8-K

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 4, 2016

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 3D, 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 4, 2016, Monmouth Real Estate Investment Corporation issued a press release announcing the results for the second quarter ended March 31, 2016 and disclosed a supplemental information package in connection with its earnings conference call for the second quarter ended March 31, 2016. 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 and the Private Securities Litigation Reform Act of 1995 (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:

● the ability of the Company’s tenants to make payments under their respective leases, our reliance on certain major tenants and the Company’s ability to re-lease properties that are currently vacant or that become vacant;

● the Company’s ability to obtain suitable tenants for its properties;

● changes in real estate market conditions, economic conditions in the industrial sector and the market in which the Company’s properties are located and general economic conditions;

● the inherent risks associated with owning real estate, including local real estate market conditions, governing laws and regulations and illiquidity of real estate investments;

● the Company’s ability to acquire, finance and sell properties on attractive terms;

● the Company’s ability to repay debt financing obligations;

● the Company’s ability to refinance amounts outstanding under its credit facilities at maturity on terms favorable to us;

● the loss of any member of the Company’s management team;

● the Company’s ability to comply with debt covenants;

● the Company’s ability to integrate acquired properties and operations into existing operations;

● continued availability of proceeds from issuances of the Company’s debt or equity securities;

● the availability of other debt and equity financing alternatives;

● market conditions affecting the Company’s investment in marketable securities of other REIT’s;

2 

● changes in interest rates under the Company’s current credit facility and under any additional variable rate debt arrangements that the Company may enter into in the future;

● the Company’s ability to successfully implement the Company’s selective acquisition strategy;

● the Company’s ability to maintain internal controls and procedures to ensure all transactions are accounted for properly, all relevant disclosures and filings are timely made in accordance with all rules and regulations, and any potential fraud or embezzlement is thwarted or detected;

● changes in federal or state tax rules or regulations that could have adverse tax consequences;

● declines in the market value of the Company’s investment securities; and

● the Company’s ability to qualify as a REIT for federal income tax purposes.

Item 9.01 Financial Statements and Exhibits.

(d)	Exhibits.
99	Supplemental information package for the second quarter ended March 31, 2016 and press release dated May 4, 2016.

3 

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 4, 2016

4 

EX-99

 

Table of Contents
	Page
Consolidated Balance Sheets	3
Consolidated Statements of Income	4
NOI, EBITDA, FFO, Core FFO and AFFO Reconciliations	5
Financial Highlights	6
Same Property Statistics	7
Consolidated Statements of Cash Flows	9
Capital Structure and Leverage Ratios	10
Debt Maturity	12
Property Table by Tenant	13
Property Table by State	14
Lease Expirations	15
Recent Acquisitions	16
Property Table	17
Definitions	19
Press Release Dated May 4, 2016	20

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 (NOI), Same Property NOI, Same Property cash NOI and EBITDA which are REIT industry financial measures that are not calculated in accordance with accounting principles generally accepted in the United States of America. Please see page 19 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.

Consolidated Balance Sheets

	March 31, 2016			September 30, 2015
	(unaudited)
ASSETS
Real Estate Investments:
Land	$	144,885,315		$	134,160,315
Buildings and Improvements		874,477,994			807,619,001
Total Real Estate Investments		1,019,363,309			941,779,316
Accumulated Depreciation		(136,359,705	)		(124,978,211	)
Net Real Estate Investments		883,003,604			816,801,105
Cash and Cash Equivalents		9,934,618			12,073,909
Securities Available for Sale at Fair Value		68,646,996			54,541,237
Tenant and Other Receivables		1,148,035			783,052
Deferred Rent Receivable		6,027,130			5,205,295
Prepaid Expenses		6,772,544			3,931,616
Financing Costs, net of Accumulated Amortization of $3,720,052 and $3,247,014, respectively		6,130,202			5,987,911
Capitalized Lease Costs, net of Accumulated Amortization of $2,915,276 and $2,534,521, respectively		4,241,705			3,407,432
Intangible Assets, net of Accumulated Amortization of $11,797,054 and $11,153,855, respectively		5,554,799			6,115,134
Other Assets		8,195,829			7,145,251
TOTAL ASSETS	$	999,655,462		$	915,991,942
LIABILITIES AND SHAREHOLDERS’ EQUITY
Liabilities:
Mortgage Notes Payable	$	406,425,916		$	373,991,174
Loans Payable		99,916,883			85,041,386
Accounts Payable and Accrued Expenses		5,470,111			3,113,274
Other Liabilities		11,036,251			7,835,468
Total Liabilities		522,849,161			469,981,302
COMMITMENTS AND CONTINGENCIES
Shareholders’ Equity:
Series A – 7.625% Cumulative Redeemable Preferred Stock, $0.01 Par Value Per Share: 2,139,750 Shares Authorized, Issued and Outstanding as of March 31, 2016 and September 30, 2015		53,493,750			53,493,750
Series B – 7.875% Cumulative Redeemable Preferred Stock, $0.01 Par Value Per Share: 2,300,000 Shares Authorized, Issued and Outstanding as of March 31, 2016 and September 30, 2015		57,500,000			57,500,000
Common Stock – $0.01 Par Value Per Share: 200,000,000 Shares Authorized as of March 31, 2016 and September 30, 2015;  65,588,024 and 62,123,454 Shares Issued and Outstanding as of March 31, 2016 and September 30, 2015		655,880			621,235
Excess Stock – $0.01 Par Value Per Share: 200,000,000 Shares Authorized as of March 31, 2016 and September 30, 2015; No Shares Issued or Outstanding as of March 31, 2016 and September 30, 2015		-0-			-0-
Additional Paid-In Capital		363,096,308			339,837,258
Accumulated Other Comprehensive Income (Loss)		2,060,363			(5,441,603	)
Undistributed Income		-0-			-0-
Total Shareholders’ Equity		476,806,301			446,010,640
TOTAL LIABILITIES & SHAREHOLDERS’ EQUITY	$	999,655,462		$	915,991,942

Second Quarter FY 2016 Supplemental of Monmouth Real Estate Investment Corp. Page 3 of 22

Consolidated Statements of Income

(unaudited)

	Three Months Ended						Six Months Ended
	3/31/2016			3/31/2015			3/31/2016			3/31/2015
INCOME:
Rental Revenue	$	19,610,868		$	16,205,524		$	38,675,787		$	31,635,739
Reimbursement Revenue		3,355,970			2,653,072			6,550,413			4,900,387
Lease Termination Income		-0-			-0-			-0-			238,625
TOTAL INCOME		22,966,838			18,858,596			45,226,200			36,774,751
EXPENSES:
Real Estate Taxes		2,675,677			1,951,451			5,047,813			3,940,194
Operating Expenses		1,103,358			999,614			2,334,723			2,001,862
General & Administrative Expenses		2,221,445			1,567,725			3,557,409			2,808,310
Acquisition Costs		265,012			471,115			410,597			862,684
Depreciation		5,786,062			4,785,948			11,381,494			9,270,216
Amortization of Capitalized Lease Costs and Intangible Assets		486,360			529,820			972,971			1,005,315
TOTAL EXPENSES		12,537,914			10,305,673			23,705,007			19,888,581
OTHER INCOME (EXPENSE):
Interest and Dividend Income		1,379,668			962,948			2,564,321			1,998,405
Gain on Sale of Securities Transactions, net		878,962			-0-			887,342			377,087
Interest Expense		(5,316,936	)		(4,493,933	)		(10,429,216	)		(8,623,498	)
Amortization of Financing Costs		(238,671	)		(203,258	)		(473,038	)		(395,832	)
TOTAL OTHER INCOME (EXPENSE)		(3,296,977	)		(3,734,243	)		(7,450,591	)		(6,643,838	)
NET INCOME		7,131,947			4,818,680			14,070,602			10,242,332
Less: Preferred Dividend		2,151,758			2,151,758			4,303,516			4,303,516
NET INCOME ATTRIBUTABLE TO COMMON SHAREHOLDERS	$	4,980,189		$	2,666,922		$	9,767,086		$	5,938,816

Second Quarter FY 2016 Supplemental of Monmouth Real Estate Investment Corp. Page 4 of 22

NOI, EBITDA, FFO, Core FFO and AFFO Reconciliations

(unaudited)

