969,390
2031						5				1,093,081				4.5	%			8,355,000				5.2	%			7.64				9.8				115,754,817						56,036,570
2032						8				2,131,983				8.7	%			18,862,000				11.8	%			8.85				11.3				291,154,266						159,693,761
2033						3				1,038,508				4.2	%			8,848,000				5.5	%			8.52				12.2				137,709,755						78,687,508
2034						3				1,561,347				6.4	%			9,365,000				5.9	%			6.00				13.3				127,748,517						76,235,417
2035						3				843,915				3.3	%			8,343,000				5.3	%			9.89				14.6				131,398,227						84,640,982
2041						1				657,518				2.7	%			5,501,000				3.4	%			8.37				19.9				93,963,705						57,000,000
Various tenants at retail shopping center						1				64,220				0.3	%			616,000				0.5	%			10.07				-0-				3,139,564						-0-
Vacant		(A)				1				80,856				0.3	%			-0-				0.0	%			-0-				-0-				2,518,657						-0-
Total as of 12/31/20						121				24,543,795				100.0	%		$	159,459,000				100.0	%		$	6.52				7.5			$	2,212,148,666			(B)		$	896,445,955

 

	(A)	Included in 2021 is Woodstream Corporation and included in 2023 is Altec Industries, which both occupy one property. Included in 2025 is NF&M International, which occupies 174,802 square feet of a 255,658 square foot Industrial Park. The remaining 80,856 square feet are included in Vacant. Each of these properties are counted as one property in the Property Count Total. Other than these properties and one retail property, all properties are single-tenant.
	(B)	Does not include unamortized debt issuance costs of $8,199,121.

 

 

Recent Acquisitions During Fiscal 2021

(unaudited)

 

								Date of		Square				Annual				Rent Per				Lease				Purchase				Initial Mortgage
No		Tenant		City (MSA)		State		Acquisition		Footage				Rent				sf Occup.				Expiration				Price				Balance
1		FedEx Ground Package System, Inc.		Plain City (Columbus)		OH		12/17/2020			487,900			$	4,569,000			$	9.36				9/30/2035			$	73,304,000			$	47,000,000
2		Home Depot U.S.A., Inc.		Locust Grove (Atlanta)		GA		12/24/2020			657,518				5,501,000				8.37				11/30/2040				96,688,000				57,000,000
		As of 12/31/20									1,145,418			$	10,070,000			$	8.79							$	169,992,000			$	104,000,000

 

 

Property Table

(unaudited)

 

