Exhibit 99

 

 

 

 

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	8
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 4, 2021	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,
		2021				2020
			(unaudited)
ASSETS
Real Estate Investments:
Land		$	266,794			$	250,497
Buildings and Improvements			1,945,880				1,793,367
Total Real Estate Investments			2,212,674				2,043,864
Accumulated Depreciation			(321,047	)			(296,020	)
Real Estate Investments			1,891,627				1,747,844
Cash and Cash Equivalents			19,383				23,517
Securities Available for Sale at Fair Value			131,654				108,832
Tenant and Other Receivables			2,735				5,431
Deferred Rent Receivable			14,383				12,856
Prepaid Expenses			13,206				7,554
Intangible Assets, net of Accumulated Amortization of $18,461 and $17,330, respectively			20,563				16,832
Capitalized Lease Costs, net of Accumulated Amortization of $4,893 and $4,286, respectively			5,600				5,631
Financing Costs, net of Accumulated Amortization of $551 and $356, respectively			1,185				1,380
Other Assets			8,080				9,906
TOTAL ASSETS		$	2,108,416			$	1,939,783
LIABILITIES AND SHAREHOLDERS’ EQUITY
Liabilities:
Fixed Rate Mortgage Notes Payable, net of Unamortized Debt
Issuance Costs		$	866,224			$	799,507
Loans Payable			75,000				75,000
Accounts Payable and Accrued Expenses			4,642				3,998
Other Liabilities			26,450				23,673
Total Liabilities			972,316				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 March 31, 2021 and September 30, 2020, respectively; 21,986 and 18,880 Shares Issued and Outstanding as of March 31, 2021 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 March 31, 2021 and September 30, 2020, respectively; 98,301 and 98,054 Shares Issued and Outstanding as of March 31, 2021 and September 30, 2020, respectively			983				981
Excess Stock, $0.01 Par Value Per Share: 200,000 Shares Authorized as of March 31, 2021 and September 30, 2020; No Shares Issued or Outstanding as of March 31, 2021 and September 30, 2020			-0-				-0-
Additional Paid-In Capital			588,049				568,998
Accumulated Other Comprehensive Loss			(2,572	)			(4,368	)
Undistributed Income			-0-				-0-
Total Shareholders’ Equity			1,136,100				1,037,605
TOTAL LIABILITIES & SHAREHOLDERS’ EQUITY		$	2,108,416			$	1,939,783

 

 

Consolidated Statements of Income (Loss)

(unaudited) (in thousands)

 

		For The								For The
		Three Months Ended								Six Months Ended
		3/31/2021				3/31/2020				3/31/2021				3/31/2020
INCOME:
Rental Revenue		$	39,246			$	35,114			$	76,091			$	69,983
Reimbursement Revenue			7,119				6,594				13,856				13,424
Lease Termination Income			-0-				-0-				377				-0-
TOTAL INCOME			46,365				41,708				90,324				83,407
EXPENSES:
Real Estate Taxes			5,604				5,029				10,922				10,064
Operating Expenses			2,039				1,634				3,775				3,831
General & Administrative Expenses			2,091				2,396				4,117				4,660
Non-recurring Strategic Alternative & Proxy Costs			1,993				-0-				2,239				-0-
Non-recurring Severance Expense			-0-				-0-				-0-				786
Depreciation			13,064				11,475				25,141				22,907
Amortization of Capitalized Lease Costs and Intangible Assets			879				767				1,687				1,521
TOTAL EXPENSES			25,670				21,301				47,881				43,769
OTHER INCOME (EXPENSE):
Dividend Income			1,587				3,404				3,195				6,642
Realized Gain On Sale of Securities Transactions			2,248				-0-				2,248				-0-
Unrealized Holding Gains (Losses) Arising During the Periods			19,186				(83,075	)			38,906				(86,710	)
Interest Expense, including Amortization of Financing Costs			(9,387	)			(9,050	)			(18,546	)			(18,259	)
TOTAL OTHER INCOME (EXPENSE)			13,634				(88,721	)			25,803				(98,327	)
NET INCOME (LOSS)			34,329				(68,314	)			68,246				(58,689	)
Less: Preferred Dividends			8,416				6,764				16,587				12,862
NET INCOME (LOSS) ATTRIBUTABLE TO COMMON SHAREHOLDERS		$	25,913			$	(75,078	)		$	51,659			$	(71,551	)

 

 

FFO, AFFO and Adjusted EBITDA Reconciliations

(unaudited) (in thousands)

 

		For The								For The
		Three Months Ended								Six Months Ended
		3/31/2021				3/31/2020				3/31/2021				3/31/2020
FFO, AFFO
Net Income (Loss) Attributable to Common Shareholders		$	25,913			$	(75,078	)		$	51,659			$	(71,551	)
Less/Plus: Unrealized Holding (Gains) Losses Arising During the Periods			(19,186	)			83,075				(38,906	)			86,710
Plus: Depreciation Expense (excluding Corporate Office Capitalized Costs)			13,007				11,409				25,026				22,788
Plus: Amortization of Intangible Assets			600				508				1,132				1,016
Plus: Amortization of Capitalized Lease Costs			305				285				606				557
FFO Attributable to Common Shareholders			20,639				20,199				39,517				39,520
Plus: Depreciation of Corporate Office Capitalized Costs			57				66				116				118
Plus: Stock Compensation Expense			77				114				134				270
Plus: Amortization of Financing Costs			346				322				676				758
Plus: Non-recurring Strategic Alternative & Proxy Costs			1,993				-0-				2,239				-0-
Plus: Non-recurring Severance Expense			-0-				-0-				-0-				786
Less: Gain on Sale of Securities Transactions			(2,248	)			-0-				(2,248	)			-0-
Less: Lease Termination Income			-0-				-0-				(377	)			-0-
Less: Recurring Capital Expenditures			(403	)			(717	)			(563	)			(936	)
Less: Effect of Non-cash U.S. GAAP Straight-line Rent Adjustment			(1,043	)			(632	)			(1,661	)			(1,232	)
AFFO Attributable to Common Shareholders		$	19,418			$	19,352			$	37,833			$	39,284

 

		For The								For The
		Three Months Ended								Six Months Ended
		3/31/2021				3/31/2020				3/31/2021				3/31/2020
Adjusted EBITDA
Net Income (Loss) Attributable to Common Shareholders		$	25,913			$	(75,078	)		$	51,659			$	(71,551	)
Plus: Preferred Dividends			8,416				6,764				16,587				12,862
Plus: Interest Expense, including Amortization of Financing Costs			9,387				9,050				18,546				18,259
Plus: Depreciation and Amortization			13,943				12,242				26,829				24,428
Plus: Net Amortization of Acquired Above and Below Market Lease Revenue			26				26				51				51
Less/Plus: Unrealized Holding (Gains) Losses Arising During the Periods			(19,186	)			83,075				(38,906	)			86,710
Less: Gain on Sale of Securities Transactions			(2,248	)			-0-				(2,248	)			-0-
Adjusted EBITDA		$	36,251			$	36,079			$	72,518			$	70,759

 

 

NOI Reconciliations

(unaudited) (in thousands)

 

		For The								For The
		Three Months Ended								Six Months Ended
		3/31/2021				3/31/2020				3/31/2021				3/31/2020
Net Operating Income
Net Income (Loss) Attributable to Common Shareholders		$	25,913			$	(75,078	)		$	51,659			$	(71,551	)
Plus: Preferred Dividends			8,416				6,764				16,587				12,862
Plus: General & Administrative Expenses			2,091				2,396				4,117				4,660
Plus: Non-recurring Strategic Alternative & Proxy Costs			1,993				-0-				2,239				-0-
Plus: Non-recurring Severance Expense			-0-				-0-				-0-				786
Plus: Depreciation			13,064				11,475				25,141				22,907
Plus: Amortization of Capitalized Lease Costs and Intangible Assets			879				767				1,687				1,521
Plus: Interest Expense, including Amortization of Financing Costs			9,387				9,050				18,546				18,259
Less/Plus: Unrealized Holding (Gains) Losses Arising During the Periods			(19,186	)			83,075				(38,906	)			86,710
Less: Dividend Income			(1,587	)			(3,404	)			(3,195	)			(6,642	)
Less: Gain on Sale of Securities Transactions			(2,248	)			-0-				(2,248	)			-0-
Less: Lease Termination Income			-0-				-0-				(377	)			-0-
Net Operating Income – NOI		$	38,722			$	35,045			$	75,250			$	69,512