	Three Months Ended						Six Months Ended
	3/31/2016			3/31/2015			3/31/2016			3/31/2015
Revenues
Rental Revenue	$	19,610,868		$	16,205,524		$	38,675,787		$	31,635,739
Reimbursement Revenue		3,355,970			2,653,072			6,550,413			4,900,387
Total Rental and Reimbursement Revenue		22,966,838			18,858,596			45,226,200			36,536,126
Expenses
Real Estate Taxes		2,675,677			1,951,451			5,047,813			3,940,194
Operating Expenses		1,103,358			999,614			2,334,723			2,001,862
Total Expenses		3,779,035			2,951,065			7,382,536			5,942,056
Net Operating Income - NOI		19,187,803			15,907,531			37,843,664			30,594,070
Lease Termination Income		-0-			-0-			-0-			238,625
Interest and Dividend Income		1,379,668			962,948			2,564,321			1,998,405
Net Amortization of Acquired Above and Below Market Lease Revenue		25,492			(1,883	)		50,984			8,767
General & Administrative Expenses		(2,221,445	)		(1,567,725	)		(3,557,409	)		(2,808,310	)
EBITDA		18,371,518			15,300,871			36,901,560			30,031,557
Interest Expense		(5,316,936	)		(4,493,933	)		(10,429,216	)		(8,623,498	)
Gain on Sale of Securities Transactions, net		878,962			-0-			887,342			377,087
Acquisition Costs		(265,012	)		(471,115	)		(410,597	)		(862,684	)
Preferred Dividend		(2,151,758	)		(2,151,758	)		(4,303,516	)		(4,303,516	)
Depreciation of Corporate Office Tenant Improvements		(29,118	)		(33,511	)		(57,089	)		(33,511	)
Amortization of Financing Costs		(238,671	)		(203,258	)		(473,038	)		(395,832	)
Funds From Operations - FFO		11,248,985			7,947,296			22,115,446			16,189,603
Depreciation (excluding corporate office)		(5,756,944	)		(4,752,437	)		(11,324,405	)		(9,236,705	)
Amortization of Capitalized Lease Costs and Intangible Assets		(511,852	)		(527,937	)		(1,023,955	)		(1,014,082	)
Net Income Attributable to Common Shareholders		4,980,189			2,666,922			9,767,086			5,938,816
Funds From Operations - FFO		11,248,985			7,947,296			22,115,446			16,189,603
Acquisition Costs		265,012			471,115			410,597			862,684
Core Funds From Operations - Core FFO		11,513,997			8,418,411			22,526,043			17,052,287
Lease Termination Income		-0-			-0-			-0-			(238,625	)
Gain on Sale of Securities Transactions, net		(878,962	)		-0-			(887,342	)		(377,087	)
Stock Compensation Expense		101,968			96,673			206,928			186,905
Depreciation of Corporate Office Tenant Improvements		29,118			33,511			57,089			33,511
Amortization of Financing Costs		238,671			203,258			473,038			395,832
U.S. GAAP Straight-lined Rent Adjustment		(512,170	)		(531,647	)		(821,835	)		(863,626	)
Recurring Capital Expenditures		(147,861	)		(82,297	)		(484,052	)		(255,797	)
Non-recurring other expense		400,000			-0-			400,000			-0-
Adjusted Funds From Operations - AFFO		10,744,761			8,137,909			21,469,869			15,933,400
EBITDA		18,371,518			15,300,871			36,901,560			30,031,557
Lease Termination Income		-0-			-0-			-0-			(238,625	)
Interest Expense		(5,316,936	)		(4,493,933	)		(10,429,216	)		(8,623,498	)
Preferred Dividend		(2,151,758	)		(2,151,758	)		(4,303,516	)		(4,303,516	)
Stock Compensation Expense		101,968			96,673			206,928			186,905
U.S. GAAP Straight-lined Rent Adjustment		(512,170	)		(531,647	)		(821,835	)		(863,626	)
Recurring Capital Expenditures		(147,861	)		(82,297	)		(484,052	)		(255,797	)
Non-recurring other expense		400,000			-0-			400,000			-0-
Adjusted Funds From Operations - AFFO	$	10,744,761		$	8,137,909		$	21,469,869		$	15,933,400

Second Quarter FY 2016 Supplemental of Monmouth Real Estate Investment Corp. Page 5 of 22

Financial Highlights

(unaudited)

	Three Months Ended				Six Months Ended
	3/31/2016		3/31/2015		3/31/2016		3/31/2015
Weighted Average Common Shares Outstanding
Basic		64,657,058		58,308,728		63,757,087		57,793,469
Diluted		64,736,469		58,462,729		63,828,310		57,936,743
Net Operating Income – NOI	$	19,187,803	$	15,907,531	$	37,843,664	$	30,594,070
Basic	$	0.30	$	0.27	$	0.59	$	0.53
Diluted		0.30		0.27		0.59		0.53
Net Income Attributable to Common Shareholders	$	4,980,189	$	2,666,922	$	9,767,086	$	5,938,816
Basic	$	0.08	$	0.04	$	0.15	$	0.10
Diluted		0.08		0.04		0.15		0.10
Funds From Operations – FFO	$	11,248,985	$	7,947,296	$	22,115,446	$	16,189,603
Basic	$	0.17	$	0.14	$	0.35	$	0.28
Diluted		0.17		0.14		0.35		0.28
Core Funds From Operations - Core FFO	$	11,513,997	$	8,418,411	$	22,526,043	$	17,052,287
Basic	$	0.18	$	0.14	$	0.35	$	0.29
Diluted		0.18		0.14		0.35		0.29
Core FFO Excluding Gains on Securities Transactions and Lease Termination Income, net	$	10,635,035	$	8,418,411	$	21,638,701	$	16,436,575
Basic	$	0.16	$	0.14	$	0.34	$	0.28
Diluted		0.16		0.14		0.34		0.28
Adjusted Funds From Operations - AFFO	$	10,744,761	$	8,137,909	$	21,469,869	$	15,933,400
Basic	$	0.17	$	0.14	$	0.34	$	0.28
Diluted		0.17		0.14		0.34		0.28
Dividends Declared per Common Share	$	0.16	$	0.15	$	0.32	$	0.30

Second Quarter FY 2016 Supplemental of Monmouth Real Estate Investment Corp. Page 6 of 22

Same Property Statistics

	Three Months Ended
	3/31/2016				3/31/15			Change		Change %
Total Square Feet / Total Properties		14,550,855/94				12,952,617/89			1,598,238		12.3	%
Occupancy Percentage at Quarter End		99.6	%			97.5	%		210 bps		2.2	%
Same Property Square Feet / Number of Same Properties
				11,896,183/83
Same Property Occupancy Percentage at Quarter End		99.5	%			97.2	%		230 bps		2.4	%
Same Property Net Operating Income (NOI) (GAAP)	$	15,291,323			$	14,943,386		$	347,937		2.3	%
Reversal of U.S. GAAP Straight-Line Rent Adjustment		(373,593	)			(531,646	)		158,053
Same Property Cash NOI (Cash)	$	14,917,730			$	14,411,740		$	505,990		3.5	%

Same Property Statistics include all properties owned during the entire periods presented with the exclusion of properties expanded during these periods.

The 2.3% increase, amounting to $347,937 in Same Property NOI (GAAP), consists of 26% or $89,228 generated by increased NOI from occupied properties and the remaining 74% or $258,709 attributable to increased NOI from filling previously vacant properties.

The 3.5% increase, amounting to $505,990 in Same Property Cash NOI, consists of 64% or $324,796 generated by increased NOI from occupied properties and the remaining 36% or $181,194 attributable to increased NOI from filling previously vacant properties.

Reconciliation of Same Property NOI to Total NOI	Three Months Ended
	3/31/2016		3/31/15		Change		Change %
Same Property NOI (GAAP)	$	15,291,323	$	14,943,386	$	347,942		2.3	%
NOI of properties purchased subsequent to January 1, 2015( eight properties for fiscal 2016 and two properties for fiscal 2015)		3,034,189		218,438
NOI of properties expanded subsequent to January 1, 2015 (three properties for fiscal 2016 and 2015)		862,291		599,327
NOI of property sold subsequent to January 1, 2015 (one property for fiscal 2015)		-0-		146,380
Total NOI	$	19,187,803	$	15,907,531	$	3,280,277		20.6	%

Second Quarter FY 2016 Supplemental of Monmouth Real Estate Investment Corp. Page 7 of 22

Same Property Statistics

	Six Months Ended
	3/31/2016				3/31/15			Change		Change %
Total Square Feet / Total Properties		14,550,855/94				12,952,617/89			1,598,238		12.3	%
Occupancy Percentage at Quarter End		99.6	%			97.5	%		210 bps		2.2	%
Same Property Square Feet / Number of Same Properties
				10,481,248/77
Same Property Occupancy Percentage at Quarter End		99.4	%			96.9	%		250 bps		2.6	%
Same Property Net Operating Income (NOI) (GAAP)	$	27,443,892			$	26,555,709		$	888,1838		3.3	%
Reversal of U.S. GAAP Straight-Line Rent Adjustment		(466,417	)			(647,571	)		181,154
Same Property Cash NOI (Cash)	$	26,977,475			$	25,908,138		$	1,069,3371		4.1	%

Same Property Statistics include all properties owned during the entire periods presented with the exclusion of properties expanded during these periods.

The 3.3% increase, amounting to $888,183 in Same Property NOI (GAAP), consists of 53% or $472,585 generated by increased NOI from occupied properties and the remaining 47% or $415,598 attributable to increased NOI from filling previously vacant properties.

The 4.1% increase, amounting to $1,069,337 in Same Property Cash NOI, consists of 69% or $732,595 generated by increased NOI from occupied properties and the remaining 31% or $336,742 attributable to increased NOI from filling previously vacant properties.

