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, 2019

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.)

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, 2019, Monmouth Real Estate Investment Corporation issued a press release announcing the results for the first quarter ended December 31, 2018 and disclosed a supplemental information package in connection with its earnings conference call for the first quarter ended December 31, 2018. 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;

● 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, 2018 and press release dated February 7, 2019.

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 February 7, 2019

3

EX-99.1

Table of Contents

	Page
Consolidated Balance Sheets	3
Consolidated Statements of Income (Loss)	4
FFO, Core FFO, AFFO, EBITDAre, Adjusted EBITDA	5
NOI Reconciliations	6
Financial Highlights	7
Same Property Statistics	8
Consolidated Statements of Cash Flows	9
Capital Structure and Leverage Ratios	10
Debt Maturity	12
Securities Portfolio Historic Performance	13
Property Table by Tenant	15
Property Table by State	16
Lease Expirations	17
Recent Acquisitions	18
Property Table	19
Definitions	22
Press Release Dated February 7, 2019	23

The statement of operations and supplemental statement of operations provided in this supplemental information package present funds from operations (FFO), core funds from operations (Core FFO), adjusted funds from operations (AFFO), net operating income (NOI), 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 22 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.

Consolidated Balance Sheets

	As of			As of
	December 31, 2018			September 30, 2018
	(unaudited)
ASSETS
Real Estate Investments:
Land	$	236,496,768		$	224,719,083
Buildings and Improvements		1,598,894,954			1,494,859,336
Total Real Estate Investments		1,835,391,722			1,719,578,419
Accumulated Depreciation		(217,503,811	)		(207,065,634	)
Real Estate Investments		1,617,887,911			1,512,512,785
Cash and Cash Equivalents		12,768,766			9,324,585
Securities Available for Sale at Fair Value		145,810,088			154,920,545
Tenant and Other Receivables		6,673,026			1,249,434
Deferred Rent Receivable		10,022,552			9,656,179
Prepaid Expenses		11,364,081			6,189,796
Intangible Assets, net of Accumulated Amortization of $14,199,559 and $13,699,519, respectively		15,976,082			14,589,756
Capitalized Lease Costs, net of Accumulated Amortization of $3,409,446 and $3,271,481, respectively		5,003,816			5,231,845
Financing Costs, net of Accumulated Amortization of $1,089,169 and $995,135, respectively		407,212			500,129
Other Assets		3,443,080			4,202,832
TOTAL ASSETS	$	1,829,356,614		$	1,718,377,886
LIABILITIES AND SHAREHOLDERS’ EQUITY
Liabilities:
Fixed Rate Mortgage Notes Payable, net of Unamortized Debt Issuance Costs	$	771,705,118		$	711,545,649
Loans Payable		125,814,547			186,608,676
Accounts Payable and Accrued Expenses		3,957,172			5,891,172
Other Liabilities		22,323,567			16,426,622
Total Liabilities		923,800,404			920,472,119
COMMITMENTS AND CONTINGENCIES
Shareholders’ Equity:
6.125% Series C Cumulative Redeemable Preferred Stock, $0.01 Par Value Per Share: 16,400,000 Shares Authorized as of December 31, 2018 and September 30, 2018; 11,532,445 and 11,488,001 Shares Issued and Outstanding as of December 31, 2018 and September 30, 2018, respectively		288,311,125			287,200,025
Common Stock, $0.01 Par Value Per Share: 188,039,750 Shares Authorized as of December 31, 2018 and September 30, 2018; 92,335,115 and 81,503,134 Shares Issued and Outstanding as of December 31, 2018 and September 30, 2018, respectively		923,351			815,031
Excess Stock, $0.01 Par Value Per Share: 200,000,000 Shares Authorized as of December 31, 2018 and September 30, 2018; No Shares Issued or Outstanding as of December 31, 2018 and September 30, 2018		-0-			-0-
Additional Paid-In Capital		616,321,734			534,635,290
Accumulated Other Comprehensive Loss		-0-			(24,744,579	)
Undistributed Income		-0-			-0-
Total Shareholders’ Equity		905,556,210			797,905,767
TOTAL LIABILITIES & SHAREHOLDERS’ EQUITY	$	1,829,356,614		$	1,718,377,886

FIRST quarter Fiscal year 2019 supplemental information 3

Consolidated Statements of Income (Loss)

(unaudited)

	For The
	Three Months Ended
	12/31/2018			12/31/2017
INCOME:
Rental Revenue	$	32,616,825		$	27,692,482
Reimbursement Revenue		6,529,789			5,772,167
Lease Termination Income		-0-			210,261
TOTAL INCOME		39,146,614			33,674,910
EXPENSES:
Real Estate Taxes		4,963,800			4,585,490
Operating Expenses		1,864,247			1,436,241
General & Administrative Expenses		1,816,892			1,947,032
Depreciation		10,477,844			8,483,984
Amortization of Capitalized Lease Costs and Intangible Assets		702,393			538,071
TOTAL EXPENSES		19,825,176			16,990,818
OTHER INCOME (EXPENSE):
Dividend and Interest Income		4,367,634			2,864,217
Gain on Sale of Securities Transactions		-0-			100,153
Unrealized Holding Losses Arising During the Period		(42,626,889	)		-0-
Interest Expense, including Amortization of Financing Costs		(9,005,405	)		(7,405,947	)
TOTAL OTHER INCOME (EXPENSE)		(47,264,660	)		(4,441,577	)
INCOME (LOSS) FROM CONTINUING OPERATIONS		(27,943,222	)		12,242,515
Gain on Sale of Real Estate Investments		-0-			5,387,886
NET INCOME (LOSS)		(27,943,222	)		17,630,401
Less: Preferred Dividends		4,420,441			4,316,946
NET INCOME (LOSS) ATTRIBUTABLE TO COMMON SHAREHOLDERS	$	(32,363,663	)	$	13,313,455

FIRST quarter Fiscal year 2019 supplemental information 4

FFO, Core FFO, AFFO, EBITDAre and Adjusted EBITDA Reconciliations

(unaudited)

	For The
	Three Months Ended
FFO, Core FFO, AFFO	12/31/2018			12/31/2017
Net Income (Loss) Attributable to Common Shareholders	$	(32,363,663	)	$	13,313,455
Plus: Depreciation Expense (excluding Corporate Office Capitalized Costs)		10,438,176			8,444,507
Plus: Amortization of Intangible Assets		500,040			343,746
Plus: Amortization of Capitalized Lease Costs		228,030			220,002
Less: Gain on Sale of Real Estate Investments		-0-			(5,387,886	)
FFO Attributable to Common Shareholders		(21,197,417	)		16,933,824
Plus: Unrealized Holding Losses Arising During the Period		42,626,889			-0-
Core FFO Attributable to Common Shareholders		21,429,472			16,933,824
Plus: Stock Compensation Expense		129,026			130,763
Plus: Depreciation of Corporate Office Capitalized Costs		39,668			39,477
Plus: Amortization of Financing Costs		317,113			293,894
Less: Lease Termination Income		-0-			(210,261	)
Less: Gain on Sale of Securities Transactions		-0-			(100,153	)
Less: Effect of non-cash U.S. GAAP Straight-line Rent Adjustment		(336,484	)		(396,028	)
Less: Recurring Capital Expenditures		(556,725	)		(219,246	)
AFFO Attributable to Common Shareholders	$	21,022,070		$	16,472,270

	For The
	Three Months Ended
EBITDAre, Adjusted EBITDA	12/31/2018			12/31/2017
Net Income (Loss) Attributable to Common Shareholders	$	(32,363,663	)	$	13,313,455
Plus: Preferred Dividends		4,420,441			4,316,946
Plus: Interest Expense, including Amortization of Financing Costs		9,005,405			7,405,947
Plus: Depreciation and Amortization		11,180,237			9,022,055
Less: Gain on Sale of Real Estate Investments		-0-			(5,387,886	)
EBITDAre		(7,757,580	)		28,670,517
Plus: Net Amortization of Acquired Above and Below Market Lease Revenue		25,677			25,677
Plus: Unrealized Holding Losses Arising During the Period		42,626,889			-0-
Less: Gain on Sale of Securities Transactions		-0-			(100,153	)
Adjusted EBITDA	$	34,894,986		$	28,596,041

FIRST quarter Fiscal year 2019 supplemental information 5

NOI Reconciliations

(unaudited)

	For The
	Three Months Ended
Net Operating Income	12/31/2018			12/31/2017
Net Income (Loss) Attributable to Common Shareholders	$	(32,363,663	)	$	13,313,455
Plus: Preferred Dividends		4,420,441			4,316,946
Plus: General & Administrative Expenses		1,816,892			1,947,032
Plus: Depreciation		10,477,844			8,483,984
Plus: Amortization of Capitalized Lease Costs and Intangible Assets		702,393			538,071
Plus: Interest Expense, including Amortization of Financing Costs		9,005,405			7,405,947
Plus: Unrealized Holding Losses Arising During the Period		42,626,889			-0-
Less: Dividend and Interest Income		(4,367,634	)		(2,864,217	)
Less: Gain on Sale of Securities Transactions		-0-			(100,153	)
Less: Gain on Sale of Real Estate Investments		-0-			(5,387,886	)
Less: Lease Termination Income		-0-			(210,261	)
Net Operating Income – NOI	$	32,318,567		$	27,442,918

	For The
	Three Months Ended
Components of Net Operating Income Consists of:	12/31/2018		12/31/2017
Revenues:
Rental Revenue	$	32,616,825	$	27,692,482
Reimbursement Revenue		6,529,789		5,772,167
Total Rental and Reimbursement Revenue		39,146,614		33,464,649
Expenses:
Real Estate Taxes		4,963,800		4,585,490
Operating Expenses		1,864,247		1,436,241
Total Real Estate Taxes and Operating Expenses		6,828,047		6,021,731
Net Operating Income – NOI	$	32,318,567	$	27,442,918

FIRST quarter Fiscal year 2019 supplemental information 6

Financial Highlights

(unaudited)