 

		For The								For The
		Three Months Ended								Six Months Ended
		3/31/2021				3/31/2020				3/31/2021				3/31/2020
Components of Net Operating Income Consists of:
Revenues:
Rental Revenue		$	39,246			$	35,114			$	76,091			$	69,983
Reimbursement Revenue			7,119				6,594				13,856				13,424
Total Rental and Reimbursement Revenue			46,365				41,708				89,947				83,407
Expenses:
Real Estate Taxes			5,604				5,029				10,922				10,064
Operating Expenses			2,039				1,634				3,775				3,831
Total Real Estate Taxes and Operating Expenses			7,643				6,663				14,697				13,895
Net Operating Income – NOI		$	38,722			$	35,045			$	75,250			$	69,512

 

 

Financial Highlights

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

 

		For The												For The
		Three Months Ended												Six Months Ended
		3/31/2021				3/31/2020				Change (%)				3/31/2021				3/31/2020				Change (%)
Weighted Average Common Shares Outstanding
Basic			98,298				97,864				0.4	%			98,200				97,370				0.9	%
Diluted			98,496				97,941				0.6	%			98,352				97,466				0.9	%
Net Income (Loss) Attributable to Common Shareholders		$	25,913			$	(75,078	)			(134.5	)%		$	51,659			$	(71,551	)			(172.2	)%
Basic		$	0.26			$	(0.77	)			(133.8	)%		$	0.53			$	(0.73	)			(172.6	)%
Diluted			0.26				(0.77	)			(133.8	)%			0.53				(0.73	)			(172.6	)%
Net Operating Income – NOI		$	38,722			$	35,045				10.5	%		$	75,250			$	69,512				8.3	%
Basic		$	0.39			$	0.36				8.3	%		$	0.77			$	0.71				8.5	%
Diluted			0.39				0.36				8.3	%			0.77				0.71				8.5	%
Funds From Operations – FFO		$	20,639			$	20,199				2.2	%		$	39,517			$	39,520				0.0	%
Basic		$	0.21			$	0.21				0.0	%		$	0.40			$	0.41				(2.4	)%
Diluted			0.21				0.21				0.0	%			0.40				0.41				(2.4	)%
Adjusted Funds From Operations – AFFO		$	19,418			$	19,352				0.3	%		$	37,833			$	39,284				(3.7	)%
Basic		$	0.20			$	0.20				0.0	%		$	0.39			$	0.40				(2.5	)%
Diluted			0.20				0.20				0.0	%			0.38				0.40				(5.0	)%
Dividends Declared per Common Share		$	0.18			$	0.17							$	0.35			$	0.34
Dividend/AFFO Payout Ratio			90.0	%			85.0	%							92.1	%			85.0	%

 

 

Same Property Statistics

(unaudited) (in thousands except for square feet)

 

		For The Three Months Ended
			3/31/2021				3/31/2020				Change				Change %
Total Square Feet / Total Properties			24,582,127 / 121				23,019,627 / 116				1,562,500				6.8	%
Occupancy Percentage at End of Period			99.7	%			99.4	%			30 bps				0.3	%
Same Property Square Feet / Number of Same Properties			22,480,788 / 114
Same Property Occupancy Percentage at End of Period			99.6	%			99.4	%			20 bps				0.2	%
Same Property Net Operating Income (NOI) (GAAP)		$	34,092			$	34,492			$	(400	)			(1.2	)%
Reversal of Effect of Non-cash U.S. GAAP Straight-line Rent Adjustment			(751	)			(661	)			(90	)
Same Property Cash NOI		$	33,341			$	33,831			$	(490	)			(1.4	)%

 

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
		3/31/2021				3/31/2020				Change				Change %
Same Property NOI (GAAP)		$	34,092			$	34,492			$	(400	)			(1.2	)%
NOI of properties purchased subsequent to December 31, 2019 (four properties purchased during fiscal 2020 and two properties purchased during fiscal 2021)			4,000				7
NOI of property expanded subsequent to December 31, 2019 (one property expanded during fiscal 2021)			630				546
Total NOI		$	38,722			$	35,045			$	3,677				10.5	%

 

 

Same Property Statistics

(unaudited) (in thousands except for square feet)

 

		For The Six Months Ended
		3/31/2021				3/31/2020				Change				Change %
Total Square Feet / Total Properties			24,582,127 / 121				23,019,627 / 116				1,562,500				6.8	%
Occupancy Percentage at End of Period			99.7	%			99.4	%			30 bps				0.3	%
Same Property Square Feet / Number of Same Properties			21,865,041 / 113
Same Property Occupancy Percentage at End of Period			99.6	%			99.4	%			20 bps				0.3	%
Same Property Net Operating Income (NOI) (GAAP)		$	65,758			$	66,020			$	(262	)			(0.4	)%
Reversal of Effect of Non-cash U.S. GAAP Straight-line Rent Adjustment			(1,036	)			(1,057	)			21
Same Property Cash NOI		$	64,722			$	64,963			$	(241	)			(0.4	)%

 

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
		3/31/2021				3/31/2020				Change				Change %
Same Property NOI (GAAP)		$	65,758			$	66,020			$	(262	)			(0.4	)%
NOI of properties purchased subsequent to September 30, 2019 (five properties purchased during fiscal 2020 and two properties purchased during fiscal 2021)			8,260				2,400
NOI of property expanded subsequent to September 30, 2019 (one property expanded during fiscal 2021)			1,232				1,092
Total NOI		$	75,250			$	69,512			$	5,738				8.3	%

 

 

Consolidated Statements of Cash Flows

(unaudited)(in thousands)

 

		For The
		Six Months Ended
		3/31/2021				3/31/2020
CASH FLOWS FROM OPERATING ACTIVITIES
Net Income (Loss)		$	68,246			$	(58,689	)
Noncash Items Included in Net Income (Loss):
Depreciation & Amortization			27,505				25,186
Deferred Straight Line Rent			(1,661	)			(1,232	)
Stock Compensation Expense			134				270
Securities Available for Sale Received as Dividend Income			(494	)			(745	)
Realized Gain on Sale of Securities Transactions			(2,248	)			-0-
Unrealized Holding (Gains) Losses Arising During the Periods			(38,906	)			86,710
Changes in:
Tenant & Other Receivables			2,747				(2,302	)
Prepaid Expenses			(5,652	)			(5,201	)
Other Assets & Capitalized Lease Costs			(654	)			(1,380	)
Accounts Payable, Accrued Expenses & Other Liabilities			5,409				5,237
NET CASH PROVIDED BY OPERATING ACTIVITIES			54,426				47,854
CASH FLOWS FROM INVESTING ACTIVITIES
Purchase of Real Estate & Intangible Assets			(170,568	)			(99,424	)
Capital Improvements			(3,560	)			(3,314	)
Return of Deposits on Real Estate			5,000				1,300
Deposits Paid on Acquisitions of Real Estate			(3,210	)			(200	)
Proceeds from the Sale of Securities Transactions			16,327				-0-
Proceeds from Securities Available for Sale Called for Redemption			2,500				250
NET CASH USED IN INVESTING ACTIVITIES			(153,511	)			(101,388	)
CASH FLOWS FROM FINANCING ACTIVITIES
Net Repayments on Loans Payable			-0-				(20,000	)
Proceeds from Fixed Rate Mortgage Notes Payable			104,000				61,900
Principal Payments on Fixed Rate Mortgage Notes Payable			(37,196	)			(27,191	)
Financing Costs Paid on Debt			(569	)			(2,078	)
Proceeds from the Exercise of Stock Options			1,966				1,016
Proceeds from At-The-Market 6.125% Series C Preferred Stock, net of offering costs			75,958				80,288
Proceeds from Issuance of Common Stock in the DRIP, net of Dividend Reinvestments			320				18,489
Shares repurchased through the Common Stock Repurchase Plan			-0-				(3,209	)
Preferred Dividends Paid			(16,190	)			(12,445	)
Common Dividends Paid, net of Reinvestments			(33,338	)			(27,502	)
NET CASH PROVIDED BY FINANCING ACTIVITIES			94,951				69,268
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS			(4,134	)			15,734
CASH AND CASH EQUIVALENTS - BEGINNING OF PERIOD			23,517				20,179
CASH AND CASH EQUIVALENTS - END OF PERIOD		$	19,383			$	35,913

 

 

Capital Structure and Leverage Ratios

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

 

