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) August 3, 2016
MONMOUTH REAL ESTATE INVESTMENT CORPORATION
(Exact name of Registrant as specified in its charter)
MARYLAND | 001-33177 | 22-1897375 | ||
(State or other jurisdiction of incorporation) |
(Commission File Number) |
(IRS Employer 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 August 3, 2016, Monmouth Real Estate Investment Corporation issued a press release announcing the results for the third quarter ended June 30, 2016 and disclosed a supplemental information package in connection with its earnings conference call for the third quarter ended June 30, 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 third quarter ended June 30, 2016 and press release dated August 3, 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 August 3, 2016
4 |
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 August 3, 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 | ||||||||
June 30, 2016 | September 30, 2015 | |||||||
(unaudited) | ||||||||
ASSETS | ||||||||
Real Estate Investments: | ||||||||
Land | $ | 156,625,315 | $ | 134,160,315 | ||||
Buildings and Improvements | 941,092,442 | 806,849,590 | ||||||
Total Real Estate Investments | 1,097,717,757 | 941,009,905 | ||||||
Accumulated Depreciation | (142,289,055 | ) | (124,898,639 | ) | ||||
Net Real Estate Investments | 955,428,702 | 816,111,266 | ||||||
Cash and Cash Equivalents | 6,886,958 | 12,073,909 | ||||||
Securities Available for Sale at Fair Value | 82,638,519 | 54,541,237 | ||||||
Tenant and Other Receivables | 1,577,575 | 783,052 | ||||||
Deferred Rent Receivable | 5,723,224 | 5,205,295 | ||||||
Prepaid Expenses | 5,791,407 | 3,931,616 | ||||||
Financing Costs, net of Accumulated Amortization of $3,960,515 and $3,247,014, respectively | 6,478,617 | 5,987,911 | ||||||
Capitalized Lease Costs, net of Accumulated Amortization of $3,114,165 and $2,534,521, respectively | 4,184,633 | 3,407,432 | ||||||
Intangible Assets, net of Accumulated Amortization of $12,069,062 and $11,153,855, respectively | 6,079,691 | 6,115,134 | ||||||
Other Assets | 8,244,478 | 7,835,090 | ||||||
TOTAL ASSETS | $ | 1,083,033,804 | $ | 915,991,942 | ||||
LIABILITIES AND SHAREHOLDERS’ EQUITY | ||||||||
Liabilities: | ||||||||
Mortgage Notes Payable | $ | 440,352,826 | $ | 373,991,174 | ||||
Loans Payable | 125,854,169 | 85,041,386 | ||||||
Accounts Payable and Accrued Expenses | 5,633,583 | 3,113,274 | ||||||
Other Liabilities | 9,942,426 | 7,835,468 | ||||||
Total Liabilities | 581,783,004 | 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 June 30, 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 June 30, 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 June 30, 2016 and September 30, 2015; 67,228,175 and 62,123,454 Shares Issued and Outstanding as of June 30, 2016 and September 30, 2015, respectively | 672,282 | 621,235 | ||||||
Excess Stock – $0.01 Par Value Per Share: 200,000,000 Shares Authorized as of June 30, 2016 and September 30, 2015; No Shares Issued or Outstanding as of June 30, 2016 and September 30, 2015 | -0- | -0- | ||||||
Additional Paid-In Capital | 377,695,791 | 339,837,258 | ||||||
Accumulated Other Comprehensive Income (Loss) | 11,888,977 | (5,441,603 | ) | |||||
Undistributed Income | -0- | -0- | ||||||
Total Shareholders’ Equity | 501,250,800 | 446,010,640 | ||||||
TOTAL LIABILITIES & SHAREHOLDERS’ EQUITY | $ | 1,083,033,804 | $ | 915,991,942 |
Third Quarter FY 2016 Supplemental of Monmouth Real Estate Investment Corp. Page 3 of 22 |
Consolidated Statements of Income | ||||||||||||||||
(unaudited) | ||||||||||||||||
Three Months Ended | Nine Months Ended | |||||||||||||||
6/30/2016 | 6/30/2015 | 6/30/2016 | 6/30/2015 | |||||||||||||
INCOME: | ||||||||||||||||
Rental Revenue | $ | 20,789,914 | $ | 17,256,131 | $ | 59,465,701 | $ | 48,891,870 | ||||||||
Reimbursement Revenue | 3,324,085 | 3,416,151 | 9,874,498 | 8,316,538 | ||||||||||||
Lease Termination Income | -0- | -0- | -0- | 238,625 | ||||||||||||
TOTAL INCOME | 24,113,999 | 20,672,282 | 69,340,199 | 57,447,033 | ||||||||||||
EXPENSES: | ||||||||||||||||
Real Estate Taxes | 2,633,706 | 2,629,105 | 7,681,519 | 6,569,299 | ||||||||||||
Operating Expenses | 981,766 | 1,083,276 | 3,316,489 | 3,085,138 | ||||||||||||
General & Administrative Expenses | 1,542,432 | 1,606,503 | 5,099,841 | 4,414,813 | ||||||||||||
Acquisition Costs | 135,358 | 440,705 | 545,955 | 1,303,389 | ||||||||||||
Depreciation | 6,096,880 | 5,099,045 | 17,478,374 | 14,369,261 | ||||||||||||
Amortization of Capitalized Lease Costs and Intangible Assets | 445,404 | 492,468 | 1,418,375 | 1,497,783 | ||||||||||||
TOTAL EXPENSES | 11,835,546 | 11,351,102 | 35,540,553 | 31,239,683 | ||||||||||||
OTHER INCOME (EXPENSE): | ||||||||||||||||
Dividend and Interest Income | 1,486,134 | 872,778 | 4,050,455 | 2,871,183 | ||||||||||||
Gain on Sale of Securities Transactions, net | 272,067 | -0- | 1,159,409 | 377,087 | ||||||||||||
Interest Expense | (5,564,896 | ) | (4,805,681 | ) | (15,994,112 | ) | (13,429,179 | ) | ||||||||
Amortization of Financing Costs | (240,463 | ) | (212,419 | ) | (713,501 | ) | (608,251 | ) | ||||||||
TOTAL OTHER INCOME (EXPENSE) | (4,047,158 | ) | (4,145,322 | ) | (11,497,749 | ) | (10,789,160 | ) | ||||||||
NET INCOME | 8,231,295 | 5,175,858 | 22,301,897 | 15,418,190 | ||||||||||||
Less: Preferred Dividends | 2,151,758 | 2,151,758 | 6,455,274 | 6,455,274 | ||||||||||||
NET INCOME ATTRIBUTABLE TO COMMON SHAREHOLDERS | $ | 6,079,537 | $ | 3,024,100 | $ | 15,846,623 | $ | 8,962,916 |
Third 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 | Nine Months Ended | |||||||||||||||
6/30/2016 | 6/30/2015 | 6/30/2016 | 6/30/2015 | |||||||||||||
Revenues | ||||||||||||||||
Rental Revenue | $ | 20,789,914 | $ | 17,256,131 | $ | 59,465,701 | $ | 48,891,870 | ||||||||
Reimbursement Revenue | 3,324,085 | 3,416,151 | 9,874,498 | 8,316,538 | ||||||||||||
Total Rental and Reimbursement Revenue | 24,113,999 | 20,672,282 | 69,340,199 | 57,208,408 | ||||||||||||
Expenses | ||||||||||||||||
Real Estate Taxes | 2,633,706 | 2,629,105 | 7,681,519 | 6,569,299 | ||||||||||||
Operating Expenses | 981,766 | 1,083,276 | 3,316,489 | 3,085,138 | ||||||||||||
Total Expenses | 3,615,472 | 3,712,381 | 10,998,008 | 9,654,437 | ||||||||||||
Net Operating Income - NOI | 20,498,527 | 16,959,901 | 58,342,191 | 47,553,971 | ||||||||||||
Lease Termination Income | -0- | -0- | -0- | 238,625 | ||||||||||||
Dividend and Interest Income | 1,486,134 | 872,778 | 4,050,455 | 2,871,183 | ||||||||||||
Net Amortization of Acquired Above and Below Market Lease Revenue | 25,492 | 25,492 | 76,476 | 34,259 | ||||||||||||
General & Administrative Expenses | (1,542,432 | ) | (1,606,503 | ) | (5,099,841 | ) | (4,414,813 | ) | ||||||||
EBITDA | 20,467,721 | 16,251,668 | 57,369,281 | 46,283,225 | ||||||||||||
Interest Expense | (5,564,896 | ) | (4,805,681 | ) | (15,994,112 | ) | (13,429,179 | ) | ||||||||
Gain on Sale of Securities Transactions, net | 272,067 | -0- | 1,159,409 | 377,087 | ||||||||||||
Acquisition Costs | (135,358 | ) | (440,705 | ) | (545,955 | ) | (1,303,389 | ) | ||||||||
Preferred Dividends | (2,151,758 | ) | (2,151,758 | ) | (6,455,274 | ) | (6,455,274 | ) | ||||||||
Depreciation of Corporate Office Tenant Improvements | (30,868 | ) | (37,899 | ) | (87,957 | ) | (71,410 | ) | ||||||||
Amortization of Financing Costs | (240,463 | ) | (212,419 | ) | (713,501 | ) | (608,251 | ) | ||||||||
Funds From Operations – FFO | 12,616,445 | 8,603,206 | 34,731,891 | 24,792,809 | ||||||||||||
Depreciation (excluding corporate office) | (6,066,012 | ) | (5,061,146 | ) | (17,390,417 | ) | (14,297,851 | ) | ||||||||
Amortization of Capitalized Lease Costs and Intangible Assets | (470,896 | ) | (517,960 | ) | (1,494,851 | ) | (1,532,042 | ) | ||||||||
Net Income Attributable to Common Shareholders | 6,079,537 | 3,024,100 | 15,846,623 | 8,962,916 | ||||||||||||
