Monmouth Real Estate Investment Corporation Reports Results For The Fiscal Year Ended And The Fourth Quarter Ended September 30, 2014
FREEHOLD, N.J., Dec. 10, 2014 /PRNewswire/ -- Monmouth Real Estate Investment Corporation (NYSE: MNR) reported Core Funds from Operations (Core FFO) of $28,977,000 or $0.58 per diluted share for the fiscal year ended September 30, 2014 as compared to $27,378,000 or $0.65 per diluted share for the fiscal year ended September 30, 2013. Adjusted Funds from Operations (AFFO), for the fiscal year ended September 30, 2014 was $25,801,000 or $0.52 per diluted share versus $19,522,000 or $0.46 per diluted share for the fiscal year ended September 30, 2013.
Core FFO for the three months ended September 30, 2014 was $7,539,000 or $0.13 per diluted share as compared to $5,409,000 or $0.12 per diluted share for the three months ended September 30, 2013. AFFO for the three months ended September 30, 2014 was $6,721,000 or $0.12 per diluted share versus $5,347,000 or $0.12 per diluted share for the three months ended September 30, 2013.
A summary of significant financial information for the three and twelve months ended September 30, 2014 and 2013 is as follows:
| Three Months Ended September 30, |
||||
| 2014 |
2013 |
|||
| Rental Revenue |
$ |
14,473,000 |
$ |
12,121,000 |
| Reimbursement Revenue |
$ |
2,453,000 |
$ |
2,299,000 |
| Lease Termination Income |
$ |
- |
$ |
- |
| Net Operating Income (NOI) (1) |
$ |
13,949,000 |
$ |
11,657,000 |
| Total Expenses |
$ |
9,346,000 |
$ |
8,003,000 |
| Interest and Dividend Income |
$ |
1,005,000 |
$ |
914,000 |
| Gain on Sale of Securities Transactions, net |
$ |
684,000 |
$ |
157,000 |
| Income from Continuing Operations |
$ |
5,204,000 |
$ |
3,864,000 |
| Income from Discontinued Operations |
$ |
- |
$ |
- |
| Net Income Attributable to Common Shareholders |
$ |
3,053,000 |
$ |
1,712,000 |
| Net Income Attributable to Common Shareholders Per Diluted Common Share |
$ |
0.06 |
$ |
0.03 |
| Core FFO (1) |
$ |
7,539,000 |
$ |
5,409,000 |
| Core FFO per Diluted Common Share (1) |
$ |
0.13 |
$ |
0.12 |
| AFFO (1) |
$ |
6,721,000 |
$ |
5,347,000 |
| AFFO per Diluted Common Share (1) |
$ |
0.12 |
$ |
0.12 |
| Weighted Avg. Diluted Common Shares Outstanding |
56,754,000 |
43,893,000 |
||
| Twelve Months Ended September 30, |
||||
| 2014 |
2013 |
|||
| Rental Revenue |
$ |
55,512,000 |
$ |
46,880,000 |
| Reimbursement Revenue |
$ |
9,160,000 |
$ |
7,727,000 |
| Lease Termination Income |
$ |
1,183,000 |
$ |
691,000 |
| Net Operating Income (NOI) (1) |
$ |
53,355,000 |
$ |
45,378,000 |
| Total Expenses |
$ |
35,229,000 |
$ |
29,609,000 |
| Interest and Dividend Income |
$ |
3,883,000 |
$ |
3,886,000 |
| Gain on Sale of Securities Transactions, net |
$ |
2,167,000 |
$ |
7,133,000 |
| Income from Continuing Operations |
$ |
19,845,000 |
$ |
21,104,000 |
| Income from Discontinued Operations |
$ |
- |
$ |
292,000 |
| Net Income Attributable to Common Shareholders |
$ |
11,238,000 |
$ |
12,788,000 |
| Net Income Attributable to Common Shareholders Per Diluted Common Share |
$ |
0.23 |
$ |
0.30 |
| Core FFO (1) |
$ |
28,977,000 |
$ |
27,378,000 |
| Core FFO per Diluted Common Share (1) |
$ |
0.58 |
$ |
0.65 |
| AFFO (1) |
$ |
25,801,000 |
$ |
19,522,000 |
| AFFO per Diluted Common Share (1) |
$ |
0.52 |
$ |
0.46 |
| Weighted Avg. Diluted Common Shares Outstanding |
49,925,000 |
42,432,000 |
||
A summary of significant balance sheet information as of September 30, 2014 and September 30, 2013 is as follows:
| September 30, 2014 |
September 30, 2013 |
|||
| Net Real Estate Investments |
$ |
636,923,000 |
$ |
536,799,000 |
| Securities Available for Sale at Fair Value |
$ |
59,311,000 |
$ |
45,452,000 |
| Total Assets |
$ |
743,757,000 |
$ |
617,241,000 |
| Mortgage Notes Payable |
$ |
287,796,000 |
$ |
250,093,000 |
| Loans Payable |
$ |
25,200,000 |
$ |
22,200,000 |
| Total Shareholders' Equity |
$ |
420,631,000 |
$ |
335,915,000 |
Michael P. Landy, President and CEO, commented on the results for the fiscal year 2014,
"Monmouth continued to successfully grow our high quality portfolio and build long-term value for our shareholders. During the year, the Company accomplished the following:
- Acquired 1.5 million square feet of high quality industrial space at an aggregate cost of $97.6 million resulting in a 17% increase in our gross leasable area
- Completed seven property expansions totaling $23.2 million and is in the process of completing several additional expansions
- Re-leased 291,000 square feet including 230,000 square feet in lease renewals, representing 66% of fiscal 2014 lease expirations
