Monmouth Real Estate Investment Corporation Reports 1st Quarter 2013 Financial Results For The Period Ended December 31, 2012

Monmouth Real Estate Investment Corporation Reports 1st Quarter 2013 Financial
                Results For The Period Ended December 31, 2012

PR Newswire

FREEHOLD, N.J., Feb. 7, 2013

FREEHOLD, N.J., Feb. 7, 2013 /PRNewswire/ -- Monmouth Real Estate Investment
Corporation (NYSE: MNR) reported Core Funds from Operations (Core FFO) for the
three months ended December 31, 2012 of $7,459,000 or $0.18 per diluted share
versus $7,754,000 or $0.21 per diluted share for the three months ended
December 31, 2011. Funds from operations (FFO) as defined by the National
Association of Real Estate Investment Trusts (NAREIT) was $7,073,000 or $0.17
per diluted share for the three months ended December 31, 2012 as compared to
$7,450,000 or $0.20 per diluted share for the three months ended December 31,
2011. FFO, as defined by NAREIT, for the current quarter included $386,000 of
acquisition related costs, which are not included in Core FFO.

A summary of significant financial information for the three months ended
December 31, 2012 and 2011 is as follows:

                                                  Three Months Ended

                                                  December 31,
                                                  2012         2011
Rental Revenue                                  $ 11,309,000 $ 10,658,000
Reimbursement Revenue                           $ 1,518,000  $ 1,580,000
Lease Termination Income                        $ 691,000    $ 0
Total Expenses                                  $ 6,492,000  $ 6,176,000
Interest and Dividend Income                    $ 1,123,000  $ 949,000
Gain on Securities Transactions, net            $ 2,111,000  $ 2,788,000
Income from Continuing Operations               $ 5,711,000  $ 5,318,000
Income (Loss) from Discontinued Operations      $ (4,026)    $ 48,000
Net Income Attributable to Common Shareholders  $ 3,555,000  $ 4,346,000
Net Income Attributable to Common Shareholders                 
                                                $ 0.09       $
 Per Common Share                                           0.12
Core FFO (1)                                    $ 7,459,000  $ 7,754,000
Core FFO per Common Share (1)                   $ 0.18       $ 0.21
Weighted Avg. Diluted Common Shares Outstanding   41,110,000   37,472,000



A summary of significant balance sheet information as of December 31, 2012 and
September 30, 2012 is as follows:



                                      December 31,   September 30,

                                      2012           2012
Net Real Estate Investments         $ 508,264,000  $ 467,886,000
Securities Available for Sale       $ 66,786,000   $ 61,685,000
Total Assets                        $ 610,034,000  $ 574,508,000
Mortgage Notes Payable              $ 256,287,000  $ 237,944,000
Subordinated Convertible Debentures $ 0            $ 8,615,000
Loans Payable                       $ 27,708,000   $ 5,200,000
Total Shareholders' Equity          $ 318,403,000  $ 315,687,000

 

Eugene W. Landy, President, commented on the results of the first quarter of
fiscal year 2013, "During the quarter we acquired two new properties comprised
of 787,000 square feet for a total of $42.4 million. We expect these two
properties to generate a combined total of approximately $3.2 million in
annual rent going forward. We financed these properties with a total of $27
million of mortgage financing at an average interest rate of 4.0%. In
addition, we purchased 4.1 acres of land adjacent to our property located in
Orion, MI for approximately $1.0 million in connection with a 52,154 square
feet expansion expected to be completed in fiscal 2013. We have now secured
lease renewals on 554,000 of the 897,000 square feet in leases originally set
to expire this fiscal year. Additional lease renewals are currently under
discussion. Our portfolio occupancy remains strong and is currently 94%,
reflecting the high quality of our assets. Our REIT securities portfolio
continued to perform well generating $2.1 million in realized gains over the
quarter. The Company remains very focused on continuing to grow our high
quality portfolio of industrial properties leased to investment grade tenants
through a combination of opportunistic acquisitions and by executing on our
strong development pipeline."

Monmouth Real Estate Investment Corporation will host its First Quarter 2013
Financial Results Webcast and Conference Call. Senior management will discuss
the results, current market conditions and future outlook on Friday, February
8, 2013 at 10:00 a.m. Eastern Time.

The Company's first quarter financial results being released herein will be
available on the Company's website at www.mreic.com in the "Financial
Information and 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 888-317-6016
(domestically) or 412-317-6016
(internationally).

The replay of the conference call will be available at 12:00 p.m. Eastern Time
on Friday February 8, 2013. It will be available until March 31, 2013, and
can be accessed by dialing toll free 877-344-7529 (domestically) and
412-317-0088 (internationally) and entering the passcode 10022450. 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-three 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. Core FFO is defined as
FFO plus acquisition costs. FFO per diluted common share is defined as FFO
divided by weighted average diluted common shares outstanding. FFO and Core
FFO per diluted common share should be considered as supplemental measures of
operating performance used by real estate investment trusts (REITs). FFO and
Core FFO per diluted 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 Core FFO per diluted common share are
significant components in understanding the Company's financial performance.

FFO and Core FFO per diluted 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 Core FFO per diluted common share, as calculated by the
Company, may not be comparable to similarly entitled measures reported by
other REITs.

The Company's FFO and Core FFO for the three months ended December 31, 2012
and 2011 are calculated as follows:



                                               Three Months Ended
                                               12/31/12    12/31/11
Net Income Attributable to Common Shareholders $3,555,000  $4,346,000
Depreciation Expense                           3,134,000   2,786,000
Amortization of Lease Intangible Assets        384,000     318,000
FFO Attributable to Common Shareholders        $7,073,000  $7,450,000
Acquisition Costs                              386,000     304,000
Core FFO Attributable to Common Shareholders   $7,459,000  $7,754,000

 

The following are the cash flows provided (used) by operating, investing and
financing activities for the quarters ended December 31, 2012 and 2011:



                     2012          2011
Operating Activities $4,992,000    $5,762,000
Investing Activities (49,688,000)  (32,379,000)
Financing Activities 30,329,000    28,958,000

SOURCE Monmouth Real Estate Investment Corporation

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