Monmouth Real Estate Investment Corporation Reports Three-Month Earnings

FREEHOLD, N.J., Feb. 8, 2011 /PRNewswire/ -- Monmouth Real Estate Investment Corporation (NYSE: MNR) reported net income applicable to common shareholders of $3,766,000 or $0.11 per common share for the three months ended December 31, 2010, as compared to $1,844,000 or $0.07 per common share for the three months ended December 31, 2009.  Funds from operations (FFO) per share was $0.19 for the three months ended December 31, 2010 as compared to $0.16 for the three months ended December 31, 2009. FFO for the quarter ended December 31, 2010 included gains on securities transactions of $2,808,000 or $0.08 per share compared to gains of $329,000 or $0.01 per share for the quarter ended December 31, 2009.  In addition, FFO in the latest quarter included one time charges of $678,000 or $0.02 per share, comprising of $275,000 in G&A expenses and $403,000 in acquisition related costs.  

A summary of significant financial information for the three months ended December 31, 2010 and 2009 is as follows:

A summary of significant balance sheet information as of December 31, 2010 and September 30, 2010 is as follows:

Eugene W. Landy, President, commented on the results of the first quarter of fiscal year 2011, "We are very pleased with the results for our first quarter of fiscal 2011 which represent continued progress for the Company. Over the quarter, we raised $19 million through a registered direct placement of our Series A Preferred Stock. We acquired 450,000 square feet of industrial assets at an aggregate cost of $24.5 million.  We completed the $4.1 million buyout of a minority interest giving us 100% ownership of our FedEx Ground facility in Wheeling, Illinois. We realized $2.8 million in gains on our REIT securities investments, and we consummated the remaining lease negotiations giving us a 100% lease renewal rate for the second consecutive year. With our occupancy rate at 97% and our strong capital position, the Company is well positioned to continue to grow in 2011."  

Monmouth Real Estate Investment Corporation will be hosting the Company's First Quarter 2011 Financial Results Webcast and Conference Call, where senior management will discuss quarterly results, current market conditions and future outlook on Wednesday, February 9, 2011, at 10:00 a.m. Eastern Time.

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 Wednesday, February 9, 2011.  It will be available until February 25, 2011, and can be accessed by dialing toll free 877-344-7529 (domestically) or 412-317-0088 (internationally) and entering the passcode 447226.  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 (MREIC or the Company), which was organized in 1968, is a publicly-owned REIT specializing in net-leased industrial properties.  The Company's portfolio consists of sixty-four 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 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 and FFO per share for the three months ended December 31, 2010 and 2009 are calculated as follows:

The following are the cash flows provided (used) by operating, investing and financing activities for the three months ended December 31, 2010 and 2009:

The following is the net income per common share for the three months ended December 31, 2010 and 2009:

SOURCE Monmouth Real Estate Investment Corporation