Reconciliation of Same Property NOI to Total NOI	Six Months Ended
	3/31/2016		3/31/15		Change		Change %
Same Property NOI (GAAP)	$	27,443,892	$	26,555,709	$	888,183		3.3	%
NOI of properties purchased subsequent to October 1, 2014 (thirteen properties for fiscal 2016 and seven properties for fiscal 2015)		8,203,219		2,187,807
NOI of properties expanded subsequent to October 1, 2014 (four properties for fiscal 2016 and 2015)		2,196,553		1,586,746
NOI of property sold subsequent to October 1, 2014 (one property for fiscal 2015)		-0-		263,808
Total NOI	$	37,843,664	$	30,594,070	$	7,249,594		23.7	%

Second Quarter FY 2016 Supplemental of Monmouth Real Estate Investment Corp. Page 8 of 22

Consolidated Statements of Cash Flows

(unaudited)

	Six Months Ended
	3/31/2016			3/31/2015
CASH FLOWS FROM OPERATING ACTIVITIES
Net Income	$	14,070,602		$	10,242,332
Noncash Items Included in Net Income:
Depreciation & Amortization		12,827,503			10,678,415
Stock Based Compensation Expense		206,928			186,905
Gain on Sale of Securities Transactions, net		(887,342	)		(377,087	)
Changes In:
Tenant, Deferred Rent and Other Receivables		(1,135,834	)		(618,061	)
Prepaid Expenses		(2,840,928	)		(2,664,189	)
Other Assets and Capitalized Lease Costs		(2,327,353	)		(892,206	)
Accounts Payable, Accrued Expenses and Other Liabilities		8,514,594			1,297,741
NET CASH PROVIDED BY OPERATING ACTIVITIES		28,428,170			17,853,850
CASH FLOWS FROM INVESTING ACTIVITIES
Purchase of Real Estate and Intangible Assets		(70,418,761	)		(112,400,079	)
Capital and Land Site Improvements		(10,193,323	)		(5,394,632	)
Return of Deposits on Real Estate		900,000			1,900,000
Deposits Paid on Acquisitions of Real Estate		(850,000	)		(2,000,000	)
Proceeds from Sale of Securities Available for Sale		7,416,459			9,584,512
Purchase of Securities Available for Sale		(13,132,910	)		(1,244,580	)
NET CASH USED IN INVESTING ACTIVITIES		(86,278,535	)		(109,554,779	)
CASH FLOWS FROM FINANCING ACTIVITIES
Net Proceeds from Loans Payable		14,875,497			39,961,669
Proceeds from Mortgage Notes Payable		46,670,000			73,186,828
Principal Payments on Mortgage Notes Payable		(14,235,258	)		(13,814,294	)
Financing Costs Paid on Debt		(615,329	)		(1,214,592	)
Proceeds from the Exercise of Stock Options		1,412,050			612,409
Proceeds from Issuance of Common Stock in the DRIP, net of Dividend Reinvestments		28,200,304			15,531,409
Preferred Dividends Paid		(4,303,516	)		(4,303,516	)
Common Dividends Paid, net of Reinvestments		(16,292,674	)		(13,232,331	)
NET CASH PROVIDED BY FINANCING ACTIVITIES		55,711,074			96,727,582
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS		(2,139,291	)		5,026,653
CASH AND CASH EQUIVALENTS - BEGINNING OF PERIOD		12,073,909			20,474,661
CASH AND CASH EQUIVALENTS - END OF PERIOD	$	9,934,618		$	25,501,314

Second Quarter FY 2016 Supplemental of Monmouth Real Estate Investment Corp. Page 9 of 22

Capital Structure and Leverage Ratios

(unaudited) 

	As of			As of			As of
	3/31/2016			3/31/2015			9/30/2015
Mortgage Notes Payable	$	406,425,916		$	347,168,540		$	373,991,174
Loans Payable		99,916,883			65,161,669			85,041,386
Total Debt		506,342,799			412,330,209			459,032,560
Series A - 7.625% Cumul. Redeemable Preferred		53,493,750			53,493,750			53,493,750
Series B - 7.875% Cumul. Redeemable Preferred		57,500,000			57,500,000			57,500,000
Total Preferred Stock		110,993,750			110,993,750			110,993,750
Common Stock, Paid-In-Capital & Other		365,812,551			319,832,077			335,016,890
Total Shareholders’ Equity		476,806,301			430,825,827			446,010,640
Total Book Capitalization		983,149,100			843,156,036			905,043,200
Accumulated Depreciation		136,359,705			116,274,401			124,978,211
Total Undepreciated Book Capitalization	$	1,119,508,805		$	959,430,437		$	1,030,021,411
Shares Outstanding		65,588,024			58,937,495			62,123,454
Market Price Per Share	$	11.89		$	11.11		$	9.75
Equity Market Capitalization	$	779,841,605		$	654,795,569		$	605,703,677
Total Debt		506,342,799			412,330,209			459,032,560
Preferred		110,993,750			110,993,750			110,993,750
Total Market Capitalization	$	1,397,178,154		$	1,178,119,528		$	1,175,729,987
Total Debt	$	506,342,799		$	412,330,209		$	459,032,560
less: Cash and Cash Equivalents		9,934,618			25,501,314			12,073,909
Net Debt	$	496,408,181		$	386,828,895		$	446,958,651
less: Securities Available for Sale at Fair Value (Securities)		68,646,996			52,506,095			54,541,237
Net Debt Less Securities	$	427,761,185		$	334,322,800		$	392,417,414
Net Debt / Undepreciated Book Capitalization		44.3	%		40.3	%		43.4	%
Net Debt / Total Market Capitalization		35.5	%		32.8	%		38.0	%
Net Debt Plus Preferred / Total Market Capitalization		43.5	%		42.3	%		47.5	%
Net Debt Less Securities / Undepreciated Book Capitalization		38.2	%		34.8	%		38.1	%
Net Debt Less Securities / Total Market Capitalization		30.6	%		28.4	%		33.4	%
Net Debt Less Securities Plus Preferred / Total Market Capitalization		38.6	%		37.8	%		42.8	%
Weighted Average Interest Rate on Fixed Rate Debt		4.61	%		5.05	%		4.85	%

Second Quarter FY 2016 Supplemental of Monmouth Real Estate Investment Corp. Page 10 of 22

Capital Structure and Leverage Ratios continued

(unaudited)

													Fiscal Year
	Three Months Ended						Six Months Ended						Ended
	3/31/2016			3/31/2015			3/31/2016			3/31/2015			9/30/2015
Net Income	$	7,131,947		$	4,818,680		$	14,070,602		$	10,242,332		$	25,605,815
plus: Depreciation & Amortization		6,511,093			5,519,026			12,827,503			10,671,363			23,058,744
plus: Interest Expense		5,316,936			4,493,933			10,429,216			8,623,498			18,558,150
plus: Acquisition Costs		265,012			471,115			410,597			862,684			1,546,088
plus: Net Amortization of Acquired Above and Below Market Lease Revenue		25,492			(1,883	)		50,984			8,767			59,750
less: Gain on Sale of Securities Transactions, net		(878,962	)		-0-			(887,342	)		(377,087	)		(805,513	)
less: Gain on Sale of Real Estate Investment		-0-			-0-			-0-			-0-			(5,021,242	)
EBITDA	$	18,371,518		$	15,300,871		$	36,901,560		$	30,031,557		$	63,001,792
Interest Expense	$	5,316,936		$	4,493,933		$	10,429,216		$	8,623,498			18,558,150
Preferred Dividends Paid		2,151,758			2,151,758			4,303,516			4,303,516			8,607,032
Total Fixed Charges	$	7,468,694		$	6,645,691		$	14,732,732		$	12,927,014		$	27,165,182
Interest Coverage		3.5 x			3.4 x			3.5 x			3.5 x			3.4 x
Fixed Charge Coverage		2.5 x			2.3 x			2.5 x			2.3 x			2.3 x
Net Debt	$	496,408,181		$	386,828,895		$	496,408,181		$	386,828,895		$	446,958,651
Net Debt Less Securities		427,761,185			334,322,800			427,761,185			334,322,800			392,417,414
Annualized EBITDA		73,486,072			61,203,484			73,803,120			60,063,114			63,001,792
Net Debt / EBITDA		6.8 x			6.3 x			6.7 x			6.4 x			7.1 x
Net Debt Less Securities / EBITDA		5.8 x			5.5 x			5.8 x			5.6 x			6.2 x
Net Debt + Preferred / EBITDA		8.3 x			8.1 x			8.2 x			8.3 x			8.9 x
Net Debt Less Securities + Preferred / EBITDA		7.3 x			7.3 x			7.3 x			7.4 x			8.0 x

Second Quarter FY 2016 Supplemental of Monmouth Real Estate Investment Corp. Page 11 of 22

Debt Maturity

(unaudited)

				Loans						% of
Fiscal Year Ended	Mortgages			Payable			Total			Total
2016		22,137,558			126,229			22,263,787			4.4	%
2017		59,882,940			4,790,654			64,673,594			12.8	%
2018		38,943,556			-0-			38,943,556			7.7	%
2019		42,333,366			95,000,000			137,333,366			27.1	%
2020		23,477,791			-0-			23,477,791			4.6	%
Thereafter		219,650,705			-0-			219,650,705			43.4	%
Total as of 3/31/16	$	406,425,916		$	99,916,883		$	506,342,799			100.0	%
Weighted Average Interest Rate		4.60	%		2.30	%		4.15	%
Weighted Average Term		9.28 yrs			3.34 yrs			8.10 yrs

Second Quarter FY 2016 Supplemental of Monmouth Real Estate Investment Corp. Page 12 of 22

Property Table by Tenant

(unaudited)

