Monmouth Real Estate Investment Corporation Reports Results for the Third Quarter Ended June 30, 2010

News provided by

Monmouth Real Estate Investment Corporation

Aug 06, 2010, 08:41 ET

FREEHOLD, N.J., Aug. 6 /PRNewswire-FirstCall/ -- Monmouth Real Estate Investment Corporation (NYSE: MNR) reported net income attributable to common shareholders was $1,733,000 or $.05 per common share for three months ended June 30, 2010 as compared to net income attributable to common shares of $1,259,000 or $.05 per common share for the three months ended June 30, 2009.  Funds from operations (FFO) were $4,338,000 or $.14 per share for the three months ended June 30, 2010, as compared to $3,692,000 or $.15 per share for the three months ended June 30, 2009.   During three months ended June 30, 2010, the Company incurred non-recurring expenses of approximately $675,000 or $0.02 per share.  Excluding the effect of these non-recurring items, FFO would have been $5,013,000 or $0.16 per share.

A summary of significant financial information for the three and nine months ended June 30, 2010 and 2009 is as follows:

Three Months Ended
June 30,


2010

2009

Rental and Reimbursement Revenue

$

11,506,000

$

10,189,000

Total Expenses

$

6,725,000

$

5,374,000

Interest and Dividend Income

$

680,000

$

569,000

Gain (Loss) on Securities Transactions, net

$

672,000

$

(107,000)

Net Income (Loss) Attributable to Common Shareholders

$

1,733,000

$

1,259,000

Net Income (Loss) Attributable to Common Shareholders Per Common Share

$

.05

$

.05

FFO (1)

$

4,338,000

$

3,692,000

FFO Per Common Share (1)

$

.14

$

.15

Weighted Avg. Diluted Common Shares Outstanding


32,046,000

25,305,000


Nine Months Ended
June 30,


2010

2009

Rental and Reimbursement Revenue

$

33,462,000

$

30,924,000

Total Expenses

$

17,905,000

$

15,912,000

Interest and Dividend Income

$

1,819,000

$

1,852,000

Gain (Loss) on Securities Transactions, net

$

1,783,000

$

(6,689,000)

Net Income (Loss) Attributable to Common Shareholders

$

6,079,000

$

(2,392,000)

Net Income (Loss) Attributable to Common Shareholders Per Common Share

$

.21

$

(.10)

FFO (1)

$

13,728,000

$

5,502,000

FFO Per Common Share (1)

$

.47

$

.21

Weighted Avg. Diluted Common Shares Outstanding

29,279,000

24,820,000

A summary of significant balance sheet information as of June 30, 2010 and September 30, 2009 is as follows:


June  30,
2010

September 30,
2009

Total Real Estate Investments

$

390,654,000

$

344,664,000

Securities Available for Sale

$

35,356,000

$

27,825,000

Total Assets

$

454,194,000

$

394,994,000

Mortgage Notes Payable

$

213,985,000

$

192,050,000

Subordinated Convertible Debentures

$

13,990,000

$

13,990,000

Loans Payable

$

8,788,000

$

19,064,000

Total Shareholders' Equity

$

211,701,000

$

164,891,000

Eugene W. Landy, President, commented on the results of the third quarter ended June 30, 2010, "We are very pleased with the results of our third quarter. Our rental and reimbursement revenue increased $1.3 million or 13% as a result of our recent acquisitions, while our occupancy rate remained solid at 96%. We are also pleased to report that all 6 leases that were set to expire in fiscal 2010 have been renewed. During the quarter we raised an additional $28.2 million in a common stock offering and purchased one industrial property in the Charlotte, North Carolina market, representing 113,000 square feet for approximately $12.6 million.  We also fully repaid our credit line.  Based on our current liquidity position and full availability of our undrawn $15.0 million credit line, we are well positioned to continue to grow our portfolio.  We also have approximately $35.0 million in our securities portfolio as an additional source of potential liquidity to continue to support our growth."  

Monmouth Real Estate Investment Corporation, a real estate investment trust (REIT) specializing in net-leased industrial properties, will host its Third Quarter 2010 Financial Results Webcast and Conference Call.  Senior management will discuss quarterly results, current market conditions and future outlook on Monday, August 9, 2010 at 10:00 a.m. Eastern Time.

