Monmouth Real Estate Investment Corporation A Public REIT Since 1968 April 2019 Investor Presentation NYSE: MNR
Monmouth Real Estate Investment Corporation
A Public REIT Since 1968
April 2019Investor Presentation
NYSE: MNR
This presentation may contain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, asamended, Section 21E of the Securities Exchange Act of 1934, as amended. Forward-looking statements provide Monmouth RealEstate Investment Corporation’s current expectations or forecasts of future events. Forward-looking statements include statementsabout Monmouth’s expectations, beliefs, intentions, plans, objectives, goals, strategies, future events, performance and underlyingassumptions and other statements that are not historical facts. You can identify forward-looking statements by their use offorward-looking words, such as “may,” “will,” “anticipate,” “expect,” “believe,” “intend,” “plan,” “should,” “seek,” or comparableterms, or the negative use of those words, but the absence of these words does not necessarily mean that a statement is notforward-looking. The forward-looking statements are based on Monmouth’s beliefs, assumptions and expectations of its futureperformance, taking into account all information currently available to it. Forward-looking statements are not predictions of futureevents. These beliefs, assumptions and expectations can change as a result of many possible events or factors, not all of which areknown to Monmouth. Some of these factors are described under the headings “Risk Factors” and “Management’s Discussion andAnalysis of Financial Condition and Results of Operations” as included in Monmouth’s Annual Report on Form 10-K for the fiscal yearended September 30, 2018, its Quarterly Reports on Form 10-Q for the quarterly periods ended December 31, 2018, June 30 2018,and March 31, 2018, and its other periodic reports filed with the Securities and Exchange Commission, which are accessible on SEC’sElectronic Data Gathering, Analysis and Retrieval website, or “EDGAR” at www.sec.gov. These factors should not be construed asexhaustive and should be read in conjunction with other cautionary statements that are included in this presentation and inMonmouth’s SEC filings. These and other risks, uncertainties and factors could cause Monmouth’s actual results to differ materiallyfrom those included in any forward-looking statements it makes. Any forward-looking statement speaks only as of the date onwhich it is made. New risks and uncertainties arise over time, and it is not possible for Monmouth to predict those events or how theymay affect it. Except as required by law, Monmouth is not obligated to, and does not intend to, update or revise any forward-lookingstatements, whether as a result of new information, future events or otherwise. You should not place undue reliance on theseforward-looking statements, as events described or implied in such statements may not occur.
This presentation may include references to “FFO”, “Core FFO” and “AFFO”, which are non-GAAP financial measures. Areconciliation of “FFO”, “Core FFO” and “AFFO” to the most comparable GAAP financial measures is included in our most recentAnnual Report on Form 10-Q and/or our Supplemental Information package as of December 31, 2018, furnished to shareholders onForm 8-K, and is available on our website at www.mreic.reit.
2
Select Properties
Kansas City MSA Lexington MSA
Phoenix MSA
3
Indianapolis MSA Oklahoma City MSA
Company Overview
Memphis MSA
Indianapolis MSA
Single tenant, net-leased Industrial REIT specializing in well-located, modern properties subject to long-term leases primarily to investment grade tenants or their subsidiaries
Property portfolio contains 21.8 million square feet, consisting of 113 properties with 98.9% occupancy
Geographically diversified portfolio across 30 states with a focus on major seaports, major intermodal ports, and major airports
Quality roster of investment grade tenants Approximately 80% of rental revenue from investment grade
