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Section 1: 8-K

 

 

 

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

 

FORM 8-K

 

CURRENT REPORT

 

Pursuant to Section 13 OR 15(d) of The Securities Exchange Act of 1934

 

Date of Report (Date of earliest event reported) February 7, 2018

 

MONMOUTH REAL ESTATE INVESTMENT CORPORATION

(Exact name of registrant as specified in its charter)

 

MARYLAND   001-33177   22-1897375
(State or other jurisdiction
of incorporation)
  (Commission
File Number)
  (IRS Employer
Identification No.)

 

3499 Route 9N, Suite 3D, Freehold, NJ   07728
(Address of principal executive offices)   (Zip Code)

 

Registrant’s telephone number, including area code (732) 577-9996

 

 

(Former name or former address, if changed since last report.)

 

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instructions A.2. below):

 

[  ] Written communications pursuant to Rule 425 under Securities Act (17 CFR 230.425)
   
[  ] Soliciting material pursuant to Rule 142-12 under the Exchange Act (17 CFR 240.14a-12
   
[  ] Pre-commencement communications pursuant to rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
   
[  ]  Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

 

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).

 

Emerging growth company [  ]

 

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. [  ]

 

 

 

 

 

 

Item 2.02 Results of Operations and Financial Condition.

 

Item 7.01 Regulation FD Disclosure.

 

On February 7, 2018, Monmouth Real Estate Investment Corporation issued a press release announcing the results for the first quarter ended December 31, 2017 and disclosed a supplemental information package in connection with its earnings conference call for the first quarter ended December 31, 2017. A copy of the supplemental information package and press release is furnished with this report as Exhibit 99 and is incorporated herein by reference.

 

The information in this report and the exhibit attached hereto is being furnished, not filed, for the purposes of Section 18 of the Securities Exchange Act of 1934, as amended, and pursuant to Item 2.02 and Item 7.01 of Form 8-K will not be incorporated by reference into any filing under the Securities Act of 1933, as amended, unless specifically identified therein as being incorporated therein by reference.

 

Forward-Looking Statements

 

Statements contained in this report, including the documents that are incorporated by reference, that are not historical facts are forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended (the “Securities Act”), and Section 21E of the Securities Exchange Act of 1934, as amended and the Private Securities Litigation Reform Act of 1995 (the “Exchange Act”). All statements, other than statements of historical facts that address activities, events or developments where the Company uses any of the words “anticipates,” “assumes,” “believes,” “estimates,” “expects,” “intends,” or similar expressions, are forward-looking statements. These forward-looking statements are not guaranteed and are based on the Company’s current intentions and on the Company’s current expectations and assumptions. These statements, intentions, expectations and assumptions involve risks and uncertainties, some of which are beyond the Company’s control that could cause actual results or events to differ materially from those that the Company anticipates or projects, such as:

 

  the ability of the Company’s tenants to make payments under their respective leases, its reliance on certain major tenants and the Company’s ability to re-lease properties that are currently vacant or that become vacant;
     
  the Company’s ability to obtain suitable tenants for its properties;
     
  changes in real estate market conditions, economic conditions in the industrial sector and the market in which the Company’s properties are located and general economic conditions;
     
  the inherent risks associated with owning real estate, including local real estate market conditions, governing laws and regulations and illiquidity of real estate investments;
     
  the Company’s ability to acquire, finance and sell properties on attractive terms;
     
  the Company’s ability to repay debt financing obligations;
     
  the Company’s ability to refinance amounts outstanding under its mortgages and credit facilities at maturity on terms favorable to us, or at all;
     
  the loss of any member of the Company’s management team;
     
  the Company’s ability to comply with debt covenants;
     
  the Company’s ability to integrate acquired properties and operations into existing operations;
     
  continued availability of proceeds from issuances of the Company’s debt or equity securities;
     
  the availability of other debt and equity financing alternatives;
     
  market conditions affecting the Company’s investment in marketable securities of other REIT’s;

 

2

 

 

  changes in interest rates under the Company’s current credit facility and under any additional variable rate debt arrangements that the Company may enter into in the future;
     
  the Company’s ability to successfully implement the Company’s selective acquisition strategy;
     
  the Company’s ability to maintain internal controls and procedures to ensure all transactions are accounted for properly, all relevant disclosures and filings are timely made in accordance with all rules and regulations, and any potential fraud or embezzlement is thwarted or detected;
     
  changes in federal or state tax rules or regulations that could have adverse tax consequences;
     
  declines in the market prices of the Company’s investment securities; and
     
  the Company’s ability to qualify as a REIT for federal income tax purposes.

 

Item 9.01 Financial Statements and Exhibits.