		As of				As of				As of
		3/31/2021				3/31/2020				9/30/2020
Fixed Rate Mortgage Notes Payable, net of Unamortized Debt Issuance Costs		$	866,224			$	779,742			$	799,507
Loans Payable			75,000				75,000				75,000
Total Debt			941,224				854,742				874,507
6.125% Series C Cumulative Redeemable Preferred Stock			549,640				429,215				471,994
Common Stock, Additional Paid-In-Capital & Other			586,460				579,628				565,611
Total Shareholders’ Equity			1,136,100				1,008,843				1,037,605
Total Book Capitalization			2,077,324				1,863,585				1,912,112
Accumulated Depreciation			321,047				272,372				296,020
Total Undepreciated Book Capitalization		$	2,398,371			$	2,135,957			$	2,208,132
Shares Outstanding			98,301				97,980				98,054
Market Price Per Share		$	17.69			$	12.05			$	13.85
Equity Market Capitalization		$	1,738,944			$	1,180,654			$	1,358,049
Total Debt			941,224				854,742				874,507
Total Preferred Stock			549,640				429,215				471,994
Total Market Capitalization		$	3,229,808			$	2,464,611			$	2,704,550
Total Debt		$	941,224			$	854,742			$	874,507
less: Cash and Cash Equivalents			19,383				35,913				23,517
Net Debt		$	921,841			$	818,829			$	850,990
less: Securities Available for Sale at Fair Value (Securities)			131,654				99,035				108,832
Net Debt Less Securities		$	790,187			$	719,794			$	742,158
Net Debt / Total Undepreciated Book Capitalization			38.4	%			38.3	%			38.5	%
Net Debt / Total Market Capitalization			28.5	%			33.2	%			31.5	%
Net Debt Plus Preferred Stock / Total Market Capitalization			45.6	%			50.6	%			48.9	%
Net Debt Less Securities / Total Undepreciated Book Capitalization			32.9	%			33.7	%			33.6	%
Net Debt Less Securities / Total Market Capitalization			24.5	%			29.2	%			27.4	%
Net Debt Less Securities Plus Preferred Stock / Total Market Capitalization			41.5	%			46.6	%			44.9	%
Weighted Average Interest Rate on Fixed Rate Mortgage Debt			3.87	%			4.04	%			3.98	%
Weighted Average Term on Fixed Rate Mortgage Debt			11.3 yrs.				11.3 yrs.				11.1 yrs.
Weighted Average Lease Term			7.4 yrs.				7.4 yrs.				7.1 yrs.

 

 

Capital Structure and Leverage Ratios

(unaudited) (in thousands)

 

		For the Three Months Ended								For the Six Months Ended								Fiscal Year Ended
		3/31/2021				3/31/2020				3/31/2021				3/31/2020				9/30/2020
Net Income (Loss) Attributable to Common Shareholders		$	25,913			$	(75,078	)		$	51,659			$	(71,551	)		$	(48,617	)
Plus: Preferred Dividends			8,416				6,764				16,587				12,862				26,474
Plus: Interest Expense, including Amortization of Financing Costs			9,387				9,050				18,546				18,259				36,376
Plus: Depreciation and Amortization			13,943				12,242				26,829				24,428				49,850
Plus: Net Amortization of Acquired Above and Below Market Lease Revenue			26				26				51				51				103
Less/Plus: Unrealized Holding (Gains) Losses Arising During the Periods			(19.186	)			83,075				(38,906	)			86,710				77,380
Less: Gain on Sale of Securities Transactions			(2,248	)			-0-				(2,248	)			-0-				-0-
Adjusted EBITDA		$	36,251			$	36,079			$	72,518			$	70,759			$	141,566
Interest Expense, including Amortization of Financing Costs		$	9,387			$	9,050			$	18,546			$	18,259			$	36,376
Preferred Dividends			8,416				6,764				16,587				12,862				26,474
Total Fixed Charges		$	17,803			$	15,814			$	35,133			$	31,121			$	62,850
Interest Coverage			3.9 x				4.0 x				3.9 x				3.9 x				3.9 x
Fixed Charge Coverage			2.0 x				2.3 x				2.1 x				2.3 x				2.3 x
Net Debt		$	921,841			$	818,829			$	921,841			$	818,829			$	850,990
Net Debt Less Securities			790,187				719,794				790,187				719,794				742,158
Total Preferred Stock			549,640				429,215				549,640				429,215				471,994
Annualized Adjusted EBITDA			145,004				144,316				145,036				141,518				141,566
Net Debt / Adjusted EBITDA			6.4 x				5.7 x				6.4 x				5.8 x				6.0 x
Net Debt Less Securities / Adjusted EBITDA			5.4 x				5.0 x				5.4 x				5.1 x				5.2 x
Net Debt + Preferred Stock / Adjusted EBITDA			10.1 x				8.6 x				10.1 x				8.8 x				9.3 x
Net Debt Less Securities + Preferred Stock / Adjusted EBITDA			9.2 x				8.0 x				9.2 x				8.1 x				8.6 x

 

 

Debt Maturity

(unaudited) (In thousands)

  

 

 

						Loans								% of
Fiscal Year Ended		Mortgages				Payable				Total				Total
2021		$	32,994				-0-			$	32,994				3.5	%
2022			82,261				-0-				82,261				8.7	%
2023			67,446				-0-				67,446				7.1	%
2024			80,898				-0-				80,898				8.5	%
2025			75,305				75,000		(B)		150,305				15.8	%
Thereafter			535,271				-0-				535,271				56.4	%
Total as of 3/31/2021	(A)	$	874,175			$	75,000			$	949,175				100.0	%
Weighted Average Interest Rate			3.87	%			2.92	%			3.79	%
Weighted Average Term			11.3 yrs.				3.8 yrs.				10.7 yrs.

 

	(A)	Mortgages does not include unamortized debt issuance costs of $8.0 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.				47				10,072,613				10,072,613				41.0	%		$	80,425,000				50.4	%		$	7.98			$	1,145,432,472				$	481,827,489
FedEx Corporation				16				1,164,813				1,164,813				4.7	%			7,492,000				4.7	%			6.43				109,268,273					19,866,854
Total FedEx				63				11,237,426				11,237,426				45.7	%			87,917,000				55.1	%			7.82				1,254,700,745					501,694,343
Subsidiaries of Amazon.com, Inc.				5				1,491,245				1,491,245				6.1	%			10,742,000				6.7	%			7.20				166,563,589					92,487,325
Milwaukee Electric Tool Corporation				1				861,889				861,889				3.5	%			3,098,000				1.9	%			3.59				36,914,917					17,077,442
Shaw Industries, Inc.				1				831,764				831,764				3.4	%			3,563,000				2.2	%			4.28				56,025,945					27,307,666
Home Depot U.S.A., Inc.				2				828,748				828,748				3.4	%			6,580,000				4.1	%			7.94				105,267,022					56,580,100
ULTA, Inc.				1				671,354				671,354				2.7	%			2,782,000				1.7	%			4.14				37,773,835					16,608,157
Jim Beam Brands Company (Beam Suntory)				1				599,840				599,840				2.4	%			2,112,000				1.3	%			3.52				28,000,000					14,053,653
International Paper Company				2				578,491				578,491				2.4	%			2,663,000				1.7	%			4.60				37,024,608					17,141,951
TreeHouse Private Brands, Inc.				1				558,509				558,509				2.3	%			2,267,000				1.4	%			4.06				26,807,852					13,398,393
B. Braun Medical Inc.				1				399,440				399,440				1.6	%			2,330,000				1.5	%			5.83				30,939,752					16,700,284
UGN, Inc.				1				387,000				387,000				1.6	%			2,107,000				1.3	%			5.44				21,576,756					12,012,144
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					7,683,077
Toyota Tsusho America, Inc.				1				350,418				350,418				1.4	%			1,722,000				1.1	%			4.91				25,078,587					15,672,277
Coca-Cola				2				328,045				328,045				1.3	%			1,741,000				1.1	%			5.31				20,504,069					1,561,589
Autoneum North America, Inc.				1				315,560				315,560				1.3	%			1,746,000				1.1	%			5.53				21,040,396					12,436,595
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	%			1,457,000				0.9	%			5.42				18,731,674					4,469,872
Woodstream Corporation	(A)			1				256,000				256,000				1.0	%			987,000				0.6	%			3.86				8,965,820					-0-
Anda Pharmaceuticals, Inc.				1				234,660				234,660				1.0	%			1,220,000				0.8	%			5.20				14,550,000					5,912,358
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					10,461,574
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				0.7	%			1,160,000				0.7	%			6.29				18,494,917					4,265,418
Carlstar Group, LLC				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				152,995				152,995				0.6	%			1,201,000				0.8	%			7.85				17,557,830					8,709,964
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					5,486,626
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	%			1,329,000				0.8	%			10.56				19,972,983					9,163,631
Keurig Dr Pepper				2				110,080				110,080				0.4	%			757,000				0.5	%			6.88				10,498,031					1,340,408
Style Crest, Inc.				1				106,507				106,507				0.4	%			433,000				0.3	%			4.07				7,315,077					-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	%			508,000				0.3	%			4.97				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					817,462
Joseph T. Ryerson and Son, Inc.				1				89,123				89,123				0.4	%			519,000				0.3	%			5.82				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				7,427,594					-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				0.3	%			616,000				0.4	%			10.07				3,139,564					-0-
SOFIVE, Inc.	(C)			1				60,400				60,400				0.3	%			653,000				0.4	%			10.81				5,296,752					1,132,814
Locke Supply Co.				1				60,000				60,000				0.3	%			340,000				0.2	%			5.67				5,097,101					-0-
Hartford Healthcare Corporation				1				54,812				54,812				0.2	%			307,000				0.2	%			5.60				3,525,917					-0-
Siemens Real Estate				1				51,130				51,130				0.2	%			464,000				0.3	%			9.07				4,554,684					-0-
Collins Aerospace (Raytheon Technologies Corporation)				1				38,833				38,833				0.2	%			368,000				0.3	%			9.48				5,100,000					-0-
Foundation Building Materials, LLC				1				36,270				36,270				0.1	%			179,000				0.2	%			4.94				2,543,770					-0-
Graybar Electric Company				1				26,340				26,340				0.1	%			122,000				0.2	%			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 3/31/21				121				24,582,127				24,498,241				99.7	%		$	159,484,000				100.0	%		$	6.51			$	2,212,662,780		(D)		$	874,175,123