tenants or their subsidiaries, including Amazon, Anheuser- Busch, Beam Suntory, Coca-Cola, FedEx, Home Depot, International Paper, National Oilwell, Shaw Industries, Sherwin-Williams, Siemens, United Technologies and other high-quality companies
Strong recent growth Monmouth successfully grew GLA by approximately 100% during
the past five years In fiscal 2018, closed on seven properties with approximately 2.7
million square feet for $282.3 million Thus far in fiscal 2019, closed on two properties totaling
approximately 474,000 square feet for $113.1 million Current acquisition pipeline includes four properties containing
approximately 1.4 million square feet with a total purchase price of $172.2 million
• All four properties are leased to investment grade tenants• 20% of the 1.4 million square feet is leased to FedEx
Conservative capital structure 38.0% Net Debt to Total Market Capitalization 6.3x Net Debt/Adjusted EBITDA 2.6x Fixed Charge Coverage 11.8 years Weighted Average Debt Maturity
Source: MNR 10-Q and subsequent press releases4
Portfolio Overview 113 properties geographically diversified across 30 states, totaling
approximately 21.8 million square feet of GLA Highest occupancy rate in the Industrial REIT sector at 98.9% Currently in our fourth consecutive year of above 98% occupancy Most modern industrial property portfolio
Youngest weighted average building age in the Industrial REIT sector at 8.8 years
Average building size is approximately 193,000 square feet Weighted average lease maturity is 8.0 years Weighted average rent per square foot is $6.23 Simple business model
No off-balance sheet joint ventures No in-house development division No significant non-income producing land
96.0% 95.9%
97.7%
99.6% 99.3%99.6%
98.9%
90.0%91.0%92.0%93.0%94.0%95.0%96.0%97.0%98.0%99.0%
100.0%
FY 2013 FY 2014 FY 2015 FY 2016 FY 2017 FY 2018 Current
Occupancy
100.0%
86.0%93.0%
53.0%
100.0% 100.0%92.0%
69.0%
0.0%10.0%20.0%30.0%40.0%50.0%60.0%70.0%80.0%90.0%
100.0%
FY 2011 FY 2012 FY 2013 FY 2014* FY 2015 FY 2016 FY 2017 FY 2018**
Tenant Retention
5
Charlotte MSA
Consistent Results
* Only 438,000 square feet, representing 4% of total GLA, came due in fiscal 2014. 60,400 sf of the 208,400 sf that did not renew was re-tenanted.** Three buildings containing 184,000 total square feet, or 12% of the expiring square footage were sold and one building containing 218,000 square feet, or 14% of the expiring square footage was re-tenanted.Source: MNR 10-Q and subsequent press releases
Portfolio Growth
6
9.6 11.2
13.9
16.0
18.8
21.222.8
6.0 8.0
10.0 12.0 14.0 16.0 18.0 20.0 22.0
FY 2013 FY 2014 FY 2015 FY 2016 FY 2017 FY 2018 FY 2019E
Tota
l Squ
are
Feet
(in
Mill
ions
)
Total GLA
Total Real Estate Assets
$0.628$0.744
$0.941
$1.158
$1.432
$1.720
$1.944
$0.4$0.6$0.8$1.0$1.2$1.4$1.6$1.8$2.0
FY 2013 FY 2014 FY 2015 FY 2016 FY 2017 FY 2018 FY 2019E
Tota
l R
eal E
stat
e A
sset
s ($
in B
illio
ns)
Source: MNR 10-Q and subsequent press releases
Capital Structure
$0.0
$0.5
$1.0
$1.5
$2.0
$2.5
$3.0
FY 2014 FY 2015 FY 2016 FY 2017 FY 2018 Q1 2019
Tota
l Mar
ket C
apita
lizat
ion
($ in
Bill
ions
)
Common Equity Preferred Equity Debt
7Source: MNR 10-Q and subsequent press releases
Financial Highlights
Source: MNR 10-Q and subsequent press releases
Gross Revenue
Adjusted Funds from Operations per Share
$10$30$50$70$90
$110$130$150$170
2014 2015 2016 2017 2018 Q1 2018 Q1 2019
+ 19%+ 27%
+ 19%
$0.00$0.10$0.20$0.30$0.40$0.50$0.60$0.70$0.80$0.90
2014 2015 2016 2017 2018 Q1 2018 Q1 2019
+ 5%
8
$ in
Mill
ions
+ 23%
+ 9%
+ 10%
+ 14%
+ 20%
Gross Revenue has grown at an average annual rate of 22% over the past five years
AFFO per share has grown at an average annual rate of 14% over the past five years
+ 23%
Ecommerce Trends and MNR’s Portfolio
Source: U.S. Census Bureau & eMarketer
The entire retail industry continues to shift its focus from traditional brick and mortar stores to omni-channel platforms. Thishas led to significant demand for large, modern industrial distribution centers
