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	10
Capital Structure and Leverage Ratios	11
Debt Maturity	13
Securities Portfolio Historic Performance	14
Property Table by Tenant	16
Property Table by State	17
Lease Expirations	18
Recent Acquisitions	19
Property Table	20
Definitions	23
Press Release Dated May 9, 2019	24

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 23 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

(in thousands except for per share amounts)

	As of			As of
	March 31, 2019			September 30, 2018
	(unaudited)
ASSETS
Real Estate Investments:
Land	$	236,497		$	224,719
Buildings and Improvements		1,600,972			1,494,859
Total Real Estate Investments		1,837,469			1,719,578
Accumulated Depreciation		(228,092	)		(207,065	)
Real Estate Investments		1,609,377			1,512,513
Cash and Cash Equivalents		16,358			9,324
Securities Available for Sale at Fair Value		177,359			154,921
Tenant and Other Receivables		1,702			1,249
Deferred Rent Receivable		10,373			9,656
Prepaid Expenses		10,231			6,190
Intangible Assets, net of Accumulated Amortization of $14,705 and $13,700, respectively		15,471			14,590
Capitalized Lease Costs, net of Accumulated Amortization of $3,651 and $3,271, respectively		4,839			5,232
Financing Costs, net of Accumulated Amortization of $1,183 and $995, respectively		313			500
Other Assets		4,031			4,203
TOTAL ASSETS	$	1,850,054		$	1,718,378
LIABILITIES AND SHAREHOLDERS’ EQUITY
Liabilities:
Fixed Rate Mortgage Notes Payable, net of Unamortized Debt Issuance Costs	$	754,123		$	711,546
Loans Payable		129,759			186,609
Accounts Payable and Accrued Expenses		2,654			5,891
Other Liabilities		20,406			16,426
Total Liabilities		906,942			920,472
COMMITMENTS AND CONTINGENCIES
Shareholders’ Equity:
6.125% Series C Cumulative Redeemable Preferred Stock, $0.01 Par Value Per Share: 16,400 Shares Authorized as of March 31, 2019 and September 30, 2018; 11,969 and 11,488 Shares Issued and Outstanding as of March 31, 2019 and September 30, 2018, respectively		299,230			287,200
Common Stock, $0.01 Par Value Per Share: 188,040 Shares Authorized as of March 31, 2019 and September 30, 2018; 93,869 and 81,503 Shares Issued and Outstanding as of March 31, 2019 and September 30, 2018, respectively		939			815
Excess Stock, $0.01 Par Value Per Share: 200,000 Shares Authorized as of March 31, 2019 and September 30, 2018; No Shares Issued or Outstanding as of March 31, 2019 and September 30, 2018		-0-			-0-
Additional Paid-In Capital		642,943			534,635
Accumulated Other Comprehensive Loss		-0-			(24,744	)
Undistributed Income		-0-			-0-
Total Shareholders’ Equity		943,112			797,906
TOTAL LIABILITIES & SHAREHOLDERS’ EQUITY	$	1,850,054		$	1,718,378

SECOND QUARTER FISCAL YEAR 2019 SUPPLEMENTAL INFORMATION 3

Consolidated Statements of Income (Loss)

(unaudited) (in thousands)

	For The						For The
	Three Months Ended						Six Months Ended
	3/31/2019			3/31/2018			3/31/2019			3/31/2018
INCOME:
Rental Revenue	$	32,934		$	28,610		$	65,551		$	56,302
Reimbursement Revenue		6,372			5,734			12,902			11,506
Lease Termination Income		-0-			-0-			-0-			210
TOTAL INCOME		39,306			34,344			78,453			68,018
EXPENSES:
Real Estate Taxes		5,088			4,502			10,052			9,087
Operating Expenses		1,673			1,476			3,537			2,913
General & Administrative Expenses		2,252			2,218			4,069			4,165
Depreciation		10,756			8,858			21,234			17,342
Amortization of Capitalized Lease Costs and Intangible Assets		721			589			1,423			1,127
TOTAL EXPENSES		20,490			17,643			40,315			34,634
OTHER INCOME (EXPENSE):
Dividend Income		3,515			2,888			7,882			5,752
Gain on Sale of Securities Transactions		-0-			11			-0-			111
Unrealized Holding Gains (Losses) Arising During the Periods		15,568			-0-			(27,059	)		-0-
Interest Expense, including Amortization of Financing Costs		(9,598	)		(7,955	)		(18,603	)		(15,360	)
TOTAL OTHER INCOME (EXPENSE)		9,485			(5,056	)		(37,780	)		(9,497	)
INCOME FROM OPERATIONS		28,301			11,645			358			23,887
Gain on Sale of Real Estate Investments		-0-			-0-			-0-			5,388
NET INCOME		28,301			11,645			358			29,275
Less: Preferred Dividends		4,480			4,248			8,901			8,565
NET INCOME (LOSS) ATTRIBUTABLE TO COMMON SHAREHOLDERS	$	23,821		$	7,397		$	(8,543	)	$	20,710

SECOND QUARTER FISCAL YEAR 2019 SUPPLEMENTAL INFORMATION 4

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

(unaudited) (in thousands)

	For The						For The
	Three Months Ended						Six Months Ended
FFO, Core FFO, AFFO	3/31/2019			3/31/2018			3/31/2019			3/31/2018
Net Income (Loss) Attributable to Common Shareholders (1)	$	23,821		$	7,397		$	(8,543	)	$	20,710
Plus: Depreciation Expense (excluding Corporate Office Capitalized Costs)		10,589			8,819			21,026			17,263
Plus: Amortization of Intangible Assets		505			397			1,005			741
Plus: Amortization of Capitalized Lease Costs		241			217			470			437
Less: Gain on Sale of Real Estate Investments		-0-			-0-			-0-			(5,388	)
FFO Attributable to Common Shareholders (1)		35,156			16,830			13,958			33,763
Less / Plus: Unrealized Holding (Gains) Losses Arising During the Periods		(15,568	)		-0-			27,059			-0-
Core FFO Attributable to Common Shareholders		19,588			16,830			41,017			33,763
Plus: Depreciation of Corporate Office Capitalized Costs		167			39			208			79
Plus: Stock Compensation Expense		215			111			344			242
Plus: Amortization of Financing Costs		320			303			637			596
Less: Gain on Sale of Securities Transactions		-0-			(11	)		-0-			(111	)
Less: Lease Termination Income		-0-			-0-			-0-			(210	)
Less: Recurring Capital Expenditures		(630	)		(64	)		(1,187	)		(284	)
Less: Effect of non-cash U.S. GAAP Straight-line Rent Adjustment		(488	)		(361	)		(825	)		(756	)
AFFO Attributable to Common Shareholders	$	19,172		$	16,847		$	40,194		$	33,319

	For The						For The
	Three Months Ended						Six Months Ended
EBITDAre, Adjusted EBITDA	3/31/2019			3/31/2018			3/31/2019			3/31/2018
Net Income (Loss) Attributable to Common Shareholders	$	23,821		$	7,397		$	(8,543	)	$	20,710
Plus: Preferred Dividends		4,480			4,248			8,901			8,565
Plus: Interest Expense, including Amortization of Financing Costs		9,598			7,955			18,603			15,360
Plus: Depreciation and Amortization		11,477			9,447			22,658			18,470
Less: Gain on Sale of Real Estate Investments		-0-			-0-			-0-			(5,388	)
EBITDAre		49,376			29,047			41,619			57,717
Plus: Net Amortization of Acquired Above and Below Market Lease Revenue		25			25			51			51
Less / Plus: Unrealized Holding (Gains) Losses Arising During the Periods		(15,568	)		-0-			27,059			-0-
Less: Gain on Sale of Securities Transactions		-0-			(11	)		-0-			(111	)
Adjusted EBITDA	$	33,833		$	29,061		$	68,729		$	57,657

(1) Effective October 1, 2018 we adopted ASU 2016-01. This new accounting standard requires unrealized gains or losses on our securities investments to flow through our income statement. Periods shown here prior to October 1, 2018 do not include the effect of this accounting change and therefore Net Income Attributable to Common Shareholders and FFO Attributable to Common Shareholders between these periods are not comparable.

