Monmouth Real Estate Investment Corporation Reports 2nd Quarter 2013 Financial Results For The Period Ended March 31, 2013
FREEHOLD, N.J., May 8, 2013 /PRNewswire/ -- Monmouth Real Estate Investment Corporation (NYSE: MNR) reported Core Funds from Operations (Core FFO) for the three months ended March 31, 2013 of $8,799,000 or $0.21 per diluted share versus $10,654,000 or $0.27 per diluted share for the three months ended March 31, 2012. Core FFO for the prior year period included $3,222,000 or $0.08 per share in non-recurring lease termination fees. Excluding the effect of these fees, Core FFO for the three months ended March 31, 2012 was $7,432,000 or $0.19 per diluted share.
A summary of significant financial information for the three and six months ended March 31, 2013 and 2012 is as follows:
| Three Months Ended March 31, |
||||
| 2013 |
2012 |
|||
| Rental Revenue |
$ |
11,738,000 |
$ |
10,692,000 |
| Reimbursement Revenue |
$ |
1,568,000 |
$ |
1,876,000 |
| Lease Termination Income |
$ |
- |
$ |
3,222,000 |
| Total Expenses |
$ |
6,776,000 |
$ |
6,692,000 |
| Interest and Dividend Income |
$ |
1,005,000 |
$ |
893,000 |
| Gain on Securities Transactions, net |
$ |
3,803,000 |
$ |
2,209,000 |
| Income from Continuing Operations Income (Loss) from Discontinued Operations |
$ $ |
7,343,000 300,000 |
$ $ |
8,304,000 (44,000) |
| Net Income Attributable to Common Shareholders |
$ |
5,492,000 |
$ |
7,240,000 |
| Net Income Attributable to Common Shareholders Per Common Share |
$ |
0.13 |
$ |
0.18 |
| Core FFO (1) |
$ |
8,799,000 |
$ |
10,654,000 |
| Core FFO per Common Share (1) |
$ |
0.21 |
$ |
0.27 |
| Core FFO Excluding Lease Termination Fees (1) |
$ |
8,799,000 |
$ |
7,432,000 |
| Core FFO Excluding Lease Termination Fees per Common Share (1) |
$ |
0.21 |
$ |
0.19 |
| Weighted Avg. Diluted Common Shares Outstanding |
41,989,000 |
40,044,000 |
||
| Six Months Ended March 31, |
||||
| 2013 |
2012 |
|||
| Rental Revenue |
$ |
23,048,000 |
$ |
21,350,000 |
| Reimbursement Revenue |
$ |
3,086,000 |
$ |
3,456,000 |
| Lease Termination Income |
$ |
691,000 |
$ |
3,222,000 |
| Total Expenses |
$ |
13,761,000 |
$ |
13,256,000 |
| Interest and Dividend Income |
$ |
2,128,000 |
$ |
1,842,000 |
| Gain on Securities Transactions, net |
$ |
5,913,000 |
$ |
4,998,000 |
| Income from Continuing Operations Income (Loss) from Discontinued Operations |
$ $ |
13,054,000 296,000 |
$ $ |
13,622,000 4,000 |
| Net Income Attributable to Common Shareholders |
$ |
9,047,000 |
$ |
11,586,000 |
| Net Income Attributable to Common Shareholders Per Common Share |
$ |
0.22 |
$ |
0.30 |
| Core FFO (1) |
$ |
16,259,000 |
$ |
18,416,000 |
| Core FFO per Common Share (1) |
$ |
0.39 |
$ |
0.48 |
| Core FFO Excluding Lease Termination Fees (1) |
$ |
15,568,000 |
$ |
15,194,000 |
| Core FFO Excluding Lease Termination Fees per Common Share (1) |
$ |
0.37 |
$ |
0.39 |
| Weighted Avg. Diluted Common Shares Outstanding |
41,545,000 |
38,750,000 |
||
A summary of significant balance sheet information as of March 31, 2013 and September 30, 2012 is as follows:
| March 31, 2013 |
September 30, 2012 |
|||
| Net Real Estate Investments |
$ |
507,296,000 |
$ |
467,886,000 |
| Securities Available for Sale |
$ |
52,264,000 |
$ |
61,685,000 |
| Total Assets |
$ |
604,773,000 |
$ |
574,508,000 |
| Mortgage Notes Payable |
$ |
251,353,000 |
$ |
237,944,000 |
| Subordinated Convertible Debentures |
$ |
- |
$ |
8,615,000 |
| Loans Payable |
$ |
17,200,000 |
$ |
5,200,000 |
| Total Shareholders' Equity |
$ |
327,900,000 |
$ |
315,687,000 |