 

	(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 March 31, 2021 quarter end, on April 15, 2021, we sold our 60,400 square foot building located in Carlstadt (New York, NY), NJ for $13.0 million.
	(D)	Does not include unamortized debt issuance costs of $7,950,710.

 

 

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				2,358,769				2,358,769				9.6	%		$	15,863,000				9.9	%		$	6.73			$	208,977,770			$	95,373,696
Georgia			7				2,297,214				2,297,214				9.3	%			16,177,000				10.1	%			7.04				260,177,386				134,241,920
Florida			13				2,223,042				2,223,042				9.0	%			16,002,000				10.0	%			7.20				228,973,596				81,155,183
Indiana			4				1,965,341				1,965,341				8.0	%			11,212,000				7.0	%			5.70				167,720,415				90,022,997
Texas			10				1,790,337				1,790,337				7.3	%			13,844,000				8.7	%			7.73				183,313,395				62,967,217
Kentucky			3				1,295,849				1,295,849				5.3	%			5,237,000				3.3	%			4.04				66,111,852				32,938,672
South Carolina			6				1,273,676				1,273,676				5.2	%			9,882,000				6.2	%			7.76				129,988,441				50,264,014
North Carolina			5				1,225,987				1,225,987				5.0	%			8,713,000				5.5	%			7.11				132,581,066				65,258,660
Mississippi			4				1,158,889				1,158,889				4.7	%			4,560,000				2.9	%			3.93				56,102,135				22,989,800
Illinois			9				958,102				958,102				3.9	%			6,254,000				3.9	%			6.53				83,501,254				6,993,784
Tennessee			3				891,777				891,777				3.6	%			3,203,000				2.0	%			3.59				35,677,250				2,839,266
Michigan			4				833,717				833,717				3.4	%			5,578,000				3.5	%			6.69				73,470,169				21,252,767
Kansas			4				813,062				813,062				3.3	%			5,038,000				3.2	%			6.20				62,331,797				24,089,850
Missouri			4				740,119				740,119				3.0	%			3,003,000				1.9	%			4.06				35,460,181				-0-
Oklahoma			5				735,721				735,721				3.0	%			4,943,000				3.1	%			6.72				69,942,758				34,340,980
New York			3				518,565				518,565				2.1	%			3,500,000				2.2	%			6.75				51,999,081				18,097,558
Pennsylvania			3				504,040				423,184				2.1	%			2,822,000				1.8	%			6.67				36,959,671				11,372,160
New Jersey			3				471,765				468,735				1.9	%			6,597,000				4.1	%			14.07				92,423,938				49,644,761
Alabama			2				451,832				451,832				1.8	%			2,670,000				1.7	%			5.91				39,714,135				16,174,712
Virginia			5				407,443				407,443				1.7	%			2,474,000				1.6	%			6.07				35,059,207				3,133,095
Colorado			2				295,227				295,227				1.2	%			2,441,000				1.5	%			8.27				35,694,134				14,025,354
Arizona			1				288,045				288,045				1.2	%			1,409,000				0.9	%			4.89				16,824,226				1,561,589
Wisconsin			2				238,666				238,666				1.0	%			1,295,000				0.8	%			5.43				16,377,221				1,792,489
Washington			1				210,445				210,445				0.9	%			1,962,000				1.2	%			9.32				30,369,301				14,873,208
Louisiana			1				175,315				175,315				0.7	%			1,274,000				0.8	%			7.27				18,425,875				9,305,177
Maryland			1				148,881				148,881				0.6	%			1,455,000				0.9	%			9.77				14,554,355				-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				8,029,768
Minnesota			1				60,370				60,370				0.2	%			372,000				0.2	%			6.16				5,231,864				1,436,446
Connecticut			1				54,812				54,812				0.2	%			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 3/31/21			121				24,582,127				24,498,241				100.0	%		$	159,484,000				100.0	%		$	6.51			$	2,212,662,780		(A)	$	874,175,123

 

(A)

Does not include unamortized debt issuance costs of $7,950,710.

 

 

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				2				111,933				0.5	%		$	702,000				0.4	%		$	6.27				0.3			$	8,629,094			$	-0-
2022				5				1,065,169				4.3	%			5,623,000				3.5	%			5.28				0.9				71,748,060				18,219,681
2023	(A)			16				2,117,731				8.6	%			12,076,000				7.6	%			5.70				2.2				149,134,784				15,789,253
2024				13				1,887,039				7.7	%			11,797,000				7.4	%			6.25				3.1				137,535,999				20,969,151
2025	(A)			11				2,607,541				10.6	%			13,027,000				8.2	%			5.00				4.1				170,717,740				60,301,840
2026	(A)			12				1,626,798				6.6	%			10,137,000				6.4	%			6.23				5.2				128,584,115				19,511,980
2027				13				2,390,188				9.7	%			13,297,000				8.3	%			5.56				6.4				187,718,445				60,548,227
2028				10				2,172,458				8.8	%			11,857,000				7.4	%			5.46				7.0				152,892,273				41,920,192
2029				9				1,831,303				7.4	%			10,610,000				6.7	%			5.79				8.1				147,852,403				58,048,178
2030				6				1,162,402				4.7	%			9,143,000				5.7	%			7.87				9.0				134,734,635				64,605,100
2031				6				1,218,941				5.0	%			9,684,000				6.1	%			7.94				9.6				135,727,800				64,155,534
2032				8				2,131,983				8.7	%			18,862,000				11.8	%			8.85				11.1				291,154,266				157,072,940
2033				3				1,038,508				4.2	%			8,844,000				5.5	%			8.52				12.0				137,743,258				77,494,094
2034				3				1,561,256				6.4	%			9,365,000				5.9	%			6.00				13.0				127,748,518				75,249,680
2035				3				856,283				3.5	%			8,343,000				5.2	%			9.74				14.3				131,119,464				83,709,173
2041				1				657,518				2.7	%			5,501,000				3.5	%			8.37				19.7				93,963,705				56,580,100
Various tenants at retail shopping center				1				64,220				0.3	%			616,000				0.4	%			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 3/31/21				121				24,582,127				100.0	%		$	159,484,000				100.0	%		$	6.51				7.4			$	2,212,662,780		(B)	$	874,175,123

 

	(A)	Included in 2023 is Altec Industries and included in 2026 is Woodstream Corporation, 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 $7,950,710.