Funds From Operations – FFO | 12,616,445 | 8,603,206 | 34,731,891 | 24,792,809 | ||||||||||||
Acquisition Costs | 135,358 | 440,705 | 545,955 | 1,303,389 | ||||||||||||
Core Funds From Operations - Core FFO | 12,751,803 | 9,043,911 | 35,277,846 | 26,096,198 | ||||||||||||
Stock Compensation Expense | 99,760 | 96,673 | 306,688 | 283,578 | ||||||||||||
Depreciation of Corporate Office Tenant Improvements | 30,868 | 37,899 | 87,957 | 71,410 | ||||||||||||
Amortization of Financing Costs | 240,463 | 212,419 | 713,501 | 608,251 | ||||||||||||
Non-recurring other expense (1) | 100,000 | -0- | 500,000 | -0- | ||||||||||||
Lease Termination Income | -0- | -0- | -0- | (238,625 | ) | |||||||||||
Gain on Sale of Securities Transactions, net | (272,067 | ) | -0- | (1,159,409 | ) | (377,087 | ) | |||||||||
U.S. GAAP Straight-lined Rent Adjustment | (350,217 | ) | (300,506 | ) | (1,172,053 | ) | (1,164,132 | ) | ||||||||
Recurring Capital Expenditures | (169,492 | ) | (206,071 | ) | (653,544 | ) | (461,868 | ) | ||||||||
Adjusted Funds From Operations – AFFO | 12,431,118 | 8,884,325 | 33,900,986 | 24,817,725 | ||||||||||||
EBITDA | 20,467,721 | 16,251,668 | 57,369,281 | 46,283,225 | ||||||||||||
Stock Compensation Expense | 99,760 | 96,673 | 306,688 | 283,578 | ||||||||||||
Non-recurring other expense (1) | 100,000 | -0- | 500,000 | -0- | ||||||||||||
Lease Termination Income | -0- | -0- | -0- | (238,625 | ) | |||||||||||
U.S. GAAP Straight-lined Rent Adjustment | (350,217 | ) | (300,506 | ) | (1,172,053 | ) | (1,164,132 | ) | ||||||||
Recurring Capital Expenditures | (169,492 | ) | (206,071 | ) | (653,544 | ) | (461,868 | ) | ||||||||
Interest Expense | (5,564,896 | ) | (4,805,681 | ) | (15,994,112 | ) | (13,429,179 | ) | ||||||||
Preferred Dividends | (2,151,758 | ) | (2,151,758 | ) | (6,455,274 | ) | (6,455,274 | ) | ||||||||
Adjusted Funds From Operations – AFFO | $ | 12,431,118 | $ | 8,884,325 | $ | 33,900,986 | $ | 24,817,725 |
(1) | Consists of one-time payroll expenditures. |
Third Quarter FY 2016 Supplemental of Monmouth Real Estate Investment Corp. Page 5 of 22 |
Financial Highlights | ||||||||||||||||
(unaudited) | ||||||||||||||||
Three Months Ended | Nine Months Ended | |||||||||||||||
6/30/2016 | 6/30/2015 | 6/30/2016 | 6/30/2015 | |||||||||||||
Weighted Average Common Shares Outstanding | ||||||||||||||||
Basic | 66,337,101 | 59,539,781 | 64,613,953 | 58,375,573 | ||||||||||||
Diluted | 66,462,209 | 59,637,749 | 64,703,203 | 58,503,574 | ||||||||||||
Net Operating Income – NOI | $ | 20,498,527 | $ | 16,959,901 | $ | 58,342,191 | $ | 47,553,971 | ||||||||
Basic | $ | 0.31 | $ | 0.28 | $ | 0.90 | $ | 0.81 | ||||||||
Diluted | 0.31 | 0.28 | 0.90 | 0.81 | ||||||||||||
Net Income Attributable to Common Shareholders | $ | 6,079,537 | $ | 3,024,100 | $ | 15,846,623 | $ | 8,962,916 | ||||||||
Basic | $ | 0.09 | $ | 0.05 | $ | 0.25 | $ | 0.15 | ||||||||
Diluted | 0.09 | 0.05 | 0.24 | 0.15 | ||||||||||||
Funds From Operations – FFO | $ | 12,616,445 | $ | 8,603,206 | $ | 34,731,891 | $ | 24,792,809 | ||||||||
Basic | $ | 0.19 | $ | 0.14 | $ | 0.54 | $ | 0.42 | ||||||||
Diluted | 0.19 | 0.14 | 0.54 | 0.42 | ||||||||||||
Core Funds From Operations - Core FFO | $ | 12,751,803 | $ | 9,043,911 | $ | 35,277,846 | $ | 26,096,198 | ||||||||
Basic | $ | 0.19 | $ | 0.15 | $ | 0.55 | $ | 0.45 | ||||||||
Diluted | 0.19 | 0.15 | 0.55 | 0.45 | ||||||||||||
Core FFO Excluding Gains on Securities Transactions and Lease Termination Income, net | $ | 12,479,736 | $ | 9,043,911 | $ | 34,118,437 | $ | 25,480,486 | ||||||||
Basic | $ | 0.19 | $ | 0.15 | $ | 0.53 | $ | 0.44 | ||||||||
Diluted | 0.19 | 0.15 | 0.53 | 0.44 | ||||||||||||
Adjusted Funds From Operations - AFFO | $ | 12,431,118 | $ | 8,884,325 | $ | 33,900,986 | $ | 24,817,725 | ||||||||
Basic | $ | 0.19 | $ | 0.15 | $ | 0.52 | $ | 0.43 | ||||||||
Diluted | 0.19 | 0.15 | 0.52 | 0.42 | ||||||||||||
Dividends Declared per Common Share | $ | 0.16 | $ | 0.15 | $ | 0.48 | $ | 0.45 |
Third Quarter FY 2016 Supplemental of Monmouth Real Estate Investment Corp. Page 6 of 22 |
Same Property Statistics
Three Months Ended | ||||||||||||||||||
6/30/2016 | 6/30/2015 | Change | Change % | |||||||||||||||
Total Square Feet / Total Properties | 15,124,162/97 | 13,623,971/90 | 1,500,191 | 11.0% | ||||||||||||||
Occupancy Percentage at Quarter End | 99.6 | % | 97.6 | % | 200 bps | 2.0% | ||||||||||||
Same Property Square Feet / Number of Same Properties | 12,425,962/85 | |||||||||||||||||
Same Property Occupancy Percentage at Quarter End | 99.5 | % | 97.4 | % | 210 bps | 2.2% | ||||||||||||
Same Property Net Operating Income (NOI) (GAAP) | $ | 16,207,562 | $ | 15,826,021 | $ | 381,541 | 2.4% | |||||||||||
Reversal of U.S. GAAP Straight-Line Rent Adjustment | (241,533 | ) | (280,051 | ) | 38,518 | |||||||||||||
Same Property Cash NOI (Cash) | $ | 15,966,029 | $ | 15,545,970 | $ | 420,059 | 2.7% |
Same Property Statistics include all properties owned during the entire periods presented with the exclusion of properties expanded during these periods.
The 2.4% increase, amounting to $381,541 in Same Property NOI (GAAP), consists of 53% or $201,047 generated by increased NOI from occupied properties and the remaining 47% or $180,494 attributable to increased NOI from filling previously vacant properties.
The 2.7% increase, amounting to $420,059 in Same Property Cash NOI, consists of 81% or $341,065 generated by increased NOI from occupied properties and the remaining 19% or $78,994 attributable to increased NOI from filling previously vacant properties.
Reconciliation of Same Property NOI to Total NOI | Three Months Ended | |||||||||||||||
6/30/2016 | 6/30/2015 | Change | Change % | |||||||||||||
Same Property NOI (GAAP) | $ | 16,207,562 | $ | 15,826,021 | $ | 381,541 | 2.4 | % | ||||||||
NOI of properties purchased subsequent to April 1, 2015 (nine properties for fiscal 2016 and one properties for fiscal 2015) | 3,430,459 | 402,885 | ||||||||||||||
NOI of properties expanded subsequent to April 1, 2015 (three properties for fiscal 2016 and 2015) | 860,506 | 597,261 | ||||||||||||||
NOI of property sold subsequent to April 1, 2015 (one property for fiscal 2015) | -0- | 133,734 | ||||||||||||||
Total NOI | $ | 20,498,527 | $ | 16,959,901 | $ | 3,538,626 | 20.9 | % |
Third Quarter FY 2016 Supplemental of Monmouth Real Estate Investment Corp. Page 7 of 22 |
Same Property Statistics
Nine Months Ended | ||||||||||||||||||
6/30/2016 | 6/30/2015 | Change | Change % | |||||||||||||||
Total Square Feet / Total Properties | 15,124,162/97 | 13,623,971/90 | 1,500,191 | 11.0% | ||||||||||||||
Occupancy Percentage at Quarter End | 99.6 | % | 97.6 | % | 200 bps | 2.0% | ||||||||||||
Same Property Square Feet / Number of Same Properties | 10,481,284/77 | |||||||||||||||||
Same Property Occupancy Percentage at Quarter End | 99.4 | % | 96.9 | % | 250 bps | 2.6% | ||||||||||||
Same Property Net Operating Income (NOI) (GAAP) | $ | 41,456,269 | $ | 40,187,908 | $ | 1,268,361 | 3.2% | |||||||||||
Reversal of U.S. GAAP Straight-Line Rent Adjustment | (634,800 | ) | (838,135 | ) | 203,335 | |||||||||||||
Same Property Cash NOI (Cash) | $ | 40,821,469 | $ | 39,349,773 | $ | 1,471,696 | 3.7% |
Same Property Statistics include all properties owned during the entire periods presented with the exclusion of properties expanded during these periods.
The 3.2% increase, amounting to $1,268,361 in Same Property NOI (GAAP), consists of 31% or $390,708 derived from increased NOI from occupied properties and the remaining 69% or $877,653 attributable to increased NOI from filling previously vacant properties.
The 3.7% increase, amounting to $1,471,696 in Same Property Cash NOI, consists of 52% or $763,730 derived from increased NOI from occupied properties and the remaining 48% or $707,966 attributable to increased NOI from filling previously vacant properties.
