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 8, 2018

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 No.)

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))

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).

Emerging growth company [  ]

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. [  ]

Item 2.02 Results of Operations and Financial Condition.

Item 7.01 Regulation FD Disclosure.

On May 8, 2018, Monmouth Real Estate Investment Corporation issued a press release announcing the results for the second quarter ended March 31, 2018 and disclosed a supplemental information package in connection with its earnings conference call for the second quarter ended March 31, 2018. 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, its 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 mortgages and credit facilities at maturity on terms favorable to us, or at all;

● 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;

● 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 prices 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, 2018 and press release dated May 8, 2018.

 2

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 8, 2018

 3

EX-99

Table of Contents

	Page
Consolidated Balance Sheets	3
Consolidated Statements of Income	4
Net Income, FFO, Core FFO, AFFO, EBITDAre, Adjusted EBITDA and NOI 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 8, 2018	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, EBITDAre and Adjusted EBITDA, which are REIT industry financial measures that are not calculated in accordance with accounting principles generally accepted in the United States. Please see page 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

	As of			As of
	March 31, 2018			September 30, 2017
	(unaudited)
ASSETS
Real Estate Investments:
Land	$	197,974,389		$	187,224,819
Buildings and Improvements		1,342,261,913			1,244,691,715
Total Real Estate Investments		1,540,236,302			1,431,916,534
Accumulated Depreciation		(188,310,757	)		(171,060,478	)
Real Estate Investments		1,351,925,545			1,260,856,056
Real Estate Held for Sale		9,486,257			14,606,028
Cash and Cash Equivalents		12,470,188			10,226,046
Securities Available for Sale at Fair Value		144,630,426			123,764,770
Tenant and Other Receivables		1,743,865			1,753,054
Deferred Rent Receivable		8,772,807			8,049,275
Prepaid Expenses		9,339,758			5,434,874
Intangible Assets, net of Accumulated Amortization of  $13,267,014 and $13,404,318, respectively		11,934,269			10,010,165
Capitalized Lease Costs, net of Accumulated Amortization of   $3,331,272 and $3,393,187, respectively		4,271,380			4,180,907
Financing Costs, net of Accumulated Amortization of   $807,345 and $619,555, respectively		687,919			875,709
Other Assets		4,629,158			3,280,871
TOTAL ASSETS	$	1,559,891,572		$	1,443,037,755
LIABILITIES AND SHAREHOLDERS’ EQUITY
Liabilities:
Fixed Rate Mortgage Notes Payable, net of Unamortized Debt Issuance Costs	$	632,051,233		$	591,364,371
Loans Payable		154,341,511			120,091,417
Accounts Payable and Accrued Expenses		2,497,405			4,450,753
Other Liabilities		20,643,642			14,265,518
Total Liabilities		809,533,791			730,172,059
COMMITMENTS AND CONTINGENCIES
Shareholders’ Equity:
6.125% Series C Cumulative Redeemable Preferred Stock, $0.01 Par Value Per Share: 12,400,000 Shares Authorized as of March 31, 2018 and September 30, 2017; 11,095,376 and 9,839,445 Shares Issued and Outstanding as of March 31, 2018 and September 30, 2017, respectively		277,384,400			245,986,125
Common Stock, $0.01 Par Value Per Share: 192,039,750 Shares Authorized as of March 31, 2018 and September 30, 2017; 78,846,177 and 75,630,521 Shares Issued and Outstanding  as of March 31, 2018 and September 30, 2017, respectively		788,462			756,305
Excess Stock, $0.01 Par Value Per Share: 200,000,000 Shares Authorized as of March 31, 2018 and September 30, 2017; No Shares Issued or Outstanding as of March 31, 2018 and September 30, 2017		-0-			-0-
Additional Paid-In Capital		503,309,572			459,552,701
Accumulated Other Comprehensive Income (Loss)		(31,124,653	)		6,570,565
Undistributed Income		-0-			-0-
Total Shareholders’ Equity		750,357,781			712,865,696
TOTAL LIABILITIES & SHAREHOLDERS’ EQUITY	$	1,559,891,572		$	1,443,037,755

Second Quarter FY 2018 Supplemental of Monmouth Real Estate Investment Corp. Page 3 of 23

Consolidated Statements of Income

(unaudited)

	For The						For The
	Three Months Ended						Six Months Ended
	3/31/2018			3/31/2017			3/31/2018			3/31/2017
INCOME:
Rental Revenue	$	28,609,985		$	23,610,830		$	56,302,467		$	46,891,686
Reimbursement Revenue		5,011,523			3,697,361			10,060,863			7,598,116
Lease Termination Income		-0-			-0-			210,261			-0-
TOTAL INCOME		33,621,508			27,308,191			66,573,591			54,489,802
EXPENSES:
Real Estate Taxes		3,779,648			2,851,862			7,642,311			5,758,843
Operating Expenses		1,476,295			1,288,265			2,912,536			2,582,733
General & Administrative Expenses		2,218,037			2,078,538			4,165,069			3,521,001
Acquisition Costs		-0-			-0-			-0-			178,526
Depreciation		8,858,062			7,139,077			17,342,046			14,131,572
Amortization of Capitalized Lease Costs and Intangible Assets		588,622			427,756			1,126,693			875,553
TOTAL EXPENSES		16,920,664			13,785,498			33,188,655			27,048,228
OTHER INCOME (EXPENSE):
Dividend and Interest Income		2,888,210			1,439,182			5,752,427			2,731,333
Gain on Sale of Securities Transactions		11,234			-0-			111,387			806,108
Interest Expense, including Amortization of Financing Costs		(7,955,285	)		(6,537,264	)		(15,361,232	)		(12,700,483	)
TOTAL OTHER INCOME (EXPENSE)		(5,055,841	)		(5,098,082	)		(9,497,418	)		(9,163,042	)
INCOME FROM CONTINUING OPERATIONS, BEFORE GAIN ON SALE OF REAL ESTATE INVESTMENTS		11,645,003			8,424,611			23,887,518			18,278,532
Gain on Sale of Real Estate Investments		-0-			-0-			5,387,886			-0-
NET INCOME		11,645,003			8,424,611			29,275,404			18,278,532
Less: Preferred Dividends		4,248,219			3,582,036			8,565,165			7,279,796
NET INCOME ATTRIBUTABLE TO COMMON SHAREHOLDERS	$	7,396,784		$	4,842,575		$	20,710,239		$	10,998,736

Second Quarter FY 2018 Supplemental of Monmouth Real Estate Investment Corp. Page 4 of 23

Net Income, FFO, Core FFO, AFFO, EBITDAre, Adjusted EBITDA and NOI Reconciliations

(unaudited)

	For The						For The
	Three Months Ended						Six Months Ended
FFO, Core FFO, AFFO	3/31/2018			3/31/2017			3/31/2018			3/31/2017
Net Income Attributable to Common Shareholders	$	7,396,784		$	4,842,575		$	20,710,239		$	10,998,736
Plus: Depreciation Expense (Excluding Corporate Office Capitalized Costs)		8,818,574			7,099,906			17,263,081			14,053,686
Plus: Amortization of Intangible Assets		397,116			240,973			740,862			508,820
Plus: Amortization of Capitalized Lease Costs		217,183			212,275			437,185			417,717
Less: (Gain) / Plus: Loss on Sale of Real Estate Investments		-0-			-0-			(5,387,886	)		95,336
FFO Attributable to Common Shareholders		16,829,657			12,395,729			33,763,481			26,074,295
Plus: Acquisition Costs		-0-			-0-			-0-			178,526
Core FFO Attributable to Common Shareholders		16,829,657			12,395,729			33,763,481			26,252,821
Plus: Depreciation of Corporate Office Capitalized Costs		39,488			39,171			78,965			77,886
Plus: Stock Compensation Expense		111,406			166,190			242,169			266,345
Plus: Amortization of Financing Costs		302,556			384,984			596,450			665,897
Less: Gain on Sale of Securities Transactions		(11,234	)		-0-			(111,387	)		(806,108	)
Less: Lease Termination Income		-0-			-0-			(210,261	)		-0-
Less: Recurring Capital Expenditures		(64,474	)		(188,390	)		(283,720	)		(376,802	)
Less: Effect of Non-cash U.S. GAAP Straight-line Rent Adjustment		(360,458	)		(286,617	)		(756,486	)		(629,856	)
AFFO Attributable to Common Shareholders	$	16,846,941		$	12,511,067		$	33,319,211		$	25,450,183

	Three Months Ended					Six Months Ended
EBITDAre, Adjusted EBITDA	3/31/2018			3/31/2017		3/31/2018			3/31/2017
Net Income Attributable to Common Shareholders	$	7,396,784		$	4,842,575	$	20,710,239		$	10,998,736
Plus: Preferred Dividends		4,248,219			3,582,036		8,565,165			7,279,796
Plus: Interest Expense, including Amortization of Financing Costs		7,955,285			6,537,264		15,361,232			12,700,483
Plus: Depreciation and Amortization		9,446,684			7,566,833		18,468,739			15,007,125
Less: (Gain) / Plus: Loss on Sale of Real Estate Investments		-0-			-0-		(5,387,886	)		95,336
EBITDAre		29,046,972			22,528,708		57,717,489			46,081,476
Plus: Acquisition Costs		-0-			-0-		-0-			178,526
Plus: Net Amortization of Acquired Above and Below Market Lease Revenue		25,677			25,492		51,354			50,984
Less: Gain on Sale of Securities Transactions		(11,234	)		-0-		(111,387	)		(806,108	)
Adjusted EBITDA	$	29,061,415		$	22,554,200	$	57,657,456		$	45,504,878