 

(d) Exhibits.

 

  99 Supplemental information package for the first quarter ended December 31, 2017 and press release dated February 7, 2018.

 

3

 

 

SIGNATURES

 

Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

 

  MONMOUTH REAL ESTATE INVESTMENT CORPORATION
   
  /s/ Kevin S. Miller
  Kevin S. Miller
  Chief Financial and Accounting Officer

 

Date February 7, 2018

 

4

 

 

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Section 2: EX-99

 

 

 

 

 

 

 

Table of Contents

 

  Page
   
Consolidated Balance Sheets 3
   
Consolidated Statements of Income 4
   
Net Income, FFO, Core FFO, AFFO, EBITDAre, Adjusted EBITDA and NOI Reconciliations 5
   
Financial Highlights 6
   
Same Property Statistics 7
   
Consolidated Statements of Cash Flows 8
   
Capital Structure and Leverage Ratios 9
   
Debt Maturity 11
   
Property Table by Tenant 12
   
Property Table by State 13
   
Lease Expirations 14
   
Recent Acquisitions 15
   
Property Table 16
   
Definitions 18
   
Press Release Dated February 7, 2018 19

 

The statement of operations and supplemental statement of operations provided in this supplemental information package present funds from operations, core funds from operations, adjusted funds from operations, net operating income, EBITDAre and Adjusted EBITDA, which are REIT industry financial measures that are not calculated in accordance with accounting principles generally accepted in the United States. Please see page 18 for a definition of these supplemental performance measures. Please see the supplemental statement of operations reconciliation for a reconciliation of certain captions in the supplemental statement of operations reported in this supplemental information package to the statement of operations as reported in the Company’s filings with the SEC on Form 10-Q.

 

   
Table of Contents  

 

Consolidated Balance Sheets

 

   As of   As of 
   December 31, 2017   September 30, 2017 
   (unaudited)     
ASSETS          
Real Estate Investments:          
Land  $193,562,859   $187,224,819 
Buildings and Improvements   1,290,476,339    1,244,691,715 
Total Real Estate Investments   1,484,039,198    1,431,916,534 
Accumulated Depreciation   (179,492,182)   (171,060,478)
Real Estate Investments   1,304,547,016    1,260,856,056 
           
Real Estate Held for Sale   9,481,407    14,606,028 
Cash and Cash Equivalents   10,755,901    10,226,046 
Securities Available for Sale at Fair Value   130,431,475    123,764,770 
Tenant and Other Receivables   5,385,744    1,753,054 
Deferred Rent Receivable   8,391,569    8,049,275 
Prepaid Expenses   9,125,236    5,434,874 
Intangible Assets, net of Accumulated Amortization of
$13,554,423 and $13,404,318, respectively
   10,811,664    10,010,165 
Capitalized Lease Costs, net of Accumulated Amortization of
$3,114,088 and $3,393,187, respectively
   4,161,907    4,180,907 
Financing Costs, net of Accumulated Amortization of
$713,450 and $619,555, respectively
   781,813    875,709 
Other Assets   5,251,185    3,280,871 
TOTAL ASSETS  $1,499,124,917   $1,443,037,755 
           
LIABILITIES AND SHAREHOLDERS’ EQUITY          
           
Liabilities:          
Fixed Rate Mortgage Notes Payable, net of Unamortized Debt          
Issuance Costs  $612,651,435   $591,364,371 
Loans Payable   110,000,000    120,091,417 
Accounts Payable and Accrued Expenses   3,587,862    4,450,753 
Other Liabilities   18,801,819    14,265,518 
Total Liabilities   745,041,116    730,172,059 
           
COMMITMENTS AND CONTINGENCIES          
           
Shareholders’ Equity:          
6.125% Series C Cumulative Redeemable Preferred Stock,$0.01 Par Value Per Share: 12,400,000 Shares Authorized as of December 31, 2017 and September 30, 2017 10,879,379 and 9,839,445 Shares Issued and Outstanding as of December 31, 2017 and September 30, 2017, respectively   271,984,475    245,986,125 
Common Stock, $0.01 Par Value Per Share: 192,039,750 Shares Authorized as of December 31, 2017 and September 30, 2017; 77,209,110 and 75,630,521 Shares Issued and Outstanding as of December 31, 2017 and September 30, 2017, respectively   772,091    756,305 
Excess Stock, $0.01 Par Value Per Share: 200,000,000 Shares Authorized as of December 31, 2017 and September 30, 2017; No Shares Issued or Outstanding as of December 31, 2017 and September 30, 2017   -0-    -0- 
Additional Paid-In Capital   485,469,807    459,552,701 
Accumulated Other Comprehensive Income (Loss)   (4,142,572)   6,570,565 
Undistributed Income   -0-    -0- 
Total Shareholders’ Equity   754,083,801    712,865,696 
TOTAL LIABILITIES & SHAREHOLDERS’ EQUITY  $1,499,124,917   $1,443,037,755 

