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Section 1: 8-K

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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) August 4, 2020

 

MONMOUTH REAL ESTATE INVESTMENT CORPORATION

(Exact name of registrant as specified in its charter)

 

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

 

101 Crawfords Corner Road, Holmdel, NJ   07733
(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. ☐

 

Securities registered pursuant to Section 12(b) of the Act:

 

Title of each class   Trading Symbol(s)   Name of each exchange on which registered
Common Stock   MNR   New York Stock Exchange
6.125% Series C Cumulative Redeemable Preferred Stock  

MNR-PC

  New York Stock Exchange

 

 

 

 

 

 

Item 2.02 Results of Operations and Financial Condition.

 

Item 7.01 Regulation FD Disclosure.

 

On August 4, 2020, Monmouth Real Estate Investment Corporation issued a press release announcing the results for the third quarter ended June 30, 2020 and disclosed a supplemental information package in connection with its earnings conference call for the third quarter ended June 30, 2020. 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 our tenants to make payments under their respective leases;
  our reliance on certain major tenants;
  our ability to re-lease properties that are currently vacant or that become vacant;
  our ability to obtain suitable tenants for our properties;
  changes in real estate market conditions, economic conditions in the industrial sector, the markets in which our 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 effect of COVID-19 on our business and general economic conditions;
  our ability to acquire, finance and sell properties on attractive terms;
  our ability to repay debt financing obligations;
  our ability to refinance amounts outstanding under our debt obligations at maturity on terms favorable to us, or at all;
  the loss of any member of our management team;
  our ability to comply with debt covenants;
  our ability to integrate acquired properties and operations into existing operations;
  continued availability of proceeds from issuances of our debt or equity securities;
  the availability of other debt and equity financing alternatives;
  changes in interest rates, including the replacement of the LIBOR reference rate, under our current credit facility and under any additional variable rate debt arrangements that we may enter into in the future;
  our ability to successfully implement our selective acquisition strategy;
  our 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 our investment securities; and
  our 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 third quarter ended June 30, 2020 and press release dated August 4, 2020.

 

2

 

 

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 August 4, 2020  

 

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Section 2: EX-99

 

Exhibit 99

 

 

 

 

 

MREIC Logo black text

Table of Contents

 

 

  Page
Consolidated Balance Sheets 3
Consolidated Statements of Income (Loss) 4
FFO, AFFO and Adjusted EBITDA Reconciliations 5
NOI Reconciliations 6
Financial Highlights 7
Same Property Statistics 8
Consolidated Statements of Cash Flows 10
Capital Structure and Leverage Ratios 11
Debt Maturity 13
Property Table by Tenant 14
Property Table by State 15
Lease Expirations 16
Recent Acquisitions 17
Property Table 18
Definitions 21
Press Release Dated August 4, 2020 22

 

The statement of operations and supplemental statement of operations provided in this supplemental information package present funds from operations (FFO), adjusted funds from operations (AFFO), net operating income (NOI) 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 21 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

(in thousands except for per share amounts)

 

   As of   As of 
   June 30,   September 30, 
   2020   2019 
   (unaudited)     
ASSETS          
Real Estate Investments:          
Land  $249,118   $239,299 
Buildings and Improvements   1,778,055    1,627,219 
Total Real Estate Investments   2,027,173    1,866,518 
Accumulated Depreciation   (284,058)   (249,584)
Real Estate Investments   1,743,115    1,616,934 
           
Cash and Cash Equivalents   12,104    20,179 
Securities Available for Sale at Fair Value   118,877    185,250 
Tenant and Other Receivables   2,565    1,335 
Straight-line Rent Receivable   12,453    11,199 
Prepaid Expenses   8,957    6,714 
Intangible Assets, net of Accumulated Amortization of $17,225 and $15,686, respectively   17,154    14,970 
Capitalized Lease Costs, net of Accumulated Amortization of $4,184 and $3,378, respectively   5,860    5,670 
Financing Costs, net of Accumulated Amortization of $259 and $1,352, respectively   1,477    144 
Other Assets   8,863    9,553 
TOTAL ASSETS  $1,931,425   $1,871,948 
           
LIABILITIES AND SHAREHOLDERS’ EQUITY          
           
Liabilities:          
Fixed Rate Mortgage Notes Payable, net of Unamortized Debt Issuance Costs  $804,342   $744,928 
Loans Payable   80,000    95,000 
Accounts Payable and Accrued Expenses   4,177    3,570 
Other Liabilities   19,121    17,407 
Total Liabilities   907,640    860,905 
           
COMMITMENTS AND CONTINGENCIES          
           
Shareholders’ Equity:          
6.125% Series C Cumulative Redeemable Preferred Stock, $0.01 Par Value Per Share: 21,900 and 16,400 Shares Authorized as of June 30, 2020 and September 30, 2019, respectively; 17,354 and 13,907 Shares Issued and Outstanding as of June 30, 2020 and September 30, 2019, respectively   433,850    347,678 
Common Stock, $0.01 Par Value Per Share: 200,000 and 188,040 Shares Authorized as of June 30, 2020 and September 30, 2019, respectively; 97,972 and 96,399 Shares Issued and Outstanding as of June 30, 2020 and September 30, 2019, respectively   980    964 
Excess Stock, $0.01 Par Value Per Share: 200,000 Shares Authorized as of June 30, 2020 and September 30, 2019; No Shares Issued or Outstanding as of June 30, 2020 and September 30, 2019   -0-    -0- 
Additional Paid-In Capital   588,955    662,401 
Undistributed Income   -0-    -0- 
Total Shareholders’ Equity   1,023,785    1,011,043 
TOTAL LIABILITIES & SHAREHOLDERS’ EQUITY  $1,931,425   $1,871,948 

