2014

Monmouth Real Estate Investment Corporation Reports 1st Quarter 2013 Financial Results For The Period Ended December 31, 2012

FREEHOLD, N.J., Feb. 7, 2013 /PRNewswire/ -- Monmouth Real Estate Investment Corporation (NYSE: MNR) reported Core Funds from Operations (Core FFO) for the three months ended December 31, 2012 of $7,459,000 or $0.18 per diluted share versus $7,754,000 or $0.21 per diluted share for the three months ended December 31, 2011. Funds from operations (FFO) as defined by the National Association of Real Estate Investment Trusts (NAREIT) was $7,073,000 or $0.17 per diluted share for the three months ended December 31, 2012 as compared to $7,450,000 or $0.20 per diluted share for the three months ended December 31, 2011.  FFO, as defined by NAREIT, for the current quarter included $386,000 of acquisition related costs, which are not included in Core FFO.        

A summary of significant financial information for the three months ended December 31, 2012 and 2011 is as follows:



Three Months Ended

December 31,








2012


2011

Rental Revenue

$

11,309,000

$

10,658,000

Reimbursement Revenue

$

1,518,000

$

1,580,000

Lease Termination Income

$

691,000

$

0

Total Expenses

$

6,492,000

$

6,176,000

Interest and Dividend Income

$

1,123,000

$

949,000

Gain on Securities Transactions, net

$

2,111,000

$

2,788,000

Income from Continuing Operations

$

5,711,000

$

5,318,000

Income (Loss) from Discontinued Operations

$

(4,026)

$

48,000

Net Income Attributable to Common Shareholders

$

3,555,000

$

4,346,000

Net Income Attributable to Common Shareholders

    Per Common Share

$

0.09

$

 

0.12

Core FFO (1)

$

7,459,000

$

7,754,000

Core FFO per Common Share (1)

$

0.18

$

0.21

Weighted Avg. Diluted Common Shares Outstanding


41,110,000


37,472,000

                                                           

A summary of significant balance sheet information as of December 31, 2012 and September 30, 2012 is as follows:

 



December 31,

2012


September 30,

2012

Net Real Estate Investments

$

508,264,000

$

467,886,000

Securities Available for Sale

$

66,786,000

$

61,685,000

Total Assets

$

610,034,000

$

574,508,000

Mortgage Notes Payable

$

256,287,000

$

237,944,000

Subordinated Convertible Debentures

$

0

$

8,615,000

Loans Payable

$

27,708,000

$

5,200,000

Total Shareholders' Equity

$

318,403,000

$

315,687,000

                                                                              

Eugene W. Landy, President, commented on the results of the first quarter of fiscal year 2013, "During the quarter we acquired two new properties comprised of 787,000 square feet for a total of $42.4 million. We expect these two properties to generate a combined total of approximately $3.2 million in annual rent going forward.  We financed these properties with a total of $27 million of mortgage financing at an average interest rate of 4.0%. In addition, we purchased 4.1 acres of land adjacent to our property located in Orion, MI for approximately $1.0 million in connection with a 52,154 square feet expansion expected to be completed in fiscal 2013. We have now secured lease renewals on 554,000 of the 897,000 square feet in leases originally set to expire this fiscal year. Additional lease renewals are currently under discussion. Our portfolio occupancy remains strong and is currently 94%, reflecting the high quality of our assets. Our REIT securities portfolio continued to perform well generating $2.1 million in realized gains over the quarter. The Company remains very focused on continuing to grow our high quality portfolio of industrial properties leased to investment grade tenants through a combination of opportunistic acquisitions and by executing on our strong development pipeline."

Monmouth Real Estate Investment Corporation will host its First Quarter 2013 Financial Results Webcast and Conference Call.  Senior management will discuss the results, current market conditions and future outlook on Friday, February 8, 2013 at 10:00 a.m. Eastern Time.

The Company's first quarter financial results being released herein will be available on the Company's website at www.mreic.com in the "Financial Information and Filings" section.

To participate in the Webcast, select the microphone icon at the top of the homepage on the Company's website at www.mreic.com.  Interested parties can also participate via conference call by calling toll free 888-317-6016 (domestically) or 412-317-6016 (internationally).                                                        

The replay of the conference call will be available at 12:00 p.m. Eastern Time on Friday February 8, 2013.  It will be available until March 31, 2013, and can be accessed by dialing toll free 877-344-7529 (domestically) and 412-317-0088 (internationally) and entering the passcode 10022450.  A transcript of the call and the webcast replay will be available at the Company's website, www.mreic.com.

Formed in 1968, Monmouth Real Estate Investment Corporation is a publicly-owned real estate investment trust specializing in net-leased industrial properties subject to long-term leases primarily to investment grade tenants.  The Company is a fully integrated and self-managed real estate company, whose property portfolio consists of seventy-three industrial properties and one shopping center located in twenty-six 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-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.   Core FFO is defined as FFO plus acquisition costs.  FFO per diluted common share is defined as FFO divided by weighted average diluted common shares outstanding.  FFO and Core FFO per diluted common share should be considered as supplemental measures of operating performance used by real estate investment trusts (REITs).  FFO and Core FFO per diluted common share exclude historical cost depreciation as an expense and may facilitate the comparison of REITs which have different cost basis.  The items excluded from FFO and Core FFO per diluted common share are significant components in understanding the Company's financial performance.

FFO and Core FFO per diluted common share (A) do not represent cash flow from operations as defined by generally accepted accounting principles; (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 and Core FFO per diluted common share, as calculated by the Company, may not be comparable to similarly entitled measures reported by other REITs.

The Company's FFO and Core FFO for the three months ended December 31, 2012 and 2011 are calculated as follows:

 


Three Months Ended


12/31/12


12/31/11





Net Income Attributable to Common Shareholders

$3,555,000


$4,346,000

Depreciation Expense

3,134,000


2,786,000

Amortization of Lease Intangible Assets

384,000


318,000

FFO Attributable to Common Shareholders

$7,073,000


$7,450,000

Acquisition Costs

386,000


304,000

Core FFO Attributable to Common Shareholders

$7,459,000


$7,754,000

                                           

The following are the cash flows provided (used) by operating, investing and financing activities for the quarters ended December 31, 2012 and 2011:

 


2012


2011





Operating Activities

$4,992,000


$5,762,000

Investing Activities

(49,688,000)


(32,379,000)

Financing Activities

30,329,000


28,958,000

SOURCE Monmouth Real Estate Investment Corporation



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