	For The
	Three Months Ended
	12/31/2018			12/31/2017			Change (%)
Weighted Average Common Shares Outstanding
Basic		90,505,329			76,375,400			18.5	%
Diluted		90,659,652			76,586,782			18.4	%
Net Income (Loss) Attributable to Common Shareholders	$	(32,363,663	)	$	13,313,455			(343.1	)%
Basic	$	(0.36	)	$	0.17			(311.8	)%
Diluted		(0.36	)		0.17			(311.8	)%
Net Operating Income – NOI	$	32,318,567		$	27,442,918			17.8	%
Basic	$	0.36		$	0.36			0.00	%
Diluted		0.36			0.36			0.00	%
Funds From Operations – FFO	$	(21,197,417	)	$	16,933,824			(225.2	)%
Basic	$	(0.23	)	$	0.22			(204.5	)%
Diluted		(0.23	)		0.22			(204.5	)%
Core Funds From Operations - Core FFO	$	21,429,472		$	16,933,824			26.5	%
Basic	$	0.24		$	0.22			9.1	%
Diluted		0.24			0.22			9.1	%
Adjusted Funds From Operations – AFFO	$	21,022,070		$	16,472,270			27.6	%
Basic	$	0.23		$	0.22			4.5	%
Diluted		0.23			0.22			4.5	%
Dividends Declared per Common Share	$	0.17		$	0.17
Dividend/AFFO Payout Ratio		73.9	%		77.3	%

FIRST quarter Fiscal year 2019 supplemental information 7

Same Property Statistics

(unaudited)

	For The Three Months Ended
	12/31/2018				12/31/2017			Change			Change %
Total Square Feet / Total Properties		21,647,246 / 113				19,096,237 / 108			2,551,009			13.4	%
Occupancy Percentage at End of Period		98.9	%			99.5	%		(60) bps			(0.6	)%
Same Property Square Feet / Number of Same Properties				18,013,923 / 102
Same Property Occupancy Percentage at End of Period		98.7	%			100.00	%		(130) bps			(1.3	)%
Same Property Net Operating Income (NOI) (GAAP)	$	25,796,328			$	25,981,342		$	(185,014	)		(0.7	)%
Reversal of Effect of Non-cash U.S. GAAP Straight-line Rent Adjustment		(274,892	)			(400,231	)		125,339
Same Property Cash NOI	$	25,521,436			$	25,581,111		$	(59,675	)		(0.2	)%

Same Property Statistics include all properties owned during the entire periods presented with the exclusion of properties expanded during the periods presented. Historically, there have been many properties expanded in our portfolio and these expansions have resulted in very favorable economic returns. This factor should be taken into account when analyzing our Same Property results.

The 0.7% decrease, amounting to $185,014 in Same Property NOI, consists of $108,319 derived from decreased NOI from occupied properties and $76,695 attributable to decreased NOI from vacant properties.

The 0.2% decrease, amounting to $59,675 in Same Property Cash NOI, consists of $78,801 derived from decreased NOI from vacant properties offset by a $19,126 increase in Cash NOI from occupied properties.

Reconciliation of Same Property NOI to Total NOI

	For The Three Months Ended
	12/31/2018		12/31/2017		Change			Change %
Same Property NOI (GAAP)	$	25,796,328	$	25,981,342	$	(185,014	)		(0.7	)%
NOI of properties purchased subsequent to September 30, 2017 (two properties purchased during fiscal 2019 and seven properties purchased during fiscal 2018)		5,699,787		376,319
NOI of properties expanded subsequent to September 30, 2017 (two properties expanded during fiscal 2018)		822,452		764,540
NOI of properties sold subsequent to September 30, 2017 (four properties sold during fiscal 2018)		-0-		320,717
Total NOI	$	32,318,567	$	27,442,918	$	4,875,649			17.8	%

FIRST quarter Fiscal year 2019 supplemental information 8

Consolidated Statements of Cash Flows

(unaudited)

	For The
	Three Months Ended
	12/31/2018			12/31/2017
CASH FLOWS FROM OPERATING ACTIVITIES
Net Income (Loss)	$	(27,943,222	)	$	17,630,401
Noncash Items Included in Net Income (Loss):
Depreciation & Amortization		11,497,350			9,315,949
Deferred Straight Line Rent		(336,484	)		(396,028	)
Stock Compensation Expense		129,026			130,763
Unrealized Holding Losses Arising During the Period		42,626,889			-0-
Gain on Sale of Securities Transactions		-0-			(100,153	)
Gain on Sale of Real Estate Investments		-0-			(5,387,886	)
Changes in:
Tenant & Other Receivables		(5,397,913	)		(3,607,013	)
Prepaid Expenses		(5,174,285	)		(3,690,362	)
Other Assets & Capitalized Lease Costs		1,224,442			(89,641	)
Accounts Payable, Accrued Expenses & Other Liabilities		5,286,173			3,284,409
NET CASH PROVIDED BY OPERATING ACTIVITIES		21,911,976			17,090,439
CASH FLOWS FROM INVESTING ACTIVITIES
Purchase of Real Estate & Intangible Assets		(113,405,548	)		(52,500,165	)
Capital Improvements		(5,657,269	)		(1,782,422	)
Proceeds from Sale of Real Estate Investments		-0-			10,499,704
Return of Deposits on Real Estate		200,000			450,000
Deposits Paid on Acquisitions of Real Estate		(700,000	)		(1,350,000	)
Proceeds from Sale of Securities Available for Sale		-0-			2,435,168
Purchase of Securities Available for Sale		(33,516,432	)		(19,714,857	)
NET CASH USED IN INVESTING ACTIVITIES		(153,079,249	)		(61,962,572	)
CASH FLOWS FROM FINANCING ACTIVITIES
Net Repayments on Loans Payable		(60,794,129	)		(10,091,417	)
Proceeds from Fixed Rate Mortgage Notes Payable		72,500,000			33,800,000
Principal Payments on Fixed Rate Mortgage Notes Payable		(12,121,151	)		(12,351,030	)
Financing Costs Paid on Debt		(443,576	)		(361,905	)
Proceeds from the Exercise of Stock Options		-0-			284,800
Proceeds from Underwritten Public Offering of Common Stock, net of offering costs		132,338,335			-0-
Proceeds from At-The-Market Preferred Equity Program, net of offering costs		1,006,150			25,687,516
Proceeds from Issuance of Common Stock in the DRIP, net of Dividend Reinvestments		17,595,425			22,611,458
Preferred Dividends Paid		(4,414,770	)		(4,080,685	)
Common Dividends Paid, net of Reinvestments		(11,054,830	)		(10,096,749	)
NET CASH PROVIDED BY FINANCING ACTIVITIES		134,611,454			45,401,988
NET INCREASE IN CASH AND CASH EQUIVALENTS		3,444,181			529,855
CASH AND CASH EQUIVALENTS - BEGINNING OF PERIOD		9,324,585			10,226,046
CASH AND CASH EQUIVALENTS - END OF PERIOD	$	12,768,766		$	10,755,901

FIRST quarter Fiscal year 2019 supplemental information 9

Capital Structure and Leverage Ratios

(unaudited)

	As of			As of			As of
	12/31/2018			12/31/2017			9/30/2018
Fixed Rate Mortgage Notes Payable, net of Unamortized Debt Issuance Costs	$	771,705,118		$	612,651,435		$	711,545,649
Loans Payable		125,814,547			110,000,000			186,608,676
Total Debt		897,519,665			722,651,435			898,154,325
6.125% Series C Cumulative Redeemable Preferred Stock		288,311,125			271,984,475			287,200,025
Common Stock, Paid-In-Capital & Other		617,245,085			482,099,326			510,705,742
Total Shareholders’ Equity		905,556,210			754,083,801			797,905,767
Total Book Capitalization		1,803,075,875			1,476,735,236			1,696,060,092
Accumulated Depreciation		217,503,811			182,232,695			207,065,634
Total Undepreciated Book Capitalization	$	2,020,579,686		$	1,658,967,931		$	1,903,125,726
Shares Outstanding		92,335,115			77,209,110			81,503,134
Market Price Per Share	$	12.40		$	17.80		$	16.72
Equity Market Capitalization	$	1,144,955,426		$	1,374,322,158		$	1,362,732,400
Total Debt		897,519,665			722,651,435			898,154,325
Total Preferred Stock		288,311,125			271,984,475			287,200,025
Total Market Capitalization	$	2,330,786,216		$	2,368,958,068		$	2,548,086,750
Total Debt	$	897,519,665		$	722,651,435		$	898,154,325
less: Cash and Cash Equivalents		12,768,766			10,755,901			9,324,585
Net Debt	$	884,750,899		$	711,895,534		$	888,829,740
less: Securities Available for Sale at Fair Value (Securities)		145,810,088			130,431,475			154,920,545
Net Debt Less Securities	$	738,940,811		$	581,464,059		$	733,909,195
Net Debt / Total Undepreciated Book Capitalization		43.8	%		42.9	%		46.7	%
Net Debt / Total Market Capitalization		38.0	%		30.1	%		34.9	%
Net Debt Plus Preferred Stock / Total Market Capitalization		50.3	%		41.5	%		46.2	%
Net Debt Less Securities / Total Undepreciated Book Capitalization		36.6	%		35.0	%		38.6	%
Net Debt Less Securities / Total Market Capitalization		31.7	%		24.5	%		28.8	%
Net Debt Less Securities Plus Preferred Stock / Total Market Capitalization		44.1	%		36.0	%		40.1	%
Weighted Average Interest Rate on Fixed Rate Debt		4.08	%		4.16	%		4.07	%
Weighted Average Term on Fixed Rate Debt		11.8 yrs.			11.5 yrs.			11.7 yrs.
Weighted Average Lease Term		8.0 yrs.			7.9 yrs.			8.1 yrs.