 

    THIRD QUARTER FISCAL YEAR 2020 SUPPLEMENTAL INFORMATION3
Table of Contents 

 

Consolidated Statements of Income (Loss)

(unaudited) (in thousands)

 

   For The   For The 
   Three Months Ended   Nine Months Ended 
   6/30/2020   6/30/2019   6/30/2020   6/30/2019 
INCOME:                    
Rental Revenue  $35,427   $33,127   $105,410   $98,678 
Reimbursement Revenue   6,348    5,421    19,772    16,473 
TOTAL INCOME   41,775    38,548    125,182    115,151 
                     
EXPENSES:                    
Real Estate Taxes   5,140    4,168    15,205    12,370 
Operating Expenses   1,427    1,649    5,258    5,186 
General & Administrative Expenses   2,198    2,351    6,858    6,420 
Non-recurring Severance Expense   -0-    -0-    786    -0- 
Depreciation   11,743    10,833    34,650    32,067 
Amortization of Capitalized Lease Costs and Intangible Assets   788    721    2,308    2,144 
TOTAL EXPENSES   21,296    19,722    65,065    58,187 
                     
OTHER INCOME (EXPENSE):                    
Dividend Income   2,344    3,686    8,987    11,569 
Unrealized Holding Gains (Losses) Arising During the Periods   19,610    (11,609)   (67,100)   (38,668)
Interest Expense, including Amortization of Financing Costs   (8,975)   (9,275)   (27,235)   (27,879)
TOTAL OTHER INCOME (EXPENSE)   12,979    (17,198)   (85,348)   (54,978)
                     
NET INCOME (LOSS)   33,458    1,628    (25,231)   1,986 
                     
Less: Preferred Dividends   6,607    4,749    19,469    13,650 
                     
NET INCOME (LOSS) ATTRIBUTABLE TO COMMON SHAREHOLDERS  $26,851   $(3,121)  $(44,700)  $(11,664)

 

    THIRD QUARTER FISCAL YEAR 2020 SUPPLEMENTAL INFORMATION4
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FFO, AFFO and Adjusted EBITDA Reconciliations

(unaudited) (in thousands)

 

   For The   For The 
   Three Months Ended   Nine Months Ended 
   6/30/2020   6/30/2019   6/30/2020   6/30/2019 
FFO, AFFO                    
Net Income (Loss) Attributable to Common Shareholders  $26,851   $(3,121)  $(44,700)  $(11,664)
Less/Plus: Unrealized Holding (Gains) Losses Arising During the Periods   (19,610)   11,609    67,100    38,668 
Plus: Depreciation Expense (excluding Corporate Office Capitalized Costs)   11,685    10,665    34,474    31,692 
Plus: Amortization of Intangible Assets   524    490    1,539    1,495 
Plus: Amortization of Capitalized Lease Costs   290    256    846    726 
FFO Attributable to Common Shareholders   19,740    19,899    59,259    60,917 
Plus: Depreciation of Corporate Office Capitalized Costs   57    168    176    376 
Plus: Stock Compensation Expense   98    231    368    574 
Plus: Amortization of Financing Costs   327    319    1,084    956 
Plus: Non-recurring Severance Expense   -0-    -0-    786    -0- 
Less: Recurring Capital Expenditures   (508)   (702)   (1,443)   (1,888)
Less: Effect of Non-cash U.S. GAAP Straight-line Rent Adjustment   (226)   (527)   (1,459)   (1,352)
AFFO Attributable to Common Shareholders  $19,488   $19,388   $58,771   $59,583 

 

   For The   For The 
   Three Months Ended   Nine Months Ended 
   6/30/2020   6/30/2019   6/30/2020   6/30/2019 
Adjusted EBITDA                
Net Income (Loss) Attributable to Common Shareholders  $26,851   $(3,121)  $(44,700)  $(11,664)
Plus: Preferred Dividends   6,607    4,749    19,469    13,650 
Plus: Interest Expense, including Amortization of Financing Costs   8,975    9,275    27,235    27,879 
Plus: Depreciation and Amortization   12,531    11,554    36,958    34,211 
Plus: Net Amortization of Acquired Above and Below Market Lease Revenue   26    26    77    77 
Less/Plus: Unrealized Holding (Gains) Losses Arising During the Periods   (19,610)   11,609    67,100    38,668 
Adjusted EBITDA  $35,380   $34,092   $106,139   $102,821 

 

    THIRD QUARTER FISCAL YEAR 2020 SUPPLEMENTAL INFORMATION5
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NOI Reconciliations

(unaudited) (in thousands)

