EX-99 2 ex99.htm

 

Exhibit 99

 

 

 

 

 

Table of Contents

 

    Page
Consolidated Balance Sheets   3
Consolidated Statements of Income (Loss)   4
FFO, AFFO and Adjusted EBITDA Reconciliations   5
NOI Reconciliations   6
Financial Highlights   7
Same Property Statistics   8
Consolidated Statements of Cash Flows   10
Capital Structure and Leverage Ratios   11
Debt Maturity   13
Property Table by Tenant   14
Property Table by State   15
Lease Expirations   16
Recent Acquisitions   17
Property Table   18
Definitions   21
Press Release Dated November 23, 2020   22

 

The statement of operations and supplemental statement of operations provided in this supplemental information package present funds from operations (FFO), adjusted funds from operations (AFFO), net operating income (NOI) 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 21 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-K.

 

 

 

Consolidated Balance Sheets

(in thousands except for per share amounts)

 

   As of   As of 
   September 30, 2020   September 30, 2019 
ASSETS          
Real Estate Investments:          
Land  $250,497   $239,299 
Buildings and Improvements   1,793,367    1,627,219 
Total Real Estate Investments   2,043,864    1,866,518 
Accumulated Depreciation   (296,020)   (249,584)
Real Estate Investments   1,747,844    1,616,934 
           
Cash and Cash Equivalents   23,517    20,179 
Securities Available for Sale at Fair Value   108,832    185,250 
Tenant and Other Receivables   5,431    1,335 
Deferred Rent Receivable   12,856    11,199 
Prepaid Expenses   7,554    6,714 
Intangible Assets, net of Accumulated Amortization of $17,330 and $15,686, respectively   16,832    14,970 
Capitalized Lease Costs, net of Accumulated Amortization of $4,286 and $3,378, respectively   5,631    5,670 
Financing Costs, net of Accumulated Amortization of $356 and $1,352, respectively   1,380    144 
Other Assets   9,906    9,553 
TOTAL ASSETS  $1,939,783   $1,871,948 
           
LIABILITIES AND SHAREHOLDERS’ EQUITY          
           
Liabilities:          
Fixed Rate Mortgage Notes Payable, net of Unamortized Debt          
Issuance Costs  $799,507   $744,928 
Loans Payable   75,000    95,000 
Accounts Payable and Accrued Expenses   3,998    3,570 
Other Liabilities   23,673    17,407 
Total Liabilities   902,178    860,905 
           
COMMITMENTS AND CONTINGENCIES          
           
Shareholders’ Equity:          
6.125% Series C Cumulative Redeemable Preferred Stock, $0.01 Par Value Per Share: 21,900 and 16,400 Shares Authorized as of September 30, 2020 and 2019, respectively; 18,880 and 13,907 Shares Issued and Outstanding as of September 30, 2020 and 2019, respectively   471,994    347,678 
Common Stock, $0.01 Par Value Per Share: 200,000 and 188,040 Shares Authorized as of September 30, 2020 and 2019, respectively; 98,054 and 96,399 Shares Issued and Outstanding as of September 30, 2020
and 2019, respectively		   981    964 
Excess Stock, $0.01 Par Value Per Share: 200,000 Shares Authorized as of September 30, 2020 and 2019; No Shares Issued or Outstanding as of September 30, 2020 and 2019   -0-    -0- 
Additional Paid-In Capital   568,998    662,401 
Accumulated Other Comprehensive Income (Loss)   (4,368)   -0- 
Undistributed Income   -0-    -0- 
Total Shareholders’ Equity   1,037,605    1,011,043 
TOTAL LIABILITIES & SHAREHOLDERS’ EQUITY  $1,939,783   $1,871,948 

 

FOURTH QUARTER AND FISCAL YEAR END 2020 SUPPLEMENTAL INFORMATION3

 

Consolidated Statements of Income (Loss)

(in thousands)

 

   For The   For The 
   Three Months Ended   Twelve Months Ended 
   9/30/2020   9/30/2019   9/30/2020   9/30/2019 
INCOME:                    
Rental Revenue  $36,173   $33,846   $141,583   $132,524 
Reimbursement Revenue   6,462    5,824    26,234    22,297 
TOTAL INCOME   42,635    39,670    167,817    154,821 
                     
EXPENSES:                    
Real Estate Taxes   4,989    4,640    20,193    17,010 
Operating Expenses   1,630    1,430    6,888    6,616 
General & Administrative Expenses   2,074    2,661    8,932    9,081 
Non-recurring Severance Expense   -0-    -0-    786    -0- 
Depreciation   12,020    10,953    46,670    43,020 
Amortization of Capitalized Lease Costs and Intangible Assets   871    726    3,180    2,870 
TOTAL EXPENSES   21,584    20,410    86,649    78,597 
                     
OTHER INCOME (EXPENSE):                    
Dividend Income   1,458    3,599    10,445    15,168 
Unrealized Holding Gains (Losses) Arising During the Periods   (10,280)   13,988    (77,380)   (24,680)
Interest Expense, including Amortization of Financing Costs   (9,141)   (9,033)   (36,376)   (36,912)
TOTAL OTHER INCOME (EXPENSE)   (17,963)   8,554    (103,311)   (46,424)
                     
NET INCOME (LOSS)   3,088    27,814    (22,143)   29,800 
                     
Less: Preferred Dividends   7,005    5,124    26,474    18,774 
                     
NET INCOME (LOSS) ATTRIBUTABLE TO COMMON SHAREHOLDERS  $(3,917)  $22,690   $(48,617)  $11,026 

 

FOURTH QUARTER AND FISCAL YEAR END 2020 SUPPLEMENTAL INFORMATION4

 

FFO, AFFO and Adjusted EBITDA Reconciliations

(unaudited) (in thousands)

 

   For The   For The 
   Three Months Ended   Twelve Months Ended 
FFO, AFFO  9/30/2020   9/30/2019   9/30/2020   9/30/2019 
Net Income (Loss) Attributable to Common Shareholders  $(3,917)  $22,690   $(48,617)  $11,026 
Less/Plus: Unrealized Holding (Gains) Losses Arising During the Periods   10,280    (13,988)   77,380    24,680 
Plus: Depreciation Expense (excluding Corporate Office Capitalized Costs)   11,963    10,826    46,437    42,518 
Plus: Amortization of Intangible Assets   598    491    2,137    1,986 
Plus: Amortization of Capitalized Lease Costs   299    261    1,146    987 
FFO Attributable to Common Shareholders   19,223    20,280    78,483    81,197 
Plus: Depreciation of Corporate Office Capitalized Costs   57    126    234    502 
Plus: Stock Compensation Expense   84    210    452    784 
Plus: Amortization of Financing Costs   329    297    1,413    1,253 
Plus: Non-recurring Severance Expense   -0-    -0-    786    -0- 
Less: Effect of Non-cash U.S. GAAP Straight-line Rent Adjustment   (517)   (574)   (1,976)   (1,926)
Less: Recurring Capital Expenditures   (1,009)   (227)   (2,453)   (2,115)
AFFO Attributable to Common Shareholders  $18,167   $20,112   $76,939   $79,695 

 

   For The   For The 
   Three Months Ended   Twelve Months Ended 
Adjusted EBITDA  9/30/2020   9/30/2019   9/30/2020   9/30/2019 
Net Income (Loss) Attributable to Common Shareholders  $(3,917)  $22,690   $(48,617)  $11,026 
Plus: Preferred Dividends   7,005    5,124    26,474    18,774 
Plus: Interest Expense, including Amortization of Financing Costs   9,141    9,033    36,376    36,912 
Plus: Depreciation and Amortization   12,891    11,679    49,850    45,890 
Plus: Net Amortization of Acquired Above and Below Market Lease Revenue   26    26    103    103 
Less/Plus: Unrealized Holding (Gains) Losses Arising During the Periods   10,280    (13,988)   77,380    24,680 
Adjusted EBITDA  $35,426   $34,564   $141,566   $137,385 

 

FOURTH QUARTER AND FISCAL YEAR END 2020 SUPPLEMENTAL INFORMATION5

 

NOI Reconciliations

(unaudited) (in thousands)

 

   For The   For The 
   Three Months Ended   Twelve Months Ended 
Net Operating Income  9/30/2020   9/30/2019   9/30/2020   9/30/2019 
Net Income (Loss) Attributable to Common Shareholders  $(3,917)  $22,690   $(48,617)  $11,026 
Plus: Preferred Dividends Expense   7,005    5,124    26,474    18,774 
Plus: General & Administrative Expenses   2,074    2,661    8,932    9,081 
Plus: Non-recurring Severance Expense   -0-    -0-    786    -0- 
Plus: Depreciation   12,020    10,953    46,670    43,020 
Plus: Amortization of Capitalized Lease Costs and Intangible Assets   871    726    3,180    2,870 
Plus: Interest Expense, including Amortization of Financing Costs   9,141    9,033    36,376    36,912 
Less/Plus: Unrealized Holding (Gains) Losses Arising During the Periods   10,280    (13,988)   77,380    24,680 
Less: Dividend Income   (1,458)   (3,599)   (10,445)   (15,168)
Net Operating Income – NOI  $36,016   $33,600   $140,736   $131,195 

 

   For The   For The 
   Three Months Ended   Twelve Months Ended 
Components of Net Operating Income Consists of:  9/30/2020   9/30/2019   9/30/2020   9/30/2019 
Revenues:                    
Rental Revenue  $36,173   $33,846   $141,583   $132,524 
Reimbursement Revenue   6,462    5,824    26,234    22,297 
Total Rental and Reimbursement Revenue   42,635    39,670    167,817    154,821 
                     
Expenses:                    
Real Estate Taxes   4,989    4,640    20,193    17,010 
Operating Expenses   1,630    1,430    6,888    6,616 
Total Real Estate Taxes and Operating Expenses   6,619    6,070    27,081    23,626 
Net Operating Income – NOI  $36,016   $33,600   $140,736   $131,195 

 

FOURTH QUARTER AND FISCAL YEAR END 2020 SUPPLEMENTAL INFORMATION6

 

Financial Highlights

(unaudited) (in thousands except for per share amounts)

 

   For The   For The 
   Three Months Ended   Twelve Months Ended 
   9/30/2020   9/30/2019   Change (%)   9/30/2020   9/30/2019   Change (%) 
                         
Weighted Average Common Shares Outstanding                              
Basic   97,990    95,667    2.4%   98,082    93,387    5.0%
Diluted   98,083    95,759    2.4%   98,164    93,485    5.0%
                               