FIRST quarter Fiscal year 2019 supplemental information 10

Capital Structure and Leverage Ratios

(unaudited)

	For The
	Three Months Ended						Fiscal Year Ended
	12/31/2018			12/31/2017			9/30/2018
Net Income (Loss) Attributable to Common Shareholders	$	(32,363,663	)	$	13,313,455		$	38,815,344
Plus: Preferred Dividends		4,420,441			4,316,946			17,190,456
Plus: Interest Expense, including Amortization of Financing Costs		9,005,405			7,405,947			32,349,705
Plus: Depreciation and Amortization		11,180,237			9,022,055			38,567,027
Less: Gain on Sale of Real Estate Investments		-0-			(5,387,886	)		(7,485,266	)
EBITDAre		(7,757,580	)		28,670,517			119,437,266
Plus: Net Amortization of Acquired Above and Below Market Lease Revenue		25,677			25,677			102,708
Plus: Unrealized Holding Losses Arising During the Period		42,626,889			-0-			-0-
Less: Gain on Sale of Securities Transactions		-0-			(100,153	)		(111,387	)
Adjusted EBITDA	$	34,894,986		$	28,596,041		$	119,428,587
Interest Expense, including Amortization of Financing Costs	$	9,005,405		$	7,405,947		$	32,349,705
Preferred Dividends		4,420,441			4,316,946			17,190,456
Total Fixed Charges	$	13,425,846		$	11,722,893		$	49,540,161
Interest Coverage		3.9 x			3.9 x			3.7 x
Fixed Charge Coverage		2.6 x			2.4 x			2.4 x
Net Debt	$	884,750,899		$	711,895,534		$	888,829,740
Net Debt Less Securities		738,940,811			581,464,059			733,909,195
Total Preferred Stock		288,311,125			271,984,475			287,200,025
Annualized Adjusted EBITDA		139,579,944			114,384,164			119,428,587
Net Debt / Adjusted EBITDA		6.3 x			6.2 x			7.4 x
Net Debt Less Securities / Adjusted EBITDA		5.3 x			5.1 x			6.1 x
Net Debt + Preferred Stock / Adjusted EBITDA		8.4 x			8.6 x			9.8 x
Net Debt Less Securities + Preferred Stock / Adjusted EBITDA		7.4 x			7.5 x			8.5 x

FIRST quarter Fiscal year 2019 supplemental information 11

Debt Maturity

(unaudited)

					Loans							% of
Fiscal Year Ended		Mortgages			Payable				Total			Total
2019		$	50,904,415		$	15,814,547		(B)	$	66,718,962			7.4	%
2020			52,275,281			110,000,000		(C)		162,275,281			17.9	%
2021			53,924,903			-0-				53,924,903			6.0	%
2022			76,021,620			-0-				76,021,620			8.4	%
2023			54,683,239			-0-				54,683,239			6.0	%
Thereafter			492,337,746			-0-				492,337,746			54.3	%
Total as of 12/31/2018	(A)	$	780,147,204		$	125,814,547			$	905,961,751			100.0	%
Weighted Average Interest Rate			4.08	%		4.07	%			4.08	%
Weighted Average Term			11.8 yrs.			1.5 yrs.				10.3 yrs.

(A)	Mortgages does not include unamortized debt issuance costs of $8,442,086.
(B)	Represents margin debt which is due upon demand.
(C)	Represents the amount drawn down on a line of credit that has a one year extension option, which is not reflected above.

FIRST quarter Fiscal year 2019 supplemental information 12

Securities Portfolio Historic Performance (Fiscal Year)

(unaudited)

Fiscal Year	Securities Portfolio Cost (A)		Securities Available for Sale (A)		Dividend Income		Net Realized Gain on Sale of Securities		Change in Unrealized Gain/ (Loss) (B)			Total Return			Total Return %
2010	$	24,027,834	$	27,824,665	$	2,387,757	$	2,609,149	$	6,319,226		$	11,316,132			47.10	%
2011		32,401,668		42,517,725		2,981,534		5,238,203		(7,747,894	)		471,843			1.46	%
2012		41,896,896		44,265,059		3,144,837		6,044,065		3,015,774			12,204,676			29.13	%
2013		56,301,236		61,685,173		3,861,374		7,133,252		(3,394,669	)		7,599,957			13.50	%
2014		43,462,472		45,451,740		3,863,136		2,166,766		(1,867,912	)		4,161,990			9.58	%
2015		59,190,047		59,311,403		3,707,498		805,513		(5,562,959	)		(1,049,948	)		(1.77	)%
2016		59,982,840		54,541,237		5,607,403		4,398,599		18,383,870			28,389,872			47.33	%
2017		60,662,627		73,604,894		6,919,973		2,311,714		(6,371,702	)		2,859,985			4.71	%
2018		117,194,205		123,764,770		13,099,316		111,387		(31,315,144	)		(18,104,441	)		(15.45	)%
As of 12/31/18		179,665,124		154,920,545		4,331,260		-0-		(42,626,889	)		(38,295,628	)		(21.32	)%
Total					$	49,904,088	$	30,818,648	($	71,168,299	)	$	9,554,438			Avg. 11.43	%

(A)	Fiscal Year beginning balance
(B)	Fiscal Year end balance

FIRST quarter Fiscal year 2019 supplemental information 13

Securities Portfolio Historic Performance (Fiscal Year)

(unaudited)

FISCAL YEAR	MREIC REIT Portfolio (%)			MSCI REIT Index (RMS)(%)			S&P 500 Index (%)			MREIC vs. MSCI REIT Index (RMS) ∆ in BPS			MREIC vs. S&P 500 Index ∆ in BPS
2010		47.10			30.54			10.16			1656			3694
2011		1.46			1.26			1.14			20			32
2012		29.13			32.44			30.20			(331	)		(107	)
2013		13.50			5.75			19.34			775			(584	)
2014		9.58			13.26			19.73			(368	)		(1015	)
2015		(1.77	)		9.47			(0.61	)		(1124	)		(116	)
2016		47.33			19.83			15.43			2750			3190
2017		4.71			0.54			18.61			417			(1390	)
2018		(15.45	)		3.74			17.91			(1919	)		(3336	)
As of 12/31/18		(21.32	)		(6.72	)		(13.52	)		(1460	)		(780	)
Average		11.43			11.01			11.84			42			(41	)

Source: S&P Global Market Intelligence

FIRST quarter Fiscal year 2019 supplemental information 14

Property Table by Tenant

(unaudited)

		Property		Square		Occupied Square		% of Occupied			Annual		% of Total			Rent Per		Undepreciated			Mortgage
Tenant		Count		Footage		Footage		sf			Rent		Ann. Rent			sf Occup.		Cost			Balance
FedEx Ground Package System, Inc.			45		8,920,293		8,920,293		41.2	%	$	71,950,000		54.0	%	$	8.07	$	1,018,756,311		$	478,172,045
FedEx Corporation			15		1,095,096		1,095,096		5.1	%		6,719,000		5.0	%		6.14		95,088,178			13,507,172
FedEx Trade Networks, Inc.			1		449,900		449,900		2.0	%		1,389,000		1.0	%		3.09		14,614,986			4,850,224
Total FedEx			61		10,465,289		10,465,289		48.3	%		80,058,000		60.0	%		7.65		1,128,459,475			496,529,441
Milwaukee Electric Tool Corporation			1		861,889		861,889		4.0	%		3,054,000		2.3	%		3.54		36,914,917			21,277,426
Shaw Industries, Inc.			1		831,764		831,764		3.8	%		3,495,000		2.6	%		4.20		56,025,945			31,744,125
ULTA, Inc.			1		671,354		671,354		3.1	%		2,729,000		2.0	%		4.06		37,512,071			19,819,329
Amazon.com Services, Inc.			2		662,942		662,942		3.1	%		3,927,000		2.9	%		5.92		62,931,258			37,393,357
Jim Beam Brands Company (Beam Suntory)			1		599,840		599,840		2.8	%		2,071,000		1.6	%		3.45		28,000,000			16,401,661
International Paper Company			2		578,472		578,472		2.7	%		2,615,000		2.0	%		4.52		36,193,700			20,325,831
TreeHouse Private Brands, Inc.			1		558,600		558,600		2.6	%		2,226,000		1.7	%		3.98		26,807,852			15,123,751
B. Braun Medical Inc.			1		399,440		399,440		1.8	%		2,138,000		1.7	%		5.35		29,985,079			18,950,769
CBOCS Distribution, Inc. (Cracker Barrel)			1		381,240		381,240		1.8	%		1,461,000		1.1	%		3.83		14,215,126			7,157,408
Best Buy Warehousing Logistics, Inc.			1		368,060		368,060		1.7	%		1,693,000		1.3	%		4.60		19,600,000			9,148,541
Coca-Cola			2		323,358		323,358		1.5	%		1,709,000		1.3	%		5.29		20,504,069			4,306,169
Autoneum North America, Inc.			1		315,560		315,560		1.5	%		1,717,000		1.3	%		5.44		21,040,395			14,277,126
Science Applications International Corporation			1		302,400		302,400		1.4	%		1,505,000		1.1	%		4.98		13,410,102			-0-
United Technologies Corporation			2		223,150		223,150		1.0	%		1,543,000		1.2	%		6.91		22,919,203			6,252,748
Bunzl USA Holdings, Inc.			2		268,778		268,778		1.2	%		1,487,000		1.1	%		5.53		18,731,674			12,025,717
Woodstream Corporation	(A)		1		256,000		256,000		1.2	%		920,000		0.7	%		3.59		8,935,160			-0-
Anda Pharmaceuticals, Inc.			1		234,660		234,660		1.1	%		1,210,000		0.9	%		5.16		14,550,000			7,407,762
UGN, Inc.	(D)		1		232,200		232,200		1.1	%		1,080,000		0.8	%		4.65		20,992,285			7,003,100
Mickey Thompson Performance Tires and Wheels (Cooper Tire)			1		219,765		219,765		1.0	%		1,511,000		1.1	%		6.88		18,934,065			11,971,172
Rinnai America Corporation			1		218,120		218,120		1.0	%		840,000		0.6	%		3.85		15,042,743			-0-
Anheuser-Busch, Inc.			1		184,800		184,800		0.9	%		832,000		0.6	%		4.50		12,697,848			-0-
Carlisle Tire & Wheel Company			1		179,280		179,280		0.8	%		761,000		0.6	%		4.24		7,232,986			-0-
NF&M International, Inc.	(B)		1		174,802		174,802		0.8	%		837,000		0.6	%		4.79		5,408,790			-0-
Home Depot USA, Inc.			1		171,200		171,200		0.8	%		1,007,000		0.8	%		5.88		11,303,317			-0-
Victory Packaging, L.P.			1		148,000		148,000		0.7	%		508,000		0.4	%		3.43		5,455,379			-0-
Challenger Lifts, Inc. (Snap-On Inc.)			1		137,500		137,500		0.6	%		845,000		0.6	%		6.15		11,304,000			6,425,593
Altec Industries, Inc.	(A)		1		126,880		126,880		0.6	%		374,000		0.3	%		2.95		4,428,488			-0-
General Electric Company			1		125,860		125,860		0.6	%		1,328,000		1.0	%		10.55		19,950,000			11,004,259
Kuerig Dr Pepper			2		110,080		110,080		0.5	%		748,000		0.6	%		6.80		10,498,031			1,652,546
Style Crest, Inc.			1		106,507		106,507		0.5	%		392,000		0.3	%		3.68		7,246,325			-0-
Pittsburgh Glass Works, LLC			1		102,135		102,135		0.5	%		447,000		0.3	%		4.38		4,245,913			-0-
Holland 1916 Inc.			1		95,898		95,898		0.4	%		353,000		0.3	%		3.68		7,410,296			-0-
National Oilwell Varco, Inc.			1		91,295		91,295		0.4	%		759,000		0.6	%		8.31		8,163,278			2,025,154
Joseph T. Ryerson and Son, Inc.			1		89,052		89,052		0.4	%		506,000		0.4	%		5.68		6,977,442			-0-
CHEP USA, Inc.			1		83,000		83,000		0.4	%		503,000		0.4	%		6.06		7,463,672			-0-
Sherwin-Williams Company			2		78,887		78,887		0.4	%		647,000		0.5	%		8.20		7,244,128			-0-
RGH Enterprises, Inc. (Cardinal Health)			1		75,000		75,000		0.3	%		613,000		0.5	%		8.17		5,525,600			-0-
Tampa Bay Grand Prix			1		68,385		68,385		0.3	%		302,000		0.2	%		4.42		5,677,982			-0-
Various Tenants at Retail Shopping Center			1		64,220		64,220		0.3	%		815,000		0.6	%		12.69		3,128,604			-0-
SOFIVE, Inc.			1		60,400		60,400		0.3	%		568,000		0.4	%		9.40		5,054,381			1,538,034
Kellogg Sales Company			1		54,812		54,812		0.3	%		329,000		0.2	%		6.00		3,494,108			-0-
Siemens Real Estate			1		51,130		51,130		0.2	%		461,000		0.3	%		9.02		4,452,425			-0-
Foundation Building Materials, LLC			1		36,270		36,270		0.1	%		176,000		0.1	%		4.85		2,523,644			-0-
Graybar Electric Company			1		26,340		26,340		0.1	%		109,000		0.1	%		4.14		1,904,062			-0-
Tenant Total as of 12/31/18			111		21,414,614		21,414,614		98.9	%	$	133,209,000		100.0	%	$	6.22	$	1,820,495,818	(C)	$	779,761,019
Vacant	(B)		3		232,632		-0-		0.0	%		-0-		0.0	%		-0-		14,884,839			386,185
Total as of 12/31/18			113		21,647,246		21,414,614		98.9	%	$	133,209,000		100.0	%	$	6.22	$	1,835,380,657	(C)	$	780,147,204

