3

Second Quarter FY 2011 Supplemental of Monmouth Real Estate Investment Corp.

4

Second Quarter FY 2011 Supplemental of Monmouth Real Estate Investment Corp.

5

Second Quarter FY 2011 Supplemental of Monmouth Real Estate Investment Corp.

6

Second Quarter FY 2011 Supplemental of Monmouth Real Estate Investment Corp.

7

Second Quarter FY 2011 Supplemental of Monmouth Real Estate Investment Corp.

8

Second Quarter FY 2011 Supplemental of Monmouth Real Estate Investment Corp.

9

Second Quarter FY 2011 Supplemental of Monmouth Real Estate Investment Corp.

10

Second Quarter FY 2011 Supplemental of Monmouth Real Estate Investment Corp.

11

Second Quarter FY 2011 Supplemental of Monmouth Real Estate Investment Corp.

12

Second Quarter FY 2011 Supplemental of Monmouth Real Estate Investment Corp.

13

Second Quarter FY 2011 Supplemental of Monmouth Real Estate Investment Corp.

FOR IMMEDIATE RELEASE

May 9, 2011

Contact:  Susan Jordan

   732-577-9996

MONMOUTH REAL ESTATE INVESTMENT CORPORATION

REPORTS RESULTS FOR THE SECOND QUARTER ENDED MARCH 31, 2011   

FREEHOLD, NJ, May 9, 2011........Monmouth Real Estate Investment Corporation (NYSE/MNR) reported net income attributable to common shareholders was $2,794,000 or $.08 per common share for the three months ended March 31, 2011 as compared to net income attributable to common shares of $2,502,000 or $.09 per common share for the three months ended March 31, 2010.  Funds from operations (FFO) were $5,651,000 or $.16 per share for the three months ended March 31, 2011, as compared to $5,073,000 or $.18 per share for the three months ended March 31, 2010.  FFO was $.36 per share for the six months ended March 31, 2011 as compared to $.34 per share for the six months ended March 31, 2010.   

A summary of significant financial information for the three and six months ended March 31, 2011 and 2010 is as follows:

   Three Months Ended

             March 31,

		2011		2010
Rental and Reimbursement Revenue	$	12,185,000	$	11,351,000
Total Expenses	$	6,396,000	$	5,673,000
Interest and Dividend Income	$	761,000	$	507,000
Gain on Securities Transactions, net	$	1,000,000	$	781,000
Net Income Attributable to Common Shareholders	$	2,794,000	$	2,502,000
Net Income Attributable to Common Shareholders         Per Common Share	$	.08	$	.09
FFO (1)	$	5,651,000	$	5,073,000
FFO Per Common Share (1)	$	.16	$	.18
Weighted Avg. Diluted Common Shares Outstanding		34,670,000		28,441,000

       (continued on next page)

14

Second Quarter FY 2011 Supplemental of Monmouth Real Estate Investment Corp.

               Six Months Ended   

          March 31,

		2011		2010
Rental and Reimbursement Revenue	$	24,318,000	$	22,124,000
Total Expenses	$	13,409,000	$	11,274,000
Interest and Dividend Income	$	1,487,000	$	1,139,000
Gain on Securities Transactions, net	$	3,808,000	$	1,111,000
Net Income Attributable to Common Shareholders	$	6,561,000	$	4,346,000
Net Income Attributable to Common Shareholders         Per Common Share	$	.19	$	.16
FFO (1)	$	12,247,000	$	9,405,000
FFO Per Common Share (1)	$	.36	$	.34
Weighted Avg. Diluted Common Shares Outstanding		34,367,000		27,902,000

A summary of significant balance sheet information as of March 31, 2011 and September 30, 2010 is as follows:

		March  31, 2011		September 30, 2010
Total Real Estate Investments	$	408,596,000	$	392,189,000
Securities Available for Sale	$	44,312,000	$	42,518,000
Total Assets	$	474,005,000	$	454,119,000
Mortgage Notes Payable	$	211,615,000	$	210,578,000
Subordinated Convertible Debentures	$	8,940,000	$	13,990,000
Loans Payable	$	12,848,000	$	9,274,000
Total Shareholders’ Equity	$	234,728,000	$	215,512,000