	Three Months Ended						Six Months Ended
Net Operating Income	3/31/2018			3/31/2017			3/31/2018			3/31/2017
Net Income Attributable to Common Shareholders	$	7,396,784		$	4,842,575		$	20,710,239		$	10,998,736
Plus: Preferred Dividends		4,248,219			3,582,036			8,565,165			7,279,796
Plus: General & Administrative Expenses		2,218,037			2,078,538			4,165,069			3,521,001
Plus: Acquisition Costs		-0-			-0-			-0-			178,526
Plus: Depreciation		8,858,062			7,139,077			17,342,046			14,131,572
Plus: Amortization of Capitalized Lease Costs and Intangible Assets		588,622			427,756			1,126,693			875,553
Plus: Interest Expense, including Amortization of Financing Costs		7,955,285			6,537,264			15,361,232			12,700,483
Less: Dividend and Interest Income		(2,888,210	)		(1,439,182	)		(5,752,427	)		(2,731,333	)
Less: Gain on Sale of Securities Transactions		(11,234	)		-0-			(111,387	)		(806,108	)
Less: Gain on Sale of Real Estate Investments		-0-			-0-			(5,387,886	)		-0-
Less: Lease Termination Income		-0-			-0-			(210,261	)		-0-
Net Operating Income – NOI	$	28,365,565		$	23,168,064		$	55,808,483		$	46,148,226

	Three Months Ended				Six Months Ended
Components of Net Operating Income Consists of:	3/31/2018		3/31/2017		3/31/2018		3/31/2017
Revenues:
Rental Revenue	$	28,609,985	$	23,610,830	$	56,302,467	$	46,891,686
Reimbursement Revenue		5,011,523		3,697,361		10,060,863		7,598,116
Total Rental and Reimbursement Revenue		33,621,508		27,308,191		66,363,330		54,489,802
Expenses:
Real Estate Taxes		3,779,648		2,851,862		7,642,311		5,758,843
Operating Expenses		1,476,295		1,288,265		2,912,536		2,582,733
Total Real Estate Taxes and Operating Expenses		5,255,943		4,140,127		10,554,847		8,341,576
Net Operating Income – NOI	$	28,365,565	$	23,168,064	$	55,808,483	$	46,148,226

Second Quarter FY 2018 Supplemental of Monmouth Real Estate Investment Corp. Page 5 of 23

Financial Highlights

(unaudited)

	For The					For The
	Three Months Ended					Six Months Ended
	3/31/2018			3/31/2017		3/31/2018		3/31/2017
Weighted Average Common Shares Outstanding
Basic		77,992,007			71,243,381		77,174,821		70,456,222
Diluted		78,155,938			71,406,875		77,362,197		70,607,766
Net Income Attributable to Common Shareholders	$	7,396,784		$	4,842,575	$	20,710,239	$	10,998,736
Basic	$	0.10		$	0.07	$	0.27	$	0.16
Diluted		0.10			0.07		0.27		0.16
Net Operating Income – NOI	$	28,365,565		$	23,168,064	$	55,808,483	$	46,148,226
Basic	$	0.36		$	0.33	$	0.72	$	0.65
Diluted		0.36			0.32		0.72		0.65
Funds From Operations – FFO	$	16,829,657		$	12,395,729	$	33,763,481	$	26,074,295
Basic	$	0.22		$	0.17	$	0.44	$	0.37
Diluted		0.22			0.17		0.44		0.37
Core Funds From Operations - Core FFO	$	16,829,657		$	12,395,729	$	33,763,481	$	26,252,821
Basic	$	0.22		$	0.17	$	0.44	$	0.37
Diluted		0.22			0.17		0.44		0.37
Core FFO Excluding Gain on Sale of Securities Transactions and Excluding Lease Termination Income	$	16,818,423		$	12,395,729	$	33,441,883	$	25,446,713
Basic	$	0.22		$	0.17	$	0.43	$	0.36
Diluted		0.22			0.17		0.43	$	0.36
Adjusted Funds From Operations – AFFO	$	16,846,941		$	12,511,067	$	33,319,211	$	25,450,183
Basic	$	0.22		$	0.18	$	0.43	$	0.36
Diluted		0.22			0.18		0.43	$	0.36
Dividends Declared per Common Share	$	0.17		$	0.16	$	0.34	$	0.32
Dividend/AFFO Payout Ratio		77.3	%

Second Quarter FY 2018 Supplemental of Monmouth Real Estate Investment Corp. Page 6 of 23

Same Property Statistics

(unaudited)

	For The
	Three Months Ended
	3/31/2018				3/31/2017			Change		Change %
Total Square Feet / Total Properties		19,928,001 / 109				16,553,910 / 100			3,374,091	20.4	%
Occupancy Percentage at End of Period		99.2	%			100.0	%		(80) bps	(0.8	)%
Same Property Square Feet / Number of Same Properties				15,901,307 / 96
Same Property Occupancy Percentage at End of Period		98.9	%			100.0	%		(110) bps	(1.1	)%
Same Property Net Operating Income (NOI) (GAAP)	$	22,335,043			$	22,284,650		$	50,393	0.2	%
Reversal of Effect of Non-cash U.S. GAAP Straight-line Rent Adjustment		(274,433	)			(286,619	)		12,186
Same Property Cash NOI (Cash)	$	22,060,610			$	21,998,031		$	62,579	0.3	%

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

The 0.2% increase, amounting to $50,393 in Same Property NOI, consists of $172,909 attributable to increased Same Property NOI from occupied properties offset by a 110 bps decline in Same Property Occupancy Percentage amounting to $122,516.

The 0.3% increase, amounting to $62,579 in Same Property Cash NOI, consists of $185,095 attributable to increased Same Property Cash NOI from occupied properties offset by a 110 bps decline in Same Property Occupancy Percentage amounting to $122,516.

Reconciliation of Same Property NOI to Total NOI

	For The
	Three Months Ended
	3/31/2018		3/31/2017		Change		Change %
Same Property NOI (GAAP)	$	22,335,043	$	22,284,650	$	50,393		0.2	%
NOI of properties purchased subsequent to December 31, 2016 (three properties for fiscal 2018 and eight properties for fiscal 2017)		5,266,454		-0-
NOI of properties expanded subsequent to December 31, 2016 (two properties for fiscal 2018 and 2017)		764,068		724,134
NOI of properties sold subsequent to December 31, 2016 (two properties sold during the first quarter of fiscal 2018)		-0-		159,280
Total NOI	$	28,365,565	$	23,168,064	$	5,197,501		22.4	%

Second Quarter FY 2018 Supplemental of Monmouth Real Estate Investment Corp. Page 7 of 23

Same Property Statistics

(unaudited)

	For The
	Six Months Ended
	3/31/2018				3/31/2017			Change			Change %
Total Square Feet / Total Properties		19,928,001 /  109				16,553,910 /  100			3,374,091		20.4	%
Occupancy Percentage at End of Period		99.2	%			100.0	%		(80) bps		(0.8	)%
Same Property Square Feet / Number of Same Properties				15,562,723 / 95
Same Property Occupancy Percentage at End of Period		98.9	%			100.0	%		(110) bps		(1.1	)%
Same Property Net Operating Income (NOI) (GAAP)	$	43,418,000			$	43,660,113		$	(242,113	)	(0.6	)%
Reversal of Effect of Non-cash U.S. GAAP Straight-line Rent Adjustment		(498,470	)			(583,942	)		85,472
Same Property Cash NOI (Cash)	$	42,919,530			$	43,076,171		$	(156,641	)	(0.4	)%

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

The 0.6% decrease, amounting to $242,113 in Same Property NOI, consists of $38,673 attributable to increased Same Property NOI from occupied properties offset by a 110 bps decline in Same Property Occupancy Percentage amounting to $280,786.

The 0.4% decrease, amounting to $156,641 in Same Property Cash NOI, consists of $161,760 attributable to increased Same Property Cash NOI from occupied properties offset by a 110 bps decline in Same Property Occupancy Percentage amounting to $318,401.

Reconciliation of Same Property NOI to Total NOI

	For The
	Six Months Ended
	3/31/2018		3/31/2017		Change			Change %
Same Property NOI (GAAP)	$	43,418,000	$	43,660,113	$	(242,113	)		(0.6	)%
NOI of properties purchased subsequent to September 30, 2016 (three properties for fiscal 2018 and ten properties for fiscal 2017)		11,333,712		1,523,467
NOI of properties expanded subsequent to September 30, 2016 (one property for fiscal 2018 and 2017)		841,918		759,254
NOI of properties sold subsequent to September 30, 2016 (two properties sold during fiscal 2018 and one during fiscal 2017)		214,853		205,392
Total NOI	$	55,808,483	$	46,148,226	$	9,660,257			20.9	%

Second Quarter FY 2018 Supplemental of Monmouth Real Estate Investment Corp. Page 8 of 23

Table of Contents

Consolidated Statements of Cash Flows

(unaudited)

	For The
	Six Months Ended
	3/31/18			3/31/17
CASH FLOWS FROM OPERATING ACTIVITIES
Net Income	$	29,275,404		$	18,278,532
Noncash Items Included in Net Income:
Depreciation & Amortization		19,065,189			15,673,022
Deferred Straight Line Rent		(756,486	)		(629,856	)
Stock Compensation Expense		242,170			266,345
Gain on Sale of Securities Transactions		(111,387	)		(806,108	)
(Gain) / Loss on Sale of Real Estate Investments		(5,387,886	)		95,336
Changes in:
Tenant & Other Receivables		850,945			1,082,191
Prepaid Expenses		(3,904,884	)		(3,135,027	)
Other Assets & Capitalized Lease Costs		20,263			(839,704	)
Accounts Payable, Accrued Expenses & Other Liabilities		3,545,246			861,044
NET CASH PROVIDED BY OPERATING ACTIVITIES		42,838,574			30,845,775
CASH FLOWS FROM INVESTING ACTIVITIES
Purchase of Real Estate & Intangible Assets		(110,045,832	)		(56,101,538	)
Capital Improvements		(2,310,665	)		(1,013,209	)
Proceeds from Sale of Real Estate Investments		10,499,704			4,125,819
Return of Deposits on Real Estate		450,000			1,000,000
Deposits Paid on Acquisitions of Real Estate		(1,200,000	)		(1,575,000	)
Proceeds from Sale of Securities Available for Sale		2,619,433			3,739,239
Purchase of Securities Available for Sale		(61,068,920	)		(29,305,625	)
NET CASH USED IN INVESTING ACTIVITIES		(161,056,280	)		(79,130,314	)
CASH FLOWS FROM FINANCING ACTIVITIES
Net Draws (Repayments) on Loans Payable		34,250,094			(54,790,684	)
Proceeds from Fixed Rate Mortgage Notes Payable		67,100,000			38,000,000
Principal Payments on Fixed Rate Mortgage Notes Payable		(26,225,677	)		(37,700,474	)
Financing Costs Paid on Debt		(596,121	)		(660,702	)
Proceeds from the Exercise of Stock Options		569,600			-0-
Redemption of 7.625% Series A Preferred Stock		-0-			(53,493,750	)
Proceeds from Underwritten Public Offering of Preferred Stock, net of offering costs		-0-			71,017,493
Proceeds from At-The-Market Preferred Equity Program, net of offering costs		30,941,972			-0-
Proceeds from Issuance of Common Stock in the DRIP, net of Dividend Reinvestments		42,996,991			37,812,970
Preferred Dividends Paid		(8,301,342	)		(6,621,359	)
Common Dividends Paid, net of Reinvestments		(20,273,669	)		(18,076,564	)
NET CASH PROVIDED BY (USED IN) FINANCING ACTIVITIES		120,461,848			(24,513,070	)
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS		2,244,142			(72,797,609	)
CASH AND CASH EQUIVALENTS - BEGINNING OF PERIOD		10,226,046			95,749,508
CASH AND CASH EQUIVALENTS - END OF PERIOD	$	12,470,188		$	22,951,899

