Monmouth Real Estate Investment Corporation Reports Results For The First Quarter Ended December 31, 2013
FREEHOLD, N.J., Feb. 5, 2014 /PRNewswire/ -- Monmouth Real Estate Investment Corporation (NYSE:MNR) reported Core Funds from Operations (Core FFO) of $6,747,000 or $0.15 per diluted share for the three months ended December 31, 2013 as compared to $7,459,000 or $0.18 per diluted share for the three months ended December 31, 2012. Excluding gains realized from the sale of securities during the quarter, Core FFO was $6,596,000 or $0.15 per diluted share for the three months ended December 31, 2013, as compared to $5,348,000 or $0.13 per diluted share for the three months ended December 31, 2012. Adjusted Funds from Operations (AFFO), which excludes gains or losses from the sale of securities, were $0.15 per diluted share for the three months ended December 31, 2013 compared to $0.13 per diluted share for December 31, 2012.
A summary of significant financial information for the three months ended December 31, 2013 and 2012 is as follows:
| Three Months Ended December 31, |
||||
| 2013 |
2012 |
|||
| Rental Revenue |
$ |
13,571,000 |
$ |
11,309,000 |
| Reimbursement Revenue |
$ |
2,090,000 |
$ |
1,518,000 |
| Net Operating Income (NOI) (1) |
$ |
13,085,000 |
$ |
11,112,000 |
| Total Expenses |
$ |
8,416,000 |
$ |
6,985,000 |
| Interest and Dividend Income |
$ |
939,000 |
$ |
1,123,000 |
| Gain on Sale of Securities Transactions, net |
$ |
151,000 |
$ |
2,111,000 |
| Income from Continuing Operations |
$ |
4,290,000 |
$ |
5,711,000 |
| Loss from Discontinued Operations |
$ |
-0- |
$ |
(4,000) |
| Net Income Attributable to Common Shareholders |
$ |
2,138,000 |
$ |
3,555,000 |
| Net Income Attributable to Common Shareholders Per Diluted Common Share |
$ |
0.05 |
$ |
0.09 |
| Core FFO (1) |
$ |
6,747,000 |
$ |
7,459,000 |
| Core FFO per Diluted Common Share (1) |
$ |
0.15 |
$ |
0.18 |
| AFFO (1) |
$ |
6,692,000 |
$ |
5,532,000 |
| AFFO per Diluted Common Share (1) |
$ |
0.15 |
$ |
0.13 |
| Weighted Avg. Diluted Common Shares Outstanding |
45,331,000 |
41,110,000 |
||
A summary of significant balance sheet information as of December 31, 2013 and September 30, 2013 is as follows:
| December 31, |
September 30, |
|||
| Net Real Estate Investments |
$ |
608,955,000 |
$ |
536,799,000 |
| Securities Available for Sale at Fair Value |
$ |
53,596,000 |
$ |
45,452,000 |
| Total Assets |
$ |
697,862,000 |
$ |
617,241,000 |
| Mortgage Notes Payable |
$ |
292,254,000 |
$ |
250,093,000 |
| Loans Payable |
$ |
51,278,000 |
$ |
22,200,000 |
| Total Shareholders' Equity |
$ |
343,768,000 |
$ |
335,915,000 |
Michael P. Landy, President and CEO, commented on the results for the first quarter of fiscal 2014:
"This was a very productive quarter for Monmouth and represents an excellent start to fiscal 2014. We are pleased to report continued improvement in our recurring cash flow driven by our successful acquisition program. During the quarter we acquired five new built-to-suit properties, all net-leased to investment grade tenants. These acquisitions contain a total of 1.1 million square feet, and were purchased at an aggregate cost of $73.9 million. These five single-tenant Class A industrial properties are leased to: The American Bottling Company (a division of Dr Pepper Snapple Group), Ralcorp (a division of ConAgra Foods), International Paper Company, and FedEx Ground. The lease terms range from 10 to 20 years with a weighted average term of 15.2 years. These acquisitions represent a 12% increase in our gross leasable area."