		Property		Square		Occupied Square		% of Occupied			Annual		% of Total Ann.			Rent Per Sq. Ft.		Undepreciated		Mortgage
Tenant		Count		Footage		Footage		Sq. Ft.			Rent		Rent			Occup.		Cost		Balance
FedEx Ground Package System, Inc.			34		5,084,939		5,084,939		34.9	%	$	36,347,000		45.1	%	$	7.15	$	463,611,667	$	194,442,661
FedEx Corporation			14		973,413		973,413		6.7	%		5,407,000		6.7	%		5.55		71,762,529		16,517,070
FedEx Supply Chain Services, Inc.			1		449,900		449,900		3.1	%		1,327,000		1.6	%		2.95		14,620,887		7,047,467
Total FedEx			49		6,508,252		6,508,252		44.7	%		43,081,000		53.4	%		6.62	$	549,995,083		218,007,198
ULTA, Inc.			1		671,354		671,354		4.6	%		2,651,000		3.3	%		3.95		37,484,574		23,379,733
Milwaukee Electric Tool Corporation			1		615,305		615,305		4.2	%		2,012,000		2.5	%		3.27		30,566,430		13,740,602
Jim Beam Brands Company			1		599,840		599,840		4.1	%		2,013,000		2.5	%		3.36		28,000,000		18,719,604
Ralcorp Holdings, Inc.			1		558,600		558,600		3.8	%		2,166,000		2.7	%		3.88		26,719,716		17,024,441
CBOCS Distribution, Inc.			1		381,240		381,240		2.6	%		1,420,000		1.8	%		3.72		14,215,126		7,759,461
Best Buy Warehousing Logistics, Inc.			1		368,060		368,060		2.5	%		1,641,000		2.0	%		4.46		19,600,000		10,713,223
The Coca-Cola Company/Western Container Corp.			2		323,358		323,358		2.2	%		1,678,000		2.1	%		5.19		19,340,971		7,154,046
Science Applications International			1		302,400		302,400		2.1	%		1,462,000		1.8	%		4.83		13,340,592		5,775,589
International Paper Company			1		280,000		280,000		1.9	%		1,326,000		1.6	%		4.74		18,294,108		10,997,372
Woodstream Corporation	(C)		1		256,000		256,000		1.8	%		896,000		1.1	%		3.50		8,823,781		-0-
United Technologies Corporation			2		244,317		244,317		1.7	%		1,895,000		2.3	%		7.76		22,512,609		8,306,477
Anda Pharmaceuticals, Inc.			1		234,660		234,660		1.6	%		1,196,000		1.5	%		5.10		14,550,000		9,029,577
UGN, Inc.			1		232,200		232,200		1.6	%		1,050,000		1.3	%		4.52		12,937,000		8,297,472
Caterpillar Logistics Services, Inc.			1		218,120		218,120		1.5	%		1,169,000		1.4	%		5.36		14,868,857		6,804,874
Anheuser-Busch, Inc.			1		184,800		184,800		1.3	%		806,000		1.0	%		4.36		12,398,355		669,810
Carlisle Tire & Wheel Company			1		179,280		179,280		1.2	%		787,000		1.0	%		4.39		7,225,401		650,600
NF&M International Inc.	(B)		1		174,802		174,802		1.2	%		832,000		1.0	%		4.76		3,958,293		-0-
Home Depot USA, Inc.			1		171,200		171,200		1.2	%		978,000		1.2	%		5.71		11,298,367		-0-
Kellogg Sales Company			3		170,279		170,279		1.2	%		982,000		1.2	%		5.77		12,159,973		2,312,867
Bunzl Distribution Midcentral, Inc.			1		158,417		158,417		1.1	%		741,000		0.9	%		4.68		9,600,000		7,032,682
Victory Packaging, L.P.			1		148,000		148,000		1.0	%		470,000		0.6	%		3.18		5,441,876		-0-
Altec Industries, Inc.	(C)		1		126,880		126,880		0.9	%		349,000		0.4	%		2.75		4,373,287		-0-
General Electric Company			1		125,860		125,860		0.9	%		1,311,000		1.6	%		10.42		19,950,000		13,000,000
The American Bottling Company			2		110,080		110,080		0.8	%		734,000		0.9	%		6.67		10,498,031		1,992,922
Style Crest, Inc.			1		106,507		106,507		0.7	%		361,000		0.4	%		3.39		7,238,613		-0-
Pittsburgh Glass Works LLC.			1		102,135		102,135		0.7	%		427,000		0.5	%		4.18		4,245,913		-0-
Holland 1916 Inc.			1		95,898		95,898		0.7	%		341,000		0.4	%		3.56		7,397,881		-0-
National Oilwell Varco, Inc.			1		91,295		91,295		0.6	%		746,000		0.9	%		8.17		8,083,107		3,331,850
Joseph T. Ryerson and Son, Inc.			1		89,052		89,052		0.6	%		506,000		0.6	%		5.68		6,932,916		601,474
CHEP USA, Inc.			2		83,000		83,000		0.6	%		494,000		0.6	%		5.95		7,405,447		2,670,944
Datatel Resources Corporation	(B)		1		80,856		80,856		0.6	%		242,000		0.3	%		2.99		3,810,675		-0-
Sherwin-Williams Company			2		78,887		78,887		0.5	%		637,000		0.8	%		8.07		7,244,128		-0-
RGH Enterprises, Inc.			1		75,000		75,000		0.5	%		596,000		0.7	%		7.95		5,525,600		3,836,331
Tampa Bay Grand Prix			1		68,385		68,385		0.5	%		289,000		0.4	%		4.23		5,677,982		-0-
Various Tenants at Retail Shopping Center			1		64,138		64,138		0.4	%		777,000		1.0	%		12.11		3,180,025		-0-
SOFIVE, Inc.			1		60,400		60,400		0.4	%		537,000		0.7	%		8.89		4,903,589		1,972,632
Siemens Real Estate			1		51,130		51,130		0.4	%		473,000		0.6	%		9.25		4,452,425		2,644,135
B/E Aerospace, Inc.			1		38,833		38,833		0.3	%		360,000		0.4	%		9.27		5,100,000		-0-
Keystone Automotive Industries MN, Inc.			1		36,270		36,270		0.2	%		140,000		0.2	%		3.86		2,161,895		-0-
Graybar Electric Company			1		26,340		26,340		0.2	%		109,000		0.1	%		4.14		1,850,794		-0-
Tenant Total as of 3/31/16			93		14,491,430		14,491,430		99.6	%	$	80,681,000		100.0	%	$	5.57	$	1,013,363,420	$	406.425.916
Vacant			1		59,425		-0-		0.0	%		-0-		0.0	%		-0-		5,157,126		-0-
Total as of 3/31/16			94		14,550,855		14,491,430		99.6	%	$	80,681,000		100.0	%	$	5.57		(A) $1,018,520,546	$	406.425.916
Acquisitions Subsequent to 3/31/16
FedEx Ground Package System, Inc.			1		210,445		210,445		1.4	%		1,962,000		2.4	%		9.32		30,662,080		20,221,000
Pro Forma Total			95		14,761,300		14,701,875		99.6	%	$	82,643,000		100.0	%	$	5.62		(A) $1,049,182,626	$	426,646,916

(A) Does not include $842,763 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) Woodstream Corporation and Altec Industries, Inc. are located at one property and therefore are counted as one property in the Property Count total.

Second Quarter FY 2016 Supplemental of Monmouth Real Estate Investment Corp. Page 13 of 22

Property Table by State

(unaudited)

	Property		Square		Occupied Square		% of Total			Annual		% of Total Ann.			Rent Per Sq. Ft.		Undepreciated		Mortgage
State	Count		Footage		Footage		Sq. Ft.			Rent		Rent			Occup.		Cost		Balance
Texas		9		1,379,468		1,379,468		9.5	%	$	10,474,000		13.0	%		7.59	$	127,969,811	$	60,046,029
Kentucky		2		1,158,440		1,158,440		8.0	%		4,179,000		5.2	%		3.61		54,719,716		35,744,045
Florida		10		1,137,293		1,137,293		7.8	%		7,565,000		9.4	%		6.65		102,838,191		43,250,472
Ohio		7		1,032,469		1,032,469		7.1	%		6,071,000		7.5	%		5.88		72,765,297		29,869,344
Indiana		2		999,176		999,176		6.9	%		4,184,000		5.2	%		4.19		61,430,574		36,109,880
Illinois		9		958,045		958,045		6.6	%		6,224,000		7.7	%		6.50		81,679,058		14,453,920
Mississippi		4		912,305		912,305		6.3	%		3,437,000		4.3	%		3.77		48,867,915		22,770,179
Tennessee		3		891,777		891,777		6.1	%		3,058,000		3.8	%		3.43		33,818,647		16,471,413
Missouri		5		804,397		804,397		5.5	%		3,079,000		3.8	%		3.83		39,241,336		9,345,549
North Carolina		3		585,224		585,224		4.0	%		2,909,000		3.6	%		4.97		44,656,386		20,523,149
South Carolina		3		571,115		571,115		3.9	%		3,552,000		4.4	%		6.22		36,368,552		9,181,548
Pennsylvania		3		504,040		504,040		3.5	%		3,036,000		3.8	%		6.02		36,708,968		17,198,769
Kansas		3		499,280		499,280		3.4	%		2,445,000		3.0	%		4.90		29,199,352		13,126,802
Michigan		3		489,571		489,571		3.4	%		3,472,000		4.3	%		7.09		41,248,198		16,631,157
Virginia		5		407,265		407,265		2.8	%		2,438,000		3.0	%		5.99		34,468,089		8,212,985
Georgia		3		307,662		307,662		2.1	%		1,743,000		2.2	%		5.67		22,164,662		7,680,479
Arizona		1		283,358		283,358		1.9	%		1,346,000		1.7	%		4.75		15,661,128		5,675,216
Wisconsin		2		238,666		238,666		1.6	%		1,369,000		1.7	%		5.74		15,952,361		3,407,810
New York		3		230,381		230,381		1.6	%		1,890,000		2.3	%		8.20		20,382,099		4,330,150
Oklahoma		2		204,580		204,580		1.4	%		1,305,000		1.6	%		6.38		16,328,293		6,628,100
Louisiana		1		175,315		175,315		1.2	%		1,258,000		1.6	%		7.18		18,410,000		12,785,748
Maryland		1		144,523		144,523		1.0	%		1,426,000		1.8	%		9.87		14,512,355		4,708,531
Colorado		2		138,235		138,235		1.0	%		1,208,000		1.5	%		8.74		13,549,167		2,676,220
New Jersey		2		124,538		124,538		0.9	%		1,314,000		1.6	%		12.11		8,083,614		1,972,632
Minnesota		2		119,823		60,398		0.8	%		372,000		0.5	%		6.18		10,377,126		2,731,107
Nebraska		1		89,115		89,115		0.6	%		446,000		0.6	%		5.00		5,937,281		-0-
Alabama		1		73,712		73,712		0.5	%		412,000		0.5	%		5.59		5,556,651		894,682
Connecticut		1		54,812		54,812		0.4	%		329,000		0.4	%		6.00		3,463,824		-0-
Iowa		1		36,270		36,270		0.2	%		140,000		0.2	%		3.86		2,161,895		-0-
Total as of 3/31/16		94		14,550,855		14,491,430		100.0	%	$	80,681,000		100.0	%	$	5.57		(A)$1,018,520,546	$	406,425,916
Acquisitions Subsequent to 3/31/16
Washington		1		210,445		210,445		1.4	%		1,962,000		2.4	%		9.32		30,662,080		20,221,000
Pro Forma Total		95		14,761,300		14,701,875		100.0	%	$	82,643,000		100.0	%	$	5.62		(A)$1,049,182,626	$	426,646,916