- Maintained an industrial sector leading occupancy rate of 95.9%
- Raised approximately $65.1 million in net proceeds through a public offering of 8.1 million shares of the Company's Common Stock
- Raised approximately $38.1 million in equity through the DRIP
- Increased our total market capitalization 27% to $1.0 billion at fiscal yearend
- Increased Net Operating Income 18% to $53.4 million
- Generated AFFO per share growth of 13%
- Entered into commitments to acquire an additional 3.8 million square feet of high quality industrial space in fiscal 2015 and fiscal 2016, of which 600,000 square feet has been acquired thus far in fiscal 2015
- Outperformed the broad REIT market by generating an 18.7% total return versus a 13.3% total return for the RMS."
Mr. Landy stated, "Our business model of investing in net-leased industrial properties on long-term leases to investment grade tenants continued to deliver strong performance. AFFO for the full fiscal year increased by 13%, from $0.46 per share last year to $0.52 this year. During fiscal 2014 we continued to keep our properties well leased and ended the year with an occupancy rate of 95.9%."
"Over the course of fiscal 2014, we acquired approximately 1.5 million square feet of high quality industrial space at an aggregate cost of $97.6 million, representing a 17% increase in our gross leasable area. In keeping with our long-term business plan, this growth was achieved by purchasing well-located, new built-to-suit buildings, leased to strong credit tenants."
"Subsequent to yearend, the Company acquired four new built-to-suit properties containing a total of 559,000 square feet for a total of $40.3 million. This brings our current portfolio to a total of 86 properties containing 11.8 million rentable square feet, geographically diversified across 28 states."
"We are very excited about our best in class acquisition pipeline, which now contains nine new build-to-suit properties consisting of 3.2 million square feet, representing $266 million in total acquisitions scheduled to close over the next several quarters."
Monmouth Real Estate Investment Corporation will host its Fourth Quarter and Fiscal Year-End 2014 Financial Results Webcast and Conference Call. Senior management will discuss the results, current market conditions and future outlook on Thursday, December 11, 2014 at 10:00 a.m. Eastern Time.
The Company's Fourth Quarter and Fiscal Year-End 2014 financial results being released herein will be available on the Company's website at www.mreic.com in the "Financial Filings" section.
To participate in the Webcast, select the microphone icon in the Webcast section of the Company's homepage on the Company's website at www.mreic.com. Interested parties can also participate via conference call by calling toll free 877-510-5852 (domestically) or 412-902-4138 (internationally).
The replay of the conference call will be available at 12:00 p.m. Eastern Time on Thursday, December 11, 2014. It will be available until February 1, 2015, and can be accessed by dialing toll free 877-344-7529 (domestically) and 412-317-0088 (internationally) and entering the passcode 10052024. A transcript of the call and the webcast replay will be available at the Company's website, www.mreic.com.
Monmouth Real Estate Investment Corporation, founded in 1968 and one of the oldest public equity REITs in the U.S., specializes 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 eighty-six properties located in twenty-eight states, containing a total of approximately 11.8 million rentable square feet. In addition, the Company owns a portfolio of REIT securities.
Certain statements included in this press release which are not historical facts may be deemed forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Any such forward-looking statements are based on the Company's current expectations and involve various risks and uncertainties. Although the Company believes the expectations reflected in any forward-looking statements are based on reasonable assumptions, the Company can provide no assurance those expectations will be achieved. The risks and uncertainties that could cause actual results or events to differ materially from expectations are contained in the Company's annual report on Form 10-K and described from time to time in the Company's other filings with the SEC. The Company undertakes no obligation to publicly update or revise any forward-looking statements whether as a result of new information, future events, or otherwise.