Second Quarter FY 2018 Supplemental of Monmouth Real Estate Investment Corp. Page 9 of 23

Capital Structure and Leverage Ratios

(unaudited)

	As of			As of			As of
	3/31/2018			3/31/2017			9/30/2017
Fixed Rate Mortgage Notes Payable, net of Unamortized Debt Issuance Costs	$	632,051,233		$	477,598,305		$	591,364,371
Loans Payable		154,341,511			26,000,000			120,091,417
Total Debt		786,392,744			503,598,305			711,455,788
7.875% Series B Cumulative Redeemable Preferred Stock		-0-			57,500,000			-0-
6.125% Series C Cumulative Redeemable Preferred Stock		277,384,400			210,000,000			245,986,125
Total Preferred Stock		277,384,400			267,500,000			245,986,125
Common Stock, Paid-In-Capital & Other		472,973,381			431,805,101			466,879,571
Total Shareholders’ Equity		750,357,781			699,305,101			712,865,696
Total Book Capitalization		1,536,750,525			1,202,903,406			1,424,321,484
Accumulated Depreciation		191,051,270			161,947,883			177,372,518
Total Undepreciated Book Capitalization	$	1,727,801,795		$	1,364,851,289		$	1,601,694,002
Shares Outstanding		78,846,177			72,107,640			75,630,521
Market Price Per Share	$	15.04		$	14.27		$	16.19
Equity Market Capitalization	$	1,185,846,502		$	1,028,976,023		$	1,224,458,135
Total Debt		786,392,744			503,598,305			711,455,788
Total Preferred Stock		277,384,400			267,500,000			245,986,125
Total Market Capitalization	$	2,249,623,646		$	1,800,074,328		$	2,181,900,048
Total Debt	$	786,392,744		$	503,598,305		$	711,455,788
less: Cash and Cash Equivalents		12,470,188			22,951,899			10,226,046
Net Debt	$	773,922,556		$	480,646,406		$	701,229,742
less: Securities Available for Sale at Fair Value (Securities)		144,630,426			99,405,410			123,764,770
Net Debt Less Securities	$	629,292,130		$	381,240,996		$	577,464,972
Net Debt / Total Undepreciated Book Capitalization		44.8	%		35.2	%		43.8	%
Net Debt / Total Market Capitalization		34.4	%		26.7	%		32.1	%
Net Debt Plus Preferred Stock / Total Market Capitalization		46.7	%		41.6	%		43.4	%
Net Debt Less Securities / Total Undepreciated Book Capitalization		36.4	%		27.9	%		36.1	%
Net Debt Less Securities / Total Market Capitalization		28.0	%		21.2	%		26.5	%
Net Debt Less Securities Plus Preferred Stock / Total Market Capitalization		40.3	%		36.0	%		37.7	%
Weighted Average Interest Rate on Fixed Rate Debt		4.11	%		4.37	%		4.18	%
Weighted Average Term on Fixed Rate Debt		11.5 yrs.			10.7 yrs.			11.6 yrs
Weighted Average Lease Term		7.8 yrs.			7.4 yrs.			7.9 yrs

Second Quarter FY 2018 Supplemental of Monmouth Real Estate Investment Corp. Page 10 of 23

Capital Structure and Leverage Ratios continued

(unaudited)

												Fiscal Year
	Three Months Ended					Six Months Ended						Ended
	3/31/2018			3/31/2017		3/31/2018			3/31/2017			9/30/2017
Net Income	$	11,645,003		$	8,424,611	$	29,275,404		$	18,278,532		$	40,271,085
plus: Interest Expense, including Amortization of Financing Costs		7,955,285			6,537,264		15,361,232			12,700,483			25,754,121
plus: Depreciation & Amortization		9,446,684			7,566,833		18,468,739			15,007,125			31,459,749
less: (Gain) / plus: Loss on Sale of Real Estate Investments		-0-			-0-		(5,387,886	)		95,336			95,336
EBITDAre		29,046,972			22,528,708		57,717,489			46,081,476			97,580,291
plus: Acquisition Costs		-0-			-0-		-0-			178,526			178,526
plus: Net Amortization of Acquired Above and Below Market Lease Revenue		25,677			25,492		51,354			50,984			101,968
less: Gain on Sale of Securities Transactions		(11,234	)		-0-		(111,387	)		(806,108	)		(2,311,714	)
Adjusted EBITDA	$	29,061,415		$	22,554,200	$	57,657,456		$	45,504,878		$	95,549,071
Interest Expense, including Amortization of Financing Costs	$	7,955,285		$	6,537,264	$	15,361,232		$	12,700,483		$	25,754,121
Preferred Dividends		4,248,219			3,582,036		8,565,165			7,279,796			14,861,686
Total Fixed Charges	$	12,203,504		$	10,119,300	$	23,926,397		$	19,980,279		$	40,615,807
Interest Coverage		3.7 x			3.5 x		3.8 x			3.6 x			3.7 x
Fixed Charge Coverage		2.4 x			2.2 x		2.4 x			2.3 x			2.4 x
Net Debt	$	773,922,556		$	480,646,406	$	773,922,556		$	480,646,406		$	701,229,742
Net Debt Less Securities		629,292,130			381,240,996		629,292,130			381,240,996			577,464,972
Total Preferred Stock		277,384,400			267,500,000		277,384,400			267,500,000			245,986,125
Annualized Adjusted EBITDA		116,245,660			90,216,800		115,314,912			91,009,756			95,549,071
Net Debt / Adjusted EBITDA		6.7 x			5.3 x		6.7 x			5.3 x			7.3 x
Net Debt Less Securities / Adjusted EBITDA		5.4 x			4.2 x		5.5 x			4.2 x			6.0 x
Net Debt + Preferred Stock / Adjusted EBITDA		9.0 x			8.3 x		9.1 x			8.2 x			9.9 x
Net Debt Less Securities + Preferred Stock / Adjusted EBITDA		7.8 x			7.2 x		7.9 x			7.1 x			8.6 x

Second Quarter FY 2018 Supplemental of Monmouth Real Estate Investment Corp. Page 11 of 23

					Loans						% of
Fiscal Year Ended		Mortgages			Payable			Total			Total
2018		$	23,077,134		$	44,341,511	(B)	$	67,418,645			8.5	%
2019			59,035,637			-0-			59,035,637			7.4	%
2020			43,285,121			110,000,000	(C)		153,285,121			19.3	%
2021			44,295,790			-0-			44,295,790			5.6	%
2022			65,782,393			-0-			65,782,393			8.3	%
Thereafter			404,360,815			-0-			404,360,815			50.9	%
Total as of 3/31/2018	(A)	$	639,836,890		$	154,341,511		$	794,178,401			100.0	%
Weighted Average Interest Rate			4.11	%		3.13	%		3.92	%
Weighted Average Term			11.5 yrs.			1.8 yrs.			9.6 yrs.

(A)	Mortgages does not include unamortized debt issuance costs of $7,785,657.
(B)	Represents margin debt which is due upon demand and bears and interest rate of 2.00%.
(C)	Represents the amount drawn down on a line of credit that has a one year extension option, which is not reflected above.

Second Quarter FY 2018 Supplemental of Monmouth Real Estate Investment Corp. Page 12 of 23

Property Table by Tenant

(unaudited)