 

 

Recent Acquisitions During Fiscal 2021

(unaudited)

 

				City				Date of		Square				Annual				Rent Per				Lease				Purchase				Initial Mortgage
No		Tenant		(MSA)		State		Acquisition		Footage				Rent				sf Occup.				Expiration				Price				Balance
1		FedEx Ground Package System, Inc.		Plain City (Columbus)		OH		12/17/2020			500,268			$	4,569,000			$	9.13				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 3/31/21									1,157,786			$	10,070,000			$	8.70							$	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				7.3			$	36,914,917			$	17,077,442
2		Shaw Industries, Inc.		Savannah		GA			2018				100.0	%			831,764				3,563,000				4.28				6.5				56,025,945				27,307,666
3		ULTA, Inc.		Greenwood (Indianapolis)		IN			2015				100.0	%			671,354				2,782,000				4.14				4.3				37,773,835				16,608,157
4		Home Depot U.S.A., Inc.		Locust Grove (Atlanta)		GA			2021				100.0	%			657,518				5,501,000				8.37				19.7				93,963,705				56,580,100
5		Amazon.com.indc, LLC		Greenwood (Indianapolis)		IN			2020				100.0	%			615,747				4,991,000				8.11				13.4				79,363,910				49,839,143
6		Jim Beam Brands Company (Beam Suntory)		Frankfort (Lexington)		KY			2015				100.0	%			599,840				2,112,000				3.52				3.8				28,000,000				14,053,653
7		TreeHouse Private Brands, Inc.		Buckner (Louisville)		KY			2014				100.0	%			558,509				2,267,000				4.06				12.6				26,807,852				13,398,393
8		FedEx Ground Package System, Inc.		Plain City (Columbus)		OH			2021				100.0	%			500,268				4,569,000				9.13				14.5				71,741,593				46,583,680
9		FedEx Forward Depots, Inc.		Memphis		TN			2010				100.0	%			449,900				1,394,000				3.10				8.2				16,092,852				2,839,266
10		B. Braun Medical Inc.		Daytona Beach		FL			2018				100.0	%			399,440				2,330,000				5.83				11.9				30,939,752				16,700,284
11		UGN, Inc.		Monroe (Cincinnati)		OH			2015				100.0	%			387,000				2,107,000				5.44				12.9				21,576,756				12,012,144
12		Woodstream Corporation		St. Joseph		MO			2001				100.0	%			256,000				987,000				3.86				5.5				8,965,820				-0-
		Altec Industries, Inc.		St. Joseph		MO			2001				100.0	%			126,880				378,000				2.98				1.9				4,443,684				-0-
13		CBOCS Distribution, Inc. (Cracker Barrel)		Lebanon (Nashville)		TN			2011				100.0	%			381,240				1,490,000				3.91				3.3				14,215,126				-0-
14		FedEx Ground Package System, Inc.		Braselton (Atlanta)		GA			2018				100.0	%			373,750				3,801,000				10.17				11.9				60,227,126				34,803,477
15		Best Buy Warehousing Logistics, Inc.		Streetsboro (Cleveland)		OH			2012				100.0	%			368,060				1,725,000				4.69				0.8				19,600,000				7,683,077
16		Amazon.com Services, Inc. (Amazon.com, Inc.)		Mobile		AL			2018				100.0	%			362,942				2,065,000				5.69				7.7				33,052,316				16,174,712
17		FedEx Ground Package System, Inc.		Concord (Charlotte)		NC			2017				100.0	%			354,482				2,537,000				7.16				11.2				40,043,145				21,333,981
18		FedEx Ground Package System, Inc.		Mesquite (Dallas)		TX			2017				100.0	%			351,874				3,209,000				9.12				11.0				49,880,493				26,413,973
19		Toyota Tsusho America, Inc.		Lafayette		IN			2019				100.0	%			350,418				1,722,000				4.91				8.3				25,078,587				15,672,277
20		FedEx Ground Package System, Inc.		Trenton		NJ			2019				100.0	%			347,145				5,328,000				15.35				11.3				83,987,622				48,511,947
21		FedEx Ground Package System, Inc.		Walker (Grand Rapids)		MI			2017				100.0	%			343,483				2,106,000				6.13				10.8				31,654,987				16,628,521
22		FedEx Ground Package System, Inc.		Hamburg (Buffalo)		NY			2017				100.0	%			338,584				2,329,000				6.88				10.0				35,131,977				18,097,558
23		FedEx Ground Package System, Inc.		Concord (Charlotte)		NC			2016				100.0	%			330,717				2,237,000				6.76				4.3				33,053,688				14,828,954
24		FedEx Ground Package System, Inc.		Indianapolis		IN			2014				100.0	%			327,822				1,717,000				5.24				6.6				25,504,083				7,903,420
25		Autoneum North America, Inc.		Aiken (Augusta, GA)		SC			2017				100.0	%			315,560				1,746,000				5.53				11.1				21,040,396				12,436,595
26		FedEx Ground Package System, Inc.		Olathe (Kansas City)		KS			2016				100.0	%			313,763				2,553,000				8.14				10.2				33,074,860				16,871,156
27		FedEx Ground Package System, Inc.		Ft. Worth (Dallas)		TX			2015				100.0	%			312,923				2,394,000				7.65				9.1				35,622,709				17,128,242
28		FedEx Ground Package System, Inc.		Davenport (Orlando)		FL			2016				100.0	%			310,922				2,625,000				8.44				10.1				38,115,782				20,023,189
29		FedEx Ground Package System, Inc.		Jacksonville		FL			2015				100.0	%			304,859				1,998,000				6.55				8.8				30,925,530				13,226,732
30		Science Applications International Corporation		Hanahan (Charleston)		SC			2005				100.0	%			302,400				1,708,000				5.65				2.6				14,463,148				-0-
31		Amazon.com Services, Inc. (Amazon.com, Inc.)		Oklahoma City		OK			2018				100.0	%			300,000				1,948,000				6.49				6.6				29,878,942				16,939,330
32		International Paper Company		Kenton		OH			2017				100.0	%			298,472				1,281,000				4.29				6.4				18,730,500				9,923,257
33		Western Container Corp. (Coca-Cola)		Tolleson (Phoenix)		AZ			2003				100.0	%			288,045				1,409,000				4.89				6.1				16,824,226				1,561,589
34		FedEx Ground Package System, Inc.		Greensboro		NC			2020				100.0	%			286,281				3,002,000				10.49				14.1				46,710,877				29,095,725
35		International Paper Company		Edwardsville (Kansas City)		KS			2014				100.0	%			280,019				1,382,000				4.94				2.4				18,294,108				7,218,694
36		FedEx Ground Package System, Inc.		Charleston		SC			2018				100.0	%			265,318				2,713,000				10.23				12.3				46,576,380				25,990,333
37		NF&M International, Inc.		Monaca (Pittsburgh)		PA			1977				68.4	%			255,658				842,000				4.82				3.8				7,963,722				-0-
38		FedEx Ground Package System, Inc.		Orion		MI			2007				100.0	%			245,633				1,908,000				7.77				2.2				22,986,234				-0-
39		FedEx Ground Package System, Inc.		Homestead (Miami)		FL			2017				100.0	%			237,756				2,282,000				9.60				11.0				37,911,556				19,910,837
40		Anda Pharmaceuticals, Inc.		Olive Branch (Memphis, TN)		MS			2012				100.0	%			234,660				1,220,000				5.20				1.3				14,550,000				5,912,358
41		FedEx Ground Package System, Inc.		Colorado Springs		CO			2016				100.0	%			225,362				1,832,000				8.13				4.8				29,320,066				14,025,354
42		Mickey Thompson Performance Tires and Wheels (Cooper Tire)		Stow		OH			2017				100.0	%			219,765				1,537,000				6.99				6.4				18,934,065				10,461,574
43		Rinnai America Corporation		Griffin (Atlanta)		GA			2006				100.0	%			218,120				913,000				4.19				1.8				15,082,217				-0-
44		FedEx Ground Package System, Inc.		Ft. Myers		FL			2017				100.0	%			213,672				1,418,000				6.64				6.4				21,684,310				11,294,141
45		FedEx Ground Package System, Inc.		Burlington (Seattle/Everett)		WA			2016				100.0	%			210,445				1,962,000				9.32				9.4				30,369,301				14,873,208
46		FedEx Ground Package System, Inc.		Sauget (St. Louis, MO)		IL			2015				100.0	%			198,729				1,036,000				5.21				8.2				15,265,895				6,993,784
47		Anheuser-Busch, Inc.		Granite City (St. Louis, MO)		IL			2001				100.0	%			184,800				854,000				4.62				0.7				12,757,540				-0-
48		Carrier Enterprise, LLC (Carrier Global Corporation)		Carrollton (Dallas)		TX			2010				100.0	%			184,317				1,160,000				6.29				2.8				18,494,917				4,265,418
49		FedEx Ground Package System, Inc.		Spring (Houston)		TX			2014				100.0	%			181,176				1,581,000				8.73				3.5				19,328,922				6,280,542
50		Carlstar Group, LLC		Edwardsville (Kansas City)		KS			2003				100.0	%			179,280				771,000				4.30				2.3				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				7.4				17,063,643				-0-
52		FedEx Ground Package System, Inc.		Covington (New Orleans)		LA			2016				100.0	%			175,315				1,274,000				7.27				4.3				18,425,875				9,305,177
53		FedEx Ground Package System, Inc.		Tampa		FL			2004				100.0	%			174,975				1,624,000				9.28				5.3				19,745,245				-0-
54		FedEx Ground Package System, Inc.		Livonia (Detroit)		MI			2013				100.0	%			172,668				1,194,000				6.92				1.0				13,879,697				4,624,246
55		Home Depot U.S.A., Inc.		Montgomery (Chicago)		IL			2004				100.0	%			171,230				1,079,000				6.30				1.8				11,303,317				-0-
56		FedEx Ground Package System, Inc.		Edinburg		TX			2011				100.0	%			164,207				1,097,000				6.68				5.5				12,039,014				-0-
57		FedEx Ground Package System, Inc.		Lindale (Tyler)		TX			2015				100.0	%			163,383				725,000				4.44				3.3				9,965,550				4,612,911
58		Bunzl Distribution Midcentral, Inc.		Kansas City		MO			2015				100.0	%			158,417				714,000				4.51				5.5				10,003,235				-0-
59		FedEx Ground Package System, Inc.		Oklahoma City		OK			2012				100.0	%			158,340				1,048,000				6.62				4.3				12,624,833				2,057,230
60		Magna Seating of America, Inc.		Lancaster (Columbus)		OH			2020				100.0	%			152,995				1,201,000				7.85				8.8				17,557,830				8,709,964