(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 is vacant. This Industrial Park is counted as one property in the Property Count Total. Other than the two properties indicated in footnotes (A) and (B) and the one retail property, all other properties are single-tenant.
(C)	Does not include unamortized debt issuance costs of $8,442,086.
(D)	Subsequent to quarter end, we completed a 154,800 square foot property expansion at our Monroe (Cincinnati), OH facility, increasing the building from 232,200 square feet to 387,000 square feet and increasing annual rent by approximately $862,000 per year. The lease was extended 15 years from the date of completion, extending the lease expiration from February 2030 to January 2034.

FIRST quarter Fiscal year 2019 supplemental information 15

Property Table by State

(unaudited)

	Property		Square		Occupied Square		% of Total			Annual		% of Total			Rent Per		Undepreciated			Mortgage
State	Count		Footage		Footage		sf			Rent		Ann. Rent			sf Occup.		Cost			Balance
Florida		13		2,211,583		2,211,583		10.2	%	$	15,730,000		11.8	%	$	7.11	$	226,946,516		$	99,280,024
Texas		10		1,781,967		1,781,967		8.2	%		13,777,000		10.3	%		7.73		182,253,655			76,647,300
Georgia		6		1,639,696		1,639,696		7.6	%		10,507,000		7.9	%		6.41		166,168,458			88,902,381
Ohio		9		1,550,706		1,550,706		7.2	%		8,964,000		6.7	%		5.78		117,781,585			39,448,817
Kentucky		3		1,295,940		1,295,940		6.0	%		5,142,000		3.9	%		3.97		66,111,852			37,951,005
South Carolina		6		1,273,676		1,181,900		5.9	%		8,838,000		6.6	%		7.48		127,224,585			58,222,251
Mississippi		4		1,158,889		1,158,889		5.4	%		4,493,000		3.4	%		3.88		55,269,670			28,685,189
Indiana		2		999,176		999,176		4.6	%		4,446,000		3.3	%		4.45		63,016,154			30,014,337
Illinois		9		958,045		958,045		4.4	%		6,143,000		4.6	%		6.41		82,698,574			8,414,439
North Carolina		4		939,706		939,706		4.3	%		5,674,000		4.3	%		6.04		85,789,646			42,053,097
Tennessee		3		891,777		891,777		4.1	%		3,169,000		2.4	%		3.55		33,968,652			12,007,632
Michigan		4		833,054		833,054		3.8	%		5,575,000		4.2	%		6.69		73,271,650			25,332,404
Kansas		4		813,043		813,043		3.8	%		4,656,000		3.5	%		5.73		60,943,937			29,454,490
Missouri		4		739,330		739,330		3.4	%		2,852,000		2.1	%		3.86		35,023,092			6,589,684
Oklahoma		4		614,941		614,941		2.8	%		3,943,000		3.0	%		6.41		54,939,874			29,189,875
New York		3		518,565		518,565		2.4	%		3,897,000		2.9	%		7.51		51,336,423			21,020,026
Pennsylvania		3		504,040		423,184		2.3	%		2,816,000		2.1	%		6.65		36,883,632			14,157,696
New Jersey		3		471,765		471,765		2.2	%		6,711,000		5.0	%		14.23		92,170,608			56,316,905
Alabama		2		451,595		451,595		2.1	%		2,630,000		2.0	%		5.82		39,714,135			18,893,276
Virginia		5		407,265		347,265		1.9	%		2,128,000		1.7	%		6.13		34,680,077			4,274,405
Colorado		2		295,227		295,227		1.4	%		2,441,000		1.9	%		8.27		35,683,647			16,728,142
Arizona		1		283,358		283,358		1.3	%		1,377,000		1.0	%		4.86		16,824,226			3,513,345
Wisconsin		2		238,666		238,666		1.1	%		1,295,000		1.0	%		5.43		16,342,720			2,559,396
Washington		1		210,445		210,445		1.0	%		1,962,000		1.5	%		9.32		30,228,547			17,480,692
Louisiana		1		175,315		175,315		0.8	%		1,265,000		0.9	%		7.22		18,410,000			10,959,374
Maryland		1		148,881		148,881		0.7	%		1,455,000		1.1	%		9.77		14,512,355			-0-
Nebraska		1		89,115		89,115		0.4	%		446,000		0.3	%		5.00		5,944,691			-0-
Minnesota		1		60,398		60,398		0.3	%		372,000		0.3	%		6.16		5,223,944			2,051,022
Connecticut		1		54,812		54,812		0.3	%		329,000		0.2	%		6.00		3,494,108			-0-
Iowa		1		36,270		36,270		0.1	%		176,000		0.1	%		4.85		2,523,644			-0-
Total as of 12/31/18		113		21,647,246		21,414,614		100.0	%	$	133,209,000		100.0	%	$	6.22	$	1,835,380,657	(A)	$	780,147,204

(A) Does not include unamortized debt issuance costs of $8,442,086.

FIRST quarter Fiscal year 2019 supplemental information 16

Lease Expirations

(unaudited)

		Property		Square		% of Total			Annual		% of Total			Rent Per sf		Lease Exp.		Undepreciated			Mortgage
Fiscal Year		Count		Footage		Sf			Rent		Ann. Rent			Occup.		Term in Years		Cost			Balance
2019			4		529,619		2.4	%	$	2,933,000		2.2	%	$	5.54		0.4	$	33,685,283		$	-0-
2020			4		383,449		1.8	%		2,144,000		1.6	%		5.59		1.4		27,452,849			-0-
2021	(A)		10		1,206,723		5.6	%		5,516,000		4.1	%		4.57		2.4		69,627,073			7,663,422
2022			7		1,138,320		5.3	%		6,463,000		4.9	%		5.68		3.2		76,109,324			24,717,156
2023	(A)		13		1,668,804		7.7	%		9,522,000		7.1	%		5.71		4.5		116,936,208			21,038,088
2024			12		1,584,634		7.3	%		10,055,000		7.5	%		6.35		5.5		122,194,406			33,807,378
2025	(A)		9		2,404,478		11.1	%		12,336,000		9.3	%		5.13		6.4		160,029,541			73,693,248
2026			7		982,226		4.5	%		7,940,000		6.0	%		8.08		7.4		105,340,055			39,417,842
2027			11		2,304,616		10.6	%		12,612,000		9.5	%		5.47		8.6		178,980,285			71,645,524
2028			11		2,571,915		11.9	%		13,902,000		10.4	%		5.41		9.3		182,014,111			69,800,092
2029			6		1,297,858		6.0	%		7,224,000		5.4	%		5.57		10.2		103,723,041			49,343,475
2030			4		1,044,832		4.8	%		7,419,000		5.6	%		7.10		11.3		117,261,865			60,844,615
2031			3		963,269		4.4	%		7,135,000		5.4	%		7.41		12.3		104,367,000			64,032,676
2032			7		2,071,983		9.6	%		18,480,000		13.9	%		8.92		13.3		286,034,815			179,766,985
2033			2		639,068		3.0	%		6,487,000		4.9	%		10.15		14.3		106,803,506			68,866,767
2034			1		558,600		2.6	%		2,226,000		1.7	%		3.98		14.8		26,807,852			15,123,751
Various tenants at retail shopping center			1		64,220		0.3	%		815,000		0.5	%		12.69		-0-		3,128,604			-0-
Vacant	(A)		3		232,632		1.1	%		-0-		0.0	%		-0-		-0-		14,884,839			386,185
Total as of 12/31/18			113		21,647,246		100.0	%	$	133,209,000		100.0	%	$	6.22		8.0	$	1,835,380,657	(B)	$	780,147,204

(A)

Included in 2021 is Woodstream Corporation and included in 2023 is Altec Industries which both occupy one property. Included in 2025 is NF&M International, which occupies 174,802 square feet of a 255,658 square foot Industrial Park. The remaining 80,856 square feet is included in Vacant. Each of these properties are counted as one property in the Property Count Total. Other than these properties and the one retail property, all other properties are single-tenant.