SECOND QUARTER FISCAL YEAR 2019 SUPPLEMENTAL INFORMATION 5

NOI Reconciliations

(unaudited) (in thousands)

	For The						For The
	Three Months Ended						Six Months Ended
Net Operating Income	3/31/2019			3/31/2018			3/31/2019			3/31/2018
Net Income (Loss) Attributable to Common Shareholders	$	23,821		$	7,397		$	(8,543	)	$	20,710
Plus: Preferred Dividends		4,480			4,248			8,901			8,565
Plus: General & Administrative Expenses		2,252			2,218			4,069			4,165
Plus: Depreciation		10,756			8,858			21,234			17,342
Plus: Amortization of Capitalized Lease Costs and Intangible Assets		721			589			1,423			1,127
Plus: Interest Expense, including Amortization of Financing Costs		9,598			7,955			18,603			15,360
Less/Plus: Unrealized Holding (Gains) Losses Arising During the Periods		(15,568	)		-0-			27,059			-0-
Less: Dividend Income		(3,515	)		(2,888	)		(7,882	)		(5,752	)
Less: Gain on Sale of Securities Transactions		-0-			(11	)		-0-			(111	)
Less: Gain on Sale of Real Estate Investments		-0-			-0-			-0-			(5,388	)
Less: Lease Termination Income		-0-			-0-			-0-			(210	)
Net Operating Income – NOI	$	32,545		$	28,366		$	64,864		$	55,808

	For The				For The
	Three Months Ended				Six Months Ended
Components of Net Operating Income Consists of:	3/31/2019		3/31/2018		3/31/2019		3/31/2018
Revenues:
Rental Revenue	$	32,934	$	28,610	$	65,551	$	56,302
Reimbursement Revenue		6,372		5,734		12,902		11,506
Total Rental and Reimbursement Revenue		39,306		34,344		78,453		67,808
Expenses:
Real Estate Taxes		5,088		4,502		10,052		9,087
Operating Expenses		1,673		1,476		3,537		2,913
Total Real Estate Taxes and Operating Expenses		6,761		5,978		13,589		12,000
Net Operating Income – NOI	$	32,545	$	28,366	$	64,864	$	55,808

SECOND QUARTER FISCAL YEAR 2019 SUPPLEMENTAL INFORMATION 6

Financial Highlights

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

	For The									For The
	Three Months Ended									Six Months Ended
	3/31/2019			3/31/2018			Change (%)			3/31/2019			3/31/2018			Change (%)
Weighted Average Common Shares Outstanding
Basic		92,978			77,992			19.2	%		91,728			77,175			18.9	%
Diluted		93,059			78,156			19.1	%		91,831			77,362			18.7	%
Net Income (Loss) Attributable to Common Shareholders (1)	$	23,821		$	7,397			222.0	%	$	(8,543	)	$	20,710			(141.3	)%
Basic	$	0.26		$	0.10			160.0	%	$	(0.09	)	$	0.27			(133.3	)%
Diluted		0.26			0.10			160.0	%		(0.09	)		0.27			(133.3	)%
Net Operating Income – NOI	$	32,545		$	28,366			14.7	%	$	64,864		$	55,808			16.2	%
Basic	$	0.35		$	0.36			(2.8	)%	$	0.71		$	0.72			(1.4	)%
Diluted		0.35			0.36			(2.8	)%		0.71			0.72			(1.4	)%
Funds From Operations – FFO (1)	$	35,156		$	16,830			108.9	%	$	13,958		$	33,763			(58.7	)%
Basic	$	0.38		$	0.22			72.7	%	$	0.15		$	0.44			(65.9	)%
Diluted		0.38			0.22			72.7	%		0.15			0.44			(65.9	)%
Core Funds From Operations - Core FFO	$	19,588		$	16,830			16.4	%	$	41,017		$	33,763			21.5	%
Basic	$	0.21		$	0.22			(4.5	)%	$	0.45		$	0.44			2.3	%
Diluted		0.21			0.22			(4.5	)%		0.45			0.44			2.3	%
Adjusted Funds From Operations – AFFO	$	19,172		$	16,847			13.8	%	$	40,194		$	33,319			20.6	%
Basic	$	0.21		$	0.22			(4.5	)%	$	0.44		$	0.43			2.3	%
Diluted		0.21			0.22			(4.5	)%		0.44			0.43			2.3	%
Dividends Declared per Common Share	$	0.17		$	0.17					$	0.34		$	0.34
Dividend/AFFO Payout Ratio		81.0	%		77.3	%					77.3	%		79.1	%

(1) Effective October 1, 2018 we adopted ASU 2016-01. This new accounting standard requires unrealized gains or losses on our securities investments to flow through our income statement. Periods shown here prior to October 1, 2018 do not include the effect of this accounting change and therefore Net Income Attributable to Common Shareholders and FFO Attributable to Common Shareholders between these periods are not comparable.

SECOND QUARTER FISCAL YEAR 2019 SUPPLEMENTAL INFORMATION 7

Same Property Statistics

(unaudited) (in thousands except for square feet)

	For The Three Months Ended
	3/31/2019				3/31/2018			Change			Change %
Total Square Feet / Total Properties		21,802,046 / 113				19,928,001 / 109			1,874,045			9.4	%
Occupancy Percentage at End of Period		98.9	%			99.2	%		(30) bps			(0.3	)%
Same Property Square Feet / Number of Same Properties				18,531,228 / 104
Same Property Occupancy Percentage at End of Period		98.7	%			99.6	%		(90) bps			(0.9	)%
Same Property Net Operating Income (NOI) (GAAP)	$	26,471			$	26,848		$	(377	)		(1.4	)%
Reversal of Effect of Non-cash U.S. GAAP Straight-line Rent Adjustment		(269	)			(432	)		163
Same Property Cash NOI	$	26,202			$	26,416		$	(214	)		(0.8	)%

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 1.4% decrease, amounting to $377 in Same Property NOI, consists of $69 derived from decreased NOI from occupied properties and $308 attributable to decreased NOI from vacant properties.

The 0.8% decrease, amounting to $214 in Same Property Cash NOI, consists of $308 derived from decreased NOI from vacant properties offset by a $94 increase in Cash NOI from occupied properties.

Reconciliation of Same Property NOI to Total NOI

(unaudited) (in thousands)

	For The Three Months Ended
	3/31/2019		3/31/2018		Change			Change %
Same Property NOI (GAAP)	$	26,471	$	26,848	$	(377	)		(1.4	)%
NOI of properties purchased subsequent to December 31, 2017 (two properties purchased during fiscal 2019 and five properties purchased during fiscal 2018)		5,339		694
NOI of properties expanded subsequent to December 31, 2017 (one property expanded during fiscal 2019 and one property expanded during 2018)		735		599
NOI of property sold subsequent to December 31, 2017 (two properties sold during the 3rd quarter of fiscal 2018)		-0-		225
Total NOI	$	32,545	$	28,366	$	4,179			14.7	%

SECOND QUARTER FISCAL YEAR 2019 SUPPLEMENTAL INFORMATION 8

Same Property Statistics

(unaudited) (in thousands except for square feet)

	For The Six Months Ended
	3/31/2019				3/31/2018			Change			Change %
Total Square Feet / Total Properties		21,802,046 / 113				19,928,001 / 109			1,874,045			9.4	%
Occupancy Percentage at End of Period		98.9	%			99.2	%		(30) bps			(0.3	)%
Same Property Square Feet / Number of Same Properties				17,781,723 / 101
Same Property Occupancy Percentage at End of Period		98.7	%			99.5	%		(80) bps			(0.8	)%
Same Property Net Operating Income (NOI) (GAAP)	$	50,781			$	51,347		$	(566	)		(1.1	)%
Reversal of Effect of Non-cash U.S. GAAP Straight-line Rent Adjustment		(482	)			(756	)		274
Same Property Cash NOI	$	50,299			$	50,591		$	(292	)		(0.6	)%

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 1.1% decrease, amounting to $566 in Same Property NOI, consists of $93 derived from decreased NOI from occupied properties and $473 attributable to decreased NOI from vacant properties.

The 0.6% decrease, amounting to $292 in Same Property Cash NOI, consists of $446 derived from decreased NOI from vacant properties offset by a $154 increase in Cash NOI from occupied properties.

Reconciliation of Same Property NOI to Total NOI

(unaudited) (in thousands)

	For The Six Months Ended
	3/31/2019		3/31/2018		Change			Change %
Same Property NOI (GAAP)	$	50,781	$	51,347	$	(566	)		(1.1	)%
NOI of properties purchased subsequent to September 30, 2017 (two properties purchased during fiscal 2019 and seven properties purchased during fiscal 2018)		11,841		1,867
NOI of properties expanded subsequent to September 30, 2017 (one property expanded during fiscal 2019 and two properties expanded during 2018)		2,242		2,049
NOI of property sold subsequent to September 30, 2017 (four properties sold during fiscal 2018)		-0-		545
Total NOI	$	64,864	$	55,808	$	9,056			16.2	%

SECOND QUARTER FISCAL YEAR 2019 SUPPLEMENTAL INFORMATION 9

Consolidated Statements of Cash Flows

(unaudited) (in thousands)

