Monmouth Real Estate Investment Corporation Reports 4th Quarter and Year End Financial Results
FREEHOLD, N.J., Dec. 12, 2011 /PRNewswire/ -- Monmouth Real Estate Investment Corporation (the Company) (NYSE: MNR) reported funds from operations (FFO) of $4,701,000 or $0.13 per share for the three months ended September 30, 2011, as compared to $5,389,000 or $0.16 per share for the three months ended September 30, 2010. FFO totaled $22,877,000 or $0.65 per share for the fiscal year ended September 30, 2011, as compared to $19,142,000 or $0.63 per share for the fiscal year ended September 30, 2010.
A summary of significant financial information for the three months ended September 30, 2011 and 2010 is as follows:
|
|
|
Three Months Ended September 30, |
||
|
|
|
2011 |
|
2010 |
| Rental and Reimbursement Revenue |
$ |
11,958,000 |
$ |
11,750,000 |
| Total Expenses |
$ |
6,647,000 |
$ |
6,175,000 |
| Interest and Dividend Income |
$ |
871,000 |
$ |
692,000 |
| Gain on Securities Transactions, net |
$ |
147,000 |
$ |
826,000 |
| Income from Continuing Operations |
$ |
2,715,000 |
$ |
3,341,000 |
| Income (Loss) from Discontinued Operations |
$ |
68,000 |
$ |
(248,000) |
| Net Income Applicable to Common Shareholders |
$ |
1,740,000 |
$ |
2,407,000 |
| Net Income Applicable to Common Shareholders Per Share |
$ |
.05 |
$ |
.07 |
| FFO (1) |
$ |
4,701,000 |
$ |
5,389,000 |
| FFO Per Common Share (1) |
$ |
.13 |
$ |
.16 |
| Weighted Avg. Common Shares Outstanding |
|
36,555,000 |
|
33,666,000 |
|
|
|
|
|
|
A summary of significant financial information for the fiscal years ended September 30, 2011 and 2010 is as follows:
|
|
|
Fiscal Year Ended |
||
|
|
|
2011 |
|
2010 |
| Rental and Reimbursement Revenue |
$ |
48,141,000 |
$ |
45,213,000 |
| Total Expenses |
$ |
26,372,000 |
$ |
24,157,000 |
| Interest and Dividend Income |
$ |
3,100,000 |
$ |
2,511,000 |
| Gain on Securities Transactions, net |
$ |
5,238,000 |
$ |
2,609,000 |
| Income from Continuing Operations |
$ |
15,237,000 |
$ |
11,353,000 |
| Income (Loss) from Discontinued Operations |
$ |
266,000 |
$ |
(138,000) |
| Net Income Applicable to Common Shareholders |
$ |
11,339,000 |
$ |
8,486,000 |
| Net Income Applicable to Common Shareholders Per Share |
$ |
.32 |
$ |
.28 |
| FFO (1) |
$ |
22,877,000 |
$ |
19,142,000 |
| FFO Per Common Share (1) |
$ |
.65 |
$ |
.63 |
| Weighted Avg. Common Shares Outstanding |
|
35,132,000 |
|
30,382,000 |
|
|
|
|
|
|
A summary of significant balance sheet information as of September 30, 2011 and 2010 is as follows:
|
|
|
September 30, 2011 |
|
September 30, 2010 |
| Total Real Estate Investments |
$ |
409,024,000 |
$ |
389,588,000 |
| Securities Available for Sale |
$ |
44,265,000 |
$ |
42,518,000 |
| Total Assets |
$ |
476,987,000 |
$ |
454,119,000 |
| Mortgage Notes Payable |
$ |
211,614,000 |
$ |
210,578,000 |
| Subordinated Convertible Debentures |
$ |
8,915,000 |
$ |
13,990,000 |
| Loans Payable |
$ |
16,861,000 |
$ |
9,274,000 |
| Total Shareholders' Equity |
$ |
234,543,000 |
$ |
215,512,000 |
Eugene W. Landy, President, commented on the results of fiscal year 2011, "We made significant progress in fiscal 2011 which has resulted in an excellent year for the Company. Management is very pleased with our many accomplishments over the year. To highlight a few, the Company:
- Raised a total of approximately $40 million in new equity capital.
- Acquired 561,000 square feet of high quality industrial space, representing an 8% increase in our gross leasable area.
- Renewed 100% of our leases expiring in fiscal 2011.
- Gained inclusion in the MSCI US REIT Index."