 

First Quarter FY 2018 Supplemental of Monmouth Real Estate Investment Corp. Page 3 of 21

 

   
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Consolidated Statements of Income

(unaudited)

 

   For The 
   Three Months Ended 
   12/31/2017   12/31/2016 
INCOME:          
Rental Revenue  $27,692,482   $23,280,856 
Reimbursement Revenue   5,049,340    3,900,755 
Lease Termination Income   210,261    -0- 
TOTAL INCOME   32,952,083    27,181,611 
           
EXPENSES:          
Real Estate Taxes   3,862,663    2,906,981 
Operating Expenses   1,436,241    1,294,468 
General & Administrative Expenses   1,947,032    1,442,463 
Acquisition Costs   -0-    178,526 
Depreciation   8,483,984    6,992,495 
Amortization of Capitalized Lease Costs and Intangible Assets   538,071    447,797 
TOTAL EXPENSES   16,267,991    13,262,730 
           
OTHER INCOME (EXPENSE):          
Dividend and Interest Income   2,864,217    1,292,151 
Gain on Sale of Securities Transactions   100,153    806,108 
Interest Expense, including Amortization of Financing Costs   (7,405,947)   (6,163,219)
TOTAL OTHER INCOME (EXPENSE)   (4,441,577)   (4,064,960)
           
INCOME FROM CONTINUING OPERATIONS   12,242,515    9,853,921 
           
Gain on Sale of Real Estate Investments   5,387,886    -0- 
           
NET INCOME   17,630,401    9,853,921 
           
Less: Preferred Dividends   4,316,946    3,697,760 
           
NET INCOME ATTRIBUTABLE TO COMMON SHAREHOLDERS     $  13,313,455        $  6,156,161   

 

First Quarter FY 2018 Supplemental of Monmouth Real Estate Investment Corp. Page 4 of 21

 

   
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Net Income, FFO, Core FFO, AFFO, EBITDAre, Adjusted EBITDA and NOI Reconciliations

(unaudited)  

 

   For The 
   Three Months Ended 
FFO, Core FFO, AFFO   12/31/2017    12/31/2016 
Net Income Attributable to Common Shareholders  $13,313,455   $6,156,161 
Plus: Depreciation Expense (Excluding Corporate Office Capitalized Costs)   8,444,507    6,953,780 
Plus: Amortization of Intangible Assets   343,746    267,847 
Plus: Amortization of Capitalized Lease Costs   220,002    205,442 
Less: (Gain) / Plus: Loss on Sale of Real Estate Investments   (5,387,886)   95,336 
FFO Attributable to Common Shareholders   16,933,824    13,678,566 
Plus: Acquisition Costs   -0-    178,526 
Core FFO Attributable to Common Shareholders   16,933,824    13,857,092 
Plus: Depreciation of Corporate Office Capitalized Costs   39,477    38,715 
Plus: Stock Compensation Expense   130,763    100,155 
Plus: Amortization of Financing Costs   293,894    280,913 
Less: Gain on Sale of Securities Transactions   (100,153)   (806,108)
Less: Lease Termination Income   (210,261)   -0- 
Less: Recurring Capital Expenditures   (219,246)   (188,412)
Less: Effect of Non-cash U.S. GAAP Straight-line Rent Adjustment   (396,028)   (343,239)
AFFO Attributable to Common Shareholders  $16,472,270   $12,939,116 
           

 

   Three Months Ended 
EBITDAre, Adjusted EBITDA   12/31/2017    12/31/2016 
Net Income Attributable to Common Shareholders  $13,313,455   $6,156,161 
Plus: Preferred Dividends   4,316,946    3,697,760 
Plus: Interest Expense, including Amortization of Financing Costs   7,405,947    6,163,219 
Plus: Depreciation and Amortization   9,022,055    7,440,292 
Less: (Gain) / Plus: Loss on Sale of Real Estate Investments   (5,387,886)   95,336 
EBITDAre   28,670,517    23,552,768 
Plus: Acquisition Costs   -0-    178,526 
Plus: Net Amortization of Acquired Above and Below Market Lease Revenue   25,677    25,492 
Less: Gain on Sale of Securities Transactions   (100,153)   (806,108)
Adjusted EBITDA  $28,596,041   $22,950,678 

 