(A) Does not include $842,763 of vacant land and corporate office leasehold improvements not associated with a specific tenant.

Second Quarter FY 2016 Supplemental of Monmouth Real Estate Investment Corp. Page 14 of 22

Lease Expirations

(unaudited)

		Property		Square		% of Total			Annual		% of Total Ann.			Rent Per Sq. Ft.		Lease Exp. Term in		Undepreciated		Mortgage
Fiscal Year		Count		Footage		Sq. Ft.			Rent		Rent			Occup.		Years		Cost		Balance
2017	(B)		12		1,256,168		8.6	%		7,511,000		9.3	%		5.98		1.1		90,184,807		16,688,527
2018	(B)		15		1,324,159		9.1	%		7,760,000		9.6	%		5.86		2.1		91,737,775		21,326,251
2019			9		1,370,849		9.4	%		7,091,000		8.8	%		5.17		3.1		81,365,433		25,815,774
2020			2		239,585		1.6	%		1,267,000		1.6	%		5.29		4.3		16,976,349		-0-
2021			7		684,692		4.7	%		3,335,000		4.1	%		4.87		5.2		43,211,288		8,511,512
2022			8		1,212,032		8.3	%		6,751,000		8.4	%		5.57		6.0		81,168,644		36,264,688
2023			11		1,917,312		13.2	%		10,031,000		12.4	%		5.23		7.2		130,603,286		55,087,503
2024			12		1,914,366		13.2	%		12,069,000		15.0	%		6.30		8.2		149,406,964		56,093,890
2025	(B)		9		2,404,478		16.5	%		11,989,000		14.9	%		4.99		9.1		157,264,219		89,620,017
2026			1		125,860		0.9	%		1,311,000		1.6	%		10.42		9.8		19,950,000		13,000,000
2027			2		322,191		2.2	%		1,706,000		2.1	%		5.29		11.1		20,761,128		5,675,216
2029			2		262,613		1.8	%		1,513,000		1.9	%		5.76		13.3		21,950,000		9,970,551
2030			3		834,387		5.7	%		5,404,000		6.7	%		6.48		13.9		78,883,786		51,347,546
2034			1		558,600		3.8	%		2,166,000		2.7	%		3.88		17.6		26,719,716		17,024,441
Various tenants at retail shopping center			1		64,138		0.4	%		777,000		1.0	%		12.11		-0-		3,180,025		-0-
Vacant			1		59,425		0.4	%		-0-		0.0	%		-0-		-0-		5,157,126		-0-
Total as of 3/31/16			94		14,550,855		100.0	%	$	80,681,000		100.0	%	$	5.57		7.0		(A)$1,018,520,546	$	406,425,916
Acquisitions Subsequent to 3/31/16
2030			1		210,445		1.4	%		1,962,000		2.4	%		9.32		14.4		30,662,080		20,221,000
Pro Forma Total			95		14,761,300		100.0	%	$	82,643,000		100.0	%	$	5.62		7.1		(A)$1,049,182,626	$	426,646,916

(A) Does not include $842,763 of vacant land and corporate office leasehold improvements not associated with a specific tenant.

(B) Included in 2018 is Datatel Resources and included in 2025 is NF&M International which both occupy one property. Included in 2017 is Woodstream Corporation and included in 2018 is Altec Industries which both occupy one property.

Second Quarter FY 2016 Supplemental of Monmouth Real Estate Investment Corp. Page 15 of 22

Recent Acquisitions During Fiscal 2016

(unaudited)

					Fiscal Year		Square		Annual		Rent Per Sq. Ft.		Lease		Purchase		Initial Mortgage
No	Tenant	City (MSA)	State		Acquisition		Footage		Rent		Occup.		Expiration		Price		Balance
1	FedEx Ground Package System, Inc.	Concord (Charlotte)		NC		2016		330,717	$	2,078,000	$	6.28		7/31/2025	$	31,975,897	$	20,780,000
2	FedEx Ground Package System, Inc.	Covington (New Orleans)		LA		2016		175,315		1,258,000		7.18		6/30/2025		18,410,000		12,890,000
3	General Electric Company	Imperial (Pittsburgh)		PA		2016		125,860		1,311,000		10.42		12/31/2025		20,032,864		13,000,000
	As of 3/31/16							631,892	$	4,647,000	$	7.35			$	70,418,761	$	46,670,000
Acquisitions Subsequent to 3/31/16
4	FedEx Ground Package System, Inc.	Burlington (Seattle/Everett)		WA		2016		210,445		1,962,000		9.32		8/31/2030		30,662,080		20,221,000
	Acquisitions Subsequent to 3/31/16							210,445	$	1,962,000	$	9.32			$	30,662,080	$	20,221,000

Second Quarter FY 2016 Supplemental of Monmouth Real Estate Investment Corp. Page 16 of 22

Property Table

(unaudited)

