EX-99.1 2 ex99.htm

 

 

 
 

 

 

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 information3

 

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 information4

 

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 information5

 

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 information6

 

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 information7

 

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 information8

 

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 information9

 

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 information10

 

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 information11

 

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 information12

 

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 information13

 

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 information14

 

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 information15

 


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 information16

 

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 information17

 
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 information18

 

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 information19

 

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 information20

 

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 information21

 

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 information22

 

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 information23

 

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 information24

 

“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 information25

 

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 information26