   Three Months Ended 
Net Operating Income   12/31/2017    12/31/2016 
Net Income Attributable to Common Shareholders  $13,313,455   $6,156,161 
Plus: Preferred Dividends   4,316,946    3,697,760 
Plus: General & Administrative Expenses   1,947,032    1,442,463 
Plus: Acquisition Costs   -0-    178,526 
Plus: Depreciation   8,483,984    6,992,495 
Plus: Amortization of Capitalized Lease Costs and Intangible Assets   538,071    447,797 
Plus: Interest Expense, including Amortization of Financing Costs   7,405,947    6,163,219 
Less: Dividend and Interest Income   (2,864,217)   (1,292,151)
Less: Gain on Sale of Securities Transactions   (100,153)   (806,108)
Less: Gain on Sale of Real Estate Investments   (5,387,886)   -0- 
Less: Lease Termination Income   (210,261)   -0- 
Net Operating Income – NOI  $27,442,918   $22,980,162 

 

   Three Months Ended 
Components of Net Operating Income Consists of:  12/31/2017   12/31/2016 
Revenues:          
Rental Revenue  $27,692,482   $23,280,856 
Reimbursement Revenue   5,049,340    3,900,755 
Total Rental and Reimbursement Revenue   32,741,822    27,181,611 
           
Expenses:          
Real Estate Taxes   3,862,663    2,906,981 
Operating Expenses   1,436,241    1,294,468 
Total Real Estate Taxes and Operating Expenses   5,298,904    4,201,449 
Net Operating Income – NOI  $27,442,918   $22,980,162 

 

First Quarter FY 2018 Supplemental of Monmouth Real Estate Investment Corp. Page 5 of 21

 

   
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Financial Highlights

(unaudited)

 

   For The 
   Three Months Ended 
   12/31/2017   12/31/2016 
Weighted Average Common Shares Outstanding          
Basic   76,375,400    69,686,153 
Diluted   76,586,782    69,829,793 
           
Net Income Attributable to Common Shareholders  $13,313,455   $6,156,161 
           
Basic  $0.17   $0.09 
Diluted   0.17    0.09 
           
Net Operating Income – NOI  $27,442,918   $22,980,162 
           
Basic  $0.36   $0.33 
Diluted   0.36    0.33 
           
Funds From Operations – FFO  $16,933,824   $13,678,566 
           
Basic  $0.22   $0.20 
Diluted   0.22    0.20 
           
Core Funds From Operations - Core FFO  $16,933,824   $13,857,092 
           
Basic  $0.22   $0.20 
Diluted   0.22    0.20 
           
Core FFO Including Gain Over Historic Cost (Undepreciated) on Sale of Real Estate Investments (1)  $18,737,378   $13,857,092 
           
Basic  $0.25   $0.20 
Diluted   0.24    0.20 
           
Core FFO Excluding Gain on Sale of Securities Transactions and  $16,623,410   $13,050,984 
Excluding Lease Termination Income          
           
Basic  $0.22   $0.19 
Diluted   0.22    0.19 
           
Adjusted Funds From Operations – AFFO  $16,472,270   $12,939,116 
           
Basic  $0.22   $0.19 
Diluted   0.22    0.19 
           
Dividends Declared per Common Share  $0.17   $0.16 
           
Dividend/AFFO Payout Ratio   77.3%     

 

  (1) On December 18, 2017, the Company sold its property located in Kansas City, MO for $4,900,000, with net sale proceeds to the Company of approximately $4,602,000 and on December 22, 2017, the Company sold its property located in Orangeburg, NY for $6,170,000, with net sale proceeds to the Company of approximately $5,898,000. The sale of these two properties resulted in a realized gain of $5,387,886, representing a 105% gain over the depreciated U.S. GAAP basis and a realized net gain on a historic cost (undepreciated) basis of $1,803,554, representing a 21% net gain over the Company’s historic cost basis.

 

First Quarter FY 2018 Supplemental of Monmouth Real Estate Investment Corp. Page 6 of 21

 

   
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Same Property Statistics

(unaudited)

 

    For The        
    Three Months Ended        
    12/31/2017       12/31/2016   Change   Change %
                     
Total Square Feet / Total Properties     19,096,237 / 108             16,553,910 / 100       2,542,327       15.4 %
                                         
Occupancy Percentage at End of Period     99.5 %             100.0 %     (50) bps       (0.5 )%
                                         
Same Property Square Feet / Number of Same Properties             15,562,723 / 95                          
                                         
Same Property Occupancy Percentage at End of Period     99.4 %             100.0 %     (60) bps       (0.6 )%
                                         
Same Property Net Operating Income (NOI) (GAAP)   $ 21,660,991             $ 21,961,333     $ (300,342 )     (1.4 )%
                                         
Reversal of Effect of Non-cash U.S. GAAP Straight-line Rent Adjustment     (246,995 )             (320,282 )     73,287          
Same Property Cash NOI (Cash)   $ 21,413,996             $ 21,641,051     $ (227,055 )     (1.0 )%

 

Same Property Statistics include all properties owned during the entire periods presented with the exclusion of properties expanded during these periods.