Reconciliation of Same Property NOI to Total NOI | Nine Months Ended | |||||||||||||||
6/30/2016 | 6/30/2015 | Change | Change % | |||||||||||||
Same Property NOI (GAAP) | $ | 41,456,269 | $ | 40,187,908 | $ | 1,268,361 | 3.2 | % | ||||||||
NOI of properties purchased subsequent to October 1, 2014 (sixteen properties for fiscal 2016 and eight properties for fiscal 2015) | 13,581,849 | 4,540,212 | ||||||||||||||
NOI of properties expanded subsequent to October 1, 2014 (four properties for fiscal 2016 and 2015) | 3,304,073 | 2,428,309 | ||||||||||||||
NOI of property sold subsequent to October 1, 2014 (one property for fiscal 2015) | -0- | 397,542 | ||||||||||||||
Total NOI | $ | 58,342,191 | $ | 47,553,971 | $ | 10,788,220 | 22.7 | % |
Third Quarter FY 2016 Supplemental of Monmouth Real Estate Investment Corp. Page 8 of 22 |
Consolidated Statements of Cash Flows | ||||||||
(unaudited) | ||||||||
Nine Months Ended | ||||||||
6/30/2016 | 6/30/2015 | |||||||
CASH FLOWS FROM OPERATING ACTIVITIES | ||||||||
Net Income | $ | 22,301,897 | $ | 15,418,190 | ||||
Noncash Items Included in Net Income: | ||||||||
Depreciation & Amortization | 19,610,250 | 16,475,295 | ||||||
Stock Based Compensation Expense | 306,688 | 283,578 | ||||||
Gain on Sale of Securities Transactions, net | (1,159,409 | ) | (377,087 | ) | ||||
Changes In: | ||||||||
Tenant, Deferred Rent and Other Receivables | (1,235,976 | ) | (503,725 | ) | ||||
Prepaid Expenses | (1,859,791 | ) | (1,870,448 | ) | ||||
Other Assets and Capitalized Lease Costs | (2,293,188 | ) | (1,422,882 | ) | ||||
Accounts Payable, Accrued Expenses and Other Liabilities | 7,676,175 | 279,066 | ||||||
NET CASH PROVIDED BY OPERATING ACTIVITIES | 43,346,646 | 28,281,987 | ||||||
CASH FLOWS FROM INVESTING ACTIVITIES | ||||||||
Purchase of Real Estate and Intangible Assets | (141,230,341 | ) | (150,086,653 | ) | ||||
Capital and Land Site Improvements | (19,517,185 | ) | (9,545,564 | ) | ||||
Return of Deposits on Real Estate | 1,650,000 | 2,500,000 | ||||||
Deposits Paid on Acquisitions of Real Estate | (1,100,000 | ) | (2,800,000 | ) | ||||
Proceeds from Sale of Securities Available for Sale | 8,165,701 | 9,584,723 | ||||||
Purchase of Securities Available for Sale | (17,772,994 | ) | (1,402,298 | ) | ||||
NET CASH USED IN INVESTING ACTIVITIES | (169,804,819 | ) | (151,749,792 | ) | ||||
CASH FLOWS FROM FINANCING ACTIVITIES | ||||||||
Net Proceeds from Loans Payable | 40,812,783 | 39,901,892 | ||||||
Proceeds from Mortgage Notes Payable | 92,971,000 | 97,473,058 | ||||||
Principal Payments on Mortgage Notes Payable | (26,609,348 | ) | (20,202,810 | ) | ||||
Financing Costs Paid on Debt | (1,204,207 | ) | (1,633,609 | ) | ||||
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 | 45,132,315 | 27,402,004 | ||||||
Preferred Dividends Paid | (6,455,274 | ) | (6,455,274 | ) | ||||
Common Dividends Paid, net of Reinvestments | (24,788,097 | ) | (20,052,747 | ) | ||||
NET CASH PROVIDED BY FINANCING ACTIVITIES | 121,271,222 | 117,044,923 | ||||||
NET DECREASE IN CASH AND CASH EQUIVALENTS | (5,186,951 | ) | (6,422,882 | ) | ||||
CASH AND CASH EQUIVALENTS - BEGINNING OF PERIOD | 12,073,909 | 20,474,661 | ||||||
CASH AND CASH EQUIVALENTS - END OF PERIOD | $ | 6,886,958 | $ | 14,051,779 |
Third Quarter FY 2016 Supplemental of Monmouth Real Estate Investment Corp. Page 9 of 22 |
Capital Structure and Leverage Ratios | As of | As of | As of | |||||||||
(unaudited) | 6/30/2016 | 6/30/2015 | 9/30/2015 | |||||||||
Mortgage Notes Payable | $ | 440,352,826 | $ | 365,066,254 | $ | 373,991,174 | ||||||
Loans Payable | 125,854,169 | 65,101,892 | 85,041,386 | |||||||||
Total Debt | 566,206,995 | 430,168,146 | 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 | 390,257,050 | 324,194,026 | 335,016,890 | |||||||||
Total Shareholders’ Equity | 501,250,800 | 435,187,776 | 446,010,640 | |||||||||
Total Book Capitalization | 1,067,457,795 | 865,355,922 | 905,043,200 | |||||||||
Accumulated Depreciation | 142,289,055 | 121,302,035 | 124,898,639 | |||||||||
Total Undepreciated Book Capitalization | $ | 1,209,746,850 | $ | 986,657,957 | $ | 1,029,941,839 | ||||||
Shares Outstanding | 67,228,175 | 60,434,435 | 62,123,454 | |||||||||
Market Price Per Share | $ | 13.26 | $ | 9.72 | $ | 9.75 | ||||||
Equity Market Capitalization | $ | 891,445,601 | $ | 587,422,708 | $ | 605,703,677 | ||||||
Total Debt | 566,206,995 | 430,168,146 | 459,032,560 | |||||||||
Preferred | 110,993,750 | 110,993,750 | 110,993,750 | |||||||||
Total Market Capitalization | $ | 1,568,646,346 | $ | 1,128,584,604 | $ | 1,175,729,987 | ||||||
Total Debt | $ | 566,206,995 | $ | 430,168,146 | $ | 459,032,560 | ||||||
less: Cash and Cash Equivalents | 6,886,958 | 14,051,779 | 12,073,909 | |||||||||
Net Debt | $ | 559,320,037 | $ | 416,116,367 | $ | 446,958,651 | ||||||
less: Securities Available for Sale at Fair Value (Securities) | 82,638,519 | 48,854,600 | 54,541,237 | |||||||||
Net Debt Less Securities | $ | 476,681,518 | $ | 367,261,767 | $ | 392,417,414 | ||||||
Net Debt / Undepreciated Book Capitalization | 46.2 | % | 42.2 | % | 43.4 | % | ||||||
Net Debt / Total Market Capitalization | 35.7 | % | 36.9 | % | 38.0 | % | ||||||
Net Debt Plus Preferred / Total Market Capitalization | 42.7 | % | 46.7 | % | 47.5 | % | ||||||
Net Debt Less Securities / Undepreciated Book Capitalization | 39.4 | % | 37.2 | % | 38.1 | % | ||||||
Net Debt Less Securities / Total Market Capitalization | 30.4 | % | 32.5 | % | 33.4 | % | ||||||
Net Debt Less Securities Plus Preferred / Total Market Capitalization | 37.5 | % | 42.4 | % | 42.8 | % | ||||||
Weighted Average Interest Rate on Fixed Rate Debt | 4.61 | % | 4.97 | % | 4.85 | % |
Third Quarter FY 2016 Supplemental of Monmouth Real Estate Investment Corp. Page 10 of 22 |
Capital Structure and Leverage Ratios | Fiscal Year | |||||||||||||||||||
continued | Three Months Ended | Nine Months Ended | Ended | |||||||||||||||||
(unaudited) | 6/30/2016 | 6/30/2015 | 6/30/2016 | 6/30/2015 | 9/30/2015 | |||||||||||||||
Net Income | $ | 8,231,295 | $ | 5,175,858 | $ | 22,301,897 | $ | 15,418,190 | $ | 25,605,815 | ||||||||||
plus: Depreciation & Amortization | 6,782,747 | 5,803,932 | 19,610,250 | 16,475,295 | 23,058,744 | |||||||||||||||
plus: Interest Expense | 5,564,896 | 4,805,681 | 15,994,112 | 13,429,179 | 18,558,150 | |||||||||||||||
plus: Acquisition Costs | 135,358 | 440,705 | 545,955 | 1,303,389 | 1,546,088 | |||||||||||||||
plus: Net Amortization of Acquired Above and Below Market Lease Revenue | 25,492 | 25,492 | 76,476 | 34,259 | 59,750 | |||||||||||||||
less: Gain on Sale of Securities Transactions, net | (272,067 | ) | -0- | (1,159,409 | ) | (377,087 | ) | (805,513 | ) | |||||||||||
less: Gain on Sale of Real Estate Investment | -0- | -0- | -0- | -0- | (5,021,242 | ) | ||||||||||||||
EBITDA | $ | 20,467,721 | $ | 16,251,668 | $ | 57,369,281 | $ | 46,283,225 | $ | 63,001,792 | ||||||||||
Interest Expense | $ | 5,564,896 | $ | 4,805,681 | $ | 15,994,112 | $ | 13,429,179 | 18,558,150 | |||||||||||
Preferred Dividends Paid | 2,151,758 | 2,151,758 | 6,455,274 | 6,455,274 | 8,607,032 | |||||||||||||||
Total Fixed Charges | $ | 7,716,654 | $ | 6,957,439 | $ | 22,449,386 | $ | 19,884,453 | $ | 27,165,182 | ||||||||||
Interest Coverage | 3.7 x | 3.4 x | 3.6 x | 3.4 x | 3.4 x | |||||||||||||||
Fixed Charge Coverage | 2.7 x | 2.3 x | 2.6 x | 2.3 x | 2.3 x | |||||||||||||||
Net Debt | $ | 559,320,037 | $ | 416,116,367 | $ | 559,320,037 | $ | 416,116,367 | $ | 446,958,651 | ||||||||||
Net Debt Less Securities | 476,681,518 | 367,261,767 | 476,681,518 | 367,261,767 | 392,417,414 | |||||||||||||||
Annualized EBITDA | 81,870,884 | 65,006,672 | 76,492,375 | 61,710,966 | 63,001,792 | |||||||||||||||
Net Debt / EBITDA | 6.8 x | 6.4 x | 7.3 x | 6.7 x | 7.1 x | |||||||||||||||