																								Rent				Lease Exp.
										Fiscal Year						Square				Annual				Per sf				Term in				Undepreciated						Mortgage
No		Tenant				City (MSA)		State		Acquisition		Occup.				Footage				Rent				Occup.				Years				Cost						Balance
1		Milwaukee Electric Tool Corporation				Olive Branch (Memphis, TN)		MS		2013			100.0	%			861,889			$	3,098,000			$	3.59				7.6			$	36,914,917					$	17,561,817
2		Shaw Industries, Inc.				Savannah		GA		2018			100.0	%			831,764				3,563,000				4.28				6.8				56,025,945						27,818,158
3		ULTA, Inc.				Greenwood (Indianapolis)		IN		2015			100.0	%			671,354				2,782,000				4.14				4.6				37,773,835						16,979,040
4		Home Depot U.S.A., Inc.				Locust Grove (Atlanta)		GA		2021			100.0	%			657,518				5,501,000				8.37				19.9				93,963,705						57,000,000
5		Amazon.com.indc, LLC				Greenwood (Indianapolis)		IN		2020			100.0	%			615,747				4,991,000				8.11				13.7				79,363,910						50,349,640
6		Jim Beam Brands Company (Beam Suntory)				Frankfort (Lexington)		KY		2015			100.0	%			599,840				2,112,000				3.52				4.1				28,000,000						14,334,089
7		TreeHouse Private Brands, Inc.				Buckner (Louisville)		KY		2014			100.0	%			558,600				2,267,000				4.06				12.8				26,807,852						13,598,185
8		FedEx Ground Package System, Inc.				Plain City (Columbus)		OH		2021			100.0	%			487,900				4,569,000				9.36				14.8				72,020,356						47,000,000
9		FedEx Forward Depots, Inc.				Memphis		TN		2010			100.0	%			449,900				1,394,000				3.10				8.4				16,092,852						3,072,872
10		B. Braun Medical Inc.				Daytona Beach		FL		2018			100.0	%			399,440				2,334,000				5.84				12.0				30,906,249						16,961,077
11		UGN, Inc.				Monroe (Cincinnati)		OH		2015			100.0	%			387,000				2,107,000				5.44				13.2				21,576,756						12,287,592
12		Woodstream Corporation		(A)		St. Joseph		MO		2001			100.0	%			256,000				946,000				3.70				0.7				8,965,820						-0-
		Altec Industries, Inc.				St. Joseph		MO		2001			100.0	%			126,880				378,000				2.98				2.2				4,443,684						-0-
13		CBOCS Distribution, Inc. (Cracker Barrel)				Lebanon (Nashville)		TN		2011			100.0	%			381,240				1,490,000				3.91				3.5				14,215,126						-0-
14		FedEx Ground Package System, Inc.				Braselton (Atlanta)		GA		2018			100.0	%			373,750				3,801,000				10.17				12.2				60,227,126						35,332,317
15		Best Buy Warehousing Logistics, Inc.				Streetsboro (Cleveland)		OH		2012			100.0	%			368,060				1,725,000				4.69				1.1				19,600,000						7,854,983
16		Amazon.com Services, Inc. (Amazon.com, Inc.)				Mobile		AL		2018			100.0	%			362,942				2,065,000				5.69				7.9				33,052,316						16,453,006
17		FedEx Ground Package System, Inc.				Concord (Charlotte)		NC		2017			100.0	%			354,482				2,537,000				7.16				11.4				40,043,145						21,702,172
18		FedEx Ground Package System, Inc.				Mesquite (Dallas)		TX		2017			100.0	%			351,874				3,209,000				9.12				11.3				49,880,493						26,883,871
19		Toyota Tsusho America, Inc.				Lafayette		IN		2019			100.0	%			350,000				1,722,000				4.92				8.5				25,078,587						15,887,892
20		FedEx Ground Package System, Inc.				Trenton		NJ		2019			100.0	%			347,145				5,328,000				15.35				11.5				83,987,622						49,237,319
21		FedEx Ground Package System, Inc.				Walker (Grand Rapids)		MI		2017			100.0	%			343,483				2,106,000				6.13				11.1				31,654,987						16,924,994
22		FedEx Ground Package System, Inc.				Hamburg (Buffalo)		NY		2017			100.0	%			338,584				2,329,000				6.88				10.3				35,131,977						18,435,493
23		FedEx Ground Package System, Inc.				Concord (Charlotte)		NC		2016			100.0	%			330,717				2,237,000				6.76				4.6				33,053,688						15,140,542
24		FedEx Ground Package System, Inc.				Indianapolis		IN		2014			100.0	%			327,822				1,717,000				5.24				6.8				25,504,083						8,168,327
25		Autoneum North America, Inc.				Aiken (Augusta, GA)		SC		2017			100.0	%			315,560				1,746,000				5.53				11.3				21,040,396						12,649,777
26		FedEx Ground Package System, Inc.				Olathe (Kansas City)		KS		2016			100.0	%			313,763				2,553,000				8.14				10.4				33,074,860						17,193,631
27		FedEx Ground Package System, Inc.				Davenport (Orlando)		FL		2016			100.0	%			310,922				2,625,000				8.44				10.3				38,115,782						20,407,446
28		FedEx Ground Package System, Inc.				Ft. Worth (Dallas)		TX		2015			100.0	%			304,608				2,394,000				7.86				9.3				35,599,704						17,505,475
29		Science Applications International Corporation				Hanahan (Charleston)		SC		2005			100.0	%			302,400				1,708,000				5.65				2.8				14,463,148						-0-