Michael P. Landy, President, commented on the results of the second quarter of fiscal year 2013, "The recent quarter represented continued progress across multiple fronts. Our occupancy rate improved by 100 basis points and to 95% compared to occupancy of 94% reported in the December 2012 quarter. Our portfolio wide average lease maturity improved to 6.1 years from 6.0 years in the prior December quarter. We have now secured lease renewals on 93% of the 897,000 square feet in leases set to expire this fiscal year. We have $96 million in new acquisitions under contract representing 1.4 million square feet in new industrial build-to-suit properties secured by investment grade tenants on leases of 10 years or greater. These acquisitions are expected to close in the second half of fiscal 2013 and during fiscal 2014. Our REIT securities portfolio continued to perform well generating $3.8 million in realized gains during the second quarter and $5.9 million in gains realized thus far in fiscal 2013. At quarter end we had an additional $5.9 million in unrealized gains on our REIT securities investments. We are very pleased with our latest results and look forward to continuing to execute our growth strategy of investing in net-leased industrial properties on long-term leases to investment grade tenants."
Monmouth Real Estate Investment Corporation will host its Second Quarter 2013 Financial Results Webcast and Conference Call. Senior management will discuss the results, current market conditions and future outlook on Thursday, May 9, 2013 at 10:00 a.m. Eastern Time.
The Company's second 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 Thursday, May 9, 2013. It will be available until June 30, 2013, and can be accessed by dialing toll free 877-344-7529 (domestically) and 412-317-0088 (internationally) and entering the passcode 10025487. 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-two 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-US 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 accounting principles generally accepted in the United States of America; (B) should not be considered as an alternative to net income as a measure of operating performance or to cash flows from operating, investing and financing activities; and (C) are not alternatives to cash flow as a measure of liquidity. FFO and Core FFO per diluted common share, as calculated by the Company, may not be comparable to similarly titled measures reported by other REITs.
The Company's FFO and Core FFO for the three and six months ended March 31, 2013 and 2012 are calculated as follows:
| Three Months Ended |
Six Months Ended |
||||||
| 3/31/2013 |
3/31/2012 |
3/31/2013 |
3/31/2012 |
||||
| Net Income Attributable to Common Shareholders |
$5,492,000 |
$7,240,000 |
$9,047,000 |
$11,586,000 |
|||
| Depreciation Expense |
3,268,000 |
2,830,000 |
6,402,000 |
5,616,000 |
|||
| Amortization of Lease Intangible Assets |
385,000 |
322,000 |
770,000 |
640,000 |
|||
| (Gain) Loss on Sales of Depreciated Assets |
(346,000) |
- |
(346,000) |
8,000 |
|||
| FFO Attributable to Common Shareholders |
$8,799,000 |
$10,392,000 |
$15,873,000 |
$17,850,000 |
|||
| Acquisition Costs |
- |
262,000 |
386,000 |
566,000 |
|||
| Core FFO Attributable to Common Shareholders |
$8,799,000 |
$10,654,000 |
$16,259,000 |
$18,416,000 |
|||
The following are the cash flows provided (used) by operating, investing and financing activities for the six months ended March 31, 2013 and 2012:
| 2013 |
2012 |
||
| Operating Activities |
$11,690,000 |
$15,920,000 |
|
| Investing Activities |
(30,607,000) |
(43,439,000) |
|
| Financing Activities |
14,397,000 |
32,698,000 |
SOURCE Monmouth Real Estate Investment Corporation
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