    For The     For The  
    Three Months Ended     Nine Months Ended  
  6/30/2020     6/30/2019     6/30/2020     6/30/2019  
Net Operating Income                        
Net Income (Loss) Attributable to Common Shareholders   $ 26,851     $ (3,121 )   $ (44,700 )   $ (11,664 )
Plus: Preferred Dividends     6,607       4,749       19,469       13,650  
Plus: General & Administrative Expenses     2,198       2,351       6,858       6,420  
Plus: Non-recurring Severance Expense     -0-       -0-       786       -0-  
Plus: Depreciation     11,743       10,833       34,650       32,067  
Plus: Amortization of Capitalized Lease Costs and Intangible Assets     788       721       2,308       2,144  
Plus: Interest Expense, including Amortization of Financing Costs     8,975       9,275       27,235       27,879  
Less/Plus: Unrealized Holding (Gains) Losses Arising During the Periods     (19,610 )     11,609       67,100       38,668  
Less: Dividend Income     (2,344 )     (3,686 )     (8,987 )     (11,569 )
Net Operating Income – NOI   $ 35,208     $ 32,731     $ 104,719     $ 97,595  

 

   For The   For The 
   Three Months Ended   Nine Months Ended 
  6/30/2020   6/30/2019   6/30/2020   6/30/2019 
Components of Net Operating Income Consists of:                    
Revenues:                    
Rental Revenue  $35,427   $33,127   $105,410   $98,678 
Reimbursement Revenue   6,348    5,421    19,772    16,473 
Total Rental and Reimbursement Revenue   41,775    38,548    125,182    115,151 
                     
Expenses:                    
Real Estate Taxes   5,140    4,168    15,205    12,370 
Operating Expenses   1,427    1,649    5,258    5,186 
Total Real Estate Taxes and Operating Expenses   6,567    5,817    20,463    17,556 
Net Operating Income – NOI  $35,208   $32,731   $104,719   $97,595 

 

    THIRD QUARTER FISCAL YEAR 2020 SUPPLEMENTAL INFORMATION6
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Financial Highlights

(unaudited) (in thousands except for per share amounts)

 

   For The   For The 
   Three Months Ended   Nine Months Ended 
   6/30/2020   6/30/2019   Change (%)   6/30/2020   6/30/2019   Change (%) 
                         
Weighted Average Common Shares Outstanding                              
Basic   97,906    94,399    3.7%   97,548    92,619    5.3%
Diluted   97,962    94,493    3.7%   97,626    92,719    5.3%
                               
Net Income (Loss) Attributable to Common Shareholders  $26,851   $(3,121)   960.3%  $(44,700)  $(11,664)   (283.2)%
                               
Basic  $0.27   $(0.03)   1,000.0%  $(0.46)  $(0.13)   (253.8)%
Diluted   0.27    (0.03)   1,000.0%   (0.46)   (0.13)   (253.8)%
                               
Net Operating Income – NOI  $35,208   $32,731    7.6%  $104,719   $97,595    7.3%
                               
Basic  $0.36   $0.35    2.9%  $1.07   $1.05    1.9%
Diluted   0.36    0.35    2.9%   1.07    1.05    1.9%
                               
Funds From Operations – FFO  $19,740   $19,899    (0.8)%  $59,259   $60,917    (2.7)%
                               
Basic  $0.20   $0.21    (4.8)%  $0.61   $0.66    (7.6)%
Diluted   0.20    0.21    (4.8)%   0.61    0.66    (7.6)%
                               
Adjusted Funds From Operations – AFFO  $19,488   $19,388    0.5%  $58,771    59,583    (1.4)%
                               
Basic  $0.20   $0.21    (4.8)%  $0.60   $0.64    (6.3)%
Diluted   0.20    0.21    (4.8)%   0.60    0.64    (6.3)%
                               
Dividends Declared per Common Share  $0.17   $0.17        $0.51   $0.51      
                               
Dividend/AFFO Payout Ratio   85.0%   81.0%        85.0%   79.7%     

 

    THIRD QUARTER FISCAL YEAR 2020 SUPPLEMENTAL INFORMATION7
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Same Property Statistics

(unaudited) (in thousands except for square feet)

 

   

For The Three Months Ended

             
    6/30/2020           6/30/2019     Change     Change %  
                               
Total Square Feet / Total Properties     23,375,642 / 118               21,802,835 / 113       1,572,807       7.2 %
                                         
Occupancy Percentage at End of Period     99.4 %             98.9 %     50 bps       0.5 %
                                         
Same Property Square Feet / Number of Same Properties             21,802,835 / 113                        
                                         
Same Property Occupancy Percentage at End of Period     99.4 %             98.9 %     50 bps       0.5 %
                                         
Same Property Net Operating Income (NOI) (GAAP)   $ 32,792             $ 32,731     $ 61       0.2 %
                                         
Reversal of Effect of Non-cash U.S. GAAP Straight-line Rent Adjustment     (34 )             (527 )     493          
Same Property Cash NOI   $ 32,758             $ 32,204     $ 554       1.7 %

 

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

 

Reconciliation of Same Property NOI to Total NOI

(unaudited) (in thousands)

 