Notes:
(1) Non-U.S. GAAP Information: FFO is defined by the National Association of Real Estate Investment Trusts ("NAREIT") as net income applicable to common shareholders, excluding gains or losses from sales of depreciable assets, plus real estate-related depreciation and amortization. We define Core FFO as FFO plus acquisition costs. We define AFFO as Core FFO excluding lease termination income, gains or losses on securities transactions, stock based compensation expense, amortization of deferred financing and deferred leasing costs, recurring capital expenditures and straight-line rent adjustments. We define NOI as recurring rental and reimbursement revenues less real estate and other operating expenses. FFO, Core FFO and AFFO per diluted common share are defined as FFO, Core FFO and AFFO divided by weighted average diluted common shares outstanding. FFO, Core FFO and AFFO per diluted common share, as well as NOI, should be considered as supplemental measures of operating performance used by real estate investment trusts (REITs). FFO, Core FFO and AFFO per diluted common share exclude historical cost depreciation as an expense and may facilitate the comparison of REITs which have different cost basis. The items excluded from FFO, Core FFO and AFFO per diluted common share are significant components in understanding the Company's financial performance.
FFO, Core FFO and AFFO per diluted common share (A) do not represent cash flow from operations as defined by accounting principles generally accepted in the United States of America; (B) should not be considered as an alternative to net income as a measure of operating performance or to cash flows from operating, investing and financing activities; and (C) are not alternatives to cash flow as a measure of liquidity. FFO, Core FFO and AFFO per diluted common share, as well as NOI, as calculated by the Company, may not be comparable to similarly titled measures reported by other REITs.
The Company's FFO and Core FFO for the three and twelve months ended September 30, 2014 and 2013 are calculated as follows:
| Three Months Ended |
Twelve Months Ended |
||||||
| 9/30/2014 |
9/30/2013 |
9/30/2014 |
9/30/2013 |
||||
| Net Income Attributable to Common Shareholders |
$3,053,000 |
$1,712,000 |
$11,238,000 |
$12,788,000 |
|||
| Depreciation Expense (including Discontinued Operations) |
4,129,000 |
3,281,000 |
15,909,000 |
12,877,000 |
|||
| Amortization of Intangible Assets |
338,000 |
361,000 |
1,348,000 |
1,544,000 |
|||
| Gain on Sale of Investment Property |
- |
- |
- |
(346,000) |
|||
| FFO Attributable to Common Shareholders |
7,520,000 |
5,354,000 |
28,495,000 |
26,863,000 |
|||
| Acquisition Costs |
19,000 |
55,000 |
482,000 |
515,000 |
|||
| Core FFO Attributable to Common Shareholders |
$7,539,000 |
$5,409,000 |
$28,977,000 |
$27,378,000 |
|||
The Company's Core FFO, excluding the net Gain on Securities Transactions for the three and twelve months ended September 30, 2014 and 2013 are calculated as follows:
| Three Months Ended |
Twelve Months Ended |
||||||
| 9/30/2014 |
9/30/2013 |
9/30/2014 |
9/30/2013 |
||||
| Core FFO Attributable to Common Shareholders |
$7,539,000 |
$5,409,000 |
$28,977,000 |
$27,378,000 |
|||
| Less: Gain on Sale of Securities Transactions, net |
684,000 |
157,000 |
2,167,000 |
7,133,000 |
|||
| Core FFO, excluding net Gain on Sale of Securities Transactions Attributable to Common Shareholders |
$6,855,000 |
$5,252,000 |
$26,810,000 |
$20,245,000 |
|||
The following are the Cash Flows provided (used) by Operating, Investing and Financing Activities for the twelve months ended September 30, 2014 and 2013:
| Twelve Months Ended |
|||
| 09/30/2014 |
09/30/2013 |
||
| Operating Activities |
$34,775,000 |
$27,515,000 |
|
| Investing Activities |
(131,794,000) |
(60,351,000) |
|
| Financing Activities |
105,090,000 |
20,589,000 |
|
To view the original version on PR Newswire, visit:http://www.prnewswire.com/news-releases/monmouth-real-estate-investment-corporation-reports-results-for-the-fiscal-year-ended-and-the-fourth-quarter-ended-september-30-2014-300008053.html
SOURCE Monmouth Real Estate Investment Corporation
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