(B)

Does not include unamortized debt issuance costs of $8,442,086.

FIRST quarter Fiscal year 2019 supplemental information 17

Recent Acquisitions During Fiscal 2019

(unaudited)

				Date of	Square		Annual		Rent Per		Lease	Purchase		Initial Mortgage
No	Tenant	City (MSA)	State	Acquisition	Footage		Rent		sf Occup.		Expiration	Price		Balance
1	FedEx Ground Package System, Inc.	Trenton	NJ	10/19/18		347,145	$	5,328,000	$	15.35	6/30/2032	$	85,248,352	$	55,000,000
2	FedEx Ground Package System, Inc.	Savannah	GA	11/30/18		126,520		1,755,000		13.87	10/31/2028		27,832,780		17,500,000
	Total as of 12/31/18					473,665	$	7,083,000	$	14.95		$	113,081,132	$	72,500,000

FIRST quarter Fiscal year 2019 supplemental information 18

Property Table

(unaudited)

					Fiscal Year				Square		Annual		Rent Per sf		Lease Exp. Term in		Undepreciated		Mortgage
No	Tenant		City (MSA)	State	Acquisition	Occup.			Footage		Rent		Occup.		Years		Cost		Balance
1	Milwaukee Electric Tool Corporation		Olive Branch (Memphis, TN)	MS	2013		100.0	%		861,889	$	3,054,000	$	3.54		9.6	$	36,914,917	$	21,277,426
2	Shaw Industries, Inc.		Savannah	GA	2018		100.0	%		831,764		3,495,000		4.20		8.8		56,025,945		31,744,125
3	ULTA, Inc.		Greenwood (Indianapolis)	IN	2015		100.0	%		671,354		2,729,000		4.06		6.6		37,512,071		19,819,329
4	Jim Beam Brands Company (Beam Suntory)		Frankfort (Lexington)	KY	2015		100.0	%		599,840		2,071,000		3.45		6.1		28,000,000		16,401,661
5	TreeHouse Private Brands, Inc.		Buckner (Louisville)	KY	2014		100.0	%		558,600		2,226,000		3.98		14.8		26,807,852		15,123,751
6	FedEx Trade Networks, Inc.		Memphis	TN	2010		100.0	%		449,900		1,389,000		3.09		10.4		14,614,986		4,850,224
7	B. Braun Medical Inc.		Daytona Beach	FL	2018		100.0	%		399,440		2,138,000		5.35		9.3		29,985,080		18,950,769
8	Woodstream Corporation		St. Joseph	MO	2001		100.0	%		256,000		920,000		3.59		2.8		8,935,160		-0-
	Altec Industries, Inc.		St. Joseph	MO	2001		100.0	%		126,880		374,000		2.95		4.2		4,428,488		-0-
9	CBOCS Distribution, Inc. (Cracker Barrel)		Lebanon (Nashville)	TN	2011		100.0	%		381,240		1,461,000		3.83		5.5		14,215,126		7,157,408
10	FedEx Ground Package System, Inc.		Braselton (Atlanta)	GA	2018		100.0	%		373,750		3,783,000		10.12		14.2		60,227,126		39,377,342
11	Best Buy Warehousing Logistics, Inc.		Streetsboro (Cleveland)	OH	2012		100.0	%		368,060		1,693,000		4.60		3.1		19,600,000		9,148,541
12	Amazon.com Services, Inc. (Amazon.com, Inc.)		Mobile	AL	2018		100.0	%		362,942		2,025,000		5.58		9.9		33,052,316		18,578,812
13	FedEx Ground Package System, Inc.		Concord (Charlotte)	NC	2017		100.0	%		354,482		2,537,000		7.16		13.4		40,043,145		24,525,291
14	FedEx Ground Package System, Inc.		Mesquite (Dallas)	TX	2017		100.0	%		351,874		3,199,000		9.09		13.3		49,880,493		30,494,834
15	FedEx Ground Package System, Inc.		Trenton	NJ	2019		100.0	%		347,145		5,328,000		15.35		13.5		83,987,622		54,778,871
16	FedEx Ground Package System, Inc.		Walker (Grand Rapids)	MI	2017		100.0	%		343,483		2,103,000		6.12		13.1		31,654,987		19,196,705
17	FedEx Ground Package System, Inc.		Hamburg (Buffalo)	NY	2017		100.0	%		338,584		2,318,000		6.85		12.3		34,850,000		21,020,026
18	FedEx Ground Package System, Inc.		Concord (Charlotte)	NC	2016		100.0	%		330,717		2,237,000		6.76		6.6		33,044,797		17,527,806
19	FedEx Ground Package System, Inc.		Indianapolis	IN	2014		100.0	%		327,822		1,717,000		5.24		8.8		25,504,083		10,195,009
20	Autoneum North America, Inc.		Aiken (Augusta, GA)	SC	2017		100.0	%		315,560		1,717,000		5.44		13.3		21,040,395		14,277,126
21	FedEx Ground Package System, Inc.		Olathe (Kansas City)	KS	2016		100.0	%		313,763		2,204,000		7.02		12.4		31,737,000		19,661,838
22	FedEx Ground Package System, Inc.		Davenport (Orlando)	FL	2016		100.0	%		310,922		2,613,000		8.40		12.3		37,780,000		23,350,813
23	FedEx Ground Package System, Inc.		Ft. Worth (Dallas)	TX	2015		100.0	%		304,608		2,379,000		7.81		11.3		35,300,832		20,405,628
24	Science Applications International Corporation		Hanahan (Charleston)	SC	2005		100.0	%		302,400		1,505,000		4.98		0.3		13,410,102		-0-
25	Amazon.com Services, Inc. (Amazon.com, Inc.)		Oklahoma City	OK	2018		100.0	%		300,000		1,902,000		6.34		8.8		29,878,942		18,814,544
26	International Paper Company		Kenton	OH	2017		100.0	%		298,472		1,256,000		4.21		8.7		17,899,593		11,326,004
27	FedEx Ground Package System, Inc.		Jacksonville	FL	2015		100.0	%		297,579		1,998,000		6.71		11.0		30,740,202		15,955,194
28	Western Container Corp. (Coca-Cola)		Tolleson (Phoenix)	AZ	2003		100.0	%		283,358		1,377,000		4.86		8.3		16,824,226		3,513,345
29	International Paper Company		Edwardsville (Kansas City)	KS	2014		100.0	%		280,000		1,359,000		4.85		4.7		18,294,108		8,999,828
30	FedEx Ground Package System, Inc.		Charleston	SC	2018		100.0	%		265,318		2,704,000		10.19		14.5		46,576,380		29,489,425
31	NF&M International, Inc.		Monaca (Pittsburgh)	PA	1988		68.4	%		255,658		837,000		4.79		6.0		7,910,666		-0-
32	FedEx Ground Package System, Inc.		Orion	MI	2007		100.0	%		245,633		1,908,000		7.77		4.5		22,890,124		-0-
33	FedEx Ground Package System, Inc.		Homestead (Miami)	FL	2017		100.0	%		237,756		2,282,000		9.60		13.3		37,908,760		22,986,988
34	Anda Pharmaceuticals, Inc.		Olive Branch (Memphis, TN)	MS	2012		100.0	%		234,660		1,210,000		5.16		3.6		14,550,000		7,407,762
35	UGN, Inc.	(B)	Monroe (Cincinnati)	OH	2015		100.0	%		232,200		1,080,000		4.65		11.2		20,992,285		7,003,100
36	FedEx Ground Package System, Inc.		Colorado Springs	CO	2016		100.0	%		225,362		1,832,000		8.13		7.1		29,320,066		16,400,429
37	Mickey Thompson Performance Tires and Wheels (Cooper Tire)		Stow	OH	2017		100.0	%		219,765		1,511,000		6.88		8.7		18,934,065		11,971,172
38	Rinnai America Corporation		Griffin (Atlanta)	GA	2006		100.0	%		218,120		840,000		3.85		2.0		15,042,743		-0-
39	FedEx Ground Package System, Inc.		Ft. Myers	FL	2017		100.0	%		213,672		1,418,000		6.64		8.7		21,663,635		13,090,878
40	FedEx Ground Package System, Inc.		Burlington (Seattle/Everett)	WA	2016		100.0	%		210,445		1,962,000		9.32		11.7		30,228,547		17,480,692
41	FedEx Ground Package System, Inc.		Sauget (St. Louis, MO)	IL	2015		100.0	%		198,773		1,036,000		5.21		10.4		15,204,950		8,414,439
42	Anheuser-Busch, Inc.		Granite City (St. Louis, MO)	IL	2001		100.0	%		184,800		832,000		4.50		2.9		12,697,848		-0-
43	Carrier Enterprise, LLC (United Technologies)		Carrollton (Dallas)	TX	2010		100.0	%		184,317		1,178,000		6.39		5.1		17,819,203		6,252,748
44	FedEx Ground Package System, Inc.		Spring (Houston)	TX	2014		100.0	%		181,176		1,581,000		8.73		5.8		19,294,396		7,767,739
45	Carlisle Tire & Wheel Company		Edwardsville (Kansas City)	KS	2003		100.0	%		179,280		761,000		4.24		4.6		7,232,986		-0-
46	FedEx Ground Package System, Inc.		Ft. Mill (Charlotte, NC)	SC	2010		100.0	%		176,939		1,598,000		9.03		9.7		17,063,643		562,343
47	FedEx Ground Package System, Inc.		Covington (New Orleans)	LA	2016		100.0	%		175,315		1,265,000		7.22		6.5		18,410,000		10,959,374
48	FedEx Ground Package System, Inc.		Livonia (Detroit)	MI	2013		100.0	%		172,005		1,194,000		6.94		3.2		13,879,697		6,135,699
49	Home Depot USA, Inc.		Montgomery (Chicago)	IL	2004		100.0	%		171,200		1,007,000		5.88		1.5		11,303,317		-0-
50	FedEx Ground Package System, Inc.		Tampa	FL	2004		100.0	%		170,779		1,624,000		9.51		7.6		19,701,575		4,945,384

