Monmouth Real Estate Investment Corporation Nasdaq MNRTA
Monmouth Real Estate Investment Corporation Reports Nine-Month Earnings
FREEHOLD, N.J., Aug. 9 -- Monmouth Real Estate
Investment Corporation (Nasdaq: MNRTA) reported net income of $4,972,000 or
$.26 per share for the nine months ended June 30, 2006, as compared with
$7,242,000 or $0.41 per share for the nine months ended June 30, 2005.
A summary of significant financial information for the three and nine
months ended June 30, 2006 and 2005 is as follows:
Three Months Ended June 30,
2006 2005
Rent and Occupancy Charges $6,687,000 $6,249,000
Total Expenses $3,399,000 $2,998,000
Interest and Dividend Income $252,000 $345,000
Gain on Securities Transactions, net $118,000 $260,000
Net Income (1) $1,648,000 $3,088,000
Net Income Per Share $.08 $.17
FFO (2) $3,024,000 $4,292,000
FFO Per Share (2) $.15 $.24
Weighted Avg. Shares Outstanding 19,800,000 18,129,000
Nine Months Ended June 30,
2006 2005
Rent and Occupancy Charges $19,727,000 $18,045,000
Total Expenses $9,855,000 $8,669,000
Interest and Dividend Income $818,000 $1,136,000
Gain on Securities Transactions, net $440,000 $1,305,000
Net Income (1) $4,972,000 $7,242,000
Net Income Per Share $.26 $.41
FFO (2) $9,038,000 $10,703,000
FFO Per Share (2) $.47 $.60
Weighted Avg. Shares Outstanding 19,390,000 17,784,000
A summary of significant balance sheet information for June 30, 2006
and September 30, 2005 is as follows:
June 30, September 30,
2006 2005
Total Real Estate Investments $207,120,000 $191,744,000
Securities Available for Sale $11,158,000 $13,789,000
Total Assets $228,852,000 $217,841,000
Mortgage Notes Payable $116,372,000 $111,969,000
Loans Payable $1,169,000 $0
Total Shareholders' Equity $107,642,000 $102,560,000
Eugene W. Landy, President, stated, "The nine months ended June 30,
2006 produced a 9% increase in rental and reimbursement revenues as a
result of the three acquisitions we have done over this nine-month period
ended June 30, 2006 and the five acquisitions made in fiscal 2005.
Management is pleased with the results for the nine-month period. Last
year, we recorded significant gains on our securities portfolio and a $1.2
million gain on the dissolution of an equity investment. We have decreased
our securities portfolio and reallocated capital from our securities
portfolio into these new real property acquisitions."
Monmouth Real Estate Investment Corporation, which was organized in
1968, is a publicly owned real estate investment trust specializing in
net-leased industrial properties. The Company's equity portfolio now
consists of forty industrial properties and one shopping center located in
New Jersey, New York, Connecticut, Maryland, Michigan, Mississippi,
Missouri, Massachusetts, Iowa, Illinois, Nebraska, North Carolina, South
Carolina, Pennsylvania, Florida, Virginia, Ohio, Wisconsin, Arizona,
Georgia, Colorado and Alabama. In addition, the Company owns a portfolio of
REIT securities.
(1) The decrease in net income is due mainly to decreased gains on
securities transactions and decreased interest and dividend income during
fiscal 2006 as compared to fiscal 2005. In addition, fiscal 2005 includes a
$1.2 million gain on the dissolution of an equity investment.
(2) Non-GAAP Information: Funds from operations (FFO), is defined as
net income, excluding gains or losses from sales of depreciable assets,
plus real estate-related depreciation and amortization. FFO per share is
defined as FFO divided by weighted average shares outstanding. FFO and FFO
per share should be considered as supplemental measures of operating
performance used by real estate investment trusts (REITs). FFO and FFO per
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 share are significant components in understanding the
Company's financial performance.
FFO and FFO per 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 share, as calculated by the Company, may not be
comparable to similarly entitled measures reported by other REITs.
The Company's FFO and FFO per share for the three and nine months ended
June 30, 2006 and 2005 are calculated as follows:
Three Months Nine Months
6/30/06 6/30/05 6/30/06 6/30/05
Net Income $1,648,000 $3,088,000 $4,972,000 $7,242,000
Loss on Sale of
Investment Property 0 0 29,000 0
Depreciation Expense 1,280,000 1,190,000 3,770,000 3,431,000
Depreciation Expense
related to
Discontinued
Operations 0 14,000 10,000 30,000
Amortization of
In-Place Lease
Intangible Assets 96,000 0 257,000 0
FFO $3,024,000 $4,292,000 $9,038,000 $10,703,000
Weighted Avg.
Shares Outstanding 19,800,000 18,129,000 19,390,000 17,784,000
FFO Per Share $.15 $.24 $.47 $.60
The following are the cash flows provided (used) by operating,
investing and financing activities for the nine months ended June 30, 2006
and 2005:
2006 2005
Operating Activities $8,195,000 $8,666,000
Investing Activities (18,105,000) (18,646,000)
Financing Activities 5,661,000 15,657,000
The following is the net income per share for the three and nine months
ended June 30, 2006 and 2005:
Three Months Six Months
6/30/06 6/30/05 6/30/06 6/30/05
BASIC NET INCOME -
PER SHARE
Income from Continuing
Operations $.08 $.17 $.26 $.40
Income from Discontinued
Operations 0 0 0 .01
Net Income Per Share -
Basic $.08 $.17 $.26 $.41
DILUTED NET INCOME -
PER SHARE
Income from Continuing
Operations $.08 $.17 $.26 $.40
Income from Discontinued
Operations 0 0 0 .01
Net Income Per Share -
Diluted $.08 $.17 $.26 $.41
SOURCE Monmouth Real Estate Investment Corporation