30		Amazon.com Services, Inc. (Amazon.com, Inc.)				Oklahoma City		OK		2018			100.0	%			300,000				1,948,000				6.49				6.8				29,878,942						17,155,340
31		International Paper Company				Kenton		OH		2017			100.0	%			298,472				1,281,000				4.29				6.7				18,730,500						10,086,130
32		FedEx Ground Package System, Inc.				Jacksonville		FL		2015			100.0	%			297,579				1,998,000				6.71				9.0				30,925,530						13,541,925
33		FedEx Ground Package System, Inc.				Greensboro		NC		2020			100.0	%			286,281				3,002,000				10.49				14.3				46,710,877						29,500,261
34		Western Container Corp. (Coca-Cola)				Tolleson (Phoenix)		AZ		2003			100.0	%			283,358				1,409,000				4.97				6.3				16,824,226						1,787,101
35		International Paper Company				Edwardsville (Kansas City)		KS		2014			100.0	%			280,000				1,382,000				4.94				2.7				18,294,108						7,423,483
36		FedEx Ground Package System, Inc.				Charleston		SC		2018			100.0	%			265,318				2,713,000				10.23				12.5				46,576,380						26,394,114
37		NF&M International, Inc.				Monaca (Pittsburgh)		PA		1977			68.4	%			255,658				842,000				4.82				4.0				7,963,722						-0-
38		FedEx Ground Package System, Inc.				Orion		MI		2007			100.0	%			245,633				1,908,000				7.77				2.5				22,943,357						-0-
39		FedEx Ground Package System, Inc.				Homestead (Miami)		FL		2017			100.0	%			237,756				2,282,000				9.60				11.3				37,911,556						20,265,046
40		Anda Pharmaceuticals, Inc.				Olive Branch (Memphis, TN)		MS		2012			100.0	%			234,660				1,220,000				5.20				1.6				14,550,000						6,086,584
41		FedEx Ground Package System, Inc.				Colorado Springs		CO		2016			100.0	%			225,362				1,832,000				8.13				5.1				29,320,066						14,299,643
42		Mickey Thompson Performance Tires and Wheels (Cooper Tire)				Stow		OH		2017			100.0	%			219,765				1,537,000				6.99				6.7				18,934,065						10,636,374
43		Rinnai America Corporation				Griffin (Atlanta)		GA		2006			100.0	%			218,120				913,000				4.19				2.0				15,082,217						-0-
44		FedEx Ground Package System, Inc.				Ft. Myers		FL		2017			100.0	%			213,672				1,418,000				6.64				6.7				21,684,310						11,501,782
45		FedEx Ground Package System, Inc.				Burlington (Seattle/Everett)		WA		2016			100.0	%			210,445				1,962,000				9.32				9.7				30,369,301						15,173,658
46		FedEx Ground Package System, Inc.				Sauget (St. Louis, MO)		IL		2015			100.0	%			198,773				1,036,000				5.21				8.4				15,241,708						7,158,656
47		Anheuser-Busch, Inc.				Granite City (St. Louis, MO)		IL		2001			100.0	%			184,800				854,000				4.62				0.9				12,757,540						-0-
48		Carrier Enterprise, LLC (Carrier Global Corporation)				Carrollton (Dallas)		TX		2010			100.0	%			184,317				1,160,000				6.29				3.1				18,494,917						4,501,384
49		FedEx Ground Package System, Inc.				Spring (Houston)		TX		2014			100.0	%			181,176				1,581,000				8.73				3.8				19,328,922						6,452,478
50		Carlisle Tire & Wheel Company				Edwardsville (Kansas City)		KS		2003			100.0	%			179,280				771,000				4.30				2.6				7,282,986						-0-
51		FedEx Ground Package System, Inc.				Ft. Mill (Charlotte, NC)		SC		2010			100.0	%			176,939				1,598,000				9.03				7.7				17,063,643						-0-
52		FedEx Ground Package System, Inc.				Covington (New Orleans)		LA		2016			100.0	%			175,315				1,274,000				7.27				4.5				18,425,875						9,496,551
53		FedEx Ground Package System, Inc.				Livonia (Detroit)		MI		2013			100.0	%			172,005				1,194,000				6.94				1.2				13,879,697						4,799,740
54		Home Depot U.S.A., Inc.				Montgomery (Chicago)		IL		2004			100.0	%			171,200				1,079,000				6.30				2.0				11,303,317						-0-
55		FedEx Ground Package System, Inc.				Tampa		FL		2004			100.0	%			170,779				1,624,000				9.51				5.6				19,745,245						-0-
56		FedEx Ground Package System, Inc.				Edinburg		TX		2011			100.0	%			164,207				1,097,000				6.68				5.8				12,039,014						-0-
57		FedEx Ground Package System, Inc.				Lindale (Tyler)		TX		2015			100.0	%			163,378				725,000				4.44				3.5				9,965,550						4,720,787
58		Bunzl Distribution Midcentral, Inc.				Kansas City		MO		2015			100.0	%			158,417				769,000				4.85				0.7				10,003,235						6,224,874
59		FedEx Ground Package System, Inc.				Oklahoma City		OK		2012			100.0	%			158,340				1,048,000				6.62				4.6				12,624,833						2,199,850
60		Magna Seating of America, Inc.				Lancaster (Columbus)		OH		2020			100.0	%			153,000				1,201,000				7.85				9.1				17,557,830						8,904,118