Net Debt Less Securities / EBITDA | 5.8 x | 5.6 x | 6.2 x | 6.0 x | 6.2 x | |||||||||||||||
Net Debt + Preferred / EBITDA | 8.2 x | 8.1 x | 8.8 x | 8.5 x | 8.9 x | |||||||||||||||
Net Debt Less Securities + Preferred / EBITDA | 7.2 x | 7.4 x | 7.7 x | 7.7 x | 8.0 x |
Third Quarter FY 2016 Supplemental of Monmouth Real Estate Investment Corp. Page 11 of 22 |
Loans | % of | |||||||||||||||
Fiscal Year Ended | Mortgages | Payable | Total | Total | ||||||||||||
2016 | 10,487,116 | 63,515 | 10,550,631 | 1.9 | % | |||||||||||
2017 | 62,073,529 | 4,790,654 | 66,864,183 | 11.8 | % | |||||||||||
2018 | 41,395,220 | -0- | 41,395,220 | 7.3 | % | |||||||||||
2019 | 44,880,129 | 121,000,000 | 165,880,129 | 29.3 | % | |||||||||||
2020 | 26,121,367 | -0- | 26,121,367 | 4.6 | % | |||||||||||
Thereafter | 255,395,465 | -0- | 255,395,465 | 45.1 | % | |||||||||||
Total as of 6/30/2016 | $ | 440,352,826 | $ | 125,854,169 | $ | 566,206,995 | 100.0 | % | ||||||||
Weighted Average Interest Rate | 4.61 | % | 2.32 | % | 4.10 | % | ||||||||||
Weighted Average Term | 9.80 yrs | 3.11 yrs | 8.31 yrs |
Third 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 | Rent Per | Undepreciated | Mortgage | ||||||||||||||||||||||||||||||
Tenant | Count | Footage | Footage | Sq. Ft. | Rent | Ann. Rent | Sq. Ft. Occup. | Cost | Balance | |||||||||||||||||||||||||||||
FedEx Ground Package System, Inc. | (E) | 36 | 5,520,746 | 5,520,746 | 36.5 | % | $ | 40,141,000 | 47.1 | % | $ | 7.27 | $ | 525,196,472 | $ | 225,108,612 | ||||||||||||||||||||||
FedEx Corporation | 14 | 973,413 | 973,413 | 6.4 | % | 5,375,000 | 6.1 | % | 5.52 | $ | 71,818,894 | 16,188,566 | ||||||||||||||||||||||||||
FedEx Supply Chain Services, Inc. | 1 | 449,900 | 449,900 | 3.0 | % | 1,327,000 | 1.6 | % | 2.95 | $ | 14,620,887 | 6,858,741 | ||||||||||||||||||||||||||
Total FedEx | 51 | 6,944,059 | 6,944,059 | 45.9 | % | 46,843,000 | 54.8 | % | 6.75 | $ | 611,636,253 | 248,155,919 | ||||||||||||||||||||||||||
ULTA, Inc. | 1 | 671,354 | 671,354 | 4.4 | % | 2,651,000 | 3.1 | % | 3.95 | 37,484,574 | 23,071,621 | |||||||||||||||||||||||||||
Milwaukee Electric Tool Corporation | (D) | 1 | 615,305 | 615,305 | 4.1 | % | 2,012,000 | 2.4 | % | 3.27 | 36,429,983 | 13,450,427 | ||||||||||||||||||||||||||
Jim Beam Brands Company | 1 | 599,840 | 599,840 | 4.0 | % | 2,013,000 | 2.4 | % | 3.36 | 28,000,000 | 18,537,055 | |||||||||||||||||||||||||||
TreeHouse Private Brands, Inc. | 1 | 558,600 | 558,600 | 3.7 | % | 2,166,000 | 2.5 | % | 3.88 | 26,727,852 | 16,860,502 | |||||||||||||||||||||||||||
CBOCS Distribution, Inc. | 1 | 381,240 | 381,240 | 2.5 | % | 1,420,000 | 1.7 | % | 3.72 | 14,215,126 | 7,709,764 | |||||||||||||||||||||||||||
Best Buy Warehousing Logistics, Inc. | 1 | 368,060 | 368,060 | 2.4 | % | 1,641,000 | 1.9 | % | 4.46 | 19,600,000 | 10,580,760 | |||||||||||||||||||||||||||
The Coca-Cola Company/Western Container Corp. | 2 | 323,358 | 323,358 | 2.1 | % | 1,678,000 | 2.0 | % | 5.19 | 19,817,402 | 6,909,622 | |||||||||||||||||||||||||||
Science Applications International | 1 | 302,400 | 302,400 | 2.0 | % | 1,462,000 | 1.7 | % | 4.83 | 13,340,592 | 5,691,332 | |||||||||||||||||||||||||||
International Paper Company | 1 | 280,000 | 280,000 | 1.9 | % | 1,326,000 | 1.6 | % | 4.74 | 18,294,108 | 10,823,496 | |||||||||||||||||||||||||||
Woodstream Corporation | (C) | 1 | 256,000 | 256,000 | 1.7 | % | 896,000 | 1.1 | % | 3.50 | 8,823,781 | -0- | ||||||||||||||||||||||||||
United Technologies Corporation | 2 | 244,317 | 244,317 | 1.6 | % | 1,895,000 | 2.2 | % | 7.76 | 22,512,609 | 8,135,083 | |||||||||||||||||||||||||||
Anda Pharmaceuticals, Inc. | 1 | 234,660 | 234,660 | 1.6 | % | 1,196,000 | 1.4 | % | 5.10 | 14,550,000 | 8,890,808 | |||||||||||||||||||||||||||
UGN, Inc. | 1 | 232,200 | 232,200 | 1.5 | % | 1,050,000 | 1.2 | % | 4.52 | 12,937,000 | 8,185,260 | |||||||||||||||||||||||||||
Caterpillar Logistics Services, Inc. | 1 | 218,120 | 218,120 | 1.4 | % | 1,169,000 | 1.4 | % | 5.36 | 14,868,857 | 6,691,259 | |||||||||||||||||||||||||||
Anheuser-Busch, Inc. | 1 | 184,800 | 184,800 | 1.2 | % | 806,000 | 0.9 | % | 4.36 | 12,398,355 | -0- | |||||||||||||||||||||||||||
Carlisle Tire & Wheel Company | 1 | 179,280 | 179,280 | 1.2 | % | 787,000 | 0.9 | % | 4.39 | 7,225,401 | 525,219 | |||||||||||||||||||||||||||
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 | 1.1 | % | 978,000 | 1.1 | % | 5.71 | 11,298,367 | -0- | |||||||||||||||||||||||||||
Kellogg Sales Company | 3 | 170,279 | 170,279 | 1.1 | % | 982,000 | 1.2 | % | 5.77 | 12,159,973 | 2,277,544 | |||||||||||||||||||||||||||
Bunzl Distribution Midcentral, Inc. | 1 | 158,417 | 158,417 | 1.0 | % | 741,000 | 0.9 | % | 4.68 | 9,600,000 | 6,995,634 | |||||||||||||||||||||||||||
Victory Packaging, L.P. | 1 | 148,000 | 148,000 | 1.0 | % | 470,000 | 0.6 | % | 3.18 | 5,441,876 | -0- | |||||||||||||||||||||||||||
Challenger Lifts, Inc. (Snap-on Inc.) | 1 | 137,500 | 137,500 | 0.9 | % | 835,000 | 1.0 | % | 6.07 | 11,304,000 | 7,350,000 | |||||||||||||||||||||||||||
Altec Industries, Inc. | (C) | 1 | 126,880 | 126,880 | 0.8 | % | 349,000 | 0.4 | % | 2.75 | 4,373,287 | -0- | ||||||||||||||||||||||||||
General Electric Company | 1 | 125,860 | 125,860 | 0.8 | % | 1,311,000 | 1.5 | % | 10.42 | 19,950,000 | 12,880,838 | |||||||||||||||||||||||||||
The American Bottling Company | 2 | 110,080 | 110,080 | 0.7 | % | 734,000 | 0.9 | % | 6.67 | 10,498,031 | 1,963,717 | |||||||||||||||||||||||||||
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 | 0.6 | % | 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 | 3,229,264 | |||||||||||||||||||||||||||
Joseph T. Ryerson and Son, Inc. | 1 | 89,052 | 89,052 | 0.6 | % | 506,000 | 0.6 | % | 5.68 | 6,932,916 | 476,660 | |||||||||||||||||||||||||||
CHEP USA, Inc. | 1 | 83,000 | 83,000 | 0.5 | % | 494,000 | 0.6 | % | 5.95 | 7,405,447 | 2,595,657 | |||||||||||||||||||||||||||
Datatel Resources Corporation | (B) | 1 | 80,856 | 80,856 | 0.5 | % | 242,000 | 0.3 | % | 2.99 | 3,810,675 | -0- | ||||||||||||||||||||||||||
Sherwin-Williams Company | 2 | 78,887 | 78,887 | 0.5 | % | 637,000 | 0.7 | % | 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 | 3,811,385 | |||||||||||||||||||||||||||
Tampa Bay Grand Prix | 1 | 68,385 | 68,385 | 0.5 | % | 289,000 | 0.3 | % | 4.23 | 5,677,982 | -0- | |||||||||||||||||||||||||||
Various Tenants at Retail Shopping Center | 1 | 64,138 | 64,138 | 0.4 | % | 777,000 | 0.9 | % | 12.11 | 3,072,880 | -0- | |||||||||||||||||||||||||||
SOFIVE, Inc. | 1 | 60,400 | 60,400 | 0.4 | % | 537,000 | 0.6 | % | 8.89 | 4,903,589 | 1,935,659 | |||||||||||||||||||||||||||
Siemens Real Estate | 1 | 51,130 | 51,130 | 0.4 | % | 473,000 | 0.6 | % | 9.25 | 4,452,425 | 2,618,341 | |||||||||||||||||||||||||||
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 | 0.3 | % | 140,000 | 0.2 | % | 3.86 | 2,161,895 | -0- | |||||||||||||||||||||||||||
Graybar Electric Company | 1 | 26,340 | 26,340 | 0.3 | % | 109,000 | 0.1 | % | 4.14 | 1,850,795 | -0- | |||||||||||||||||||||||||||
Tenant Total as of 6/30/16 | 96 | 15,064,737 | 15,064,737 | 99.6 | % | $ | 85,278,000 | 100.0 | % | $ | 5.66 | $ | 1,092,549,566 | $ | 440,352,826 | |||||||||||||||||||||||
Vacant | 1 | 59,425 | -0- | 0.0 | % | -0- | 0.0 | % | -0- | 5,157,126 | -0- | |||||||||||||||||||||||||||
Total as of 6/30/16 | 97 | 15,124,162 | 15,064,737 | 99.6 | % | $ | 85,278,000 | 100.0 | % | $ | 5.66 | $ | 1,097,706,692 | (A) | $ | 440,352,826 |
(A) Does not include $11,065 of vacant land.
(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.
(D) Subsequent to quarter end, a 246,240 square foot building expansion was completed, bringing the total square footage to 861,545.
(E) Subsequent to quarter end, a 14,941 square foot expansion was completed at the Huntsville, AL location and a parking lot expansion was completed at the Tampa, FL location.
