Monmouth Real Estate Investment Corporation Reports 2nd Quarter 2013 Financial Results For The Period Ended March 31, 2013

Monmouth Real Estate Investment Corporation Reports 2nd Quarter 2013 Financial
                 Results For The Period Ended March 31, 2013

PR Newswire

FREEHOLD, N.J., May 8, 2013

FREEHOLD, N.J., May 8, 2013 /PRNewswire/ -- Monmouth Real Estate Investment
Corporation (NYSE: MNR) reported Core Funds from Operations (Core FFO) for the
three months ended March 31, 2013 of $8,799,000 or $0.21 per diluted share
versus $10,654,000 or $0.27 per diluted share for the three months ended March
31, 2012. Core FFO for the prior year period included $3,222,000 or $0.08 per
share in non-recurring lease termination fees. Excluding the effect of these
fees, Core FFO for the three months ended March 31, 2012 was $7,432,000 or
$0.19 per diluted share.

A summary of significant financial information for the three and six months
ended March 31, 2013 and 2012 is as follows:



                                                       Three Months Ended

                                                       March 31,
                                                       2013         2012
Rental Revenue                                       $ 11,738,000 $ 10,692,000
Reimbursement Revenue                                $ 1,568,000  $ 1,876,000
Lease Termination Income                             $ -          $ 3,222,000
Total Expenses                                       $ 6,776,000  $ 6,692,000
Interest and Dividend Income                         $ 1,005,000  $ 893,000
Gain on Securities Transactions, net                 $ 3,803,000  $ 2,209,000
Income from Continuing Operations                    $ 7,343,000  $ 8,304,000

Income (Loss) from Discontinued Operations           $ 300,000    $ (44,000)
Net Income Attributable to Common Shareholders       $ 5,492,000  $ 7,240,000
Net Income Attributable to Common Shareholders                  

 Per Common Share                               $ 0.13       $ 0.18
Core FFO (1)                                         $ 8,799,000  $ 10,654,000
Core FFO per Common Share (1)                        $ 0.21       $ 0.27
Core FFO Excluding Lease Termination Fees (1)        $ 8,799,000  $ 7,432,000
Core FFO Excluding Lease Termination Fees per Common $ 0.21       $ 0.19
Share (1)
Weighted Avg. Diluted Common Shares Outstanding        41,989,000   40,044,000



                                                       Six Months Ended

                                                       March 31,
                                                       2013         2012
Rental Revenue                                       $ 23,048,000 $ 21,350,000
Reimbursement Revenue                                $ 3,086,000  $ 3,456,000
Lease Termination Income                             $ 691,000    $ 3,222,000
Total Expenses                                       $ 13,761,000 $ 13,256,000
Interest and Dividend Income                         $ 2,128,000  $ 1,842,000
Gain on Securities Transactions, net                 $ 5,913,000  $ 4,998,000
Income from Continuing Operations                    $ 13,054,000 $ 13,622,000

Income (Loss) from Discontinued Operations           $ 296,000    $ 4,000
Net Income Attributable to Common Shareholders       $ 9,047,000  $ 11,586,000
Net Income Attributable to Common Shareholders                  

 Per Common Share                               $ 0.22       $ 0.30
Core FFO (1)                                         $ 16,259,000 $ 18,416,000
Core FFO per Common Share (1)                        $ 0.39       $ 0.48
Core FFO Excluding Lease Termination Fees (1)        $ 15,568,000 $ 15,194,000
Core FFO Excluding Lease Termination Fees per Common $ 0.37       $ 0.39
Share (1)
Weighted Avg. Diluted Common Shares Outstanding        41,545,000   38,750,000



A summary of significant balance sheet information as of March 31, 2013 and
September 30, 2012 is as follows:

                                      March 31,     September 30,

                                      2013          2012
Net Real Estate Investments         $ 507,296,000 $ 467,886,000
Securities Available for Sale       $ 52,264,000  $ 61,685,000
Total Assets                        $ 604,773,000 $ 574,508,000
Mortgage Notes Payable              $ 251,353,000 $ 237,944,000
Subordinated Convertible Debentures $ -           $ 8,615,000
Loans Payable                       $ 17,200,000  $ 5,200,000
Total Shareholders' Equity          $ 327,900,000 $ 315,687,000

 

Michael P. Landy, President, commented on the results of the second quarter of
fiscal year 2013, "The recent quarter represented continued progress across
multiple fronts. Our occupancy rate improved by 100 basis points and to 95%
compared to occupancy of 94% reported in the December 2012 quarter. Our
portfolio wide average lease maturity improved to 6.1 years from 6.0 years in
the prior December quarter. We have now secured lease renewals on 93% of the
897,000 square feet in leases set to expire this fiscal year. We have $96
million in new acquisitions under contract representing 1.4 million square
feet in new industrial build-to-suit properties secured by investment grade
tenants on leases of 10 years or greater. These acquisitions are expected to
close in the second half of fiscal 2013 and during fiscal 2014. Our REIT
securities portfolio continued to perform well generating $3.8 million in
realized gains during the second quarter and $5.9 million in gains realized
thus far in fiscal 2013. At quarter end we had an additional $5.9 million in
unrealized gains on our REIT securities investments. We are very pleased with
our latest results and look forward to continuing to execute our growth
strategy of investing in net-leased industrial properties on long-term leases
to investment grade tenants."

Monmouth Real Estate Investment Corporation will host its Second Quarter 2013
Financial Results Webcast and Conference Call. Senior management will discuss
the results, current market conditions and future outlook on Thursday, May 9,
2013 at 10:00 a.m. Eastern Time.

The Company's second 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 Thursday, May 9, 2013. It will be available until June 30, 2013, and can
be accessed by dialing toll free 877-344-7529 (domestically) and 412-317-0088
(internationally) and entering the passcode 10025487. 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-US 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 accounting principles generally accepted in the
United States of America; (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 titled
measures reported by other REITs.

The Company's FFO and Core FFO for the three and six months ended March 31,
2013 and 2012 are calculated as follows:

                             Three Months Ended       Six Months Ended
                             3/31/2013   3/31/2012    3/31/2013    3/31/2012
Net Income Attributable to   $5,492,000  $7,240,000   $9,047,000   $11,586,000
Common Shareholders
Depreciation Expense         3,268,000   2,830,000    6,402,000    5,616,000
Amortization of Lease        385,000     322,000      770,000      640,000
Intangible Assets
(Gain) Loss on Sales of      (346,000)   -            (346,000)    8,000
Depreciated Assets
FFO Attributable to Common   $8,799,000  $10,392,000  $15,873,000  $17,850,000
Shareholders
Acquisition Costs            -           262,000      386,000      566,000
Core FFO Attributable to     $8,799,000  $10,654,000  $16,259,000  $18,416,000
Common Shareholders



The following are the cash flows provided (used) by operating, investing and
financing activities for the six months ended March 31, 2013 and 2012:

                     2013          2012
Operating Activities $11,690,000   $15,920,000
Investing Activities (30,607,000)  (43,439,000)
Financing Activities 14,397,000    32,698,000



SOURCE Monmouth Real Estate Investment Corporation

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