"At quarter end our property portfolio was 96.4% occupied, representing a 40 basis point increase over the prior quarter. We are pleased to report that we have entered into separate agreements to purchase five new Class A build-to-suit industrial buildings, representing approximately 1.6 million square feet, for a total purchase price of approximately $113.5 million. In keeping with our business model, leases are 10 years or longer and are all net-leased to investment grade tenants. These properties are located in Indiana, Illinois, Kentucky, and Texas. Subject to satisfactory due diligence, we anticipate closing these transactions upon completion and occupancy, which is scheduled for the second half of fiscal 2014 and the first half of fiscal 2015."
Monmouth Real Estate Investment Corporation will host its First Quarter 2014 Financial Results Webcast and Conference Call. Senior management will discuss the results, current market conditions and future outlook on Thursday, February 6, 2014 at 10:00 a.m. Eastern Time.
The Company's first quarter 2014 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 888-317-6016 (domestically) or 412-317-6016 (internationally).
The replay of the conference call will be available at 12:00 p.m. Eastern Time on Thursday, February 6, 2014. It will be available until April 30, 2014, and can be accessed by dialing toll free 877-344-7529 (domestically) and 412-317-0088 (internationally) and entering the passcode 10038674. 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, founded in 1968 and one of the oldest public equity REITs in the U.S., specializes in net-leased industrial properties subject to long-term leases primarily to investment grade tenants. The Company is a fully integrated and self-managed real estate company, whose property portfolio consists of eighty industrial properties and one shopping center located in twenty-seven states, containing a total of approximately 10.7 million rentable square feet. 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-US 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. We define Core FFO as FFO plus acquisition costs. We define AFFO as Core FFO excluding gains or losses on securities transactions, stock based compensation expense, amortization of deferred financing and deferred leasing costs, recurring capital expenditures and straight-line rent adjustments. We define NOI as recurring rental and reimbursement revenues less real estate 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. The items excluded from FFO, Core FFO and AFFO per diluted common share are significant components in understanding the Company's financial performance.
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 the Company, may not be comparable to similarly titled measures reported by other REITs.
The Company's FFO and Core FFO for the three months ended December 31, 2013 and 2012 are calculated as follows:
| Three Months Ended |
||||||
| 12/31/2013 |
12/31/2012 |
|||||
| Net Income Attributable to Common Shareholders |
$2,138,000 |
$3,555,000 |
||||
| Depreciation Expense (including Discontinued Operations) |
3,813,000 |
3,134,000 |
||||
| Amortization of Intangible Assets |
333,000 |
384,000 |
||||
| FFO Attributable to Common Shareholders |
6,284,000 |
7,073,000 |
||||
| Acquisition Costs |
463,000 |
386,000 |
||||
| Core FFO Attributable to Common Shareholders |
$6,747,000 |
$7,459,000 |
||||
The Company's Core FFO, excluding the net Gain on Securities Transactions for the three months ended December 31, 2013 and 2012 are calculated as follows:
| Three Months Ended |
||||
| 12/31/2013 |
12/31/2012 |
|||
| Core FFO Attributable to Common Shareholders |
$6,747,000 |
$7,459,000 |
||
| Less: Gain on Securities Transactions, net |
151,000 |
2,111,000 |
||
| Core FFO, excluding net Gain on Sale of Securities Transactions Attributable to Common Shareholders |
$6,596,000 |
$5,348,000 |
||
The following are the Cash Flows provided (used) by Operating, Investing and Financing Activities for the three months ended December 31, 2013 and 2012:
| Three Months Ended |
|||
| 12/31/2013 |
12/31/2012 |
||
| Operating Activities |
$7,394,000 |
$4,992,000 |
|
| Investing Activities |
(87,173,000) |
(49,688,000) |
|
| Financing Activities |
75,827,000 |
30,329,000 |
|
SOURCE Monmouth Real Estate Investment Corporation
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