Third 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 | Rent Per | Undepreciated | Mortgage | ||||||||||||||||||||||||||||||
State | Count | Footage | Footage | Sq. Ft. | Rent | Ann. Rent | Sq. Ft. Occup. | Cost | Balance | |||||||||||||||||||||||||||||
Texas | 9 | 1,379,468 | 1,379,468 | 9.1 | % | $ | 10,474,000 | 12.3 | % | 7.59 | $ | 129,531,903 | $ | 59,069,815 | ||||||||||||||||||||||||
Kentucky | 3 | 1,295,940 | 1,295,940 | 8.6 | % | 5,014,000 | 5.9 | % | 3.87 | 66,031,852 | 42,747,557 | |||||||||||||||||||||||||||
Florida | 10 | 1,137,293 | 1,137,293 | 7.5 | % | 7,565,000 | 8.9 | % | 6.65 | 103,315,982 | 42,514,268 | |||||||||||||||||||||||||||
Ohio | 7 | 1,032,469 | 1,032,469 | 6.8 | % | 6,071,000 | 7.1 | % | 5.88 | 72,765,297 | 29,410,824 | |||||||||||||||||||||||||||
Indiana | 2 | 999,176 | 999,176 | 6.6 | % | 4,184,000 | 4.9 | % | 4.19 | 61,430,574 | 35,582,632 | |||||||||||||||||||||||||||
Illinois | 9 | 958,045 | 958,045 | 6.3 | % | 6,192,000 | 7.3 | % | 6.46 | 81,692,833 | 13,400,152 | |||||||||||||||||||||||||||
Mississippi | 4 | 912,305 | 912,305 | 6.0 | % | 3,437,000 | 4.0 | % | 3.77 | 54,731,468 | 22,341,235 | |||||||||||||||||||||||||||
Tennessee | 3 | 891,777 | 891,777 | 5.9 | % | 3,058,000 | 3.6 | % | 3.43 | 33,841,481 | 16,176,709 | |||||||||||||||||||||||||||
Missouri | 5 | 804,397 | 804,397 | 5.3 | % | 3,079,000 | 3.6 | % | 3.83 | 39,241,336 | 9,273,178 | |||||||||||||||||||||||||||
North Carolina | 3 | 585,224 | 585,224 | 3.9 | % | 2,909,000 | 3.4 | % | 4.97 | 44,656,386 | 20,263,805 | |||||||||||||||||||||||||||
South Carolina | 3 | 571,115 | 571,115 | 3.8 | % | 3,552,000 | 4.2 | % | 6.22 | 36,368,552 | 8,891,579 | |||||||||||||||||||||||||||
Pennsylvania | 3 | 504,040 | 504,040 | 3.3 | % | 3,036,000 | 3.6 | % | 6.02 | 36,708,968 | 16,989,249 | |||||||||||||||||||||||||||
Kansas | 3 | 499,280 | 499,280 | 3.3 | % | 2,445,000 | 2.9 | % | 4.90 | 29,199,352 | 12,770,111 | |||||||||||||||||||||||||||
Michigan | 3 | 489,571 | 489,571 | 3.2 | % | 3,472,000 | 4.1 | % | 7.09 | 41,248,198 | 16,359,174 | |||||||||||||||||||||||||||
Virginia | 5 | 407,265 | 407,265 | 2.7 | % | 2,438,000 | 2.9 | % | 5.99 | 34,480,436 | 8,027,901 | |||||||||||||||||||||||||||
Colorado | 3 | 363,597 | 363,597 | 2.4 | % | 3,040,000 | 3.6 | % | 8.36 | 42,049,167 | 21,263,816 | |||||||||||||||||||||||||||
Georgia | 3 | 307,662 | 307,662 | 2.0 | % | 1,743,000 | 2.0 | % | 5.67 | 22,189,823 | 7,516,458 | |||||||||||||||||||||||||||
Arizona | 1 | 283,358 | 283,358 | 1.9 | % | 1,346,000 | 1.6 | % | 4.75 | 16,137,559 | 5,488,226 | |||||||||||||||||||||||||||
Wisconsin | 2 | 238,666 | 238,666 | 1.6 | % | 1,369,000 | 1.6 | % | 5.74 | 15,952,361 | 3,334,473 | |||||||||||||||||||||||||||
New York | 3 | 230,381 | 230,381 | 1.5 | % | 1,890,000 | 2.2 | % | 8.20 | 20,382,099 | 4,230,704 | |||||||||||||||||||||||||||
Washington | 1 | 210,445 | 210,445 | 1.4 | % | 1,962,000 | 2.3 | % | 9.32 | 30,210,680 | 20,136,592 | |||||||||||||||||||||||||||
Oklahoma | 2 | 204,580 | 204,580 | 1.4 | % | 1,305,000 | 1.5 | % | 6.38 | 16,328,293 | 6,482,855 | |||||||||||||||||||||||||||
Louisiana | 1 | 175,315 | 175,315 | 1.2 | % | 1,258,000 | 1.5 | % | 7.18 | 18,410,000 | 12,628,038 | |||||||||||||||||||||||||||
Maryland | 1 | 144,523 | 144,523 | 1.0 | % | 1,426,000 | 1.7 | % | 9.87 | 14,512,355 | -0- | |||||||||||||||||||||||||||
New Jersey | 2 | 124,538 | 124,538 | 0.8 | % | 1,314,000 | 1.5 | % | 12.11 | 7,976,469 | 1,935,659 | |||||||||||||||||||||||||||
Minnesota | 2 | 119,823 | 60,398 | 0.8 | % | 372,000 | 0.4 | % | 6.18 | 10,377,126 | 2,672,338 | |||||||||||||||||||||||||||
Nebraska | 1 | 89,115 | 89,115 | 0.6 | % | 446,000 | 0.4 | % | 5.00 | 5,944,691 | -0- | |||||||||||||||||||||||||||
Alabama | 1 | 73,712 | 73,712 | 0.5 | % | 412,000 | 0.4 | % | 5.59 | 6,365,732 | 845,478 | |||||||||||||||||||||||||||
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 6/30/16 | 97 | 15,124,162 | 15,064,737 | 100.0 | % | $ | 85,278,000 | 100.0 | % | $ | 5.66 | $ | 1,097,706,692 | (A) | $ | 440,352,826 |
(A) Does not include $11,065 of vacant land.
Third Quarter FY 2016 Supplemental of Monmouth Real Estate Investment Corp. Page 14 of 22 |
Lease Expirations
(unaudited)
Property | Square | % of Total | Annual | % of Total | Rent Per Sq. | Lease Exp. | Undepreciated | Mortgage | ||||||||||||||||||||||||||||||
Fiscal Year | Count | Footage | Sq. Ft. | Rent | Ann. Rent | Ft. Occup. | Term in Years | Cost | Balance | |||||||||||||||||||||||||||||
2017 | (B) | 9 | 1,038,804 | 6.9 | % | $ | 6,161,000 | 7.2 | % | 5.93 | 1.0 | $ | 74,824,890 | $ | 15,759,334 | |||||||||||||||||||||||
2018 | (B) | 15 | 1,324,159 | 8.8 | % | 7,760,000 | 9.1 | % | 5.86 | 1.9 | 91,785,770 | 16,036,533 | ||||||||||||||||||||||||||
2019 | 9 | 1,370,849 | 9.1 | % | 7,091,000 | 8.3 | % | 5.17 | 2.9 | 81,365,433 | 25,189,764 | |||||||||||||||||||||||||||
2020 | 4 | 383,449 | 2.5 | % | 2,102,000 | 2.5 | % | 5.48 | 3.9 | 27,373,089 | 476,660 | |||||||||||||||||||||||||||
2021 | 7 | 684,692 | 4.5 | % | 3,335,000 | 3.9 | % | 4.87 | 5.0 | 44,773,380 | 8,417,030 | |||||||||||||||||||||||||||
2022 | 8 | 1,212,032 | 8.0 | % | 6,751,000 | 7.9 | % | 5.57 | 5.8 | 81,977,725 | 35,004,796 | |||||||||||||||||||||||||||
2023 | 11 | 1,917,312 | 12.7 | % | 10,031,000 | 11.8 | % | 5.23 | 7.0 | 136,474,724 | 54,013,922 | |||||||||||||||||||||||||||
2024 | 12 | 1,914,366 | 12.7 | % | 12,069,000 | 14.2 | % | 6.30 | 7.9 | 149,892,165 | 55,098,952 | |||||||||||||||||||||||||||
2025 | (B) | 9 | 2,404,478 | 15.9 | % | 11,989,000 | 14.1 | % | 4.99 | 8.9 | 157,264,219 | 88,417,842 | ||||||||||||||||||||||||||
2026 | 3 | 488,722 | 3.2 | % | 3,978,000 | 4.7 | % | 8.14 | 9.7 | 59,754,000 | 38,960,838 | |||||||||||||||||||||||||||
2027 | 3 | 395,691 | 2.6 | % | 2,189,000 | 2.6 | % | 5.53 | 10.8 | 26,218,973 | 5,488,226 | |||||||||||||||||||||||||||
2029 | 2 | 262,613 | 1.7 | % | 1,513,000 | 1.8 | % | 5.76 | 13.0 | 21,950,000 | 9,836,724 | |||||||||||||||||||||||||||
2030 | 4 | 1,044,832 | 6.9 | % | 7,366,000 | 8.6 | % | 7.05 | 13.8 | 109,094,466 | 70,791,703 | |||||||||||||||||||||||||||
2034 | 1 | 558,600 | 3.7 | % | 2,166,000 | 2.5 | % | 3.88 | 17.3 | 26,727,852 | 16,860,502 | |||||||||||||||||||||||||||
Various tenants at retail shopping center | 1 | 64,138 | 0.4 | % | 777,000 | 0.8 | % | 12.11 | -0- | 3,072,880 | -0- | |||||||||||||||||||||||||||
Vacant | 1 | 59,425 | 0.4 | % | -0- | 0.0 | % | -0- | -0- | 5,157,126 | -0- | |||||||||||||||||||||||||||
Total as of 6/30/16 | 97 | 15,124,162 | 100.0 | % | $ | 85,278,000 | 100.0 | % | $ | 5.66 | 7.1 | (A)$1,097,706,692 | $ | 440,352,826 |
(A) Does not include $11,065 of vacant land.
(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.
Third 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 | Lease | Purchase | Initial Mortgage | ||||||||||||||||||||||||
No | Tenant | City (MSA) | State | Acquisition | Footage | Rent | Sq. Ft. 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 | ||||||||||||||||||||
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 | ||||||||||||||||||||
5 | FedEx Ground Package System, Inc. | Colorado Springs | CO | 2016 | 225,362 | 1,832,000 | 8.13 | 1/31/2026 | 28,845,500 | 18,730,000 | ||||||||||||||||||||
6 | Challenger Lifts, Inc. (Snap-on Inc.) | Louisville | KY | 2016 | 137,500 | 835,000 | 6.07 | 6/7/2026 | 11,304,000 | 7,350,000 | ||||||||||||||||||||
As of 6/30/16 | 1,205,199 | $ | 9,276,000 | $ | 7.70 | $ | 141,230,341 | $ | 92,971,000 |
Third Quarter FY 2016 Supplemental of Monmouth Real Estate Investment Corp. Page 16 of 22 |
Property Table
(unaudited)
Rent Per | Lease Exp. | |||||||||||||||||||||||||||||||||||||
Fiscal Year | Square | Annual | Sq. Ft. | Term 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 | 9.1 | $ | 37,484,574 | $ | 23,071,621 | ||||||||||||||||||||||
2 | Milwaukee Electric Tool Corporation | (D) | Olive Branch (Memphis, TN) | MS | 2013 | 100.0 | % | 615,305 | 2,012,000 | 3.27 | 6.8 | 36,429,983 | 13,450,427 | |||||||||||||||||||||||||
3 | Jim Beam Brands Company | Frankfort | KY | 2015 | 100.0 | % | 599,840 | 2,013,000 | 3.36 | 8.6 | 28,000,000 | 18,537,055 | ||||||||||||||||||||||||||
