Monmouth Real Estate Investment Corporation Reports Results For The Third Quarter Ended June 30, 2014

  Monmouth Real Estate Investment Corporation Reports Results For The Third
                         Quarter Ended June 30, 2014

PR Newswire

FREEHOLD, N.J., Aug. 6, 2014

FREEHOLD, N.J., Aug. 6, 2014 /PRNewswire/ -- Monmouth Real Estate Investment
Corporation (NYSE: MNR) reported Core Funds from Operations (Core FFO) of
$7,771,000 or $0.15 per diluted share for the three months ended June 30, 2014
as compared to $5,682,000 or $0.13 per diluted share for the three months
ended June 30, 2013. Excluding gains realized from the sale of securities
during the quarter, Core FFO was $6,864,000 or $0.14 per diluted share for the
three months ended June 30, 2014, as compared to $4,619,000 or $0.11 per
diluted share for the three months ended June 30, 2013. Adjusted Funds from
Operations (AFFO), which excludes gains or losses from the sale of securities
and excludes lease termination income, were $0.12 per diluted share for the
three months ended June 30, 2014 as compared to $0.11 per diluted share for
the three months ended June 30, 2013.

A summary of significant financial information for the three and nine months
ended June 30, 2014 and 2013 is as follows:



                                                       Three Months Ended

                                                       June 30,
                                                       2014         2013
Rental Revenue                                       $ 13,384,000 $ 11,712,000
Reimbursement Revenue                                $ 2,356,000  $ 2,342,000
Lease Termination Income                             $ 1,183,000  $ -
Net Operating Income (NOI) (1)                       $ 12,877,000 $ 11,363,000
Total Expenses                                       $ 8,811,000  $ 7,846,000
Interest and Dividend Income                         $ 942,000    $ 844,000
Gain on Sale of Securities Transactions, net         $ 907,000    $ 1,063,000
Income from Continuing Operations                    $ 5,594,000  $ 4,185,000
Income (Loss) from Discontinued Operations           $ -          $ (5,000)
Net Income Attributable to Common Shareholders       $ 3,442,000  $ 2,029,000
Net Income Attributable to Common Shareholders Per   $ 0.07       $ 0.05
Diluted Common Share
Core FFO (1)                                         $ 7,771,000  $ 5,682,000
Core FFO per Diluted Common Share (1)                $ 0.15       $ 0.13
AFFO (1)                                             $ 5,924,000  $ 4,725,000
AFFO per Diluted Common Share (1)                    $ 0.12       $ 0.11
Weighted Avg. Diluted Common Shares Outstanding        50,760,000   42,823,000



                                                       Nine Months Ended

                                                       June 30,
                                                       2014         2013
Rental Revenue                                       $ 41,039,000 $ 34,760,000
Reimbursement Revenue                                $ 6,707,000  $ 5,428,000
Lease Termination Income                             $ 1,183,000  $ 691,000
Net Operating Income (NOI) (1)                       $ 39,406,000 $ 33,721,000
Total Expenses                                       $ 25,883,000 $ 21,607,000
Interest and Dividend Income                         $ 2,877,000  $ 2,972,000
Gain on Sale of Securities Transactions, net         $ 1,483,000  $ 6,976,000
Income from Continuing Operations                    $ 14,641,000 $ 17,239,000
Income from Discontinued Operations                  $ -          $ 292,000
Net Income Attributable to Common Shareholders       $ 8,186,000  $ 11,076,000
Net Income Attributable to Common Shareholders Per   $ 0.17       $ 0.26
Diluted Common Share
Core FFO (1)                                         $ 21,438,000 $ 21,940,000
Core FFO per Diluted Common Share (1)                $ 0.45       $ 0.52
AFFO (1)                                             $ 19,080,000 $ 14,175,000
AFFO per Diluted Common Share (1)                    $ 0.40       $ 0.34
Weighted Avg. Diluted Common Shares Outstanding        47,634,000   41,959,000



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



                                            June 30, 2014   September 30, 2013
Net Real Estate Investments               $ 611,043,000   $ 536,799,000
Securities Available for Sale at Fair     $ 60,642,000    $ 45,452,000
Value
Total Assets                              $ 739,392,000   $ 617,241,000
Mortgage Notes Payable                    $ 279,866,000   $ 250,093,000
Loans Payable                             $ 25,200,000    $ 22,200,000
Total Shareholders' Equity                $ 423,540,000   $ 335,915,000

