UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
Date of Report (Date of earliest event reported) May 7, 2014
MONMOUTH REAL ESTATE INVESTMENT CORPORATION
(Exact name of Registrant as specified in its charter)
MARYLAND 001-33177 22-1897375
(State or other jurisdiction (Commission (IRS Employer
of incorporation) File Number) Identification Number)
3499 Route 9N, Suite 3C, Freehold, NJ 07728
(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code (732) 577-9996
(Former name or former address, if changed since last report.)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instructions A.2. below):
[ ] Written communications pursuant to Rule 425 under Securities Act (17 CFR 230.425)
[ ] Soliciting material pursuant to Rule 142-12 under the Exchange Act (17 CFR 240.14a-12
[ ] Pre-commencement communications pursuant to rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
[ ] Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
Item 2.02 Results of Operations and Financial Condition.
Item 7.01 Regulation FD Disclosure.
On May 7, 2014, Monmouth Real Estate Investment Corporation issued a press release announcing the results for the second quarter ended March 31, 2014 and disclosed a supplemental information package in connection with its earnings conference call for the second quarter ended March 31, 2014. A copy of the supplemental information package and press release is furnished with this report as Exhibit 99 and is incorporated herein by reference.
The information in this report and the exhibit attached hereto is being furnished, not filed, for the purposes of Section 18 of the Securities Exchange Act of 1934, as amended, and pursuant to Item 2.02 and Item 7.01 of Form 8-K will not be incorporated by reference into any filing under the Securities Act of 1933, as amended, unless specifically identified therein as being incorporated therein by reference.
Forward-Looking Statements
Statements contained in this report, including the documents that are incorporated by reference, that are not historical facts are forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended (the “Securities Act”), and Section 21E of the Securities Exchange Act of 1934, as amended (the “Exchange Act”). All statements, other than statements of historical facts that address activities, events or developments where the Company uses any of the words “anticipates,” “assumes,” “believes,” “estimates,” “expects,” “intends,” or similar expressions, are forward-looking statements. These forward-looking statements are not guaranteed and are based on the Company’s current intentions and on the Company’s current expectations and assumptions. These statements, intentions, expectations and assumptions involve risks and uncertainties, some of which are beyond the Company’s control that could cause actual results or events to differ materially from those that the Company anticipates or projects, such as:
Item 9.01 Financial Statements and Exhibits.
(d) | Exhibits. |
99 | Supplemental information package for the Second quarter ended March 31, 2014 and press release dated May 7, 2014. |
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
MONMOUTH REAL ESTATE INVESTMENT CORPORATION
/s/ Kevin S. Miller
Kevin S. Miller
Chief Financial and Accounting Officer
Date May 7, 2014
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Table of Contents | ||||||||||||
Page | ||||||||||||
Consolidated Balance Sheets | 3 | |||||||||||
Consolidated Statements of Income | 4 | |||||||||||
FFO, Core FFO, AFFO, NOI and EBITDA Reconciliations | 5 | |||||||||||
Financial Highlights | 6 | |||||||||||
Consolidated Statements of Cash Flows | 7 | |||||||||||
Capital Structure and Leverage Ratios | 8 | |||||||||||