4 | TreeHouse Private Brands, Inc. | Buckner (Louisville) | KY | 2014 | 100.0 | % | 558,600 | 2,166,000 | 3.88 | 17.3 | 26,727,852 | 16,860,502 | ||||||||||||||||||||||||||
5 | FedEx Supply Chain Services, Inc. | Memphis | TN | 2010 | 100.0 | % | 449,900 | 1,327,000 | 2.95 | 2.9 | 14,620,887 | 6,858,741 | ||||||||||||||||||||||||||
6 | Woodstream Corporation | (B) | St. Joseph | MO | 2001 | 100.0 | % | 256,000 | 896,000 | 3.50 | 1.3 | 8,823,781 | -0- | |||||||||||||||||||||||||
Altec Industries, Inc. | (B) | St. Joseph | MO | 2001 | 100.0 | % | 126,880 | 349,000 | 2.75 | 1.7 | 4,373,287 | -0- | ||||||||||||||||||||||||||
7 | CBOCS Distribution, Inc. | Lebanon (Nashville) | TN | 2011 | 100.0 | % | 381,240 | 1,420,000 | 3.72 | 8.0 | 14,215,126 | 7,709,764 | ||||||||||||||||||||||||||
8 | Best Buy Warehousing Logistics, Inc. | Streetsboro (Cleveland) | OH | 2012 | 100.0 | % | 368,060 | 1,641,000 | 4.46 | 5.6 | 19,600,000 | 10,580,760 | ||||||||||||||||||||||||||
9 | FedEx Ground Package System, Inc. | Concord (Charlotte) | NC | 2016 | 100.0 | % | 330,717 | 2,078,000 | 6.28 | 9.1 | 31,975,897 | 20,263,805 | ||||||||||||||||||||||||||
10 | FedEx Ground Package System, Inc. | Indianapolis | IN | 2014 | 100.0 | % | 327,822 | 1,533,000 | 4.68 | 7.8 | 23,946,000 | 12,511,011 | ||||||||||||||||||||||||||
11 | FedEx Ground Package System, Inc. | Fort Worth (Dallas) | TX | 2015 | 100.0 | % | 304,608 | 2,362,000 | 7.75 | 13.8 | 35,300,832 | 23,752,561 | ||||||||||||||||||||||||||
12 | Science Applications International | Hanahan (Charleston) | SC | 2005 | 100.0 | % | 302,400 | 1,462,000 | 4.83 | 2.8 | 13,340,592 | 5,691,332 | ||||||||||||||||||||||||||
13 | FedEx Ground Package System, Inc. | Jacksonville | FL | 2015 | 100.0 | % | 297,579 | 1,992,000 | 6.69 | 13.5 | 30,645,954 | 18,717,290 | ||||||||||||||||||||||||||
14 | Western Container Corp. | Tolleson (Phoenix) | AZ | 2003 | 100.0 | % | 283,358 | 1,346,000 | 4.75 | 10.8 | 16,137,559 | 5,488,226 | ||||||||||||||||||||||||||
15 | International Paper Company | Edwardsville (Kansas City) | KS | 2014 | 100.0 | % | 280,000 | 1,326,000 | 4.74 | 7.2 | 18,294,108 | 10,823,496 | ||||||||||||||||||||||||||
16 | NF&M International | (C) | Monaca (Pittsburgh) | PA | 1988 | 100.0 | % | 174,802 | 832,000 | 4.76 | 8.5 | 3,958,293 | -0- | |||||||||||||||||||||||||
Datatel Resources Corp. | (C) | Monaca (Pittsburgh) | PA | 1988 | 100.0 | % | 80,856 | 242,000 | 2.99 | 1.4 | 3,810,675 | -0- | ||||||||||||||||||||||||||
17 | FedEx Ground Package System, Inc. | Orion | MI | 2007 | 100.0 | % | 245,633 | 1,908,000 | 7.77 | 7.0 | 22,885,636 | 8,712,073 | ||||||||||||||||||||||||||
18 | Anda Pharmaceuticals, Inc. | Olive Branch (Memphis, TN) | MS | 2012 | 100.0 | % | 234,660 | 1,196,000 | 5.10 | 6.1 | 14,550,000 | 8,890,808 | ||||||||||||||||||||||||||
19 | UGN, Inc. | Monroe (Cincinnati) | OH | 2015 | 100.0 | % | 232,200 | 1,050,000 | 4.52 | 13.7 | 12,937,000 | 8,185,260 | ||||||||||||||||||||||||||
20 | FedEx Ground Package System, Inc. | Colorado Springs | CO | 2016 | 100.0 | % | 225,362 | 1,832,000 | 8.13 | 9.6 | 28,500,000 | 18,730,000 | ||||||||||||||||||||||||||
21 | Caterpillar Logistics Services, Inc. | Griffin (Atlanta) | GA | 2006 | 100.0 | % | 218,120 | 1,169,000 | 5.36 | 0.4 | 14,868,857 | 6,691,259 | ||||||||||||||||||||||||||
22 | FedEx Ground Package System, Inc. | Burlington (Seattle/Everett) | WA | 2016 | 100.0 | % | 210,445 | 1,962,000 | 9.32 | 14.2 | 30,210,680 | $ | 20,136,592 | |||||||||||||||||||||||||
23 | FedEx Ground Package System, Inc. | Sauget (St. Louis, MO.) | IL | 2015 | 100.0 | % | 198,773 | 1,036,000 | 5.21 | 12.9 | 15,200,000 | 9,836,724 | ||||||||||||||||||||||||||
24 | Anheuser-Busch, Inc. | Granite City (St. Louis, MO) | IL | 2001 | 100.0 | % | 184,800 | 806,000 | 4.36 | 5.4 | 12,398,355 | -0- | ||||||||||||||||||||||||||
25 | United Technologies Corporation | Carrollton (Dallas) | TX | 2010 | 100.0 | % | 184,317 | 1,576,000 | 8.55 | 2.5 | 17,744,300 | 8,135,083 | ||||||||||||||||||||||||||
26 | FedEx Ground Package System, Inc. | Spring (Houston) | TX | 2014 | 100.0 | % | 181,176 | 1,581,000 | 8.73 | 8.3 | 19,283,798 | 9,270,426 | ||||||||||||||||||||||||||
27 | Carlisle Tire & Wheel Company | Edwardsville (Kansas City) | KS | 2003 | 100.0 | % | 179,280 | 787,000 | 4.39 | 1.9 | 7,225,401 | 525,219 | ||||||||||||||||||||||||||
28 | FedEx Ground Package System, Inc. | Ft. Mill (Charlotte, NC) | SC | 2010 | 100.0 | % | 176,939 | 1,415,000 | 8.00 | 7.3 | 15,413,307 | 2,065,803 | ||||||||||||||||||||||||||
29 | FedEx Ground Package System, Inc. | Covington (New Orleans) | LA | 2016 | 100.0 | % | 175,315 | 1,258,000 | 7.18 | 9.0 | 18,410,000 | 12,628,038 | ||||||||||||||||||||||||||
30 | FedEx Ground Package System, Inc. | Livonia (Detroit) | MI | 2013 | 100.0 | % | 172,005 | 1,194,000 | 6.94 | 5.8 | 13,762,030 | 7,647,101 | ||||||||||||||||||||||||||
31 | Home Depot USA, Inc. | Montgomery (Chicago) | IL | 2004 | 100.0 | % | 171,200 | 978,000 | 5.71 | 4.0 | 11,298,367 | -0- | ||||||||||||||||||||||||||
32 | FedEx Ground Package System, Inc. | (F) | Tampa | FL | 2004 | 100.0 | % | 170,779 | 1,493,000 | 8.74 | 8.0 | 19,402,200 | 6,806,921 | |||||||||||||||||||||||||
33 | FedEx Ground Package System, Inc. | Lindale (Tyler) | TX | 2015 | 100.0 | % | 163,378 | 725,000 | 4.44 | 8.0 | 9,930,000 | 6,466,240 | ||||||||||||||||||||||||||
34 | Bunzl Distribution Midcentral, Inc. | Kansas City | MO | 2015 | 100.0 | % | 158,417 | 741,000 | 4.68 | 5.3 | 9,600,000 | 6,995,634 | ||||||||||||||||||||||||||
35 | FedEx Ground Package System, Inc. | Oklahoma City | OK | 2012 | 100.0 | % | 158,340 | 1,048,000 | 6.62 | 9.0 | 12,580,262 | 4,519,138 | ||||||||||||||||||||||||||
36 | FedEx Ground Package System, Inc. | Waco | TX | 2012 | 100.0 | % | 150,710 | 1,078,000 | 7.15 | 9.2 | 12,546,157 | 4,866,869 | ||||||||||||||||||||||||||
37 | Victory Packaging, L.P. | Fayetteville | NC | 1997 | 100.0 | % | 148,000 | 470,000 | 3.18 | 4.7 | 5,441,876 | -0- | ||||||||||||||||||||||||||
38 | FedEx Ground Package System, Inc. | Beltsville (Washington, DC) | MD | 2001 | 100.0 | % | 144,523 | 1,426,000 | 9.87 | 2.1 | 14,512,355 | -0- | ||||||||||||||||||||||||||
39 | FedEx Ground Package System, Inc. | El Paso | TX | 2006 | 100.0 | % | 144,149 | 1,345,000 | 9.33 | 7.3 | 12,431,194 | 3,349,372 | ||||||||||||||||||||||||||
40 | FedEx Ground Package System, Inc. | Cocoa | FL | 2008 | 100.0 | % | 144,138 | 1,112,000 | 7.71 | 8.3 | 14,121,616 | 5,140,713 | ||||||||||||||||||||||||||
41 | FedEx Ground Package System, Inc. | Cudahy (Milwaukee) | WI | 2001 | 100.0 | % | 139,564 | 901,000 | 6.46 | 1.0 | 9,382,361 | -0- | ||||||||||||||||||||||||||
42 | Challenger Lifts, Inc. (Snap-on Inc.) | Louisville | KY | 2016 | 100.0 | % | 137,500 | 835,000 | 6.07 | 9.9 | 11,304,000 | 7,350,000 | ||||||||||||||||||||||||||
43 | FedEx Ground Package System, Inc. | Richfield (Cleveland) | OH | 2006 | 100.0 | % | 131,152 | 1,490,000 | 11.36 | 8.3 | 16,435,478 | 3,164,357 | ||||||||||||||||||||||||||
44 | General Electric Company | Imperial (Pittsburgh) | PA | 2016 | 100.0 | % | 125,860 | 1,311,000 | 10.42 | 9.5 | 19,950,000 | 12,880,838 | ||||||||||||||||||||||||||
45 | FedEx Ground Package System, Inc. | Wheeling (Chicago) | IL | 2003 | 100.0 | % | 123,000 | 1,386,000 | 11.27 | 0.9 | 18,537,652 | 3,086,768 | ||||||||||||||||||||||||||
46 | FedEx Ground Package System, Inc. | Altoona | PA | 2014 | 100.0 | % | 122,522 | 651,000 | 5.31 | 7.2 | 8,990,000 | 4,108,411 | ||||||||||||||||||||||||||
47 | FedEx Ground Package System, Inc. | Edinburg | TX | 2011 | 100.0 | % | 113,582 | 598,000 | 5.26 | 5.2 | 9,448,016 | -0- | ||||||||||||||||||||||||||
48 | FedEx Corporation | Mechanicsville (Richmond) | VA | 2001 | 100.0 | % | 112,799 | 541,000 | 4.80 | 6.8 | 7,758,181 | -0- | ||||||||||||||||||||||||||
49 | FedEx Corporation | Orlando | FL | 2008 | 100.0 | % | 110,638 | 666,000 | 6.02 | 1.4 | 8,554,432 | 4,401,089 | ||||||||||||||||||||||||||
50 | Style Crest, Inc. | Winston-Salem | NC | 2002 | 100.0 | % | 106,507 | 361,000 | 3.39 | 4.8 | 7,238,613 | -0- | ||||||||||||||||||||||||||
51 | FedEx Ground Package System, Inc. | Cheektowaga (Buffalo) | NY | 2000 | 100.0 | % | 104,981 | 966,000 | 9.20 | 3.2 | 10,960,823 | 419,319 | ||||||||||||||||||||||||||