Net Income (Loss) Attributable to Common Shareholders  $(3,917)  $22,690    (117.3)%  $(48,617)  $11,026    (540.9)%
                               
Basic  $(0.04)  $0.24    (116.7)%  $(0.50)  $0.12    (516.7)%
Diluted   (0.04)   0.24    (116.7)%   (0.50)   0.12    (516.7)%
                               
Net Operating Income – NOI  $36,016   $33,600    7.2%  $140,736   $131,195    7.3%
                               
Basic  $0.37   $0.35    5.7%  $1.43   $1.40    2.1%
Diluted   0.37    0.35    5.7%   1.43    1.40    2.1%
                               
Funds From Operations – FFO  $19,223   $20,280    (5.2)%  $78,483   $81,197    (3.3)%
                               
Basic  $0.20   $0.21    (4.8)%  $0.80   $0.87    (8.0)%
Diluted   0.20    0.21    (4.8)%   0.80    0.87    (8.0)%
                               
Adjusted Funds From Operations – AFFO  $18,167   $20,112    (9.7)%  $76,939   $79,695    (3.5)%
                               
Basic  $0.19   $0.21    (9.5)%  $0.78   $0.85    (8.2)%
Diluted   0.19    0.21    (9.5)%   0.78    0.85    (8.2)%
                               
Dividends Declared per Common Share  $0.17   $0.17        $0.68   $0.68      
                               
Dividend/AFFO Payout Ratio   89.5%   81.0%        87.2%   80.0%     

 

FOURTH QUARTER AND FISCAL YEAR END 2020 SUPPLEMENTAL INFORMATION7

 

Same Property Statistics

(unaudited) (in thousands except for square feet)

 

  

For The

Three Months Ended

         
   9/30/2020       9/30/2019   Change   Change % 
                     
Total Square Feet / Total Properties   23,398,377 / 119         22,250,880 / 114    1,147,497    5.2%
                          
Occupancy Percentage at End of Period   99.4%        98.9%   50 bps    0.5%
                          
Same Property Square Feet / Number of Same Properties        21,802,835 / 113                
                          
Same Property Occupancy Percentage at End of Period   99.4%        98.9%   50 bps    0.5%
                          
Same Property Net Operating Income (NOI) (GAAP)  $33,073        $33,173   $(100)   (0.3)%
                          
Reversal of Effect of Non-cash U.S. GAAP Straight-line Rent Adjustment   (337)        (547)   210      
Same Property Cash NOI  $32,736        $32,626   $110    0.3%

 

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

 

Reconciliation of Same Property NOI to Total NOI

(unaudited) (in thousands)

 

  

For The

Three Months Ended

         
   9/30/2020   9/30/2019   Change   Change % 
                 
Same Property NOI (GAAP)  $33,073   $33,173   $(100)   (0.3)%
                     
NOI of properties purchased subsequent to
June 30, 2019 (one property purchased during fiscal 2019 and five properties purchased during fiscal 2020)		   2,943    427           
                     
NOI of property expanded subsequent to
June 30, 2019 (no properties expanded during fiscal 2019 or fiscal 2020)		   -0-    -0-           
                     
Total NOI  $36,016   $33,600   $2,417    8.6%

 

FOURTH QUARTER AND FISCAL YEAR END 2020 SUPPLEMENTAL INFORMATION8

 

Same Property Statistics

(unaudited) (in thousands except for square feet)

 

  

For The

Twelve Months Ended

         
   9/30/2020       9/30/2019   Change   Change % 
                     
Total Square Feet / Total Properties   23,398,377 / 119         22,250,880 / 114    1,147,497    5.2%
                          
Occupancy Percentage at End of Period   99.4%        98.9%   50 bps    0.5%
                          
Same Property Square Feet / Number of Same Properties        20,942,170 / 110                
                          
Same Property Occupancy Percentage at End of Period   99.3%        98.8%   50 bps    0.5%
                          
Same Property Net Operating Income (NOI) (GAAP)  $123,026        $122,535   $491    0.4%
                          
Reversal of Effect of Non-cash U.S. GAAP Straight-line Rent Adjustment   (1,113)        (1,840)   727      
Same Property Cash NOI  $121,913        $120,695   $1,218    1.0%

 

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

 

Reconciliation of Same Property NOI to Total NOI

(unaudited) (in thousands)

 

  

For The

Twelve Months Ended

         
   9/30/2020   9/30/2019   Change   Change % 
                 
Same Property NOI (GAAP)  $123,026   $122,535   $491    0.4%
                     
NOI of properties purchased subsequent to
September 30, 2018 (three properties purchased during fiscal 2019 and five properties purchased during fiscal 2020)		   15,668    7,037           
                     
NOI of property expanded subsequent to
September 30, 2018 (one property expanded during fiscal 2019)		   2,042    1,623           
                     
Total NOI  $140,736   $131,195   $9,541    7.3%

 

FOURTH QUARTER AND FISCAL YEAR END 2020 SUPPLEMENTAL INFORMATION9

 

Consolidated Statements of Cash Flows

(in thousands)

 

   For The 
   Twelve Months Ended 
   9/30/2020   9/30/2019 
CASH FLOWS FROM OPERATING ACTIVITIES          
Net Income (Loss)  $(22,143)  $29,800 
Noncash Items Included in Net Income (Loss):          
Depreciation & Amortization   51,263    47,142 
Stock Compensation Expense   452    784 
Deferred Straight Line Rent   (1,976)   (1,926)
Securities Available for Sale Received as Dividend Income   (1,213)   (874)
Unrealized Holding Losses Arising During the Periods   77,380    24,680 
Changes in:          
Tenant & Other Receivables   (3,993)   18 
Prepaid Expenses   (840)   (524)
Other Assets & Capitalized Lease Costs   (2,052)   729 
Accounts Payable, Accrued Expenses & Other Liabilities   1,951    919 
NET CASH PROVIDED BY OPERATING ACTIVITIES   98,829    100,748 
           
CASH FLOWS FROM INVESTING ACTIVITIES          
Purchase of Real Estate & Intangible Assets   (175,261)   (138,964)
Capital Improvements   (5,996)   (14,734)
Return of Deposits on Real Estate   2,000    200 
Deposits Paid on Acquisitions of Real Estate   (1,670)   (6,000)
Proceeds from Securities Available for Sale Called for Redemption   251    -0- 
Purchase of Securities Available for Sale   -0-    (54,136)
NET CASH USED IN INVESTING ACTIVITIES   (180,676)   (213,634)
           
CASH FLOWS FROM FINANCING ACTIVITIES          
Proceeds from Fixed Rate Mortgage Notes Payable   110,310    96,500 
Principal Payments on Fixed Rate Mortgage Notes Payable   (55,855)   (63,350)
Net Repayments on Loans Payable   (20,000)   (91,609)
Financing Costs Paid on Debt   (2,525)   (662)
Proceeds from Underwritten Public Offering of Common Stock,
net of offering costs		   -0-    132,338 
Proceeds from At-The-Market 6.125% Series C Preferred Stock,
net of offering costs		   122,382    58,199 
Proceeds from Issuance of Common Stock in the DRIP, net of Dividend Reinvestments   18,815    57,079 
Shares repurchased through the Common Stock Repurchase Plan   (4,276)   -0- 
Proceeds from the Exercise of Stock Options   1,016    567 
Preferred Dividends Paid   (25,839)   (18,465)
Common Dividends Paid, net of Reinvestments   (58,843)   (46,856)
NET CASH PROVIDED BY FINANCING ACTIVITIES   85,185    123,741 
           
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS   3,338    10,855 
CASH AND CASH EQUIVALENTS - BEGINNING OF YEAR   20,179    9,324 
CASH AND CASH EQUIVALENTS - END OF YEAR  $23,517   $20,179 

 

FOURTH QUARTER AND FISCAL YEAR END 2020 SUPPLEMENTAL INFORMATION10

 

Capital Structure and Leverage Ratios

(unaudited) (in thousands except for per share amounts)

 

   As of   As of 
   9/30/2020   9/30/2019 
         
Fixed Rate Mortgage Notes Payable, net of Unamortized Debt Issuance Costs  $799,507   $744,928 
Loans Payable   75,000    95,000 
Total Debt   874,507    839,928 
           
6.125% Series C Cumulative Redeemable Preferred Stock   471,994    347,678 
Common Stock, Additional Paid-In-Capital & Other   565,611    663,365 
Total Shareholders’ Equity   1,037,605    1,011,043 
           
Total Book Capitalization   1,912,112    1,850,971 
           
Accumulated Depreciation   296,020    249,584 
Total Undepreciated Book Capitalization  $2,208,132   $2,100,555 
           
Shares Outstanding   98,054    96,399 
Market Price Per Share  $13.85   $14.41 
           
Equity Market Capitalization  $1,358,049   $1,389,107 
Total Debt   874,507    839,928 
Total Preferred Stock   471,994    347,678 
Total Market Capitalization  $2,704,550   $2,576,713 
           
Total Debt  $874,507   $839,928 
less: Cash and Cash Equivalents   23,517    20,179 
Net Debt  $850,990   $819,749 
less: Securities Available for Sale at Fair Value (Securities)   108,832    185,250 
Net Debt Less Securities  $742,158   $634,499 
           
Net Debt / Total Undepreciated Book Capitalization   38.5%   39.0%
Net Debt / Total Market Capitalization   31.5%   31.8%
Net Debt Plus Preferred Stock / Total Market Capitalization   48.9%   45.3%
Net Debt Less Securities / Total Undepreciated Book Capitalization   33.6%   30.2%
Net Debt Less Securities / Total Market Capitalization   27.4%   24.6%
Net Debt Less Securities Plus Preferred Stock / Total Market Capitalization   44.9%   38.1%
           
Weighted Average Interest Rate on Fixed Rate Mortgage Debt   3.98%   4.03%
Weighted Average Term on Fixed Rate Mortgage Debt   11.1 yrs.    11.3 yrs. 
Weighted Average Lease Term   7.1 yrs.    7.6 yrs. 