		Property		Square		Occupied Square		% of Occupied			Annual		% of Total			Rent Per sf		Undepreciated			Mortgage
Tenant		Count		Footage		Footage		sf			Rent		Ann. Rent			Occup.		Cost			Balance
FedEx Ground Package System, Inc.			43		7,967,706		7,967,706		40.0	%	$	59,396,000		50.9	%	$	7.45	$	811,701,200		$	358,280,093
FedEx Corporation			16		1,544,996		1,544,996		7.8	%		8,000,000		6.9	%		5.18		108,575,992			23,477,029
Total FedEx			59		9,512,702		9,512,702		47.8	%		67,396,000		57.8	%		7.08		920,277,192			381,757,122
Milwaukee Electric Tool Corporation			1		861,889		861,889		4.3	%		3,032,000		2.6	%		3.52		36,914,917			22,600,414
Shaw Industries, Inc.			1		831,764		831,764		4.2	%		3,551,000		3.0	%		4.27		56,025,945			33,146,461
ULTA, Inc.			1		671,354		671,354		3.4	%		2,702,000		2.3	%		4.02		37,512,071			20,828,554
Jim Beam Brands Company			1		599,840		599,840		3.0	%		2,051,000		1.8	%		3.42		28,000,000			17,105,559
International Paper Company			2		578,472		578,472		2.9	%		2,592,000		2.2	%		4.48		36,175,718			21,326,799
TreeHouse Private Brands, Inc.			1		558,600		558,600		2.8	%		2,206,000		1.9	%		3.95		26,807,852			15,663,877
CBOCS Distribution, Inc. (Cracker Barrel)			1		381,240		381,240		1.9	%		1,447,000		1.2	%		3.80		14,215,126			7,334,231
Best Buy Warehousing Logistics, Inc.			1		368,060		368,060		1.8	%		1,676,000		1.4	%		4.55		19,600,000			9,598,178
Coca-Cola			2		323,358		323,358		1.6	%		1,693,000		1.4	%		5.24		20,504,069			5,118,586
Autoneum North America, Inc.			1		315,560		315,560		1.6	%		1,703,000		1.5	%		5.40		21,040,395			14,853,051
Science Applications International Corporation			1		302,400		302,400		1.5	%		1,491,000		1.3	%		4.93		13,390,441			-0-
Amazon.com Services, Inc.			1		300,000		300,000		1.5	%		1,884,000		1.6	%		6.28		29,878,942			19,406,304
United Technologies Corporation			3		283,150		283,150		1.4	%		2,264,000		1.9	%		8.00		27,687,512			6,851,064
Bunzl USA Holdings, Inc.			2		268,778		268,778		1.3	%		1,474,000		1.3	%		5.48		18,379,665			12,454,764
Woodstream Corporation	(A)		1		256,000		256,000		1.3	%		914,000		0.8	%		3.57		8,912,151			-0-
NF&M International, Inc.	(B)		1		174,802		174,802		0.9	%		835,000		0.7	%		4.78		5,399,580			-0-
Anda Pharmaceuticals, Inc.			1		234,660		234,660		1.2	%		1,205,000		1.0	%		5.14		14,550,000			7,871,470
UGN, Inc.			1		232,200		232,200		1.2	%		1,070,000		0.9	%		4.61		13,017,525			7,369,500
Mickey Thompson Performance Tires and Wheels (Cooper Tire)			1		219,765		219,765		1.1	%		1,501,000		1.3	%		6.83		18,934,065			12,443,758
Rinnai America Corporation			1		218,120		218,120		1.1	%		831,000		0.7	%		3.81		14,885,306			-0-
Anheuser-Busch, Inc.			1		184,800		184,800		0.9	%		821,000		0.7	%		4.44		12,697,848			-0-
Carlisle Tire & Wheel Company			1		179,280		179,280		0.9	%		739,000		0.6	%		4.12		7,232,986			-0-
Home Depot USA, Inc.			1		171,200		171,200		0.9	%		997,000		0.9	%		5.82		11,298,367			-0-
Victory Packaging, L.P.			1		148,000		148,000		0.7	%		502,000		0.4	%		3.39		5,451,629			-0-
Challenger Lifts, Inc. (Snap-On Inc.)			1		137,500		137,500		0.7	%		838,000		0.7	%		6.09		11,304,000			6,721,455
Altec Industries, Inc.	(A)		1		126,880		126,880		0.6	%		371,000		0.3	%		2.92		4,417,086			-0-
General Electric Company			1		125,860		125,860		0.6	%		1,321,000		1.1	%		10.50		19,950,000			11,585,192
The American Bottling Company (Dr Pepper Snapple)			2		110,080		110,080		0.6	%		743,000		0.6	%		6.75		10,498,031			1,749,659
Style Crest, Inc.			1		106,507		106,507		0.5	%		387,000		0.3	%		3.63		7,238,613			-0-
Pittsburgh Glass Works, LLC			1		102,135		102,135		0.5	%		427,000		0.4	%		4.18		4,245,913			-0-
Holland 1916 Inc.			1		95,898		95,898		0.5	%		349,000		0.3	%		3.64		7,397,881			-0-
National Oilwell Varco, Inc.			1		91,295		91,295		0.5	%		754,000		0.6	%		8.26		8,163,278			2,388,059
Joseph T. Ryerson and Son, Inc.			1		89,052		89,052		0.4	%		506,000		0.4	%		5.68		6,977,442			-0-
CHEP USA, Inc.			1		83,000		83,000		0.4	%		500,000		0.4	%		6.02		7,405,447			-0-
Sherwin-Williams Company			2		78,887		78,887		0.4	%		643,000		0.6	%		8.15		7,244,128			-0-
RGH Enterprises, Inc. (Cardinal Health)			1		75,000		75,000		0.4	%		607,000		0.5	%		8.09		5,525,600			-0-
Tampa Bay Grand Prix			1		68,385		68,385		0.3	%		297,000		0.3	%		4.34		5,677,982			-0-
Various Tenants at Retail Shopping Center			1		64,220		64,220		0.3	%		807,000		0.7	%		12.57		3,072,882			-0-
SOFIVE, Inc.			1		60,400		60,400		0.3	%		558,000		0.5	%		9.24		4,910,208			1,662,833
Kellogg Sales Company			1		54,812		54,812		0.3	%		329,000		0.3	%		6.00		3,494,108			-0-
Siemens Real Estate			1		51,130		51,130		0.3	%		485,000		0.4	%		9.49		4,452,425			-0-
Foundation Building Materials, LLC			1		36,270		36,270		0.2	%		172,000		0.2	%		4.74		2,284,460			-0-
Graybar Electric Company			1		26,340		26,340		0.2	%		109,000		0.2	%		4.14		1,883,306			-0-
Tenant Total as of 3/31/18			108		19,759,645		19,759,645		99.2	%	$	116,780,000		100.0	%	$	5.91	$	1,544,932,092	(C)	$	639,836,890
Vacant	(B)(D)		2		168,356		-0-		0.0	%		-0-		0.0	%		-0-		7,519,914			-0-
Total as of 3/31/18			109		19,928,001		19,759,645		99.2	%	$	116,780,000		100.0	%	$	5.91	$	1,552,452,006		$	639,836,890
Acquisitions Subsequent to 3/31/18
B. Braun Medical Inc.			1		399,440		399,440		2.0	%		2,128,000		1.8	%		5.33
Pro Forma Total with Acquisitions Subsequent to 3/31/18			110		20,327,441		20,159,085		99.2	%	$	118,908,000		100.0	%	$	5.90

(A)	Woodstream Corporation and Altec Industries, Inc. are located at one property and therefore are counted as one property in the Property Count total.
(B)	NF&M International is located in a 255,658 square foot Industrial Park in Monaca (Pittsburgh), PA, of which 80,856 square feet is vacant. This Industrial Park is counted as one property in the Property Count Total. Other than the two properties indicated in footnotes (A) and (B) and the one retail property, all other properties are single-tenant.
(C)	Does not include unamortized debt issuance costs of $7,785,657.
(D)	Vacant includes an 87,500 square foot building located in Ft. Myers, FL that is under contract to sell.

Second Quarter FY 2018 Supplemental of Monmouth Real Estate Investment Corp. Page 13 of 23

Property Table by State

(unaudited)

	Property		Square		Occupied Square		% of Total			Annual		% of Total			Rent Per		Undepreciated			Mortgage
State	Count		Footage		Footage		sf			Rent		Ann. Rent			sf Occup.		Cost			Balance
Florida		13		1,899,643		1,812,143		9.5	%	$	13,566,000		11.6	%	$	7.49	$	201,293,289		$	88,327,015
Texas		10		1,781,967		1,781,967		8.9	%		14,160,000		12.1	%		7.95		182,228,913			80,908,879
Ohio		9		1,550,706		1,550,706		7.8	%		8,901,000		7.6	%		5.74		109,724,622			42,863,785
Kentucky		3		1,295,940		1,295,940		6.7	%		5,095,000		4.4	%		3.93		66,111,852			39,490,890
Mississippi		4		1,158,889		1,158,889		5.8	%		4,466,000		3.8	%		3.85		55,248,915			30,471,883
Georgia		4		1,139,426		1,139,426		5.7	%		5,004,000		4.3	%		4.39		78,252,331			33,598,628
South Carolina		5		1,008,358		1,008,358		5.1	%		6,599,000		5.6	%		6.54		78,946,002			30,545,425
Indiana		2		999,176		999,176		5.0	%		4,417,000		3.8	%		4.42		63,016,153			31,742,798
Illinois		9		958,045		958,045		4.8	%		6,117,000		5.2	%		6.38		82,238,327			8,857,638
North Carolina		4		939,706		939,706		4.7	%		5,663,000		4.8	%		6.03		85,778,185			43,906,470
Tennessee		3		891,777		891,777		4.5	%		3,093,000		2.6	%		3.47		33,846,631			12,810,864
Michigan		4		833,054		833,054		4.2	%		5,574,000		4.8	%		6.69		72,976,507			26,611,327
Kansas		4		813,043		813,043		4.1	%		4,619,000		4.0	%		5.68		60,943,937			31,093,963
Missouri		4		739,330		739,330		3.7	%		2,813,000		2.4	%		3.80		34,624,260			6,716,065
Oklahoma		4		614,941		614,941		3.1	%		3,916,000		3.4	%		6.37		54,939,875			30,565,275
New York		3		518,565		518,565		2.6	%		3,886,000		3.3	%		7.49		51,336,423			21,936,853
Pennsylvania		3		504,040		423,184		2.5	%		2,807,000		2.5	%		6.63		36,855,847			15,035,197
Virginia		5		407,265		407,265		2.0	%		2,449,000		2.1	%		6.01		34,515,756			4,633,482
Colorado		3		363,597		363,597		1.8	%		3,040,000		2.6	%		8.36		42,058,524			18,624,649
Arizona		1		283,358		283,358		1.4	%		1,361,000		1.2	%		4.80		16,824,226			4,126,383
Wisconsin		2		238,666		238,666		1.2	%		1,295,000		1.1	%		5.43		15,952,361			2,800,096
Washington		1		210,445		210,445		1.1	%		1,962,000		1.7	%		9.32		30,228,547			18,303,162
Louisiana		1		175,315		175,315		0.9	%		1,262,000		1.1	%		7.20		18,410,000			11,477,932
Maryland		1		148,881		148,881		0.7	%		1,426,000		1.2	%		9.58		14,512,355			-0-
New Jersey		2		124,620		124,620		0.6	%		1,365,000		1.2	%		10.95		7,983,090			1,662,833
Nebraska		1		89,115		89,115		0.4	%		446,000		0.4	%		5.00		5,944,691			-0-
Alabama		1		88,653		88,653		0.4	%		605,000		0.5	%		6.82		6,661,819			481,485
Minnesota		1		60,398		60,398		0.3	%		372,000		0.3	%		6.16		5,220,000			2,243,913
Connecticut		1		54,812		54,812		0.3	%		329,000		0.3	%		6.00		3,494,108			-0-
Iowa		1		36,270		36,270		0.2	%		172,000		0.1	%		4.74		2,284,460			-0-
Total as of 3/31/18		109		19,928,001		19,759,645		100.0	%	$	116,780,000		100.0	%	$	5.91	$	1,552,452,006	(A)	$	639,836,890
Acquisitions Subsequent to 3/31/18
Florida		1		399,440		399,440		2.0	%		2,128,000		1.8	%		5.33
Pro Forma Total with Acquisitions Subsequent to 3/31/18		110		20,327,441		20,159,085		100.0	%	$	118,908,000		100.0	%	$	5.90

(A) Does not include unamortized debt issuance costs of $7,785,657.