 

 

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				4.4			$	12,551,368			$	3,448,669
62		FedEx Ground Package System, Inc.				Beltsville (Washington, DC)		MD			2001				100.0	%			148,881				1,455,000				9.77				7.3				14,554,355				-0-
63		Victory Packaging, L.P.				Fayetteville		NC			1997				100.0	%			148,000				504,000				3.41				3.9				5,458,279				-0-
64		FedEx Ground Package System, Inc.				El Paso		TX			2006				100.0	%			144,199				1,345,000				9.33				2.5				12,431,192				-0-
65		FedEx Ground Package System, Inc.				Cocoa		FL			2008				100.0	%			144,138				1,112,000				7.71				3.5				14,127,449				-0-
66		FedEx Ground Package System, Inc.				Cudahy (Milwaukee)		WI			2001				100.0	%			139,564				827,000				5.93				6.3				9,807,221				-0-
67		Challenger Lifts, Inc. (Snap-On Inc.)				Louisville		KY			2016				100.0	%			137,500				858,000				6.24				5.2				11,304,000				5,486,626
68		FedEx Ground Package System, Inc.				Richfield (Cleveland)		OH			2006				100.0	%			131,152				1,493,000				11.38				3.5				16,494,189				-0-
69		FedEx Ground Package System, Inc.				Savannah		GA			2019				100.0	%			126,520				1,765,000				13.95				7.6				27,531,560				15,550,677
70		General Electric Company				Imperial (Pittsburgh)		PA			2016				100.0	%			125,860				1,329,000				10.56				9.8				19,972,983				9,163,631
71		FedEx Ground Package System, Inc.				Wheeling (Chicago)		IL			2003				100.0	%			123,000				1,272,000				10.34				6.2				19,015,257				-0-
72		FedEx Ground Package System, Inc.				Altoona		PA			2014				100.0	%			122,522				651,000				5.31				2.4				9,022,966				2,208,529
73		FedEx Corporation				Charleston		SC			2018				100.0	%			121,683				1,314,000				10.80				11.4				21,538,966				11,837,086
74		Amazon.com Services, LLC				Oklahoma City		OK			2020				100.0	%			120,780				935,000				7.74				9.4				14,962,513				9,534,140
75		FedEx Corporation				Mechanicsville (Richmond)		VA			2001				100.0	%			112,799				541,000				4.80				2.1				7,836,425				-0-
76		FedEx Corporation				Orlando		FL			2008				100.0	%			110,621				666,000				6.02				6.7				8,810,059				-0-
77		Bunzl Distribution Oklahoma, Inc.				Oklahoma City		OK			2017				100.0	%			110,361				743,000				6.73				3.4				8,728,439				4,469,872
78		Style Crest, Inc.				Winston-Salem		NC			2002				100.0	%			106,507				433,000				4.07				5.0				7,315,077				-0-
79		Sonwil Distribution Center, Inc.				Cheektowaga (Buffalo)		NY			2002				100.0	%			104,981				630,000				6.00				0.8				10,960,823				-0-
80		FedEx Ground Package System, Inc.				West Chester Twp. (Cincinnati)		OH			2000				100.0	%			103,818				560,000				5.39				2.4				5,733,686				-0-
81		FedEx Ground Package System, Inc.				Roanoke		VA			2013				100.0	%			103,580				755,000				7.29				2.1				10,200,000				3,133,095
82		Pittsburgh Glass Works, LLC, a Division of VITRO				O’ Fallon (St. Louis)		MO			1994				100.0	%			102,135				508,000				4.97				5.3				4,249,615				-0-
83		FedEx Ground Package System, Inc.				Green Bay		WI			2013				100.0	%			99,102				468,000				4.72				2.2				6,570,000				1,792,489
84		Dakota Bodies, LLC				Liberty (Kansas City)		MO			1998				100.0	%			96,687				416,000				4.30				5.1				7,797,827				-0-
85		FedEx Corporation				Jacksonville		FL			1999				100.0	%			95,883				536,000				5.59				8.2				6,584,384				-0-
86		FedEx Corporation				Tampa		FL			2006				100.0	%			95,662				603,000				6.30				6.7				8,274,811				-0-
87		Amazon.com Services, Inc.				Hanahan (Charleston)		SC			2005				100.0	%			91,776				803,000				8.75				8.3				9,305,908				-0-
88		National Oilwell Varco, Inc.				Houston		TX			2010				100.0	%			91,295				801,000				8.77				8.5				8,190,901				817,462
89		Joseph T. Ryerson and Son, Inc.				Elgin (Chicago)		IL			2002				100.0	%			89,123				519,000				5.82				3.8				7,184,598				-0-
90		FedEx Corporation				Omaha		NE			1999				100.0	%			89,115				446,000				5.00				2.6				5,963,626				-0-
91		FedEx Ground Package System, Inc.				Huntsville		AL			2005				100.0	%			88,890				605,000				6.81				5.3				6,661,819				-0-
92		CHEP USA, Inc.				Roanoke		VA			2007				100.0	%			83,000				509,000				6.13				3.9				7,463,672				-0-
93		FedEx Corporation				Bedford Heights (Cleveland)		OH			2007				100.0	%			82,269				438,000				5.32				7.4				7,304,467				-0-
94		United Parcel Service, Inc.				Halfmoon (Albany)		NY			2012				100.0	%			75,000				541,000				7.21				10.0				5,906,281				-0-
95		FedEx Corporation				Schaumburg (Chicago)		IL			1997				100.0	%			73,500				478,000				6.50				6.0				5,447,053				-0-
96		FedEx Corporation				Romulus (Detroit)		MI			1998				100.0	%			71,933				370,000				5.14				0.2				4,949,251				-0-
97		FedEx Ground Package System, Inc.				Denver		CO			2005				100.0	%			69,865				609,000				8.72				4.6				6,374,068				-0-
98		FedEx Corporation				Ogden (Salt Lake City)		UT			2020				100.0	%			69,734				772,000				11.07				14.0				12,666,994				8,029,768
99		Tampa Bay Grand Prix				Tampa		FL			2005				100.0	%			68,385				369,000				5.40				6.5				5,677,982				-0-
100		Sherwin-Williams Company				Rockford		IL			2011				100.0	%			66,387				486,000				7.32				2.8				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				8.5				6,750,000				-0-
103		FedEx Corporation				Chattanooga		TN			2007				100.0	%			60,637				319,000				5.26				1.6				5,369,272				-0-
104		SOFIVE, Inc.		(A)		Carlstadt (New York, NY)		NJ			2001				100.0	%			60,400				653,000				10.81				8.8				5,296,752				1,132,814
105		FedEx Ground Package System, Inc.				Stewartville (Rochester)		MN			2013				100.0	%			60,370				372,000				6.16				2.2				5,231,864				1,436,446
106		Locke Supply Co.				Richmond		VA			2004				100.0	%			60,000				340,000				5.67				11.1				5,097,101				-0-
107		FedEx Ground Package System, Inc.				Augusta		GA			2005				100.0	%			59,358				513,000				8.64				2.2				5,363,304				-0-
108		Hartford Healthcare Corporation				Newington (Hartford)		CT			2001				100.0	%			54,812				307,000				5.60				10.1				3,525,917				-0-
109		Siemens Real Estate				Lebanon (Cincinnati)		OH			2012				100.0	%			51,130				464,000				9.07				3.1				4,554,684				-0-
110		FedEx Corporation				Charlottesville		VA			1999				100.0	%			48,064				329,000				6.85				6.4				4,462,009				-0-
111		FedEx Ground Package System, Inc.				Corpus Christi		TX			2012				100.0	%			46,253				454,000				9.82				5.4				4,808,329				-0-
112		Keurig Dr Pepper				Tulsa		OK			2014				100.0	%			46,240				269,000				5.82				2.9				3,748,031				1,340,408
113		Heartland Coca-Cola Bottling Company, LLC (Coca-Cola)				Topeka		KS			2009				100.0	%			40,000				332,000				8.30				0.5				3,679,843				-0-
114		Collins Aerospace Systems (Raytheon Technologies Corporation)				Rockford		IL			2015				100.0	%			38,833				368,000				9.48				6.3				5,100,000				-0-
115		Foundation Building Materials, LLC				Urbandale (Des Moines)		IA			1994				100.0	%			36,270				179,000				4.94				6.8				2,543,770				-0-
116		FedEx Corporation				Richland (Jackson)		MS			1994				100.0	%			36,000				120,000				3.33				3.0				1,900,691				-0-