 

 

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
61		FedEx Ground Package System, Inc.				Waco		TX		2012			100.0	%			150,710			$	1,078,000			$	7.15				4.7			$	12,551,368					$	3,531,538
62		FedEx Ground Package System, Inc.				Beltsville (Washington, DC)		MD		2001			100.0	%			148,881				1,455,000				9.77				7.6				14,512,355						-0-
63		Victory Packaging, L.P.				Fayetteville		NC		1997			100.0	%			148,000				504,000				3.41				4.2				5,458,279						-0-
64		FedEx Ground Package System, Inc.				El Paso		TX		2006			100.0	%			144,149				1,345,000				9.33				2.7				12,431,192						-0-
65		FedEx Ground Package System, Inc.				Cocoa		FL		2008			100.0	%			144,138				1,112,000				7.71				3.8				14,127,449						-0-
66		FedEx Ground Package System, Inc.				Cudahy (Milwaukee)		WI		2001			100.0	%			139,564				827,000				5.93				6.5				9,807,221						-0-
67		Challenger Lifts, Inc. (Snap-On Inc.)				Louisville		KY		2016			100.0	%			137,500				858,000				6.24				5.4				11,304,000						5,594,894
68		FedEx Ground Package System, Inc.				Richfield (Cleveland)		OH		2006			100.0	%			131,152				1,493,000				11.38				3.8				16,447,178						-0-
69		FedEx Ground Package System, Inc.				Savannah		GA		2019			100.0	%			126,520				1,765,000				13.95				7.8				27,531,560						15,776,902
70		General Electric Company				Imperial (Pittsburgh)		PA		2016			100.0	%			125,860				1,341,000				10.65				5.0				19,972,983						9,375,636
71		FedEx Ground Package System, Inc.				Wheeling (Chicago)		IL		2003			100.0	%			123,000				1,272,000				10.34				6.4				18,993,549						-0-
72		FedEx Ground Package System, Inc.				Altoona		PA		2014			100.0	%			122,522				651,000				5.31				2.7				9,022,966						2,317,760
73		FedEx Corporation				Charleston		SC		2018			100.0	%			121,683				1,314,000				10.80				11.7				21,538,966						12,030,582
74		Amazon.com Services, LLC				Oklahoma City		OK		2020			100.0	%			120,780				935,000				7.74				9.7				14,962,513						9,663,981
75		FedEx Corporation				Mechanicsville (Richmond)		VA		2001			100.0	%			112,799				541,000				4.80				2.3				7,827,460						-0-
76		FedEx Corporation				Orlando		FL		2008			100.0	%			110,638				666,000				6.02				6.9				8,810,059						-0-
77		Bunzl Distribution Oklahoma, Inc.				Oklahoma City		OK		2017			100.0	%			110,361				743,000				6.73				3.7				8,728,439						4,581,696
78		Style Crest, Inc.				Winston-Salem		NC		2002			100.0	%			106,507				433,000				4.07				5.2				7,263,673						-0-
79		Sonwil Distribution Center, Inc.				Cheektowaga (Buffalo)		NY		2002			100.0	%			104,981				630,000				6.00				1.1				10,960,823						-0-
80		FedEx Ground Package System, Inc.				West Chester Twp. (Cincinnati)		OH		2000			100.0	%			103,818				560,000				5.39				2.7				5,733,686						-0-
81		FedEx Ground Package System, Inc.				Roanoke		VA		2013			100.0	%			103,402				755,000				7.30				2.3				10,200,000						3,264,823
82		Pittsburgh Glass Works, LLC, a Division of VITRO				O’ Fallon (St. Louis)		MO		1994			100.0	%			102,135				453,000				4.44				0.5				4,249,615						-0-
83		FedEx Ground Package System, Inc.				Green Bay		WI		2013			100.0	%			99,102				468,000				4.72				2.4				6,570,000						1,881,143
84		Dakota Bodies, LLC				Liberty (Kansas City)		MO		1998			100.0	%			96,687				416,000				4.30				5.3				7,797,827						-0-
85		FedEx Corporation				Jacksonville		FL		1999			100.0	%			95,883				536,000				5.59				8.4				6,584,384						-0-
86		FedEx Corporation				Tampa		FL		2006			100.0	%			95,662				603,000				6.30				6.9				7,903,977						-0-
87		Amazon.com Services, Inc.				Hanahan (Charleston)		SC		2005			100.0	%			91,776				803,000				8.75				8.5				9,305,708						-0-