Debt Maturity | 10 | |||||||||||
Property Table by Tenant | 11 | |||||||||||
Property Table by State | 12 | |||||||||||
Lease Expirations | 13 | |||||||||||
Recent Acquisitions | 14 | |||||||||||
Property Table | 15 | |||||||||||
Definitions | 17 | |||||||||||
Press Release Dated May 7, 2014 | 18 | |||||||||||
The statement of operations and supplemental statement of operations provided in this supplemental information package | ||||||||||||
present funds from operations, core funds from operations, adjusted funds from operations, net operating income and EBITDA, | ||||||||||||
which are REIT industry financial measures that are not calculated in accordance with accounting principles generally accepted | ||||||||||||
in the United States. Please see page 17 for a definition of these supplemental performance measures. Please see the | ||||||||||||
supplemental statement of operations reconciliation for a reconciliation of certain captions in the supplemental statement | ||||||||||||
of operations reported in this supplemental information package to the statement of operations as reported in the Company's | ||||||||||||
filings with the SEC on Form 10-Q. | ||||||||||||
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Consolidated Statements of Income | |||||||||||
(unaudited) | |||||||||||
Three Months Ended | Six Months Ended | ||||||||||
3/31/2014 | 3/31/2013 | 3/31/2014 | 3/31/2013 | ||||||||
INCOME: | |||||||||||
Rental Revenue | $14,085,029 | $11,738,407 | $27,655,751 | $23,047,661 | |||||||
Reimbursement Revenue | 2,260,276 | 1,567,802 | 4,350,709 | 3,086,038 | |||||||
Lease Termination Income | -0- | -0- | -0- | 690,730 | |||||||
TOTAL INCOME | 16,345,305 | 13,306,209 | 32,006,460 | 26,824,429 | |||||||
EXPENSES: | |||||||||||
Real Estate Taxes | 1,771,802 | 1,117,948 | 3,628,857 | 2,281,462 | |||||||
Operating Expenses | 1,129,543 | 967,176 | 1,848,980 | 1,493,800 | |||||||
General & Administrative Expenses | 1,328,256 | 944,352 | 2,448,719 | 2,239,408 | |||||||
Acquisition Costs | -0- | -0- | 462,864 | 385,862 | |||||||
Depreciation | 3,975,112 | 3,268,393 | 7,788,358 | 6,389,457 | |||||||
Amortization of Lease Costs and Intangible Assets | 451,459 | 477,852 | 894,685 | 970,716 | |||||||
TOTAL EXPENSES | 8,656,172 | 6,775,721 | 17,072,463 | 13,760,705 | |||||||
OTHER INCOME (EXPENSE): | |||||||||||
Interest and Dividend Income | 996,794 | 1,004,964 | 1,935,562 | 2,128,025 | |||||||
Gain on Sale of Securities Transactions, net | 425,349 | 3,802,704 | 576,074 | 5,913,472 | |||||||
Interest Expense | (4,185,372) | (3,842,634) | (8,060,513) | (7,718,306) | |||||||
Amortization of Financing Costs | (168,662) | (152,095) | (337,680) | (332,885) | |||||||
TOTAL OTHER INCOME (EXPENSE) | (2,931,891) | 812,939 | (5,886,557) | (9,694) | |||||||
INCOME FROM CONTINUING OPERATIONS | 4,757,242 | 7,343,427 | 9,047,440 | 13,054,030 | |||||||
INCOME FROM DISCONTINUED OPERATIONS | -0- | 300,484 | -0- | 296,458 | |||||||
NET INCOME | 4,757,242 | 7,643,911 | 9,047,440 | 13,350,488 | |||||||
Less: Preferred Dividend | 2,151,758 | 2,151,758 | 4,303,516 | 4,303,516 | |||||||
NET INCOME ATTRIBUTABLE TO | |||||||||||
COMMON SHAREHOLDERS | $2,605,484 | $5,492,153 | $4,743,924 | $9,046,972 | |||||||
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Capital Structure and Leverage Ratios (continued) | ||||||||||||
(unaudited) | ||||||||||||
Fiscal Year | ||||||||||||
Three Months Ended | Six Months Ended | Ended | ||||||||||
03/31/2014 | 03/31/2013 | 03/31/2014 | 03/31/2013 | 9/30/2013 | ||||||||
Net Income | $4,757,242 | $7,643,911 | $9,047,440 | $13,350,488 | $21,395,246 | |||||||
plus: Depreciation & Amortization (includes Discontinued Operations) | 4,595,233 | 3,898,340 | 9,020,723 | 7,705,901 | 15,542,937 | |||||||