   For The Three Months Ended         
   6/30/2020   6/30/2019   Change   Change % 
                 
Same Property NOI (GAAP)  $32,792   $32,731   $61    0.2%
                     
NOI of properties purchased subsequent to March 31, 2019 (one property purchased during fiscal 2019 and four properties purchased during fiscal 2020)   2,416    0           
                     
NOI of property expanded subsequent to  March 31, 2019 (no properties expanded during fiscal 2019 or fiscal 2020)   0    0           
                     
Total NOI  $35,208   $32,731   $2,477    7.6%

 

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Same Property Statistics

(unaudited) (in thousands except for square feet)

 

   For The Nine Months Ended         
   6/30/2020       6/30/2019   Change   Change % 
                     
Total Square Feet / Total Properties   23,375,642 / 118        21,802,835 / 113    1,572,807    7.2%
                          
Occupancy Percentage at End of Period   99.4%        98.9%   50 bps    0.5%
                          
Same Property Square Feet / Number of Same Properties        21,040,215 / 110               
                          
Same Property Occupancy Percentage at End of Period   99.3%        98.9%   40 bps    0.4%
                          
Same Property Net Operating Income (NOI) (GAAP)  $92,228        $91,637   $591    0.6%
                          
Reversal of Effect of Non-cash U.S. GAAP Straight-line Rent Adjustment   (844)        (1,370)   526      
Same Property Cash NOI  $91,384        $90,267   $1,117    1.2%

 

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

 

Reconciliation of Same Property NOI to Total NOI

(unaudited) (in thousands)

 

   For The Nine Months Ended         
   6/30/2020   6/30/2019   Change   Change % 
                 
Same Property NOI (GAAP)  $92,228   $91,637   $591    0.6%
                     
NOI of properties purchased subsequent to
September 30, 2018 (three properties purchased during fiscal 2019 and four properties purchased during fiscal 2020)
   10,960    4,846           
                     
NOI of property expanded subsequent to
September 30, 2018 (one property expanded during fiscal 2019)
   1,531    1,112           
                     
Total NOI  $104,719   $97,595   $7,124    7.3%

 

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Consolidated Statements of Cash Flows

(unaudited)(in thousands)

 

   For The 
   Nine Months Ended 
    6/30/2020    6/30/2019 
CASH FLOWS FROM OPERATING ACTIVITIES          
Net Income (Loss)  $(25,231)  $1,986 
Noncash Items Included in Net Income (Loss):          
Depreciation & Amortization   38,043    35,167 
Deferred Straight Line Rent   (1,459)   (1,352)
Stock Compensation Expense   368    574 
Securities Available for Sale Received as Dividend Income   (977)   (651)
Unrealized Holding Losses Arising During the Periods   67,100    38,668 
Changes in:          
Tenant & Other Receivables   (1,153)   664 
Prepaid Expenses   (2,242)   (1,185)
Other Assets & Capitalized Lease Costs   (1,999)   173 
Accounts Payable, Accrued Expenses & Other Liabilities   2,482    709 
NET CASH PROVIDED BY OPERATING ACTIVITIES   74,932    74,753 
           
CASH FLOWS FROM INVESTING ACTIVITIES          
Purchase of Real Estate & Intangible Assets   (160,023)   (113,406)
Capital Improvements   (4,726)   (11,594)
Return of Deposits on Real Estate   2,000    200 
Deposits Paid on Acquisitions of Real Estate   (550)   (6,400)
Proceeds from Securities Available for Sale Called for Redemption   250    -0- 
Purchase of Securities Available for Sale   -0-    (54,136)
NET CASH USED IN INVESTING ACTIVITIES   (163,049)   (185,336)
           
CASH FLOWS FROM FINANCING ACTIVITIES          
Net Repayments on Loans Payable   (15,000)   (60,422)
Proceeds from Fixed Rate Mortgage Notes Payable   100,560    72,500 
Principal Payments on Fixed Rate Mortgage Notes Payable   (41,166)   (50,180)
Financing Costs Paid on Debt   (2,397)   (444)
Proceeds from the Exercise of Stock Options   1,016    567 
Proceeds from Underwritten Public Offering of Common Stock, net of offering costs   -0-    132,338 
Proceeds from At-The-Market 6.125% Series C Preferred Stock, net of offering costs   84,815    24,049 
Proceeds from Issuance of Common Stock in the DRIP, net of Dividend Reinvestments   18,641    44,618 
Shares repurchased through the Common Stock Repurchase Plan   (4,276)   -0- 
Preferred Dividends Paid   (19,029)   (13,520)
Common Dividends Paid, net of Reinvestments   (43,122)   (34,616)
NET CASH PROVIDED BY FINANCING ACTIVITIES   80,042    114,890 
           
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS   (8,075)   4,307 
CASH AND CASH EQUIVALENTS - BEGINNING OF PERIOD   20,179    9,324 
CASH AND CASH EQUIVALENTS - END OF PERIOD  $12,104   $13,631 

 

    THIRD QUARTER FISCAL YEAR 2020 SUPPLEMENTAL INFORMATION10
Table of Contents 

 

Capital Structure and Leverage Ratios

(unaudited) (in thousands except for per share amounts)

 