 

 

Property Table

(unaudited)

 

																							Rent				Lease Exp. Term
				City				Fiscal Year							Square				Annual				Per sf				in				Undepreciated				Mortgage
No		Tenant		(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				6.3			$	4,133,510			$	-0-
118		FedEx Corporation		Lakeland		FL		2006				100.0	%			32,105				155,000				4.83				6.7				2,043,226				-0-
119		FedEx Corporation		Augusta		GA		2006				100.0	%			30,184				121,000				4.01				1.7				1,983,529				-0-
120		Graybar Electric Company		Ridgeland (Jackson)		MS		1993				100.0	%			26,340				122,000				4.63				4.3				2,736,527				-0-
121		Sherwin-Williams Company		Burr Ridge (Chicago)		IL		1997				100.0	%			12,500				162,000				12.96				5.6				1,876,367				-0-
		Total as of 3/31/21										99.7	%			24,582,127			$	159,484,000			$	6.51				7.4			$	2,212,662,780		(B)	$	874,175,123

 

	(A)	Subsequent to the March 31, 2021 quarter end, on April 15, 2021, we sold our 60,400 square foot building located in Carlstadt (New York, NY), NJ for $13.0 million.
	(B)	Does not include unamortized debt issuance costs of $7,950,710.

 

 

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, gains on the sale of securities, lease termination income, non-recurring severance expense, non-recurring strategic alternative & proxy costs, 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 strategic alternative & proxy costs, 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, gain on sale of securities transactions, 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 less gain on sale of real estate investment and gain on sale of securities.

 

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 

 

May 4, 2021

Contact: Becky Coleridge

732-577-9996

 

MONMOUTH REAL ESTATE REPORTS RESULTS FOR

THE SECOND QUARTER ENDED MARCH 31, 2021

 

HOLMDEL, NJ, May 4, 2021........ Monmouth Real Estate Investment Corporation (NYSE:MNR) reported Net Income Attributable to Common Shareholders of $25.9 million or $0.26 per diluted share for the three months ended March 31, 2021 as compared to Net (Loss) Attributable to Common Shareholders of $(75.1) million or $(0.77) per diluted share for the three months ended March 31, 2020, representing an increase of $101.0 million or $1.03 per diluted share. During the three months ended March 31, 2021, we recognized a $19.2 million unrealized gain or $0.19 per diluted share as compared to an $(83.1) million unrealized (loss) or $(0.85) per diluted share for the three months ended March 31, 2020. Funds from Operations (FFO), which excludes unrealized and realized gains or losses from our securities portfolio, for the three months ended March 31, 2021 were $20.6 million or $0.21 per diluted share versus $20.2 million or $0.21 per diluted share for the three months ended March 31, 2020, 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, 2021 were $19.4 million or $0.20 per diluted share versus $19.4 million or $0.20 per diluted share for the three months ended March 31, 2020, representing consistent per diluted share earnings. Sequentially, our FFO of $0.21 per diluted share for the second quarter of fiscal 2021 is $0.02 higher than our FFO of $0.19 per diluted share for the first quarter of fiscal 2021, representing a 10.5% increase. In addition, our AFFO of $0.20 per diluted share for the second quarter of fiscal 2021 is $0.01 higher than our AFFO of $0.19 per diluted share for the first quarter of fiscal 2021, representing a 5.3% increase.

 

A summary of significant financial information for the three and six months ended March 31, 2021 and 2020 (in thousands, except per share amounts) is as follows:

 

		Three Months Ended March 31,
		2021				2020
Rental Revenue		$	39,246			$	35,114
Reimbursement Revenue		$	7,119			$	6,594
Net Operating Income (NOI) (1)		$	38,722			$	35,045
Total Expenses		$	25,670			$	21,301
Dividend Income		$	1,587			$	3,404
Realized Gain on Sale of Securities Transactions		$	2,248			$	-0-
Unrealized Holding Gains (Losses) Arising During the Periods		$	19,186			$	(83,075	)
Net Income (Loss)		$	34,329			$	(68,314	)
Net Income (Loss) Attributable to Common Shareholders		$	25,913			$	(75,078	)
Net Income (Loss) Attributable to Common Shareholders Per Diluted Common Share		$	0.26			$	(0.77	)
FFO (1)		$	20,639			$	20,199
FFO per Diluted Common Share (1)		$	0.21			$	0.21
AFFO (1)		$	19,418			$	19,352
AFFO per Diluted Common Share (1)		$	0.20			$	0.20
Dividends Declared per Common Share		$	0.18			$	0.17
Weighted Avg. Diluted Common Shares Outstanding			98,496				97,941

 

 

		Six Months Ended March 31,
		2021				2020
Rental Revenue		$	76,091			$	69,983
Reimbursement Revenue		$	13,856			$	13,424
Lease Termination Income		$	377			$	-0-
Net Operating Income (NOI) (1)		$	75,250			$	69,512
Total Expenses		$	47,881			$	43,769
Dividend Income		$	3,195			$	6,642
Realized Gain on Sale of Securities Transactions		$	2,248			$	-0-
Unrealized Holding Gains (Losses) Arising During the Periods		$	38,906			$	(86,710	)
Net Income (Loss)		$	68,246			$	(58,689	)
Net Income (Loss) Attributable to Common Shareholders		$	51,659			$	(71,551	)
Net Income (Loss) Attributable to Common Shareholders Per Diluted Common Share		$	0.53			$	(0.73	)
FFO (1)		$	39,517			$	39,520
FFO per Diluted Common Share (1)		$	0.40			$	0.41
AFFO (1)		$	37,833			$	39,284
AFFO per Diluted Common Share (1)		$	0.38			$	0.40
Dividends Declared per Common Share		$	0.35			$	0.34
Weighted Avg. Diluted Common Shares Outstanding			98,352				97,466

 

A summary of significant balance sheet information as of March 31, 2021 and September 30, 2020 (in thousands) is as follows:

 

		March 31, 2021				September 30, 2020
Cash and Cash Equivalents		$	19,383			$	23,517
Real Estate Investments		$	1,891,627			$	1,747,844
Securities Available for Sale at Fair Value		$	131,654			$	108,832
Total Assets		$	2,108,416			$	1,939,783
Fixed Rate Mortgage Notes Payable, net of Unamortized Debt Issuance Costs		$	866,224			$	799,507
Loans Payable		$	75,000			$	75,000
Total Shareholders’ Equity		$	1,136,100			$	1,037,605