	For The
	Six Months Ended
	3/31/2019			3/31/2018
CASH FLOWS FROM OPERATING ACTIVITIES
Net Income	$	358		$	29,275
Noncash Items Included in Net Income:
Depreciation & Amortization		23,294			19,065
Deferred Straight Line Rent		(825	)		(756	)
Stock Compensation Expense		344			242
Unrealized Holding Losses Arising During the Periods		27,059			-0-
Gain on Sale of Securities Transactions		-0-			(111	)
Gain on Sale of Real Estate Investments		-0-			(5,388	)
Changes in:
Tenant & Other Receivables		(401	)		851
Prepaid Expenses		(4,041	)		(3,905	)
Other Assets & Capitalized Lease Costs		1,349			20
Accounts Payable, Accrued Expenses & Other Liabilities		3,511			3,545
NET CASH PROVIDED BY OPERATING ACTIVITIES		50,648			42,838
CASH FLOWS FROM INVESTING ACTIVITIES
Purchase of Real Estate & Intangible Assets		(113,406	)		(110,046	)
Capital Improvements		(9,205	)		(2,310	)
Proceeds from Sale of Real Estate Investments		-0-			10,500
Return of Deposits on Real Estate		200			450
Deposits Paid on Acquisitions of Real Estate		(1,550	)		(1,200	)
Proceeds from Sale of Securities Available for Sale		-0-			2,619
Purchase of Securities Available for Sale		(49,497	)		(61,069	)
NET CASH USED IN INVESTING ACTIVITIES		(173,458	)		(161,056	)
CASH FLOWS FROM FINANCING ACTIVITIES
Net Draws (Repayments) on Loans Payable		(56,850	)		34,250
Proceeds from Fixed Rate Mortgage Notes Payable		72,500			67,100
Principal Payments on Fixed Rate Mortgage Notes Payable		(29,929	)		(26,226	)
Financing Costs Paid on Debt		(443	)		(596	)
Proceeds from the Exercise of Stock Options		567			570
Proceeds from Underwritten Public Offering of Common Stock, net of offering costs		132,338			-0-
Proceeds from At-The-Market Preferred Equity Program, net of offering costs		11,282			30,942
Proceeds from Issuance of Common Stock in the DRIP, net of Dividend Reinvestments		32,147			42,997
Preferred Dividends Paid		(8,839	)		(8,301	)
Common Dividends Paid, net of Reinvestments		(22,929	)		(20,274	)
NET CASH PROVIDED BY FINANCING ACTIVITIES		129,844			120,462
NET INCREASE IN CASH AND CASH EQUIVALENTS		7,034			2,244
CASH AND CASH EQUIVALENTS - BEGINNING OF PERIOD		9,324			10,226
CASH AND CASH EQUIVALENTS - END OF PERIOD	$	16,358		$	12,470

SECOND QUARTER FISCAL YEAR 2019 SUPPLEMENTAL INFORMATION 10

Capital Structure and Leverage Ratios

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

	As of			As of			As of
	3/31/2019			3/31/2018			9/30/2018
Fixed Rate Mortgage Notes Payable, net of Unamortized Debt Issuance Costs	$	754,123		$	632,051		$	711,546
Loans Payable		129,759			154,342			186,609
Total Debt		883,882			786,393			898,155
6.125% Series C Cumulative Redeemable Preferred Stock		299,230			277,384			287,200
Common Stock, Paid-In-Capital & Other		643,882			472,974			510,706
Total Shareholders’ Equity		943,112			750,358			797,906
Total Book Capitalization		1,826,994			1,536,751			1,696,061
Accumulated Depreciation		228,092			191,051			207,065
Total Undepreciated Book Capitalization	$	2,055,086		$	1,727,802		$	1,903,126
Shares Outstanding		93,869			78,846			81,503
Market Price Per Share	$	13.18		$	15.04		$	16.72
Equity Market Capitalization	$	1,237,194		$	1,185,847		$	1,362,732
Total Debt		883,882			786,393			898,155
Total Preferred Stock		299,230			277,384			287,200
Total Market Capitalization	$	2,420,306		$	2,249,624		$	2,548,087
Total Debt	$	883,882		$	786,393		$	898,155
less: Cash and Cash Equivalents		16,358			12,470			9,324
Net Debt	$	867,524		$	773,923		$	888,831
less: Securities Available for Sale at Fair Value (Securities)		177,359			144,630			154,921
Net Debt Less Securities	$	690,165		$	629,293		$	733,910
Net Debt / Total Undepreciated Book Capitalization		42.2	%		44.8	%		46.7	%
Net Debt / Total Market Capitalization		35.8	%		34.4	%		34.9	%
Net Debt Plus Preferred Stock / Total Market Capitalization		48.2	%		46.7	%		46.2	%
Net Debt Less Securities / Total Undepreciated Book Capitalization		33.6	%		36.4	%		38.6	%
Net Debt Less Securities / Total Market Capitalization		28.5	%		28.0	%		28.8	%
Net Debt Less Securities Plus Preferred Stock / Total Market Capitalization		40.9	%		40.3	%		40.1	%
Weighted Average Interest Rate on Fixed Rate Debt		4.07	%		4.11	%		4.07	%
Weighted Average Term on Fixed Rate Debt		11.6 yrs.			11.5 yrs.			11.7 yrs.
Weighted Average Lease Term		8.0 yrs.			7.8 yrs.			8.1 yrs.

SECOND QUARTER FISCAL YEAR 2019 SUPPLEMENTAL INFORMATION 11

Capital Structure and Leverage Ratios

(unaudited) (in thousands)

	For the Three Months Ended						For the Six Months Ended						Fiscal Year Ended
	3/31/2019			3/31/2018			3/31/2019			3/31/2018			9/30/2018
Net Income (Loss) Attributable to Common Shareholders	$	23,821		$	7,397		$	(8,543	)	$	20,710		$	38,815
Plus: Preferred Dividends		4,480			4,248			8,901			8,565			17,190
Plus: Interest Expense, including Amortization of Financing Costs		9,598			7,955			18,603			15,360			32,350
Plus: Depreciation and Amortization		11,477			9,447			22,658			18,470			38,567
Less: Gain on Sale of Real Estate Investments		-0-			-0-			-0-			(5,388	)		(7,485	)
EBITDAre		49,376			29,047			41,619			57,717			119,437
Plus: Net Amortization of Acquired Above and Below Market Lease Revenue		25			25			51			51			103
Less/Plus: Unrealized Holding (Gains) Losses Arising During the Periods		(15,568	)		-0-			27,059			-0-			-0-
Less: Gain on Sale of Securities Transactions		-0-			(11	)		-0-			(111	)		(111	)
Adjusted EBITDA	$	33,833		$	29,061		$	68,729		$	57,657		$	119,429
Interest Expense, including Amortization of Financing Costs	$	9,598		$	7,955		$	18,603		$	15,360		$	32,350
Preferred Dividends		4,480			4,248			8,901			8,565			17,190
Total Fixed Charges	$	14,078		$	12,203		$	27,504		$	23,925		$	49,540
Interest Coverage		3.5 x			3.7 x			3.7 x			3.8 x			3.7 x
Fixed Charge Coverage		2.4 x			2.4 x			2.5 x			2.4 x			2.4 x
Net Debt	$	867,524		$	773,923		$	867,524		$	773,923		$	888,831
Net Debt Less Securities		690,165			629,293			690,165			629,293			733,910
Total Preferred Stock		299,230			277,384			299,230			277,384			287,200
Annualized Adjusted EBITDA		135,332			116,244			137,458			115,314			119,429
Net Debt / Adjusted EBITDA		6.4 x			6.7 x			6.3 x			6.7 x			7.4 x
Net Debt Less Securities / Adjusted EBITDA		5.1 x			5.4 x			5.0 x			5.5 x			6.1 x
Net Debt + Preferred Stock / Adjusted EBITDA		8.6 x			9.0 x			8.5 x			9.1 x			9.8 x
Net Debt Less Securities + Preferred Stock / Adjusted EBITDA		7.3 x			7.8 x			7.2 x			7.9 x			8.5 x

SECOND QUARTER FISCAL YEAR 2019 SUPPLEMENTAL INFORMATION 12

Debt Maturity

(unaudited) (In thousands)

					Loans							% of
Fiscal Year Ended		Mortgages			Payable				Total			Total
2019		$	33,097		$	19,759		(B)	$	52,856			5.9	%
2020			52,275			110,000		(C)		162,275			18.2	%
2021			53,925			-0-				53,925			6.0	%
2022			76,022			-0-				76,022			8.5	%
2023			54,683			-0-				54,683			6.1	%
Thereafter			492,338			-0-				492,338			55.3	%
Total as of 3/31/2019	(A)	$	762,340		$	129,759			$	892,099			100.0	%
Weighted Average Interest Rate			4.07	%		4.02	%			4.06	%
Weighted Average Term			11.6 yrs.			1.3 yrs.				10.1 yrs.

(A)	Mortgages does not include unamortized debt issuance costs of $8,217.
(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.