   As of   As of   As of 
   6/30/2020   6/30/2019   9/30/2019 
             
Fixed Rate Mortgage Notes Payable, net of Unamortized Debt Issuance Costs  $804,342   $734,095   $744,928 
Loans Payable   80,000    126,187    95,000 
Total Debt   884,342    860,282    839,928 
                
6.125% Series C Cumulative Redeemable Preferred Stock   433,850    312,660    347,678 
Common Stock, Additional Paid-In-Capital & Other   589,935    641,112    663,365 
Total Shareholders’ Equity   1,023,785    953,772    1,011,043 
                
Total Book Capitalization   1,908,127    1,814,054    1,850,971 
                
Accumulated Depreciation   284,058    238,757    249,584 
Total Undepreciated Book Capitalization  $2,192,185   $2,052,811   $2,100,555 
                
Shares Outstanding   97,972    95,155    96,399 
Market Price Per Share  $14.49   $13.55   $14.41 
                
Equity Market Capitalization  $1,419,614   $1,289,350   $1,389,107 
Total Debt   884,342    860,282    839,928 
Total Preferred Stock   433,850    312,660    347,678 
Total Market Capitalization  $2,737,806   $2,462,292   $2,576,713 
                
Total Debt  $884,342   $860,282   $839,928 
less: Cash and Cash Equivalents   12,104    13,631    20,179 
Net Debt  $872,238   $846,651   $819,749 
less: Securities Available for Sale at Fair Value (Securities)   118,877    171,040    185,250 
Net Debt Less Securities  $753,361   $675,611   $634,499 
                
Net Debt / Total Undepreciated Book Capitalization   39.8%   41.2%   39.0%
Net Debt / Total Market Capitalization   31.9%   34.4%   31.8%
Net Debt Plus Preferred Stock / Total Market Capitalization   47.7%   47.1%   45.3%
Net Debt Less Securities / Total Undepreciated Book Capitalization   34.4%   32.9%   30.2%
Net Debt Less Securities / Total Market Capitalization   27.5%   27.4%   24.6%
Net Debt Less Securities Plus Preferred Stock / Total Market Capitalization   43.4%   40.1%   38.1%
                
Weighted Average Interest Rate on Fixed Rate Mortgage Debt   4.00%   4.03%   4.03%
Weighted Average Term on Fixed Rate Mortgage Debt   11.2 yrs.    11.5 yrs.    11.3 yrs. 
Weighted Average Lease Term   7.2 yrs.    7.8 yrs.    7.6 yrs. 

 

    THIRD QUARTER FISCAL YEAR 2020 SUPPLEMENTAL INFORMATION11
Table of Contents 

 

Capital Structure and Leverage Ratios

(unaudited) (in thousands)

 

   For the Three Months Ended   For the Nine Months Ended   Fiscal Year Ended 
   6/30/2020   6/30/2019   6/30/2020   6/30/2019   9/30/2019 
Net Income (Loss) Attributable to Common Shareholders  $26,851   $(3,121)  $(44,700)  $(11,664)  $11,026 
Plus: Preferred Dividends   6,607    4,749    19,469    13,650    18,774 
Plus: Interest Expense, including Amortization of Financing Costs   8,975    9,275    27,235    27,879    36,912 
Plus: Depreciation and Amortization   12,531    11,554    36,958    34,211    45,890 
Plus: Net Amortization of Acquired Above and Below Market Lease Revenue   26    26    77    77    103 
Less/Plus: Unrealized Holding (Gains) Losses Arising During the Periods   (19,610)   11,609    67,100    38,668    24,680 
Adjusted EBITDA  $35,380   $34,092   $106,139   $102,821   $137,385 
                          
Interest Expense, including Amortization of Financing Costs  $8,975   $9,275   $27,235   $27,879   $36,912 
Preferred Dividends   6,607    4,749    19,469    13,650    18,774 
Total Fixed Charges  $15,582   $14,024   $46,704   $41,529   $55,686 
                          
Interest Coverage   3.9 x    3.7 x    3.9 x    3.7 x    3.7 x 
Fixed Charge Coverage   2.3 x    2.4 x    2.3 x    2.5 x    2.5 x 
                          
Net Debt  $872,238   $846,651   $872,238   $846,651   $819,749 
Net Debt Less Securities   753,361    675,611    753,361    675,611    634,499 
Total Preferred Stock   433,850    312,660    433,850    312,660    347,678 
Annualized Adjusted EBITDA   141,520    136,368    141,519    137,095    137,385 
                          
Net Debt / Adjusted EBITDA   6.2 x     6.2 x    6.2 x    6.2 x    6.0 x 
Net Debt Less Securities / Adjusted EBITDA   5.3 x     5.0 x    5.3 x    4.9 x    4.6 x 
Net Debt + Preferred Stock / Adjusted EBITDA   9.2 x     8.5 x    9.2 x    8.5 x    8.5 x 
Net Debt Less Securities + Preferred Stock / Adjusted EBITDA   8.4 x    7.2 x    8.4 x    7.2 x    7.1 x 

 

    THIRD QUARTER FISCAL YEAR 2020 SUPPLEMENTAL INFORMATION12
Table of Contents 

 

Debt Maturity

(unaudited) (In thousands)

 

 

            Loans         % of 
Fiscal Year Ended       Mortgages   Payable     Total   Total 
                        
2020       $14,688   $5,000  (B)  $19,688    2.2%
2021        60,263    -0-      60,263    6.8%
2022        82,613    -0-      82,613    9.3%
2023        61,541    -0-      61,541    6.9%
2024        74,807    -0-      74,807    8.4%
Thereafter        518,397    75,000  (C)   593,397    66.4%
                            
Total as of 6/30/2020    (A)   $812,309   $80,000     $892,309    100.0%
                            
Weighted Average Interest Rate         4.00%   2.78 %   3.89%    
Weighted Average Term        11.2 yrs.    4.3 yrs.      10.6 yrs.      

