Monmouth Real Estate Investment Corporation Reports Results for the Year Ended and Fourth Quarter September 30, 2012
FREEHOLD, N.J., Dec. 12, 2012 /PRNewswire/ -- Monmouth Real Estate Investment Corporation (NYSE: MNR) reported Funds from operations (FFO) of $26,120,000 or $0.66 per diluted share for the twelve months ended September 30, 2012 as compared to $22,877,000 or $0.65 per diluted share for the twelve months ended September 30, 2011. Adjusted FFO (which we define as FFO plus acquisition costs) for the full fiscal year 2012 was $26,788,000 versus $23,302,000 in 2011. On a diluted per share basis, Adjusted FFO was $0.67 per share in fiscal 2012 versus $0.66 per share in 2011. For the three months ended September 30, 2012, FFO was $4,156,000 or $0.10 per diluted share, as compared to $4,701,000 or $0.13 per diluted share for the comparable period a year ago. During our latest fiscal quarter, FFO was impacted by approximately $1,057,000 or $0.03 per diluted share of additional preferred dividends following our latest preferred stock offering and the subsequent deployment of our capital which is still ongoing.
A summary of significant financial information for the three and twelve months ended September 30, 2012 and 2011 is as follows:
| Three-Months Ended September 30 |
||||
| 2012 |
2011 |
|||
| Rental Revenue |
$ |
11,261,000 |
$ |
10,020,000 |
| Reimbursement Revenue |
$ |
1,785,000 |
$ |
1,938,000 |
| Total Expenses |
$ |
6,833,000 |
$ |
6,181,000 |
| Interest and Dividend Income |
$ |
784,000 |
$ |
871,000 |
| Gain on Securities Transactions, net |
$ |
366,000 |
$ |
147,000 |
| Income from Continuing Operations Income from Discontinued Operations |
$ $ |
2,825,000 - 0 - |
$ $ |
2,691,000 68,000 |
| Net Income Attributable to Common Shareholders |
$ |
673,000 |
$ |
1,740,000 |
| Net Income Attributable to Common Shareholders Per Common Share |
$ |
0.02 |
$ |
0.05 |
| FFO (1) |
$ |
4,156,000 |
$ |
4,701,000 |
| FFO Per Common Share (1) |
$ |
0.10 |
$ |
0.13 |
| Weighted Avg. Diluted Common Shares Outstanding |
40,703,000 |
36,555,000 |
||
| Twelve Months Ended September 30, |
||||
| 2012 |
2011 |
|||
| Rental Revenue |
$ |
43,394,000 |
$ |
40,235,000 |
| Reimbursement Revenue |
$ |
7,095,000 |
$ |
7,907,000 |
| Lease Termination Income |
$ |
3,222,000 |
$ |
- 0 - |
| Total Expenses |
$ |
26,657,000 |
$ |
24,602,000 |
| Interest and Dividend Income |
$ |
3,359,000 |
$ |
3,100,000 |
| Gain on Securities Transactions, net |
$ |
6,044,000 |
$ |
5,238,000 |
| Income from Continuing Operations Income from Discontinued Operations |
$ $ |
18,665,000 20,000 |
$ $ |
15,152,000 266,000 |
| Net Income Attributable to Common Shareholders |
$ |
13,171,000 |
$ |
11,339,000 |
| Net Income Attributable to Common Shareholders Per Common Share |
$ |
0.33 |
$ |
0.32 |
| FFO (1) |
$ |
26,120,000 |
$ |
22,877,000 |
| FFO Per Common Share (1) |
$ |
0.66 |
$ |
0.65 |
| Weighted Avg. Diluted Common Shares Outstanding |
39,820,000 |
35,132,000 |
||
A summary of significant balance sheet information as of September 30, 2012 and 2011 is as follows:
| September 30, 2012 |
September 30, 2011 |
|||
| Net Real Estate Investments |
$ |
468,967,000 |
$ |
409,024,000 |
| Securities Available for Sale |
$ |
61,685,000 |
$ |
44,265,000 |
| Total Assets |
$ |
574,508,000 |
$ |
476,987,000 |
| Mortgage Notes Payable |
$ |
237,944,000 |
$ |
211,614,000 |
| Subordinated Convertible Debentures |
$ |
8,615,000 |
$ |
8,915,000 |
| Loans Payable |
$ |
5,200,000 |
$ |
16,861,000 |
| Total Shareholders' Equity |
$ |
315,687,000 |
$ |
234,514,000 |
Eugene W. Landy, President, commented on the results of fiscal year 2012, "We continued to successfully expand our portfolio through the pursuit of selective high quality acquisitions and by opportunistically accessing the public capital markets. During 2012, the Company accomplished among the following:
- Acquired 1.0 million square feet of high quality industrial space increasing gross leasable area by 13% and income from property operations by 17%
- Re-leased over 1.5 million square feet
- Raised approximately $85 million in common and preferred equity capital
- Entered into contracts to acquire 1.8 million square feet in new Class A build-to suits
- Contracted to add approximately 200,000 square feet in building expansions."
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. During fiscal 2012, we successfully re-leased 11 of the 12 expiring leases as well as a building that was previously vacant, representing a total of 1.5 million square feet of new leases. 10 of these new leases totaling approximately 1.1 million square feet were renewals with existing tenants representing an overall 86% tenant retention rate. Our occupancy rate is currently 95%."