SECOND QUARTER FISCAL YEAR 2019 SUPPLEMENTAL INFORMATION 13

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 3/31/19		179,665,124		154,920,545		7,834,544		-0-		(27,058,929	)		(19,224,385	)		(10.70	)%
Total					$	53,407,372	$	30,818,648	$	(55,600,339	)	$	28,625,681			Avg. 12.49%

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

SECOND QUARTER FISCAL YEAR 2019 SUPPLEMENTAL INFORMATION 14

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 3/31/19		(10.70	)		8.46		(1.72	)		(1916	)		(898	)
Average		12.49			12.53		12.02			(4	)		(53	)

Source: S&P Global Market Intelligence

SECOND QUARTER FISCAL YEAR 2019 SUPPLEMENTAL INFORMATION 15

Property Table by Tenant

(unaudited)

		Property		Square		Occupied Square		% of Occupied			Annual		% of Total Ann			Rent Per		Undepreciated			Mortgage
Tenant		Count		Footage		Footage		sf			Rent		. Rent			sf Occup.		Cost			Balance
FedEx Ground Package System, Inc.			45		8,920,293		8,920,293		40.9	%	$	71,950,000		53.6	%	$	8.07	$	1,018,805,580		$	465,550,375
FedEx Corporation			15		1,095,096		1,095,096		5.0	%		6,719,000		5.0	%		6.14		95,439,676			13,329,345
FedEx Trade Networks, Inc.			1		449,900		449,900		2.1	%		1,389,000		1.0	%		3.09		14,614,986			4,636,688
Total FedEx			61		10,465,289		10,465,289		48.0	%		80,058,000		59.6	%		7.65		1,128,860,242			483,516,408
Milwaukee Electric Tool Corporation			1		861,889		861,889		4.0	%		3,054,000		2.3	%		3.54		36,914,917			20,828,088
Shaw Industries, Inc.			1		831,764		831,764		3.8	%		3,495,000		2.6	%		4.20		56,025,945			31,268,381
ULTA, Inc.			1		671,354		671,354		3.1	%		2,729,000		2.0	%		4.06		37,512,071			19,476,300
Amazon.com Services, Inc.			2		662,942		662,942		3.0	%		3,927,000		2.9	%		5.92		62,931,258			36,936,275
Jim Beam Brands Company (Beam Suntory)			1		599,840		599,840		2.8	%		2,071,000		1.5	%		3.45		28,000,000			16,161,304
International Paper Company			2		578,472		578,472		2.7	%		2,615,000		1.9	%		4.52		36,799,301			19,985,649
TreeHouse Private Brands, Inc.			1		558,600		558,600		2.6	%		2,226,000		1.7	%		3.98		26,807,852			14,939,928
B. Braun Medical Inc.			1		399,440		399,440		1.8	%		2,138,000		1.6	%		5.35		29,996,524			18,711,192
UGN, Inc.			1		387,000		387,000		1.8	%		2,036,000		1.5	%		5.26		21,548,301			6,878,650
CBOCS Distribution, Inc. (Cracker Barrel)			1		381,240		381,240		1.7	%		1,461,000		1.1	%		3.83		14,215,126			7,096,198
Best Buy Warehousing Logistics, Inc.			1		368,060		368,060		1.7	%		1,693,000		1.3	%		4.60		19,600,000			8,994,503
Coca-Cola			2		323,358		323,358		1.5	%		1,709,000		1.3	%		5.29		20,504,069			4,029,118
Autoneum North America, Inc.			1		315,560		315,560		1.4	%		1,717,000		1.3	%		5.44		21,040,395			14,081,091
Science Applications International Corporation			1		302,400		302,400		1.4	%		1,655,000		1.2	%		5.47		13,418,155			-0-
United Technologies Corporation			2		223,150		223,150		1.0	%		1,543,000		1.1	%		6.91		22,960,464			6,046,502
Bunzl USA Holdings, Inc.			2		268,778		268,778		1.2	%		1,487,000		1.1	%		5.53		18,731,674			11,877,914
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			7,249,454
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			11,810,336
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		0.8	%		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		0.7	%		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			6,325,116
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		19,964,283			10,807,079
Kuerig Dr Pepper			2		110,080		110,080		0.5	%		748,000		0.6	%		6.80		10,498,031			1,619,428
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.	(D)		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			1,899,979
Joseph T. Ryerson and Son, Inc.			1		89,052		89,052		0.4	%		513,000		0.4	%		5.76		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		3,129,208			-0-
SOFIVE, Inc.			1		60,400		60,400		0.3	%		623,000		0.5	%		10.31		5,089,323			1,495,332
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	%		112,000		0.1	%		4.25		2,273,095			-0-
Tenant Total as of 3/31/19			111		21,569,414		21,569,414		98.9	%	$	134,380,000		100.0	%	$	6.23	$	1,822,537,823	(C)	$	762,034,225
Vacant	(B)		3		232,632		-0-		0.0	%		-0-		0.0	%		-0-		14,919,804			305,514
Total as of 3/31/19			113		21,802,046		21,569,414		98.9	%	$	134,380,000		100.0	%	$	6.23	$	1,837,457,627	(C)	$	762,339,739

(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 two properties indicated in footnotes (A) and (B) and one retail property, all other properties are single-tenant.
(C)	Does not include unamortized debt issuance costs of $8,216,422.
(D)	Effective May 1, 2019, we entered into a seven-year lease agreement with a new tenant, Dakota Bodies, LLC, with annualized rent of $407,000.

SECOND QUARTER FISCAL YEAR 2019 SUPPLEMENTAL INFORMATION 16

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		10.1	%	$	15,730,000		11.8	%	$	7.11	$	226,989,124		$	92,926,663
Texas		10		1,781,967		1,781,967		8.2	%		13,777,000		10.3	%		7.73		182,294,916			75,194,684
Ohio		9		1,705,506		1,705,506		7.8	%		9,920,000		7.4	%		5.82		119,160,789			38,860,465
Georgia		6		1,639,696		1,639,696		7.5	%		10,507,000		7.8	%		6.41		166,168,458			87,672,704
Kentucky		3		1,295,940		1,295,940		5.9	%		5,142,000		3.8	%		3.97		66,111,852			37,426,349
South Carolina		6		1,273,676		1,181,900		5.8	%		8,988,000		6.7	%		7.60		127,240,038			57,228,311
Mississippi		4		1,158,889		1,158,889		5.3	%		4,496,000		3.3	%		3.88		55,638,703			28,077,542
Indiana		2		999,176		999,176		4.6	%		4,446,000		3.3	%		4.45		63,016,154			29,426,737
Illinois		9		958,045		958,045		4.4	%		6,150,000		4.6	%		6.42		82,698,574			8,263,432
North Carolina		4		939,706		939,706		4.3	%		5,674,000		4.2	%		6.04		85,789,646			41,423,393
Tennessee		3		891,777		891,777		4.1	%		3,169,000		2.4	%		3.55		34,071,400			11,732,886
Michigan		4		833,054		833,054		3.8	%		5,575,000		4.1	%		6.69		73,271,650			24,897,346
Kansas		4		813,043		813,043		3.7	%		4,656,000		3.5	%		5.73		60,943,937			28,896,734
Missouri		4		739,330		739,330		3.4	%		2,852,000		2.1	%		3.86		35,023,092			6,544,866
Oklahoma		4		614,941		614,941		2.8	%		3,943,000		2.9	%		6.41		54,939,874			28,722,151
New York		3		518,565		518,565		2.4	%		3,897,000		2.9	%		7.51		51,336,423			20,708,217
Pennsylvania		3		504,040		423,184		2.3	%		2,816,000		2.1	%		6.65		36,901,115			13,859,669
New Jersey		3		471,765		471,765		2.2	%		6,766,000		5.0	%		14.34		92,206,153			55,606,239
Alabama		2		451,595		451,595		2.1	%		2,630,000		2.0	%		5.82		39,714,135			18,579,842
Virginia		5		407,265		347,265		1.9	%		2,128,000		1.6	%		6.13		34,707,642			4,152,400
Colorado		2		295,227		295,227		1.4	%		2,441,000		1.8	%		8.27		35,683,647			16,386,750
Arizona		1		283,358		283,358		1.3	%		1,377,000		1.0	%		4.86		16,824,226			3,304,936
Wisconsin		2		238,666		238,666		1.1	%		1,295,000		1.0	%		5.43		16,342,720			2,477,547
Washington		1		210,445		210,445		1.0	%		1,962,000		1.5	%		9.32		30,274,617			17,201,474
Louisiana		1		175,315		175,315		0.8	%		1,265,000		0.9	%		7.22		18,410,000			10,782,971
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			1,985,431
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 3/31/19		113		21,802,046		21,569,414		100.0	%	$	134,380,000		100.0	%	$	6.23	$	1,837,457,627	(A)	$	762,339,739

(A) Does not include unamortized debt issuance costs of $8,216,422.