52 | FedEx Ground Package System, Inc. | West Chester Twp (Cincinnati) | OH | 1999 | 100.0 | % | 103,818 | 532,000 | 5.12 | 7.2 | 5,728,690 | 2,131,088 | ||||||||||||||||||||||||||
53 | FedEx Ground Package System, Inc. | Roanoke | VA | 2013 | 100.0 | % | 103,402 | 755,000 | 7.30 | 6.8 | 10,200,000 | 5,432,244 | ||||||||||||||||||||||||||
54 | Pittsburgh Glass Works LLC. | O’ Fallon (St. Louis) | MO | 1994 | 100.0 | % | 102,135 | 427,000 | 4.18 | 2.0 | 4,245,913 | -0- | ||||||||||||||||||||||||||
55 | FedEx Ground Package System, Inc. | Green Bay | WI | 2013 | 100.0 | % | 99,102 | 468,000 | 4.72 | 6.9 | 6,570,000 | 3,334,473 | ||||||||||||||||||||||||||
56 | Holland 1916 Inc. | Liberty (Kansas City) | MO | 1998 | 100.0 | % | 95,898 | 341,000 | 3.56 | 3.0 | 7,397,881 | -0- | ||||||||||||||||||||||||||
57 | FedEx Corporation | Jacksonville | FL | 1999 | 100.0 | % | 95,883 | 518,000 | 5.40 | 2.9 | 6,229,421 | 1,466,948 | ||||||||||||||||||||||||||
58 | FedEx Corporation | Tampa | FL | 2006 | 100.0 | % | 95,662 | 603,000 | 6.30 | 1.3 | 7,571,132 | 3,959,698 | ||||||||||||||||||||||||||
59 | FedEx Ground Package System, Inc. | Hanahan (Charleston) | SC | 2005 | 100.0 | % | 91,776 | 675,000 | 7.35 | 2.1 | 7,614,653 | 1,134,444 |
Third Quarter FY 2016 Supplemental of Monmouth Real Estate Investment Corp. Page 17 of 22 |
Property Table
(unaudited)
Rent Per | Lease Exp. | |||||||||||||||||||||||||||||||||||||
Fiscal Year | Square | Annual | Sq. Ft. | Term in | Undepreciated | Mortgage | ||||||||||||||||||||||||||||||||
No | Tenant | City (MSA) | State | Acquisition | Occup. | Footage | Rent | Occup. | Years | Cost | Balance | |||||||||||||||||||||||||||
60 | National Oilwell Varco, Inc. | Houston | TX | 2010 | 100.0 | % | 91,295 | 746,000 | 8.17 | 6.3 | 8,083,107 | 3,229,264 | ||||||||||||||||||||||||||
61 | FedEx Corporation | Omaha | NE | 1999 | 100.0 | % | 89,115 | 446,000 | 5.00 | 7.3 | 5,944,691 | -0- | ||||||||||||||||||||||||||
62 | Joseph T. Ryerson and Son, Inc. | Elgin (Chicago) | IL | 2002 | 100.0 | % | 89,052 | 506,000 | 5.68 | 3.6 | 6,932,916 | 476,660 | ||||||||||||||||||||||||||
63 | FedEx Ground Package System, Inc. | Ft. Myers | FL | 2003 | 100.0 | % | 87,500 | 433,000 | 4.95 | 1.0 | 5,017,447 | -0- | ||||||||||||||||||||||||||
64 | CHEP USA, Inc. | Roanoke | VA | 2007 | 100.0 | % | 83,000 | 494,000 | 5.95 | 8.7 | 7,405,447 | 2,595,657 | ||||||||||||||||||||||||||
65 | FedEx Corporation | Bedford Heights (Cleveland) | OH | 2007 | 100.0 | % | 82,269 | 408,000 | 4.96 | 2.2 | 6,861,704 | 2,731,018 | ||||||||||||||||||||||||||
66 | RGH Enterprises, Inc. | Halfmoon (Albany) | NY | 2012 | 100.0 | % | 75,000 | 596,000 | 7.95 | 5.4 | 5,525,600 | 3,811,385 | ||||||||||||||||||||||||||
67 | FedEx Ground Package System, Inc. | (E) | Huntsville | AL | 2005 | 100.0 | % | 73,712 | 412,000 | 5.59 | 6.2 | 6,365,732 | 845,478 | |||||||||||||||||||||||||
68 | FedEx Corporation | Schaumburg (Chicago) | IL | 1997 | 100.0 | % | 73,500 | 483,000 | 6.57 | 10.8 | 4,981,414 | -0- | ||||||||||||||||||||||||||
69 | FedEx Corporation | Romulus (Detroit) | MI | 1998 | 100.0 | % | 71,933 | 370,000 | 5.14 | 4.9 | 4,600,532 | -0- | ||||||||||||||||||||||||||
70 | FedEx Ground Package System, Inc. | Denver | CO | 2005 | 100.0 | % | 69,865 | 564,000 | 8.07 | 2.1 | 6,354,051 | 1,134,986 | ||||||||||||||||||||||||||
71 | Tampa Bay Grand Prix | Tampa | FL | 2005 | 100.0 | % | 68,385 | 289,000 | 4.23 | 4.3 | 5,677,982 | -0- | ||||||||||||||||||||||||||
72 | FedEx Ground Package System, Inc. | Colorado Springs | CO | 2006 | 100.0 | % | 68,370 | 644,000 | 9.42 | 2.3 | 7,195,115 | 1,398,830 | ||||||||||||||||||||||||||
73 | Sherwin-Williams Company | Rockford | IL | 2011 | 100.0 | % | 66,387 | 477,000 | 7.19 | 7.5 | 5,551,227 | -0- | ||||||||||||||||||||||||||
74 | Kellogg Sales Company | Kansas City | MO | 2007 | 100.0 | % | 65,067 | 325,000 | 4.99 | 2.1 | 4,800,474 | 2,277,544 | ||||||||||||||||||||||||||
75 | Various Tenants at Retail Shopping Center | Somerset | NJ | 1970 | 100.0 | % | 64,138 | 777,000 | 12.11 | na | 3,072,880 | -0- | ||||||||||||||||||||||||||
76 | The American Bottling Company | Cincinnati | OH | 2015 | 100.0 | % | 63,840 | 477,000 | 7.47 | 13.3 | 6,750,000 | -0- | ||||||||||||||||||||||||||
77 | FedEx Corporation | Chattanooga | TN | 2007 | 100.0 | % | 60,637 | 311,000 | 5.13 | 1.3 | 5,005,468 | 1,608,204 | ||||||||||||||||||||||||||
78 | SOFIVE, Inc. | Carlstadt (New York, NY) | NJ | 2001 | 100.0 | % | 60,400 | 537,000 | 8.89 | 8.6 | 4,903,589 | 1,935,659 | ||||||||||||||||||||||||||
79 | FedEx Ground Package System, Inc. | Stewartville (Rochester) | MN | 2013 | 100.0 | % | 60,398 | 372,000 | 6.16 | 6.9 | 5,220,000 | 2,672,338 | ||||||||||||||||||||||||||
80 | United Technologies Corporation | Richmond | VA | 2004 | 100.0 | % | 60,000 | 319,000 | 5.32 | 2.4 | 4,768,309 | -0- | ||||||||||||||||||||||||||
81 | Vacant | White Bear Lake (Minneapolis/St. Paul) | MN | 2001 | 0.0 | % | 59,425 | -0- | na | na | 5,157,126 | -0- | ||||||||||||||||||||||||||
82 | FedEx Ground Package System, Inc. | Augusta | GA | 2005 | 100.0 | % | 59,358 | 453,000 | 7.63 | 2.0 | 5,354,034 | 825,199 | ||||||||||||||||||||||||||
83 | Kellogg Sales Company | Newington (Hartford) | CT | 2001 | 100.0 | % | 54,812 | 329,000 | 6.00 | 3.7 | 3,463,824 | -0- | ||||||||||||||||||||||||||
84 | Siemens Real Estate | Lebanon (Cincinnati) | OH | 2012 | 100.0 | % | 51,130 | 473,000 | 9.25 | 2.8 | 4,452,425 | 2,618,341 | ||||||||||||||||||||||||||
85 | Kellogg Sales Company | Orangeburg (New York) | NY | 1993 | 100.0 | % | 50,400 | 328,000 | 6.51 | 1.7 | 3,895,675 | -0- | ||||||||||||||||||||||||||
86 | FedEx Corporation | Charlottesville | VA | 1999 | 100.0 | % | 48,064 | 329,000 | 6.85 | 1.2 | 4,348,499 | -0- | ||||||||||||||||||||||||||
87 | FedEx Ground Package System, Inc. | Corpus Christi | TX | 2012 | 100.0 | % | 46,253 | 463,000 | 10.01 | 5.2 | 4,764,500 | -0- | ||||||||||||||||||||||||||
88 | The American Bottling Company | Tulsa | OK | 2014 | 100.0 | % | 46,240 | 257,000 | 5.56 | 7.7 | 3,748,031 | 1,963,717 | ||||||||||||||||||||||||||
89 | The Coca-Cola Company | Topeka | KS | 2009 | 100.0 | % | 40,000 | 332,000 | 8.30 | 5.3 | 3,679,843 | 1,421,396 | ||||||||||||||||||||||||||
90 | B/E Aerospace, Inc. | Rockford | IL | 2015 | 100.0 | % | 38,833 | 360,000 | 9.27 | 11.0 | 5,100,000 | -0- | ||||||||||||||||||||||||||
91 | Keystone Automotive Industries MN, Inc. | Urbandale (Des Moines) | IA | 1994 | 100.0 | % | 36,270 | 140,000 | 3.86 | 0.8 | 2,161,895 | -0- | ||||||||||||||||||||||||||
92 | FedEx Corporation | Richland (Jackson) | MS | 1994 | 100.0 | % | 36,000 | 120,000 | 3.33 | 7.8 | 1,900,691 | -0- | ||||||||||||||||||||||||||
93 | FedEx Corporation | Punta Gorda | FL | 2007 | 100.0 | % | 34,624 | 304,000 | 8.78 | 1.0 | 4,113,265 | 2,021,609 | ||||||||||||||||||||||||||
94 | FedEx Corporation | Lakeland | FL | 2006 | 100.0 | % | 32,105 | 155,000 | 4.83 | 1.4 | 1,982,532 | -0- | ||||||||||||||||||||||||||
95 | FedEx Corporation | Augusta | GA | 2006 | 100.0 | % | 30,184 | 121,000 | 4.01 | 6.4 | 1,966,932 | -0- | ||||||||||||||||||||||||||
96 | Graybar Electric Company | Ridgeland (Jackson) | MS | 1993 | 100.0 | % | 26,340 | 109,000 | 4.14 | 3.1 | 1,850,794 | -0- | ||||||||||||||||||||||||||
97 | Sherwin-Williams Company | Burr Ridge (Chicago) | IL | 1997 | 100.0 | % | 12,500 | 160,000 | 12.80 | 5.3 | 1,692,904 | -0- | ||||||||||||||||||||||||||
Total as of 6/30/16 | 99.6 | % | 15,124,162 | $ | 85,278,000 | $ | 5.66 | 7.1 | $ | 1,097,706,692 | (A) | $ | 440,352,826 |
(A) Does not include $11,065 of vacant land.
(B) Both tenants occupy one property.
(C) Both tenants occupy one property.
(D) Subsequent to quarter end, a 246,240 square foot building expansion was completed, bringing the total square footage to 861,545.
(E) Subsequent to quarter end, a 14,941 square foot building expansion was completed, bringing the total square footage to 88,653.
(F) Subsequent to quarter end, a parking lot expansion was completed.
Third 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 dividend and interest 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.