88		National Oilwell Varco, Inc.				Houston		TX		2010			100.0	%			91,295				801,000				8.77				8.8				8,190,901						961,031
89		FedEx Corporation				Omaha		NE		1999			100.0	%			89,115				446,000				5.00				2.8				5,963,626						-0-
90		Joseph T. Ryerson and Son, Inc.				Elgin (Chicago)		IL		2002			100.0	%			89,052				519,000				5.83				4.1				7,184,598						-0-
91		FedEx Ground Package System, Inc.				Huntsville		AL		2005			100.0	%			88,653				605,000				6.82				5.6				6,661,819						-0-
92		CHEP USA, Inc.				Roanoke		VA		2007			100.0	%			83,000				509,000				6.13				4.2				7,463,672						-0-
93		FedEx Corporation				Bedford Heights (Cleveland)		OH		2007			100.0	%			82,269				438,000				5.32				7.7				7,304,467						-0-
94		United Parcel Service, Inc.				Halfmoon (Albany)		NY		2012			100.0	%			75,000				541,000				7.21				10.3				5,906,281						-0-
95		FedEx Corporation				Schaumburg (Chicago)		IL		1997			100.0	%			73,500				478,000				6.50				6.2				5,447,053						-0-
96		FedEx Corporation				Romulus (Detroit)		MI		1998			100.0	%			71,933				370,000				5.14				0.4				4,949,251						-0-
97		FedEx Ground Package System, Inc.				Denver		CO		2005			100.0	%			69,865				609,000				8.72				4.8				6,374,068						-0-
98		FedEx Corporation				Ogden (Salt Lake City)		UT		2020			100.0	%			69,734				772,000				11.07				14.3				12,666,994						8,140,721
99		Tampa Bay Grand Prix				Tampa		FL		2005			100.0	%			68,385				369,000				5.40				6.8				5,677,982						-0-
100		Sherwin-Williams Company				Rockford		IL		2011			100.0	%			66,387				486,000				7.32				3.0				5,551,227						-0-
101		Various Tenants at Retail Shopping Center				Somerset		NJ		1970			95.0	%			64,220				616,000				10.07				na				3,139,564						-0-
102		Keurig Dr Pepper				Cincinnati		OH		2015			100.0	%			63,840				488,000				7.64				8.8				6,750,000						-0-
103		FedEx Corporation				Chattanooga		TN		2007			100.0	%			60,637				319,000				5.26				1.8				5,369,272						-0-
104		SOFIVE, Inc.				Carlstadt (New York, NY)		NJ		2001			100.0	%			60,400				653,000				10.81				9.1				5,296,752						1,180,233
105		FedEx Ground Package System, Inc.				Stewartville (Rochester)		MN		2013			100.0	%			60,398				372,000				6.16				2.4				5,223,944						1,507,491
106		Locke Supply Co.				Richmond		VA		2004			100.0	%			60,000				340,000				5.67				11.3				5,097,101						-0-
107		FedEx Ground Package System, Inc.				Augusta		GA		2005			100.0	%			59,358				513,000				8.64				2.5				5,363,304						-0-
108		Hartford Healthcare Corporation				Newington (Hartford)		CT		2001			100.0	%			54,812				307,000				5.60				10.3				3,525,917						-0-
109		Siemens Real Estate				Lebanon (Cincinnati)		OH		2012			100.0	%			51,130				464,000				9.07				3.3				4,554,684						-0-
110		FedEx Corporation				Charlottesville		VA		1999			100.0	%			48,064				329,000				6.85				6.7				4,462,009						-0-
111		FedEx Ground Package System, Inc.				Corpus Christi		TX		2012			100.0	%			46,253				454,000				9.82				5.7				4,808,329						-0-
112		Keurig Dr Pepper				Tulsa		OK		2014			100.0	%			46,240				269,000				5.82				3.2				3,748,031						1,376,696
113		Heartland Coca-Cola Bottling Company, LLC (Coca-Cola)				Topeka		KS		2009			100.0	%			40,000				332,000				8.30				0.7				3,679,843						211,234
114		Collins Aerospace Systems (Raytheon Technologies Corporation)				Rockford		IL		2015			100.0	%			38,833				368,000				9.48				6.5				5,100,000						-0-
115		Foundation Building Materials, LLC				Urbandale (Des Moines)		IA		1994			100.0	%			36,270				179,000				4.94				7.0				2,543,770						-0-
116		FedEx Corporation				Richland (Jackson)		MS		1994			100.0	%			36,000				120,000				3.33				3.2				1,900,691						-0-