 

During the second quarter, we accomplished the following:

 

	●	Increased our Revenue by 11.2% over the prior year period to $46.4 million;
	●	Increased our Net Operating Income by 10.5% over the prior year period to $38.7 million;
	●	Increased our Gross Leasable Area (GLA) by 7% over the prior year period to 24.6 million square feet;
	●	Grew our acquisition pipeline to six new build-to-suit properties containing 1.8 million total square feet, all of which will be leased to Investment Grade tenants, at an aggregate cost of $238.1 million;
	●	Increased our overall occupancy rate by 30 basis points over the prior year period to a sector leading 99.7% currently;
	●	Renewed so far this fiscal year, eight of the ten leases set to expire during fiscal 2021. These eight lease renewals, comprising 1.1 million square feet resulted in a 7.2% increase in GAAP rent, a 0.4% increase in cash rent, and have a weighted average lease term of 4.1 years;
	●	Maintained a weighted average lease term of 7.4 years;
	●	Increased our annualized average base rent per occupied square foot by 4% to $6.51 from the prior year period;
	●	Maintained a weighted average debt maturity on our fixed-rate mortgage debt of 11.3 years;
	●	Reduced the weighted average interest rate on our fixed-rate mortgage debt to 3.87% from 4.04% in the prior year period;
	●	Realized $2.2 million in gains from the sale of REIT securities and reported an additional $19.2 million in unrealized gains on our securities portfolio.

 

 

Highlights from the Second Quarter of Fiscal 2021:

 

●	Acquisitions. To date in fiscal 2021, Monmouth has 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. These two properties are expected to generate $10.1 million in annual rent.
●	Pipeline. Monmouth’s $238.1 million acquisition pipeline currently contains six new build-to-suit properties, comprising 1.8 million total square feet. These properties have a weighted average lease term of 13.5 years and are expected to generate $13.7 million in annual rent. These projects are all leased to investment grade tenants, with 70% leased to FedEx Ground and 30% leased to Mercedes-Benz.
●	Parking Expansion Projects. In addition to the acquisition pipeline and recently completed expansion projects, the Company has several FedEx Ground parking expansion projects in progress with more under discussion. Currently the Company has eight FedEx Ground parking expansion projects underway that it expects to cost approximately $31.4 million. These parking expansion projects will enable Monmouth to capture additional rent while lengthening the terms of these leases.
●	Lease Renewals. The Company has renewed eight of the ten leases that were set to expire this fiscal year. These eight lease renewals represent 91% of the 1.2 million square feet expiring this year. These lease renewals have a weighted average lease term of 4.1 years, and a weighted average lease rate of $4.61 per square foot on a GAAP basis and $4.49 on a cash basis. This represents an increase of 7.2% on a GAAP basis and an increase of 0.4% on a cash basis.
●	Key Financial Metrics and Ratios. At quarter end, Monmouth’s weighted average lease maturity was 7.4 years and its weighted average mortgage debt maturity was 11.3 years. For the quarter, Net Debt to Adjusted EBITDA was at 6.4x, Fixed Charge Coverage at 2.0x, and Net Debt to Total Market Capitalization at 29%. The Company’s occupancy rate has been over 98.9% for six consecutive years and its weighted average lease term has exceeded seven years for seven consecutive years.
●	Securities Portfolio. At quarter end, the Company’s $131.7 million securities portfolio represented 5.4% of its undepreciated assets. During the quarter, Monmouth sold marketable REIT securities for gross proceeds totaling $16.3 million with an original cost basis of $14.1 million, resulting in a realized gain of $2.2 million. In addition, the Company had unrealized gains of $19.2 million from its securities portfolio during the quarter and $38.9 million in unrealized gains since fiscal year-end.
●	Asset Sale. Subsequent to the quarter end, on April 15, 2021, Monmouth sold its 60,400 square foot building located in Carlstadt (New York, NY), NJ for $13.0 million. Prior to the sale, the Company owned a 51% interest in this property. Its 51% portion of the sale proceeds resulted in a U.S. GAAP net realized gain of approximately $4.2 million, representing a 206% gain over the depreciated U.S. GAAP basis and a net realized gain of approximately $3.6 million, or 132% net gain over its historic undepreciated cost.

 

Merger Transaction with Equity Commonwealth

 

As announced on May 4, 2021, following a comprehensive strategic alternatives process, the Company entered into a definitive merger agreement by which Equity Commonwealth (NYSE: EQC) will acquire Monmouth in an all-stock transaction, valued at approximately $3.4 billion, including the assumption of debt. The combined company is expected to have a pro forma equity market capitalization of approximately $5.5 billion.

 

Under the terms of the agreement, Monmouth shareholders will receive 0.67 shares of Equity Commonwealth stock for every share of Monmouth stock they own. Based on the closing price for Equity Commonwealth on May 4, 2021, this represents approximately $19.40 per Monmouth share. The merger agreement provides for Monmouth to declare and pay one additional regular quarterly common stock dividend of $0.18 per share without Equity Commonwealth paying a corresponding common dividend to its shareholders. Accordingly, the total consideration to be received by the Monmouth shareholders in the transaction is $19.58 per Monmouth share.

 

Under the terms of the merger agreement, Monmouth plans to continue to pay its regular quarterly common stock dividend and its Series C Cumulative Redeemable Preferred Stock dividend between signing and closing of the transaction. Equity Commonwealth expects to begin paying a quarterly dividend after the transaction has closed. The Equity Commonwealth Board of Trustees will determine the timing and amount of the dividend.

 

The transaction is expected to close during the second half of calendar 2021, subject to customary closing conditions, including the approval by the common shareholders of both Equity Commonwealth and Monmouth.

 

In light of the pending transaction with Equity Commonwealth, we do not intend to host a conference call or webcast in connection with our second quarter FY 2021 financial results. The results will be available on the Company’s website at www.mreic.reit in the Investor Relations section, under Filings and Reports.

 

 

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 120 properties, containing a total of approximately 24.5 million rentable square feet, geographically diversified across 31 states. Our occupancy rate is currently 99.7%, our weighted average building age is currently 9.9 years, and our percentage of revenue derived from Investment Grade tenants or their subsidiaries is currently 83%.

 

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 include risks and uncertainties relating to the proposed merger with Equity Commonwealth and other risks and uncertainties described in in our annual report on Form 10-K and 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 strategic alternative & proxy 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, 2021 and 2020 (in thousands):

 

		Three Months Ended								Six Months Ended
		3/31/2021				3/31/2020				3/31/2021				3/31/2020
Net Income (Loss) Attributable to Common Shareholders		$	25,913			$	(75,078	)		$	51,659			$	(71,551	)
Less/Plus: Unrealized Holding (Gains) Losses Arising During the Periods			(19,186	)			83,075				(38,906	)			86,710
Plus: Depreciation Expense (excluding Corporate Office Capitalized Costs)			13,007				11,409				25,026				22,788
Plus: Amortization of Intangible Assets			600				508				1,132				1,016
Plus: Amortization of Capitalized Lease Costs			305				285				606				557
FFO Attributable to Common Shareholders			20,639				20,199				39,517				39,520
Plus: Depreciation of Corporate Office Capitalized Costs			57				66				116				118
Plus: Stock Compensation Expense			77				114				134				270
Plus: Amortization of Financing Costs			346				322				676				758
Plus: Non-recurring Strategic Alternative & Proxy Costs			1,993				-0-				2,239				-0-
Plus: Non-recurring Severance Expense			-0-				-0-				-0-				786
Less: Gain on Sale of Securities Transactions			(2,248	)			-0-				(2,248	)			-0-
Less: Lease Termination Income			-0-				-0-				(377	)			-0-
Less: Recurring Capital Expenditures			(403	)			(717	)			(563	)			(936	)
Less: Effect of Non-cash U.S. GAAP Straight-line Rent Adjustment			(1,043	)			(632	)			(1,661	)			(1,232	)
AFFO Attributable to Common Shareholders		$	19,418			$	19,352			$	37,833			$	39,284

 

The following are the Cash Flows provided (used) by Operating, Investing and Financing Activities for the six months ended March 31, 2021 and 2020 (in thousands):

 

		Six Months Ended
		3/31/2021				3/31/2020
Operating Activities		$	54,426			$	47,854
Investing Activities			(153,511	)			(101,388	)
Financing Activities			94,951				69,268

 

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