U.S. ecommerce sales are expected to increase to over $605 billion in 2019, representing 15% increase from 2018 Excluding food, fuel, and auto, ecommerce represents approximately 16% of total U.S. retail sales Monmouth was early in anticipating consumer spending’s shift from traditional stores to internet sales Today, Monmouth’s vast FedEx holdings represent an integral part of the ecommerce ecosystem
ECommerce Sales
$-
$100
$200
$300
$400
$500
$600
$700
2011 2012 2013 2014 2015 2016 2017 2018 2019E
$ in
Bill
ions
CAGR: 16.0%
9
Global Retail Sales
0%
1%
2%
3%
4%
5%
6%
7%
8%
9%
0
5
10
15
20
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
2016
2017
2018
E
Online Sales (LHS)
In-Store Sales (LHS)
% Online (RHS)
$ in
Tril
lions
Source: Goldman Sachs
Global consumer habits continue to change resulting in ever greater market share taking place online Global ecommerce sales are expected to rise to $2.4 trillion in 2018
10
11
Monmouth’s Property Portfolio with U.S. Population Density and U.S. Railroads
Source: S&P Global Market Intelligence
Strategic Locations
Population Density (#/sq. mi.)1.74 – 37.50
37.50 – 69.8069.80 – 112.00
112.00 – 203.00
203.00 – 2,781.44 U.S Railroads
MREIC Current Properties
Source: K.C. Conway, Director of Research, Chief Economist, Alabama Center for Real Estate12
Q. What is it about the “Golden Triangle” that makes it tops in GDP, Logistics & Supply-Chain?
A. Best “Freightways!”
MREIC’s Portfolio:87 of 113 properties
are located within the“Golden Triangle”
The Golden Mfg & Logistics Triangle:SE (#1 @ 22%) + SW + Great lakes =
47% US GDP
The “Golden Triangle” – It’s “All about Logistics!”Remaking the Supply-Chain – A GREAT story for Mid-Central & SE U.S.
The GDP Golden Triangle
Portfolio Markets & Panama Canal Expansion
Source: MNR 10-Q, subsequent press releases, Parsons Brinckerhoff Panama Canal Expansion Study, June 2012; Panama Canal Authority, Canal Expansion Programs – Components Report April 2012, Washington Post: “Modernization of the Panama Canal”; January 2013
Monmouth’s acquisition pipeline currently comprises four new build-to-suit industrial properties containing approximately 1.4 million square feet, of which all are leased to investment grade tenants or their subsidiaries, with an aggregate purchase price of $172.2 million
Over 70% of the U.S. population lives east of the Mississippi River Following nine years of construction costing $5.4 billion, the Panama Canal expansion project opened on June 26, 2016 North American ports have been spending billions of dollars in order to accommodate these larger ships
These ships have more than twice the cargo capacity of the older ships The expanded Panama Canal allows larger vessels an approximate 29 day shorter transit time from the Atlantic to the Pacific oceans Container traffic has been rapidly shifting to the East Coast ports
13
Eastern Coastal
East Coast Inland
Gulf coast & Mississippi valley
Non-impacted marketsExisting Properties
Acquisitions Under Contract
Source: K.C. Conway, Director of Research, Chief Economist, Alabama Center for Real Estate14
https://www.logisticsmgmt.com/article/u.s._ports_update_part_1_expanded_panama_canal_changes_the_balance
According to its latest throughput figures, the Panama Canal transited a total of 13,548 vessels during its fiscal year 2017, representing a 3.3% increase compared to totals the year before. Thanks to the larger Neopanamax vessels now able to transit the expanded Canal, the growth in traffic translated into a 22.2% increase in total annual tonnage from 2016, and helped the Panama Canal surpass the already ambitious cargo projection of reaching 399 million tons.“These record figures reflect not only the industry’s confidence in the expanded Canal, but also illustrate our continued ability to transform the global economy and revitalize the maritime industry,” says Jorge Quijano, Panama Canal administrator.
Following the close of its September 30, 2017 fiscal year, Panama canal authorities announced that the entrepot welcomed a record 403.8 million tons – the largest amount of annual volume ever transited in its 103-year history. Industry analysts say the impact on U.S. ocean cargo gateways will soon become evident.