 

FOURTH QUARTER AND FISCAL YEAR END 2020 SUPPLEMENTAL INFORMATION11

 

Capital Structure and Leverage Ratios

(unaudited) (in thousands)

 

   For the Three Months Ended   For the Twelve Months Ended 
   9/30/2020   9/30/2019   9/30/2020   9/30/2019 
Net Income (Loss) Attributable to Common Shareholders  $(3,917)  $22,690   $(48,617)  $11,026 
Plus: Preferred Dividends   7,005    5,124    26,474    18,774 
Plus: Interest Expense, including Amortization of Financing Costs   9,141    9,033    36,376    36,912 
Plus: Depreciation and Amortization   12,891    11,679    49,850    45,890 
Plus: Net Amortization of Acquired Above and Below Market Lease Revenue   26    26    103    103 
Less/Plus: Unrealized Holding (Gains) Losses Arising During the Periods   10,280    (13,988)   77,380    24,680 
Adjusted EBITDA  $35,426   $34,564   $141,566   $137,385 
                     
Interest Expense, including Amortization of Financing Costs  $9,141   $9,033   $36,376   $36,912 
Preferred Dividends   7,005    5,124    26,474    18,774 
Total Fixed Charges  $16,146   $14,157   $62,850   $55,686 
                     
Interest Coverage    3.9 x     3.8 x     3.9 x    3.7 x 
Fixed Charge Coverage    2.2 x     2.4 x     2.3 x    2.5 x 
                     
Net Debt  $850,990   $819,749   $850,990   $819,749 
Net Debt Less Securities   742,158    634,499    742,158    634,499 
Total Preferred Stock   471,994    347,678    471,994    347,678 
Annualized Adjusted EBITDA   141,704    138,256    141,566    137,385 
                     
Net Debt / Adjusted EBITDA    6.0 x     5.9 x     6.0 x    6.0 x 
Net Debt Less Securities / Adjusted EBITDA    5.2 x     4.6 x     5.2 x    4.6 x 
Net Debt + Preferred Stock / Adjusted EBITDA    9.3 x     8.4 x     9.3 x    8.5 x 
Net Debt Less Securities + Preferred Stock / Adjusted EBITDA    8.6 x     7.1 x     8.6 x    7.1 x 

 

FOURTH QUARTER AND FISCAL YEAR END 2020 SUPPLEMENTAL INFORMATION12

 

Debt Maturity

(unaudited) (In thousands) 

 

 

          Loans          % of 
Fiscal Year Ended     Mortgages   Payable      Total   Total 
                       
2021     $60,742    -0-      $60,742    6.9%
2022      83,150    -0-       83,150    9.4%
2023      62,095    -0-       62,095    7.0%
2024      75,378    -0-       75,378    8.5%
2025      69,611    75,000   (B)   144,611    16.4%
Thereafter      456,395    -0-       456,395    51.8%
Total as of 9/30/2020  (A)  $807,371   $75,000      $882,371    100.0%
                           
Weighted Average Interest Rate      3.98%   2.92%      3.89%     
Weighted Average Term      11.1 yrs.    4.3 yrs.       10.5 yrs.      

 

  (A) Mortgages does not include unamortized debt issuance costs of $7.9 million.
  (B) Represents a Term Loan maturing January 2025.

 

FOURTH QUARTER AND FISCAL YEAR END 2020 SUPPLEMENTAL INFORMATION13

 

Property Table by Tenant

(unaudited)

 

      Property  Square   Occupied Square   % of Occupied   Annual   % of Total Ann.   Rent Per sf   Undepreciated       Mortgage 
Tenant     Count  Footage   Footage   sf   Rent   Rent   Occup.   Cost       Balance 
                                           
FedEx Ground Package System, Inc.     45   9,101,593    9,101,593    38.9%  $74,007,000    50.0%  $8.13   $1,056,088,968       $448,946,293 
FedEx Corporation     16   1,164,830    1,164,830    5.0%   7,492,000    5.1%   6.43    108,865,892        20,472,843 
FedEx Forward Depots, Inc.     1   449,900    449,900    1.9%   1,394,000    0.9%   3.10    16,092,852        3,303,870 
Total FedEx     62   10,716,323    10,716,323    45.8%   82,893,000    56.0%   7.74    1,181,047,712        472,723,006 
                                                   
Subsidiaries of Amazon.com, Inc.     5   1,491,245    1,491,245    6.4%   10,643,000    7.2%   7.14    166,561,146        94,702,562 
Milwaukee Electric Tool Corporation     1   861,889    861,889    3.7%   3,076,000    2.1%   3.57    36,914,917        18,041,667 
Shaw Industries, Inc.     1   831,764    831,764    3.6%   3,529,000    2.4%   4.24    56,025,945        28,324,173 
ULTA, Inc.     1   671,354    671,354    2.9%   2,755,000    1.9%   4.10    37,765,455        17,346,321 
Jim Beam Brands Company (Beam Suntory)     1   599,840    599,840    2.6%   2,092,000    1.4%   3.49    28,000,000        14,611,158 
International Paper Company     2   578,472    578,472    2.5%   2,639,000    1.8%   4.56    37,024,608        17,873,722 
TreeHouse Private Brands, Inc.     1   558,600    558,600    2.4%   2,246,000    1.5%   4.02    26,807,852        13,795,899 
B. Braun Medical Inc.     1   399,440    399,440    1.7%   2,159,000    1.5%   5.41    30,280,090        17,219,118 
UGN, Inc.     1   387,000    387,000    1.7%   2,088,000    1.4%   5.40    21,576,756        12,560,433 
CBOCS Distribution, Inc. (Cracker Barrel)     1   381,240    381,240    1.6%   1,475,000    1.0%   3.87    14,215,126        -0- 
Best Buy Warehousing Logistics, Inc.     1   368,060    368,060    1.6%   1,709,000    1.2%   4.64    19,600,000        8,024,547 
Toyota Tsusho America, Inc.     1   350,000    350,000    1.5%   1,710,000    1.2%   4.89    25,078,587        16,101,232 
Coca-Cola     2   323,358    323,358    1.4%   1,725,000    1.2%   5.33    20,504,069        2,298,522 
Autoneum North America, Inc.     1   315,560    315,560    1.3%   1,731,000    1.2%   5.49    21,040,396        12,860,736 
Science Applications International Corporation     1   302,400    302,400    1.3%   1,683,000    1.1%   5.57    14,463,148        -0- 
Bunzl USA Holdings, Inc.     2   268,778    268,778    1.1%   1,500,000    1.0%   5.58    18,731,674        10,965,301 
Woodstream Corporation  (A)  1   256,000    256,000    1.1%   932,000    0.6%   3.64    8,958,278        -0- 
Anda Pharmaceuticals, Inc.     1   234,660    234,660    1.0%   1,215,000    0.8%   5.18    14,550,000        6,258,736 
United Technologies Corporation     2   223,150    223,150    1.0%   1,507,000    1.0%   6.75    23,594,917        4,733,413 
Mickey Thompson Performance Tires and Wheels (Cooper Tire)     1   219,765    219,765    0.9%   1,523,000    1.0%   6.93    18,934,065        10,809,364 
Rinnai America Corporation     1   218,120    218,120    0.9%   894,000    0.6%   4.10    15,082,217        -0- 
Anheuser-Busch, Inc.     1   184,800    184,800    0.8%   843,000    0.6%   4.56    12,697,848        -0- 
Carlisle Tire & Wheel Company     1   179,280    179,280    0.8%   765,000    0.5%   4.27    7,282,986        -0- 
NF&M International, Inc.  (B)  1   174,802    174,802    0.7%   841,000    0.6%   4.81    5,437,202        -0- 
Home Depot USA, Inc.     1   171,200    171,200    0.7%   1,064,000    0.7%   6.21    11,303,317        -0- 
Magna Seating of America, Inc.     1   153,000    153,000    0.7%   1,197,000    0.8%   7.82    17,557,830        9,091,417 
Victory Packaging, L.P.     1   148,000    148,000    0.6%   506,000    0.3%   3.42    5,455,379        -0- 
Challenger Lifts, Inc. (Snap-On Inc.)     1   137,500    137,500    0.6%   852,000    0.6%   6.20    11,304,000        5,702,156 
Altec Industries, Inc.   (A)  1   126,880    126,880    0.5%   376,000    0.3%   2.96    4,439,947        -0- 
General Electric Company     1   125,860    125,860    0.5%   1,334,000    0.9%   10.60    19,964,283        9,585,728 
Keurig Dr Pepper     2   110,080    110,080    0.5%   753,000    0.5%   6.84    10,498,031        1,412,573 
Style Crest, Inc.     1   106,507    106,507    0.5%   428,000    0.3%   4.02    7,263,673        -0- 
Sonwil Distribution Center, Inc.     1   104,981    104,981    0.4%   630,000    0.4%   6.00    10,960,823        -0- 
Pittsburgh Glass Works, LLC a Division of VITRO     1   102,135    102,135    0.4%   450,000    0.3%   4.41    4,249,615        -0- 
Dakota Bodies, LLC     1   96,687    96,687    0.4%   378,000    0.3%   3.91    7,797,827        -0- 
National Oilwell Varco, Inc.     1   91,295    91,295    0.4%   796,000    0.5%   8.72    8,190,901        1,102,161 
Joseph T. Ryerson and Son, Inc.     1   89,052    89,052    0.4%   514,000    0.3%   5.77    7,181,536        -0- 
CHEP USA, Inc.     1   83,000    83,000    0.4%   506,000    0.3%   6.10    7,463,672        -0- 
Sherwin-Williams Company     2   78,887    78,887    0.3%   648,000    0.4%   8.21    7,258,078        -0- 
RGH Enterprises, Inc. (Cardinal Health)  (D)  1   75,000    75,000    0.3%   542,000    0.4%   7.23    5,727,161        -0- 
Tampa Bay Grand Prix     1   68,385    68,385    0.3%   361,000    0.2%   5.28    5,677,982        -0- 
Various Tenants at Retail Shopping Center     1   64,220    61,190    0.3%   757,000    0.5%   12.37    3,139,564        -0- 
SOFIVE, Inc.     1   60,400    60,400    0.3%   633,000    0.4%   10.48    5,296,752        1,227,035 
Locke Supply Co.     1   60,000    60,000    0.3%   325,000    0.3%   5.42    5,089,954        -0- 
Siemens Real Estate     1   51,130    51,130    0.1%   459,000    0.3%   8.98    4,554,685        -0- 
Foundation Building Materials, LLC     1   36,270    36,270    0.1%   178,000    0.1%   4.91    2,543,770        -0- 
Graybar Electric Company     1   26,340    26,340    0.1%   121,000    0.1%   4.59    2,736,527        -0- 
Vacant   (B)  2   135,668    -0-    0.0%   -0-    0.0%   -0-    6,021,767        -0- 
Total as of 9/30/20     119   23,398,377    23,259,679    99.4%  $147,981,000    100.0%  $6.36   $2,043,852,068    (C)  $807,370,980 

 

  (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 are vacant. This industrial park is counted as one property in the Property Count Total.
    Other than two properties indicated in footnotes (A) and (B) and one retail property, all properties are single-tenant.
  (C) Does not include unamortized debt issuance costs of $7,864,015.
  (D) Not reflected above. Effective October 1, 2020, we entered into a lease termination agreement with RGH Enterprises, Inc. (Cardinal Health) for this property. We simultaneously entered into 10.4 year lease agreement with United Parcel Service, Inc. which became effective November 1, 2020. The new 10.4 year lease agreement with UPS provides for an additional 9.3 years of lease term versus the old lease with Cardinal Health.

