Monmouth Real Estate Investment Corporation Reports Results For The Second Quarter Ended March 31, 2014

  Monmouth Real Estate Investment Corporation Reports Results For The Second
                         Quarter Ended March 31, 2014

PR Newswire

FREEHOLD, N.J., May 7, 2014

FREEHOLD, N.J., May 7, 2014 /PRNewswire/ -- Monmouth Real Estate Investment
Corporation (NYSE: MNR) reported Core Funds from Operations (Core FFO) of
$6,919,000 or $0.15 per diluted share for the three months ended March 31,
2014 as compared to $8,799,000 or $0.21 per diluted share for the three months
ended March 31, 2013. Excluding gains realized from the sale of securities
during the quarter, Core FFO was $6,494,000 or $0.14 per diluted share for the
three months ended March 31, 2014, as compared to $4,997,000 or $0.12 per
diluted share for the three months ended March 31, 2013. Adjusted Funds from
Operations (AFFO), which excludes gains or losses from the sale of securities,
were $0.14 per diluted share for the three months ended March 31, 2014
compared to $0.11 per diluted share for March 31, 2013.

A summary of significant financial information for the three and six months
ended March 31, 2014 and 2013 is as follows:



                                                       Three Months Ended

                                                       March 31,
                                                       2014         2013
Rental Revenue                                       $ 14,085,000 $ 11,738,000
Reimbursement Revenue                                $ 2,260,000  $ 1,568,000
Net Operating Income (NOI) (1)                       $ 13,444,000 $ 11,221,000
Total Expenses                                       $ 8,656,000  $ 6,776,000
Interest and Dividend Income                         $ 997,000    $ 1,005,000
Gain on Sale of Securities Transactions, net         $ 425,000    $ 3,802,000
Income from Continuing Operations                    $ 4,757,000  $ 7,343,000
Income from Discontinued Operations                  $ -          $ 300,000
Net Income Attributable to Common Shareholders       $ 2,605,000  $ 5,492,000
Net Income Attributable to Common Shareholders Per   $ 0.05       $ 0.13
Diluted Common Share
Core FFO (1)                                         $ 6,919,000  $ 8,799,000
Core FFO per Diluted Common Share (1)                $ 0.15       $ 0.21
AFFO (1)                                             $ 6,464,000  $ 4,608,000
AFFO per Diluted Common Share (1)                    $ 0.14       $ 0.11
Weighted Avg. Diluted Common Shares Outstanding        46,845,000   41,989,000



                                                       Six Months Ended

                                                       March 31,
                                                       2014         2013
Rental Revenue                                       $ 27,656,000 $ 23,048,000
Reimbursement Revenue                                $ 4,351,000  $ 3,086,000
Lease Termination Income                             $ -          $ 691,000
Net Operating Income (NOI) (1)                       $ 26,529,000 $ 22,358,000
Total Expenses                                       $ 17,072,000 $ 13,761,000
Interest and Dividend Income                         $ 1,936,000  $ 2,128,000
Gain on Sale of Securities Transactions, net         $ 576,000    $ 5,913,000
Income from Continuing Operations                    $ 9,047,000  $ 13,054,000
Income from Discontinued Operations                  $ -          $ 296,000
Net Income Attributable to Common Shareholders       $ 4,744,000  $ 9,047,000
Net Income Attributable to Common Shareholders Per   $ 0.10       $ 0.22
Diluted Common Share
Core FFO (1)                                         $ 13,666,000 $ 16,259,000
Core FFO per Diluted Common Share (1)                $ 0.30       $ 0.39
AFFO (1)                                             $ 13,156,000 $ 9,450,000
AFFO per Diluted Common Share (1)                    $ 0.29       $ 0.23
Weighted Avg. Diluted Common Shares Outstanding        46,081,000   41,545,000



A summary of significant balance sheet information as of March 31, 2014 and
September 30, 2013 is as follows:

                                           March 31, 2014   September 30, 2013
Net Real Estate Investments              $ 608,774,000    $ 536,799,000
Securities Available for Sale at Fair    $ 53,466,000     $ 45,452,000
Value
Total Assets                             $ 697,525,000    $ 617,241,000
Mortgage Notes Payable                   $ 286,688,000    $ 250,093,000
Loans Payable                            $ 47,432,000     $ 22,200,000
Total Shareholders' Equity               $ 352,642,000    $ 335,915,000