plus: Interest Expense | 4,185,372 | 3,842,634 | 8,060,513 | 7,718,306 | 14,956,954 | |||||||
plus: Acquisition Costs | -0- | -0- | 462,864 | 385,862 | 514,699 | |||||||
less: Gain on Sale of Securities Transactions, net | (425,349) | (3,802,704) | (576,074) | (5,913,472) | (7,133,252) | |||||||
less: Gain on Sale of Investment Property | -0- | (345,794) | -0- | (345,794) | (345,794) | |||||||
EBITDA | $13,112,498 | $11,236,387 | $26,015,466 | $22,901,291 | $44,930,790 | |||||||
Interest Expense | $4,185,372 | $3,842,634 | $8,060,513 | $7,718,306 | $14,956,954 | |||||||
Preferred Dividends Paid | 2,151,758 | 2,151,758 | 4,303,516 | 4,303,516 | 8,607,032 | |||||||
Total Fixed Charges | $6,337,130 | $5,994,392 | $12,364,029 | $12,021,822 | $23,563,986 | |||||||
Interest Coverage | 3.1 x | 2.9 x | 3.2 x | 3.0 x | 3.0 x | |||||||
Fixed Charge Coverage | 2.1 x | 1.9 x | 2.1 x | 1.9 x | 1.9 x | |||||||
Net Debt | $323,417,133 | $248,422,172 | $323,417,133 | $248,422,172 | $259,888,870 | |||||||
Annualized EBITDA | 52,449,992 | 44,945,548 | 52,030,932 | 45,802,582 | 44,930,790 | |||||||
Net Debt / EBITDA | 6.2 x | 5.5 x | 6.2 x | 5.4 x | 5.8 x |
Second Quarter FY 2014 Supplemental of Monmouth Real Estate Investment Corp. Page 9 of 20
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Loans | % of | ||||||
Fiscal Year Ended | Mortgages | Payable (1) | Total (1) | Total | |||
2014 | $11,451,321 | $-0- | $11,451,321 | 3.5% | |||
2015 | 24,858,907 | 1,012,039 | 25,870,946 | 7.8% | |||
2016 | 36,448,658 | 41,270,163 | (2) | 77,718,821 | 23.4% | ||
2017 | 44,218,585 | 2,917,798 | 47,136,383 | 14.2% | |||
2018 | 34,372,026 | -0- | 34,372,026 | 10.4% | |||
Thereafter | 135,338,944 | -0- | 135,338,944 | 40.7% | |||
Total as of 03/31/2014 | $286,688,441 | $45,200,000 | $331,888,441 | 100.0% | |||
Notes:
(1) | Excludes $2.2 million of margin loans which are due upon demand. |
(2) | Includes a $40 million Line of Credit due June 2016, which has a one year extension option. |
Second Quarter FY 2014 Supplemental of Monmouth Real Estate Investment Corp. Page 10 of 20
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(A) | Does not include $86,653 of vacant land and corporate office leasehold improvements not associated with a specific tenant. |
(B) | NF&M International and Datatel Resources are located at one property and therefore are counted as one property in the property count total. |
(C) | Includes rental revenue from properties during Fiscal 2014 prior to becoming vacant. |
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(A) | Does not include $86,653 of vacant land and corporate office leasehold improvements not associated with a specific tenant. |
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(A) Does not include $86,653 of vacant land and corporate office leasehold improvements not associated with a specific tenant.
(B) Included in 2016 is Datatel Resources and included in 2018 is NF&M International which both occupy one property and therefore are counted as one property in the property count total.
(C) Various tenants at retail shopping center in Somerset, NJ.
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Property Table | Rent | |||||||||||
(unaudited) | Per | |||||||||||
Fiscal Year | Square | Annual | Sq. Ft. | Lease Exp. | Undepreciated | Mortgage | ||||||
No | Tenant | City (MSA) | State | Acquisition | Occup. | Footage | Rent | Occup. | Term in Years | Cost | Balance | |
48 | FedEx Ground Package System, Inc. | Ft. Myers | FL | 2003 | 100.0% | 87,500 | 427,000 | 4.88 | 2.6 | 5,004,128 | -0- | |
49 | DHL | Roanoke | VA | 2007 | 100.0% | 83,000 | 662,000 | 7.98 | 2.7 | 6,815,697 | 3,236,323 | |