 

The 1.4% decrease, amounting to $300,342 in Same Property NOI, is mainly due to a $217,364 decrease attributable to a 60 bps decline in the Same Property Occupancy Percentage. The remaining $82,978 decrease in Same Property NOI is a from a decrease in NOI from occupied properties.

 

The 1.0% decrease, amounting to $227,055 in Same Property Cash NOI, is mainly due to a $220,315 decrease attributable to a 60 bps decline in the Same Property Occupancy Percentage. The remaining $6,740 decrease in Same Property Cash NOI is from a decrease in NOI from occupied properties.

 

Reconciliation of Same Property NOI to Total NOI

 

   For The           
   Three Months Ended           
   12/31/2017   12/31/2016   Change   Change % 
                 
Same Property NOI (GAAP)  $21,660,991   $21,961,333   $(300,342)   (1.4)%
                     
NOI of properties purchased subsequent to September 30, 2016 (two properties for fiscal 2018 and ten properties for fiscal 2017)   5,141,649    593,602           
                     
NOI of properties expanded subsequent to September 30, 2016 (one property for fiscal 2018 and 2017)   415,786    379,115           
                     
NOI of property sold subsequent to September 30, 2016 (two properties sold during fiscal 2018 and one during fiscal 2017)   224,492    46,112           
Total NOI  $27,442,918   $22,980,162   $4,462,756    19.4%

  

First Quarter FY 2018 Supplemental of Monmouth Real Estate Investment Corp. Page 7 of 21

 

   
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Consolidated Statements of Cash Flows

(unaudited)

 

   For The 
   Three Months Ended 
   12/31/2017   12/31/2016 
CASH FLOWS FROM OPERATING ACTIVITIES          
Net Income  $17,630,401   $9,853,921 
Noncash Items Included in Net Income:          
Depreciation & Amortization   9,315,949    7,721,205 
Deferred Straight Line Rent   (396,028)   (343,239)
Stock Compensation Expense   130,763    100,155 
Gain on Sale of Securities Transactions   (100,153)   (806,108)
(Gain) / Loss on Sale of Real Estate Investments   (5,387,886)   95,336 
Changes in:          
Tenant & Other Receivables   (3,607,013)   (255,461)
Prepaid Expenses   (3,690,362)   (2,645,032)
Other Assets & Capitalized Lease Costs   (89,641)   (428,282)
Accounts Payable, Accrued Expenses & Other Liabilities   3,284,409    860,211 
NET CASH PROVIDED BY OPERATING ACTIVITIES   17,090,439    14,152,706 
           
CASH FLOWS FROM INVESTING ACTIVITIES          
Purchase of Real Estate & Intangible Assets   (52,500,165)   (56,101,538)
Capital Improvements   (1,782,422)   (696,941)
Proceeds on Sales of Real Estate   10,499,704    4,125,819 
Return of Deposits on Real Estate   450,000    1,000,000 
Deposits Paid on Acquisitions of Real Estate   (1,350,000)   (820,000)
Proceeds from Sale of Securities Available for Sale   2,435,168    3,738,938 
Purchase of Securities Available for Sale   (19,714,857)   (6,396,581)
NET CASH USED IN INVESTING ACTIVITIES   (61,962,572)   (55,150,303)
           
CASH FLOWS FROM FINANCING ACTIVITIES          
Net Repayments on Loans Payable   (10,091,417)   (4,790,684)
Proceeds from Fixed Rate Mortgage Notes Payable   33,800,000    38,000,000 
Principal Payments on Fixed Rate Mortgage Notes Payable   (12,351,030)   (9,456,016)
Financing Costs Paid on Debt   (361,905)   (636,963)
Proceeds from the Exercise of Stock Options   284,800    -0- 
Redemption of 7.625% Series A Preferred Stock   -0-    (53,493,750)
Proceeds from At-The-Market Preferred Equity Program,
net of offering costs
   25,687,516    -0- 
Proceeds from Issuance of Common Stock in the DRIP, net of Dividend Reinvestments   22,611,458    18,877,487 
Preferred Dividends Paid   (4,080,685)   (3,422,136)
Common Dividends Paid, net of Reinvestments   (10,096,749)   (9,107,243)
NET CASH PROVIDED BY (USED IN) FINANCING ACTIVITIES   45,401,988    (24,029,305)
           