SECOND QUARTER FISCAL YEAR 2019 SUPPLEMENTAL INFORMATION 17

Lease Expirations

(unaudited)

		Property	Square		% of Total			Annual		% of Total			Rent Per sf		Lease Exp. Term in		Undepreciated			Mortgage
Fiscal Year		Count	Footage		Sf			Rent		Ann. Rent			Occup.		Years		Cost			Balance
2019	(C)	2		200,879		0.9	%	$	1,319,000		1.0	%	$	6.57		0.3	$	18,371,119		$	-0-
2020		4		320,737		1.5	%		1,750,000		1.3	%		5.46		1.3		22,748,502			-0-
2021	(A)	10		1,206,723		5.5	%		5,516,000		4.1	%		4.57		2.2		69,627,074			7,491,281
2022		7		1,138,320		5.2	%		6,463,000		4.8	%		5.68		3.0		76,109,324			24,119,058
2023	(A)	13		1,668,804		7.7	%		9,522,000		7.1	%		5.71		4.2		117,042,156			20,476,641
2024		13		1,887,034		8.7	%		11,710,000		8.7	%		6.21		5.1		135,653,822			33,146,644
2025	(A)	9		2,433,130		11.2	%		12,281,000		9.1	%		5.05		6.1		161,952,602			70,900,879
2026		7		982,226		4.5	%		7,940,000		5.9	%		8.08		7.1		105,354,338			33,776,191
2027		11		2,304,616		10.6	%		12,612,000		9.4	%		5.47		8.4		179,585,884			70,459,690
2028		11		2,571,915		11.8	%		13,902,000		10.3	%		5.41		9.0		182,266,806			68,500,456
2029		6		1,297,858		6.0	%		7,224,000		5.4	%		5.57		10.0		103,730,541			48,515,514
2030		4		873,032		4.0	%		6,962,000		5.2	%		7.97		11.0		101,404,974			54,414,880
2031		3		963,269		4.4	%		7,135,000		5.3	%		7.41		12.1		104,367,000			63,067,369
2032		7		2,071,983		9.5	%		18,480,000		13.8	%		8.92		13.1		286,034,814			177,342,454
2033		2		639,068		2.9	%		6,487,000		4.8	%		10.15		14.1		106,803,506			68,004,590
2034		2		945,600		4.3	%		4,262,000		3.2	%		4.51		14.7		48,356,153			21,818,578
Various tenants at retail shopping center		1		64,220		0.3	%		815,000		0.6	%		12.69		-0-		3,129,208			-0-
Vacant	(A)	3		232,632		1.1	%		-0-		0.0	%		-0-		-0-		14,919,804			305,514
Total as of 3/31/19		113		21,802,046		100.0	%	$	134,380,000		100.0	%	$	6.23		8.0	$	1,837,457,627	(B)	$	762,339,739

(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 one retail property, all other properties are single-tenant.
(B)	Does not include unamortized debt issuance costs of $8,216,422.
(C)	Not reflected above. One of the two properties included in the fiscal year 2019 expirations is a 96,000 square foot building lease to Holland 1916 through 6/30/19. In conjunction with terminating our lease with Holland 1916 two months early, effective May 1, 2019 we entered into a seven-year lease agreement with Dakota Bodies, LLC through April 30, 2026. Initial annual rent is $372,000, representing $3.85 per square foot, with 3.0% annual increases thereafter. This results in a straight-line annualized rent of $407,000, representing $4.21 per square foot over the life of the lease.

SECOND QUARTER FISCAL YEAR 2019 SUPPLEMENTAL INFORMATION 18

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 3/31/19					473,665	$	7,083,000	$	14.95		$	113,081,132	$	72,500,000

SECOND 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
1	Milwaukee Electric Tool Corporation	Olive Branch (Memphis, TN)	MS	2013		100.0	%		861,889	$	3,054,000	$	3.54		9.3	$	36,914,917	$	20,828,088
2	Shaw Industries, Inc.	Savannah	GA	2018		100.0	%		831,764		3,495,000		4.20		8.5		56,025,945		31,268,381
3	ULTA, Inc.	Greenwood (Indianapolis)	IN	2015		100.0	%		671,354		2,729,000		4.06		6.3		37,512,071		19,476,300
4	Jim Beam Brands Company (Beam Suntory)	Frankfort (Lexington)	KY	2015		100.0	%		599,840		2,071,000		3.45		5.8		28,000,000		16,161,304
5	TreeHouse Private Brands, Inc.	Buckner (Louisville)	KY	2014		100.0	%		558,600		2,226,000		3.98		14.6		26,807,852		14,939,928
6	FedEx Trade Networks, Inc.	Memphis	TN	2010		100.0	%		449,900		1,389,000		3.09		10.2		14,614,986		4,636,688
7	B. Braun Medical Inc.	Daytona Beach	FL	2018		100.0	%		399,440		2,138,000		5.35		9.0		29,996,524		18,711,192
8	UGN, Inc.	Monroe (Cincinnati)	OH	2015		100.0	%		387,000		2,036,000		5.37		14.9		21,548,301		6,878,650
9	Woodstream Corporation	St. Joseph	MO	2001		100.0	%		256,000		920,000		3.59		2.5		8,935,160		-0-
	Altec Industries, Inc.	St. Joseph	MO	2001		100.0	%		126,880		374,000		2.95		3.9		4,428,488		-0-
10	CBOCS Distribution, Inc. (Cracker Barrel)	Lebanon (Nashville)	TN	2011		100.0	%		381,240		1,461,000		3.83		5.3		14,215,126		7,096,198
11	FedEx Ground Package System, Inc.	Braselton (Atlanta)	GA	2018		100.0	%		373,750		3,783,000		10.12		13.9		60,227,126		38,889,291
12	Best Buy Warehousing Logistics, Inc.	Streetsboro (Cleveland)	OH	2012		100.0	%		368,060		1,693,000		4.60		2.8		19,600,000		8,994,503
13	Amazon.com Services, Inc. (Amazon.com, Inc.)	Mobile	AL	2018		100.0	%		362,942		2,025,000		5.58		9.7		33,052,316		18,322,596
14	FedEx Ground Package System, Inc.	Concord (Charlotte)	NC	2017		100.0	%		354,482		2,537,000		7.16		13.2		40,043,145		24,184,004
15	FedEx Ground Package System, Inc.	Mesquite (Dallas)	TX	2017		100.0	%		351,874		3,199,000		9.09		13.0		49,880,493		30,057,533
16	FedEx Ground Package System, Inc.	Trenton	NJ	2019		100.0	%		347,145		5,328,000		15.35		13.3		83,987,622		54,110,907
17	FedEx Ground Package System, Inc.	Walker (Grand Rapids)	MI	2017		100.0	%		343,483		2,103,000		6.12		12.8		31,654,987		18,922,224
18	FedEx Ground Package System, Inc.	Hamburg (Buffalo)	NY	2017		100.0	%		338,584		2,318,000		6.85		12.0		34,850,000		20,708,217
19	FedEx Ground Package System, Inc.	Concord (Charlotte)	NC	2016		100.0	%		330,717		2,237,000		6.76		6.3		33,044,797		17,239,389
20	FedEx Ground Package System, Inc.	Indianapolis	IN	2014		100.0	%		327,822		1,717,000		5.24		8.6		25,504,083		9,950,437
21	Autoneum North America, Inc.	Aiken (Augusta, GA)	SC	2017		100.0	%		315,560		1,717,000		5.44		13.1		21,040,395		14,081,091
22	FedEx Ground Package System, Inc.	Olathe (Kansas City)	KS	2016		100.0	%		313,763		2,204,000		7.02		12.2		31,737,000		19,363,879
23	FedEx Ground Package System, Inc.	Davenport (Orlando)	FL	2016		100.0	%		310,922		2,613,000		8.40		12.1		37,780,000		22,995,273
24	FedEx Ground Package System, Inc.	Ft. Worth (Dallas)	TX	2015		100.0	%		304,608		2,379,000		7.81		11.1		35,300,832		20,054,284
25	Science Applications International Corporation	Hanahan (Charleston)	SC	2005		100.0	%		302,400		1,655,000		5.47		4.6		13,418,155		-0-
26	Amazon.com Services, Inc. (Amazon.com, Inc.)	Oklahoma City	OK	2018		100.0	%		300,000		1,902,000		6.34		8.6		29,878,942		18,613,679
27	International Paper Company	Kenton	OH	2017		100.0	%		298,472		1,256,000		4.21		8.4		18,505,193		11,176,976
28	FedEx Ground Package System, Inc.	Jacksonville	FL	2015		100.0	%		297,579		1,998,000		6.71		10.8		30,740,202		15,663,790
29	Western Container Corp. (Coca-Cola)	Tolleson (Phoenix)	AZ	2003		100.0	%		283,358		1,377,000		4.86		8.1		16,824,226		3,304,936
30	International Paper Company	Edwardsville (Kansas City)	KS	2014		100.0	%		280,000		1,359,000		4.85		4.4		18,294,108		8,808,673
31	FedEx Ground Package System, Inc.	Charleston	SC	2018		100.0	%		265,318		2,704,000		10.19		14.3		46,576,380		29,115,299
32	NF&M International, Inc.	Monaca (Pittsburgh)	PA	1988		68.4	%		255,658		837,000		4.79		5.8		7,910,666		-0-
33	FedEx Ground Package System, Inc.	Orion	MI	2007		100.0	%		245,633		1,908,000		7.77		4.3		22,890,124		-0-
34	FedEx Ground Package System, Inc.	Homestead (Miami)	FL	2017		100.0	%		237,756		2,282,000		9.60		13.0		37,908,760		22,657,350
35	Anda Pharmaceuticals, Inc.	Olive Branch (Memphis, TN)	MS	2012		100.0	%		234,660		1,210,000		5.16		3.3		14,550,000		7,249,454
36	FedEx Ground Package System, Inc.	Colorado Springs	CO	2016		100.0	%		225,362		1,832,000		8.13		6.8		29,320,066		16,146,689
37	Mickey Thompson Performance Tires and Wheels (Cooper Tire)	Stow	OH	2017		100.0	%		219,765		1,511,000		6.88		8.4		18,934,065		11,810,336
38	Rinnai America Corporation	Griffin (Atlanta)	GA	2006		100.0	%		218,120		840,000		3.85		1.8		15,042,743		-0-
39	FedEx Ground Package System, Inc.	Ft. Myers	FL	2017		100.0	%		213,672		1,418,000		6.64		8.4		21,663,635		12,899,061
40	FedEx Ground Package System, Inc.	Burlington (Seattle/Everett)	WA	2016		100.0	%		210,445		1,962,000		9.32		11.4		30,274,617		17,201,474
41	FedEx Ground Package System, Inc.	Sauget (St. Louis, MO)	IL	2015		100.0	%		198,773		1,036,000		5.21		10.2		15,204,950		8,263,432
42	Anheuser-Busch, Inc.	Granite City (St. Louis, MO)	IL	2001		100.0	%		184,800		832,000		4.50		2.7		12,697,848		-0-
43	Carrier Enterprise, LLC (United Technologies)	Carrollton (Dallas)	TX	2010		100.0	%		184,317		1,178,000		6.39		4.8		17,860,464		6,046,502
44	FedEx Ground Package System, Inc.	Spring (Houston)	TX	2014		100.0	%		181,176		1,581,000		8.73		5.5		19,294,396		7,609,033
45	Carlisle Tire & Wheel Company	Edwardsville (Kansas City)	KS	2003		100.0	%		179,280		761,000		4.24		4.3		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		9.4		17,063,643		397,061
47	FedEx Ground Package System, Inc.	Covington (New Orleans)	LA	2016		100.0	%		175,315		1,265,000		7.22		6.3		18,410,000		10,782,971
48	FedEx Ground Package System, Inc.	Livonia (Detroit)	MI	2013		100.0	%		172,005		1,194,000		6.94		3.0		13,879,697		5,975,122
49	Home Depot USA, Inc.	Montgomery (Chicago)	IL	2004		100.0	%		171,200		1,007,000		5.88		1.3		11,303,317		-0-
50	FedEx Ground Package System, Inc.	Tampa	FL	2004		100.0	%		170,779		1,624,000		9.51		7.3		19,701,575		-0-

