Monmouth Real Estate Investment Corporation Reports Results For The First Quarter Ended December 31, 2013

  Monmouth Real Estate Investment Corporation Reports Results For The First
                       Quarter Ended December 31, 2013

PR Newswire

FREEHOLD, N.J., Feb. 5, 2014

FREEHOLD, N.J., Feb. 5, 2014 /PRNewswire/ --Monmouth Real Estate Investment
Corporation (NYSE:MNR) reported Core Funds from Operations (Core FFO) of
$6,747,000 or $0.15 per diluted share for the three months ended December 31,
2013 as compared to $7,459,000 or $0.18 per diluted share for the three months
ended December 31, 2012.Excluding gains realized from the sale of securities
during the quarter, Core FFO was $6,596,000 or $0.15 per diluted share for the
three months ended December 31, 2013, as compared to $5,348,000 or $0.13 per
diluted share for the three months ended December 31, 2012. Adjusted Funds
from Operations (AFFO), which excludes gains or losses from the sale of
securities, were $0.15 per diluted share for the three months ended December
31, 2013 compared to $0.13 per diluted share for December 31, 2012.

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



                                                       Three Months Ended

                                                       December 31,
                                                       2013         2012
Rental Revenue                                       $ 13,571,000 $ 11,309,000
Reimbursement Revenue                                $ 2,090,000  $ 1,518,000
Net Operating Income (NOI) (1)                       $ 13,085,000 $ 11,112,000
Total Expenses                                       $ 8,416,000  $ 6,985,000
Interest and Dividend Income                         $ 939,000    $ 1,123,000
Gain on Sale of Securities Transactions, net         $ 151,000    $ 2,111,000
Income from Continuing Operations                    $ 4,290,000  $ 5,711,000
Loss from Discontinued Operations                    $ -0-        $ (4,000)
Net Income Attributable to Common Shareholders       $ 2,138,000  $ 3,555,000
Net Income Attributable to Common Shareholders Per   $ 0.05       $ 0.09
Diluted Common Share
Core FFO (1)                                         $ 6,747,000  $ 7,459,000
Core FFO per Diluted Common Share (1)                $ 0.15       $ 0.18
AFFO (1)                                             $ 6,692,000  $ 5,532,000
AFFO per Diluted Common Share (1)                    $ 0.15       $ 0.13
Weighted Avg. Diluted Common Shares Outstanding        45,331,000   41,110,000



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



                                              December 31,   September 30,
                                              2013           2013
Net Real Estate Investments                 $ 608,955,000  $ 536,799,000
Securities Available for Sale at Fair Value $ 53,596,000   $ 45,452,000
Total Assets                                $ 697,862,000  $ 617,241,000
Mortgage Notes Payable                      $ 292,254,000  $ 250,093,000
Loans Payable                               $ 51,278,000   $ 22,200,000
Total Shareholders' Equity                  $ 343,768,000  $ 335,915,000



Michael P. Landy, President and CEO, commented on the results for the first
quarter of fiscal 2014:

"This was a very productive quarter for Monmouth and represents an excellent
start to fiscal 2014. We are pleased to report continued improvement in our
recurring cash flow driven by our successful acquisition program. During the
quarter we acquired five new built-to-suit properties, all net-leased to
investment grade tenants. These acquisitions contain a total of 1.1 million
square feet, and were purchased at an aggregate cost of $73.9 million. These
five single-tenant Class A industrial properties are leased to: The American
Bottling Company (a division of Dr Pepper Snapple Group), Ralcorp (a division
of ConAgra Foods), International Paper Company, and FedEx Ground. The lease
terms range from 10 to 20 years with a weighted average term of 15.2 years.
These acquisitions represent a 12% increase in our gross leasable area."

"At quarter end our property portfolio was 96.4% occupied, representing a 40
basis point increase over the prior quarter. We are pleased to report that we
have entered into separate agreements to purchase five new Class A
build-to-suit industrial buildings, representing approximately 1.6 million
square feet, for a total purchase price of approximately $113.5 million. In
keeping with our business model, leases are 10 years or longer and are all
net-leased to investment grade tenants. These properties are located in
Indiana, Illinois, Kentucky, and Texas. Subject to satisfactory due diligence,
we anticipate closing these transactions upon completion and occupancy, which
is scheduled for the second half of fiscal 2014 and the first half of fiscal
2015."

Monmouth Real Estate Investment Corporation will host its First Quarter 2014
Financial Results Webcast and Conference Call. Senior management will discuss
the results, current market conditions and future outlook on Thursday,
February 6, 2014 at 10:00 a.m. Eastern Time.

The Company's first quarter 2014 financial results being released herein will
be available on the Company's website at www.mreic.comin 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, February 6, 2014. It will be available until April 30, 2014, and
can be accessed by dialing toll free 877-344-7529 (domestically) and
412-317-0088 (internationally) and entering the passcode 10038674. 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 months ended December 31, 2013
and 2012 are calculated as follows:



                                                     Three Months Ended
                                                     12/31/2013  12/31/2012
Net Income Attributable to Common Shareholders       $2,138,000  $3,555,000
Depreciation Expense (including Discontinued         3,813,000   3,134,000
Operations)
Amortization of Intangible Assets                    333,000     384,000
FFO Attributable to Common Shareholders              6,284,000   7,073,000
Acquisition Costs                                    463,000     386,000
Core FFO Attributable to Common Shareholders         $6,747,000  $7,459,000



The Company's Core FFO, excluding the net Gain on Securities Transactions for
the three months ended December 31, 2013 and 2012 are calculated as follows:



                                                       Three Months Ended
                                                       12/31/2013  12/31/2012
Core FFO Attributable to Common Shareholders           $6,747,000  $7,459,000
Less: Gain on Securities Transactions, net             151,000     2,111,000
Core FFO, excluding net Gain on Sale of
                                                       $6,596,000  $5,348,000
Securities Transactions Attributable to Common
Shareholders



The following are the Cash Flows provided (used) by Operating, Investing and
Financing Activities for the three months ended December 31, 2013 and 2012:



                     Three Months Ended
                     12/31/2013    12/31/2012
Operating Activities $7,394,000    $4,992,000
Investing Activities (87,173,000)  (49,688,000)
Financing Activities 75,827,000    30,329,000



SOURCE Monmouth Real Estate Investment Corporation

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