Second Quarter FY 2018 Supplemental of Monmouth Real Estate Investment Corp. Page 14 of 23

Lease Expirations

(unaudited)

		Property		Square		% of Total			Annual		% of Total			Rent Per sf		Lease Exp.		Undepreciated			Mortgage
Fiscal Year		Count		Footage		sf			Rent		Ann. Rent			Occup.		Term in Years		Cost			Balance
2018			5		471,520		2.4	%	$	3,469,000		3.0	%	$	7.36		0.4	$	39,236,627		$	1,477,655
2019			10		1,462,625		7.3	%		7,820,000		6.7	%		5.35		1.1		89,285,355			12,949,313
2020			4		383,449		1.9	%		2,129,000		1.8	%		5.55		2.2		27,447,899			-0-
2021	(A)		9		1,104,588		5.5	%		5,025,000		4.3	%		4.55		3.2		64,639,520			8,160,434
2022			7		1,138,320		5.7	%		6,419,000		5.5	%		5.64		4.0		75,991,657			26,464,575
2023	(A)		13		1,668,804		8.4	%		9,481,000		8.1	%		5.68		5.2		116,772,651			24,380,070
2024			11		1,526,126		7.7	%		9,804,000		8.4	%		6.42		6.2		115,324,385			29,927,927
2025	(A)		9		2,404,478		12.1	%		12,271,000		10.5	%		5.10		7.1		162,315,550			77,503,148
2026			6		912,361		4.6	%		7,317,000		6.3	%		8.02		8.1		98,151,060			41,468,496
2027			11		2,304,616		11.6	%		12,629,000		10.8	%		5.48		9.4		178,017,929			75,134,944
2028			7		1,764,386		8.9	%		8,227,000		7.0	%		4.66		10.0		112,786,052			56,891,832
2029			2		262,613		1.3	%		1,517,000		1.3	%		5.78		11.3		21,954,950			8,857,638
2030			4		1,044,832		5.2	%		7,403,000		6.3	%		7.09		12.0		109,278,995			63,926,233
2031			3		963,269		4.8	%		7,122,000		6.1	%		7.39		13.1		104,367,000			66,872,054
2032			6		1,724,838		8.7	%		13,134,000		11.2	%		7.61		14.1		201,979,345			130,158,694
2034			1		558,600		2.8	%		2,206,000		1.9	%		3.95		15.6		26,807,852			15,663,877
Various tenants at retail shopping center			1		64,220		0.3	%		807,000		0.8	%		12.57		-0-		3,072,882			-0-
Vacant	(A)(B)		2		168,356		0.8	%		-0-		-0-			-0-		-0-		5,022,297			-0-
Total as of 3/31/18			109		19,928,001		100.0	%	$	116,780,000		100.0	%	$	5.91		7.8	$	1,552,452,006	(C)	$	639,836,890
Acquisitions Subsequent to 3/31/18
2028			1		399,440		2.0	%		2,128,000		1.8	%		5.33		10.0
Pro Forma Total with Acquisitions Subsequent to 3/31/18			110		20,327,441		100.0	%	$	118,908,000		100.0	%	$	5.90		7.8

(A)	Included in 2021 is Woodstream Corporation and included in 2023 is Altec Industries which both occupy one property. Included in 2025 is NF&M International, which occupies 174,800 square feet of a 255,658 square foot Industrial Park. The remaining 80,856 square feet is included in Vacant. Each of these proeprites are are counted as one property in the Property Count Total. Other than these properties and the one retail property, all other properties are single-tenant.
(B)	Vacant includes an 87,500 square foot building located in Ft. Myers, FL that is under contract to sell.
(C)	Does not include unamortized debt issuance costs of $7,785,657.

Second Quarter FY 2018 Supplemental of Monmouth Real Estate Investment Corp. Page 15 of 23

Recent Acquisitions During Fiscal 2018

(unaudited)

				Fiscal Year	Square		Annual		Rent Per		Lease	Purchase		Initial Mortgage
No	Tenant	City (MSA)	State	Acquisition	Footage		Rent		sf Occup.		Expiration	Price		Balance
1	FedEx Corporation	Charleston	SC	2018		121,683	$	1,315,000		10.81	8/31/2032	$	21,872,170	$	14,200,000
2	Amazon.com Services, Inc.	Oklahoma City	OK	2018		300,000		1,884,000		6.28	10/31/2027		30,250,000		19,600,000
3	Shaw Industries, Inc.	Savannah	GA	2018		831,764		3,551,000		4.27	9/30/2027		57,483,636		33,300,000
	Total as of 3/31/18					1,253,447	$	6,750,000	$	5.39		$	109,605,806	$	67,100,000

Acquisitions Subsequent to 3/31/18  

1	B. Braun Medical Inc.	Daytona Beach	FL	2018	399,440		2,128,000		5.33	4/1/2028		30,750,540		19,500,000
	Total Fiscal 2018				1,652,887	$	8,878,000	$	5.37		$	140,356,346	$	86,600,000

Second Quarter FY 2018 Supplemental of Monmouth Real Estate Investment Corp. Page 16 of 23

Property Table

(unaudited)