 

FOURTH QUARTER AND FISCAL YEAR END 2020 SUPPLEMENTAL INFORMATION14

 

Property Table by State

(unaudited)

 

   Property  Square   Occupied Square   % of Total   Annual   % of Total Ann.   Rent Per sf   Undepreciated       Mortgage 
State  Count  Footage   Footage   sf   Rent   Rent   Occup.   Cost       Balance 
Florida  13   2,211,583    2,211,583    9.5%  $15,817,000    10.7%  $7.15   $227,908,734       $84,184,611 
Indiana  4   1,964,923    1,964,923    8.4%   11,132,000    7.5%   5.67    167,712,033        92,732,880 
Ohio  10   1,858,506    1,858,506    7.9%   11,218,000    7.6%   6.04    137,189,167        50,732,965 
Texas  10   1,781,967    1,781,967    7.6%   13,788,000    9.3%   7.74    183,310,168        66,128,081 
Georgia  6   1,639,696    1,639,696    7.0%   10,594,000    7.2%   6.46    166,213,681        80,180,708 
Kentucky  3   1,295,940    1,295,940    5.5%   5,190,000    3.5%   4.00    66,111,852        34,109,213 
South Carolina  6   1,273,676    1,273,676    5.4%   9,819,000    6.6%   7.71    129,966,444        51,876,845 
North Carolina  5   1,225,987    1,225,987    5.2%   8,710,000    5.9%   7.10    132,526,762        67,417,701 
Mississippi  4   1,158,889    1,158,889    5.0%   4,532,000    3.1%   3.91    56,102,135        24,300,403 
Illinois  9   958,045    958,045    4.1%   6,222,000    4.2%   6.49    83,185,731        7,321,727 
Tennessee  3   891,777    891,777    3.8%   3,188,000    2.2%   3.57    35,677,250        3,303,870 
Michigan  4   833,054    833,054    3.6%   5,577,000    3.8%   6.69    73,424,761        22,191,922 
Kansas  4   813,043    813,043    3.5%   4,678,000    3.2%   5.75    61,082,895        25,427,574 
Missouri  4   740,119    740,119    3.2%   2,900,000    2.0%   3.92    35,448,902        6,272,926 
Oklahoma  5   735,721    735,721    3.1%   4,909,000    3.3%   6.67    69,942,758        35,565,275 
New York  3   518,565    518,565    2.2%   3,495,000    2.4%   6.74    51,819,962        18,770,046 
Pennsylvania  3   504,040    423,184    2.2%   2,826,000    1.9%   6.68    36,939,471        12,011,634 
New Jersey  3   471,765    468,735    2.0%   6,696,000    4.5%   14.29    92,423,938        51,182,293 
Alabama  2   451,595    451,595    1.9%   2,650,000    1.8%   5.87    39,714,135        16,728,440 
Virginia  5   407,265    407,265    1.7%   2,456,000    1.7%   6.03    35,043,096        3,395,295 
Colorado  2   295,227    295,227    1.3%   2,441,000    1.6%   8.27    35,694,134        14,571,274 
Arizona  1   283,358    283,358    1.2%   1,393,000    0.9%   4.92    16,824,226        2,010,400 
Wisconsin  2   238,666    238,666    1.0%   1,295,000    0.9%   5.43    16,377,221        1,968,916 
Washington  1   210,445    210,445    0.9%   1,962,000    1.3%   9.32    30,369,301        15,471,368 
Louisiana  1   175,315    175,315    0.7%   1,270,000    0.9%   7.24    18,425,875        9,685,987 
Maryland  1   148,881    148,881    0.6%   1,455,000    1.0%   9.77    14,512,355        -0- 
Nebraska  1   89,115    89,115    0.4%   446,000    0.3%   5.00    5,963,626        -0- 
Utah  1   69,734    69,734    0.4%   772,000    0.4%   11.07    12,666,994        8,250,796 
Minnesota  1   60,398    60,398    0.3%   372,000    0.2%   6.16    5,223,944        1,577,830 
Connecticut  1   54,812    -0-    0.2%   -0-    0.0%   -0-    3,506,747        -0- 
Iowa  1   36,270    36,270    0.2%   178,000    0.1%   4.91    2,543,770        -0- 
Total as of 9/30/20  119   23,398,377    23,259,679    100.0%  $147,981,000    100.0%  $6.36   $2,043,852,068    (A)  $807,370,980 

 

  (A) Does not include unamortized debt issuance costs of $7,864,015.

 

FOURTH QUARTER AND FISCAL YEAR END 2020 SUPPLEMENTAL INFORMATION15

 

Lease Expirations

(unaudited)

 

     Property  Square   % of Total   Annual   % of Total Ann.   Rent Per sf   Lease Exp. Term in   Undepreciated       Mortgage 
Fiscal Year     Count  Footage   Sf   Rent   Rent   Occup.   Years   Cost       Balance 
                                                                 
2021  (A)  7   749,738    3.2%  $3,826,000    2.6%  $5.10    0.8   $42,375,713       $6,561,048 
2022     5   1,064,506    4.5%   5,591,000    3.8%   5.25    1.4    71,688,368        19,256,580 
2023  (A)  16   2,117,482    9.0%   12,019,000    8.1%   5.68    2.7    149,068,751        16,994,464 
2024     13   1,887,034    8.1%   11,722,000    7.9%   6.21    3.6    137,488,989        22,288,503 
2025  (A)  11   2,607,470    11.1%   12,968,000    8.7%   4.97    4.6    170,695,534        63,046,962 
2026     9   1,185,420    5.1%   8,759,000    5.9%   7.39    5.6    120,469,995        29,859,158 
2027     13   2,385,501    10.2%   13,211,000    8.9%   5.54    6.9    187,526,621        63,098,516 
2028     11   2,571,915    11.0%   13,970,000    9.4%   5.43    7.5    182,756,501        61,060,783 
2029     9   1,830,929    7.8%   10,548,000    7.1%   5.76    8.6    147,789,015        60,558,087 
2030     6   1,146,812    4.9%   9,111,000    6.2%   7.94    9.5    134,731,408        67,273,230 
2031     3   963,269    4.1%   7,152,000    4.8%   7.42    10.6    105,042,382        57,070,972 
2032     8   2,131,983    9.1%   18,803,000    12.7%   8.82    11.6    291,127,566        162,289,205 
2033     2   639,068    2.7%   6,486,000    4.4%   10.15    12.6    106,803,506        62,649,940 
2034     3   1,561,347    6.7%   9,284,000    6.3%   5.95    13.5    127,748,517        77,211,058 
2035     2   356,015    1.5%   3,774,000    2.7%   10.60    14.6    59,377,871        38,152,474 
Various tenants at retail shopping center     1   64,220    0.3%   757,000    0.5%   12.37    -0-    3,139,564        -0- 
Vacant  (A)  2   135,668    0.7%   -0-    0.0%   -0-    -0-    6,021,767        -0- 
Total as of 9/30/20     119   23,398,377    100.0%  $147,981,000    100.0%  $6.36    7.1   $2,043,852,068   (B)   $807,370,980 

 

  (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 174,802 square feet of a 255,658 square foot Industrial Park. The remaining 80,856 square feet are included in Vacant. Each of these properties are counted as one property in the Property Count Total. Other than these properties and one retail property, all properties are single-tenant.
  (B) Does not include unamortized debt issuance costs of $7,864,015.

 

FOURTH QUARTER AND FISCAL YEAR END 2020 SUPPLEMENTAL INFORMATION16

 

Recent Acquisitions During Fiscal 2020

(unaudited)

 

            Date of  Square   Annual   Rent Per sf   Lease  Purchase   Initial Mortgage 
No  Tenant  City (MSA)  State  Acquisition  Footage   Rent   Occup.   Expiration  Price   Balance 
1  Amazon.com.indc, LLC  Greenwood (Indianapolis)  IN  10/10/19   615,747   $4,950,000   $8.04   8/31/34  $81,500,000   $52,500,000 
2  Magna Seating of America, Inc.  Lancaster (Columbus)  OH  3/30/20   153,000    1,197,000    7.82   1/31/30   17,874,000    9,400,000 
3  FedEx Ground Package System, Inc.  Whitsett (Greensboro)  NC  5/21/20   286,281    3,002,000    10.49   4/30/35   47,645,000    30,300,000 
4  FedEx Corporation  Ogden (Salt Lake City)  UT  5/21/20   69,734    772,000    11.07   3/31/35   12,864,000    8,360,000 
5  Amazon.com Services, LLC  Oklahoma City  OK  9/15/20   120,780    934,000    7.73   8/31/30   15,200,000    9,750,000 
   As of 9/30/20            1,245,542   $10,855,000   $8.72      $175,083,000   $110,310,000 

 

FOURTH QUARTER AND FISCAL YEAR END 2020 SUPPLEMENTAL INFORMATION17

 

Property Table

(unaudited)

 