SECOND 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
51	FedEx Ground Package System, Inc.		Edinburg	TX	2011		100.0	%		164,207	$	1,097,000	$	6.68		7.5	$	12,039,014	$	-0-
52	FedEx Ground Package System, Inc.		Lindale (Tyler)	TX	2015		100.0	%		163,378		725,000		4.44		5.3		9,965,550		5,442,434
53	Bunzl Distribution Midcentral, Inc.		Kansas City	MO	2015		100.0	%		158,417		758,000		4.78		2.5		10,003,235		6,544,866
54	FedEx Ground Package System, Inc.		Oklahoma City	OK	2012		100.0	%		158,340		1,048,000		6.62		6.3		12,584,462		3,155,994
55	FedEx Ground Package System, Inc.		Waco	TX	2012		100.0	%		150,710		1,078,000		7.15		6.4		12,551,368		4,084,919
56	FedEx Ground Package System, Inc.		Beltsville (Washington, DC)	MD	2001		100.0	%		148,881		1,455,000		9.77		9.3		14,512,355		-0-
57	Victory Packaging, L.P.		Fayetteville	NC	1997		100.0	%		148,000		508,000		3.43		1.9		5,455,379		-0-
58	FedEx Ground Package System, Inc.		El Paso	TX	2006		100.0	%		144,149		1,345,000		9.33		4.5		12,431,192		-0-
59	FedEx Ground Package System, Inc.		Cocoa	FL	2008		100.0	%		144,138		1,112,000		7.71		5.5		14,127,449		-0-
60	FedEx Ground Package System, Inc.		Cudahy (Milwaukee)	WI	2001		100.0	%		139,564		827,000		5.93		8.3		9,772,720		-0-
61	Challenger Lifts, Inc. (Snap-On Inc.)		Louisville	KY	2016		100.0	%		137,500		845,000		6.15		7.2		11,304,000		6,325,116
62	FedEx Ground Package System, Inc.		Richfield (Cleveland)	OH	2006		100.0	%		131,152		1,493,000		11.38		5.5		16,447,178		-0-
63	FedEx Ground Package System, Inc.		Savannah	GA	2019		100.0	%		126,520		1,755,000		13.87		9.6		27,531,560		17,292,799
64	General Electric Company		Imperial (Pittsburgh)	PA	2016		100.0	%		125,860		1,328,000		10.55		6.8		19,964,283		10,807,079
65	FedEx Ground Package System, Inc.		Wheeling (Chicago)	IL	2003		100.0	%		123,000		1,272,000		10.34		8.2		18,992,949		-0-
66	FedEx Ground Package System, Inc.		Altoona	PA	2014		100.0	%		122,522		651,000		5.31		4.4		9,026,166		3,052,591
67	FedEx Corporation		Charleston	SC	2018		100.0	%		121,683		1,314,000		10.80		13.4		21,519,412		13,329,345
68	FedEx Corporation		Mechanicsville (Richmond)	VA	2001		100.0	%		112,799		541,000		4.80		4.1		7,792,395		-0-
69	FedEx Corporation		Orlando	FL	2008		100.0	%		110,638		666,000		6.02		8.7		8,774,524		-0-
70	Bunzl Distribution Oklahoma, Inc.		Oklahoma City	OK	2017		100.0	%		110,361		729,000		6.61		5.4		8,728,439		5,333,049
71	Style Crest, Inc.		Winston-Salem	NC	2002		100.0	%		106,507		392,000		3.68		2.0		7,246,325		-0-
72	FedEx Ground Package System, Inc.		Cheektowaga (Buffalo)	NY	2000		100.0	%		104,981		966,000		9.20		0.4		10,960,823		-0-
73	FedEx Ground Package System, Inc.		West Chester Twp. (Cincinnati)	OH	1999		100.0	%		103,818		548,000		5.28		4.4		5,733,686		-0-
74	FedEx Ground Package System, Inc.		Roanoke	VA	2013		100.0	%		103,402		755,000		7.30		4.1		10,200,000		4,152,400
75	Pittsburgh Glass Works, LLC		O’ Fallon (St. Louis)	MO	1994		100.0	%		102,135		447,000		4.38		2.3		4,245,913		-0-
76	FedEx Ground Package System, Inc.		Green Bay	WI	2013		100.0	%		99,102		468,000		4.72		4.2		6,570,000		2,477,547
77	Holland 1916 Inc.	(B)	Liberty (Kansas City)	MO	1998		100.0	%		95,898		353,000		3.68		0.2		7,410,296		-0-
78	FedEx Corporation		Jacksonville	FL	1999		100.0	%		95,883		535,000		5.58		10.2		6,576,729		-0-
79	FedEx Corporation		Tampa	FL	2006		100.0	%		95,662		603,000		6.30		8.7		7,865,007		-0-
80	Vacant		Hanahan (Charleston)	SC	2005		0.00	%		91,776		-0-		na		na		7,622,053		305,514
81	National Oilwell Varco, Inc.		Houston	TX	2010		100.0	%		91,295		759,000		8.31		3.5		8,163,278		1,899,979
82	FedEx Corporation		Omaha	NE	1999		100.0	%		89,115		446,000		5.00		4.6		5,944,691		-0-
83	Joseph T. Ryerson and Son, Inc.		Elgin (Chicago)	IL	2002		100.0	%		89,052		513,000		5.76		5.8		6,977,442		-0-
84	FedEx Ground Package System, Inc.		Huntsville	AL	2005		100.0	%		88,653		605,000		6.82		7.3		6,661,819		257,246
85	CHEP USA, Inc.		Roanoke	VA	2007		100.0	%		83,000		503,000		6.06		5.9		7,463,672		-0-
86	FedEx Corporation		Bedford Heights (Cleveland)	OH	2007		100.0	%		82,269		438,000		5.32		9.4		7,189,941		-0-
87	RGH Enterprises, Inc. (Cardinal Health)		Halfmoon (Albany)	NY	2012		100.0	%		75,000		613,000		8.17		2.7		5,525,600		-0-
88	FedEx Corporation		Schaumburg (Chicago)	IL	1997		100.0	%		73,500		478,000		6.50		8.0		5,177,940		-0-
89	FedEx Corporation		Romulus (Detroit)	MI	1998		100.0	%		71,933		370,000		5.14		2.2		4,846,842		-0-
90	FedEx Ground Package System, Inc.		Denver	CO	2005		100.0	%		69,865		609,000		8.72		6.6		6,363,581		240,059
91	Tampa Bay Grand Prix		Tampa	FL	2005		100.0	%		68,385		302,000		4.42		1.5		5,677,982		-0-
92	Sherwin-Williams Company		Rockford	IL	2011		100.0	%		66,387		485,000		7.31		4.8		5,551,227		-0-
93	Various Tenants at Retail Shopping Center		Somerset	NJ	1970		100.0	%		64,220		815,000		12.69		na		3,129,208		-0-
94	Kuerig Dr Pepper		Cincinnati	OH	2015		100.0	%		63,840		484,000		7.58		10.5		6,750,000		-0-
95	FedEx Corporation		Chattanooga	TN	2007		100.0	%		60,637		319,000		5.26		3.6		5,241,288		-0-
96	SOFIVE, Inc.		Carlstadt (New York, NY)	NJ	2001		100.0	%		60,400		623,000		10.31		5.8		5,089,323		1,495,332
97	FedEx Ground Package System, Inc.		Stewartville (Rochester)	MN	2013		100.0	%		60,398		372,000		6.16		4.2		5,223,944		1,985,431
98	Vacant		Richmond	VA	2004		0.00	%		60,000		-0-		na		na		4,795,874		-0-
99	FedEx Ground Package System, Inc.		Augusta	GA	2005		100.0	%		59,358		513,000		8.64		2.3		5,363,305		222,234
100	Kellogg Sales Company		Newington (Hartford)	CT	2001		100.0	%		54,812		329,000		6.00		0.9		3,494,108		-0-