 

 

Property Table

(unaudited)

 

																								Rent				Lease Exp.
										Fiscal Year						Square				Annual				Per sf				Term in				Undepreciated						Mortgage
No		Tenant				City (MSA)		State		Acquisition		Occup.				Footage				Rent				Occup.				Years				Cost						Balance
117		FedEx Corporation				Punta Gorda		FL		2007			100.0	%			34,624			$	284,000			$	8.20				6.5			$	4,133,510					$	-0-
118		FedEx Corporation				Lakeland		FL		2006			100.0	%			32,105				155,000				4.83				6.9				2,043,226						-0-
119		FedEx Corporation				Augusta		GA		2006			100.0	%			30,184				121,000				4.01				1.9				1,983,529						-0-
120		Graybar Electric Company				Ridgeland (Jackson)		MS		1993			100.0	%			26,340				122,000				4.63				4.6				2,736,527						-0-
121		Sherwin-Williams Company				Burr Ridge (Chicago)		IL		1997			100.0	%			12,500				162,000				12.96				5.8				1,757,104						-0-
		Total as of 12/31/20											99.7	%			24,543,795			$	159,459,000			$	6.52				7.5			$	2,212,148,666			(B)		$	896,445,955

 

(A)	Subsequent to the quarter end, tenant renewed for 5 years extending the term to 9/30/2026 with an increase in cash rent of 1.4% and an increase in GAAP rent of 9.0%.
(B)	Does not include unamortized debt issuance costs of $8,199,121.

 

 

Definitions

 

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

 

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

 

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

 

 

FOR IMMEDIATE RELEASE	February 4, 2021
	Contact: Becky Coleridge
	732-577-9996

 

MONMOUTH REAL ESTATE REPORTS RESULTS FOR

THE FIRST QUARTER ENDED DECEMBER 31, 2020

 

HOLMDEL, NJ, February 4, 2021........ Monmouth Real Estate Investment Corporation (NYSE:MNR) reported Net Income Attributable to Common Shareholders of $25.7 million or $0.26 per diluted share for the three months ended December 31, 2020 as compared to Net Income Attributable to Common Shareholders of $3.5 million or $0.04 per diluted share for the three months ended December 31, 2019, representing an increase of $22.2 million or $0.22 per diluted share. During the three months ended December 31, 2020, we recognized a $19.7 million unrealized gain or $0.20 per diluted share as compared to a $3.6 million unrealized loss or $0.04 per diluted share for the three months ended December 31, 2019. Funds from Operations (FFO), which excludes unrealized gains or losses from our securities portfolio, for the three months ended December 31, 2020 were $18.9 million or $0.19 per diluted share versus $19.3 million or $0.20 per diluted share for the three months ended December 31, 2019, representing a $0.01 decrease in FFO per diluted share. Adjusted Funds from Operations (AFFO), which also excludes unrealized and realized gains or losses from our securities portfolio, for the three months ended December 31, 2020 were $18.2 million or $0.19 per diluted share versus $19.9 million or $0.21 per diluted share for the three months ended December 31, 2019, representing a $0.02 decrease in AFFO per diluted share. The decrease in FFO and AFFO was primarily attributable to an increase in our preferred dividend expense of $2.1 million and a reduction in dividend income of $1.6 million partially offset by an increase in Net Operating Income of $2.1 million, compared to the same prior year period. AFFO of $18.2 million or $0.19 per diluted share for the current quarter ended December 31, 2020 is unchanged sequentially with AFFO of $18.2 million or $0.19 per diluted share for the quarter ended September 30, 2020. During the last two weeks of the current quarter, we purchased two properties, (one on December 17, 2020 and one on December 24, 2020), for an aggregate purchase price of $170.0 million which will generate $10.1 million in annualized revenue. The current quarter does not reflect the full run-rate NOI effect of these two recent acquisitions. A portion of the preferred offering proceeds raised earlier in the quarter were used to fund these two transactions at the end of the period. We also ended the quarter with approximately $29.3 million in cash and cash equivalents which we expect to use to fund our near-term pipeline. We expect that the full run-rate NOI generated from these recent acquisitions, the deployment of our excess cash proceeds along with our $169.3 million acquisition pipeline, as well as our large expansion pipeline, to meaningfully grow our FFO and AFFO per share earnings going forward.

