3

Second Quarter FY 2010 Supplemental of Monmouth Real Estate Investment Corp.

4

Second Quarter FY 2010 Supplemental of Monmouth Real Estate Investment Corp.

5

Second Quarter FY 2010 Supplemental of Monmouth Real Estate Investment Corp.

6

Second Quarter FY 2010 Supplemental of Monmouth Real Estate Investment Corp.

7

Second Quarter FY 2010 Supplemental of Monmouth Real Estate Investment Corp.

8

Second Quarter FY 2010 Supplemental of Monmouth Real Estate Investment Corp.

9

Second Quarter FY 2010 Supplemental of Monmouth Real Estate Investment Corp.

10

Second Quarter FY 2010 Supplemental of Monmouth Real Estate Investment Corp.

11

Second Quarter FY 2010 Supplemental of Monmouth Real Estate Investment Corp.

12

Second Quarter FY 2010 Supplemental of Monmouth Real Estate Investment Corp.

13

Second Quarter FY 2010 Supplemental of Monmouth Real Estate Investment Corp.

14

Second Quarter FY 2010 Supplemental of Monmouth Real Estate Investment Corp.

15

Second Quarter FY 2010 Supplemental of Monmouth Real Estate Investment Corp.

FOR IMMEDIATE RELEASE

May 7, 2010

Contact:  Susan Jordan

   732-577-9996

MONMOUTH REAL ESTATE INVESTMENT CORPORATION

REPORTS RESULTS FOR THE SECOND QUARTER ENDED MARCH 31, 2010   

FREEHOLD, NJ, May 7, 2010........Monmouth Real Estate Investment Corporation (NASDAQ/MNRTA) reported net income attributable to common shareholders was $2,502,000 or $.09 per common share for three months ended March 31, 2010 as compared to net loss attributable to common shares of ($2,027,000) or ($.08) per common share for the three months ended March 31, 2009.  Funds from operations (FFO) were $5,056,000 or $.18 per share for the three months ended March 31, 2010, as compared to $707,000 or $.03 per share for the three months ended March 31, 2009.   The three months ended March 31, 2009 had non-cash impairment charges on securities available for sale of $.11 per common share.

A summary of significant financial information for the three and six months ended March 31, 2010 and 2009 is as follows:

                 Three Months Ended

                                                                                                                                              March 31,

		2010		2009
Rental and Reimbursement Revenue	$	11,267,000	$	10,496,000
Total Expenses	$	5,654,000	$	5,413,000
Interest and Dividend Income	$	507,000	$	623,000
Gain (Loss) on Securities Transactions, net	$	781,000	$	(3,337,000)
Net Income (Loss) Attributable to Common Shareholders	$	2,502,000	$	(2,027,000)
Net Income (Loss) Attributable to Common Shareholders         Per Common Share	$	.09	$	(.08)
FFO (1)	$	5,056,000	$	707,000
FFO Per Common Share (1)	$	.18	$	.03
Weighted Avg. Diluted Common Shares Outstanding		28,441,000		24,814,000

       (continued on next page)

16

Second Quarter FY 2010 Press Release of Monmouth Real Estate Investment Corp.

               Six Months Ended   

                                                                                                                                           March 31,

		2010		2009
Rental and Reimbursement Revenue	$	21,957,000	$	20,721,000
Total Expenses	$	11,236,000	$	10,469,000
Interest and Dividend Income	$	1,139,000	$	1,283,000
Gain (Loss) on Securities Transactions, net	$	1,111,000	$	(6,583,000)
Net Income (Loss) Attributable to Common Shareholders	$	4,346,000	$	(3,651,000)
Net Income (Loss) Attributable to Common Shareholders         Per Common Share	$	.16	$	(.15)
FFO (1)	$	9,388,000	$	1,509,000
FFO Per Common Share (1)	$	.34	$	.06
Weighted Avg. Diluted Common Shares Outstanding		27,902,000		24,716,000

A summary of significant balance sheet information as of March 31, 2010 and September 30, 2009 is as follows:

		March  31, 2010		September 30, 2009
Total Real Estate Investments	$	382,083,000	$	345,881,000
Securities Available for Sale	$	30,520,000	$	27,825,000
Total Assets	$	435,138,000	$	394,994,000
Mortgage Notes Payable	$	212,493,000	$	192,050,000
Subordinated Convertible Debentures	$	13,990,000	$	13,990,000
Loans Payable	$	20,474,000	$	19,064,000
Total Shareholders’ Equity	$	182,940,000	$	164,891,000

Eugene W. Landy, President, commented on the results of the second quarter ended March 31, 2010,   “We are very pleased with the results of our second quarter which saw a continuation of solid growth in revenues, total assets, and FFO. During the quarter we purchased one industrial property representing 184,317 square feet for approximately $17.9 million.  After quarter end, we raised an additional $28.3 million in a common stock offering and fully repaid all of our loans payable, including our line of credit.  Based on our current liquidity position and full availability of our credit line, we are well positioned to continue to grow our portfolio.”  