SECOND QUARTER FISCAL YEAR 2019 SUPPLEMENTAL INFORMATION 21

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		5.1	$	4,452,425		$	-0-
102	FedEx Corporation	Charlottesville	VA	1999		100.0	%		48,064		329,000		6.85		8.4		4,455,701			-0-
103	FedEx Ground Package System, Inc.	Corpus Christi	TX	2012		100.0	%		46,253		436,000		9.43		2.4		4,808,329			-0-
104	Kuerig Dr Pepper	Tulsa	OK	2014		100.0	%		46,240		264,000		5.71		4.9		3,748,031			1,619,428
105	Heartland Coca-Cola Bottling Company, LLC (Coca-Cola)	Topeka	KS	2009		100.0	%		40,000		332,000		8.30		2.5		3,679,843			724,182
106	Collins Aerospace Systems (United Technologies)	Rockford	IL	2015		100.0	%		38,833		365,000		9.40		8.3		5,100,000			-0-
107	Foundation Building Materials, LLC	Urbandale (Des Moines)	IA	1994		100.0	%		36,270		176,000		4.85		8.8		2,523,644			-0-
108	FedEx Corporation	Richland (Jackson)	MS	1994		100.0	%		36,000		120,000		3.33		5.0		1,900,691			-0-
109	FedEx Corporation	Punta Gorda	FL	2007		100.0	%		34,624		284,000		8.20		8.3		4,133,510			-0-
110	FedEx Corporation	Lakeland	FL	2006		100.0	%		32,105		155,000		4.83		8.7		2,043,226			-0-
111	FedEx Corporation	Augusta	GA	2006		100.0	%		30,184		121,000		4.01		3.7		1,977,779			-0-
112	Graybar Electric Company	Ridgeland (Jackson)	MS	1993		100.0	%		26,340		112,000		4.25		1.3		2,273,095			-0-
113	Sherwin-Williams Company	Burr Ridge (Chicago)	IL	1997		100.0	%		12,500		162,000		12.96		2.6		1,692,902			-0-
	Total as of 3/31/19					98.9	%		21,802,046	$	134,380,000	$	6.23		8.0	$	1,837,457,627	(A)	$	762,339,739

(A)	Does not include unamortized debt issuance costs of $8,216,422.
(B)	Effective May 1, 2019, we entered into a seven-year lease agreement with a new tenant, Dakota Bodies, LLC, with annualized rent of $407,000.

SECOND QUARTER FISCAL YEAR 2019 SUPPLEMENTAL INFORMATION 22

Definitions

Investors and analysts following the real estate industry utilize funds from operations (“FFO”), core funds from operations (“Core FFO”), adjusted funds from operations (“AFFO”), net operating income (“NOI”), Same Property NOI, Same Property Cash NOI, and earnings before interest, taxes, depreciation and amortization for real estate, (“EBITDAre”) & (“Adjusted EBITDA”) variously defined, as supplemental performance measures. While we believe 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, we consider NOI, Same Property NOI, Same Property Cash NOI, EBITDAre, Adjusted 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 it also adjusts to exclude for the effects of acquisition costs and costs associated with the redemption of preferred stock. NOI provides a measure of rental operations, and does not factor in depreciation and amortization and non-property specific expenses such as interest expense and general and administrative expenses. EBITDAre and Adjusted 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 supplemental tool to evaluate our performance. In addition, NOI, Same Property NOI, Same Property Cash NOI, EBITDAre, Adjusted 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 attributable 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 periods 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 periods.

● 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 periods, less dividend 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 periods 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.

SECOND QUARTER FISCAL YEAR 2019 SUPPLEMENTAL INFORMATION 23

FOR IMMEDIATE RELEASE	May 9, 2019
	Contact: Susan Jordan
	732-577-9996

MONMOUTH REAL ESTATE REPORTS RESULTS FOR

THE SECOND QUARTER ENDED MARCH 31, 2019

FREEHOLD, NJ, May 9, 2019........ Monmouth Real Estate Investment Corporation (NYSE:MNR) reported Net Income Attributable to Common Shareholders of $23.8 million or $0.26 per diluted share for the three months ended March 31, 2019 as compared to Net Income Attributable to Common Shareholders of $7.4 million or $0.10 per diluted share for the three months ended March 31, 2018, representing a per share increase of 160%. The large increase 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 second quarter of fiscal year 2019, we recognized $15.6 million of unrealized gains or $0.17 per diluted share. Prior to the adoption of the rule unrealized gains and losses were reflected as a change in our shareholders’ equity. Core Funds from Operations (Core FFO), which excludes unrealized gains or losses from our securities portfolio, were $19.6 million or $0.21 per diluted share for the three months ended March 31, 2019 as compared to $16.8 million or $0.22 per diluted share for the three months ended March 31, 2018, representing a decrease in Core FFO per share of 4.5%. Adjusted Funds from Operations (AFFO), which also excludes unrealized and realized gains or losses from our securities portfolio, for the three months ended March 31, 2019 were $19.2 million or $0.21 per diluted share versus $16.8 million or $0.22 per diluted share for the three months ended March 31, 2018, representing a decrease in AFFO per share of 4.5%. These decreases in Core FFO and AFFO per share were attributable to the impact of our October equity offering of 9.2 million shares combined with additional share issuances pursuant to our DRIP/SIP program, as well as a modest increase in vacancies in our portfolio compared to a year ago.

A summary of significant financial information for the three and six months ended March 31, 2019 and 2018 (in thousands, except per share amounts) is as follows:

	Three Months Ended March 31,
	2019		2018
Rental Revenue	$	32,934	$	28,610
Reimbursement Revenue	$	6,372	$	5,734
Net Operating Income (NOI) (1)	$	32,545	$	28,366
Total Expenses	$	20,490	$	17,643
Dividend Income	$	3,515	$	2,888
Gain on Sale of Securities Transactions	$	-0-	$	11
Unrealized Holding Gains Arising During the Periods	$	15,568	$	-0-
Net Income	$	28,301	$	11,645
Net Income Attributable to Common Shareholders	$	23,821	$	7,397
Net Income Attributable to Common Shareholders Per Diluted Common Share	$	0.26	$	0.10
Core FFO (1)	$	19,588	$	16,830
Core FFO per Diluted Common Share (1)	$	0.21	$	0.22
AFFO (1)	$	19,172	$	16,847
AFFO per Diluted Common Share (1)	$	0.21	$	0.22
Dividends Declared per Common Share	$	0.17	$	0.17
Weighted Avg. Diluted Common Shares Outstanding		93,059		78,156

