Monmouth Real Estate Investment Corporation Reports Three-Month Earnings

FREEHOLD, N.J., Feb. 8 /PRNewswire-FirstCall/ -- Monmouth Real Estate Investment Corporation (Nasdaq: MNRTA) reported net income applicable to common shareholders of $1,844,000 or $0.07 per common share for the three months ended December 31, 2009, as compared to net loss applicable to common shareholders of ($1,624,000) or ($0.07) per common share for the three months ended December 31, 2008.  Funds from operations (FFO) per share was $0.16 for the three months ended December 31, 2009 as compared to $0.03 for the three months ended December 31, 2008.  The three months ended December 31, 2008 reflected a securities related non-cash impairment charge of $0.13 per share.  

A summary of significant financial information for the three months ended December 31, 2009 and 2008 is as follows:

    
    
                                                   Three Months Ended 
                                                       December 31,
                                                    2009        2008
                                                    ----        ----
    Rental and Reimbursement Revenue            $10,689,000  $10,282,000
    Total Expenses                               $5,581,000   $5,113,000
    Interest and Dividend Income                   $632,000     $659,000
    Gain (Loss) on Securities Transactions, net    $329,238  $(3,245,000)
    Net Income (Loss) Applicable to Common
     Shareholders                                $1,844,000  $(1,624,000)
    Net Income (Loss) Applicable to Common
     Shareholders Per Common Share                     $.07        $(.07)
    FFO (1)                                      $4,332,000     $802,000
    FFO Per Common Share (1)                           $.16         $.03
    Weighted Avg. Common Shares Outstanding      27,388,000   24,611,000
    
    

A summary of significant balance sheet information as of December 31, 2009 and September 30, 2009 is as follows:

    
    
    
                                           December 31,        September 30,
                                              2009                 2009
                                              ----                 ----
    Total Real Estate Investments          $366,514,000        $345,881,000
    Securities Available for Sale           $26,740,000         $27,825,000
    Total Assets                           $418,294,000        $394,994,000
    Mortgage Notes Payable                 $204,461,000        $192,050,000
    Subordinated Convertible Debentures     $13,990,000         $13,990,000
    Loans Payable                           $16,667,000         $19,064,000
    Total Shareholders' Equity             $177,603,000        $164,891,000
    
    

Eugene W. Landy, President, commented on the results of the first quarter of fiscal year 2010,   "We are very pleased with the results of our first fiscal quarter of 2010 which saw strong growth in revenues, cash flow, and total assets. We raised $10.4 million in a common stock offering and continued our strategy of investing in net-leased industrial properties on long-term leases to investment grade tenants by purchasing two industrial properties representing 541,000 square feet, including a 450,000 square foot facility in Memphis, Tennessee for $14.6 million and a 91,000 square foot facility in Houston, Texas for $8.1 million.  Subsequent to quarter end, we closed on an additional 184,000 square foot industrial property in Dallas, Texas for $17.9 million.  We continue to see significant acquisition opportunities for additional growth in our key target markets and with our existing relationships."  

Monmouth Real Estate Investment Corporation will be hosting the Company's First Quarter 2010 Financial Results Webcast and Conference Call, where senior management will discuss quarterly results, current market conditions and future outlook on Wednesday, February 10, 2010, 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 800-860-2442 (domestically) or 412-858-4600 (internationally).  

The replay of the conference call will be available at 12:00 p.m. Eastern Time on Wednesday, February 10, 2010.  It will be available until February 25, 2010, and can be accessed by dialing toll free 877-344-7529 (domestically) or 412-317-0088 (internationally) and entering the passcode 437482.  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 real estate investment trust specializing in net-leased industrial properties.  The Company's portfolio consists of sixty-one 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, 2009 and 2008 are calculated as follows:

    
    
                                        Three Months Ended
                                     12/31/09        12/31/08
                                     --------        --------
    Net Income (Loss)
     attributable to MREIC
     shareholders                  $2,474,000       ($994,000)
    Accumulated Preferred Dividend   (630,000)       (630,000)
    Depreciation Expense            2,234,000       2,105,000
    Depreciation Expense
     Related to Discontinued 
      Operations                            -          12,000
    Amortization of In-Place Lease
         Intangible Assets            254,000         309,000
                                      -------         -------
    FFO                            $4,332,000        $802,000
                                   ==========        ========
    
    Weighted Ave. Common
     Shares Outstanding            27,388,000      24,611,000
                                   ----------      ----------
    FFO Per Common Share                 $.16            $.03
                                         ====            ====
    
    

The following are the cash flows provided (used) by operating, investing and financing activities for the three months ended December 31, 2009 and 2008:

    
    
    
                                       Three Months Ended
                                  12/31/09           12/31/08
                                  --------           --------
    
    Operating Activities         $4,229,000         $4,942,000
    Investing Activities        (21,019,000)        (2,912,000)
    Financing Activities         19,498,000         (2,356,000)
    
    

The following is the net income (loss) per common share for the three months ended December 31, 2009 and 2008:

    
    
                                                     Three Months Ended
                                                  12/31/09        12/31/08
                                                  --------        --------
    
    BASIC INCOME (LOSS) – PER SHARE
        Income (loss) from Continuing Operations     $.09           ($.04)
        Less:  Preferred Dividend                    (.02)           (.03)
        Income from Discontinued Operations             -               -
                                                      ---             ---
        Net Income (Loss) Applicable to
               MREIC's Common Shareholders - Basic   $.07           ($.07)
                                                     ====           =====
    
    DILUTED INCOME (LOSS) – PER SHARE
        Income (loss) from Continuing Operations     $.09           ($.04)
        Less:  Preferred Dividend                    (.02)           (.03)
        Income from Discontinued Operations             -               -
                                                      ---             ---
        Net Income (Loss) Applicable to
              MREIC's Common Shareholders - Diluted  $.07           ($.07)
                                                     ====           =====
    

SOURCE Monmouth Real Estate Investment Corporation