 

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

 

		Three Months Ended December 31,
		2020				2019
Rental Revenue		$	36,846			$	34,870
Reimbursement Revenue		$	6,737			$	6,830
Lease Termination Income		$	377			$	-0-
Net Operating Income (NOI) (1)		$	36,529			$	34,467
Total Expenses		$	22,213			$	22,469
Dividend Income		$	1,607			$	3,238
Unrealized Holding Gains (Losses) Arising During the Periods		$	19,721			$	(3,635	)
Net Income		$	33,916			$	9,625
Net Income Attributable to Common Shareholders		$	25,746			$	3,528
Net Income Attributable to Common Shareholders Per Diluted Common Share		$	0.26			$	0.04
FFO (1)		$	18,880			$	19,322
FFO per Diluted Common Share (1)		$	0.19			$	0.20
AFFO (1)		$	18,170			$	19,934
AFFO per Diluted Common Share (1)		$	0.19			$	0.21
Dividends Declared per Common Share		$	0.17			$	0.17
Weighted Avg. Diluted Common Shares Outstanding			98,211				97,006

 

 

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

 

		December 31, 2020				September 30, 2020
Cash and Cash Equivalents		$	29,280			$	23,517
Real Estate Investments		$	1,903,840			$	1,747,844
Securities Available for Sale at Fair Value		$	126,292			$	108,832
Total Assets		$	2,122,201			$	1,939,783
Fixed Rate Mortgage Notes Payable, net of Unamortized Debt Issuance Costs		$	888,247			$	799,507
Loans Payable		$	75,000			$	75,000
Total Shareholders’ Equity		$	1,125,952			$	1,037,605

 

During the quarter, we accomplished the following:

 

●	Increased our Revenue, by 5.4% over the prior year period to $44.0 million;
●	Increased our Net Operating Income by 6% over the prior year period to $36.5 million;
●	Maintained a conservative AFFO dividend payout ratio of 89.5%;
●	Increased our gross leasable area (GLA) by 7% over the prior year period to 24.5 million square feet;
●	Entered into commitments to acquire four new build-to-suit properties containing 1.2 million total square feet for a total cost of $169.3 million;
●	Completed $170.0 million in acquisitions comprising two new built-to-suit, net-leased, industrial properties comprising approximately 1.1 million square feet leased to FedEx Ground and Home Depot U.S.A. for 15 and 20 years, respectively, and generating $10.1 million in annualized revenue;
●	Increased our occupancy rate by 50bps over the prior year period to 99.7% and by 30bps sequentially;
●	Renewed six of the ten leases scheduled to expire in fiscal 2021. The six lease renewals, comprising 834,000 square feet or 69% of expiring square footage resulted in an 8.5% weighted-average increase in GAAP rent, a 2.0% weighted-average increase in cash rent and have a weighted-average lease term of 3.8 years;
●	Increased our annualized average base rent per occupied square foot by 4% to $6.52 from the prior year period;
●	Increased our weighted average lease maturity from 7.1 years as of September 30, 2020 to 7.5 years currently;
●	Maintained our weighted average debt maturity on our fixed-rate mortgage debt at 11.5 years;
●	Raised $1.3 million (including dividend reinvestments of $1.0 million) through our Dividend Reinvestment and Stock Purchase Plan, representing a 6% participation rate;
●	Raised $76.0 million in net proceeds through our 6.125% Series C Perpetual Preferred Stock ATM Program at an average price of $24.88 per share.

 

Michael P. Landy, President and CEO, commented on the results for the first quarter of fiscal 2021,

 

“Thus far in fiscal 2021, we completed two high-quality acquisitions comprising 1.1 million square feet for an aggregate purchase price of $170.0 million. These properties, located in the Columbus, OH and Atlanta, GA MSAs, are leased to FedEx Ground and Home Depot U.S.A. for 15 and 20 years, respectively. They are expected to generate $10.1 million in annual rent demonstrating our continued ability to source accretive transactions in a highly-competitive acquisition environment. Our $169.3 million acquisition pipeline currently contains four new build-to-suit properties comprising 1.2 million total square feet. These properties have a weighted-average lease term of 12.8 years. In keeping with our business model, these properties are all leased to investment grade tenants.”

 

“In addition to our pipeline, we also have six FedEx Ground parking expansion projects currently underway along with more under discussion. These six projects are expected to cost approximately $16.8 million and are targeted to be completed over the next few quarters. These expansions will enable us to grow our property level NOI by capturing additional rent while at the same time extending the duration of our leases. This past quarter we completed the first phase of a parking expansion for FedEx at our Kansas City, KS location for a total of $3.4 million increasing annualized rent by $340,000. We are in discussions to do a second phase parking expansion at this location which will increase the rent further and extend the lease term. We are also in discussions with FedEx to expand the parking at 11 additional locations and expect to identify additional growth opportunities in our portfolio going forward.”