           
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS   529,855    (65,026,902)
CASH AND CASH EQUIVALENTS - BEGINNING OF PERIOD   10,226,046    95,749,508 
CASH AND CASH EQUIVALENTS - END OF PERIOD  $10,755,901   $30,722,606 

 

First Quarter FY 2018 Supplemental of Monmouth Real Estate Investment Corp. Page 8 of 21

 

   
Table of Contents  

 

Capital Structure and Leverage Ratios  As of   As of   As of 
(unaudited)  12/31/2017   12/31/2016   9/30/2017 
             
Fixed Rate Mortgage Notes Payable, net of Unamortized Debt Issuance Costs  $612,651,435   $505,574,117   $591,364,371 
Loans Payable   110,000,000    76,000,000    120,091,417 
Total Debt   722,651,435    581,574,117    711,455,788 
                
7.875% Series B Cumulative Redeemable Preferred Stock   -0-    57,500,000    -0- 
6.125% Series C Cumulative Redeemable Preferred Stock   271,984,475    135,000,000    245,986,125 
Total Preferred Stock   271,984,475    192,500,000    245,986,125 
                
Common Stock, Paid-In-Capital & Other   482,099,326    418,637,509    466,879,571 
Total Shareholders’ Equity   754,083,801    611,137,509    712,865,696 
                
Total Book Capitalization   1,476,735,236    1,192,711,626    1,424,321,484 
                
Accumulated Depreciation   182,232,695    154,847,979    177,372,518 
Total Undepreciated Book Capitalization  $1,658,967,931   $1,347,559,605   $1,601,694,002 

 

 

 

Shares Outstanding   77,209,110    70,536,720    75,630,521 
Market Price Per Share  $17.80   $15.24   $16.19 
                
Equity Market Capitalization  $1,374,322,158   $1,074,979,613   $1,224,458,135 
Total Debt   722,651,435    581,574,117    711,455,788 
Total Preferred Stock   271,984,475    192,500,000    245,986,125 
Total Market Capitalization  $2,368,958,068   $1,849,053,730   $2,181,900,048 

 

 

 

Total Debt  $722,651,435   $581,574,117   $711,455,788 
less: Cash and Cash Equivalents   10,755,901    30,722,606    10,226,046 
Net Debt  $711,895,534   $550,851,511   $701,229,742 
less: Securities Available for Sale at Fair Value (Securities)   130,431,475    74,321,496    123,764,770 
Net Debt Less Securities  $581,464,059   $476,530,015   $577,464,972 

 

 

 

Net Debt / Total Undepreciated Book Capitalization   42.9%   40.9%   43.8%
Net Debt / Total Market Capitalization   30.1%   29.8%   32.1%
Net Debt Plus Preferred Stock / Total Market Capitalization   41.5%   40.2%   43.4%
Net Debt Less Securities / Total Undepreciated Book Capitalization   35.0%   35.4%   36.1%
Net Debt Less Securities / Total Market Capitalization   24.5%   25.8%   26.5%
Net Debt Less Securities Plus Preferred Stock / Total Market Capitalization   36.0%   36.2%   37.7%
                
Weighted Average Interest Rate on Fixed Rate Debt   4.16%   4.44%   4.18%

 

First Quarter FY 2018 Supplemental of Monmouth Real Estate Investment Corp. Page 9 of 21

 

   
Table of Contents  

 

Capital Structure and Leverage Ratios continued

(unaudited)

 

   For The  

Fiscal

Year
 
   Three Months Ended   Ended 
   12/31/2017   12/31/2016   9/30/2017 
Net Income  $17,630,401   $9,853,921   $40,271,085 
plus: Interest Expense, including Amortization of Financing Costs   7,405,947    6,163,219    25,754,121 
plus: Depreciation and Amortization   9,022,055    7,440,292    31,459,749 
less: (Gain) / plus: Loss on Sale of Real Estate Investments   (5,387,886)   95,336    95,336 
EBITDAre   28,670,517    23,552,768    97,580,291 
plus: Acquisition Costs   -0-    178,526    178,526 
plus: Net Amortization of Acquired Above and  Below Market Lease Revenue   25,677    25,492    101,968 
less: Gain on Sale of Securities Transactions   (100,153)   (806,108)   (2,311,714)
Adjusted EBITDA  $28,596,041   $22,950,678   $95,549,071 
                
Interest Expense, including Amortization of Financing Costs  $7,405,947   $6,163,219   $25,754,121 
Preferred Dividends   4,316,946    3,697,760    14,861,686 
Total Fixed Charges  $11,722,893   $9,860,979   $40,615,807 
                