Monmouth Real Estate Investment Corporation, a real estate investment trust (REIT) specializing in net-leased industrial properties, will host its Second Quarter 2010 Financial Results Webcast and Conference Call.  Senior management will discuss quarterly results, current market conditions and future outlook on Monday, May 10, 2010 at 10:00 a.m. Eastern Time.

Monmouth Real Estate’s second quarter financial results and supplemental information herewith will be available on the company website at www.mreic.com in the “Financial Filings” section.

       (continued on next page)

17

Second Quarter FY 2010 Press Release of Monmouth Real Estate Investment Corp.

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 800-860-2442 (domestically) or 412-858-4600 (internationally).

The replay of the conference call will be available at 12:00 p.m. Eastern Time on Monday, May 10, 2010.  It will be available until May 24, 2010, and can be accessed by dialing toll free 877-344-7529 (domestically) and 412-317-0088 (internationally) and entering the passcode 439236.  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, which was organized in 1968, is a publicly-owned real estate investment trust specializing in net-leased industrial properties.  The Company’s portfolio consists of sixty-one industrial properties and one shopping center located in twenty-five states.  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. 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. Factors and risks 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-GAAP Information:  Funds from operations (FFO) is defined as net income (loss) applicable to common shareholders, excluding gains or losses from sales of depreciable assets, plus real estate-related depreciation and amortization.   FFO per share is defined as FFO divided by weighted average shares outstanding.  FFO and FFO per share should be considered as supplemental measures of operating performance used by real estate investment trusts (REITs).  FFO and FFO per 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 FFO per share are significant components in understanding the Company’s financial performance.

(continued on next page)

18

Second Quarter FY 2010 Press Release of Monmouth Real Estate Investment Corp.

FFO and FFO per share (A) do not represent cash flow from operations as defined by generally accepted accounting principles; (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 FFO per share, as calculated by the Company, may not be comparable to similarly entitled measures reported by other REITs.  

The Company’s FFO for the three and six months ended March 31, 2010 and 2009 is calculated as follows:

                                 Three Months Ended

                  Six Months Ended

	3/31/10	3/31/09	3/31/10	3/31/09
Net Income (Loss)	$3,178,000	($1,371,000)	$5,706,000	($2,336,000)
Income to Noncontrolling Interest	(46,000)	(26,000)	(99,000)	(55,000)
Preferred Dividend	(630,000)	(630,000)	(1,261,000)	(1,261,000)
Depreciation Expense	2,298,000	2,099,000	4,533,000	4,204,000
Depreciation Expense Related to      Discontinued Operations	-0-	12,000	-0-	24,000
Amortization of In-Place Lease       Intangible Assets	256,000	286,000	509,000	571,000
Amortization of In-Place Lease      Intangible Assets Related to      Discontinued Operations	-0-	337,000	-0-	362,000
FFO	$5,056,000	$707,000	$9,388,000	$1,509,000

The following are the cash flows provided (used) by operating, investing and financing activities for the six months ended March 31, 2010 and 2009:

	Six Months Ended
	2010	2009
Operating Activities	$9,843,000	$10,240,000
Investing Activities	(39,175,000)	(2,799,000)
Financing Activities	30,598,000	(4,051,000)

(continued on next page)

19

Second Quarter FY 2010 Press Release of Monmouth Real Estate Investment Corp.

The following is the net income (loss) per common share for the three and six months ended March 31, 2010 and 2009:

	Three Months Ended		Six Months Ended
	3/31/10	3/31/09			3/31/10	3/31/09
BASIC INCOME (LOSS) – PER SHARE
Income (Loss) from Continuing Operations	$.11	($.04)		$.20		($.09)
Less:  Preferred Dividend	(.02)	(.03)		(.04)		(.05)
Income (Loss) from Discontinued           Operations	-0-	(.01)		-0-		(.01)
Net Income (Loss) Attributable to MREIC’s            Common Shareholders - Basic	$.09	($.08)		$.16		($.15)
DILUTED INCOME (LOSS) – PER SHARE
Income (Loss) from Continuing Operations	$.11	($.04)		$.20		($.09)
Less:  Preferred Dividend	(.02)	(.03)		(.04)		(.05)
Income (Loss) from Discontinued           Operations	-0-	(.01)		-0-		(.01)
Net Income (Loss) Attributable to  MREIC’s          Common Shareholders - Diluted	$.09	($.08)		$.16		($.15)

# # # # #

20

Second Quarter FY 2010 Press Release of Monmouth Real Estate Investment Corp.