                            Rent   Lease Exp. Term         
               Fiscal Year       Square   Annual   Per sf   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   $3,076,000   $3.57    7.8   $36,914,917   $18,041,667 
2  Shaw Industries, Inc.     Savannah  GA   2018    100.0%   831,764    3,529,000    4.24    7.0    56,025,945    28,324,173 
3  ULTA, Inc.     Greenwood (Indianapolis)  IN   2015    100.0%   671,354    2,755,000    4.10    4.8    37,765,454    17,346,321 
4  Amazon.com.indc, LLC     Greenwood (Indianapolis)  IN   2020    100.0%   615,747    4,950,000    8.04    13.9    79,363,909    50,854,726 
5  Jim Beam Brands Company (Beam Suntory)     Frankfort (Lexington)  KY   2015    100.0%   599,840    2,092,000    3.49    4.3    28,000,000    14,611,158 
6  TreeHouse Private Brands, Inc.     Buckner (Louisville)  KY   2014    100.0%   558,600    2,246,000    4.02    13.1    26,807,852    13,795,899 
7  FedEx Forward Depots, Inc.     Memphis  TN   2010    100.0%   449,900    1,394,000    3.10    8.7    16,092,852    3,303,870 
8  B. Braun Medical Inc.     Daytona Beach  FL   2018    100.0%   399,440    2,159,000    5.41    7.5    30,280,090    17,219,118 
9  UGN, Inc.     Monroe (Cincinnati)  OH   2015    100.0%   387,000    2,088,000    5.40    13.4    21,576,756    12,560,433 
10  Woodstream Corporation     St. Joseph  MO   2001    100.0%   256,000    932,000    3.64    1.0    8,958,278    -0- 
11  Altec Industries, Inc.     St. Joseph  MO   2001    100.0%   126,880    376,000    2.96    2.4    4,439,947    -0- 
   CBOCS Distribution, Inc. (Cracker Barrel)     Lebanon (Nashville)  TN   2011    100.0%   381,240    1,475,000    3.87    3.8    14,215,126    -0- 
12  FedEx Ground Package System, Inc.     Braselton (Atlanta)  GA   2018    100.0%   373,750    3,782,000    10.12    12.4    60,227,126    35,855,878 
13  Best Buy Warehousing Logistics, Inc.     Streetsboro (Cleveland)  OH   2012    100.0%   368,060    1,709,000    4.64    1.3    19,600,000    8,024,547 
14  Amazon.com Services, Inc. (Amazon.com, Inc.)     Mobile  AL   2018    100.0%   362,942    2,045,000    5.63    8.2    33,052,316    16,728,440 
15  FedEx Ground Package System, Inc.     Concord (Charlotte)  NC   2017    100.0%   354,482    2,537,000    7.16    11.7    40,043,145    22,066,888 
16  FedEx Ground Package System, Inc.     Mesquite (Dallas)  TX   2017    100.0%   351,874    3,203,000    9.10    11.5    49,880,493    27,349,565 
17  Toyota Tsusho America, Inc.     Lafayette  IN   2019    100.0%   350,000    1,710,000    4.89    8.8    25,078,587    16,101,232 
18  FedEx Ground Package System, Inc.     Trenton  NJ   2019    100.0%   347,145    5,306,000    15.28    11.8    83,987,622    49,955,258 
19  FedEx Ground Package System, Inc.     Walker (Grand Rapids)  MI   2017    100.0%   343,483    2,105,000    6.13    11.3    31,654,987    17,218,625 
20  FedEx Ground Package System, Inc.     Hamburg (Buffalo)  NY   2017    100.0%   338,584    2,323,000    6.86    10.5    35,131,977    18,770,046 
21  FedEx Ground Package System, Inc.     Concord (Charlotte)  NC   2016    100.0%   330,717    2,237,000    6.76    4.8    33,053,688    15,449,136 
22  FedEx Ground Package System, Inc.     Indianapolis  IN   2014    100.0%   327,822    1,717,000    5.24    7.1    25,504,083    8,430,602 
23  Autoneum North America, Inc.     Aiken (Augusta, GA)  SC   2017    100.0%   315,560    1,731,000    5.49    11.6    21,040,396    12,860,736 
24  FedEx Ground Package System, Inc.  (A)  Olathe (Kansas City)  KS   2016    100.0%   313,763    2,210,000    7.04    10.7    31,825,958    17,512,935 
25  FedEx Ground Package System, Inc.     Davenport (Orlando)  FL   2016    100.0%   310,922    2,619,000    8.42    10.6    38,084,446    20,787,991 
26  FedEx Ground Package System, Inc.     Ft. Worth (Dallas)  TX   2015    100.0%   304,608    2,387,000    7.84    9.6    35,619,482    17,879,369 
27  Science Applications International Corporation     Hanahan (Charleston)  SC   2005    100.0%   302,400    1,683,000    5.57    3.1    14,463,148    -0- 
28  Amazon.com Services, Inc. (Amazon.com, Inc.)     Oklahoma City  OK   2018    100.0%   300,000    1,925,000    6.42    7.1    29,878,942    17,369,396 
29  International Paper Company     Kenton  OH   2017    100.0%   298,472    1,268,000    4.25    6.9    18,730,500    10,247,204 
30  FedEx Ground Package System, Inc.     Jacksonville  FL   2015    100.0%   297,579    1,998,000    6.71    9.3    30,925,530    13,854,041 
31  FedEx Ground Package System, Inc.     Whitsett (Greensboro)  NC   2020    100.0%   286,281    3,002,000    10.49    14.6    46,710,877    29,901,678 
32  Western Container Corp. (Coca-Cola)     Tolleson (Phoenix)  AZ   2003    100.0%   283,358    1,393,000    4.92    6.6    16,824,226    2,010,400 
33  International Paper Company     Edwardsville (Kansas City)  KS   2014    100.0%   280,000    1,371,000    4.90    2.9    18,294,108    7,626,517 
34  FedEx Ground Package System, Inc.     Charleston  SC   2018    100.0%   265,318    2,704,000    10.19    12.8    46,576,380    26,794,062 
35  NF&M International, Inc.     Monaca (Pittsburgh)  PA   1977    68.4%   255,658    841,000    4.81    4.3    7,952,222    -0- 
36  FedEx Ground Package System, Inc.     Orion  MI   2007    100.0%   245,633    1,908,000    7.77    2.7    22,940,826    -0- 
37  FedEx Ground Package System, Inc.     Homestead (Miami)  FL   2017    100.0%   237,756    2,282,000    9.60    11.5    37,911,556    20,616,086 
38  Anda Pharmaceuticals, Inc.     Olive Branch (Memphis, TN)  MS   2012    100.0%   234,660    1,215,000    5.18    1.8    14,550,000    6,258,736 
39  FedEx Ground Package System, Inc.     Colorado Springs  CO   2016    100.0%   225,362    1,832,000    8.13    5.3    29,320,066    14,571,274 
40  Mickey Thompson Performance Tires and Wheels (Cooper Tire)     Stow  OH   2017    100.0%   219,765    1,523,000    6.93    6.9    18,934,065    10,809,364 
41  Rinnai America Corporation     Griffin (Atlanta)  GA   2006    100.0%   218,120    894,000    4.10    2.3    15,082,217    -0- 
42  FedEx Ground Package System, Inc.     Ft. Myers  FL   2017    100.0%   213,672    1,418,000    6.64    6.9    21,684,310    11,707,375 
43  FedEx Ground Package System, Inc.     Burlington (Seattle/Everett)  WA   2016    100.0%   210,445    1,962,000    9.32    9.9    30,369,301    15,471,368 
44  FedEx Ground Package System, Inc.     Sauget (St. Louis, MO)  IL   2015    100.0%   198,773    1,036,000    5.21    8.7    15,204,950    7,321,727 
45  Anheuser-Busch, Inc.     Granite City (St. Louis, MO)  IL   2001    100.0%   184,800    843,000    4.56    1.2    12,697,848    -0- 
46  Carrier Enterprise, LLC (United Technologies)     Carrollton (Dallas)  TX   2010    100.0%   184,317    1,140,000    6.18    3.3    18,494,917    4,733,413 
47  FedEx Ground Package System, Inc.     Spring (Houston)  TX   2014    100.0%   181,176    1,581,000    8.73    4.0    19,328,922    6,622,702 
48  Carlisle Tire & Wheel Company     Edwardsville (Kansas City)  KS   2003    100.0%   179,280    765,000    4.27    2.8    7,282,986    -0- 
49  FedEx Ground Package System, Inc.     Ft. Mill (Charlotte, NC)  SC   2010    100.0%   176,939    1,598,000    9.03    7.9    17,063,643    -0- 
50  FedEx Ground Package System, Inc.     Covington (New Orleans)  LA   2016    100.0%   175,315    1,270,000    7.24    4.8    18,425,875    9,685,987 
51  FedEx Ground Package System, Inc.     Livonia (Detroit)  MI   2013    100.0%   172,005    1,194,000    6.94    1.5    13,879,697    4,973,297 
52  Home Depot USA, Inc.     Montgomery (Chicago)  IL   2004    100.0%   171,200    1,064,000    6.21    2.3    11,303,317    -0- 
53  FedEx Ground Package System, Inc.     Tampa  FL   2004    100.0%   170,779    1,624,000    9.51    5.8    19,745,245    -0- 
54  FedEx Ground Package System, Inc.     Edinburg  TX   2011    100.0%   164,207    1,097,000    6.68    6.0    12,039,014    -0- 
55  FedEx Ground Package System, Inc.     Lindale (Tyler)  TX   2015    100.0%   163,378    725,000    4.44    3.8    9,965,550    4,827,439 
56  Bunzl Distribution Midcentral, Inc.     Kansas City  MO   2015    100.0%   158,417    764,000    4.82    1.0    10,003,235    6,272,926 
57  FedEx Ground Package System, Inc.     Oklahoma City  OK   2012    100.0%   158,340    1,048,000    6.62    4.8    12,624,833    2,340,931 
58  Magna Seating of America, Inc.     Lancaster (Columbus)  OH   2020    100.0%   153,000    1,197,000    7.82    9.3    17,557,830    9,091,417 
59  FedEx Ground Package System, Inc.     Waco  TX   2012    100.0%   150,710    1,078,000    7.15    4.9    12,551,368    3,613,431 

 

FOURTH QUARTER AND FISCAL YEAR END 2020 SUPPLEMENTAL INFORMATION18

 

Property Table

(unaudited)

 