Interest Coverage   3.9 x    3.7 x    3.7 x 
Fixed Charge Coverage   2.4 x    2.3 x    2.4 x 
                
Net Debt  $711,895,534   $550,851,511   $701,229,742 
Net Debt Less Securities   581,464,059    476,530,015    577,464,972 
Total Preferred Stock   271,984,475    192,500,000    245,986,125 
Annualized Adjusted EBITDA   114,384,164    91,802,712    95,549,071 
                
Net Debt / Adjusted EBITDA   6.2 x     6.0 x    7.3 x 
Net Debt Less Securities / Adjusted EBITDA   5.1 x     5.2 x    6.0 x 
Net Debt + Preferred Stock / Adjusted EBITDA   8.6 x     8.1 x    9.9 x 
Net Debt Less Securities + Preferred Stock / Adjusted EBITDA   7.5 x     7.3 x    8.6 x 

 

 

First Quarter FY 2018 Supplemental of Monmouth Real Estate Investment Corp. Page 10 of 21

 

   
Table of Contents  

 

 

 

          Loans       % of 
Fiscal Year Ended     Mortgages   Payable   Total   Total 
                    
2018     $35,867,466    -0-   $35,867,466    4.9%
2019      57,124,164    -0-    57,124,164    7.8%
2020      41,305,075    110,000,000(B)   151,305,075    20.7%
2021      42,244,703    -0-    42,244,703    5.8%
2022      63,657,707    -0-    63,657,707    8.7%
Thereafter      380,212,422    -0-    380,212,422    52.1%
                        
Total as of 12/31/2017  (A)  $620,411,537   $110,000,000   $730,411,537    100.0%
                        
Weighted Average Interest Rate      4.16%   3.06%   3.99%     
Weighted Average Term      11.5 yrs.    2.75 yrs.    10.18 yrs.      

 

  (A) Mortgages does not include unamortized debt issuance costs of $7,760,102.
  (B) Represents the amount drawn down on a line of credit that has a one year extension option, which is not reflected above.

 

First Quarter FY 2018 Supplemental of Monmouth Real Estate Investment Corp. Page 11 of 21

 

   
Table of Contents  

 

Property Table by Tenant

(unaudited)

 

      Property   Square   Occupied Square   % of Occupied   Annual   % of Total
Ann.
   Rent Per sf   Undepreciated   Mortgage 
Tenant     Count   Footage   Footage   sf   Rent   Rent   Occup.   Cost   Balance 
                                        
FedEx Ground Package System, Inc.      43    7,967,706    7,967,706    41.7%  $59,396,000    52.3%  $7.45   $811,694,658   $364,391,221 
FedEx Corporation      16    1,544,996    1,544,996    8.1%   7,997,000    7.0%   5.18    108,572,968    27,507,513 
Total FedEx      59    9,512,702    9,512,702    49.8%   67,393,000    59.3%   7.08    920,267,626    391,898,734 
                                                 