The Panama Canal currently serves 29 major liner services, including 15 Neopanamax liner services, primarily on the U.S. East Coast to Asia trade route. Chris Rogers, an analyst with the global trade consultancy Panjiva, notes that the diversion of Asian-inbound traffic from U.S. West Coast ports to those on the East Coast “took a step forward” with Panama Canal expansion.Data shows shipments to Southeast ports increased by 26.9 % over FY 2016, while those to California increased by a more modest 7.7 %(Source: Chris Rogers with Panjiva).
Expanded Panama Canal Changes the Balance
Source: K.C. Conway, Director of Research, Chief Economist, Alabama Center for Real Estate15
SE – MidAtlantic Ports growing 3X-4X
West coast Ports
SE & VA TEU Growth is UnmatchedSC had 45% TEU Container Growth 2011-2016
High Quality Tenant Base
Approximately 80% of rental revenue is from investment grade tenants or subsidiaries Higher investment grade tenant base than any other REIT
Rental roster includes Amazon, Anheuser-Busch, Beam Suntory, Coca-Cola, FedEx, Home Depot, International Paper, Keurig Dr Pepper, Milwaukee Tool, National Oilwell, Shaw Industries, Sherwin-Williams, Siemens, Snap-on, ULTA, United Technologies and other high quality companies
Monmouth began investing in properties leased to FedEx in 1994 Recent acquisitions include five properties consisting of an additional 1.2 million square feet leased to FedEx Fifteen FedEx expansion projects completed since Fiscal 2014, increasing the rent and lease terms of these
facilities
Largest Percentage of Investment Grade Tenants in the REIT Sector
16Source: MNR 10-Q and subsequent press releases
FedEx Ground, 40.9%
FedEx Express, 5.0%
FedEx Trade Networks, 2.1%Milwaukee Tool,
4.0%Shaw Industries,
3.8%
ULTA, 3.1%
Amazon.com Services, 3.0%
Jim Beam Brands, 2.8%
International Paper, 2.7%
Remaining Tenants, 32.6%
FedEx Ground, 53.6%
FedEx Express, 5.0%
FedEx Trade Networks, 1.0%
Amazon.com Services, 2.9%
Shaw Industries, 2.6%
Milwaukee Tool, 2.3%
ULTA, 2.0%
International Paper, 1.9%
TreeHouse, 1.7%
B. Braun Medical, 1.6%
Remaining Tenants, 25.4%
High Quality Tenants
Square Footage by TenantAnnual Rent by Tenant
17Source: MNR 10-Q and subsequent press releases
FDX and its subsidiaries represent 59.6% of Annual Rent
FDX and its subsidiaries represent 48.0% of Square Footage
Florida, 10.1%
Texas, 8.2%
Ohio, 7.8%
Georgia, 7.5%
Kentucky, 5.9%
South Carolina, 5.8%
Mississippi, 5.3%
Indiana, 4.6%Illinois, 4.4%
North Carolina, 4.3%
Remaining States, 36.1%
Florida, 11.7%
Texas, 10.3%
Georgia, 7.8%
Ohio, 7.4%
South Carolina, 6.7%
New Jersey, 5.0%Illinois, 4.6%North Carolina, 4.2%
Michigan, 4.2%
Kentucky, 3.8%
Remaining States, 34.3%
Geographic Focus
Annual Rent by State Square Footage by State
18
Our 21.8 million square foot portfolio is well diversified across 30 states
Source: MNR 10-Q and subsequent press releases
Summary Portfolio Metrics
(1) Occupancy for MNR and peers based on SEC reports available as of 3/29/19(2) On a per square foot weighted average basis, MNR’s portfolio is 8.8 years old. This chart uses simple average instead of weighted average for comparative purposes because some of our peers do not publish weighted average
Source: S&P Global Market Intelligence19
Current Occupancy (1)
Rate
Average Building Age (in Years) (2)
Rent Roll (% next 3 years by base revenues)
98.9%98.5% 98.4%
97.3%96.8%
96.3%95.5%
94.0%
90.0%
92.0%
94.0%
96.0%
98.0%
100.0%
MNR FR TRNO EGP PLD DRE STAG PSB
11.8%
30.5%
42.2% 44.4% 44.5% 46.8%51.7% 52.1%
0.0%10.0%20.0%30.0%40.0%50.0%60.0%
MNR DRE TRNO PLD STAG FR EGP PSB
13 15 19 19
31 31 32
-
10
20
30
40
MNR DRE EGP PLD FR STAG TRNO
Highest occupancy rate in the sector
Youngest portfolio among peers
Limited near term rent roll
Fiscal 2018-2019 Acquisitions Monmouth has completed over $1 billion in acquisitions and more than doubled portfolio GLA over the past five years. In fiscal 2018, Monmouth acquired seven industrial properties, of which 85% are net leased to investment grade tenants or their
subsidiaries for approximately $282.3 million, containing approximately 2.7 million square feet. Thus far in fiscal 2019, Monmouth acquired two properties containing approximately 474,000 square feet for $113.1 million. Monmouth’s acquisition pipeline currently contains approximately 1.4 million square feet consisting of four new build-to-suit
properties, of which 100% is net-leased to investment grade tenants or their subsidiaries, with an aggregate purchase price of $172.2 million. 20% of the 1.4 million square feet acquisition pipeline is leased to FedEx.