															Rent Per		Lease Exp. Term
						Fiscal Year					Square		Annual		Sq. Ft.		in		Undepreciated		Mortgage
No	Tenant		City (MSA)	State		Acquisition		Occup.			Footage		Rent		Occup.		Years		Cost		Balance
1	ULTA, Inc.		Greenwood (Indianapolis)		IN		2015		100.0	%		671,354	$	2,651,000	$	3.95		9.3	$	37,484,574	$	23,379,733
2	Milwaukee Electric Tool Corporation		Olive Branch (Memphis, TN)		MS		2013		100.0	%		615,305		2,012,000		3.27		7.1		30,566,430		13,740,602
3	Jim Beam Brands Company		Frankfort		KY		2015		100.0	%		599,840		2,013,000		3.36		8.8		28,000,000		18,719,604
4	Ralcorp Holdings, Inc.		Buckner (Louisville)		KY		2014		100.0	%		558,600		2,166,000		3.88		17.6		26,719,716		17,024,441
5	FedEx Supply Chain Services, Inc.		Memphis		TN		2010		100.0	%		449,900		1,327,000		2.95		3.2		14,620,887		7,047,467
6	Woodstream Corporation	(B)	St. Joseph		MO		2001		100.0	%		256,000		896,000		3.50		1.5		8,823,782		-0-
	Altec Industries, Inc.	(B)	St. Joseph		MO		2001		100.0	%		126,880		349,000		2.75		1.9		4,373,288		-0-
7	CBOCS Distribution, Inc.		Lebanon (Nashville)		TN		2011		100.0	%		381,240		1,420,000		3.72		8.3		14,215,126		7,759,461
8	Best Buy Warehousing Logistics, Inc.		Streetsboro (Cleveland)		OH		2012		100.0	%		368,060		1,641,000		4.46		5.8		19,600,000		10,713,223
9	FedEx Ground Package System, Inc.		Concord		NC		2016		100.0	%		330,717		2,078,000		6.28		9.3		31,975,897		20,523,149
10	FedEx Ground Package System, Inc.		Indianapolis		IN		2014		100.0	%		327,822		1,533,000		4.68		8.1		23,946,000		12,730,147
11	FedEx Ground Package System, Inc.		Fort Worth (Dallas)		TX		2015		100.0	%		304,608		2,362,000		7.75		14.1		35,300,832		24,071,184
12	Science Applications International		Hanahan (Charleston)		SC		2005		100.0	%		302,400		1,462,000		4.83		3.1		13,340,592		5,775,589
13	FedEx Ground Package System, Inc.		Jacksonville		FL		2015		100.0	%		297,579		1,992,000		6.69		13.8		30,645,954		18,978,890
14	Western Container Corp.		Tolleson (Phoenix)		AZ		2003		100.0	%		283,358		1,346,000		4.75		11.1		15,661,128		5,675,216
15	International Paper Company		Edwardsville (Kansas City)		KS		2014		100.0	%		280,000		1,326,000		4.74		7.4		18,294,108		10,997,372
16	NF&M International	(C)	Monaca (Pittsburgh)		PA		1988		100.0	%		174,802		832,000		4.76		8.8		3,958,294		-0-
	Datatel Resources Corp.	(C)	Monaca (Pittsburgh)		PA		1988		100.0	%		80,856		242,000		2.99		1.7		3,810,675		-0-
17	FedEx Ground Package System, Inc.		Orion		MI		2007		100.0	%		245,633		1,908,000		7.77		7.3		22,885,636		8,841,942
18	Anda Pharmaceuticals, Inc.		Olive Branch (Memphis, TN)		MS		2012		100.0	%		234,660		1,196,000		5.10		6.3		14,550,000		9,029,577
19	UGN, Inc.		Monroe (Cincinnati)		OH		2015		100.0	%		232,200		1,050,000		4.52		13.9		12,937,000		8,297,472
20	Caterpillar Logistics Services, Inc.		Griffin (Atlanta)		GA		2006		100.0	%		218,120		1,169,000		5.36		0.7		14,868,857		6,804,874
21	FedEx Ground Package System, Inc.		Sauget (St. Louis, MO)		IL		2015		100.0	%		198,773		1,036,000		5.21		13.2		15,200,000		9,970,551
22	Anheuser-Busch, Inc.		Granite City (St. Louis, MO)		IL		2001		100.0	%		184,800		806,000		4.36		5.7		12,398,355		669,810
23	United Technologies Corporation		Carrollton (Dallas)		TX		2010		100.0	%		184,317		1,576,000		8.55		2.8		17,744,300		8,306,477
24	FedEx Ground Package System, Inc.		Spring (Houston)		TX		2014		100.0	%		181,176		1,581,000		8.73		8.5		19,283,798		9,412,588
25	Carlisle Tire & Wheel Company		Edwardsville (Kansas City)		KS		2003		100.0	%		179,280		787,000		4.39		2.2		7,225,401		650,600
26	FedEx Ground Package System, Inc.		Ft. Mill (Charlotte, NC)		SC		2010		100.0	%		176,939		1,415,000		8.00		7.6		15,413,307		2,202,220
27	FedEx Ground Package System, Inc.		Covington		LA		2016		100.0	%		175,315		1,258,000		7.18		9.3		18,410,000		12,785,748
28	FedEx Ground Package System, Inc.		Livonia (Detroit)		MI		2013		100.0	%		172,005		1,194,000		6.94		6.0		13,762,030		7,789,215
29	Home Depot USA, Inc.		Montgomery (Chicago)		IL		2004		100.0	%		171,200		978,000		5.71		4.3		11,298,367		-0-
30	FedEx Ground Package System, Inc.		Tampa		FL		2004		100.0	%		170,779		1,493,000		8.74		8.3		18,948,239		6,978,210
31	FedEx Ground Package System, Inc.		Lindale (Tyler)		TX		2015		100.0	%		163,378		725,000		4.44		8.3		9,930,000		6,553,102
32	Bunzl Distribution Midcentral, Inc.		Kansas City		MO		2015		100.0	%		158,417		741,000		4.68		5.5		9,600,000		7,032,682
33	FedEx Ground Package System, Inc.		Oklahoma City		OK		2012		100.0	%		158,340		1,048,000		6.62		9.3		12,580,262		4,635,178
34	FedEx Ground Package System, Inc.		Waco		TX		2012		100.0	%		150,710		1,078,000		7.15		9.4		12,546,157		4,933,029
35	Victory Packaging, L.P.		Fayetteville		NC		1997		100.0	%		148,000		470,000		3.18		4.9		5,441,876		-0-
36	FedEx Ground Package System, Inc.		Beltsville (Washington, DC)		MD		2001		100.0	%		144,523		1,426,000		9.87		2.3		14,512,355		4,708,531
37	FedEx Ground Package System, Inc.		El Paso		TX		2006		100.0	%		144,149		1,345,000		9.33		7.5		12,431,194		3,437,799
38	FedEx Ground Package System, Inc.		Cocoa		FL		2008		100.0	%		144,138		1,112,000		7.71		8.5		14,097,786		5,216,365
39	FedEx Ground Package System, Inc.		Cudahy (Milwaukee)		WI		2001		100.0	%		139,564		901,000		6.46		1.2		9,382,361		-0-
40	FedEx Ground Package System, Inc.		Richfield (Cleveland)		OH		2006		100.0	%		131,152		1,490,000		11.36		8.5		16,435,478		3,248,875
41	General Electric Company		Imperial (Pittsburgh)		PA		2016		100.0	%		125,860		1,311,000		10.42		9.8		19,950,000		13,000,000
42	FedEx Ground Package System, Inc.		Wheeling (Chicago)		IL		2003		100.0	%		123,000		1,386,000		11.27		1.2		18,537,652		3,212,085
43	FedEx Ground Package System, Inc.		Altoona		PA		2014		100.0	%		122,522		651,000		5.31		7.4		8,990,000		4,198,769
44	FedEx Ground Package System, Inc.		Edinburg		TX		2011		100.0	%		113,582		598,000		5.26		5.4		7,885,924		-0-
45	FedEx Corporation		Mechanicsville (Richmond)		VA		2001		100.0	%		112,799		541,000		4.80		7.1		7,750,296		-0-
46	FedEx Corporation		Orlando		FL		2008		100.0	%		110,638		666,000		6.02		1.7		8,554,432		4,458,626
47	Style Crest, Inc.		Winston-Salem		NC		2002		100.0	%		106,507		361,000		3.39		5.0		7,238,613		-0-
48	FedEx Ground Package System, Inc.		Cheektowaga (Buffalo)		NY		2000		100.0	%		104,981		966,000		9.20		3.4		10,960,823		493,819
49	FedEx Ground Package System, Inc.		West Chester Twp (Cincinnati)		OH		1999		100.0	%		103,818		532,000		5.12		7.4		5,728,690		2,190,061
50	FedEx Ground Package System, Inc.		Roanoke		VA		2013		100.0	%		103,402		755,000		7.30		7.1		10,200,000		5,542,041
51	Pittsburgh Glass Works LLC.		O’ Fallon (St. Louis)		MO		1994		100.0	%		102,135		427,000		4.18		2.2		4,245,913		-0-
52	FedEx Ground Package System, Inc.		Green Bay		WI		2013		100.0	%		99,102		468,000		4.72		7.2		6,570,000		3,407,810
53	Holland 1916 Inc.		Liberty (Kansas City)		MO		1998		100.0	%		95,898		341,000		3.56		3.2		7,397,881		-0-
54	FedEx Corporation		Jacksonville		FL		1999		100.0	%		95,883		518,000		5.40		3.2		6,229,421		1,548,287
55	FedEx Corporation		Tampa		FL		2006		100.0	%		95,662		603,000		6.30		1.5		7,571,132		4,018,120
56	FedEx Ground Package System, Inc.		Hanahan (Charleston)		SC		2005		100.0	%		91,776		675,000		7.35		2.3		7,614,653		1,203,739
57	National Oilwell Varco, Inc.		Houston		TX		2010		100.0	%		91,295		746,000		8.17		6.5		8,083,107		3,331,850
58	FedEx Corporation		Omaha		NE		1999		100.0	%		89,115		446,000		5.00		7.6		5,937,281		-0-

Second Quarter FY 2016 Supplemental of Monmouth Real Estate Investment Corp. Page 17 of 22

Property Table

(unaudited)

