Monmouth Real Estate Investment (MNR-PC) 8-K Results of Operations and Financial Condition

Table of Contents
	Page
Consolidated Balance Sheets	3
Consolidated Statements of Income	4
NOI, EBITDA, FFO, Core FFO and AFFO Reconciliations	5
Financial Highlights	6
Same Property Statistics	7
Consolidated Statements of Cash Flows	9
Capital Structure and Leverage Ratios	10
Debt Maturity	12
Property Table by Tenant	13
Property Table by State	14
Lease Expirations	15
Recent Acquisitions	16
Property Table	17
Definitions	19
Press Release Dated November 28, 2016	20

The statement of operations and supplemental statement of operations provided in this supplemental information package present funds from operations, core funds from operations, adjusted funds from operations, net operating income (NOI), Same Property NOI, Same Property cash NOI and EBITDA which are REIT industry financial measures that are not calculated in accordance with  accounting principles generally accepted in the United States of America. Please see page 19 for a definition of these supplemental  performance measures. Please see the supplemental statement of operations reconciliation for a reconciliation of certain captions  in the supplemental statement of operations reported in this supplemental information package to the statement of operations  as reported in the Company’s filings with the SEC on Form 10-K.  

2

Consolidated Balance Sheets

	September 30, 2016			September 30, 2015
ASSETS
Real Estate Investments:
Land	$	165,375,315		$	133,500,315
Buildings and Improvements		1,005,938,180			807,509,590
Total Real Estate Investments		1,171,313,495			941,009,905
Accumulated Depreciation		(148,830,169	)		(124,898,639	)
Net Real Estate Investments		1,022,483,326			816,111,266
Cash and Cash Equivalents		95,749,508			12,073,909
Securities Available for Sale at Fair Value		73,604,894			54,541,237
Tenant and Other Receivables		1,444,824			783,052
Deferred Rent Receivable		6,917,431			5,205,295
Prepaid Expenses		4,830,987			3,931,616
Financing Costs, net of Accumulated Amortization of $3,399,232 and $3,247,014, respectively		7,518,066			5,987,911
Capitalized Lease Costs, net of Accumulated Amortization of $3,238,516 and $2,534,521, respectively		4,165,268			3,407,432
Intangible Assets, net of Accumulated Amortization of $12,332,599 and $11,153,855, respectively		5,816,153			6,115,134
Other Assets		7,227,571			7,835,090
TOTAL ASSETS	$	1,229,758,028		$	915,991,942
LIABILITIES AND SHAREHOLDERS’ EQUITY
Liabilities:
Mortgage Notes Payable	$	483,748,153		$	373,991,174
Loans Payable		80,790,684			85,041,386
Preferred Stock Called for Redemption		53,493,750			-0-
Accounts Payable and Accrued Expenses		3,998,771			3,113,274
Other Liabilities		9,868,572			7,835,468
Total Liabilities		631,899,930			469,981,302
COMMITMENTS AND CONTINGENCIES
Shareholders’ Equity:
7.625% Series A Cumulative Redeemable Preferred Stock,  $0.01 Par Value Per Share: -0- and 2,139,750 Shares Authorized, Issued and Outstanding as of September 30, 2016  and 2015, respectively		-0-			53,493,750
7.875% Series B Cumulative Redeemable Preferred Stock, $0.01 Par Value Per Share: 2,300,000 Shares Authorized,  Issued and Outstanding as of September 30, 2016 and 2015		57,500,000			57,500,000
6.125% Series C Cumulative Redeemable Preferred Stock, $0.01 Par Value Per Share: 5,400,000 and -0- Shares Authorized, Issued and Outstanding as of September 30, 2016 and 2015, respectively		135,000,000			-0-
Common Stock – $0.01 Par Value Per Share: 194,600,000 and 200,000,000 Shares Authorized as of September 30, 2016  and 2015, respectively; 68,920,972 and 62,123,454 Shares Issued and Outstanding as of September 30, 2016 and 2015, respectively		689,210			621,235
Excess Stock – $0.01 Par Value Per Share: 200,000,000 Shares Authorized as of September 30, 2016 and 2015;  No Shares Issued or Outstanding as of September 30, 2016 and 2015		-0-			-0-
Additional Paid-In Capital		391,726,621			339,837,258
Accumulated Other Comprehensive Income (Loss)		12,942,267			(5,441,603	)
Undistributed Income		-0-			-0-
Total Shareholders’ Equity		597,858,098			446,010,640
TOTAL LIABILITIES & SHAREHOLDERS’ EQUITY	$	1,229,758,028		$	915,991,942

