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Monmouth Real Estate Investment Corporation Reports Results For The Fiscal Year Ended And The Fourth Quarter Ended September 30,

  Monmouth Real Estate Investment Corporation Reports Results For The Fiscal
          Year Ended And The Fourth Quarter Ended September 30, 2013

PR Newswire

FREEHOLD, N.J., Dec. 11, 2013

FREEHOLD, N.J., Dec. 11, 2013 /PRNewswire/ -- Monmouth Real Estate Investment
Corporation (NYSE: MNR) reported Core Funds from Operations (Core FFO) of
$27,378,000 or $0.65 per diluted share for the fiscal year ended September 30,
2013 as compared to $26,796,000 or $0.67 per diluted share for the fiscal year
ended September 30, 2012. Adjusted Funds from Operations (AFFO), for the
fiscal year ended September 30, 2013 was $20,213,000 or $0.48 per diluted
share versus $20,908,000 or $0.53 per diluted share for the fiscal year ended
September 30, 2012.During the fiscal years ended September 30, 2013 and 2012,
the Company reported one-time lease termination income of $691,000 and
$3,222,000, respectively.

Core FFO for the three months ended September 30, 2013 was $5,409,000 or $0.12
per diluted share versus $4,203,000 or $0.10 per diluted share for the three
months ended September 30, 2012. AFFO for the three months ended September
30, 2013 was $5,347,000 or $0.12 per diluted share versus $3,416,000 or $0.08
per diluted share for the three months ended September 30, 2012.

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

                                                       Three Months Ended

                                                       September 30,
                                                       2013         2012
Rental Revenue                                       $ 12,121,000 $ 11,234,000
Reimbursement Revenue                                $ 2,299,000  $ 1,785,000
Net Operating Income (NOI) (1)                       $ 11,657,000 $ 10,828,000
Total Expenses                                       $ 8,003,000  $ 7,339,000
Interest and Dividend Income                         $ 914,000    $ 784,000
Gain on Securities Transactions, net                 $ 157,000    $ 366,000
Income from Continuing Operations                    $ 3,864,000  $ 2,841,000
Income (Loss) from Discontinued Operations           $ -          $ (16,000)
Net Income Attributable to Common Shareholders       $ 1,712,000  $ 673,000
Net Income Attributable to Common Shareholders Per   $ 0.03       $ 0.02
Diluted Common Share
Core FFO (1)                                         $ 5,409,000  $ 4,203,000
Core FFO per Diluted Common Share (1)                $ 0.12       $ 0.10
AFFO (1)                                             $ 5,347,000  $ 3,416,000
AFFO per Diluted Common Share (1)                    $ 0.12       $ 0.08
Weighted Avg. Diluted Common Shares Outstanding        43,893,000   40,703,000



                                                       Twelve Months Ended

                                                       September 30,
                                                       2013         2012
Rental Revenue                                       $ 46,880,000 $ 43,274,000
Reimbursement Revenue                                $ 7,727,000  $ 7,095,000
NOI (1)                                              $ 45,378,000 $ 41,537,000
Lease Termination Income                             $ 691,000    $ 3,222,000
Total Expenses                                       $ 29,609,000 $ 28,311,000
Interest and Dividend Income                         $ 3,886,000  $ 3,359,000
Gain on Securities Transactions, net                 $ 7,133,000  $ 6,044,000
Income from Continuing Operations                    $ 21,104,000 $ 18,700,000
Income (Loss) from Discontinued Operations           $ 292,000    $ (15,000)
Net Income Attributable to Common Shareholders       $ 12,788,000 $ 13,171,000
Net Income Attributable to Common Shareholders Per   $ 0.30       $ 0.33
Diluted Common Share
Core FFO (1)                                         $ 27,378,000 $ 26,796,000
Core FFO per Diluted Common Share (1)                $ 0.65       $ 0.67
Core FFO Excluding Lease Termination Income (1)      $ 26,687,000 $ 23,574,000
Core FFO Excluding Lease Termination Income per      $ 0.63       $ 0.59
Diluted Common Share (1)
AFFO (1)                                             $ 20,213,000 $ 20,908,000
AFFO per Diluted Common Share (1)                    $ 0.48       $ 0.53
AFFO Excluding Lease Termination Income (1)          $ 19,522,000 $ 17,686,000
AFFO Excluding Lease Termination Income per Diluted  $ 0.46       $ 0.44
Common Share (1)
Weighted Avg. Diluted Common Shares Outstanding        42,432,000   39,820,000

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

                                              September 30,   September 30,
                                              2013
                                                              2012
Net Real Estate Investments                 $ 536,799,000   $ 467,886,000
Securities Available for Sale at Fair Value $ 45,452,000    $ 61,685,000
Total Assets                                $ 617,241,000   $ 574,508,000
Mortgage Notes Payable                      $ 250,093,000   $ 237,944,000
Subordinated Convertible Debentures         $ -             $ 8,615,000
Loans Payable                               $ 22,200,000    $ 5,200,000
Total Shareholders' Equity                  $ 335,915,000   $ 315,687,000

Michael P. Landy, President and CEO, commented on the results of fiscal year
2013, "Monmouth continued to successfully grow our high quality portfolio and
build long-term value for our shareholders in fiscal 2013. During the year,
the Company accomplished the following:

  oAcquired 1.1 million square feet of high quality industrial space at an
    aggregate cost of $63.8 million.
  oRe-leased 1.0 million square feet including 837,000 square feet in lease
    renewals.
  oAchieved an industrial sector leading occupancy rate of 96%.
  oAchieved an industrial sector leading tenant retention rate of 93%.
  oExpanded our credit facility to $40 million with an accordion feature up
    to $60 million.
  oGrew our acquisition pipeline to approximately 2.0 million square feet
    representing over $130 million in total acquisitions. Due to the
    substantial amount of recent acquisition activity, our current acquisition
    pipeline is approximately 690,000 square feet representing $48.8 million
    in future acquisitions.
  oGenerated $7.1 million in realized gains on our REIT securities
    investments. 