														Rent Per		Lease Exp. Term
					Fiscal Year					Square		Annual		Sq. Ft.		in		Undepreciated		Mortgage
No	Tenant	City (MSA)	State		Acquisition		Occup.			Footage		Rent		Occup.		Years		Cost		Balance
59	Joseph T. Ryerson and Son, Inc.	Elgin (Chicago)		IL		2002		100.0	%		89,052		506,000		5.68		0.8		6,932,916		601,474
60	FedEx Ground Package System, Inc.	Ft. Myers		FL		2003		100.0	%		87,500		433,000		4.95		0.6		5,017,447		-0-
61	CHEP USA, Inc.	Roanoke		VA		2007		100.0	%		83,000		494,000		5.95		8.9		7,405,447		2,670,944
62	FedEx Corporation	Bedford Heights (Cleveland)		OH		2007		100.0	%		82,269		408,000		4.96		2.4		6,861,704		2,775,578
63	RGH Enterprises, Inc.	Halfmoon (Albany)		NY		2012		100.0	%		75,000		596,000		7.95		5.7		5,525,600		3,836,331
64	FedEx Ground Package System, Inc.	Huntsville		AL		2005		100.0	%		73,712		412,000		5.59		6.4		5,556,651		894,682
65	FedEx Corporation	Schaumburg (Chicago)		IL		1997		100.0	%		73,500		515,000		7.01		1.0		4,967,639		-0-
66	FedEx Corporation	Romulus (Detroit)		MI		1998		100.0	%		71,933		370,000		5.14		5.2		4,600,532		-0-
67	FedEx Ground Package System, Inc.	Denver		CO		2005		100.0	%		69,865		564,000		8.07		2.3		6,354,051		1,209,195
68	Tampa Bay Grand Prix	Tampa		FL		2005		100.0	%		68,385		289,000		4.23		4.5		5,677,982		-0-
69	FedEx Ground Package System, Inc.	Colorado Springs		CO		2006		100.0	%		68,370		644,000		9.42		2.5		7,195,115		1,467,025
70	Sherwin-Williams Company	Rockford		IL		2011		100.0	%		66,387		477,000		7.19		7.8		5,551,227		-0-
71	Kellogg Sales Company	Kansas City		MO		2007		100.0	%		65,067		325,000		4.99		2.3		4,800,474		2,312,867
72	Various Tenants at Retail Shopping Center	Somerset		NJ		1970		100.0	%		64,138		777,000		12.11		na		3,180,025		-0-
73	The American Bottling Company	Cincinnati		OH		2015		100.0	%		63,840		477,000		7.47		13.5		6,750,000		-0-
74	FedEx Corporation	Chattanooga		TN		2007		100.0	%		60,637		311,000		5.13		1.6		4,982,634		1,664,485
75	SOFIVE, Inc.	Carlstadt (New York, NY)		NJ		2001		100.0	%		60,400		537,000		8.89		8.8		4,903,589		1,972,632
76	FedEx Ground Package System, Inc.	Stewartville (Rochester)		MN		2013		100.0	%		60,398		372,000		6.16		7.2		5,220,000		2,731,107
77	United Technologies Corporation	Richmond		VA		2004		100.0	%		60,000		319,000		5.32		2.7		4,768,309		-0-
78	Vacant	White Bear Lake (Minneapolis/St. Paul)		MN		2001		0.0	%		59,425		-0-		na		na		5,157,126		-0-
79	FedEx Ground Package System, Inc.	Augusta		GA		2005		100.0	%		59,358		453,000		7.63		2.2		5,328,873		875,605
80	Kellogg Sales Company	Newington (Hartford)		CT		2001		100.0	%		54,812		329,000		6.00		0.9		3,463,824		-0-
81	Siemens Real Estate	Lebanon (Cincinnati)		OH		2012		100.0	%		51,130		473,000		9.25		3.1		4,452,425		2,644,135
82	Kellogg Sales Company	Orangeburg (New York)		NY		1993		100.0	%		50,400		328,000		6.51		1.9		3,895,675		-0-
83	FedEx Corporation	Charlottesville		VA		1999		100.0	%		48,064		329,000		6.85		1.4		4,344,037		-0-
84	FedEx Ground Package System, Inc.	Corpus Christi		TX		2012		100.0	%		46,253		463,000		10.01		5.4		4,764,500		-0-
85	The American Bottling Company	Tulsa		OK		2014		100.0	%		46,240		257,000		5.56		7.9		3,748,031		1,992,922
86	The Coca-Cola Company	Topeka		KS		2009		100.0	%		40,000		332,000		8.30		5.5		3,679,843		1,478,830
87	B/E Aerospace, Inc.	Rockford		IL		2015		100.0	%		38,833		360,000		9.27		11.3		5,100,000		-0-
88	Keystone Automotive Industries MN, Inc.	Urbandale (Des Moines)		IA		1994		100.0	%		36,270		140,000		3.86		1.0		2,161,895		-0-
89	FedEx Corporation	Richland (Jackson)		MS		1994		100.0	%		36,000		120,000		3.33		8.0		1,900,691		-0-
90	FedEx Corporation	Punta Gorda		FL		2007		100.0	%		34,624		304,000		8.78		1.2		4,113,265		2,051,974
91	FedEx Corporation	Lakeland		FL		2006		100.0	%		32,105		155,000		4.83		1.7		1,982,532		-0-
92	FedEx Corporation	Augusta		GA		2006		100.0	%		30,184		121,000		4.01		6.7		1,966,932		-0-
93	Graybar Electric Company	Ridgeland (Jackson)		MS		1993		100.0	%		26,340		109,000		4.14		3.3		1,850,794		-0-
94	Sherwin-Williams Company	Burr Ridge (Chicago)		IL		1997		100.0	%		12,500		160,000		12.80		5.6		1,692,901		-0-
	Total as of 3/31/16							99.6	%		14,550,855	$	80,681,000	$	5.57		7.0		(A)$1,018,520,546	$	406,425,916
	Acquisitions Subsequent to 3/31/16
95	FedEx Ground Package System, Inc.	Burlington (Seattle/Everett)		WA		2016		100.0	%		210,445		1,962,000		9.32		14.4		30,662,080		20,221,000
	Pro Forma Total							99.6	%		14,761,300	$	82,643,000	$	5.62		7.1		(A)$1,049,182,626	$	426,646,916

(A) Does not include $842,763 of vacant land and corporate office leasehold improvements not associated with a specific tenant.

(B) Both tenants occupy one property.

(C) Both tenants occupy one property.

Second Quarter FY 2016 Supplemental of Monmouth Real Estate Investment Corp. Page 18 of 22

Definitions

Investors and analysts following the real estate industry utilize funds from operations (“FFO”), core funds from operations (“Core FFO”), net operating income (“NOI”), Same Property NOI, Same Property cash NOI, earnings before interest, taxes, depreciation and amortization (“EBITDA”) and adjusted funds from operations (“AFFO”), variously defined, as supplemental performance measures. While the Company believes net income available to common stockholders, as defined by accounting principles generally accepted in the United States of America (U.S. GAAP), is the most appropriate measure, it considers NOI, Same Property NOI, Same Property Cash NOI, EBITDA, FFO, Core FFO and AFFO, given their wide use by and relevance to investors and analysts, appropriate supplemental performance measures. FFO, reflecting the assumption that real estate asset values rise or fall with market conditions, principally adjusts for the effects of U.S. GAAP depreciation and amortization of real estate assets. Core FFO reflects the same assumptions as FFO except that is also adjusts for the effects of acquisitions costs. NOI provides a measure of rental operations, and does not factor in depreciation and amortization and non-property specific expenses such as general and administrative expenses. EBITDA provides a tool to further evaluate the ability to incur and service debt and to fund dividends and other cash needs. AFFO provides a tool to further evaluate the ability to fund dividends. In addition, NOI, Same Property NOI, Same Property Cash NOI, EBITDA, FFO, Core FFO and AFFO are commonly used in various ratios, pricing multiples, yields and returns and valuation of calculations used to measure financial position, performance and value.

As used herein, the Company calculates FFO, as defined by The National Association of Real Estate Investment Trusts (NAREIT), to be equal to net income (loss) applicable to common shareholders, as defined by U.S. GAAP, excluding extraordinary items as defined by U.S. GAAP, gains or losses from sales of previously depreciated real estate assets, impairment charges related to depreciable real estate assets, plus certain non-cash items such as real estate asset depreciation and amortization. FFO includes gains and losses realized on securities investments.

NOI is calculated as recurring revenues of the Company, less property expenses such as real estate taxes, repairs and maintenance, property management, utilities, insurance and other expenses. NOI excludes realized gains (losses) on securities transactions.

Same Property NOI is the NOI of all properties owned during the entire periods presented with the exclusion of any properties expanded during the periods presented.

Same Property Cash NOI is the Same Property NOI adjusted to exclude the effects of the U.S. GAAP straight-line rent adjustment for the properties included in the Same Property NOI calculation.

EBITDA is calculated as NOI, less general and administrative expenses, plus interest and dividend income and lease termination income and net effect of net amortization of acquired above or below market lease revenue.

Core FFO is calculated as FFO plus acquisition costs.

AFFO is calculated as EBITDA, minus lease termination income, minus U.S. GAAP interest expense, minus preferred stock dividends, minus recurring capital expenditures and U.S. GAAP straight-line rent adjustment, plus stock compensation expense, plus non-recurring other expense. AFFO excludes realized gains (losses) on securities transactions. Recurring capital expenditures are defined as all capital expenditures, excluding capital expenditures related to expansions at our current locations or capital expenditures that are incurred in conjunction with obtaining a new lease or a lease renewal.

NOI, Same Property NOI, Same Property Cash NOI, EBITDA, FFO, Core FFO and AFFO do not represent cash generated from operating activities in accordance with U.S. GAAP and are not necessarily indicative of cash available to fund cash needs, including the repayment of principal on debt and payment of dividends and distributions. NOI, Same Property NOI, Same Property Cash NOI, EBITDA, FFO, Core FFO and AFFO should not be considered as substitutes for net income applicable to common shareholders (calculated in accordance with U.S. GAAP) as a measure of results of operations or cash flows (calculated in accordance with U.S. GAAP) as a measure of liquidity. NOI, Same Property NOI, Same Property Cash NOI, EBITDA, FFO, Core FFO and AFFO as currently calculated by the Company may not be comparable to similarly titled, but variously calculated, measures of other REITs.

Second Quarter FY 2016 Supplemental of Monmouth Real Estate Investment Corp. Page 19 of 22

FOR IMMEDIATE RELEASE	May 4, 2016
	Contact: Susan Jordan
	732-577-9996

MONMOUTH REAL ESTATE INVESTMENT CORPORATION REPORTS RESULTS FOR

THE SECOND QUARTER ENDED MARCH 31, 2016

FREEHOLD, NJ, May 4, 2016........ Monmouth Real Estate Investment Corporation (NYSE:MNR) reported Core Funds from Operations (Core FFO) of $11,514,000 or $0.18 per diluted share for the three months ended March 31, 2016 as compared to $8,418,000 or $0.14 per diluted share for the three months ended March 31, 2015 representing an increase in Core FFO per share of 28.6%. Adjusted Funds from Operations (AFFO), for the three months ended March 31, 2016 was $10,745,000 or $0.17 per diluted share versus $8,138,000 or $0.14 per diluted share for the three months ended March 31, 2015 representing an increase in AFFO per share of 21.4%.