Fourth Quarter FY 2016 & FY 2016 Supplemental of Monmouth Real Estate Investment Corp. Page 3 of 23

3

Consolidated Statements of Income

	Three Months Ended						Twelve Months Ended
	9/30/2016			9/30/2015			9/30/2016			9/30/2015
INCOME:
Rental Revenue	$	22,126,728		$	18,167,515		$	81,592,429		$	67,059,385
Reimbursement Revenue		3,449,183			2,399,574			13,323,681			10,716,112
Lease Termination Income		-0-			-0-			-0-			238,625
TOTAL INCOME		25,575,911			20,567,089			94,916,110			78,014,122
EXPENSES:
Real Estate Taxes		2,773,882			1,792,836			10,455,401			8,362,135
Operating Expenses		957,410			1,042,746			4,273,899			4,127,884
General & Administrative Expenses		2,836,283			1,891,115			7,936,124			6,305,928
Acquisition Costs		184,486			242,699			730,441			1,546,088
Depreciation		6,576,648			5,336,059			24,055,022			19,705,320
Amortization of Capitalized Lease Costs and Intangible Assets		614,283			569,625			2,032,658			2,067,408
TOTAL EXPENSES		13,942,992			10,875,080			49,483,545			42,114,763
OTHER INCOME (EXPENSE):
Dividend and Interest Income		1,565,937			852,684			5,616,392			3,723,867
Gain on Sale of Securities Transactions, net		3,239,190			428,426			4,398,599			805,513
Interest Expense		(5,842,699	)		(5,128,971	)		(21,836,811	)		(18,558,150	)
Amortization of Financing Costs		(402,737	)		(677,765	)		(1,116,238	)		(1,286,016	)
TOTAL OTHER INCOME (EXPENSE)		(1,440,309	)		(4,525,626	)		(12,938,058	)		(15,314,786	)
INCOME FROM CONTINUING OPERATIONS		10,192,610			5,166,383			32,494,507			20,584,573
Gain on Sale of Real Estate Investment		-0-			5,021,242			-0-			5,021,242
NET INCOME		10,192,610			10,187,625			32,494,507			25,605,815
Less: Preferred Dividends		2,565,196			2,151,758			9,020,470			8,607,032
Less: Redemption of Preferred Stock		2,942,149			-0-			2,942,149			-0-
NET INCOME ATTRIBUTABLE TO  COMMON SHAREHOLDERS	$	4,685,265		$	8,035,867		$	20,531,888		$	16,998,783

Fourth Quarter FY 2016 & FY 2016 Supplemental of Monmouth Real Estate Investment Corp. Page 4 of 23

4

NOI, EBITDA, FFO, Core FFO and AFFO Reconciliations

(unaudited)