Monmouth Real Estate's third quarter financial results being released herein will be available on the company website at www.mreic.com in the "Financial 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 877-317-6789 (domestically) or 412-317-6789 (internationally).

The replay of the conference call will be available at 12:00 p.m. Eastern Time on Monday, August 9, 2010.  It will be available until September 30, 2010, and can be accessed by dialing toll free 877-344-7529 (domestically) and 412-317-0088 (internationally) and entering the passcode 441877.  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, which was organized in 1968, is a publicly-owned real estate investment trust specializing in net-leased industrial properties.  The Company's portfolio consists of sixty-two industrial properties and one shopping center located in twenty-five 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. 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. Factors and risks 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:  Funds from operations (FFO) is defined as net income (loss) applicable to common shareholders, excluding gains or losses from sales of depreciable assets, plus real estate-related depreciation and amortization.   FFO per share is defined as FFO divided by weighted average shares outstanding.  FFO and FFO per share should be considered as supplemental measures of operating performance used by real estate investment trusts (REITs).  FFO and FFO per 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 FFO per share are significant components in understanding the Company's financial performance.

FFO and FFO per 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 FFO per share, as calculated by the Company, may not be comparable to similarly entitled measures reported by other REITs.  

The Company's FFO for the three and nine months ended June 30, 2010 and 2009 is calculated as follows:

Three Months Ended

Nine Months Ended









6/30/10

6/30/09

6/30/10

6/30/09








Net Income (Loss)

$2,416,000

$1,927,000

$8,122,000

($409,000)

Income to Noncontrolling Interest

(52,000)

(38,000)

(152,000)

(93,000)

Preferred Dividend

(630,000)

(630,000)

(1,890,000)

(1,891,000)

Depreciation Expense

2,337,000

2,136,000

6,842,000

6,311,000

Depreciation Expense Related to Discontinued Operations

5,000

11,000

34,000


64,000

Amortization of In-Place Lease Intangible Assets


263,000

286,000

772,000

860,000

Amortization of In-Place Lease Intangible Assets Related to Discontinued Operations

-


-


-


360,000

FFO

$4,339,000

$3,692,000

$13,728,000

$5,202,000

The following are the cash flows provided (used) by operating, investing and financing activities for the nine months ended June 30, 2010 and 2009:



Nine Months Ended

2010

2009




Operating Activities

$14,703,000

$15,035,000

Investing Activities

(52,541,485)

(6,630,000)

Financing Activities

42,975,058

(5,401,000)

The following is the net income (loss) per common share for the three and nine months ended June 30, 2010 and 2009:

Three Months Ended

Nine Months Ended

6/30/10

6/30/09

6/30/10

6/30/09








BASIC INCOME (LOSS) – PER SHARE







   Income (Loss) from Continuing Operations

$.07

$.07

$.28

($.01)

   Income (Loss) from Discontinued Operations


-

-

-

(.01)

   Net Income (Loss)

.07

.07

.28

(.02)

   Less:  Net Income Attributable to Noncontrolling Interests

-

-

(.01)

-

   Net Income (Loss) Attributable to MREIC's Shareholders

.07

.07

.27

(.02)

   Less:  Preferred Dividend

(.02)

(.02)

(.06)

(.08)

   Net Income (Loss) Attributable to MREIC's Common Shareholders

$.05

$.05

$.21

($.10)
















DILUTED INCOME (LOSS) – PER SHARE






   Income (Loss) from Continuing Operations

$.07

$.07

$.28

($.01)

   Income (Loss) from Discontinued Operations


-

-

-

(.01)

   Net Income (Loss)

.07

.07

.28

(.02)

   Less:  Net Income Attributable to Noncontrolling Interests

-

-

(.01)

-

   Net Income (Loss) Attributable to MREIC's Shareholders

.07

.07

.27

(.02)

   Less:  Preferred Dividend

(.02)

(.02)

(.06)

(.08)

   Net Income (Loss) Attributable to MREIC's Common Shareholders

$.05

$.05

$.21

($.10)

SOURCE Monmouth Real Estate Investment Corporation

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