Milwaukee Electric Tool Corporation      1    861,889    861,889    4.5%   3,032,000    2.7%   3.52    36,914,917    23,033,196 
ULTA, Inc.      1    671,354    671,354    3.5%   2,702,000    2.4%   4.02    37,512,071    21,158,449 
Jim Beam Brands Company      1    599,840    599,840    3.1%   2,051,000    1.8%   3.42    28,000,000    17,334,581 
International Paper Company      2    578,472    578,472    3.0%   2,592,000    2.3%   4.48    36,175,718    21,654,034 
TreeHouse Private Brands, Inc.      1    558,600    558,600    2.9%   2,206,000    1.9%   3.95    26,807,852    15,840,219 
CBOCS Distribution, Inc. (Cracker Barrel)      1    381,240    381,240    2.0%   1,447,000    1.3%   3.80    14,215,126    7,390,973 
Best Buy Warehousing Logistics, Inc.      1    368,060    368,060    1.9%   1,676,000    1.5%   4.55    19,600,000    9,743,991 
Coca-Cola      2    323,358    323,358    1.7%   1,693,000    1.5%   5.24    20,504,069    5,383,270 
Autoneum North America, Inc.      1    315,560    315,560    1.7%   1,703,000    1.5%   5.40    21,040,395    15,041,036 
Science Applications International Corporation      1    302,400    302,400    1.6%   1,491,000    1.3%   4.93    13,374,441    -0- 
Amazon.com Services, Inc.      1    300,000    300,000    1.6%   1,884,000    1.7%   6.28    29,878,942    19,600,000 
United Technologies Corporation      3    283,150    283,150    1.5%   2,264,000    2.0%   8.00    27,687,512    7,043,884 
Bunzl USA Holdings, Inc.      2    268,778    268,778    1.4%   1,474,000    1.3%   5.48    18,379,665    12,596,212 
Woodstream Corporation  (B)   1    256,000    256,000    1.3%   914,000    0.8%   3.57    8,899,035    -0- 
Anda Pharmaceuticals, Inc.      1    234,660    234,660    1.2%   1,205,000    1.1%   5.14    14,550,000    8,022,373 
UGN, Inc.      1    232,200    232,200    1.2%   1,070,000    0.9%   4.61    12,937,000    7,489,353 
Mickey Thompson Performance Tires and Wheels (Cooper Tire)      1    219,765    219,765    1.2%   1,501,000    1.3%   6.83    18,934,065    12,598,036 
Caterpillar Logistics Services, Inc.   (D)   1    218,120    218,120    1.1%   1,169,000    1.0%   5.36    14,868,857    -0- 
Anheuser-Busch, Inc.      1    184,800    184,800    1.0%   821,000    0.7%   4.44    12,697,848    -0- 
Carlisle Tire & Wheel Company      1    179,280    179,280    0.9%   739,000    0.7%   4.12    7,232,986    -0- 
NF&M International, Inc.   (A)   1    174,802    174,802    0.9%   835,000    0.7%   4.78    5,399,580    -0- 
Home Depot USA, Inc.      1    171,200    171,200    0.9%   997,000    0.9%   5.82    11,298,367    -0- 
Victory Packaging, L.P.      1    148,000    148,000    0.8%   502,000    0.4%   3.39    5,451,629    -0- 
Challenger Lifts, Inc. (Snap-On Inc.)      1    137,500    137,500    0.7%   838,000    0.7%   6.09    11,304,000    6,818,248 
Altec Industries, Inc.   (B)   1    126,880    126,880    0.7%   371,000    0.3%   2.92    4,410,584    -0- 
General Electric Company      1    125,860    125,860    0.7%   1,321,000    1.2%   10.50    19,950,000    11,775,354 
The American Bottling Company (Dr Pepper Snapple)      2    110,080    110,080    0.6%   743,000    0.7%   6.75    10,498,031    1,781,296 
Style Crest, Inc.      1    106,507    106,507    0.6%   387,000    0.3%   3.63    7,238,613    -0- 
Pittsburgh Glass Works, LLC      1    102,135    102,135    0.5%   427,000    0.4%   4.18    4,245,913    -0- 
Holland 1916 Inc.      1    95,898    95,898    0.5%   349,000    0.3%   3.64    7,397,881    -0- 
National Oilwell Varco, Inc.      1    91,295    91,295    0.5%   754,000    0.7%   8.26    8,163,278    2,504,940 
Joseph T. Ryerson and Son, Inc.      1    89,052    89,052    0.5%   506,000    0.4%   5.68    6,977,442    -0- 
CHEP USA, Inc.      1    83,000    83,000    0.4%   500,000    0.4%   6.02    7,405,447    -0- 
Datatel Resources Corporation   (A)   1    80,856    80,856    0.4%   61,000    0.1%   3.02    2,497,617    -0- 
Sherwin-Williams Company      2    78,887    78,887    0.4%   643,000    0.6%   8.15    7,244,128    -0- 
RGH Enterprises, Inc. (Cardinal Health)      1    75,000    75,000    0.4%   607,000    0.5%   8.09    5,525,600    -0- 
Tampa Bay Grand Prix      1    68,385    68,385    0.4%   297,000    0.3%   4.34    5,677,982    -0- 
Various Tenants at Retail Shopping Center      1    64,220    64,220    0.3%   795,000    0.7%   12.38    3,072,882    -0- 
SOFIVE, Inc.      1    60,400    60,400    0.3%   558,000    0.5%   9.24    4,903,589    1,703,358 
Kellogg Sales Company      1    54,812    54,812    0.3%   329,000    0.3%   6.00    3,494,108    -0- 
Siemens Real Estate      1    51,130    51,130    0.3%   485,000    0.4%   9.49    4,452,425    -0- 
Foundation Building Materials, LLC      1    36,270    36,270    0.2%   172,000    0.1%   4.74    2,262,079    -0- 
Graybar Electric Company      1    26,340    26,340    0.1%   109,000    0.1%   4.14    1,883,306    -0- 
Tenant Total as of 12/31/17      107    19,008,737    19,008,737    99.5%  $113,613,000    100.0%  $5.99   $1,491,232,606 (C) $620,411,537 
                                                 
Vacant  (E)   1    87,500    -0-    0.0%   -0-