	Six Months Ended March 31,
	2019			2018
Rental Revenue	$	65,551		$	56,302
Reimbursement Revenue	$	12,902		$	11,506
Lease Termination Income	$	-0-		$	210
Net Operating Income (NOI) (1)	$	64,864		$	55,808
Total Expenses	$	40,315		$	34,634
Dividend Income	$	7,882		$	5,752
Gain on Sale of Securities Transactions	$	-0-		$	111
Unrealized Holding Losses Arising During the Periods	$	(27,059	)	$	-0-
Gain on Sale of Real Estate Investments	$	-0-		$	5,388
Net Income	$	358		$	29,275
Net Income (Loss) Attributable to Common Shareholders	$	(8,543	)	$	20,710
Net Income (Loss) Attributable to Common Shareholders Per Diluted Common Share	$	(0.09	)	$	0.27
Core FFO (1)	$	41,017		$	33,763
Core FFO per Diluted Common Share (1)	$	0.45		$	0.44
AFFO (1)	$	40,194		$	33,319
AFFO per Diluted Common Share (1)	$	0.44		$	0.43
Dividends Declared per Common Share	$	0.34		$	0.34
Weighted Avg. Diluted Common Shares Outstanding		91,831			77,362

SECOND QUARTER FISCAL YEAR 2019 SUPPLEMENTAL INFORMATION 24

A summary of significant balance sheet information as of March 31, 2019 and September 30, 2018 (in thousands) is as follows:

	March 31, 2019		September 30, 2018
Net Real Estate Investments	$	1,609,377	$	1,512,513
Securities Available for Sale at Fair Value	$	177,359	$	154,921
Total Assets	$	1,850,054	$	1,718,378
Fixed Rate Mortgage Notes Payable, net of Unamortized Debt Issuance Costs	$	754,123	$	711,546
Loans Payable	$	129,759	$	186,609
Total Shareholders’ Equity	$	943,112	$	797,906

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

“Our Core FFO and AFFO per share decreased by $0.01 or 4.5% from the prior year quarter and by $0.02 or 8.7% sequentially. The sequential decrease was primarily attributable to an $850,000 reduction in our dividend income and the timing impact of equity issuance over the past two quarters. The year over year decrease was primarily attributable to the timing impact of equity issuance over the past year as well as a 30-basis point reduction in our overall occupancy rate to 98.9% versus the prior year period. Going forward, we expect our recently completed building expansion as well as our substantially increased $245.9 million acquisition pipeline to positively contribute to our per share earnings in the ensuing quarters.”

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

● Increased our Gross Revenue by 15% over the prior year period to $42.8 million;

● Increased our Net Operating income by 15% over the prior year period to $32.5 million;

● Increased our gross leasable area (GLA) by 9% over the prior year period to 21.8 million square feet;

● Completed a 155,000 square foot building expansion for a total cost of $8.6 million increasing the initial year annual rent by $821,000, representing an average annualized rent of $2.1 million and extending the lease term by 15 years from the date of completion;

● Grew our acquisition pipeline to include five new build-to-suit properties containing approximately 1.9 million total square feet representing an aggregate cost of $245.9 million, with a weighted average lease term of 13.7 years;

● Renewed seven and re-leased one of the twelve leases scheduled to expire in Fiscal 2019. These eight lease renewals comprising 1.2 million square feet resulted in a 2.4% weighted-average increase in GAAP rent, and have a weighted-average lease term of 7.2 years;

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

● Extended our weighted average lease maturity to 8.0 years from 7.8 years in the prior year period;

● Extended our weighted average debt maturity to 11.6 years from 11.5 years in the prior year period;

● Maintained our weighted average interest rate on our fixed-rate debt at 4.1%;

● Reduced our Net Debt to Adjusted EBITDA to 6.4x from 6.7x in the prior quarter;

● Raised $18.5 million (including dividend reinvestments of $4.0 million) from our Dividend Reinvestment and Stock Purchase Plan, representing a 25% participation rate; and

● Raised $10.3 million in net proceeds from our Preferred Stock At-The-Market Sales Program as well as an additional $5.8 million in net proceeds subsequent to quarter end.”

“Our acquisition pipeline grew substantially during the quarter to $245.9 million currently. We now have agreements to acquire five new build-to-suit properties comprising 1.9 million total square feet. These properties have a weighted-average lease term of 13.7 years, with FedEx representing 41% of the 1.9 million square feet and Amazon representing 32%. In keeping with our business model, all of these projects are leased to investment grade tenants.”

“We have now renewed seven and re-leased one of the twelve leases scheduled to expire this fiscal year. These eight leases, comprising 1.2 million square feet, were executed at a 2.4% weighted-average increase in GAAP rents, and have a weighted-average lease term of 7.2 years. In addition, we retained our tenant, FedEx, in two of the markets with buildings that did not renew, by providing them with new large modern facilities pursuant to new 15-year lease agreements. Our overall weighted-average lease maturity increased over the prior year period to 8.0 years and our weighted-average debt maturity increased over the prior year period to 11.6 years. With approximately 80% of our rental revenue derived from investment grade tenants, we have put together a very high-quality industrial property portfolio that should continue to benefit from the opportunities presented by the digital economy and the evolving global supply chain.”

SECOND QUARTER FISCAL YEAR 2019 SUPPLEMENTAL INFORMATION 25

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

Our Second 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 2Q2019 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, May 10, 2019. It will be available until August 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 10128987. 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 21.8 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, as defined by the National Association of Real Estate Investment Trusts (NAREIT), represents net income attributable to common shareholders, as defined by accounting principles generally accepted in the United States of America (U.S. GAAP), excluding extraordinary items, as defined under 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. With the adoption of ASU 2016-01, effective October 1, 2018, FFO includes unrealized gains and losses arising during the periods from our securities investments. In addition, FFO includes gains and losses realized from sales of securities investments. NAREIT created FFO as a non-GAAP supplemental measure of REIT operating performance. We define Core Funds From Operations (Core FFO) as FFO, excluding Unrealized Holding Gains or Losses Arising During the Periods. We define Adjusted Funds From Operations (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 believe that, as widely recognized measures of performance used by other real estate investment trusts (REITs), FFO, Core FFO and AFFO may be considered by investors as supplemental measures to compare our operating performance to those of other REITs. FFO, Core FFO and AFFO exclude historical cost depreciation as an expense and may facilitate the comparison of REITs which have a 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 are significant components in understanding our financial performance FFO, Core FFO and AFFO are non-GAAP performance measures and (i) do not represent Cash Flow from Operations as defined by U.S. GAAP; (ii) should not be considered as an alternative to Net Income or Net Income Attributable to Common Shareholders as a measure of operating performance or to Cash Flows from Operating, Investing and Financing Activities; and (iii) are not an alternative to Cash Flows from Operating, Investing and Financing Activities as a measure of liquidity. FFO, Core FFO and AFFO, as calculated by us, may not be comparable to similarly titled measures reported by other REITs.

SECOND QUARTER FISCAL YEAR 2019 SUPPLEMENTAL INFORMATION 26

The following is a reconciliation of the Company’s U.S. GAAP Net Income (Loss) Attributable to Common Shareholders to the Company’s FFO, Core FFO and AFFO for the three and six months ended March 31, 2019 and 2018 (in thousands):

	Three Months Ended						Six Months Ended
	3/31/2019			3/31/2018			3/31/2019			3/31/2018
Net Income (Loss) Attributable to Common Shareholders	$	23,821		$	7,397		$	(8,543	)	$	20,710
Plus: Depreciation Expense (excluding Corporate Office Capitalized Costs)		10,589			8,819			21,026			17,263
Plus: Amortization of Intangible Assets		505			397			1,005			741
Plus: Amortization of Capitalized Lease Costs		241			217			470			437
Less: Gain on Sale of Real Estate Investments		-0-			-0-			-0-			(5,388	)
FFO Attributable to Common Shareholders		35,156			16,830			13,958			33,763
Less/Plus: Unrealized Holding (Gains) Losses Arising During the Periods		(15,568	)		-0-			27,059			-0-
Core FFO Attributable to Common Shareholders		19,588			16,830			41,017			33,763
Plus: Depreciation of Corporate Office Capitalized Costs		167			39			208			79
Plus: Stock Compensation Expense		215			111			344			242
Plus: Amortization of Financing Costs		320			303			637			596
Less: Gain on Sale of Securities Transactions		-0-			(11	)		-0-			(111	)
Less: Lease Termination Income		-0-			-0-			-0-			(210	)
Less: Recurring Capital Expenditures		(630	)		(64	)		(1,187	)		(284	)
Less: Effect of Non-cash U.S. GAAP Straight-line Rent Adjustment		(488	)		(361	)		(825	)		(756	)
AFFO Attributable to Common Shareholders	$	19,172		$	16,847		$	40,194		$	33,319

The following are the Cash Flows provided (used) by Operating, Investing and Financing Activities for the six months ended March 31, 2019 and 2018 (in thousands):

	Six Months Ended
	3/31/2019			3/31/2018
Operating Activities	$	50,648		$	42,838
Investing Activities		(173,458	)		(161,056	)
Financing Activities		129,844			120,462

# # # # #

SECOND QUARTER FISCAL YEAR 2019 SUPPLEMENTAL INFORMATION 27