Fiscal 2018 Acquisitions Fiscal 2019Acquisitions
Charleston, SC
Oklahoma City, OK
Savannah, GA
Daytona Beach, FL
Mobile,AL
Charleston,SC
Atlanta,GA
Trenton,NJ
Savannah,GA
Tenant:
Credit Rating:(S&P/Moody’s) BBB/Baa2 AA-/Baa1 AA/Aa2 NR AA-/Baa1 BBB/Baa2 BBB/Baa2 BBB/Baa2 BBB/Baa2
Year Built: 2017 2017 2018 2018 2018 2018 2018 2017 2018
Size (sf): 121,683 300,000 831,764 399,440 362,942 265,318 373,750 347,145 126,520
Acres: 16.2 123.0 62.4 27.5 31.3 48.9 92.6 62.0 29.4
Purchase Price: $21,872,170 $30,250,000 $57,483,636 $30,750,540 $33,688,276 $47,174,296 $61,113,264 $85,248,352 $27,832,780
Price/SF: $179.75 $100.83 $69.11 $76.98 $92.82 $177.80 $163.51 $245.57 $219.99
Lease Maturity: 8/31/2032 10/31/2027 9/30/2027 4/1/2028 11/30/2028 6/30/2033 2/28/2033 6/30/2032 10/31/2028
Annualized Rental Revenue:
$1,315,000 $1,884,000 $3,551,000 $2,130,000 $2,020,000 $2,713,000 $3,801,000 $5,328,000 $1,755,000
20Source: MNR 10-Q and subsequent press releases
Select Acquisitions
FedEx Ground – Orlando, FL MSA – 310,922 sf
21Source: MNR 10-Q and subsequent press releases
Walmart has recently constructed two large ecommerce fulfillment centers (one on each side of our FedEx facility) totaling 2.35 million square feet, illustrating the strong demand for our locations.
The Changing of The Guard
Before
22Source: MNR
The Big Town Mall was for many years the largest mall in Texas, and today…
The Changing of The Guard
After
23Source: MNR
This large 65 acre parcel situated six miles east of downtown Dallas is now the site of Monmouth’s new 352,000 sf FedEx facility.