													Rent		Lease Exp.
				Fiscal Year					Square		Annual		Per sf		Term in		Undepreciated		Mortgage
No	Tenant	City (MSA)	State	Acquisition		Occup.			Footage		Rent		Occup.		Years		Cost		Balance
1	Milwaukee Electric Tool Corporation	Olive Branch (Memphis, TN)	MS		2013		100.0	%		861,889	$	3,032,000	$	3.52		10.3	$	36,914,917	$	22,600,414
2	Shaw Industries, Inc.	Savannah	GA		2018		100.0	%		831,764		3,551,000		4.27		9.5		56,025,945		33,146,461
3	ULTA, Inc.	Greenwood (Indianapolis)	IN		2015		100.0	%		671,354		2,702,000		4.02		7.3		37,512,071		20,828,554
4	Jim Beam Brands Company	Frankfort (Lexington)	KY		2015		100.0	%		599,840		2,051,000		3.42		6.8		28,000,000		17,105,559
5	TreeHouse Private Brands, Inc.	Buckner (Louisville)	KY		2014		100.0	%		558,600		2,206,000		3.95		15.6		26,807,852		15,663,877
6	FedEx Corporation	Memphis	TN		2010		100.0	%		449,900		1,327,000		2.95		1.2		14,614,986		5,476,633
7	Woodstream Corporation	St. Joseph	MO		2001		100.0	%		256,000		914,000		3.57		3.5		8,912,151		-0-
	Altec Industries, Inc.	St. Joseph	MO		2001		100.0	%		126,880		371,000		2.92		4.9		4,417,086		-0-
8	CBOCS Distribution, Inc. (Cracker Barrel)	Lebanon (Nashville)	TN		2011		100.0	%		381,240		1,447,000		3.80		6.3		14,215,126		7,334,231
9	Best Buy Warehousing Logistics, Inc.	Streetsboro (Cleveland)	OH		2012		100.0	%		368,060		1,676,000		4.55		3.8		19,600,000		9,598,178
10	FedEx Ground Package System, Inc.	Concord (Charlotte)	NC		2017		100.0	%		354,482		2,537,000		7.16		14.2		40,043,145		25,529,941
11	FedEx Ground Package System, Inc.	Mesquite (Dallas)	TX		2017		100.0	%		351,874		3,195,000		9.08		14.0		49,880,493		31,783,406
12	FedEx Ground Package System, Inc.	Walker (Grand Rapids)	MI		2017		100.0	%		343,483		2,102,000		6.12		13.8		31,654,987		20,004,458
13	FedEx Ground Package System, Inc.	Hamburg (Buffalo)	NY		2017		100.0	%		338,584		2,313,000		6.83		13.0		34,850,000		21,936,853
14	FedEx Ground Package System, Inc.	Concord (Charlotte)	NC		2016		100.0	%		330,717		2,237,000		6.76		7.3		33,044,797		18,376,530
15	FedEx Ground Package System, Inc.	Indianapolis	IN		2014		100.0	%		327,822		1,715,000		5.23		9.6		25,504,083		10,914,244
16	Autoneum North America, Inc.	Aiken (Augusta, GA)	SC		2017		100.0	%		315,560		1,703,000		5.40		14.1		21,040,395		14,853,051
17	FedEx Ground Package System, Inc.	Olathe (Kansas City)	KS		2016		100.0	%		313,763		2,200,000		7.01		13.2		31,737,000		20,538,248
18	FedEx Ground Package System, Inc.	Davenport (Orlando)	FL		2016		100.0	%		310,922		2,609,000		8.39		13.1		37,780,000		24,396,953
19	FedEx Ground Package System, Inc.	Ft. Worth (Dallas)	TX		2015		100.0	%		304,608		2,373,000		7.79		12.1		35,300,832		21,441,119
20	Science Applications International Corporation	Hanahan (Charleston)	SC		2005		100.0	%		302,400		1,491,000		4.93		1.1		13,390,441		-0-
21	Amazon.com Services, Inc.	Oklahoma City	OK		2018		100.0	%		300,000		1,884,000		6.28		9.6		29,878,942		19,406,304
22	International Paper Company	Kenton	OH		2017		100.0	%		298,472		1,244,000		4.17		9.4		17,881,607		11,763,287
23	FedEx Ground Package System, Inc.	Jacksonville	FL		2015		100.0	%		297,579		1,998,000		6.71		11.8		30,732,090		16,812,452
24	Western Container Corp. (Coca-Cola)	Tolleson (Phoenix)	AZ		2003		100.0	%		283,358		1,361,000		4.80		9.1		16,824,226		4,126,383
25	International Paper Company	Edwardsville (Kansas City)	KS		2014		100.0	%		280,000		1,348,000		4.81		5.4		18,294,108		9,563,513
26	NF&M International, Inc.	Monaca (Pittsburgh)	PA		1988		68.4	%		255,658		835,000		4.78		6.8		7,897,197		-0-
27	FedEx Ground Package System, Inc.	Orion	MI		2007		100.0	%		245,633		1,908,000		7.77		5.3		22,885,635		-0-
28	FedEx Ground Package System, Inc.	Homestead (Miami)	FL		2017		100.0	%		237,756		2,282,000		9.60		14.0		37,873,120		23,958,312
29	Anda Pharmaceuticals, Inc.	Olive Branch (Memphis, TN)	MS		2012		100.0	%		234,660		1,205,000		5.14		4.3		14,550,000		7,871,470
30	UGN, Inc.	Monroe (Cincinnati)	OH		2015		100.0	%		232,200		1,070,000		4.61		11.9		13,017,528		7,369,500
31	FedEx Ground Package System, Inc.	Colorado Springs	CO		2016		100.0	%		225,362		1,832,000		8.13		7.8		28,500,000		17,146,993
32	Mickey Thompson Performance Tires and Wheels (Cooper Tire)	Stow	OH		2017		100.0	%		219,765		1,501,000		6.83		9.4		18,934,065		12,443,758
33	Rinnai America Corporation	Griffin (Atlanta)	GA		2006		100.0	%		218,120		831,000		3.81		2.8		14,885,306		-0-
34	FedEx Ground Package System, Inc.	Ft. Myers	FL		2017		100.0	%		213,672		1,418,000		6.64		9.4		21,663,635		13,655,055
35	FedEx Ground Package System, Inc.	Burlington (Seattle/Everett)	WA		2016		100.0	%		210,445		1,962,000		9.32		12.4		30,228,547		18,303,162
36	FedEx Ground Package System, Inc.	Sauget (St. Louis, MO)	IL		2015		100.0	%		198,773		1,036,000		5.21		11.2		15,204,950		8,857,638
37	Anheuser-Busch, Inc.	Granite City (St. Louis, MO)	IL		2001		100.0	%		184,800		821,000		4.44		3.7		12,697,848		-0-
38	Carrier Corporation (United Technologies)	Carrollton (Dallas)	TX		2010		100.0	%		184,317		1,576,000		8.55		0.8		17,819,203		6,851,064
39	FedEx Ground Package System, Inc.	Spring (Houston)	TX		2014		100.0	%		181,176		1,581,000		8.73		6.5		19,294,396		8,234,439
40	Carlisle Tire & Wheel Company	Edwardsville (Kansas City)	KS		2003		100.0	%		179,280		739,000		4.12		5.3		7,232,986		-0-
41	FedEx Ground Package System, Inc.	Ft. Mill (Charlotte, NC)	SC		2010		100.0	%		176,939		1,415,000		8.00		5.6		15,413,307		1,041,232
42	FedEx Ground Package System, Inc.	Covington (New Orleans)	LA		2016		100.0	%		175,315		1,262,000		7.20		7.3		18,410,000		11,477,932
43	FedEx Ground Package System, Inc.	Livonia (Detroit)	MI		2013		100.0	%		172,005		1,194,000		6.94		4.0		13,762,030		6,606,869
44	Home Depot USA, Inc.	Montgomery (Chicago)	IL		2004		100.0	%		171,200		997,000		5.82		2.3		11,298,367		-0-
45	FedEx Ground Package System, Inc.	Tampa	FL		2004		100.0	%		170,779		1,624,000		9.51		8.3		19,696,227		5,533,371
46	FedEx Ground Package System, Inc.	Edinburg	TX		2011		100.0	%		164,207		1,097,000		6.68		8.5		12,039,014		-0-
47	FedEx Ground Package System, Inc.	Lindale (Tyler)	TX		2015		100.0	%		163,378		725,000		4.44		6.3		9,965,550		5,829,666
48	Bunzl Distribution Midcentral, Inc.	Kansas City	MO		2015		100.0	%		158,417		752,000		4.75		3.5		9,651,226		6,716,065
49	FedEx Ground Package System, Inc.	Oklahoma City	OK		2012		100.0	%		158,340		1,048,000		6.62		7.3		12,584,462		3,670,613
50	FedEx Ground Package System, Inc.	Waco	TX		2012		100.0	%		150,710		1,078,000		7.15		7.4		12,551,368		4,381,125
51	FedEx Ground Package System, Inc.	Beltsville (Washington, DC)	MD		2001		100.0	%		148,881		1,426,000		9.58		0.3		14,512,355		-0-
52	Victory Packaging, L.P.	Fayetteville	NC		1997		100.0	%		148,000		502,000		3.39		2.9		5,451,629		-0-
53	FedEx Ground Package System, Inc.	El Paso	TX		2006		100.0	%		144,149		1,345,000		9.33		5.5		12,431,192		-0-
54	FedEx Ground Package System, Inc.	Cocoa	FL		2008		100.0	%		144,138		1,112,000		7.71		6.5		14,127,449		-0-
55	FedEx Ground Package System, Inc.	Cudahy (Milwaukee)	WI		2001		100.0	%		139,564		827,000		5.93		9.3		9,382,361		-0-
56	Challenger Lifts, Inc. (Snap-On Inc.)	Louisville	KY		2016		100.0	%		137,500		838,000		6.09		8.2		11,304,000		6,721,455
57	FedEx Ground Package System, Inc.	Richfield (Cleveland)	OH		2006		100.0	%		131,152		1,493,000		11.38		6.5		16,435,478		-0-
58	General Electric Company	Imperial (Pittsburgh)	PA		2016		100.0	%		125,860		1,321,000		10.50		7.8		19,950,000		11,585,192
59	FedEx Ground Package System, Inc.	Wheeling (Chicago)	IL		2003		100.0	%		123,000		1,272,000		10.34		9.2		18,537,652		-0-
60	FedEx Ground Package System, Inc.	Altoona	PA		2014		100.0	%		122,522		651,000		5.31		5.4		9,008,650		3,450,005
61	FedEx Corporation	Charleston	SC		2018		100.0	%		121,683		1,315,000		10.81		14.4		21,487,206		14,029,526
62	FedEx Corporation	Mechanicsville (Richmond)	VA		2001		100.0	%		112,799		541,000		4.80		5.1		7,785,011		-0-
63	FedEx Corporation	Orlando	FL		2008		100.0	%		110,638		666,000		6.02		9.7		8,554,432		3,970,870
64	Bunzl Distribution Oklahoma, Inc.	Oklahoma City	OK		2017		100.0	%		110,361		722,000		6.54		6.4		8,728,439		5,738,699
65	Style Crest, Inc.	Winston-Salem	NC		2002		100.0	%		106,507		387,000		3.63		3.0		7,238,613		-0-

Second Quarter FY 2018 Supplemental of Monmouth Real Estate Investment Corp. Page 17 of 23

Property Table

(unaudited)