                            Rent   Lease Exp. Term         
               Fiscal Year       Square   Annual   Per sf   in   Undepreciated   Mortgage 
No  Tenant     City (MSA)  State  Acquisition   Occup.   Footage   Rent   Occup.   Years   Cost   Balance 
60  FedEx Ground Package System, Inc.     Beltsville (Washington, DC)  MD   2001    100.0%   148,881   $1,455,000   $9.77    7.8   $14,512,355   $-0- 
61  Victory Packaging, L.P.     Fayetteville  NC   1997    100.0%   148,000    506,000    3.42    4.4    5,455,379    -0- 
62  FedEx Ground Package System, Inc.     El Paso  TX   2006    100.0%   144,149    1,345,000    9.33    3.0    12,431,192    -0- 
63  FedEx Ground Package System, Inc.     Cocoa  FL   2008    100.0%   144,138    1,112,000    7.71    4.0    14,127,449    -0- 
64  FedEx Ground Package System, Inc.     Cudahy (Milwaukee)  WI   2001    100.0%   139,564    827,000    5.93    6.8    9,807,221    -0- 
65  Challenger Lifts, Inc. (Snap-On Inc.)     Louisville  KY   2016    100.0%   137,500    852,000    6.20    5.7    11,304,000    5,702,156 
66  FedEx Ground Package System, Inc.     Richfield (Cleveland)  OH   2006    100.0%   131,152    1,493,000    11.38    4.0    16,447,178    -0- 
67  FedEx Ground Package System, Inc.     Savannah  GA   2019    100.0%   126,520    1,755,000    13.87    8.1    27,531,560    16,000,657 
68  General Electric Company     Imperial (Pittsburgh)  PA   2016    100.0%   125,860    1,334,000    10.60    5.3    19,964,283    9,585,728 
69  FedEx Ground Package System, Inc.     Wheeling (Chicago)  IL   2003    100.0%   123,000    1,272,000    10.34    6.7    18,992,949    -0- 
70  FedEx Ground Package System, Inc.     Altoona  PA   2014    100.0%   122,522    651,000    5.31    2.9    9,022,966    2,425,906 
71  FedEx Corporation     Charleston  SC   2018    100.0%   121,683    1,314,000    10.80    11.9    21,519,412    12,222,047 
72  Amazon.com Services, LLC     Oklahoma City  OK   2020    100.0%   120,780    934,000    7.73    9.9    14,962,513    9,750,000 
73  FedEx Corporation     Mechanicsville (Richmond)  VA   2001    100.0%   112,799    541,000    4.80    2.6    7,827,460    -0- 
74  FedEx Corporation     Orlando  FL   2008    100.0%   110,638    666,000    6.02    7.2    8,810,059    -0- 
75  Bunzl Distribution Oklahoma, Inc.     Oklahoma City  OK   2017    100.0%   110,361    736,000    6.67    3.9    8,728,439    4,692,376 
76  Style Crest, Inc.     Winston-Salem  NC   2002    100.0%   106,507    428,000    4.02    5.5    7,263,673    -0- 
77  SONWIL DISTRIBUTION CENTER, INC.     Cheektowaga (Buffalo)  NY   2002    100.0%   104,981    630,000    6.00    1.3    10,960,823    -0- 
78  FedEx Ground Package System, Inc.     West Chester Twp. (Cincinnati)  OH   2000    100.0%   103,818    556,000    5.36    2.9    5,733,686    -0- 
79  FedEx Ground Package System, Inc.     Roanoke  VA   2013    100.0%   103,402    755,000    7.30    2.6    10,200,000    3,395,295 
80  Pittsburgh Glass Works, LLC, a Division of VITRO     O’ Fallon (St. Louis)  MO   1994    100.0%   102,135    450,000    4.41    0.7    4,249,615    -0- 
81  FedEx Ground Package System, Inc.     Green Bay  WI   2013    100.0%   99,102    468,000    4.72    2.7    6,570,000    1,968,916 
82  Dakota Bodies, LLC     Liberty (Kansas City)  MO   1998    100.0%   96,687    378,000    3.91    5.6    7,797,827    -0- 
83  FedEx Corporation     Jacksonville  FL   1999    100.0%   95,883    536,000    5.59    8.7    6,584,384    -0- 
84  FedEx Corporation     Tampa  FL   2006    100.0%   95,662    603,000    6.30    7.2    7,900,949    -0- 
85  Amazon.com Services, Inc.     Hanahan (Charleston)  SC   2005    100.0%   91,776    789,000    8.60    8.8    9,303,465    -0- 
86  National Oilwell Varco, Inc.     Houston  TX   2010    100.0%   91,295    796,000    8.72    9.0    8,190,901    1,102,161 
87  FedEx Corporation     Omaha  NE   1999    100.0%   89,115    446,000    5.00    3.1    5,963,626    -0- 
88  Joseph T. Ryerson and Son, Inc.     Elgin (Chicago)  IL   2002    100.0%   89,052    514,000    5.77    4.3    7,181,536    -0- 
89  FedEx Ground Package System, Inc.     Huntsville  AL   2005    100.0%   88,653    605,000    6.82    5.8    6,661,819    -0- 
90  CHEP USA, Inc.     Roanoke  VA   2007    100.0%   83,000    506,000    6.10    4.4    7,463,672    -0- 
91  FedEx Corporation     Bedford Heights (Cleveland)  OH   2007    100.0%   82,269    438,000    5.32    7.9    7,304,467    -0- 
92  RGH Enterprises, Inc. (Cardinal Health)  (B)  Halfmoon (Albany)  NY   2012    100.0%   75,000    542,000    7.23    1.2    5,727,161    -0- 
93  FedEx Corporation     Schaumburg (Chicago)  IL   1997    100.0%   73,500    478,000    6.50    6.5    5,447,053    -0- 
94  FedEx Corporation     Romulus (Detroit)  MI   1998    100.0%   71,933    370,000    5.14    0.7    4,949,251    -0- 
95  FedEx Ground Package System, Inc.     Denver  CO   2005    100.0%   69,865    609,000    8.72    5.1    6,374,068    -0- 
96  FedEx Corporation     Ogden (Salt Lake City)  UT   2020    100.0%   69,734    772,000    11.07    14.5    12,666,994    8,250,796 
97  Tampa Bay Grand Prix     Tampa  FL   2005    100.0%   68,385    361,000    5.28    7.0    5,677,982    -0- 
98  Sherwin-Williams Company     Rockford  IL   2011    100.0%   66,387    486,000    7.32    3.3    5,551,227    -0- 
99  Various Tenants at Retail Shopping Center     Somerset  NJ   1970    95.0%   64,220    757,000    12.37    na    3,139,564    -0- 
100  Keurig Dr Pepper     Cincinnati  OH   2015    100.0%   63,840    487,000    7.63    9.0    6,750,000    -0- 
101  FedEx Corporation     Chattanooga  TN   2007    100.0%   60,637    319,000    5.26    2.1    5,369,272    -0- 
102  SOFIVE, Inc.     Carlstadt (New York, NY)  NJ   2001    100.0%   60,400    633,000    10.48    9.3    5,296,752    1,227,035 
103  FedEx Ground Package System, Inc.     Stewartville (Rochester)  MN   2013    100.0%   60,398    372,000    6.16    2.7    5,223,944    1,577,830 
104  Locke Supply Co.     Richmond  VA   2004    100.0%   60,000    325,000    5.42    11.6    5,089,954    -0- 
105  FedEx Ground Package System, Inc.     Augusta  GA   2005    100.0%   59,358    513,000    8.64    2.7    5,363,304    -0- 
106  Vacant     Newington (Hartford)  CT   2001    0.0%   54,812    -0-    na     na     3,506,747    -0- 
107  Siemens Real Estate     Lebanon (Cincinnati)  OH   2012    100.0%   51,130    459,000    8.98    3.6    4,554,685    -0- 
108  FedEx Corporation     Charlottesville  VA   1999    100.0%   48,064    329,000    6.85    6.9    4,462,009    -0- 
109  FedEx Ground Package System, Inc.     Corpus Christi  TX   2012    100.0%   46,253    436,000    9.43    0.9    4,808,329    -0- 
110  Keurig Dr Pepper     Tulsa  OK   2014    100.0%   46,240    266,000    5.75    3.4    3,748,031    1,412,573 
111  Heartland Coca-Cola Bottling Company, LLC (Coca-Cola)     Topeka  KS   2009    100.0%   40,000    332,000    8.30    1.0    3,679,843    288,120 
112  Collins Aerospace Systems (United Technologies)     Rockford  IL   2015    100.0%   38,833    367,000    9.45    6.8    5,100,000    -0- 
113  Foundation Building Materials, LLC     Urbandale (Des Moines)  IA   1994    100.0%   36,270    178,000    4.91    7.3    2,543,770    -0- 
114  FedEx Corporation     Richland (Jackson)  MS   1994    100.0%   36,000    120,000    3.33    3.5    1,900,691    -0- 
115  FedEx Corporation     Punta Gorda  FL   2007    100.0%   34,624    284,000    8.20    6.8    4,133,510    -0- 
116  FedEx Corporation     Lakeland  FL   2006    100.0%   32,105    155,000    4.83    7.2    2,043,226    -0- 

 

FOURTH QUARTER AND FISCAL YEAR END 2020 SUPPLEMENTAL INFORMATION19

 

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 
117  FedEx Corporation  Augusta  GA  2006   100.0%   30,184   $121,000   $4.01    2.2   $1,983,529       $-0- 
118  Graybar Electric Company  Ridgeland (Jackson)  MS  1993   100.0%   26,340    121,000    4.59    4.8    2,736,527        -0- 
119  Sherwin-Williams Company  Burr Ridge (Chicago)  IL  1997   100.0%   12,500    162,000    12.96    1.1    1,706,851        -0- 
   Total as of 9/30/20            99.4%   23,398,377   $147,981,000   $6.36    7.1   $2,043,852,068   (C)   $807,370,980 

 

  (A) Not reflected above. Effective November 5, 2020, a parking expansion project was completed for a total project cost of $3.4 million which resulted in an increase in annualized rent of $349,000.
  (B) Not reflected above. Effective October 1, 2020, we entered into a lease termination agreement with RGH Enterprises, Inc. (Cardinal Health) for this property. We simultaneously entered into 10.4 year lease agreement with United Parcel Service, Inc. which became effective November 1, 2020. The new 10.4 year lease agreement with UPS provides for an additional 9.3 years of lease term versus the old lease with Cardinal Health.
  (C) Does not include unamortized debt issuance costs of $7,864,015.

 

FOURTH QUARTER AND FISCAL YEAR END 2020 SUPPLEMENTAL INFORMATION20

 

Definitions

 

Investors and analysts following the real estate industry utilize funds from operations (“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 & (“Adjusted EBITDA”) variously defined, as supplemental performance measures. While we believe 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, we consider NOI, Same Property NOI, Same Property Cash NOI, Adjusted EBITDA, 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. 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. 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 our performance. In addition, NOI, Same Property NOI, Same Property Cash NOI, Adjusted EBITDA, 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, we calculate the following non-U.S. GAAP measures as follows:

 

  ● FFO, as defined by The National Association of Real Estate Investment Trusts (Nareit), represents net income attributable to common shareholders, as defined by accounting principles generally accepted in the United States of America (U.S. GAAP), excluding extraordinary items, as defined under 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. Included in the Nareit FFO White Paper - 2018 Restatement, is an option pertaining to assets incidental to our main business in the calculation of Nareit FFO to make an election to include or exclude mark-to-market changes in the value recognized on these marketable equity securities. In conjunction with the adoption of the FFO White Paper - 2018 Restatement, for all periods presented, we have elected to exclude unrealized gains and losses from our investments in marketable equity securities from our FFO calculation. Nareit created FFO as a non-GAAP supplemental measure of REIT operating performance.
  ● AFFO is calculated as FFO, excluding stock-based compensation expense, depreciation of corporate office tenant improvements, amortization of deferred financing costs, non-recurring severance expense, effect of non-cash U.S. GAAP straight-line rent adjustments and less recurring capital expenditures. Recurring capital expenditures are defined as all capital expenditures that are recurring in nature, 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, non-recurring severance expense, depreciation, amortization of capitalized lease costs & intangible assets and interest expense, including amortization of financing costs, unrealized holding (gains) or losses arising during the periods, less dividend income. 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.
  ● 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.
  ● Adjusted EBITDA 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, net amortization of acquired above and below market lease revenue and unrealized holding losses (minus gains) arising during the periods.