Select Acquisitions (continued)
ULTA Ecommerce Fulfillment Center
Indianapolis, IN MSA – 671,354 sf
24Source: MNR 10-Q and subsequent press releases
GE CATA(Center for Additive Technology Advancement)
Pittsburgh, PA MSA – 125,860 sf
Acquisition Pipeline Strong acquisition pipeline comprising approximately 1.4 million square
feet with a purchase price of $172.2 million 100% is leased to investment grade tenants 20% is leased to FedEx Leases commence throughout fiscal 2019 and 2020 Acquisitions include in the pipeline have a weighted average
lease maturity of 13.2 years Monmouth actively looks for new build-to-suit opportunities near
already owned FedEx facilities Six FedEx expansion projects completed within the last three years with
a total cost of $12.4 million as well as a 250,000 sf expansion for Milwaukee Tool at a total cost of $9.8 million and a 155,000 sf expansion for UGN, Inc. at a total cost of $8.6 million
These expansions resulted in extending the weighted average lease terms by approximately 12 years and produced approximately 10% returns on cost from increased rents
Monmouth maintains excellent relationships with top merchant builders
25
Built-to-Suit Infrastructure Installation
Built-to-SuitBuilt-to-Suit Infrastructure Installation
Source: MNR 10-Q and subsequent press releases
Lease Expirations Are Well Dispersed Minimal rent roll down risk observed on lease renewals Weighted average lease maturity currently at 8.0 years Weighted average rent per occupied square foot of $6.23 National average rent psf for industrial real estate
currently is $6.11 and trending higher
Monmouth historically averages approximately 90% annual tenant retention: 100% renewed in Fiscal 2015 and 2016, 92% renewed in Fiscal 2017, and 69% in Fiscal 2018
0 sq. ft.
500 sq. ft.
1,000 sq. ft.
1,500 sq. ft.
2,000 sq. ft.
2,500 sq. ft.
3,000 sq. ft.
2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034
$10.15
$6.57$5.46
$4.57 $5.68
$5.71
$6.21
$5.15
$4.50$8.08
$5.41
$8.92
Fiscal Year
(1)
GLA 0.9% 1.5% 5.5% 5.2% 7.7% 8.7% 11.4% 4.5% 10.6% 11.8% 6.0% 3.7% 4.4% 9.5% 2.9% 4.3%
ABR 1.0% 1.3% 4.1% 4.8% 7.1% 8.7% 9.6% 5.9% 9.4% 10.3% 5.4% 4.7% 5.3% 13.8% 4.8% 3.2%
Expi
ring
Squa
re F
oota
ge (0
00’s
)
26
Expiring square footage (‘000’s)Average rent per occupied square foot of expiring square footage above each bar
$5.57
$5.47
$7.41$7.80
(1) In fiscal 2019, approximately 1.5 million square feet was originally set to expire, out of which 1,131,335 square feet has thus far been renewed. Source: MNR 10-Q and subsequent press releases, GLA: Gross Leasable Area, ABR: Annual Base Rent
Favorable US Industrial Fundamentals
Source: CBRE Research & Green Street
Current economic indicators are very favorable for the US industrial real estate sector and Monmouth’s portfolio due to: Rising GDP Rampant growth in ecommerce Limited new construction over the past 8 years Manufacturing growth due to increased domestic energy production Continued benefits from the recently completed Panama Canal expansion
US Industrial Construction (000’s) US Industrial Occupancy
0
100,000
200,000
300,000
400,000
2004 2006 2008 2010 2012 2014 2016 201885%
90%
95%
100%
2004 2006 2008 2010 2012 2014 2016 2018
95.5%279,000
27
US Cap Rates
4%
6%
8%
10%
2005 2007 2009 2011 2013 2015 2017 2019
4.9%
Securities Portfolio Historic Performance (Fiscal Year)
(1) Fiscal Year beginning balance(2) Fiscal Year end balance(3) Through 12/31/18