																Lease
					Fiscal Year					Square		A nnual		Rent  Per sf		Exp. Term in		Undepreciated			Mortgage
No	Tenant		City (MSA)	State	Acquisition		Occup.			Footage		Rent		Occup.		Years		Cost			Balance
66	FedEx Ground Package System, Inc.		Cheektowaga (Buffalo)	NY		2000		100.0	%		104,981	$	966,000	$	9.20		1.4	$	10,960,823			-0-
67	FedEx Ground Package System, Inc.		West Chester Twp. (Cincinnati)	OH		1999		100.0	%		103,818		543,000		5.23		5.4		5,733,686			1,689,063
68	FedEx Ground Package System, Inc.		Roanoke	VA		2013		100.0	%		103,402		755,000		7.30		5.1		10,200,000			4,633,482
69	Pittsburgh Glass Works, LLC		O' Fallon (St. Louis)	MO		1994		100.0	%		102,135		427,000		4.18		0.2		4,245,913			-0-
70	FedEx Ground Package System, Inc.		Green Bay	WI		2013		100.0	%		99,102		468,000		4.72		5.2		6,570,000			2,800,096
71	Holland 1916 Inc.		Liberty (Kansas City)	MO		1998		100.0	%		95,898		349,000		3.64		1.2		7,397,881			-0-
72	FedEx Corporation		Jacksonville	FL		1999		100.0	%		95,883		518,000		5.40		1.2		6,383,328			-0-
73	FedEx Corporation		Tampa	FL		2006		100.0	%		95,662		603,000		6.30		9.7		7,666,686			-0-
74	FedEx Ground Package System, Inc.		Hanahan (Charleston)	SC		2005		100.0	%		91,776		675,000		7.35		0.7		7,614,653			621,616
75	National Oilwell Varco, Inc.		Houston	TX		2010		100.0	%		91,295		754,000		8.26		4.5		8,163,278			2,388,059
76	FedEx Corporation		Omaha	NE		1999		100.0	%		89,115		446,000		5.00		5.6		5,944,691			-0-
77	Joseph T. Ryerson and Son, Inc.		Elgin (Chicago)	IL		2002		100.0	%		89,052		506,000		5.68		1.8		6,977,442			-0-
78	FedEx Ground Package System, Inc.		Huntsville	AL		2005		100.0	%		88,653		605,000		6.82		8.3		6,661,819			481,485
79	Vacant	(B)	Ft. Myers	FL		2003		0.0	%		87,500		-0-		na		-		5,022,297			-0-
80	CHEP USA, Inc.		Roanoke	VA		2007		100.0	%		83,000		500,000		6.02		6.9		7,405,447			-0-
81	FedEx Corporation		Bedford Heights (Cleveland)	OH		2007		100.0	%		82,269		408,000		4.96		0.4		6,919,836			-0-
82	RGH Enterprises, Inc. (Cardinal Health)		Halfmoon (Albany)	NY		2012		100.0	%		75,000		607,000		8.09		3.7		5,525,600			-0-
83	FedEx Corporation		Schaumburg (Chicago)	IL		1997		100.0	%		73,500		478,000		6.50		9.0		5,177,940			-0-
84	FedEx Corporation		Romulus (Detroit)	MI		1998		100.0	%		71,933		370,000		5.14		3.2		4,673,856			-0-
85	FedEx Ground Package System, Inc.		Denver	CO		2005		100.0	%		69,865		564,000		8.07		0.3		6,354,051			582,850
86	Tampa Bay Grand Prix		Tampa	FL		2005		100.0	%		68,385		297,000		4.34		2.5		5,677,982			-0-
87	FedEx Ground Package System, Inc.		Colorado Springs	CO		2006		100.0	%		68,370		644,000		9.42		0.5		7,204,472			894,806
88	Sherwin-Williams Company		Rockford	IL		2011		100.0	%		66,387		481,000		7.25		5.8		5,551,227			-0-
89	Various Tenants at Retail Shopping Center		Somerset	NJ		1970		100.0	%		64,220		807,000		12.57		na		3,072,882			-0-
90	The American Bottling Company (Dr Pepper Snapple)		Cincinnati	OH		2015		100.0	%		63,840		481,000		7.53		11.5		6,750,000			-0-
91	FedEx Corporation		Chattanooga	TN		2007		100.0	%		60,637		319,000		5.26		4.6		5,016,518			-0-
92	SOFIVE, Inc.		Carlstadt (New York, NY)	NJ		2001		100.0	%		60,400		558,000		9.24		6.8		4,910,208			1,662,833
93	FedEx Ground Package System, Inc.		Stewartville (Rochester)	MN		2013		100.0	%		60,398		372,000		6.16		5.2		5,220,000			2,243,913
94	Carrier Enterprise, LLC (United Technologies)		Richmond	VA		2004		100.0	%		60,000		324,000		5.40		0.7		4,768,309			-0-
95	FedEx Ground Package System, Inc.		Augusta	GA		2005		100.0	%		59,358		501,000		8.44		3.3		5,363,305			452,166
96	Kellogg Sales Company		Newington (Hartford)	CT		2001		100.0	%		54,812		329,000		6.00		1.9		3,494,108			-0-
97	Siemens Real Estate		Lebanon (Cincinnati)	OH		2012		100.0	%		51,130		485,000		9.49		1.1		4,452,425			-0-
98	FedEx Corporation		Charlottesville	VA		1999		100.0	%		48,064		329,000		6.85		9.4		4,356,988			-0-
99	FedEx Ground Package System, Inc.		Corpus Christi	TX		2012		100.0	%		46,253		436,000		9.43		3.4		4,783,588			-0-
100	The American Bottling Company (Dr Pepper Snapple)		Tulsa	OK		2014		100.0	%		46,240		262,000		5.67		5.9		3,748,031			1,749,659
101	Heartland Coca-Cola Bottling Company, LLC (Coca-Cola)		Topeka	KS		2009		100.0	%		40,000		332,000		8.30		3.5		3,679,843			992,202
102	Collins Aerospace Systems (United Technologies)		Rockford	IL		2015		100.0	%		38,833		364,000		9.37		9.3		5,100,000			-0-
103	Foundation Building Materials, LLC		Urbandale (Des Moines)	IA		1994		100.0	%		36,270		172,000		4.74		9.8		2,284,460			-0-
104	FedEx Corporation		Richland (Jackson)	MS		1994		100.0	%		36,000		120,000		3.33		6.0		1,900,691			-0-
105	FedEx Corporation		Punta Gorda	FL		2007		100.0	%		34,624		284,000		8.20		9.3		4,133,510			-0-
106	FedEx Corporation		Lakeland	FL		2006		100.0	%		32,105		155,000		4.83		9.7		1,982,532			-0-
107	FedEx Corporation		Augusta	GA		2006		100.0	%		30,184		121,000		4.01		4.7		1,977,779			-0-
108	Graybar Electric Company		Ridgeland (Jackson)	MS		1993		100.0	%		26,340		109,000		4.14		1.3		1,883,306			-0-
109	Sherwin-Williams Company		Burr Ridge (Chicago)	IL		1997		100.0	%		12,500		162,000		12.96		3.6		1,692,901			-0-
	Total as of 3/31/18							99.2	%		19,928,001	$	116,780,000	$	5.91		7.8	$	1,552,452,006	(A)	$	639,836,890
	Acquisitions Subsequent to 3/31/18
110	B. Braun Medical Inc.		Daytona Beach	FL		2018		100	%		399,440		2,128,000		5.33		10.0
	Pro Forma Total with Acquisitions Subsequent to 3/31/18							99.2	%		20,327,441	$	118,908,000	$	5.90		7.8

(A)	Does not include unamortized debt issuance costs of $7,785,657.
(B)	In contract to sell this vacant property.

Second Quarter FY 2018 Supplemental of Monmouth Real Estate Investment Corp. Page 18 of 23

Definitions

Investors and analysts following the real estate industry utilize funds from operations (“FFO”), core funds from operations (“Core FFO”), adjusted funds from operations (“AFFO”), net operating income (“NOI”), Same Property NOI, Same Property Cash NOI, and earnings before interest, taxes, depreciation and amortization for real estate, (“EBITDAre”) & (“Adjusted EBITDA”) 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, EBITDAre, Adjusted 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 to exclude 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 interest expense and general and administrative expenses. EBITDAre and Adjusted 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 supplemental tool to evaluate the Company’s performance. In addition, NOI, Same Property NOI, Same Property Cash NOI, EBITDAre, Adjusted 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 the following non-U.S. GAAP measures as follows:

FFO, as defined by The National Association of Real Estate Investment Trusts (NAREIT), to be equal to net income 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. NAREIT created FFO as a non-U.S. GAAP supplemental measure of REIT operating performance and is used by industry analysts and investors as a supplemental operating performance measure of a REIT.

Core FFO is calculated as FFO plus acquisition costs.

AFFO is calculated as Core FFO plus amortization of financing costs; stock compensation expense, deprecation of corporate office tenant improvements and non-recurring other expenses, less gain on sale of securities transactions; effects of non-cash U.S. GAAP straight-line rent adjustments and recurring capital expenditures. 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 from property operations is calculated as net income attributable to common shareholders, as defined by U.S. GAAP, plus preferred dividends, general & administrative expenses, acquisitions costs, depreciation, amortization of capitalized lease costs & intangible assets and interest expense, including amortization of financing costs, less dividend and interest income, gain on sale of securities transactions, and gain on sale of real estate investments. The components of NOI consist of recurring rental and reimbursement revenue, less real estate taxes and operating expenses, such as insurance, utilities, and repairs and maintenance and other expenses.

Same Property NOI is calculated as 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 calculated as the Same Property NOI adjusted to exclude the effect of non-cash U.S. GAAP straight-line rent adjustment for the properties included in the Same Property NOI calculation.

EBITDAre, as defined by NAREIT, is net income attributable to common shareholders, as defined by U.S. GAAP, plus preferred dividends, interest expense, including amortization of financing costs, depreciation and amortization and plus losses and minus gains on sales of real estate investments.

Adjusted EBITDA is calculated as EBITDAre plus acquisition costs, net amortization of acquired above and below market lease revenue and plus losses and minus gains on sale of securities transactions.

FFO, Core FFO, AFFO, NOI, Same Property NOI, Same Property Cash NOI, EBITDAre and Adjusted EBITDA, 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. FFO, Core FFO, AFFO, NOI, Same Property NOI, Same Property Cash NOI, EBITDAre and Adjusted EBITDA 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. FFO, Core FFO, AFFO, NOI, Same Property NOI, Same Property Cash NOI, EBITDAre and Adjusted EBITDA, as currently calculated by the Company, may not be comparable to similarly titled, but variously calculated, measures of other REITs.

Second Quarter FY 2018 Supplemental of Monmouth Real Estate Investment Corp. Page 19 of 23

FOR IMMEDIATE RELEASE May 8, 2018

Contact: Susan Jordan

732-577-9996

MONMOUTH REAL ESTATE REPORTS RESULTS FOR

THE SECOND QUARTER ENDED MARCH 31, 2018

FREEHOLD, NJ, May 8, 2018........ Monmouth Real Estate Investment Corporation (NYSE:MNR) reported Net Income Attributable to Common Shareholders of $7,397,000 or $0.10 per diluted share for the three months ended March 31, 2018 as compared to $4,843,000 or $0.07 per diluted share for the three months ended March 31, 2017 representing an increase per share of 43%. Core Funds from Operations (Core FFO) were $16,830,000 or $0.22 per diluted share for the three months ended March 31, 2018 as compared to $12,396,000 or $0.17 per diluted share for the three months ended March 31, 2017 representing an increase in Core FFO per share of 29%. Adjusted Funds from Operations (AFFO), for the three months ended March 31, 2018 were $16,847,000 or $0.22 per diluted share versus $12,511,000 or $0.18 per diluted share for the three months ended March 31, 2017 representing an increase in AFFO per share of 22%.