 

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

 

FOURTH QUARTER AND FISCAL YEAR END 2020 SUPPLEMENTAL INFORMATION21

 

FOR IMMEDIATE RELEASE November 23, 2020
   Contact: Becky Coleridge
   732-577-9996

 

MONMOUTH REAL ESTATE REPORTS RESULTS FOR

THE FISCAL YEAR ENDED AND THE FOURTH QUARTER ENDED SEPTEMBER 30, 2020

 

HOLMDEL, NJ, November 23, 2020........ Monmouth Real Estate Investment Corporation (NYSE:MNR) reported Net Loss Attributable to Common Shareholders of $48.6 million or $0.50 per diluted share for the fiscal year ended September 30, 2020 as compared to Net Income Attributable to Common Shareholders of $11.0 million or $0.12 per diluted share for the fiscal year ended September 30, 2019, representing a decrease of $0.62 per share. The decrease primarily resulted from the implementation of a new accounting rule which became effective for our fiscal yearend 2019 requiring that unrealized gains and losses resulting from our securities investments be reflected on our income statement. During the fiscal year ended September 30, 2020, we recognized unrealized losses of $77.4 million or $0.79 per diluted share as compared to unrealized losses of $24.7 million or $0.26 per diluted share during the prior fiscal year. Prior to the adoption of the rule, unrealized gains and losses were reflected as a change in our shareholders’ equity. Excluding all non-cash unrealized losses, our Net Income Attributable to Common Shareholders for the fiscal year 2020 would have been $28.8 million or $0.29 per diluted share as compared to $35.7 million or $0.38 per diluted share for the fiscal year ended September 30, 2019, representing a decrease of $0.09. For the fiscal year ended September 30, 2020, Funds from Operations (FFO), which exclude unrealized gains or losses from our securities portfolio, were $78.5 million or $0.80 per diluted share compared to $81.2 million or $0.87 per diluted share for the 2019 fiscal year, representing a decrease of $0.07 per share. For the fiscal year ended September 30, 2020, Adjusted Funds from Operations (AFFO), which also exclude unrealized and realized gains or losses from our securities portfolio, were $76.9 million or $0.78 per diluted share compared to $79.7 million or $0.85 per diluted share for the 2019 fiscal year, representing a decrease of $0.07 per share.

 

Net Loss Attributable to Common Shareholders for the three months ended September 30, 2020 was $3.9 million or $0.04 per diluted share as compared to Net Income Attributable to Common Shareholders $22.7 million or $0.24 per diluted share for the three months ended September 30, 2019, representing a decrease of $0.28 per share. Excluding all non-cash unrealized gains (losses), our Net Income Attributable to Common Shareholders for the three months ended September 30, 2020 would have been $6.4 million or $0.06 per diluted share, representing a decrease of $0.03 per share from the three months ended September 30, 2019. For the three months ended September 30, 2020, FFO were $19.2 million or $0.20 per diluted share as compared to $20.3 million or $0.21 per diluted share for the three months ended September 30, 2019, representing a decrease of $0.01 per share. For the three months ended September 30, 2020, AFFO were $18.2 million or $0.19 per diluted share compared to $20.1 million or $0.21 per diluted share for the three months ended September 30, 2019, representing a decrease of $0.02 per share.

 

The decrease in our annual and quarterly earnings was mostly due to a decrease in Dividend Income from our securities investments and an increase in our Preferred Dividend Expense. The decrease in our Dividend Income is because many REITs have reduced or eliminated their dividends in 2020 in response to financial pressures resulting from the COVID-19 pandemic. The increase in our Preferred Dividend Expense is due to the 5.0 million shares we sold of our 6.125% Series C Preferred Stock under the Preferred Stock ATM Program during the fiscal year at a weighted average price of $25.04 per share which generated aggregate net proceeds, after offering expenses, of $122.4 million. A portion of these proceeds were applied toward the $175.1 million in acquisitions of the five properties purchased during fiscal 2020. These five properties are expected to generate approximately $10.9 million in annual rental revenues. In addition, a portion of these proceeds will be applied to our current $338.4 million acquisition pipeline which comprises six properties that are expected to generate an additional $20.2 million in annual rental revenue when they come online. We expect the combination of the full run rate of our recent acquisitions, coupled with that of our acquisition pipeline and property expansions, to meaningfully grow our cash flow and earnings per share going forward.

 

Our portfolio occupancy remained nearly full during the quarter and throughout the COVID-19 Pandemic at 99.4%. This represents a 50-basis point increase over the prior year period. Our rent collections throughout the COVID-19 Pandemic have been strong. From March 2020 through November 2020, our rent collections averaged 99.7% and we expect December and future months to be consistent with this trend. To date, Monmouth has received very limited requests for rent deferment. Thus far, we have agreed to defer a total of $438,000, representing less than 0.31% of our annual base rent. To date, we have already collected 71% of this amount. While the future effects of the COVID-19 pandemic are still uncertain, at this time we do not expect the impact to have a material adverse effect on our financial condition.

 

A summary of significant financial information for the three and twelve months ended September 30, 2020 and 2019 (in thousands, except per share amounts) is as follows:

 

  

Three Months Ended

September 30,

 
   2020   2019 
Rental Revenue  $36,173   $33,846 
Reimbursement Revenue  $6,462   $5,824 
Net Operating Income (NOI) (1)  $36,016   $33,600 
Total Expenses  $21,584   $20,410 
Dividend Income  $1,458   $3,599 
Unrealized Holding Gains (Losses) Arising During the Periods  $(10,280)  $13,988 
Net Income  $3,088   $27,814 
Net Income (Loss) Attributable to Common Shareholders  $(3,917)  $22,690 
Net Income (Loss) Attributable to Common Shareholders Per Diluted Common Share  $(0.04)  $0.24 
FFO (1)  $19,223   $20,280 
FFO per Diluted Common Share (1)  $0.20   $0.21 
AFFO (1)  $18,167   $20,112 
AFFO per Diluted Common Share (1)  $0.19   $0.21 
Dividends Declared per Common Share  $0.17   $0.17 
           
Weighted Avg. Diluted Common Shares Outstanding   98,083    95,759 

 

FOURTH QUARTER AND FISCAL YEAR END 2020 SUPPLEMENTAL INFORMATION22

 

 

  

Twelve Months Ended

September 30,

 
   2020   2019 
Rental Revenue  $141,583   $132,524 
Reimbursement Revenue  $26,234   $22,297 
Net Operating Income (NOI) (1)  $140,736   $131,195 
Total Expenses  $86,649   $78,597 
Dividend Income  $10,445   $15,168 
Unrealized Holding Gains (Losses) Arising During the Periods  $(77,380)  $(24,680)
Net Income (Loss)  $(22,143)  $29,800 
Net Income (Loss) Attributable to Common Shareholders  $(48,617)  $11,026 
Net Income (Loss) Attributable to Common Shareholders Per Diluted Common Share  $(0.50)  $0.12 
FFO (1)  $78,483   $81,197 
FFO per Diluted Common Share (1)  $0.80   $0.87 
AFFO (1)  $76,939   $79,695 
AFFO per Diluted Common Share (1)  $0.78   $0.85 
Dividends Declared per Common Share  $0.68   $0.68 
           
Weighted Avg. Diluted Common Shares Outstanding   98,164    93,485 

 

A summary of significant balance sheet information as of September 30, 2020 and 2019 is as follows (in thousands):

 

   September 30, 2020   September 30, 2019 
Real Estate Investments  $1,747,844   $1,616,934 
Securities Available for Sale at Fair Value  $108,832   $185,250 
Total Assets  $1,939,783   $1,871,948 
Fixed Rate Mortgage Notes Payable, net of Unamortized Debt Issuance Costs  $799,507   $744,928 
Loans Payable  $75,000   $95,000 
Total Shareholders’ Equity  $1,037,605   $1,011,043 

 

During the year, we accomplished the following:

 

Strong Growth Record and Solid Pipeline

 

  ● Acquired 1.2 million square feet of high-quality industrial space for $175.1 million, generating $10.9 million in annual rental revenue, comprising five brand new Class A, built-to-suit properties, all leased long-term to investment-grade tenants.
  ● Increased our gross leasable area (GLA) by 5.2% to 23.4 million square feet.
  ● Entered into commitments to acquire six new build-to-suit properties containing 2.4 million total square feet for a total cost of $338.4 million.

 

Strong Portfolio Performance

 

  ● Achieved a 99.4% occupancy rate, representing our fifth consecutive year with above 98% occupancy.
  ● Achieved 99.7% rent collection results throughout the COVID-19 Pandemic.
  ● Achieved 87% tenant retention through the renewal of four leases comprising 355,000 square feet for a weighted-average lease term of 4.2 years. These lease renewals resulted in an increase in the weighted-average lease rate of 12.0% on a U.S. GAAP straight-line basis and an increase of 4.4% on a cash basis.
  ● Achieved a weighted average lease maturity of 7.1 years as of the current fiscal yearend.
  ● Increased our annualized average base rent per occupied square foot by 3% to $6.36 from the prior year.

 

Solid Financial Results

 

  ● Increased our Gross Revenue by 4.9% to $178.3 million.
  ● Increased our Net Operating Income by 7.3% to $140.7 million.
  ● Maintained our Net Debt to Adjusted EBITDA at 6.0x for both the current and prior fiscal years and maintained our Net Debt to Undepreciated Book Capitalization at 38.5% as of the current fiscal yearend versus 39.0% as of the prior fiscal yearend.
  ● Reduced the weighted average interest rate on our fixed-rate mortgage debt to 3.98% from 4.03% in the prior fiscal yearend and reduced the weighted average interest rate on our total debt to 3.89% from 4.00% in the prior fiscal yearend.
  ● Maintained a conservative AFFO dividend payout ratio of 87%. With a weighted average lease maturity of over 7 years and in excess of 81% of our revenue secured by leases with tenants from companies, or subsidiaries of companies, that are considered Investment Grade, coupled with the weighted average debt maturity of our fixed-rate debt remaining in excess of 11 years, our dividend is well covered.
  ● Increased our unencumbered assets during the 2020 fiscal year, allowing us to replace our $200.0 million unsecured line of credit facility with a new $225.0 million unsecured line of credit facility and a new $75.0 million term loan, increasing our borrowing capacity, extending the term and reducing our borrowing rates.
  ● Reduced our General and Administrative expenses both in the aggregate and as a percentage of gross revenue and gross assets. G&A expense decreased by 1.6% from $9.1 million in fiscal 2019 to $8.9 million in fiscal 2020. G&A expense as a percentage of gross revenue decreased by 6% to 5.0% and G&A expense as a percentage of gross assets decreased by 7% to 40 basis points for fiscal 2020.
  ● Achieved $2.7 billion in total market capitalization as of September 30, 2020 representing an increase of $127.8 million over the prior year period.