FIRST quarter Fiscal year 2019 supplemental information 19

Property Table

(unaudited)

				Fiscal Year				Square		Annual		Rent Per sf		Lease Exp. Term in		Undepreciated		Mortgage
No	Tenant	City (MSA)	State	Acquisition	Occup.			Footage		Rent		Occup.		Years		Cost		Balance
51	FedEx Ground Package System, Inc.	Edinburg	TX	2011		100.0	%		164,207	$	1,097,000	$	6.68		7.8	$	12,039,014	$	-0-
52	FedEx Ground Package System, Inc.	Lindale (Tyler)	TX	2015		100.0	%		163,378		725,000		4.44		5.5		9,965,550		5,540,904
53	Bunzl Distribution Midcentral, Inc.	Kansas City	MO	2015		100.0	%		158,417		758,000		4.78		2.8		10,003,235		6,589,684
54	FedEx Ground Package System, Inc.	Oklahoma City	OK	2012		100.0	%		158,340		1,048,000		6.62		6.5		12,584,462		3,286,751
55	FedEx Ground Package System, Inc.	Waco	TX	2012		100.0	%		150,710		1,078,000		7.15		6.7		12,551,368		4,160,292
56	FedEx Ground Package System, Inc.	Beltsville (Washington, DC)	MD	2001		100.0	%		148,881		1,455,000		9.77		9.6		14,512,355		-0-
57	Victory Packaging, L.P.	Fayetteville	NC	1997		100.0	%		148,000		508,000		3.43		2.2		5,455,379		-0-
58	FedEx Ground Package System, Inc.	El Paso	TX	2006		100.0	%		144,149		1,345,000		9.33		4.8		12,431,192		-0-
59	FedEx Ground Package System, Inc.	Cocoa	FL	2008		100.0	%		144,138		1,112,000		7.71		5.8		14,127,449		-0-
60	FedEx Ground Package System, Inc.	Cudahy (Milwaukee)	WI	2001		100.0	%		139,564		827,000		5.93		8.5		9,772,720		-0-
61	Challenger Lifts, Inc. (Snap-On Inc.)	Louisville	KY	2016		100.0	%		137,500		845,000		6.15		7.4		11,304,000		6,425,593
62	FedEx Ground Package System, Inc.	Richfield (Cleveland)	OH	2006		100.0	%		131,152		1,493,000		11.38		5.8		16,447,178		-0-
63	FedEx Ground Package System, Inc.	Savannah	GA	2019		100.0	%		126,520		1,755,000		13.87		9.8		27,531,560		17,500,000
64	General Electric Company	Imperial (Pittsburgh)	PA	2016		100.0	%		125,860		1,328,000		10.55		7.0		19,950,000		11,004,259
65	FedEx Ground Package System, Inc.	Wheeling (Chicago)	IL	2003		100.0	%		123,000		1,272,000		10.34		8.4		18,992,949		-0-
66	FedEx Ground Package System, Inc.	Altoona	PA	2014		100.0	%		122,522		651,000		5.31		4.7		9,022,966		3,153,437
67	FedEx Corporation	Charleston	SC	2018		100.0	%		121,683		1,314,000		10.80		13.7		21,519,412		13,507,172
68	FedEx Corporation	Mechanicsville (Richmond)	VA	2001		100.0	%		112,799		541,000		4.80		4.3		7,792,395		-0-
69	FedEx Corporation	Orlando	FL	2008		100.0	%		110,638		666,000		6.02		8.9		8,774,524		-0-
70	Bunzl Distribution Oklahoma, Inc.	Oklahoma City	OK	2017		100.0	%		110,361		729,000		6.61		5.7		8,728,439		5,436,033
71	Style Crest, Inc.	Winston-Salem	NC	2002		100.0	%		106,507		392,000		3.68		2.2		7,246,325		-0-
72	FedEx Ground Package System, Inc.	Cheektowaga (Buffalo)	NY	2000		100.0	%		104,981		966,000		9.20		0.7		10,960,823		-0-
73	FedEx Ground Package System, Inc.	West Chester Twp. (Cincinnati)	OH	1999		100.0	%		103,818		548,000		5.28		4.7		5,733,686		-0-
74	FedEx Ground Package System, Inc.	Roanoke	VA	2013		100.0	%		103,402		755,000		7.30		4.3		10,200,000		4,274,405
75	Pittsburgh Glass Works, LLC	O’ Fallon (St. Louis)	MO	1994		100.0	%		102,135		447,000		4.38		2.5		4,245,913		-0-
76	FedEx Ground Package System, Inc.	Green Bay	WI	2013		100.0	%		99,102		468,000		4.72		4.4		6,570,000		2,559,396
77	Holland 1916 Inc.	Liberty (Kansas City)	MO	1998		100.0	%		95,898		353,000		3.68		0.5		7,410,296		-0-
78	FedEx Corporation	Jacksonville	FL	1999		100.0	%		95,883		535,000		5.58		10.4		6,569,229		-0-
79	FedEx Corporation	Tampa	FL	2006		100.0	%		95,662		603,000		6.30		8.9		7,841,345		-0-
80	Vacant	Hanahan (Charleston)	SC	2005		0.00	%		91,776		-0-		na		na		7,614,653		386,185
81	National Oilwell Varco, Inc.	Houston	TX	2010		100.0	%		91,295		759,000		8.31		3.8		8,163,278		2,025,154
82	FedEx Corporation	Omaha	NE	1999		100.0	%		89,115		446,000		5.00		4.8		5,944,691		-0-
83	Joseph T. Ryerson and Son, Inc.	Elgin (Chicago)	IL	2002		100.0	%		89,052		506,000		5.68		1.1		6,977,442		-0-
84	FedEx Ground Package System, Inc.	Huntsville	AL	2005		100.0	%		88,653		605,000		6.82		7.6		6,661,819		314,464
85	CHEP USA, Inc.	Roanoke	VA	2007		100.0	%		83,000		503,000		6.06		6.2		7,463,672		-0-
86	FedEx Corporation	Bedford Heights (Cleveland)	OH	2007		100.0	%		82,269		438,000		5.32		9.7		6,972,353		-0-
87	RGH Enterprises, Inc. (Cardinal Health)	Halfmoon (Albany)	NY	2012		100.0	%		75,000		613,000		8.17		2.9		5,525,600		-0-
88	FedEx Corporation	Schaumburg (Chicago)	IL	1997		100.0	%		73,500		478,000		6.50		8.3		5,177,940		-0-
89	FedEx Corporation	Romulus (Detroit)	MI	1998		100.0	%		71,933		370,000		5.14		2.4		4,846,842		-0-
90	FedEx Ground Package System, Inc.	Denver	CO	2005		100.0	%		69,865		609,000		8.72		6.8		6,363,581		327,713
91	Tampa Bay Grand Prix	Tampa	FL	2005		100.0	%		68,385		302,000		4.42		1.8		5,677,982		-0-
92	Sherwin-Williams Company	Rockford	IL	2011		100.0	%		66,387		485,000		7.31		5.0		5,551,227		-0-
93	Various Tenants at Retail Shopping Center	Somerset	NJ	1970		100.0	%		64,220		815,000		12.69		na		3,128,604		-0-
94	Kuerig Dr Pepper	Cincinnati	OH	2015		100.0	%		63,840		484,000		7.58		10.8		6,750,000		-0-
95	FedEx Corporation	Chattanooga	TN	2007		100.0	%		60,637		319,000		5.26		3.8		5,138,540		-0-
96	SOFIVE, Inc.	Carlstadt (New York, NY)	NJ	2001		100.0	%		60,400		568,000		9.40		6.1		5,054,381		1,538,034
97	FedEx Ground Package System, Inc.	Stewartville (Rochester)	MN	2013		100.0	%		60,398		372,000		6.16		4.4		5,223,944		2,051,022
98	Vacant	Richmond	VA	2004		0.00	%		60,000		-0-		na		na		4,768,309		-0-
99	FedEx Ground Package System, Inc.	Augusta	GA	2005		100.0	%		59,358		513,000		8.64		2.5		5,363,305		280,914
100	Kellogg Sales Company	Newington (Hartford)	CT	2001		100.0	%		54,812		329,000		6.00		1.2		3,494,108		-0-

FIRST quarter Fiscal year 2019 supplemental information 20

Property Table

(unaudited)

				Fiscal Year				Square		Annual		Rent Per sf		Lease Exp. Term in		Undepreciated			Mortgage
No	Tenant	City (MSA)	State	Acquisition	Occup.			Footage		Rent		Occup.		Years		Cost			Balance
101	Siemens Real Estate	Lebanon (Cincinnati)	OH	2012		100.0	%		51,130	$	461,000	$	9.02		5.3	$	4,452,425		$	-0-
102	FedEx Corporation	Charlottesville	VA	1999		100.0	%		48,064		329,000		6.85		8.7		4,455,701			-0-
103	FedEx Ground Package System, Inc.	Corpus Christi	TX	2012		100.0	%		46,253		436,000		9.43		2.7		4,808,329			-0-
104	Kuerig Dr Pepper	Tulsa	OK	2014		100.0	%		46,240		264,000		5.71		5.2		3,748,031			1,652,546
105	Heartland Coca-Cola Bottling Company, LLC (Coca-Cola)	Topeka	KS	2009		100.0	%		40,000		332,000		8.30		2.8		3,679,843			792,824
106	Collins Aerospace Systems (United Technologies)	Rockford	IL	2015		100.0	%		38,833		365,000		9.40		8.5		5,100,000			-0-
107	Foundation Building Materials, LLC	Urbandale (Des Moines)	IA	1994		100.0	%		36,270		176,000		4.85		9.0		2,523,644			-0-
108	FedEx Corporation	Richland (Jackson)	MS	1994		100.0	%		36,000		120,000		3.33		5.3		1,900,691			-0-
109	FedEx Corporation	Punta Gorda	FL	2007		100.0	%		34,624		284,000		8.20		8.5		4,133,510			-0-
110	FedEx Corporation	Lakeland	FL	2006		100.0	%		32,105		155,000		4.83		8.9		2,043,226			-0-
111	FedEx Corporation	Augusta	GA	2006		100.0	%		30,184		121,000		4.01		3.9		1,977,779			-0-
112	Graybar Electric Company	Ridgeland (Jackson)	MS	1993		100.0	%		26,340		109,000		4.14		0.6		1,904,062			-0-
113	Sherwin-Williams Company	Burr Ridge (Chicago)	IL	1997		100.0	%		12,500		162,000		12.96		2.8		1,692,901			-0-
	Total as of 12/31/18					98.9	%		21,647,246	$	133,209,000	$	6.22		8.0	$	1,835,380,657	(A)	$	780,147,204

(A)	Does not include unamortized debt issuance costs of $8,442,086.
(B)	Subsequent to quarter end, we completed a 154,800 square foot property expansion at our Monroe (Cincinnati), OH facility, increasing the building from 232,200 square feet to 387,000 square feet and increasing annual rent by approximately $862,000 per year. The lease was extended 15 years from the date of completion, extending the lease expiration from February 2030 to January 2034.