Eugene W. Landy, President, commented on the results of the second quarter ended March 31, 2011, “We are pleased with the results of our second quarter. Our property portfolio continued to perform well and is currently 97% occupied with an average lease maturity of 5.1 years. Our securities portfolio also continued to perform well with $3.8 million in gains realized thus far in fiscal 2011 and an additional $9.3 million in unrealized gains at quarter end. We now have three acquisitions totaling $33 million representing 530,000 square feet under contract and scheduled to close by fiscal year end. Coupled with the acquisitions closed thus far, fiscal 2011 will represent a year of substantial growth. We have ample capital to invest and are continuing to execute our strategy of investing in net-leased industrials on long-term leases to investment grade tenants.”  

Monmouth Real Estate Investment Corporation, a real estate investment trust (REIT) specializing in net-leased industrial properties, will host its Second Quarter 2011 Financial Results Webcast and Conference Call.  Senior management will discuss quarterly results, current market conditions and future outlook on Tuesday, May 10, 2011 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 Information & Filings” section.

       (continued on next page)

15

Second Quarter FY 2011 Supplemental 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 877-317-6789 (domestically) or 412-317-6789 (internationally).

The replay of the conference call will be available at 12:00 p.m. Eastern Time on Tuesday, May 10, 2011.  It will be available until June 10, 2011, and can be accessed by dialing toll free 877-344-7529 (domestically) and 412-317-0088 (internationally) and entering the passcode 449167.  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-four 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)

16

Second Quarter FY 2011 Supplemental 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, 2011 and 2010 is calculated as follows:

                           Three Months Ended

          Six Months Ended

	3/31/11	3/31/10	3/31/11	3/31/10
Net Income	3,833,000	3,178,000	8,648,000	5,706,000
Income to Noncontrolling Interest	(19,000)	(46,000)	(47,000)	(99,000)
Preferred Dividend	(1,020,000)	(630,000)	(2,040,000)	(1,261,000)
Depreciation Expense	2,569,000	2,298,000	5,104,000	4,533,000
Amortization of In-Place Lease       Intangible Assets	288,000	273,000	582,000	526,000
FFO	$5,651,000	$5,073,000	$12,247,000	$9,405,000

The following are the cash flows provided (used) by operating, investing and financing activities for the six months ended March 31, 2011 and 2010:

	Six Months Ended
	2011	2010
Operating Activities	$10,697,000	$9,843,000
Investing Activities	(14,394,000)	(39,175,000)
Financing Activities	4,316,000	30,598,000

(continued on next page)

17

Second Quarter FY 2011 Supplemental 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, 2011 and 2010:

	Three Months Ended		Six Months Ended
	3/31/11	3/31/10		3/31/11	3/31/10
BASIC INCOME – PER SHARE
Net Income	$.11	$.11		$.25	$.20
Less:  Net Income Attributable to
Noncontrolling Interests	(-0-)	(-0-)		(-0-)	(-0-)
Net Income Attributable to
MREIC’s Shareholders	.11	.11		.25	.20
Less:  Preferred Dividend	(.03)	(.02)		(.06)	(.04)
Net Income Attributable to MREIC’s            Common Shareholders - Basic	$.08	$.09		$.19	$.16
DILUTED INCOME (LOSS) – PER SHARE
Net Income	$.11	$.11		$.25	$.20
Less:  Net Income Attributable to
Noncontrolling Interests	(-0-)	(-0-)		(-0-)	(-0-)
Net Income Attributable to
MREIC’s Shareholders	.11	.11		.25	.20
Less:  Preferred Dividend	(.03)	(.02)		(.06)	(.04)
Net Income Attributable to MREIC’s            Common Shareholders -  Diluted	$.08	$.09		$.19	$.16

# # # # #

18

Second Quarter FY 2011 Supplemental of Monmouth Real Estate Investment Corp.