Monmouth Real Estate Investment Corporation Reports Results for the Year Ended and Fourth Quarter September 30, 2012

Monmouth Real Estate Investment Corporation Reports Results for the Year Ended
                    and Fourth Quarter September 30, 2012

PR Newswire

FREEHOLD, N.J., Dec. 12, 2012

FREEHOLD, N.J., Dec. 12, 2012 /PRNewswire/ -- Monmouth Real Estate Investment
Corporation (NYSE: MNR) reported Funds from operations (FFO) of $26,120,000 or
$0.66 per diluted share for the twelve months ended September 30, 2012 as
compared to $22,877,000 or $0.65 per diluted share for the twelve months ended
September 30, 2011. Adjusted FFO (which we define as FFO plus acquisition
costs) for the full fiscal year 2012 was $26,788,000 versus $23,302,000 in
2011. On a diluted per share basis, Adjusted FFO was $0.67 per share in fiscal
2012 versus $0.66 per share in 2011. For the three months ended September 30,
2012, FFO was $4,156,000 or $0.10 per diluted share, as compared to $4,701,000
or $0.13 per diluted share for the comparable period a year ago. During our
latest fiscal quarter, FFO was impacted by approximately $1,057,000 or $0.03
per diluted share of additional preferred dividends following our latest
preferred stock offering and the subsequent deployment of our capital which is
still ongoing. 

A summary of significant financial information for the three and twelve months
ended September 30, 2012 and 2011 is as follows:

                                                  Three-Months Ended

                                                  September 30
                                                  2012         2011
Rental Revenue                                  $ 11,261,000 $ 10,020,000
Reimbursement Revenue                           $ 1,785,000  $ 1,938,000
Total Expenses                                  $ 6,833,000  $ 6,181,000
Interest and Dividend Income                    $ 784,000    $ 871,000
Gain on Securities Transactions, net            $ 366,000    $ 147,000
Income from Continuing Operations               $ 2,825,000  $ 2,691,000

Income from Discontinued Operations             $ - 0 -      $ 68,000
Net Income Attributable to Common Shareholders  $ 673,000    $ 1,740,000
Net Income Attributable to Common Shareholders             

 Per Common Share                          $ 0.02       $ 0.05
FFO (1)                                         $ 4,156,000  $ 4,701,000
FFO Per Common Share (1)                        $ 0.10       $ 0.13
Weighted Avg. Diluted Common Shares Outstanding   40,703,000   36,555,000

                                                  Twelve Months Ended

                                                  September 30,
                                                  2012         2011
Rental Revenue                                  $ 43,394,000 $ 40,235,000
Reimbursement Revenue                           $ 7,095,000  $ 7,907,000
Lease Termination Income                        $ 3,222,000  $ - 0 -
Total Expenses                                  $ 26,657,000 $ 24,602,000
Interest and Dividend Income                    $ 3,359,000  $ 3,100,000
Gain on Securities Transactions, net            $ 6,044,000  $ 5,238,000
Income from Continuing Operations               $ 18,665,000 $ 15,152,000

Income from Discontinued Operations             $ 20,000     $ 266,000
Net Income Attributable to Common Shareholders  $ 13,171,000 $ 11,339,000
Net Income Attributable to Common Shareholders             

 Per Common Share                          $ 0.33       $ 0.32
FFO (1)                                         $ 26,120,000 $ 22,877,000
FFO Per Common Share (1)                        $ 0.66       $ 0.65
Weighted Avg. Diluted Common Shares Outstanding   39,820,000   35,132,000

A summary of significant balance sheet information as of September 30, 2012
and 2011 is as follows:

                                      September 30,   September 30,

                                      2012            2011
Net Real Estate Investments         $ 468,967,000   $ 409,024,000
Securities Available for Sale       $ 61,685,000    $ 44,265,000
Total Assets                        $ 574,508,000   $ 476,987,000
Mortgage Notes Payable              $ 237,944,000   $ 211,614,000
Subordinated Convertible Debentures $ 8,615,000     $ 8,915,000
Loans Payable                       $ 5,200,000     $ 16,861,000
Total Shareholders' Equity          $ 315,687,000   $ 234,514,000

Eugene W. Landy, President, commented on the results of fiscal year 2012, "We
continued to successfully expand our portfolio through the pursuit of
selective high quality acquisitions and by opportunistically accessing the
public capital markets. During 2012, the Company accomplished among the
following:

  oAcquired 1.0 million square feet of high quality industrial space
    increasing gross leasable area by 13% and income from property operations
    by 17%
  oRe-leased over 1.5 million square feet
  oRaised approximately $85 million in common and preferred equity capital
  oEntered into contracts to acquire 1.8 million square feet in new Class A
    build-to suits
  oContracted to add approximately 200,000 square feet in building
    expansions."

Mr. Landy stated, "Our business model of investing in net-leased industrial
properties on long-term leases to investment grade tenants continued to
deliver solid performance despite weaknesses in the broader economy. During
fiscal 2012, we successfully re-leased 11 of the 12 expiring leases as well as
a building that was previously vacant, representing a total of 1.5 million
square feet of new leases. 10 of these new leases totaling approximately 1.1
million square feet were renewals with existing tenants representing an
overall 86% tenant retention rate. Our occupancy rate is currently 95%."

"In addition to the 1.0 million square feet representing $70.4 million in
acquisitions in fiscal 2012, Monmouth has already added another 172,000 square
feet in acquisitions since year end and has an acquisition pipeline of eight
new Class A build-to-suit, industrial buildings totaling 1.8 million square
feet that are currently being developed. The total purchase price for these
eight properties is approximately $109.0 million."