 

  (A) Mortgages does not include unamortized debt issuance costs of $8.0 million.
  (B) Represents margin debt which is due upon demand. Subsequent to the quarter end, we paid off this margin debt.
  (C) Represents a Term Loan maturing January 2025.

 

    THIRD QUARTER FISCAL YEAR 2020 SUPPLEMENTAL INFORMATION13
Table of Contents 

 

Property Table by Tenant

(unaudited)

 

Tenant      Property
Count
   Square
Footage
   Occupied Square Footage   % of Occupied sf   Annual
Rent
   % of Total Ann. Rent   Rent Per sf Occup.   Undepreciated
Cost
     Mortgage
Balance
 
                                           
FedEx Ground Package System, Inc.      45    9,101,593    9,101,593    38.9%  $74,007,000    50.2%  $8.13   $1,055,494,582     $457,097,001 
FedEx Corporation        16    1,164,830    1,164,830    5.0%   7,492,000    5.1%   6.43    108,854,670      20,771,501 
FedEx Forward Depots, Inc.        1    449,900    449,900    1.9%   1,394,000    0.9%   3.10    16,092,852      3,532,289 
Total FedEx        62    10,716,323    10,716,323    45.8%   82,893,000    56.2%   7.74    1,180,442,104      481,400,791 
                                                     