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. Core FFO, excluding lease termination income, for
the full fiscal year 2013 was $26.7 million versus $23.6 million in 2012. On a
per share basis, Core FFO excluding lease termination income was $0.63 per
diluted share in fiscal 2013 compared to $0.59 per diluted share in 2012,
representing a 7% increase. During fiscal 2013, we successfully re-leased 10
of the 11 expiring leases as well as obtained 2 new leases for buildings that
were previously vacant representing a total of 1,002,000 square feet of
leasing activity. 10 of these new leases containing a total of 837,000 square
feet were renewals with existing tenants. This represents an overall 93%
tenant retention rate. Our occupancy rate increased 80 basis points over the
year and is now at 96%."

"In addition to the 1.1 million square feet representing $63.8 million in
acquisitions in fiscal 2013, Monmouth has recently added 5 Class A industrial
properties containing a total of 1.1 million square feet. These new
built-to-suit properties were acquired at an aggregate cost of $73.9 million.
This brings our total portfolio to 81 properties and 10.7 million square feet.
In view of the significant positive investment spread associated with these
transactions, we expect that they will be very accretive to our earnings going
into 2014."

"While the strong automotive, housing, and manufacturing sectors have all
helped drive demand for industrial space, the biggest factor continues to be
the rise in e-commerce. The growth in internet sales are far outpacing the
growth in brick and mortar sales and it is the primary reason that we view the
long-term prospects for the industrial property type, and especially
Monmouth's portfolio very favorably. Our major tenant, FedEx, has recently
asked us to expand 5 buildings totaling 275,000 square feet."

"With regards to our future acquisition pipeline, we have entered into
agreements to purchase three new built-to-suit industrial buildings totaling
690,000 square feet that are currently being developed. The total purchase
price for these properties is approximately $48.8 million. The Company remains
very focused on continuing to deliver positive results, and we look forward to
building upon the substantial growth that was achieved in fiscal 2013."

Monmouth Real Estate Investment Corporation will host its Fourth Quarter and
Year End 2013 Financial Results Webcast and Conference Call. Senior
management will discuss the results, current market conditions and future
outlook on Thursday, December 12, 2013 at 10:00 a.m. Eastern Time.

The Company's fourth quarter and year end 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, December 12, 2013. It will be available until February 1, 2014,
and can be accessed by dialing toll free 877-344-7529 (domestically) and
412-317-0088 (internationally) and entering the passcode 10035092. 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 eighty industrial properties and one shopping
center located in twenty-seven states, containing a total of approximately
10.7 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. We define AFFO as Core FFO excluding gains or losses
on securities transactions, stock based compensation expense, amortization of
deferred financing and deferred leasing costs, recurring capital expenditures
and straight-line rent adjustments. We define NOI as recurring rental and
reimbursement revenues less real estate and other operating expenses. FFO,
Core FFO and AFFO per diluted common share are defined as FFO, Core FFO and
AFFO divided by weighted average diluted common shares outstanding. FFO, Core
FFO and AFFO per diluted common share, as well as NOI, should be considered as
supplemental measures of operating performance used by real estate investment
trusts (REITs). FFO, Core FFO and AFFO 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, Core
FFO and AFFO per diluted common share are significant components in
understanding the Company's financial performance.

FFO, Core FFO and AFFO 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, Core FFO and AFFO per diluted
common share, as well as NOI, 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 twelve months ended September
30, 2013 and 2012 are calculated as follows:



                              Three Months Ended     Twelve Months Ended
                              9/30/2013   9/30/2012   9/30/2013    9/30/2012
Net Income Attributable to    $1,712,000  $673,000    $12,788,000  $13,171,000
Common Shareholders
Depreciation Expense
(including Discontinued       3,281,000   3,019,000   12,877,000   11,471,000
Operations)
Amortization of Intangible    361,000     464,000     1,544,000    1,478,000
Assets
(Gain) Loss on Sales of       -           -           (346,000)    8,000
Depreciable Assets
FFO Attributable to Common    5,354,000   4,156,000   26,863,000   26,128,000
Shareholders
Acquisition Costs             55,000      47,000      515,000      668,000
Core FFO Attributable to      $5,409,000  $4,203,000  $27,378,000  $26,796,000
Common Shareholders



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

                              Three Months Ended     Twelve Months Ended
                              9/30/2013   9/30/2012   9/30/2013    9/30/2012
Core FFO Attributable to      $5,409,000  $4,203,000  $27,378,000  $26,796,000
Common Shareholders
Less Lease Termination Income -           -           691,000      3,222,000
Core FFO excluding Lease
Termination Income            $5,409,000  $4,203,000  $26,687,000  $23,574,000
Attributable to Common
Shareholders



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

                     Twelve Months Ended
                     9/30/2013     9/30/2012
Operating Activities $27,095,000   $26,809,000
Investing Activities (59,931,000)  (80,640,000)
Financing Activities 20,589,000    72,105,000

SOURCE Monmouth Real Estate Investment Corporation

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