FIRST quarter Fiscal year 2019 supplemental information 21

Definitions

Investors and analysts following the real estate industry utilize funds from operations (“FFO”), core funds from operations (“Core FFO”), net operating income (“NOI”), same store NOI, same store cash NOI, earnings before interest, taxes, depreciation and amortization (“EBITDA”) and adjusted funds from operations (“AFFO”), variously defined, as supplemental performance measures. While the Company believes net income available to common stockholders, as defined by accounting principles generally accepted in the United States of America (U.S. GAAP), is the most appropriate measure, it considers NOI, Same Store NOI, Same Store Cash NOI, EBITDA, FFO, Core FFO and AFFO, given their wide use by and relevance to investors and analysts, appropriate supplemental performance measures. FFO, reflecting the assumption that real estate asset values rise or fall with market conditions, principally adjusts for the effects of U.S. GAAP depreciation and amortization of real estate assets. Core FFO reflects the same assumptions as FFO except that is also adjusts for unrealized holding gains or losses arising during the period. NOI provides a measure of rental operations, and does not factor in depreciation and amortization and non-property specific expenses such as general and administrative expenses. EBITDA provides a tool to further evaluate the ability to incur and service debt and to fund dividends and other cash needs. AFFO provides a tool to further evaluate the ability to fund dividends. In addition, NOI, Same Store NOI, Same Store Cash NOI, EBITDA, FFO, Core FFO and AFFO are commonly used in various ratios, pricing multiples, yields and returns and valuation of calculations used to measure financial position, performance and value. As used herein, we calculate the following non-U.S. GAAP measures as follows:

● FFO, as defined by The National Association of Real Estate Investment Trusts (NAREIT), to be equal to net income applicable to common shareholders, as defined by U.S. GAAP, excluding extraordinary items as defined by U.S. GAAP, gains or losses from sales of previously depreciated real estate assets, impairment charges related to depreciable real estate assets, plus certain non-cash items such as real estate asset depreciation and amortization. FFO includes unrealized gains and losses arising during the period from our securities investments and includes gains and losses realized on sale of securities investments. NAREIT created FFO as a non-U.S. GAAP supplemental measure of REIT operating performance and is used by industry analysts and investors as a supplemental operating performance measure of a REIT.

● Core FFO is calculated as FFO excluding unrealized holding gains or losses arising during the period.

● AFFO is calculated as Core FFO, excluding lease termination income, net gain or loss on sale of securities transactions, stock based compensation expense, depreciation of corporate office tenant improvements, amortization of deferred financing costs, non-cash U.S. GAAP straight-line rent adjustments and less recurring capital expenditures. Recurring capital expenditures are defined as all capital expenditures that are recurring in nature, excluding capital expenditures related to expansions at our current locations or capital expenditures that are incurred in conjunction with obtaining a new lease or a lease renewal.

● NOI from property operations is calculated as net income attributable to common shareholders, as defined by U.S. GAAP, plus preferred dividends, general & administrative expenses, depreciation, amortization of capitalized lease costs & intangible assets and interest expense, including amortization of financing costs, unrealized holding gains or losses arising during the period, less dividend and interest income, gain on sale of securities transactions, gain on sale of real estate investments, and lease termination income. The components of NOI consist of recurring rental and reimbursement revenue, less real estate taxes and operating expenses, such as insurance, utilities, and repairs and maintenance.

● Same Property NOI is calculated as the NOI of all properties owned during the entire periods presented with the exclusion of any properties expanded during the periods presented.

● Same Property Cash NOI is calculated as the Same Property NOI adjusted to exclude the effect of non-cash U.S. GAAP straight-line rent adjustment for the properties included in the Same Property NOI calculation.

● EBITDAre, as defined by NAREIT, is net income attributable to common shareholders, as defined by U.S. GAAP, plus preferred dividends, interest expense, including amortization of financing costs, depreciation and amortization, and plus losses (minus gains) on sales of real estate investments.

● Adjusted EBITDA is calculated as EBITDAre plus net amortization of acquired above and below market lease revenue, unrealized holding gains or losses arising during the period and less gains on sale of securities transactions.

FFO, Core FFO, AFFO, NOI, Same Property NOI, Same Property Cash NOI, EBITDAre and Adjusted EBITDA, do not represent cash generated from operating activities in accordance with U.S. GAAP and are not necessarily indicative of cash available to fund cash needs, including the repayment of principal on debt and payment of dividends and distributions. FFO, Core FFO, AFFO, NOI, Same Property NOI, Same Property Cash NOI, EBITDAre and Adjusted EBITDA should not be considered as substitutes for net income applicable to common shareholders (calculated in accordance with U.S. GAAP) as a measure of results of operations or cash flows (calculated in accordance with U.S. GAAP) as a measure of liquidity. FFO, Core FFO, AFFO, NOI, Same Property NOI, Same Property Cash NOI, EBITDAre and Adjusted EBITDA, as currently calculated by us, may not be comparable to similarly titled, but variously calculated, measures of other REITs.

FIRST quarter Fiscal year 2019 supplemental information 22

FOR IMMEDIATE RELEASE	February 7, 2019
	Contact: Susan Jordan
	732-577-9996

MONMOUTH REAL ESTATE REPORTS RESULTS FOR

THE FIRST QUARTER ENDED DECEMBER 31, 2018

FREEHOLD, NJ, February 7, 2019........ Monmouth Real Estate Investment Corporation (NYSE:MNR) reported Net Loss Attributable to Common Shareholders of $(32,364,000) or $(0.36) per diluted share for the three months ended December 31, 2018 as compared to Net Income Attributable to Common Shareholders of $13,313,000 or $0.17 per diluted share for the three months ended December 31, 2017, representing a per share decrease of 311.8%. The large decrease in our net income this quarter was primarily due to the implementation of a new accounting rule requiring that unrealized gains and losses resulting from our securities investments be reflected on our income statement. During the first quarter of fiscal year 2019, we recognized $42,627,000 of unrealized losses or $(0.47) per diluted share. Prior to the adoption of the rule unrealized gains and losses were reflected as a change in our shareholders’ equity. During the first quarter of fiscal year 2018, we reported realized gains of $5,488,000 or $0.07 per diluted share, including realized gains of $5,388,000 from the sale of real estate and $100,000 from the sale of securities. Excluding all non-cash unrealized losses and realized gains, our Net Income Attributable to Common Shareholders for the three months ended December 31, 2018 is $10,263,000 or $0.11 per diluted share as compared to $7,825,000 or $0.10 per diluted share for the three months ended December 31, 2017, representing a per share increase of 10%. Core Funds from Operations (Core FFO), which excludes unrealized gains or losses from our securities portfolio, were $21,429,000 or $0.24 per diluted share for the three months ended December 31, 2018 as compared to $16,934,000 or $0.22 per diluted share for the three months ended December 31, 2017, representing an increase in Core FFO per share of 9.1%. Adjusted Funds from Operations (AFFO), which also excludes unrealized and realized gains or losses from our securities portfolio, for the three months ended December 31, 2018 were $21,022,000 or $0.23 per diluted share versus $16,472,000 or $0.22 per diluted share for the three months ended December 31, 2017, representing an increase in AFFO per share of 4.5%.

A summary of significant financial information for the three months ended December 31, 2018 and 2017 is as follows:

	Three Months Ended December 31,
	2018			2017
Rental Revenue	$	32,617,000		$	27,692,000
Reimbursement Revenue	$	6,530,000		$	5,772,000
Lease Termination Income	$	-0-		$	210,000
Net Operating Income (NOI) (1)	$	32,319,000		$	27,443,000
Total Expenses	$	19,825,000		$	16,991,000
Dividend and Interest Income	$	4,368,000		$	2,864,000
Unrealized Holding Losses Arising During the Period	$	(42,627,000	)	$	-0-
Gain on Sale of Securities Transactions	$	-0-		$	100,000
Gain on Sale of Real Estate Investments	$	-0-		$	5,388,000
Net Income (Loss)	$	(27,943,000	)	$	17,630,000
Net Income (Loss) Attributable to Common Shareholders	$	(32,364,000	)	$	13,313,000
Net Income (Loss) Attributable to Common Shareholders Per Diluted Common Share	$	(0.36	)	$	0.17
Core FFO (1)	$	21,429,000		$	16,934,000
Core FFO per Diluted Common Share (1)	$	0.24		$	0.22
AFFO (1)	$	21,022,000		$	16,472,000
AFFO per Diluted Common Share (1)	$	0.23		$	0.22
Dividends Declared per Common Share	$	0.17		$	0.17
Weighted Avg. Diluted Common Shares Outstanding		90,660,000			76,587,000

A summary of significant balance sheet information as of December 31, 2018 and September 30, 2018 is as follows:

	December 31, 2018		September 30, 2018
Net Real Estate Investments	$	1,617,888,000	$	1,512,513,000
Securities Available for Sale at Fair Value	$	145,810,000	$	154,921,000
Total Assets	$	1,829,357,000	$	1,718,378,000
Fixed Rate Mortgage Notes Payable, net of Unamortized Debt Issuance Costs	$	771,705,000	$	711,546,000
Loans Payable	$	125,815,000	$	186,609,000
Total Shareholders’ Equity	$	905,556,000	$	797,906,000

FIRST quarter Fiscal year 2019 supplemental information 23

Michael P. Landy, President and CEO, commented on the results for the first quarter of fiscal 2019,

“This is the first quarter in which we adopted the new accounting rule ASU-2016-01. This new rule effectively moves the non-cash changes in our unrealized gains/losses from our balance sheet onto our income statement. Unfortunately, this rule change can result in large quarterly swings, both up and down, in our net income. The performance of our securities portfolio has improved substantially since quarter end. We will continue to report our Core FFO and AFFO results as we always have, as these metrics back out these items, and are more indicative of our recurring performance.”