 

FOURTH QUARTER AND FISCAL YEAR END 2020 SUPPLEMENTAL INFORMATION23

 

Capital Market Activity

 

  ● Raised $26.4 million (including dividend reinvestments of $7.6 million) through our Dividend Reinvestment and Stock Purchase Plan, representing an 11% participation rate.
  ● Raised $122.4 million in net proceeds through our 6.125% Series C Perpetual Preferred Stock ATM Program, as well as an additional $35.0 million in net proceeds subsequent to the fiscal yearend.
  ● Maintained the weighted-average debt maturity on our fixed-rate debt at 11.1 years.

 

Michael P. Landy, President and CEO, commented on the results for fiscal year 2020,

 

“During fiscal 2020, we grew our gross leasable area (GLA) by 5% through the acquisition of five brand-new Class A built-to-suit properties all leased long-term to investment-grade tenants, for an aggregate cost of $175.1 million. As of September 30, 2020, our property portfolio had a weighted-average building age of 9.8 years, and a weighted-average lease maturity of 7.1 years. We have assembled a high quality modern industrial portfolio that contains excess land to accommodate future growth. These are highly-automated industrial assets that are mission-critical to our tenants’ operations. The quality of our portfolio is evidenced by our current sector-leading 99.4% occupancy rate as well as our ability to achieve uninterrupted rent collections which averaged 99.7% throughout these challenging times.”

 

“We have renewed four of the five leases that were set to expire this fiscal year. These four lease renewals represent 87% of the 410,000 square feet expiring this year. These lease renewals have a weighted average lease term of 4.2 years, and a weighted average lease rate of $5.87 per square foot on a GAAP basis and $5.71 per square foot on a cash basis. This represents an increase of 12.0% on a GAAP basis and an increase of 4.4% on a cash basis. While it is still early in our new fiscal year, to date we have renewed four of the ten leases that are set to expire in fiscal 2021, representing 44% of the amount up for renewal. These lease renewals have a weighted average lease term of 3.2 years, and a weighted average lease rate of $4.46 per square foot on a GAAP basis and $4.38 per square foot on a cash basis. This represents an increase of 8.0% on a GAAP basis and an increase of 1.9% on a cash basis.”

 

“During the fiscal year, we raised $26.4 million in equity capital through our Dividend Reinvestment and Stock Purchase Plan. Of this amount, a total of $7.6 million in dividends were reinvested by our shareholders, representing an 11% participation rate. We also sold 5.0 million shares of our 6.125% Series C Preferred Stock through our ATM program generating net proceeds of $122.4 million. In addition, we replaced our $200.0 million unsecured line of credit with a new $225.0 million unsecured line of credit and a new $75.0 million Term Loan. This new facility provides us with increased borrowing capacity while reducing our borrowing rates and extending our term. Including the accordion feature, our new facility provides for up to $400.0 million in total borrowing capacity. Our line of credit has nothing borrowed at this time. Looking ahead, Monmouth is very well capitalized to continue to execute our growth strategy.”

 

“Our high-quality acquisition pipeline now comprises six brand new build-to-suit, industrial buildings that are currently being developed in Alabama (2), Georgia, Ohio, Tennessee and Vermont. All six highly-automated properties will be leased to investment-grade tenants. These six pipeline transactions total approximately 2.4 million square feet for an aggregate purchase price of $338.4 million with a weighted-average lease term of 15.3 years. Five of these acquisitions are scheduled to close during fiscal 2021 and one is scheduled to close during fiscal 2022. We have locked in financing for three of these six acquisitions with three, fully-amortizing mortgage loans totaling $139.5 million with a weighted average fixed interest rate of 2.99% and a weighted average term of 15.8 years.”

 

“Ecommerce demand has soared during the COVID-19 Pandemic. Our two largest tenants, FedEx and Amazon are experiencing record shipments. We are working with our tenants on several parking expansion projects in order to increase their home delivery capabilities. One of these parking expansions was completed earlier this month for $3.4 million, resulting in increased annualized rent of $349,000. While our reported results for fiscal year 2020 were negatively impacted by a reduction in Dividend Income from our securities investments, we expect our large acquisition pipeline and property expansions to positively contribute to per share earnings and cash flow going forward.”

 

Monmouth Real Estate Investment Corporation will host its Fourth Quarter and FY 2020 Financial Results Webcast and Conference Call on Tuesday, November 24, 2020 at 10:00 a.m. Eastern Time. Senior management will discuss the results, current market conditions and future outlook.

 

Our Fourth Quarter and FY 2020 financial results being released herein will be available on our website at www.mreic.reit in the Investor Relations section, under Filings and Reports.

 

To participate in the Webcast, select the 4Q and Fiscal Yearend 2020 Webcast and Earnings Call “Link to Webcast” on the homepage of our 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 1-877-510-5852 (domestically) or 1-412-902-4138 (internationally).

 

The replay of the conference call will be available at 12:00 p.m. Eastern Time on Tuesday, November 24, 2020. It will be available until February 1, 2021, and can be accessed by dialing toll free 1-877-344-7529 (domestically) and 1-412-317-0088 (internationally) and entering the passcode 10147191. A transcript of the call and the webcast replay will be available at our 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 world. We specialize 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 119 properties containing a total of approximately 23.4 million rentable square feet, geographically diversified across 31 states. In addition, we own 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 our current expectations and involve various risks and uncertainties. Although we believe the expectations reflected in any forward-looking statements are based on reasonable assumptions, we 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 our annual report on Form 10-K and described from time to time in our other filings with the SEC. We undertake no obligation to publicly update or revise any forward-looking statements whether as a result of new information, future events, or otherwise.

 

FOURTH QUARTER AND FISCAL YEAR END 2020 SUPPLEMENTAL INFORMATION24

 

Notes:

 

(1) Non-U.S. GAAP Information: FFO, as defined by the National Association of Real Estate Investment Trusts (Nareit), represents net income attributable to common shareholders, as defined by accounting principles generally accepted in the United States of America (U.S. GAAP), excluding extraordinary items, as defined under 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. Included in the Nareit FFO White Paper - 2018 Restatement, is an option pertaining to assets incidental to our main business in the calculation of Nareit FFO to make an election to include or exclude mark-to-market changes in the value recognized on these marketable equity securities. In conjunction with the adoption of the FFO White Paper - 2018 Restatement, for all periods presented, we have elected to exclude unrealized gains and losses from our investments in marketable equity securities from our FFO calculation. Nareit created FFO as a non-GAAP supplemental measure of REIT operating performance. We define Adjusted Funds From Operations (AFFO) as FFO, excluding stock compensation expense, depreciation of corporate office capitalized costs, amortization of deferred financing costs, non-recurring severance expense, effect of non-cash U.S. GAAP straight-line rent adjustments and subtracting recurring capital expenditures. We define recurring capital expenditures as all capital expenditures that are recurring in nature, 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 believe that, as widely recognized measures of performance used by other REITs, FFO and AFFO may be considered by investors as supplemental measures to compare our operating performance to those of other REITs. FFO and AFFO exclude historical cost depreciation as an expense and may facilitate the comparison of REITs which have a different cost basis. However, other REITs may use different methodologies to calculate FFO and AFFO and, accordingly, our FFO and AFFO may not be comparable to all other REITs. The items excluded from FFO and AFFO are significant components in understanding our financial performance.

 

FFO and AFFO are non-GAAP performance measures and (i) do not represent Cash Flow from Operations as defined by U.S. GAAP; (ii) should not be considered as an alternative to Net Income or Net Income Attributable to Common Shareholders as a measure of operating performance or to Cash Flows from Operating, Investing and Financing Activities; and (iii) are not an alternative to Cash Flows from Operating, Investing and Financing Activities as a measure of liquidity. FFO and AFFO, as calculated by us, 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 (Loss) Attributable to Common Shareholders to the Company’s FFO and AFFO for the three and twelve months ended September 30, 2020 and 2019 (in thousands):

 

   Three Months Ended   Twelve Months Ended 
   9/30/2020   9/30/2019   9/30/2020   9/30/2019 
Net Income (Loss) Attributable to Common Shareholders  $(3,917)  $22,690   $(48,617)  $11,026 
Less/Plus: Unrealized Holding (Gains) Losses Arising During the Periods   10,280    (13,988)   77,380    24,680 
Plus: Depreciation Expense (excluding Corporate Office Capitalized Costs)   11,963    10,826    46,437    42,518 
Plus: Amortization of Intangible Assets   598    491    2,137    1,986 
Plus: Amortization of Capitalized Lease Costs   299    261    1,146    987 
FFO Attributable to Common Shareholders   19,223    20,280    78,483    81,197 
Plus: Depreciation of Corporate Office Capitalized Costs   57    126    234    502 
Plus: Stock Compensation Expense   84    210    452    784 
Plus: Amortization of Financing Costs   329    297    1,413    1,253 
Plus: Non-recurring Severance Expense   -0-    -0-    786    -0- 
Less: Effect of Non-cash U.S. GAAP Straight-line Rent Adjustment   (517)   (574)   (1,976)   (1,926)
Less: Recurring Capital Expenditures   (1,009)   (227)   (2,453)   (2,115)
AFFO Attributable to Common Shareholders  $18,167   $20,112   $76,939   $79,695 

 

The following are the Cash Flows provided by (used in) Operating, Investing and Financing Activities for the twelve months ended September 30, 2020 and 2019 (in thousands):

 

   Twelve Months Ended 
   9/30/2020   9/30/2019 
         
Operating Activities  $98,829   $100,748 
Investing Activities   (180,676)   (213,634)
Financing Activities   85,185    123,741 

 

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FOURTH QUARTER AND FISCAL YEAR END 2020 SUPPLEMENTAL INFORMATION25