Source: MNR 10-Q and subsequent press releases
Dividend Income ($ in Millions) Net Realized Gains ($ in Millions)
28
$5.4$8.5
$12.4$16.2
$19.9$25.6
$32.5
$45.6$49.9
$2.4 $3.0 $3.1 $3.9 $3.9 $3.7 $5.6 $6.9 $13.1 $4.3$0$5
$10$15$20$25$30$35$40$45$50
2010 2011 2012 2013 2014 2015 2016 2017 2018 2019
$7.8
$13.9
$21.0$23.2 $24.0
$28.4$30.7 $30.8 $30.8
$2.6 $5.2 $6.0 $7.1 $2.2 $0.8 $4.4 $2.3 $0.1 $0.0$0
$5
$10
$15
$20
$25
$30
$35
2010 2011 2012 2013 2014 2015 2016 2017 2018 2019
Annual Amount Cumulative Amount since 2010 Annual Amount Cumulative Amount since 2010
Fiscal Year
Securities Portfolio Cost (1)
Securities Available for Sale (1)
DividendIncome
Net Realized Gain on Sale of Securities
Change in Unrealized Gain/(Loss)(2) Total Return Total Return %
2010 $24,027,834 $27,824,665 $2,387,757 $2,609,149 $6,319,226 $11,316,132 47.102011 32,401,668 42,517,725 2,981,534 5,238,203 (7,747,894) 471,843 1.462012 41,896,896 44,265,059 3,144,837 6,044,065 3,015,774 12,204,676 29.132013 56,301,236 61,685,173 3,861,374 7,133,252 (3,394,669) 7,599,957 13.502014 43,462,472 45,451,740 3,863,136 2,166,766 (1,867,912) 4,161,990 9.582015 59,190,047 59,311,403 3,707,498 805,513 (5,562,959) (1,049,948) -1.772016 59,982,840 54,541,237 5,607,403 4,398,599 18,383,870 28,389,872 47.332017 60,662,627 73,604,894 6,919,973 2,311,714 (6,371,702) 2,859,985 4.712018 117,194,205 123,764,770 13,099,316 111,387 (31,315,144) (18,104,441) -15.452019(3) 179,665,124 154,920,545 4,331,260 -0- (42,626,889) (38,295,628) -21.32
Total $49,904,088 $30,818,648 $(71,168,299) $9,554,438 Avg. 11.43%
Securities Portfolio Historic Performance (continued)
(1) Through 12/31/2018
Source: MNR 10-Q, subsequent press releases and S&P Global Market Intelligence as of 12/31/18.
29
MREIC REIT Portfolio (%)FISCAL YEAR
MSCI REIT Index (RMS)(%)
S&P 500 Index(%)
MREIC vs.MSCI REIT Index (RMS)
∆ in BPS
MREIC vs.S&P 500 Index
∆ in BPS
2010 47.10 30.54 10.16 1656 36942011 1.46 1.26 1.14 20 322012 29.13 32.44 30.20 -331 -1072013 13.50 5.75 19.34 775 -5842014 9.58 13.26 19.73 -368 -10152015 -1.77 9.47 -0.61 -1124 -1162016 47.33 19.83 15.43 2750 31902017 4.71 0.54 18.61 417 -13902018 -15.45 3.74 17.91 -1919 -3336
2019(1) -21.32 -6.72 -13.52 -1460 -780Average 11.43 11.01 11.84 42 -41
020406080
100120140160
2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019
MREIC RMS S&P 500
114.26%118.39%
Securities Portfolio Historic Performance - Total Return
110.11%
Conservative Balance Sheet Conservative capital structure
38.0% Net Debt to total market capitalization 6.3x Net Debt/Adjusted EBITDA 2.6x fixed charge coverage 86% fixed rate debt, weighted average interest rate of 4.1%
Limited debt maturities each year through 2023 86% of debt consists of modest LTV asset level mortgage financing Weighted average mortgage maturity of 11.8 years, representing one of
the longest debt maturity schedules in the REIT sector $348.6 million in potential liquidity
$145.8 million in REIT marketable securities $90.0 million available on our $200 million unsecured revolving
line of credit, plus an additional $100 million potentially available on an accordion feature
$12.8 million in cash In October 2018, we completed our first Common Stock offering since
2014, with the sale of 9.2 million shares generating gross proceeds of $138 million
(1) All dollar amounts except stock price are in millionsSource: MNR 10-Q and subsequent press releases
Debt Maturities
Total Market Capitalization (1)