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

"The recent quarter represented significant progress across multiple fronts:

  oWe have entered into agreements to acquire ten new Class A build-to-suit
    industrial properties, representing approximately 3.1 million square feet,
    for a total purchase price of approximately $222.3 million. In keeping
    with our business model, these high quality properties are leased
    primarily to investment grade tenants pursuant to long-term net leases and
    strategically situated at major airports, major transportation hubs, and
    manufacturing plants that are integral to our tenants' operations. These
    new properties are expected to generate annualized rental revenue of
    approximately $15.4 million and will benefit from an average lease term of
    approximately 11.5 years. Subject to satisfactory due diligence, we
    anticipate closing these transactions upon completion of construction and
    occupancy over the next several quarters.
  oWe have also entered into agreements to expand seven of our properties by
    approximately 293,000 square feet pursuant to which we will invest a total
    of approximately $24 million. Upon completion, the expansions will result
    in a new ten year lease extension for each of these properties and will
    result in increased annual rent of approximately $2.4 million.
  oAFFO per diluted share for the current quarter increased 27% as compared
    to the prior year quarter and increased 26% for the six months ended March
    31, 2014 as compared to the six months ended March 31, 2013.
  oOur gross leasable area increased 17% to 10.7 million square feet over the
    prior year period and is expected to grow to over 14.0 million square feet
    upon the completion of the above acquisitions and expansions.
  oEnd of period occupancy increased to 95.4% as compared to 94.7% one year
    ago. As a result of two previously announced lease expirations subsequent
    to quarter end, our current occupancy is now 93.5%. Given currently strong
    market conditions, we anticipate further increased occupancy over the next
    few quarters.
  oOur average lease maturity increased to 6.8 years compared to 6.1 years a
    year ago.

We look forward to building on the substantial growth that we have achieved to
date by adding high quality properties and tenants to our portfolio while
enhancing returns for our shareholders."

Monmouth Real Estate Investment Corporation will host its Second Quarter 2014
Financial Results Webcast and Conference Call. Senior management will discuss
the results, current market conditions and future outlook on Thursday, May 8,
2014 at 10:00 a.m. Eastern Time.

The Company's second quarter 2014 financial results being released herein will
be available on the Company's website at www.mreic.com in the "Financial
Filings" section.

To participate in the Webcast, select the microphone icon in the Webcast
section of the Company's 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 8, 2014. It will be available until July 31, 2014, and can
be accessed by dialing toll free 877-344-7529 (domestically) and 412-317-0088
(internationally) and entering the passcode 10042544. 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 lease
termination income, 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 six months ended March 31,
2014 and 2013 are calculated as follows:



                              Three Months Ended     Six Months Ended
                              03/31/2014  03/31/2013  03/31/2014   03/31/2013
Net Income Attributable to    $2,606,000  $5,492,000  $4,744,000   $9,047,000
Common Shareholders
Depreciation Expense
(including Discontinued       3,975,000   3,268,000   7,788,000    6,402,000
Operations)
Amortization of Intangible    338,000     385,000     671,000      770,000
Assets
Gain on Sale of Investment    -           (346,000)   -            (346,000)
Property
FFO Attributable to Common    6,919,000   8,799,000   13,203,000   15,873,000
Shareholders
Acquisition Costs             -           -           463,000      386,000
Core FFO Attributable to      $6,919,000  $8,799,000  $13,666,000  $16,259,000
Common Shareholders



The Company's Core FFO, excluding the net Gain on Securities Transactions for
the three and six months ended March 31, 2014 and 2013 are calculated as
follows:



                              Three Months Ended     Six Months Ended
                              03/31/2014  03/31/2013  03/31/2014   03/31/2013
Core FFO Attributable to      $6,919,000  $8,799,000  $13,666,000  $16,259,000
Common Shareholders
Less: Gain on Sale of         425,000     3,802,000   576,000      5,913,000
Securities Transactions, net
Core FFO, excluding net Gain
on Sale of Securities
                              $6,494,000  $4,997,000  $13,090,000  $10,346,000
 Transactions Attributable
to Common Shareholders

 

The following are the Cash Flows provided (used) by Operating, Investing and
Financing Activities for the six months ended March 31, 2014 and 2013:



                     Six Months Ended
                     03/31/2014    03/31/2013
Operating Activities $17,938,000   $10,670,000
Investing Activities (87,227,000)  (29,587,000)
Financing Activities 67,587,000    14,397,000



SOURCE Monmouth Real Estate Investment Corporation

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