Third Quarter FY 2016 Supplemental of Monmouth Real Estate Investment Corp. Page 19 of 22 |
FOR IMMEDIATE RELEASE | August 3, 2016 |
Contact: Susan Jordan
732-577-9996
MONMOUTH REAL ESTATE INVESTMENT CORPORATION REPORTS RESULTS FOR
THE THIRD QUARTER ENDED JUNE 30, 2016
FREEHOLD, NJ, August 3, 2016........ Monmouth Real Estate Investment Corporation (NYSE:MNR) reported Core Funds from Operations (Core FFO) of $12,752,000 or $0.19 per diluted share for the three months ended June 30, 2016 as compared to $9,044,000 or $0.15 per diluted share for the three months ended June 30, 2015 representing an increase in Core FFO per share of 26.7%. Adjusted Funds from Operations (AFFO), for the three months ended June 30, 2016 was $12,431,000 or $0.19 per diluted share versus $8,884,000 or $0.15 per diluted share for the three months ended June 30, 2015 representing an increase in AFFO per share of 26.7%.
A summary of significant financial information for the three and nine months ended June 30, 2016 and 2015 is as follows:
Three Months Ended June 30, | ||||||||
2016 | 2015 | |||||||
Rental Revenue | $ | 20,790,000 | $ | 17,256,000 | ||||
Reimbursement Revenue | $ | 3,324,000 | $ | 3,416,000 | ||||
Net Operating Income (NOI) (1) | $ | 20,499,000 | $ | 16,960,000 | ||||
Total Expenses | $ | 11,836,000 | $ | 11,351,000 | ||||
Dividend and Interest Income | $ | 1,486,000 | $ | 873,000 | ||||
Gain on Sale of Securities Transactions, net | $ | 272,000 | $ | -0- | ||||
Net Income | $ | 8,231,000 | $ | 5,176,000 | ||||
Net Income Attributable to Common Shareholders | $ | 6,080,000 | $ | 3,024,000 | ||||
Net Income Attributable to Common Shareholders Per Diluted Common Share | $ | 0.09 | $ | 0.05 | ||||
Core FFO (1) | $ | 12,752,000 | $ | 9,044,000 | ||||
Core FFO per Diluted Common Share (1) | $ | 0.19 | $ | 0.15 | ||||
AFFO (1) | $ | 12,431,000 | $ | 8,884,000 | ||||
AFFO per Diluted Common Share (1) | $ | 0.19 | $ | 0.15 | ||||
Dividends Declared per Common Share | $ | 0.16 | $ | 0.15 | ||||
Weighted Avg. Diluted Common Shares Outstanding | 66,462,000 | 59,638,000 |
Nine Months Ended June 30, | ||||||||
2016 | 2015 | |||||||
Rental Revenue | $ | 59,466,000 | $ | 48,892,000 | ||||
Reimbursement Revenue | $ | 9,874,000 | $ | 8,317,000 | ||||
Lease Termination Income | $ | -0- | $ | 239,000 | ||||
Net Operating Income (NOI) (1) | $ | 58,342,000 | $ | 47,554,000 | ||||
Total Expenses | $ | 35,541,000 | $ | 31,240,000 | ||||
Dividend and Interest Income | $ | 4,050,000 | $ | 2,871,000 | ||||
Gain on Sale of Securities Transactions, net | $ | 1,159,000 | $ | 377,000 | ||||
Net Income | $ | 22,302,000 | $ | 15,418,000 | ||||
Net Income Attributable to Common Shareholders | $ | 15,847,000 | $ | 8,963,000 | ||||
Net Income Attributable to Common Shareholders Per Diluted Common Share | $ | 0.24 | $ | 0.15 | ||||
Core FFO (1) | $ | 35,278,000 | $ | 26,096,000 | ||||
Core FFO per Diluted Common Share (1) | $ | 0.55 | $ | 0.45 | ||||
AFFO (1) | $ | 33,901,000 | $ | 24,818,000 | ||||
AFFO per Diluted Common Share (1) | $ | 0.52 | $ | 0.42 | ||||
Dividends Declared per Common Share | $ | 0.48 | $ | 0.45 | ||||
Weighted Avg. Diluted Common Shares Outstanding | 64,703,000 | 58,504,000 |
A summary of significant balance sheet information as of June 30, 2016 and September 30, 2015 is as follows:
June 30, 2016 | September 30, 2015 | |||||||
Net Real Estate Investments | $ | 955,429,000 | $ | 816,111,000 | ||||
Securities Available for Sale at Fair Value | $ | 82,639,000 | $ | 54,541,000 | ||||
Total Assets | $ | 1,083,034,000 | $ | 915,992,000 | ||||
Mortgage Notes Payable | $ | 440,353,000 | $ | 373,991,000 | ||||
Loans Payable | $ | 125,854,000 | $ | 85,041,000 | ||||
Total Shareholders’ Equity | $ | 501,251,000 | $ | 446,011,000 |
Third 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 third quarter of fiscal 2016,
“Our fiscal 2016 results thus far have been outstanding. This most recent quarter represents one of our strongest on record.
During the quarter we:
● | Increased our occupancy rate 200 basis points over the prior year period, to a sector leading 99.6%. | |
● | Increased our Core FFO per share to $0.19, representing a 27% increase over the prior year period. | |
● | Increased our AFFO per share to $0.19, representing a 27% increase over the prior year period. | |
● | Increased our Net Operating Income (NOI) 21% over the prior year period. | |
● | Increased our Same Property NOI 2.4% on a GAAP basis and 2.7% on a cash basis over the prior year period. | |
● | Acquired three brand new Class A built-to-suit properties with an aggregate total of 573,000 square feet, all leased to investment grade tenants with a weighted average lease term of 11.8 years for an aggregate purchase price of $70.8 million. | |
● | Grew our acquisition pipeline to eight new Class A build-to-suit properties, representing 2.4 million square feet, for a total purchase price of approximately $256.6 million. These acquisitions are expected to generate annualized rental revenue of approximately $16.9 million and will benefit from an average lease term of approximately 14.6 years. Subject to satisfactory due diligence, we anticipate closing these transactions upon completion of construction and occupancy over the next several quarters. | |
● | Subsequent to quarter end, completed three property expansions totaling 261,000 square feet at an aggregate cost of approximately $13.4 million. The expansions resulted in a weighted average lease extension of 11.5 years and increased annual rent by approximately $1.2 million. | |
● | Increased our gross leasable area (GLA) 11% to 15.1 million square feet over the prior year period. Our GLA is expected to grow to approximately 18.0 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. | |
● | Generated substantial performance on our $82.6 million REIT securities portfolio which at quarter end had an unrealized gain of $11.9 million. |
Mr. Landy stated, “Monmouth’s business model is performing exceptionally well on all fronts this year. This period marks our fifth consecutive quarter of generating over 20% AFFO per share growth. The strength of our real estate portfolio is evidenced by our industrial sector leading occupancy rate of 99.6%, as well as our second consecutive year of achieving a 100% tenant retention rate. Monmouth’s current AFFO dividend payout ratio of 84% represents a substantial margin of safety given the high quality of our tenant base and the long duration of our net-leases. Allocating capital opportunistically into REIT securities when they sell at compelling discounts to their net asset value has resulted in substantial unrealized gains of $11.9 million at quarter end. Our securities portfolio has continued to deliver outstanding performance subsequent to quarter end. We have an excellent acquisition pipeline consisting entirely of brand new Class A built-to-suit properties totaling $256.6 million currently under construction. We look forward to reporting continued progress for Monmouth in the near future.”
Monmouth Real Estate Investment Corporation will host its Third Quarter FY 2016 Financial Results Webcast and Conference Call on Thursday, August 4, 2016 at 10:00 a.m. Eastern Time. Senior management will discuss the results, current market conditions and future outlook.
The Company’s Third 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, August 4, 2016. It will be available until November 15, 2016, and can be accessed by dialing toll free 877-344-7529 (domestically) and 412-317-0088 (internationally) and entering the passcode 10087173. 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-seven properties located in thirty states, containing a total of approximately 15.1 million rentable square feet. In addition, the Company owns a portfolio of REIT securities.
Third 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. However, other REITs may use different methodologies to calculate FFO, Core FFO and AFFO and, accordingly, our FFO, Core FFO and AFFO may not be comparable to all other REITs. 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 nine months ended June 30, 2016 and 2015:
Three Months Ended | Nine Months Ended | |||||||||||||||
6/30/2016 | 6/30/2015 | 6/30/2016 | 6/30/2015 | |||||||||||||
Net Income Attributable to Common Shareholders | $ | 6,079,000 | $ | 3,024,000 | $ | 15,847,000 | $ | 8,963,000 | ||||||||
Plus: Depreciation Expense (excluding Corporate Office) | 6,066,000 | 5,061,000 | 17,390,000 | 14,298,000 | ||||||||||||
Plus: Amortization of Intangible Assets | 272,000 | 330,000 | 915,000 | 1,041,000 | ||||||||||||
Plus: Amortization of Capitalized Lease Costs | 199,000 | 188,000 | 580,000 | 491,000 | ||||||||||||
FFO Attributable to Common Shareholders | 12,616,000 | 8,603,000 | 34,732,000 | 24,793,000 | ||||||||||||
Plus: Acquisition Costs | 136,000 | 441,000 | 546,000 | 1,303,000 | ||||||||||||
Core FFO Attributable to Common Shareholders | 12,752,000 | 9,044,000 | 35,278,000 | 26,096,000 | ||||||||||||
Plus: Stock Compensation Expense | 100,000 | 97,000 | 307,000 | 284,000 | ||||||||||||
Plus: Depreciation of Corporate Office Tenant Improvements | 31,000 | 38,000 | 88,000 | 71,000 | ||||||||||||
Plus: Amortization of Financing Costs | 240,000 | 212,000 | 713,000 | 608,000 | ||||||||||||
Plus: Non-recurring other expense (1) | 100,000 | -0- | 500,000 | -0- | ||||||||||||
Less: Lease Termination Income | -0- | -0- | -0- | (239,000 | ) | |||||||||||
Less: Gain on Sale of Securities Transactions, net | (272,000 | ) | -0- | (1,159,000 | ) | (377,000 | ) | |||||||||
Less: U.S. GAAP Straight-line Rent Adjustment | (350,000 | ) | (301,000 | ) | (1,172,000 | ) | (1,164,000 | ) | ||||||||
Less: Recurring Capital Expenditures | (170,000 | ) | (206,000 | ) | (654,000 | ) | (461,000 | ) | ||||||||
AFFO Attributable to Common Shareholders | $ | 12,431,000 | $ | 8,884,000 | $ | 33,901,000 | $ | 24,818,000 |
(1) Consists of one-time payroll expenditures.
The following are the Cash Flows provided (used) by Operating, Investing and Financing Activities for the nine months ended June 30, 2016 and 2015:
Nine Months Ended | ||||||||
6/30/2016 | 6/30/2015 | |||||||
Operating Activities | $ | 43,347,000 | $ | 28,282,000 | ||||
Investing Activities | (169,805,000 | ) | (151,750,000 | ) | ||||
Financing Activities | 121,271,000 | 117,045,000 |
# # # # #
Third Quarter FY 2016 Supplemental of Monmouth Real Estate Investment Corp. Page 22 of 22 |
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