Mr. Landy stated, "Our business model of investing in net-leased industrial properties on long-term leases to investment grade tenants continued to deliver solid performance despite weaknesses in the broader economy. Our occupancy increased from 96% to 97% year over year and for the second consecutive year 100% of expiring leases were renewed."
"In addition to the $28.3 million representing 561,000 square feet in acquisitions in fiscal 2011, Monmouth has already added another 490,000 square feet in acquisitions at an aggregate cost of $30.6 million since year end. The Company also recently completed a $16.8 million equity offering in conjunction with its inclusion into the MSCI US REIT Index. Our total market capitalization now stands at approximately $645 million. The Company remains very focused on continuing to deliver positive results and we look forward to building upon the substantial growth that was achieved in fiscal 2011."
Monmouth Real Estate Investment Corporation will host its Fourth Quarter and Fiscal Year-End 2011 Financial Results Webcast and Conference Call. Senior management will discuss the results, current market conditions and future outlook on Tuesday, December 13, 2011 at 10:00 a.m. Eastern Time.
The Company's fourth quarter and fiscal year-end financial results being released herein will be available on the Company's website at www.mreic.com in the "Financial Information and Filings" section.
To participate in the Webcast, select the microphone icon at the top of the homepage on the Company's website at www.mreic.com. Interested parties can also participate via conference call by calling toll free 877-317-6789 (domestically) or 412-317-6789 (internationally).
The replay of the conference call will be available at 12:00 p.m. Eastern Time on Tuesday, December 13, 2011. It will be available until January 31, 2012, and can be accessed by dialing toll free 877-344-7529 (domestically) and 412-317-0088 (internationally) and entering the passcode 10004199. A transcript of the call and the webcast replay will be available at the Company's website, www.mreic.com.
Monmouth Real Estate Investment Corporation is a publicly-owned real estate investment trust specializing in net-leased industrial properties subject to long-term leases primarily to investment grade tenants. The Company's property portfolio consists of sixty-seven industrial properties and one shopping center located in twenty-five states. In addition, the Company owns 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 the Company's current expectations and involve various risks and uncertainties. Although the Company believes the expectations reflected in any forward-looking statements are based on reasonable assumptions, the Company 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 the Company's annual report on Form 10-K and described from time to time in the Company's other filings with the SEC. The Company undertakes 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-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 per common share is defined as FFO divided by weighted average common shares outstanding. FFO and FFO per common share should be considered as supplemental measures of operating performance used by real estate investment trusts (REITs). FFO and FFO per common share exclude historical cost depreciation as an expense and may facilitate the comparison of REITs which have different cost basis. The items excluded from FFO and FFO per common share are significant components in understanding the Company's financial performance.
FFO and FFO per common share (A) do not represent cash flow from operations as defined by generally accepted accounting principles; (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 and FFO per common share, as calculated by the Company, may not be comparable to similarly entitled measures reported by other REITs.
The Company's FFO, FFO per common share for the quarter and years ended September 30, 2011 and 2010 are calculated as follows:
|
|
Three Months Ended |
|
Year Ended |
||||
|
|
9/30/11 |
|
9/30/10 |
|
9/30/11 |
|
9/30/10 |
|
|
|
|
|
|
|
|
|
| Net Income |
$2,783,000 |
|
$3,093,000 |
|
$15,503,000 |
|
$11,215,000 |
| Income to Noncontrolling Interest |
(24,000) |
|
(56,000) |
|
(85,000) |
|
(208,000) |
| Preferred Dividend |
(1,020,000) |
|
(630,000) |
|
(4,079,000) |
|
(2,521,000) |
| Depreciation Expense |
2,649,000 |
|
2,407,000 |
|
10,313,000 |
|
9,283,000 |
| Depreciation Expense Related to Discontinued Operations |
12,000 |
|
123,000 |
|
39,000 |
|
124,000 |
| Amortization of In-Place Lease Intangible Assets |
301,000 |
|
452,000 |
|
1,186,000 |
|
1,249,000 |
| FFO |
$4,701,000 |
|
$5,389,000 |
|
$22,877,000 |
|
$19,142,000 |
The following are the cash flows provided (used) by operating, investing and financing activities for the years ended September 30, 2011 and 2010:
|
|
2011 |
|
2010 |
|
|
|
|
|
| Operating Activities |
$ 22,127,000 |
|
$ 18,996,000 |
| Investing Activities |
(30,247,000) |
|
(55,702,000) |
| Financing Activities |
7,683,000 |
|
37,440,000 |
SOURCE Monmouth Real Estate Investment Corporation
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