	Three Months Ended						Twelve Months Ended
	9/30/2016			9/30/2015			9/30/2016			9/30/2015
Revenues
Rental Revenue	$	22,126,728		$	18,167,515		$	81,592,429		$	67,059,385
Reimbursement Revenue		3,449,183			2,399,574			13,323,681			10,716,112
Total Rental and Reimbursement Revenue		25,575,911			20,567,089			94,916,110			77,775,497
Expenses
Real Estate Taxes		2,773,882			1,792,836			10,455,401			8,362,135
Operating Expenses		957,410			1,042,746			4,273,899			4,127,884
Total Expenses		3,731,292			2,835,582			14,729,300			12,490,019
Net Operating Income – NOI		21,844,619			17,731,507			80,186,810			65,285,478
Lease Termination Income		-0-			-0-			-0-			238,625
Dividend and Interest Income		1,565,937			852,684			5,616,392			3,723,867
Net Amortization of Acquired Above and Below Market Lease Revenue		25,491			25,492			101,967			59,750
General & Administrative Expenses		(2,836,283	)		(1,891,115	)		(7,936,124	)		(6,305,928	)
EBITDA		20,599,764			16,718,568			77,969,045			63,001,792
Interest Expense		(5,842,699	)		(5,128,971	)		(21,836,811	)		(18,558,150	)
Gain on Sale of Securities Transactions, net		3,239,190			428,426			4,398,599			805,513
Acquisition Costs		(184,486	)		(242,699	)		(730,441	)		(1,546,088	)
Preferred Dividends		(2,565,196	)		(2,151,758	)		(9,020,470	)		(8,607,032	)
Redemption of Preferred Stock		(2,942,149	)		-0-			(2,942,149	)		-0-
Depreciation of Corporate Office Tenant Improvements		(35,535	)		(8,163	)		(123,492	)		(79,572	)
Amortization of Financing Costs		(402,737	)		(677,765	)		(1,116,238	)		(1,286,016	)
Funds From Operations – FFO		11,866,152			8,937,638			46,598,043			33,730,447
Depreciation (excluding Corporate Office Tenant Improvements)		(6,541,113	)		(5,327,896	)		(23,931,530	)		(19,625,748	)
Gain on Sale of Real Estate Investment		-0-			5,021,242			-0-			5,021,242
Amortization of Capitalized Lease Costs and Intangible Assets		(639,774	)		(595,117	)		(2,134,625	)		(2,127,158	)
Net Income Attributable to Common Shareholders		4,685,265			8,035,867			20,531,888			16,998,783
Funds From Operations – FFO		11,866,152			8,937,638			46,598,043			33,730,447
Acquisition Costs		184,486			242,699			730,441			1,546,088
Redemption of Preferred Stock		2,942,149			-0-			2,942,149			-0-
Core Funds From Operations - Core FFO		14,992,787			9,180,337			50,270,633			35,276,535
Stock Compensation Expense		619,777			165,317			926,465			448,895
Depreciation of Corporate Office Tenant Improvements		35,535			8,163			123,492			79,572
Amortization of Financing Costs		402,737			677,765			1,116,238			1,286,016
Non-recurring Other Expense (1)		-0-			-0-			500,000			-0-
Lease Termination Income		-0-			-0-			-0-			(238,625	)
Gain on Sale of Securities Transactions, net		(3,239,190	)		(428,426	)		(4,398,599	)		(805,513	)
U.S. GAAP Straight-line Rent Adjustment		(537,768	)		(282,133	)		(1,709,821	)		(1,446,264	)
Recurring Capital Expenditures		(309,521	)		(161,790	)		(963,065	)		(623,658	)
Adjusted Funds From Operations – AFFO		11,964,357			9,159,233			45,865,343			33,976,958
EBITDA		20,599,764			16,718,568			77,969,045			63,001,792
Stock Compensation Expense		619,777			165,317			926,465			448,895
Non-recurring Other Expense (1)		-0-			-0-			500,000			-0-
Lease Termination Income		-0-			-0-			-0-			(238,625	)
U.S. GAAP Straight-line Rent Adjustment		(537,768	)		(282,133	)		(1,709,821	)		(1,446,264	)
Recurring Capital Expenditures		(309,521	)		(161,790	)		(963,065	)		(623,658	)
Interest Expense		(5,842,699	)		(5,128,971	)		(21,836,811	)		(18,558,150	)
Preferred Dividends		(2,565,196	)		(2,151,758	)		(9,020,470	)		(8,607,032	)
Adjusted Funds From Operations – AFFO	$	11,964,357		$	9,159,233		$	45,865,343		$	33,976,958

(1) Consists of one-time payroll expenditures.

Fourth Quarter FY 2016 & FY 2016 Supplemental of Monmouth Real Estate Investment Corp. Page 5 of 23

5

Financial Highlights

(unaudited)

	Three Months Ended				Twelve Months Ended
	9/30/2016		9/30/2015		9/30/2016		9/30/2015
Weighted Average Common Shares Outstanding
Basic		68,013,820		60,434,609		65,468,564		59,085,888
Diluted		68,159,029		60,514,018		65,558,284		59,201,296
Net Income Attributable to Common Shareholders	$	4,685,265	$	8,035,867	$	20,531,888	$	16,998,783
Basic	$	0.07	$	0.13	$	0.31	$	0.29
Diluted		0.07		0.13		0.31		0.29
Net Operating Income – NOI	$	21,844,619	$	17,731,507	$	80,186,810	$	65,285,478
Basic	$	0.32	$	0.29	$	1.22	$	1.10
Diluted		0.32		0.29		1.22		1.10
Funds From Operations – FFO	$	11,866,152	$	8,937,638	$	46,598,043	$	33,730,447
Basic	$	0.17	$	0.15	$	0.71	$	0.57
Diluted		0.17		0.15		0.71		0.57
Core Funds From Operations - Core FFO	$	14,992,787	$	9,180,337	$	50,270,633	$	35,276,535
Basic	$	0.22	$	0.15	$	0.77	$	0.60
Diluted		0.22		0.15		0.77		0.60
Core FFO Excluding Gains on Securities Transactions  and Lease Termination Income, net	$	11,753,597	$	8,751,911	$	45,872,034	$	34,232,397
Basic	$	0.17	$	0.14	$	0.70	$	0.58
Diluted		0.17		0.14		0.70		0.58
Core FFO Including Gain Over Historic Cost (Undepreciated)  on Sale of Real Estate Investment (1)	$	14,992,787	$	12,470,286	$	50,270,633	$	38,566,484
Basic	$	0.22	$	0.21	$	0.77	$	0.65
Diluted		0.22		0.21		0.77		0.65
Adjusted Funds From Operations - AFFO	$	11,964,357	$	9,159,233	$	45,865,343	$	33,976,958
Basic	$	0.18	$	0.15	$	0.70	$	0.58
Diluted		0.18		0.15		0.70		0.57
Dividends Declared per Common Share	$	0.16	$	0.15	$	0.64	$	0.60