Amazon.com Services, Inc. (Amazon.com, Inc.)        4    1,370,465    1,370,465    5.9%   9,709,000    6.6%   7.08    151,597,032      85,937,017 
Milwaukee Electric Tool Corporation        1    861,889    861,889    3.7%   3,076,000    2.1%   3.57    36,914,917      18,517,035 
Shaw Industries, Inc.        1    831,764    831,764    3.6%   3,529,000    2.4%   4.24    56,025,945      28,825,747 
ULTA, Inc.        1    671,354    671,354    2.9%   2,755,000    1.9%   4.10    37,540,948      17,710,034 
Jim Beam Brands Company (Beam Suntory)        1    599,840    599,840    2.6%   2,092,000    1.4%   3.49    28,000,000      14,884,902 
International Paper Company        2    578,472    578,472    2.5%   2,639,000    1.8%   4.56    37,024,608      18,234,310 
TreeHouse Private Brands, Inc.        1    558,600    558,600    2.4%   2,246,000    1.5%   4.02    26,807,852      13,991,566 
Autoneum North America, Inc.        1    413,605    413,605    1.8%   2,221,000    1.5%   5.37    21,040,396      13,069,495 
B. Braun Medical Inc.        1    399,440    399,440    1.7%   2,159,000    1.5%   5.41    30,263,247      17,474,438 
UGN, Inc.        1    387,000    387,000    1.7%   2,088,000    1.4%   5.40    21,576,756      12,830,691 
CBOCS Distribution, Inc. (Cracker Barrel)        1    381,240    381,240    1.6%   1,475,000    1.0%   3.87    14,215,126      -0- 
Best Buy Warehousing Logistics, Inc.        1    368,060    368,060    1.6%   1,709,000    1.2%   4.64    19,600,000      8,191,801 
Toyota Tsusho America, Inc.        1    350,000    350,000    1.5%   1,710,000    1.2%   4.89    25,078,587      16,312,321 
Coca-Cola        2    323,358    323,358    1.4%   1,725,000    1.2%   5.33    20,504,069      2,595,283 
Science Applications International Corporation        1    302,400    302,400    1.3%   1,683,000    1.1%   5.57    14,463,148      -0- 
Bunzl USA Holdings, Inc.        2    268,778    268,778    1.1%   1,500,000    1.0%   5.58    18,731,674      11,121,385 
Woodstream Corporation   (A)     1    256,000    256,000    1.1%   932,000    0.6%   3.64    8,958,278      -0- 
Anda Pharmaceuticals, Inc.        1    234,660    234,660    1.0%   1,215,000    0.8%   5.18    14,550,000      6,428,839 
United Technologies Corporation        2    223,150    223,150    1.0%   1,507,000    1.0%   6.75    23,594,917      4,961,570 
Mickey Thompson Performance Tires and Wheels (Cooper Tire)        1    219,765    219,765    0.9%   1,523,000    1.0%   6.93    18,934,065      10,980,563 
Rinnai America Corporation        1    218,120    218,120    0.9%   851,000    0.6%   3.90    15,082,217      -0- 
Anheuser-Busch, Inc.        1    184,800    184,800    0.8%   843,000    0.6%   4.56    12,697,848      -0- 
Carlisle Tire & Wheel Company        1    179,280    179,280    0.8%   765,000    0.5%   4.27    7,282,986      -0- 
NF&M International, Inc.   (B)     1    174,802    174,802    0.7%   841,000    0.6%   4.81    5,414,850      -0- 
Home Depot USA, Inc.        1    171,200    171,200    0.7%   1,064,000    0.7%   6.21    11,303,317      -0- 
Magna Seating of America, Inc.        1    153,000    153,000    0.7%   1,197,000    0.8%   7.82    17,557,830      9,277,101 
Victory Packaging, L.P.        1    148,000    148,000    0.6%   514,000    0.3%   3.47    5,455,379      -0- 
Challenger Lifts, Inc. (Snap-On Inc.)        1    137,500    137,500    0.6%   852,000    0.6%   6.20    11,304,000      5,808,421 
Altec Industries, Inc.   (A)     1    126,880    126,880    0.5%   376,000    0.3%   2.96    4,439,947      -0- 
General Electric Company        1    125,860    125,860    0.5%   1,334,000    0.9%   10.60    19,964,283      9,793,926 
Keurig Dr Pepper        2    110,080    110,080    0.5%   753,000    0.5%   6.84    10,498,031      1,448,041 
Style Crest, Inc.        1    106,507    106,507    0.5%   398,000    0.3%   3.74    7,263,673      -0- 
Sonwil Distribution Center, Inc.        1    104,981    104,981    0.4%   630,000    0.4%   6.00    10,960,823      -0- 
Pittsburgh Glass Works, LLC        1    102,135    102,135    0.4%   450,000    0.3%   4.41    4,249,615      -0- 
Dakota Bodies, LLC        1    96,687    96,687    0.4%   378,000    0.3%   3.91    7,797,827      -0- 
National Oilwell Varco, Inc.        1    91,295    91,295    0.4%   796,000    0.5%   8.72    8,163,278      1,240,892 
Joseph T. Ryerson and Son, Inc.        1    89,052    89,052    0.4%   514,000    0.3%   5.77    7,164,514      -0- 
CHEP USA, Inc.        1    83,000    83,000    0.3%   506,000    0.4%   6.10    7,463,672      -0- 
Sherwin-Williams Company        2    78,887    78,887    0.3%   648,000    0.4%   8.21    7,258,078      -0- 
RGH Enterprises, Inc. (Cardinal Health)        1    75,000    75,000    0.2%   619,000    0.5%   8.25    5,525,600      -0- 
Tampa Bay Grand Prix        1    68,385    68,385    0.3%   361,000    0.2%   5.28    5,677,982      -0- 
Various Tenants at Retail Shopping Center        1    64,220    61,190    0.3%   757,000    0.5%   12.37    3,139,564      -0- 
SOFIVE, Inc.        1    60,400    60,400    0.3%   633,000    0.4%   10.48    5,296,752      1,273,228 
Locke Supply Co.        1    60,000    60,000    0.3%   325,000    0.2%   5.42    4,914,955      -0- 
Siemens Real Estate        1    51,130    51,130    0.2%   459,000    0.3%   8.98    4,554,685      -0- 
Foundation Building Materials, LLC        1    36,270    36,270    0.2%   178,000    0.1%   4.91    2,543,770      -0- 
Graybar Electric Company        1    26,340    26,340    0.1%   121,000    0.1%   4.59    2,312,027      -0- 
Vacant    (B)     2    135,668    -0-    0.0%   -0-    0.0%   -0-    6,011,427      -0- 
Total as of 6/30/20        118    23,375,642    23,236,944    99.4%  $147,549,000    100.0%  $6.35   $2,027,162,599   (C)  $812,309,397 

 

  (A) Woodstream Corporation and Altec Industries, Inc. are located at one property and, therefore, are counted as one property in the Property Count Total.
  (B) NF&M International is located in a 255,658 square foot industrial park in Monaca (Pittsburgh), PA, of which 80,856 square feet are vacant. This industrial park is counted as one property in the Property Count Total. Other than two properties indicated in footnotes (A) and (B) and one retail property, all properties are single-tenant.
  (C) Does not include unamortized debt issuance costs of $7,966,986.

 

    THIRD QUARTER FISCAL YEAR 2020 SUPPLEMENTAL INFORMATION14
Table of Contents 

 

Property Table by State

(unaudited)

 

State  Property
Count
  Square
Footage
   Occupied Square Footage   % of Total sf   Annual
Rent
   % of Total Ann. Rent   Rent Per sf Occup.   Undepreciated
Cost
   Mortgage
Balance
 
