Monmouth Real Estate Investment Corporation Reports Results For The Second Quarter Ended March 31, 2012
FREEHOLD, N.J., May 9, 2012 /PRNewswire/ -- Monmouth Real Estate Investment Corporation (NYSE: MNR) reported net income attributable to common shareholders was $7,240,000 or $0.18 per common share for the three months ended March 31, 2012 as compared to net income attributable to common shares of $2,794,000 or $0.08 per common share for the three months ended March 31, 2011. Funds from operations (FFO) were $10,392,000 or $0.26 per share for the three months ended March 31, 2012, as compared to $5,651,000 or $0.16 per share for the three months ended March 31, 2011. FFO for three months ended March 31, 2012 includes $3,222,000 or $0.08 per share in non-recurring lease termination fees. Excluding the effect of these fees, FFO for the most recent quarter was $0.18 per share. FFO was $17,842,000 or $0.46 per share for the six months ended March 31, 2012 as compared to $12,247,000 or $0.36 per share for the six months ended March 31, 2011.
A summary of significant financial information for the three and six months ended March 31, 2012 and 2011 is as follows:
| Three Months Ended |
||||
| March 31, |
||||
| 2012 |
2011 |
|||
| Rental and Reimbursement Revenue |
$ |
12,652,000 |
$ |
12,089,000 |
| Lease Termination Income |
$ |
3,222,000 |
$ |
- |
| Total Expenses |
$ |
6,909,000 |
$ |
6,367,000 |
| Interest and Dividend Income |
$ |
893,000 |
$ |
761,000 |
| Gain on Securities Transactions, net |
$ |
2,209,000 |
$ |
1,001,000 |
| Income from Continuing Operations Income from Discontinued Operations |
$ $ |
8,287,000 - |
$ $ |
3,766,000 67,000 |
| Net Income Attributable to Common Shareholders |
$ |
7,240,000 |
$ |
2,794,000 |
| Net Income Attributable to Common Shareholders Per Common Share |
$ |
0.18 |
$ |
0.08 |
| FFO (1) |
$ |
10,392,000 |
$ |
5,651,000 |
| FFO Per Common Share (1) |
$ |
0.26 |
$ |
0.16 |
| Weighted Avg. Diluted Common Shares Outstanding |
40,044,000 |
34,670,000 |
||
| Six Months Ended |
||||
| March 31, |
||||
| 2012 |
2011 |
|||
| Rental and Reimbursement Revenue |
$ |
25,447,000 |
$ |
24,126,000 |
| Lease Termination Income |
$ |
3,222,000 |
$ |
- |
| Total Expenses |
$ |
14,222,000 |
$ |
13,350,000 |
| Interest and Dividend Income |
$ |
1,842,000 |
$ |
1,487,000 |
| Gain on Securities Transactions, net |
$ |
4,998,000 |
$ |
3,809,000 |
| Income from Continuing Operations Income from Discontinued Operations |
$ $ |
13,654,000 20,000 |
$ $ |
8,519,000 128,000 |
| Net Income Attributable to Common Shareholders |
$ |
11,586,000 |
$ |
6,561,000 |
| Net Income Attributable to Common Shareholders Per Common Share |
$ |
0.30 |
$ |
0.19 |
| FFO (1) |
$ |
17,842,000 |
$ |
12,247,000 |
| FFO Per Common Share (1) |
$ |
0.46 |
$ |
0.36 |
| Weighted Avg. Diluted Common Shares Outstanding |
38,750,000 |
34,367,000 |
||
A summary of significant balance sheet information as of March 31, 2012 and September 30, 2011 is as follows:
| March 31, 2012 |
September 30, 2011 |
|||
| Net Real Estate Investments |
$ |
453,947,000 |
$ |
409,024,000 |
| Securities Available for Sale |
$ |
44,069,000 |
$ |
44,265,000 |
| Total Assets |
$ |
528,652,000 |
$ |
476,987,000 |
| Mortgage Notes Payable |
$ |
233,640,000 |
$ |
211,614,000 |
| Subordinated Convertible Debentures |
$ |
8,790,000 |
$ |
8,915,000 |
| Loans Payable |
$ |
13,700,000 |
$ |
16,861,000 |
| Total Shareholders' Equity |
$ |
265,833,000 |
$ |
234,543,000 |
Eugene W. Landy, President, commented on the results of the second quarter ended March 31, 2012, "We are pleased to report one of our strongest quarters in recent years highlighting the Company's continuing success. Our property portfolio continued to perform well and is currently 95% occupied with an average lease maturity of 5.2 years. We now have three acquisitions totaling $32 million representing 337,000 square feet under contract and scheduled to close in fiscal year 2012 and the first half of fiscal year 2013. Coupled with the $52 million in acquisitions closed thus far, fiscal 2012 will represent a year of substantial growth. Our securities portfolio also continued to perform well with $5.0 million in gains realized thus far in fiscal 2012 and an additional $4.6 million in unrealized gains at quarter end. During the quarter, we entered into an early termination agreement with one of our tenants resulting in a one-time payment to us of $3.2 million, representing an acceleration of 29 months of future rental income. At the same time, we were successful in securing a new tenant for 65% of the space for a 5 year term at comparable rent. We are very pleased with our latest results and look forward to continuing to execute upon our growth strategy of investing in net-leased industrials on long-term leases to investment grade tenants."
