Monmouth Real Estate Investment Corporation Reports 3rd Quarter 2013 Financial Results For The Period Ended June 30, 2013

Monmouth Real Estate Investment Corporation Reports 3rd Quarter 2013 Financial
                  Results For The Period Ended June 30, 2013

PR Newswire

FREEHOLD, N.J., Aug. 7, 2013

FREEHOLD, N.J., Aug. 7, 2013 /PRNewswire/ -- Monmouth Real Estate Investment
Corporation (NYSE: MNR) reported Core Funds from Operations (Core FFO) for the
three months ended June 30, 2013 of $5,682,000 or $0.13 per diluted share
versus $4,177,000 or $0.10 per diluted share for the three months ended June
30, 2012. Excluding the $965,000 one-time severance expense incurred in the
previous year's third quarter, Core FFO was $5,142,000 million or $0.13 per
diluted share in the prior year period. Core FFO, excluding Gains on
Securities Transactions for the three months ended June 30, 2013 was
$4,619,000 or $0.11 per diluted share versus $3,497,000 or $0.09 per diluted
share for the three months ended June 30, 2012. 

A summary of significant financial information for the three and nine months
ended June 30, 2013 and 2012 is as follows:



                                                       Three Months Ended

                                                       June 30,
                                                       2013         2012
Rental Revenue                                       $ 11,712,000 $ 10,690,000
Reimbursement Revenue                                $ 2,342,000  $ 1,854,000
Total Expenses                                       $ 7,846,000  $ 7,716,000
Interest and Dividend Income                         $ 844,000    $ 733,000
Gain on Securities Transactions, net                 $ 1,063,000  $ 680,000
Income from Continuing Operations                    $ 4,185,000  $ 2,237,000
Income (Loss) from Discontinued Operations           $ (5,000)    $ (4,000)
Net Income Attributable to Common Shareholders       $ 2,029,000  $ 912,000
Net Income Attributable to Common Shareholders Per   $ 0.05       $ 0.02
Common Share
Core FFO (1)                                         $ 5,682,000  $ 4,177,000
Core FFO per Common Share (1)                        $ 0.13       $ 0.10
Weighted Avg. Diluted Common Shares Outstanding        42,823,000   40,340,000



                                                       Nine Months Ended

                                                       June 30,
                                                       2013         2012
Rental Revenue                                       $ 34,760,000 $ 32,039,000
Reimbursement Revenue                                $ 5,428,000  $ 5,310,000
Lease Termination Income                             $ 691,000    $ 3,222,000
Total Expenses                                       $ 21,607,000 $ 20,972,000
Interest and Dividend Income                         $ 2,972,000  $ 2,575,000
Gain on Securities Transactions, net                 $ 6,976,000  $ 5,678,000
Income from Continuing Operations                    $ 17,239,000 $ 15,859,000
Income from Discontinued Operations                  $ 292,000    $ 1,000
Net Income Attributable to Common Shareholders       $ 11,076,000 $ 12,498,000
Net Income Attributable to Common Shareholders                  

 Per Common Share                               $ 0.27       $ 0.32
Core FFO (1)                                         $ 21,948,000 $ 22,593,000
Core FFO per Common Share (1)                        $ 0.52       $ 0.58
Core FFO Excluding Lease Termination Fees (1)        $ 21,257,000 $ 19,371,000
Core FFO Excluding Lease Termination Fees per Common $ 0.51       $ 0.49
Share (1)
Weighted Avg. Diluted Common Shares Outstanding        41,959,000   39,276,000



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

                                      March 31,     September 30,
                                      2013
                                                    2012
Net Real Estate Investments         $ 522,046,000 $ 467,886,000
Securities Available for Sale       $ 46,769,000  $ 61,685,000
Total Assets                        $ 605,596,000 $ 574,508,000
Mortgage Notes Payable              $ 247,616,000 $ 237,944,000
Subordinated Convertible Debentures $ -           $ 8,615,000
Loans Payable                       $ 17,200,000  $ 5,200,000
Total Shareholders' Equity          $ 331,680,000 $ 315,687,000