Florida   13   2,211,583    2,211,583    9.5%  $15,817,000    10.7%  $7.15   $227,587,902   $85,677,333 
Indiana   4   1,964,923    1,964,923    8.4%   11,132,000    7.5%   5.67    167,487,527    94,067,086 
Ohio   10   1,858,506    1,858,506    8.0%   11,218,000    7.6%   6.04    137,189,167    51,686,656 
Texas   10   1,781,967    1,781,967    7.6%   13,788,000    9.3%   7.74    183,107,137    67,681,983 
Georgia   6   1,639,696    1,639,696    7.0%   10,551,000    7.1%   6.43    166,213,681    81,421,927 
South Carolina   6   1,371,721    1,371,721    5.9%   10,309,000    7.0%   7.52    129,964,844    52,671,211 
Kentucky   3   1,295,940    1,295,940    5.5%   5,190,000    3.5%   4.00    66,111,852    34,684,889 
North Carolina   5   1,225,987    1,225,987    5.2%   8,688,000    5.9%   7.09    132,526,762    68,482,923 
Mississippi   4   1,158,889    1,158,889    5.0%   4,532,000    3.1%   3.91    55,677,635    24,945,874 
Illinois   9   958,045    958,045    4.1%   6,222,000    4.2%   6.49    83,168,709    7,483,017 
Tennessee   3   891,777    891,777    3.8%   3,188,000    2.2%   3.57    35,677,250    3,532,289 
Michigan   4   833,054    833,054    3.6%   5,577,000    3.8%   6.69    73,424,162    22,654,378 
Kansas   4   813,043    813,043    3.5%   4,678,000    3.2%   5.75    61,025,122    26,020,683 
Missouri   4   740,119    740,119    3.2%   2,900,000    2.0%   3.92    35,448,902    6,319,464 
Oklahoma   4   614,941    614,941    2.6%   3,975,000    2.7%   6.46    54,961,021    26,311,965 
New York   3   518,565    518,565    2.2%   3,572,000    2.4%   6.89    51,618,400    19,101,252 
Pennsylvania   3   504,040    423,184    2.2%   2,826,000    1.9%   6.68    36,906,779    12,326,903 
New Jersey   3   471,765    468,735    2.0%   6,696,000    4.6%   14.29    92,423,938    51,939,063 
Alabama   2   451,595    451,595    1.9%   2,650,000    1.8%   5.87    39,714,135    17,001,043 
Virginia   5   407,265    407,265    1.7%   2,456,000    1.7%   6.03    34,868,096    3,524,522 
Colorado   2   295,227    295,227    1.3%   2,441,000    1.6%   8.27    35,694,134    14,840,275 
Arizona   1   283,358    283,358    1.2%   1,393,000    0.9%   4.92    16,824,226    2,231,508 
Wisconsin   2   238,666    238,666    1.0%   1,295,000    0.9%   5.43    16,377,221    2,055,817 
Washington   1   210,445    210,445    0.9%   1,962,000    1.3%   9.32    30,320,686    15,766,363 
Louisiana   1   175,315    175,315    0.7%   1,270,000    0.9%   7.24    18,425,875    9,873,503 
Maryland   1   148,881    148,881    0.6%   1,455,000    1.0%   9.77    14,512,355    -0- 
Nebraska   1   89,115    89,115    0.4%   446,000    0.3%   5.00    5,963,626    -0- 
Utah   1   69,734    69,734    0.3%   772,000    0.5%   11.07    12,666,994    8,360,000 
Minnesota   1   60,398    60,398    0.3%   372,000    0.3%   6.16    5,223,944    1,647,470 
Connecticut   1   54,812    -0-    0.2%   -0-    0.0%   -0-    3,506,747    -0- 
Iowa   1   36,270    36,270    0.2%   178,000    0.1%   4.91    2,543,770    -0- 
Total as of 6/30/20  118   23,375,642    23,236,944    100.0%  $147,549,000    100.0%  $6.35   $2,027,162,599 (A) $812,309,397 

 

  (A) Does not include unamortized debt issuance costs of $7,966,986.

 

    THIRD QUARTER FISCAL YEAR 2020 SUPPLEMENTAL INFORMATION15
Table of Contents 

 

Lease Expirations

(unaudited)

 

Fiscal Year     Property
Count
   Square
Footage
   % of Total
Sf
   Annual
Rent
   % of Total
Ann. Rent
   Rent Per sf
Occup.
   Lease Exp.
Term in Years
   Undepreciated
Cost
   Mortgage
Balance
 
                                        
2020  (B)   1    98,045    0.4%  $490,000    0.3%  $5.00    -0-   $-0-   $-0- 
2021  (A)   10    1,206,723    5.2%   5,560,000    3.8%   4.61    0.9    69,813,124    6,683,239 
2022      7    1,152,006    4.9%   6,372,000    4.3%   5.53    1.7    78,920,819    19,765,577 
2023  (A)   14    1,840,004    7.9%   10,612,000    7.2%   5.77    2.9    128,622,634    17,588,596 
2024      13    1,887,034    8.1%   11,722,000    7.9%   6.21    3.9    137,488,989    22,935,645 
2025  (A)   10    2,459,470    10.5%   12,462,000    8.4%   5.07    4.9    164,532,551    64,398,049 
2026      8    1,078,913    4.6%   8,331,000    5.6%   7.72    5.9    113,206,322    30,442,622 
2027      12    2,373,001    10.2%   13,049,000    8.8%   5.50    7.1    185,819,770    64,355,260 
2028      11    2,571,915    11.0%   13,970,000    9.5%   5.43    7.8    182,728,436    62,263,260 
2029      9    1,830,929    7.8%   10,548,000