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

"Monmouth continued to make progress over the recent quarter across several
fronts:

  oAFFO per diluted share for the current quarter increased 9% as compared to
    the prior year quarter and increased 18% for the nine months ended June
    30, 2014 as compared to the nine months ended June 30, 2013.
  oAs of June 30, 2014, the Company's occupancy rate was 94.3% and our
    average lease maturity increased to 6.8 years as compared to 6.2 years a
    year ago.
  oOn June 26, 2014, we leased our 60,400 square foot building located in
    Carlstadt, NJ for 10.5 years at an average rate of $8.34 per square foot
    as compared to $7.61 per square foot that was paid by the prior tenant
    representing an increase of 10%. This building was vacant since April 1,
    2014.
  oOn May 28, 2014, the Company completed a common equity offering that
    generated net proceeds of approximately $65.1 million.
  oDuring the quarter, we grew our acquisition pipeline to eleven new Class A
    build-to-suit industrial properties, representing approximately 3.5
    million square feet, for a total purchase price of approximately $255.7
    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 are 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 $17.6 million and will benefit
    from an average lease term of approximately 11.4 years. Subject to
    satisfactory due diligence, we anticipate closing these transactions upon
    completion of construction and occupancy over the next several quarters.
  oIn addition to our six recently completed building expansions, we entered
    into agreements to expand five of our properties by approximately 236,000
    square feet pursuant to which we will invest a total of approximately
    $18.7 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 $1.9 million.
  oSubsequent to quarter end, on July 18, 2014, we entered into a three year
    lease agreement withCharlotte Pipe and Foundry Company for our 160,000
    square foot building located in Monroe, NC that was previously vacant.
    Annual rent commenced on August 1, 2014 at a rate of $560,000 or $3.50 per
    square foot with 2% increases each year. As a result of leasing our
    building in Monroe, NC, the Company's occupancy rate as of August 1, 2014
    increased to 95.8%.

Our gross leasable area has increased by 15% to 10.8 million square feet over
the prior year period and is expected to grow to over 14.0 million square feet
in fiscal 2015 upon the completion of the acquisitions and expansions
mentioned above. Our successful leasing activity has resulted in a very strong
current occupancy level of 95.8%. Our recent equity offering provides us with
the capital to fund our highly accretive acquisition and expansion pipeline.
With 86% of our rental revenue derived from investment grade tenants our
earnings quality is among the highest in the REIT sector. 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 long-term
returns for our shareholders."

Monmouth Real Estate Investment Corporation will host its Third Quarter 2014
Financial Results Webcast and Conference Call. Senior management will discuss
the results, current market conditions and future outlook on Thursday, August
7, 2014 at 10:00 a.m. Eastern Time.

The Company's third 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, August 7, 2014. It will be available until November 30, 2014,
and can be accessed by dialing toll free 877-344-7529 (domestically) and
412-317-0088 (internationally) and entering the passcode 10047730. 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-one properties located in twenty-seven
states, containing a total of approximately 10.8 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 nine months ended June 30,
2014 and 2013 are calculated as follows:



                              Three Months Ended     Nine Months Ended
                              06/30/2014  06/30/2013  06/30/2014   06/30/2013
Net Income Attributable to    $3,442,000  $2,029,000  $8,186,000   $11,076,000
Common Shareholders
Depreciation Expense
(including Discontinued       3,991,000   3,194,000   11,779,000   9,596,000
Operations)
Amortization of Intangible    338,000     385,000     1,010,000    1,154,000
Assets
Gain on Sale of Investment    -           -           -            (346,000)
Property
FFO Attributable to Common    7,771,000   5,608,000   20,975,000   21,480,000
Shareholders
Acquisition Costs             -           74,000      463,000      460,000
Core FFO Attributable to      $7,771,000  $5,682,000  $21,438,000  $21,940,000
Common Shareholders

The Company's Core FFO, excluding the net Gain on Securities Transactions for
the three and nine months ended June 30, 2014 and 2013 are calculated as
follows:



                              Three Months Ended     Nine Months Ended
                              06/30/2014  06/30/2013  06/30/2014   06/30/2013
Core FFO Attributable to      $7,771,000  $5,682,000  $21,438,000  $21,940,000
Common Shareholders
Less: Gain on Sale of         907,000     1,063,000   1,483,000    6,976,000
Securities Transactions, net
Core FFO, excluding net Gain
on Sale of Securities
                              $6,864,000  $4,619,000  $19,955,000  $14,964,000
 Transactions 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, 2014 and 2013:



                     Nine Months Ended
                     06/30/2014     06/30/2013
Operating Activities $28,869,000    $17,197,000
Investing Activities (101,136,000)  (41,059,000)
Financing Activities 102,578,000    12,341,000



SOURCE Monmouth Real Estate Investment Corporation

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