(1) On September 18, 2015, the Company sold its 160,000 square foot industrial building located in Monroe, NC for $9,000,000 with net sale proceeds to the Company of $8,846,686. Prior to the sale, the historic cost basis was $5,556,737 and the net book value (net of accumulated depreciation) was $3,825,443. Under U.S. GAAP, the sale resulted in a realized gain of $5,021,242, representing a 131% gain over the depreciated U.S. GAAP basis and a realized gain on historic cost of $3,289,949, representing a 59% gain over the Company’s historic cost basis.  

Fourth Quarter FY 2016 & FY 2016 Supplemental of Monmouth Real Estate Investment Corp. Page 6 of 23

6

Same Property Statistics

	Three Months Ended
	9/30/2016				9/30/2015			Change		Change %
Total Square Feet / Total Properties		16,010,372/99				13,918,963/92			2,091,409		15.0	%
Occupancy Percentage at Quarter End		99.6	%			97.7	%		190 bps		1.9	%
Same Property Square Feet / Number of Same Properties				12,381,669/84
Same Property Occupancy Percentage at Quarter End		99.5	%			97.4	%		210 bps		2.2	%
Same Property Net Operating Income (NOI) (GAAP)	$	16,220,468			$	15,666,895		$	553,573		3.5	%
Reversal of U.S. GAAP Straight-line Rent Adjustment		(193,254	)			(267,432	)		74,178
Same Property Cash NOI (Cash)	$	16,027,214			$	15,399,463		$	627,751		4.1	%

Same Property Statistics include all properties owned during the entire periods presented with the exclusion of properties expanded during these periods.

The 3.5% increase, amounting to $553,573 in Same Property NOI (GAAP), consists of 36% or $197,171 generated by increased NOI from occupied properties and the remaining 64% or $356,402 is attributable to increased NOI from filling previously vacant properties.

The 4.1% increase, amounting to $627,751 in Same Property Cash NOI, consists of 43% or $271,621 generated by increased NOI from occupied properties and the remaining 57% or $356,130 is attributable to increased NOI from filling previously vacant properties.

Reconciliation of Same Property NOI to Total NOI	Three Months Ended
	9/30/2016		9/30/2015		Change		Change %
Same Property NOI (GAAP)	$	16,220,468	$	15,666,895	$	553,573		3.5	%
NOI of properties purchased subsequent to July 1, 2015 (ten properties for fiscal 2016 and two properties for fiscal 2015)		3,631,279		495,501
NOI of properties expanded subsequent to July 1, 2015 (five properties for fiscal 2016 and 2015)		1,992,872		1,502,108
NOI of property sold subsequent to July 1, 2015 (one property for fiscal 2015)		-0-		67,003
Total NOI	$	21,844,619	$	17,731,507	$	4,113,112		23.2	%

Fourth Quarter FY 2016 & FY 2016 Supplemental of Monmouth Real Estate Investment Corp. Page 7 of 23

7

Same Property Statistics

	Twelve Months Ended
	9/30/2016					9/30/2015			Change		Change %
Total Square Feet / Total Properties		16,010,372	/99				13,918,963	/92		2,091,409		15.0	%
Occupancy Percentage at Quarter End		99.6	%				97.7	%		190 bps		1.9	%
Same Property Square Feet / Number of Same Properties				9,621,488	/74
Same Property Occupancy Percentage at Quarter End		99.4	%				96.6	%		280 bps		2.9	%
Same Property Net Operating Income (NOI) (GAAP)	$	51,632,507				$	49,702,824		$	1,929,683		3.9	%
Reversal of U.S. GAAP Straight-line Rent Adjustment		(683,649	)				(908,572	)		224,923
Same Property Cash NOI (Cash)	$	50,948,858				$	48,794,252		$	2,154,606		4.4	%

Same Property Statistics include all properties owned during the entire periods presented with the exclusion of properties expanded during these periods.