"In addition to the 1.0 million square feet representing $70.4 million in acquisitions in fiscal 2012, Monmouth has already added another 172,000 square feet in acquisitions since year end and has an acquisition pipeline of eight new Class A build-to-suit, industrial buildings totaling 1.8 million square feet that are currently being developed. The total purchase price for these eight properties is approximately $109.0 million."
"We made significant progress in fiscal 2012 through a combination of opportunistic capital raises, including preferred and common equity that generated approximately $85 million in total proceeds. This includes $57.5 million in preferred equity that we raised this past June. We ended the year with net debt to total market capitalization at 28% and with $24.7 million in cash and cash equivalents reflecting yet to be spent proceeds from our recent preferred stock offering. Given our sizeable acquisition pipeline and our strong financial position, we are well positioned to continue to grow the Company going into 2013."
Monmouth Real Estate Investment Corporation, a real estate investment trust (REIT) specializing in net-leased industrial properties, will host its Fourth Quarter and Fiscal Year-End 2012 Financial Results Webcast and Conference Call. Senior management will discuss quarterly results, current market conditions and future outlook on Thursday, December 13, 2012 at 10:00 a.m. Eastern Time.
Monmouth Real Estate's fourth quarter and fiscal year-end 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, December 13, 2012. It will be available until January 31, 2013, and can be accessed by dialing toll free 877-344-7529 (domestically) and 412-317-0088 (internationally) and entering the passcode 10019790. A transcript of the call and the webcast replay will be available at the company's website, www.mreic.com.
Formed in 1968, 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 is a fully integrated and self-managed real estate company, whose property portfolio consists of seventy-two industrial properties and one shopping center located in twenty-six 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. Adjusted FFO is defined as FFO plus acquisition costs. FFO per common share is defined as FFO divided by weighted average diluted common shares outstanding. FFO and Adjusted FFO per common share should be considered as supplemental measures of operating performance used by real estate investment trusts (REITs). FFO and Adjusted 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 Adjusted FFO per common share are significant components in understanding the Company's financial performance.
FFO and Adjusted 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 Adjusted 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 and Adjusted FFO for the three and twelve months ended September 30, 2012 and 2011 is calculated as follows:
| Three Months Ended |
Twelve Months Ended |
||||||
| 9/30/2012 |
9/30/2011 |
9/30/2012 |
9/30/2011 |
||||
| Net Income Attributable to Common Shareholders |
$673,000 |
$1,740,000 |
$13,171,000 |
$11,339,000 |
|||
| Depreciation Expense |
3,019,000 |
2,649,000 |
11,471,000 |
10,313,000 |
|||
| Depreciation Related to Discontinued Operations |
- 0 - |
12,000 |
- 0 - |
39,000 |
|||
| Amortization of In-Place Lease Intangible Assets |
464,000 |
300,000 |
1,478,000 |
1,186,000 |
|||
| FFO Attributable to Common Shareholders |
$4,156,000 |
$4,701,000 |
$26,120,000 |
$22,877,000 |
|||
| Acquisition Costs |
47,000 |
20,000 |
68,000 |
425,000 |
|||
| Adjusted FFO Attributable to Common Shareholders |
$4,203,000 |
$4,721,000 |
$26,788,000 |
$23,302,000 |
|||
The following are the cash flows provided (used) by operating, investing and financing activities for the twelve months ended September 30, 2012 and 2011:
| Twelve Months Ended |
|||
| 2012 |
2011 |
||
| Operating Activities |
$26,809,000 |
$22,127,000 |
|
| Investing Activities |
(80,640,000) |
(30,366,000) |
|
| Financing Activities |
72,105,000 |
7,801,000 |
|
The following is the net income per common share for the three and twelve months ended September 30, 2012 and 2011:
| Three Months Ended |
Twelve Months Ended |
|||||||
| 9/30/12 |
9/30/11 |
9/30/12 |
9/30/11 |
|||||
| BASIC INCOME – PER SHARE |
||||||||
| Income from Continuing Operations |
$0.07 |
$0.07 |
$0.47 |
$0.43 |
||||
| Income from Discontinued Operations |
- 0 - |
- 0 - |
- 0 - |
0.01 |
||||
| Net Income |
0.07 |
0.07 |
0.47 |
0.44 |
||||
| Less: Preferred Dividend |
(0.05) |
(0.02) |
(0.14) |
(0.12) |
||||
| Net Income Attributable to Common Shareholders - Basic |
$0.02 |
$0.05 |
$0.33 |
$0.32 |
||||
| DILUTED INCOME – PER SHARE
|
||||||||
| Income from Continuing Operations |
$0.07 |
$0.07 |
$0.47 |
$0.43 |
||||
| Income from Discontinued Operations |
- 0 - |
- 0 - |
- 0 - |
0.01 |
||||
| Net Income |
0.07 |
0.07 |
0.47 |
0.44 |
||||
| Less: Preferred Dividend |
(0.05) |
(0.02) |
(0.14) |
(0.12) |
||||
| Net Income Attributable to Common Shareholders - Diluted |
$0.02 |
$0.05 |
$0.33 |
$0.32 |
||||
SOURCE Monmouth Real Estate Investment Corporation
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