"We made significant progress in fiscal 2012 through a combination of
opportunistic capital raises, including preferred and common equity that
generated approximately $85 million in total proceeds. This includes $57.5
million in preferred equity that we raised this past June. We ended the year
with net debt to total market capitalization at 28% and with $24.7 million in
cash and cash equivalents reflecting yet to be spent proceeds from our recent
preferred stock offering. Given our sizeable acquisition pipeline and our
strong financial position, we are well positioned to continue to grow the
Company going into 2013."

Monmouth Real Estate Investment Corporation, a real estate investment trust
(REIT) specializing in net-leased industrial properties, will host its Fourth
Quarter and Fiscal Year-End 2012 Financial Results Webcast and Conference
Call. Senior management will discuss quarterly results, current market
conditions and future outlook on Thursday, December 13, 2012 at 10:00 a.m.
Eastern Time.

Monmouth Real Estate's fourth quarter and fiscal year-end financial results
and supplemental information herewith will be available on the company website
at www.mreic.comin the "Financial Information & Filings" section.

To participate in the webcast select the microphone icon at the top of the
homepage on the company's website at www.mreic.com. Interested parties can
also participate via conference call by calling toll free 877-317-6789
(domestically) or 412-317-6789 (internationally).

The replay of the conference call will be available at 12:00 p.m. Eastern Time
on Thursday, December 13, 2012. It will be available until January 31, 2013,
and can be accessed by dialing toll free 877-344-7529 (domestically) and
412-317-0088 (internationally) and entering the passcode 10019790. A
transcript of the call and the webcast replay will be available at the
company's website, www.mreic.com.

Formed in 1968, Monmouth Real Estate Investment Corporation is a
publicly-owned real estate investment trust specializing in net-leased
industrial properties subject to long-term leases primarily to investment
grade tenants. The Company is a fully integrated and self-managed real estate
company, whose property portfolio consists of seventy-two industrial
properties and one shopping center located in twenty-six states. In addition,
the Company owns a portfolio of REIT securities.

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

Notes:

(1) Non-GAAP Information: FFO is defined by the National Association of Real
Estate Investment Trusts ("NAREIT") as net income applicable to common
shareholders, excluding gains or losses from sales of depreciable assets, plus
real estate-related depreciation and amortization. Adjusted FFO is defined
as FFO plus acquisition costs. FFO per common share is defined as FFO divided
by weighted average diluted common shares outstanding. FFO and Adjusted FFO
per common share should be considered as supplemental measures of operating
performance used by real estate investment trusts (REITs). FFO and Adjusted
FFO per common share exclude historical cost depreciation as an expense and
may facilitate the comparison of REITs which have different cost basis. The
items excluded from FFO and Adjusted FFO per common share are significant
components in understanding the Company's financial performance.

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

The Company's FFO and Adjusted FFO for the three and twelve months ended
September 30, 2012 and 2011 is calculated as follows:

                              Three Months Ended      Twelve Months Ended
                              9/30/2012   9/30/2011   9/30/2012    9/30/2011
Net Income Attributable to
Common                        $673,000    $1,740,000  $13,171,000  $11,339,000

 Shareholders
Depreciation Expense          3,019,000   2,649,000   11,471,000   10,313,000
Depreciation Related to                                         
Discontinued
                              - 0 -       12,000      - 0 -       39,000
 Operations
Amortization of In-Place                                         
Lease                         464,000
                                          300,000     1,478,000    1,186,000
 Intangible Assets
FFO Attributable to Common    $4,156,000  $4,701,000  $26,120,000  $22,877,000
Shareholders
Acquisition Costs             47,000      20,000      68,000       425,000
Adjusted FFO Attributable to  $4,203,000  $4,721,000  $26,788,000  $23,302,000
Common Shareholders

The following are the cash flows provided (used) by operating, investing and
financing activities for the twelve months ended September 30, 2012 and 2011:

                     Twelve Months Ended
                     2012          2011
Operating Activities $26,809,000   $22,127,000
Investing Activities (80,640,000)  (30,366,000)
Financing Activities 72,105,000    7,801,000

The following is the net income per common share for the three and twelve
months ended September 30, 2012 and 2011:

                                Three Months Ended  Twelve Months Ended
                                9/30/12    9/30/11       9/30/12      9/30/11
BASIC INCOME – PER SHARE
 Income from Continuing      $0.07      $0.07         $0.47        $0.43
Operations
 Income from Discontinued    - 0 -      - 0 -         - 0 -        0.01
Operations
 Net Income                  0.07       0.07          0.47         0.44
 Less: Preferred Dividend   (0.05)     (0.02)        (0.14)       (0.12)
 Net Income Attributable to                                     

 Common Shareholders  $0.02      $0.05         $0.33        $0.32
- Basic
DILUTED INCOME – PER SHARE


 Income from Continuing      $0.07      $0.07         $0.47        $0.43
Operations
 Income from Discontinued    - 0 -      - 0 -         - 0 -        0.01
Operations
 Net Income                  0.07       0.07          0.47         0.44
 Less: Preferred Dividend   (0.05)     (0.02)        (0.14)       (0.12)
 Net Income Attributable to                                     

 Common Shareholders  $0.02      $0.05         $0.33        $0.32
- Diluted



SOURCE Monmouth Real Estate Investment Corporation

Website: http://www.mreic.com
Contact: Susan Jordan, +1-732-577-9996
 
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