A summary of significant financial information for the three and six months ended March 31, 2016 and 2015 is as follows:

	Three Months Ended March 31,
	2016		2015
Rental Revenue	$	19,611,000	$	16,206,000
Reimbursement Revenue	$	3,356,000	$	2,653,000
Net Operating Income (NOI) (1)	$	19,188,000	$	15,908,000
Total Expenses	$	12,538,000	$	10,306,000
Interest and Dividend Income	$	1,380,000	$	963,000
Gain on Sale of Securities Transactions, net	$	879,000	$	-0-
Net Income	$	7,132,000	$	4,819,000
Net Income Attributable to Common Shareholders	$	4,980,000	$	2,667,000
Net Income Attributable to Common Shareholders Per Diluted Common Share	$	0.08	$	0.04
Core FFO (1)	$	11,514,000	$	8,418,000
Core FFO per Diluted Common Share (1)	$	0.18	$	0.14
AFFO (1)	$	10,745,000	$	8,138,000
AFFO per Diluted Common Share (1)	$	0.17	$	0.14
Weighted Avg. Diluted Common Shares Outstanding		64,736,000		58,463,000

	Six Months Ended March 31,
	2016		2015
Rental Revenue	$	38,676,000	$	31,636,000
Reimbursement Revenue	$	6,550,000	$	4,900,000
Lease Termination Income	$	-0-	$	239,000
Net Operating Income (NOI) (1)	$	37,844,000	$	30,594,000
Total Expenses	$	23,705,000	$	19,889,000
Interest and Dividend Income	$	2,564,000	$	1,998,000
Gain on Sale of Securities Transactions, net	$	887,000	$	377,000
Net Income	$	14,071,000	$	10,242,000
Net Income Attributable to Common Shareholders	$	9,767,000	$	5,939,000
Net Income Attributable to Common Shareholders Per Diluted Common Share	$	0.15	$	0.10
Core FFO (1)	$	22,526,000	$	17,052,000
Core FFO per Diluted Common Share (1)	$	0.35	$	0.29
AFFO (1)	$	21,470,000	$	15,933,000
AFFO per Diluted Common Share (1)	$	0.34	$	0.28
Weighted Avg. Diluted Common Shares Outstanding		63,828,000		57,937,000

A summary of significant balance sheet information as of March 31, 2016 and September 30, 2015 is as follows:

	March 31, 2016		September 30, 2015
Net Real Estate Investments	$	883,004,000	$	816,801,000
Securities Available for Sale at Fair Value	$	68,647,000	$	54,541,000
Total Assets	$	999,655,000	$	915,992,000
Mortgage Notes Payable	$	406,426,000	$	373,991,000
Loans Payable	$	99,917,000	$	85,041,000
Total Shareholders’ Equity	$	476,806,000	$	446,011,000

Second Quarter FY 2016 Supplemental of Monmouth Real Estate Investment Corp. Page 20 of 22

Michael P. Landy, President and CEO, commented on the results for the second quarter of fiscal 2016,

“Fiscal 2016 is shaping up to be another outstanding year for Monmouth. Our strong performance has continued through this most recent quarter. During the quarter we:

●  Increased our occupancy rate 210 basis points over the prior year period and 80 basis points sequentially, to a sector leading 99.6%.

● Increased our AFFO per share to $0.17, representing a 21% increase over the prior year period.

● Increased our Net Operating Income (NOI) 21% over the prior year period.

● Increased our Same Property NOI 2.3% on a GAAP basis and 3.5% on a cash basis over the prior year period.

● Acquired for $20.0 million a brand new Class A built-to-suit property with 126,000 square feet leased for 10 years to General Electric Company. This mission critical facility is located near the Pittsburgh International Airport.

● Grew our acquisition pipeline to seven new Class A build-to-suit properties, representing 1.9 million square feet, for a total purchase price of approximately $197.9 million. These properties are all net-leased to investment grade tenants or their subsidiaries. These acquisitions are expected to generate annualized rental revenue of approximately $13.2 million and will benefit from an average lease term of approximately 13.5 years. Subject to satisfactory due diligence, we anticipate closing these transactions upon completion of construction and occupancy over the next several quarters.

● Increased our expansion pipeline to 312,000 square feet at a cost of approximately $18.4 million. Upon completion, the expansions will result in a new ten year lease extension for three buildings and a new twelve year lease extension for one building being expanded. These expansions will result in increased annualized rent of approximately $1.8 million.

● Increased our gross leasable area (GLA) 12.3% to 14.6 million square feet over the prior year period. Our GLA is expected to grow to 17.0 million square feet upon the completion of the above acquisitions and expansions.

● Achieved a 100% tenant retention rate for fiscal 2016. This marks our second consecutive year of 100% tenant retention. The fiscal 2016 lease renewals resulted in a 5.3% increase in rents on a GAAP basis and represent a weighted average lease term of 4.1 years.

● Allocated capital opportunistically into discounted REIT securities resulting in an unrealized gain of $2.1 million at quarter end in addition to the $879,000 in gains realized during the quarter and the $1.4 million in dividend income these securities generated during the quarter.

● Subsequent to quarter end, we acquired for $30.7 million a brand new Class A built-to-suit property with 210,000 square feet leased for 15 years to FedEx Ground located in the Seattle/Everett MSA. This facility is located in close proximity to Boeing’s large manufacturing plant in Everett, WA.”

Mr. Landy stated, “This marks our fourth consecutive quarter of generating over 20% AFFO per share growth. The high quality of Monmouth’s portfolio is best illustrated by our industrial sector leading occupancy rate of 99.6%, as well as the 100% tenant retention rate we have achieved for the second consecutive year now. With e-commerce sales growing five times faster than overall retail sales, demand for modern industrial space is expected to remain strong.”

“The hard working team at Monmouth remains very focused on continuing to deliver positive long-term results. We look forward to building upon the substantial growth that has been achieved thus far.”

Monmouth Real Estate Investment Corporation will host its Second Quarter FY 2016 Financial Results Webcast and Conference Call on Thursday, May 5, 2016 at 10:00 a.m. Eastern Time. Senior management will discuss the results, current market conditions and future outlook.

The Company’s Second Quarter FY 2016 financial results being released herein will be available on the Company’s website at www.mreic.reit 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.reit. Interested parties can also participate via conference call by calling toll free 877-510-5852 (domestically) or 412-902-4138 (internationally).

The replay of the conference call will be available at 12:00 p.m. Eastern Time on Thursday, May 5, 2016. It will be available until July 30, 2016, and can be accessed by dialing toll free 877-344-7529 (domestically) and 412-317-0088 (internationally) and entering the passcode 10080985. A transcript of the call and the webcast replay will be available at the Company’s website, www.mreic.reit.

Monmouth Real Estate Investment Corporation, founded in 1968 is one of the oldest public equity REITs in the U.S. The Company specializes in single-tenant, net-leased industrial properties, subject to long-term leases, primarily to investment grade tenants. Monmouth Real Estate Investment Corporation is a fully-integrated and self-managed real estate company, whose property portfolio consists of ninety-five properties located in thirty states, containing a total of approximately 14.8 million rentable square feet. In addition, the Company owns a portfolio of REIT securities.

Second Quarter FY 2016 Supplemental of Monmouth Real Estate Investment Corp. Page 21 of 22

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-U.S. 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, depreciation of corporate office tenant improvements, amortization of deferred financing costs, non-recurring other expense, U.S. GAAP straight-line rent adjustments and less recurring capital expenditures. We define recurring capital expenditures as all capital expenditures, excluding capital expenditures related to expansions at our current locations or capital expenditures that are incurred in conjunction with obtaining a new lease or a lease renewal. 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 following is a reconciliation of the Company’s U.S. GAAP Net Income to the Company’s FFO, Core FFO and AFFO for the three and six months ended March 31, 2016 and 2015:

	Three Months Ended						Six Months Ended
	3/31/2016			3/31/2015			3/31/2016			3/31/2015
Net Income Attributable to Common Shareholders	$	4,980,000		$	2,667,000		$	9,767,000		$	5,939,000
Plus: Depreciation Expense (excluding Corporate Office)		5,757,000			4,752,000			11,324,000			9,237,000
Plus: Amortization of Intangible Assets		320,000			364,000			643,000			711,000
Plus: Amortization of Capitalized Lease Costs		192,000			164,000			381,000			303,000
FFO Attributable to Common Shareholders		11,249,000			7,947,000			22,115,000			16,190,000
Plus: Acquisition Costs		265,000			471,000			411,000			862,000
Core FFO Attributable to Common Shareholders		11,514,000			8,418,000			22,526,000			17,052,000
Plus: Stock Compensation Expense		102,000			97,000			207,000			187,000
Plus: Depreciation of Corporate Office Tenant Improvements		29,000			34,000			57,000			34,000
Plus: Amortization of Financing Costs		239,000			203,000			473,000			396,000
Plus: Non-recurring other expense		400,000			-0-			400,000			-0-
Less: Lease Termination Income		-0-			-0-			-0-			(239,000	)
Less: Gain on Sale of Securities Transactions, net		(879,000	)		-0-			(887,000	)		(377,000	)
Less: U.S. GAAP Straight-line Rent Adjustment		(512,000	)		(532,000	)		(822,000	)		(864,000	)
Less: Recurring Capital Expenditures		(148,000	)		(82,000	)		(484,000	)		(256,000	)
AFFO Attributable to Common Shareholders	$	10,745,000		$	8,138,000		$	21,470,000		$	15,933,000

The following are the Cash Flows provided (used) by Operating, Investing and Financing Activities for the six months ended March 31, 2016 and 2015:

	Six Months Ended
		3/31/2016			3/31/2015
Operating Activities	$	28,428,000		$	17,854,000
Investing Activities		(86,279,000	)		(109,555,000	)
Financing Activities		55,711,000			96,728,000

# # # # #

Second Quarter FY 2016 Supplemental of Monmouth Real Estate Investment Corp. Page 22 of 22