 

 

“This past year was a time when resiliency was severely tested by the COVID-19 Pandemic. Monmouth stood out as a safe haven throughout these challenging times. The Company is now in its 30^th year of having maintained or increased its common stock cash dividend, in addition to being one of the few REITs that preserved its cash dividend during the Global Financial Crisis of 2007-2008. Subsequent to the quarter end, we announced a 5.9% increase in our quarterly dividend to $0.18 per share or an annualized dividend rate of $0.72 per share. This marks our third dividend increase in the past five years, amounting to a 20% increase during that span. Our unique and simple business model has enabled us to achieve consistently high occupancy rates, strong tenant retention, and exceptional rent collections, as well as strong overall growth. Our occupancy rate has been over 98.9% for six consecutive years while our weighted-average lease maturity has remained in excess of seven years for the past seven consecutive years, illustrating the strength and visibility of our income streams.”

 

“U.S. industrial real estate has experienced a protracted period of cap rate compression. While the acquisition environment has become more challenging, at the same time, the value of our properties has also appreciated substantially. Our new annual report is now featured on our website. This report represents an excellent resource for understanding our Company and our outlook. We strongly encourage you to read it. Please contact our Investor Relations department if you would like to receive a hard copy. We look forward to reporting continued progress throughout the year.”

 

Monmouth Real Estate Investment Corporation will host its First Quarter FY 2021 Financial Results Webcast and Conference Call on Thursday, February 4, 2021 at 5:30 p.m. Eastern Time. Senior management will discuss the results, current market conditions and future outlook.

 

Our First Quarter FY 2021 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 1Q2021 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 7:30 p.m. Eastern Time on Thursday, February 4, 2021. It will be available until May 5, 2021, and can be accessed by dialing toll free 1-877-344-7529 (domestically) and 1-412-317-0088 (internationally) and entering the passcode 10150337. 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 121 properties, containing a total of approximately 24.5 million rentable square feet, geographically diversified across 31 states. Our occupancy rate as of this date is 99.7%.

 

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

 

Notes:

 

(1) Non-U.S. GAAP Information: FFO, as defined by The National Association of Real Estate Investment Trusts (NAREIT), represents net income attributable to common shareholders, as defined by accounting principles generally accepted in the United States of America (U.S. GAAP), excluding extraordinary items, as defined under U.S. GAAP, gains or losses from sales of previously depreciated real estate assets, impairment charges related to depreciable real estate assets, plus certain non-cash items such as real estate asset depreciation and amortization. Included in the NAREIT FFO White Paper - 2018 Restatement, is an option pertaining to assets incidental to our main business in the calculation of NAREIT FFO to make an election to include or exclude mark-to-market changes in the value recognized on these marketable equity securities. In conjunction with the adoption of the FFO White Paper - 2018 Restatement, for all periods presented, we have elected to exclude unrealized gains and losses from our investments in marketable equity securities from our FFO calculation. NAREIT created FFO as a non-GAAP supplemental measure of REIT operating performance. We define Adjusted Funds From Operations (AFFO) as FFO, excluding stock based compensation expense, depreciation of corporate office tenant improvements, amortization of deferred financing costs, lease termination income, 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 Attributable to Common Shareholders to the Company’s FFO and AFFO for the three months ended December 31, 2020 and 2019 (in thousands):

 

		Three Months Ended
		12/31/2020				12/31/2019
Net Income Attributable to Common Shareholders		$	25,746			$	3,528
Less/Plus: Unrealized Holding (Gains) Losses Arising During the Periods			(19,721	)			3,635
Plus: Depreciation Expense (excluding Corporate Office Capitalized Costs)			12,020				11,380
Plus: Amortization of Intangible Assets			532				508
Plus: Amortization of Capitalized Lease Costs			303				271
FFO Attributable to Common Shareholders			18,880				19,322
Plus: Depreciation of Corporate Office Capitalized Costs			57				53
Plus: Stock Compensation Expense			57				156
Plus: Amortization of Financing Costs			331				435
Plus: Non-recurring Severance Expense			-0-				786
Less: Lease Termination Income			(377	)			-0-
Less: Recurring Capital Expenditures			(160	)			(218	)
Less: Effect of Non-cash U.S. GAAP Straight-line Rent Adjustment			(618	)			(600	)
AFFO Attributable to Common Shareholders		$	18,170			$	19,934

 

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

 

		Three Months Ended
		12/31/2020				12/31/2019
Operating Activities		$	29,692			$	18,872
Investing Activities			(166,774	)			(81,741	)
Financing Activities			142,845				59,073

 

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