50 | FedEx Corporation | Bedford Heights (Cleveland) | OH | 2007 | 100.0% | 82,269 | 408,000 | 4.96 | 4.4 | 6,767,782 | 3,109,184 | |
51 | FedEx Ground Package System, Inc. | Richfield (Cleveland) | OH | 2006 | 100.0% | 79,485 | 1,121,000 | 14.10 | 10.5 | 14,393,930 | 3,886,823 | |
52 | RGH Enterprises, Inc. | Halfmoon (Albany) | NY | 2012 | 100.0% | 75,000 | 584,000 | 7.79 | 7.7 | 5,525,600 | 4,026,990 | |
53 | FedEx Ground Package System, Inc. | Huntsville | AL | 2005 | 100.0% | 73,712 | 412,000 | 5.59 | 8.4 | 4,751,741 | 1,264,931 | |
54 | FedEx Corporation | Schaumburg (Chicago) | IL | 1997 | 100.0% | 73,500 | 515,000 | 7.01 | 3.0 | 4,967,639 | -0- | |
55 | FedEx Corporation | Romulus (Detroit) | MI | 1998 | 100.0% | 71,933 | 370,000 | 5.14 | 7.2 | 4,483,613 | 2,547,845 | |
56 | FedEx Ground Package System, Inc. | Denver | CO | 2005 | 100.0% | 69,865 | 564,000 | 8.07 | 4.3 | 6,354,051 | 1,764,106 | |
57 | Tampa Bay Grand Prix | Tampa | FL | 2005 | 100.0% | 68,385 | 281,000 | 4.11 | 6.5 | 5,651,066 | 2,328,157 | |
58 | FedEx Ground Package System, Inc. | Colorado Springs | CO | 2006 | 100.0% | 68,370 | 644,000 | 9.42 | 4.5 | 7,195,115 | 1,980,689 | |
59 | Sherwin-Williams Company | Rockford | IL | 2011 | 100.0% | 66,387 | 473,000 | 7.12 | 9.8 | 5,540,000 | -0- | |
60 | Kellogg Sales Company | Kansas City | MO | 2007 | 100.0% | 65,067 | 350,000 | 5.38 | 1.3 | 4,748,374 | 2,576,880 | |
61 | Various Tenants at Retail Shopping Center | Somerset | NJ | 1970 | 48.5% | 64,138 | 209,000 | 6.71 | -0- | 1,517,288 | -0- | |
62 | FedEx Corporation | Chattanooga | TN | 2007 | 100.0% | 60,637 | 311,000 | 5.13 | 3.6 | 4,971,161 | 2,085,847 | |
63 | FedEx Ground Package System, Inc. | Stewartsville (Rochester) | MN | 2013 | 100.0% | 60,398 | 372,000 | 6.16 | 9.2 | 5,220,000 | 3,180,536 | |
64 | United Technologies Corporation | Richmond | VA | 2004 | 100.0% | 60,000 | 308,000 | 5.13 | 2.2 | 4,741,005 | -0- | |
65 | Vacant | White Bear Lake (Minneapolis/St. Paul) | MN | 2001 | - | 59,425 | -0- | na | -0- | 5,157,126 | -0- | |
66 | Macy’s East, Inc. | Carlstadt (New York, NY) | NJ | 2001 | 100.0% | 59,400 | 226,000 | 7.61 | -0- | 4,838,592 | 2,251,613 | |
67 | FedEx Ground Package System, Inc. | Augusta | GA | 2005 | 100.0% | 59,358 | 477,000 | 8.04 | 4.3 | 5,328,873 | 1,254,729 | |
68 | Kellogg Sales Company | Newington (Hartford) | CT | 2001 | 100.0% | 54,812 | 332,000 | 6.06 | 2.9 | 3,445,824 | 544,611 | |
69 | Siemens Real Estate | Lebanon (Cincinnati) | OH | 2012 | 100.0% | 51,130 | 462,000 | 9.04 | 5.1 | 4,416,000 | 2,840,186 | |
70 | Kellogg Sales Company | Orangeburg (New York) | NY | 1993 | 100.0% | 50,400 | 353,000 | 7.00 | 0.9 | 3,690,718 | -0- | |
71 | FedEx Corporation | Charlottesville | VA | 1999 | 100.0% | 48,064 | 329,000 | 6.85 | 3.4 | 4,344,037 | -0- | |
72 | Dr Pepper Snapple | Tulsa | OK | 2014 | 100.0% | 46,240 | 253,000 | 5.47 | 9.9 | 3,700,000 | 2,214,932 | |
73 | FedEx Ground Package System, Inc. | Corpus Christi | TX | 2012 | 100.0% | 46,253 | 455,000 | 9.84 | 7.4 | 4,764,500 | 2,746,726 | |
74 | Coca Cola Enterprises, Inc. | Topeka | KS | 2009 | 100.0% | 40,000 | 332,000 | 8.30 | 7.5 | 3,679,843 | 1,906,285 | |
75 | Keystone Automotive | Urbandale (Des Moines) | IA | 1994 | 100.0% | 36,270 | 137,000 | 3.78 | 3.0 | 2,161,895 | -0- | |
76 | FedEx Corporation | Richland (Jackson) | MS | 1994 | 100.0% | 36,000 | 121,000 | 3.36 | 10.0 | 1,555,345 | -0- | |
77 | FedEx Corporation | Punta Gorda | FL | 2007 | 100.0% | 34,624 | 304,000 | 8.78 | 3.3 | 4,104,915 | 2,278,487 | |
78 | FedEx Corporation | Lakeland | FL | 2006 | 100.0% | 32,105 | 155,000 | 4.83 | 3.7 | 1,959,568 | -0- | |