A summary of significant financial information for the three and six months ended March 31, 2018 and 2017 is as follows:

	Three Months Ended March 31,
	2018		2017
Rental Revenue	$	28,610,000	$	23,611,000
Reimbursement Revenue	$	5,012,000	$	3,697,000
Net Operating Income (NOI) (1)	$	28,366,000	$	23,168,000
Total Expenses	$	16,921,000	$	13,785,000
Dividend and Interest Income	$	2,888,000	$	1,439,000
Gain on Sale of Securities Transactions	$	11,000	$	-0-
Net Income	$	11,645,000	$	8,425,000
Net Income Attributable to Common Shareholders	$	7,397,000	$	4,843,000
Net Income Attributable to Common Shareholders Per Diluted Common Share	$	0.10	$	0.07
Core FFO (1)	$	16,830,000	$	12,396,000
Core FFO per Diluted Common Share (1)	$	0.22	$	0.17
AFFO (1)	$	16,847,000	$	12,511,000
AFFO per Diluted Common Share (1)	$	0.22	$	0.18
Dividends Declared per Common Share	$	0.17	$	0.16
Weighted Avg. Diluted Common Shares Outstanding		78,156,000		71,407,000

	Six Months Ended March 31,
	2018		2017
Rental Revenue	$	56,302,000	$	46,892,000
Reimbursement Revenue	$	10,061,000	$	7,598,000
Lease Termination Income	$	210,000	$	-0-
Net Operating Income (NOI) (1)	$	55,808,000	$	46,148,000
Total Expenses	$	33,189,000	$	27,048,000
Dividend and Interest Income	$	5,752,000	$	2,731,000
Gain on Sale of Securities Transactions	$	111,000	$	806,000
Gain on Sale of Real Estate Investments	$	5,388,000	$	-0-
Net Income	$	29,275,000	$	18,279,000
Net Income Attributable to Common Shareholders	$	20,710,000	$	10,999,000
Net Income Attributable to Common Shareholders Per Diluted Common Share	$	0.27	$	0.16
Core FFO (1)	$	33,763,000	$	26,253,000
Core FFO per Diluted Common Share (1)	$	0.44	$	0.37
AFFO (1)	$	33,319,000	$	25,450,000
AFFO per Diluted Common Share (1)	$	0.43	$	0.36
Dividends Declared per Common Share	$	0.34	$	0.32
Weighted Avg. Diluted Common Shares Outstanding		77,362,000		70,608,000

A summary of significant balance sheet information as of March 31, 2018 and September 30, 2017 is as follows:

	March 31, 2018		September 30, 2017
Net Real Estate Investments	$	1,351,926,000	$	1,260,856,000
Securities Available for Sale at Fair Value	$	144,630,000	$	123,765,000
Total Assets	$	1,559,892,000	$	1,443,038,000
Fixed Rate Mortgage Notes Payable, net of Unamortized Debt Issuance Costs	$	632,051,000	$	591,364,000
Loans Payable	$	154,342,000	$	120,091,000
Total Shareholders’ Equity	$	750,358,000	$	712,866,000

Second Quarter FY 2018 Supplemental of Monmouth Real Estate Investment Corp. Page 20 of 23

Michael P. Landy, President and CEO, commented on the results for the second quarter of fiscal 2018,

“This was another strong quarter for Monmouth and we are pleased to report continued growth across multiple fronts. During the quarter we:

● Increased our per share AFFO to $0.22, representing a 22% increase over the prior year period

● Increased our Net Income Attributable to Common Shareholders to $0.10 per share, representing a 43% increase over the prior year period

● Increased our Net Operating Income (NOI) by 22% over the prior year period

● Acquired one brand new Class A property comprising 832,000 square feet, for a cost of $57.5 million

● Increased our gross leasable area (GLA) by 20% to 19.9 million square feet over the prior year period. Subsequent to quarter end, our GLA increased to 20.3 million square feet

● Increased our weighted average lease maturity by 5% from 7.4 years at the end of the prior year quarter to 7.8 years at the end of the current quarter

● Renewed six of the sixteen leases scheduled to expire in fiscal 2018. These six leases consist of 569,000 square feet and result in a 3.9% increase in GAAP rents and a 1.5% increase on a cash basis. These lease renewals have a weighted average lease term of 6.1 years

● Reduced our weighted average interest rate on our fixed rate debt by 26 bps to 4.11% as of the current quarter end from 4.37% as of the prior year quarter end

● Extended our weighted average debt maturity on our fixed rate debt by 8% to 11.5 years as of the current quarter end from 10.7 years as of the prior year quarter end, and

● Subsequent to the quarter end, acquired one brand new Class A property comprising 399,000 square feet, for a cost of $30.8 million.”

Mr. Landy further stated, “Monmouth has maintained or increased its common stock dividend for 26 consecutive years. We have increased our AFFO per share by 22% over the prior year quarter and by 19% year over year for the six month period. With a very conservative 77% AFFO dividend payout ratio this quarter, we remain confident about continuing to provide our shareholders with the high-quality, reliable income streams we have delivered for over a quarter century. This quarter represented our 9th consecutive quarter with an occupancy rate of 99% or greater. At quarter end, our weighted average lease maturity increased to 7.8 years, and our weighted average debt maturity increased to 11.5 years.”

“During the quarter, we acquired a brand new 832,000 square foot industrial building for $57.5 million, leased for 10 years to Shaw Industries, a division of Berkshire Hathaway. This property is strategically well located at the Port of Savannah. With over 400 million tons in shipments last year, the recently expanded Panama Canal has been surpassing all projections. In a similar manner to building our large ecommerce exposure, we have assembled a portfolio that is very well positioned to benefit from the remaking of the global supply chain. Subsequent to quarter end, we also acquired a brand new 399,000 square foot industrial building for $30.8 million, leased for 10 years to B. Braun Medical in Daytona Beach, Florida. Through the first half of fiscal 2018, we have acquired four buildings comprising 1.7 million square feet for a total purchase price of $140.4 million.”

“Thus far in fiscal 2018, we have renewed six of the sixteen leases that were set to expire. These six lease renewals total 569,000 square feet, representing 37% of the expiring square footage. These lease renewals resulted in a 3.9% rental increase on a GAAP basis and a 1.5% increase on a cash basis. These six lease renewals have a weighted average lease term of 6.1 years. Two of the remaining sixteen properties were sold, generating substantial gains during the previous quarter. One additional property is under contract for sale and another one has been re-tenanted. We expect to have more to report on the remaining six properties during the second half of fiscal 2018.”

“The rising interest rate environment has resulted in a pronounced sell-off in REIT securities. Our securities portfolio went from $4.1 million in unrealized losses at the end of last quarter to $31.1 million in unrealized losses at the end of this quarter. Because real estate is priced simultaneously in two markets, public and private, arbitrage opportunities can present themselves. The public REIT market now represents a substantial discount to private market valuations. We are confident that this discrepancy will be resolved over time. We increased our securities holdings from $123.8 million at the end of fiscal 2017 to $144.6 million at the end of the current quarter. At quarter end, our securities portfolio represented 8.3% of our undepreciated total assets. Our dividend and interest income increased by 101% over the prior year period, from $1.4 million in the second quarter of fiscal 2017 to $2.9 million in the second quarter of fiscal 2018.”

“Our acquisition pipeline grew over the quarter and currently contains two new Class A build-to-suit industrial buildings. One is a new 363,000 square foot industrial building leased to Amazon. The second property is a new 261,000 square foot industrial building leased to FedEx Ground that is being developed in Charleston, SC. The total purchase price for these two properties is approximately $80.9 million with a weighted average lease term of 12.3 years. We anticipate closing these transactions sometime during the remainder of fiscal 2018 and the first quarter of fiscal 2019. We look forward to reporting continued progress throughout the year.”

Monmouth Real Estate Investment Corporation will host its Second Quarter FY 2018 Financial Results Webcast and Conference Call on Wednesday, May 9, 2018 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 2018 financial results being released herein will be available on the Company’s website at www.mreic.reit in the Investor Relations section, under Filings and Reports.

Second Quarter FY 2018 Supplemental of Monmouth Real Estate Investment Corp. Page 21 of 23

To participate in the Webcast, select the 2Q2018 Webcast and Earnings Call “Link to Webcast” on the homepage of the Company’s website at www.mreic.reit, in the Highlights section, which is located towards the bottom of the homepage. 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 Wednesday, May 9, 2018. It will be available until August 1, 2018, and can be accessed by dialing toll free 877-344-7529 (domestically) and 412-317-0088 (internationally) and entering the passcode 10117592. A transcript of the call and the webcast replay will be available at the Company’s website on the Investor Relations homepage, 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 is a fully-integrated and self-managed real estate company, whose property portfolio consists of 110 properties containing a total of approximately 20.3 million rentable square feet, geographically diversified across 30 states. In addition, the Company owns a portfolio of REIT securities.

Certain statements included in this press release which are not historical facts may be deemed forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. 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 six months ended March 31, 2018 and 2017:

	Three Months Ended						Six Months Ended
	3/31/2018			3/31/2017			3/31/2018			3/31/2017
Net Income Attributable to Common Shareholders	$	7,397,000		$	4,843,000		$	20,710,000		$	10,999,000
Plus: Depreciation Expense (excluding Corporate Office Capitalized Costs)		8,819,000			7,100,000			17,263,000			14,054,000
Plus: Amortization of Intangible Assets		397,000			241,000			741,000			509,000
Plus: Amortization of Capitalized Lease Costs		217,000			212,000			437,000			417,000
Less: (Gain) / Plus: Loss on Sale of Real Estate Investments		-0-			-0-			(5,388,000	)		95,000
FFO Attributable to Common Shareholders		16,830,000			12,396,000			33,763,000			26,074,000
Plus: Acquisition Costs		-0-			-0-			-0-			179,000
Core FFO Attributable to Common Shareholders		16,830,000			12,396,000			33,763,000			26,253,000
Plus: Depreciation of Corporate Office Capitalized Costs		39,000			39,000			79,000			78,000
Plus: Stock Compensation Expense		111,000			166,000			242,000			266,000
Plus: Amortization of Financing Costs		302,000			385,000			596,000			666,000
Less: Gain on Sale of Securities Transactions		(11,000	)		-0-			(111,000	)		(806,000	)
Less: Lease Termination Income		-0-			-0-			(210,000	)		-0-
Less: Recurring Capital Expenditures		(64,000	)		(188,000	)		(284,000	)		(377,000	)
Less: Effect of Non-cash U.S. GAAP Straight-line Rent Adjustment		(360,000	)		(287,000	)		(756,000	)		(630,000	)
AFFO Attributable to Common Shareholders	$	16,847,000		$	12,511,000		$	33,319,000		$	25,450,000

Second Quarter FY 2018 Supplemental of Monmouth Real Estate Investment Corp. Page 22 of 23

The following are the Cash Flows provided (used) by Operating, Investing and Financing Activities for the six months ended March 31, 2018 and 2017:

	Six Months Ended
	3/31/2018			3/31/2017
Operating Activities	$	42,839,000		$	30,846,000
Investing Activities		(161,056,000	)		(79,130,000	)
Financing Activities		120,462,000			(24,513,000	)

# # # # #

Second Quarter FY 2018 Supplemental of Monmouth Real Estate Investment Corp. Page 23 of 23