Equity, 49%
Debt, 39%
Preferred, 12%
Total Shares Outstanding (12/31/18) 92,335,115
Stock Price (12/31/18) $12.40
Equity Market Capitalization $1,145.0
Mortgage Notes Payable 771.7
Loans Payable 125.8
Total Debt $897.5
Total Preferred 288.3
Total Market Capitalization $2,330.8
30
$0
$100
$200
$300
$400
$500
$600
2019 2020 2021 2022 2023 Thereafter
8.4%6.0%
17.9%
54.3%
7.4% 6.0%
Tota
l Deb
t ($
in M
illio
ns)
Loans Payable
Mortgages
% of Total Debt Outstanding
Mobile, AL
Long Term Cash Dividend
Source: S&P Global Market Intelligence
Monmouth has maintained or increased its dividend for 27 consecutive years On October 2, 2017, Monmouth increased its dividend by 6.25% to $0.68 per year, marking our second dividend
increase in 3 years. These 2 dividend increases total 13% Current AFFO dividend payout ratio is a conservative 74% Monmouth was one of the only REITs that maintained its dividend throughout the Great Recession 100% cash dividends since inception
$0.57 $0.58
$0.58 $0.58 $0.58 $0.58 $0.58
$0.60 $0.60 $0.60 $0.60 $0.60 $0.60 $0.60 $0.60 $0.60 $0.60
$0.64 $0.64
$0.68 $0.68
$0.50 $0.52 $0.54 $0.56 $0.58 $0.60 $0.62 $0.64 $0.66 $0.68 $0.70
1999
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
2016
2017
2018
2019
E
Dividends Per Share
31
Peer Analysis
Source: S&P Global Market Intelligence as of 3/29/19NOTE: MNR peers include DRE, EGP, FR, PLD, PSB, STAG and TRNO
Dividend Yield
2019E FFO Multiple 2019E FFO Payout Ratio
Total Debt/Total Market Capitalization
32
29.8x
23.6x 23.0x 22.8x 21.8x 20.8x
16.0x14.0x
0.0x
5.0x
10.0x
15.0x
20.0x
25.0x
30.0x
35.0x
TRNO PSB EGP PLD DRE FR STAG MNR
35.3%
30.9%
25.9% 24.8%22.1% 21.3%
17.7%
0.0%0.0%
5.0%
10.0%
15.0%
20.0%
25.0%
30.0%
35.0%
40.0%
MNR STAG FR EGP DRE PLD TRNO PSB
5.2%4.8%
3.0% 2.8% 2.7% 2.6% 2.6%2.3%
0.0%
1.0%
2.0%
3.0%
4.0%
5.0%
6.0%
MNR STAG PLD DRE PSB FR EGP TRNO
77.1%72.3%
68.0% 67.1%63.1% 61.2% 59.4%
54.2%
0.0%
10.0%
20.0%
30.0%
40.0%
50.0%
60.0%
70.0%
80.0%
90.0%
STAG MNR TRNO PLD PSB DRE EGP FR
Total Return Performance
Source: S&P Global Market Intelligence as of 3/29/19
12Year
-150-100
-500
50100150200250300350400
3/29
/200
7
7/29
/200
7
11/2
9/20
07
3/29
/200
8
7/29
/200
8
11/2
9/20
08
3/29
/200
9
7/29
/200
9
11/2
9/20
09
3/29
/201
0
7/29
/201
0
11/2
9/20
10
3/29
/201
1
7/29
/201
1
11/2
9/20
11
3/29
/201
2
7/29
/201
2
11/2
9/20
12
3/29
/201
3
7/29
/201
3
11/2
9/20
13
3/29
/201
4
7/29
/201
4
11/2
9/20
14
3/29
/201
5
7/29
/201
5
11/2
9/20
15
3/29
/201
6
7/29
/201
6
11/2
9/20
16
3/29
/201
7
7/29
/201
7
11/2
9/20
17
3/29
/201
8
7/29
/201
8
11/2
9/20
18
3/29
/201
9
33
Dividend Yield
5.2%4.8%
3.0% 2.8% 2.7% 2.6% 2.6%2.3%
0.0%
1.0%
2.0%
3.0%
4.0%
5.0%
6.0%
MNR STAG PLD DRE PSB FR EGP TRNO
MNR Peer Group RMS
232.93%
81.40%85.40%
Monmouth is one of the top performing REITs over a 2, 10 and 20 year period Slide utilizes 12 year period to illustrate long term performance including during the Global Financial Crisis
Key Investment Highlights
Best-in-Class Single Tenant Net-Lease Industrial Portfolio
34
Geographically Diversified with a High Quality Tenant Base
Demonstrated Portfolio, Earnings, and Dividend Growth
Conservative Balance Sheet
Experienced & Aligned Management Team with 6% Ownership
Well Positioned for Future Growth
2018 Annual report is now available on our website. Please contact our IR department if you would like to receive a hard copy.
Monmouth Real Estate Investment CorporationLearn more at: www.mreic.reit/balancingforces