Michael P. Landy, President and CEO, commented on the results for the third
quarter of fiscal year 2013, "Monmouth continued to make progress on several
fronts including:

  oAcquiring a new 103,402 square foot distribution center in Roanoke,
    Virginia for $10.2 million. This property is leased to FedEx Ground for
    the next 10 years.
  oRenewing 93% of our leases or 897,000 square feet set to expire this
    fiscal year. Our occupancy rate now stands at 95.9%, representing the
    highest occupancy rate in the industrial property sector.
  oExpanding our credit facility to $40 million with an accordion feature up
    to $60 million. Borrowings under the facility will bear interest at LIBOR
    plus 175 basis points to 250 basis points depending on the company's
    leverage ratio.
  oGrowing our acquisition pipeline to approximately 2.0 million square feet
    representing over $130 million in total acquisitions. In keeping with our
    business model, all of the deals in our current pipeline contain leases of
    10 years or longer and are all leased to investment grade tenants. In
    addition, we now have five building expansions in our pipeline. These
    expansions total 275,000 square feet and represent approximately $26.4
    million in total cost.
  oGenerating $1.1 million in realized gains on our REIT securities
    investments during the third quarter and $7.0 million in gains realized
    thus far in fiscal 2013.

Overall, we believe Monmouth continues to be well positioned to continue to
grow given our strong pipeline of deals and to take advantage of growth
opportunities in our sector given our solid balance sheet and available
liquidity."

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

The Company's third 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, August 8, 2013. It will be available until September 30, 2013,
and can be accessed by dialing toll free 877-344-7529 (domestically) and
412-317-0088 (internationally) and entering the passcode 10029761. A
transcript of the call and the webcast replay will be available at the
Company's website, www.mreic.com.

Monmouth Real Estate Investment Corporation, founded in 1968 and one of the
oldest public equity REITs in the U.S., specializes 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, containing a total of
approximately 9.4 million rentable square feet. 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.We define Core FFO as FFO
plus acquisition costs. FFO and Core FFO per diluted common share are defined
as FFO and Core 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 nine months ended June 30,
2013 and 2012 are calculated as follows:

                              Three Months Ended     Nine Months Ended
                              6/30/2013   6/30/2012   6/30/2013    6/30/2012
Net Income Attributable to    $2,028,788  $911,581    $11,075,760  $12,498,027
Common Shareholders
Depreciation Expense          3,193,923   2,836,134   9,603,474    8,451,907
Amortization of Intangible    384,703     374,071     1,154,109    1,013,882
Assets
(Gain) Loss on Sales of       -           -           (345,794)    8,220
Depreciable Assets
FFO Attributable to Common    5,607,414   4,121,786   21,487,549   21,972,036
Shareholders
Acquisition Costs             74,137      55,236      459,999      620,960
Core FFO Attributable to      $5,681,551  $4,177,022  $21,947,548  $22,592,996
Common Shareholders

The Company's Core FFO, excluding Lease Termination Income for the three and
nine months ended June 30, 2013 and 2012 are calculated as follows:

                              Three Months Ended     Nine Months Ended
                              6/30/2013   6/30/2012   6/30/2013    6/30/2012
Core FFO Attributable to      $5,681,551  $4,177,022  $21,947,548  $22,592,996
Common Shareholders
Less Lease Termination Income -           -           690,730      3,222,283
Core FFO excluding Lease
Termination Income            $5,681,551  $4,177,022  $21,256,818  $19,370,713
Attributable to Common
Shareholders

The following are the Cash Flows provided (used) by Operating, Investing and
Financing Activities for the nine months ended June 30, 2013 and 2012:

                     Nine Months Ended
                     6/30/13       6/30/12
Operating Activities $18,217,490   $21,348,526
Investing Activities (42,079,399)  (55,583,484)
Financing Activities 12,341,414    75,302,814



SOURCE Monmouth Real Estate Investment Corporation

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