“We are pleased to report continued growth across multiple fronts. During the quarter we:

● Increased our per share Core FFO to $0.24, representing a 9.1% increase over both the prior year period as well as sequentially;

● Increased our per share AFFO to $0.23, representing a 4.5% increase over both the prior year period as well as sequentially;

● Increased our Gross Revenue by 20% over the prior year period to $43.5 million;

● Increased our Net Operating income by 18% over the prior year period to $32.3 million;

● Completed our first common stock offering since 2014, with the sale of 9.2 million shares raising net proceeds of $132.3 million;

● Acquired two new Class A built-to-suit properties comprising 474,000 square feet, for an aggregate cost of $113.1 million;

● Increased our gross leasable area (GLA) by 13% over the prior year period to 21.6 million square feet;

● Grew our pipeline to include two new build-to-suit properties containing approximately 882,000 total square feet representing an aggregate cost of $122.4 million, and both are leased for 15-years to Investment Grade tenants;

● Renewed five of twelve leases scheduled to expire in Fiscal 2019. These five leases consist of 803,000 square feet and have a substantial weighted average lease term of 8.4 years;

● Maintained a high occupancy rate, currently at 98.9%;

● Extended our weighted average lease maturity to 8.0 years from 7.9 years in the prior year period;

● Extended our weighted average debt maturity to 11.8 years from 11.5 years in the prior year period;

● Reduced our Net Debt to Adjusted EBITDA to 6.3x from 7.1x in the prior quarter;

● Raised $22.1 million (including dividend reinvestments of $4.5 million) from our Dividend Reinvestment and Stock Purchase Plan, representing a 29% participation rate; and

● Subsequent to the quarter end, completed a 154,800 square foot building expansion for a total of $9.1 million, which resulted in a new 15-year lease. This expansion increased annual rent by approximately $900,000, to $1.8 million total annual rent, with 2% annual escalations.”

Mr. Landy stated, “This quarter saw our first common stock offering since 2014, with the sale of 9.2 million shares that generated $132.3 million in net proceeds. We put a portion of these proceeds to work with the acquisition of two brand-new, Class A properties leased to FedEx Ground with a weighted average lease term of 12.8 years. These acquisitions were purchased for an aggregate cost of $113.1 million and comprise 474,000 total square feet. Subsequent to quarter end, we completed a 154,800 square foot building expansion that effectively doubled the revenue generated from this asset.”

“Our acquisition pipeline increased during the quarter. We now have agreements to acquire two new build-to-suit properties containing 882,000 total square feet, representing $122.4 million in acquisitions. Each of these properties is leased for 15 years. One property is leased to Amazon and the other property is leased to FedEx Ground. In keeping with Monmouth’s business model, these Class A assets will be situated in major industrial markets.”

FIRST quarter Fiscal year 2019 supplemental information 24

“Notwithstanding the 13% increase in our total common shares outstanding during the quarter, our Core FFO per share increased by 9.1% from the prior year quarter as well as by 9.1% sequentially and our AFFO per share increased by 4.5% from the prior year quarter as well as by 4.5% sequentially. This results in a conservative 74% AFFO dividend payout ratio. As we continue to put the proceeds from our recent equity offering to work, we anticipate continuing to generate meaningful AFFO per share growth going forward.”

“Our portfolio is currently 98.9% occupied, reflecting the mission-critical nature of our properties. Our weighted average lease maturity increased during the quarter to 8.0 years and our weighted average debt maturity increased during the quarter to 11.8 years. With approximately 80% of our rental revenue derived from Investment Grade tenants our income streams have proven to be highly dependable over the long-term. We have put together a very high-quality industrial property portfolio that has and will continue to benefit from the opportunities presented by the digital economy and the evolving global supply chain.”

“Our new annual report is now featured on our website. This report represents an excellent resource for understanding our Company and our future outlook. We strongly encourage you to read it. Please contact our Investor Relations department if you would like to receive a hard copy. We look forward to reporting continued progress throughout the year.”

Monmouth Real Estate Investment Corporation will host its First Quarter FY 2019 Financial Results Webcast and Conference Call on Friday, February 8, 2019 at 10:00 a.m. Eastern Time. Senior management will discuss the results, current market conditions and future outlook.

Our First Quarter FY 2019 financial results being released herein will be available on our website at www.mreic.reit in the Investor Relations section, under Filings and Reports.

To participate in the Webcast, select the 1Q2019 Webcast and Earnings Call “Link to Webcast” on the homepage of our website at www.mreic.reit, in the Highlights section, which is located towards the bottom of the homepage. Interested parties can also participate via conference call by calling toll free 1-877-510-5852 (domestically) or 1-412-902-4138 (internationally).

The replay of the conference call will be available at 12:00 p.m. Eastern Time on Friday, February 8, 2019. It will be available until May 1, 2019, and can be accessed by dialing toll free 1-877-344-7529 (domestically) and 1-412-317-0088 (internationally) and entering the passcode 10126909. A transcript of the call and the webcast replay will be available at our website on the Investor Relations homepage, www.mreic.reit.

Monmouth Real Estate Investment Corporation, founded in 1968, is one of the oldest public equity REITs in the world. We specialize in single tenant, net-leased industrial properties, subject to long-term leases, primarily to investment-grade tenants. Monmouth Real Estate is a fully integrated and self-managed real estate company, whose property portfolio consists of 113 properties containing a total of approximately 21.6 million rentable square feet, geographically diversified across 30 states. In addition, we own 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. Any such forward-looking statements are based on our current expectations and involve various risks and uncertainties. Although we believe the expectations reflected in any forward-looking statements are based on reasonable assumptions, we can provide no assurance those expectations will be achieved. The risks and uncertainties that could cause actual results or events to differ materially from expectations are contained in our annual report on Form 10-K and described from time to time in our other filings with the SEC. We undertake 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-U.S. GAAP Information: FFO is defined by the National Association of Real Estate Investment Trusts (“NAREIT”) as net income applicable to common shareholders, excluding gains or losses from sales of depreciable assets, plus real estate-related depreciation and amortization. FFO includes unrealized gains and losses arising during the period from our securities investments and includes gains and losses realized from sales of securities investments. We define Core FFO as FFO, excluding unrealized holding gains or losses arising during the period. We define AFFO as Core FFO, excluding stock based compensation expense, depreciation of corporate office tenant improvements, amortization of deferred financing costs, lease termination income, net gain or loss on sale of securities transactions, effect of non-cash U.S. GAAP straight-line rent adjustments and subtracting recurring capital expenditures. We define recurring capital expenditures as all capital expenditures that are recurring in nature, excluding capital expenditures related to expansions at our current locations or capital expenditures that are incurred in conjunction with obtaining a new lease or a lease renewal. We define NOI as recurring rental and reimbursement revenues less real estate taxes and other operating expenses. FFO, Core FFO and AFFO per diluted common share are defined as FFO, Core FFO and AFFO divided by weighted average diluted common shares outstanding. FFO, Core FFO and AFFO per diluted common share, as well as NOI, should be considered as supplemental measures of operating performance used by real estate investment trusts (REITs). FFO, Core FFO and AFFO per diluted common share exclude historical cost depreciation as an expense and may facilitate the comparison of REITs which have different cost basis. However, other REITs may use different methodologies to calculate FFO, Core FFO and AFFO and, accordingly, our FFO, Core FFO and AFFO may not be comparable to all other REITs. The items excluded from FFO, Core FFO and AFFO per diluted common share are significant components in understanding our financial performance.

FIRST quarter Fiscal year 2019 supplemental information 25

FFO, Core FFO and AFFO per diluted common share (A) do not represent cash flow from operations as defined by accounting principles generally accepted in the United States of America; (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, Core FFO and AFFO per diluted common share, as well as NOI, as calculated by us, may not be comparable to similarly titled measures reported by other REITs.

The following is a reconciliation of the Company’s U.S. GAAP Net Income to the Company’s FFO, Core FFO and AFFO for the three months ended December 31, 2018 and 2017:

	Three Months Ended
		12/31/2018			12/31/2017
Net Income (Loss) Attributable to Common Shareholders	$	(32,364,000	)	$	13,313,000
Plus: Depreciation Expense (excluding Corporate Office Capitalized Costs)		10,438,000			8,445,000
Plus: Amortization of Intangible Assets		500,000			344,000
Plus: Amortization of Capitalized Lease Costs		228,000			220,000
Less: Gain on Sale of Real Estate Investments		-0-			(5,388,000	)
FFO Attributable to Common Shareholders		(21,198,000	)		16,934,000
Plus: Unrealized Holding Losses Arising During the Period		42,627,000			-0-
Core FFO Attributable to Common Shareholders		21,429,000			16,934,000
Plus: Depreciation of Corporate Office Capitalized Costs		40,000			39,000
Plus: Stock Compensation Expense		129,000			131,000
Plus: Amortization of Financing Costs		317,000			294,000
Less: Gain on Sale of Securities Transactions		-0-			(101,000	)
Less: Lease Termination Income		-0-			(210,000	)
Less: Recurring Capital Expenditures		(557,000	)		(219,000	)
Less: Effect of Non-cash U.S. GAAP Straight-line Rent Adjustment		(336,000	)		(396,000	)
AFFO Attributable to Common Shareholders	$	21,022,000		$	16,472,000

The following are the Cash Flows provided (used) by Operating, Investing and Financing Activities for the three months ended December 31, 2018 and 2017:

	Three Months Ended
		12/31/2018			12/31/2017
Operating Activities	$	21,912,000		$	17,090,000
Investing Activities		(153,079,000	)		(61,963,000	)
Financing Activities		134,611,000			45,402,000

# # # # #

FIRST quarter Fiscal year 2019 supplemental information 26