79 | FedEx Corporation | Augusta | GA | 2006 | 100.0% | 30,184 | 121,000 | 4.01 | 8.7 | 1,926,932 | -0- | |
80 | Graybar Electric Company | Ridgeland (Jackson) | MS | 1993 | 100.0% | 26,340 | 109,000 | 4.14 | 5.3 | 1,850,795 | -0- | |
81 | Sherwin-Williams Company | Burr Ridge (Chicago) | IL | 1997 | 100.0% | 12,500 | 160,000 | 12.80 | 7.6 | 1,629,755 | -0- | |
Total as of 03/31/2014 | 95.4% | 10,708,419 | $56,307,000 | $5.55 | 6.8 | $707,571,071 | $286,688,441 | |||||
(A) Does not include $86,653 of vacant land and corporate office leasehold improvements not associated with a specific tenant.
(B) Both tenants occupy one property.
Second Quarter FY 2014 Supplemental of Monmouth Real Estate Investment Corp. Page 16 of 20
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FOR IMMEDIATE RELEASE May 7, 2014
Contact: Susan Jordan
732-577-9996
MONMOUTH REAL ESTATE INVESTMENT CORPORATION
REPORTS RESULTS FOR THE SECOND QUARTER ENDED MARCH 31, 2014
FREEHOLD, NJ, May 7, 2014........ 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 | $ | -0- | $ | 300,000 |
Net Income Attributable to Common Shareholders | $ | 2,605,000 | $ | 5,492,000 |
Net Income Attributable to Common Shareholders Per Diluted Common Share | $ | 0.05 | $ | 0.13 |
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 | $ | -0- | $ | 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 | $ | -0- | $ | 296,000 |
Net Income Attributable to Common Shareholders | $ | 4,744,000 | $ | 9,047,000 |
Net Income Attributable to Common Shareholders Per Diluted Common Share | $ | 0.10 | $ | 0.22 |
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 |
Second Quarter FY 2014 Supplemental of Monmouth Real Estate Investment Corp. Page 18 of 20
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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 Value | $ | 53,466,000 | $ | 45,452,000 |
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:
· | We 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. |
· | We 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. |
· | AFFO 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. |
· | Our 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. |
· | End 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. |
· | Our 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.
Second Quarter FY 2014 Supplemental of Monmouth Real Estate Investment Corp. Page 19 of 20
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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 Common Shareholders | $2,606,000 | $5,492,000 | $4,744,000 | $9,047,000 | |||
Depreciation Expense (including Discontinued Operations) | 3,975,000 | 3,268,000 | 7,788,000 | 6,402,000 | |||
Amortization of Intangible Assets | 338,000 | 385,000 | 671,000 | 770,000 | |||
Gain on Sale of Investment Property | -0- | (346,000) | -0- | (346,000) | |||
FFO Attributable to Common Shareholders | 6,919,000 | 8,799,000 | 13,203,000 | 15,873,000 | |||
Acquisition Costs | -0- | -0- | 463,000 | 386,000 | |||
Core FFO Attributable to Common Shareholders | $6,919,000 | $8,799,000 | $13,666,000 | $16,259,000 |
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 Common Shareholders | $6,919,000 | $8,799,000 | $13,666,000 | $16,259,000 | |||
Less: Gain on Sale of Securities Transactions, net | 425,000 | 3,802,000 | 576,000 | 5,913,000 | |||
Core FFO, excluding net Gain on Sale of Securities Transactions Attributable to Common Shareholders |
$6,494,000 | $4,997,000 | $13,090,000 | $10,346,000 |
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 |
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Second Quarter FY 2014 Supplemental of Monmouth Real Estate Investment Corp. Page 20 of 20
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