Monmouth Real Estate Investment Corporation, a real estate investment trust (REIT) specializing in net-leased industrial properties, will host its Second Quarter 2012 Financial Results Webcast and Conference Call. Senior management will discuss quarterly results, current market conditions and future outlook on Thursday, May 10, 2012 at 10:00 a.m. Eastern Time.
Monmouth Real Estate's second quarter financial results and supplemental information herewith will be available on the company website at www.mreic.com in the "Financial Information & 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 Thursday, May 10, 2012. It will be available until June 10, 2012, and can be accessed by dialing toll free 877-344-7529 (domestically) and 412-317-0088 (internationally) and entering the passcode 10011363. 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-nine 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 diluted 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 for the three and six months ended March 31, 2012 and 2011 is calculated as follows:
| Three Months Ended |
Six Months Ended |
||||||
| 3/31/12 |
3/31/11 |
3/31/12 |
3/31/11 |
||||
| Net Income |
8,287,000 |
3,833,000 |
13,673,000 |
8,648,000 |
|||
| Income to Noncontrolling Interest |
(27,000) |
(19,000) |
(47,000) |
(47,000) |
|||
| Preferred Dividend |
(1,020,000) |
(1,020,000) |
(2,040,000) |
(2,040,000) |
|||
| Depreciation Expense |
2,830,000 |
2,569,000 |
5,616,000 |
5,104,000 |
|||
| Amortization of In-Place Lease Intangible Assets |
322,000 |
288,000 |
640,000 |
582,000 |
|||
| FFO |
$10,392,000 |
$5,651,000 |
$17,842,000 |
$12,247,000 |
|||
The following are the cash flows provided (used) by operating, investing and financing activities for the six months ended March 31, 2012 and 2011:
| Six Months Ended |
|||
| 2012 |
2011 |
||
| Operating Activities |
$15,920,000 |
$10,697,000 |
|
| Investing Activities |
(43,439,000) |
(14,394,000) |
|
| Financing Activities |
32,698,000 |
4,316,000 |
|
The following is the net income per common share for the three and six months ended March 31, 2012 and 2011:
| Three Months Ended |
Six Months Ended |
||||||||||
| 03/31/12 |
03/31/11 |
03/31/12 |
03/31/11 |
||||||||
| BASIC INCOME – PER SHARE |
|||||||||||
| Income from Continuing Operations |
$0.21 |
$0.11 |
$0.35 |
$0.25 |
|||||||
| Income from Discontinued Operations |
(-) |
(-) |
(-) |
(-) |
|||||||
| Net Income |
$0.21 |
$0.11 |
$0.35 |
$0.25 |
|||||||
| Less: Net Income Attributable to |
|||||||||||
| Noncontrolling Interests |
(-) |
(-) |
(-) |
(-) |
|||||||
| Net Income Attributable to |
|||||||||||
| MREIC's Shareholders |
0.21 |
0.11 |
0.35 |
0.25 |
|||||||
| Less: Preferred Dividend |
(0.03) |
(0.03) |
(0.05) |
(0.06) |
|||||||
| Net Income Attributable to MREIC's Common Shareholders - Basic |
$0.18 |
$0.08 |
$0.30 |
$0.19 |
|||||||
| DILUTED INCOME – PER SHARE |
|||||||||||
| Income from Continuing Operations |
$0.21 |
$0.11 |
$0.35 |
$0.25 |
|||||||
| Income from Discontinued Operations |
(-) |
(-) |
(-) |
(-) |
|||||||
| Net Income |
$0.21 |
$0.11 |
$0.35 |
$0.25 |
|||||||
| Less: Net Income Attributable to |
|||||||||||
| Noncontrolling Interests |
(-) |
(-) |
(-) |
(-) |
|||||||
| Net Income Attributable to |
|||||||||||
| MREIC's Shareholders |
0.21 |
0.11 |
0.35 |
0.25 |
|||||||
| Less: Preferred Dividend |
(0.03) |
(0.03) |
(0.05) |
(0.06) |
|||||||
| Net Income Attributable to MREIC's Common Shareholders - Diluted |
$0.18 |
$0.08 |
$0.30 |
$0.19 |
|||||||
SOURCE Monmouth Real Estate Investment Corporation
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