The 3.9% increase, amounting to $1,929,683 in Same Property NOI (GAAP), consists of 35% or $682,434 generated by increased NOI from occupied properties and the remaining 65% or $1,247,249 is attributable to increased NOI from filling previously vacant properties.

The 4.4% increase, amounting to $2,154,606 in Same Property Cash NOI, consists of 50% or $1,077,316 generated by increased NOI from occupied properties and the remaining 50% or $1,077,290 is attributable to increased NOI from filling previously vacant properties.

Reconciliation of Same Property NOI to Total NOI	Twelve Months Ended
	9/30/2016		9/30/2015		Change		Change %
Same Property NOI (GAAP)	$	51,632,507	$	49,702,824	$	1,929,683		3.9	%
NOI of properties purchased subsequent to October 1, 2014 (eighteen properties for fiscal 2016 and ten properties for fiscal 2015)		19,833,107		7,652,178
NOI of properties expanded subsequent to October 1, 2014 (seven properties for fiscal 2016 and 2015)		8,721,196		7,465,931
NOI of property sold subsequent to October 1, 2014 (one property for fiscal 2015)		-0-		464,545
Total NOI	$	80,186,810	$	65,285,478	$	14,901,332		22.8	%

Fourth Quarter FY 2016 & FY 2016 Supplemental of Monmouth Real Estate Investment Corp. Page 8 of 23

8

Consolidated Statements of Cash Flows

	Twelve Months Ended
	9/30/2016			9/30/2015
CASH FLOWS FROM OPERATING ACTIVITIES
Net Income	$	32,494,507		$	25,605,815
Noncash Items Included in Net Income:
Depreciation & Amortization		27,203,918			23,058,744
Stock Compensation Expense		926,465			448,895
Gain on Sale of Securities Transactions, net		(4,398,599	)		(805,513	)
Gain on Sale of Real Estate Investments		-0-			(5,021,242	)
Changes in:
Tenant, Deferred Rent & Other Receivables		(1,640,504	)		(800,203	)
Prepaid Expenses		(899,371	)		(1,166,821	)
Other Assets and Capitalized Lease Costs		(1,814,638	)		(2,359,895	)
Accounts Payable, Accrued Expenses & Other Liabilities		2,827,722			(897,495	)
NET CASH PROVIDED BY OPERATING ACTIVITIES		54,699,500			38,062,285
CASH FLOWS FROM INVESTING ACTIVITIES
Purchase of Real Estate & Intangible Assets		(210,747,340	)		(192,187,485	)
Capital and Land Site Improvements		(21,566,561	)		(10,541,656	)
Proceeds on Sale of Real Estate		-0-			8,846,686
Return of Deposits on Real Estate		2,950,000			3,100,000
Deposits Paid on Acquisitions of Real Estate		(2,200,000	)		(3,700,000	)
Purchase of Securities Available for Sale		(19,055,956	)		(16,188,760	)
Proceeds from Sale of Securities Available for Sale		22,774,768			16,201,480
NET CASH USED IN INVESTING ACTIVITIES		(227,845,089	)		(194,469,735	)
CASH FLOWS FROM FINANCING ACTIVITIES
Proceeds from Mortgage Notes Payable		153,428,485			122,173,058
Principal Payments on Mortgage Notes Payable		(43,671,506	)		(35,977,890	)
Net (Repayments) Proceeds from Loans Payable		(4,250,702	)		59,841,386
Financing Costs Paid on Debt		(2,646,393	)		(2,917,663	)
Proceeds from Underwritten Public Offering of Preferred Stock, net of offering costs		130,543,422			-0-
Proceeds from Issuance of Common Stock in the DRIP, net of Dividend Reinvestments		63,806,651			39,915,387
Proceeds from the Exercise of Stock Options		1,883,300			612,410
Preferred Dividends Paid		(8,607,032	)		(8,607,032	)
Common Dividends Paid, net of Reinvestments		(33,665,037	)		(27,032,958	)
NET CASH PROVIDED BY FINANCING ACTIVITIES		256,821,188			148,006,698
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS		83,675,599			(8,400,752	)
CASH AND CASH EQUIVALENTS - BEGINNING OF YEAR		12,073,909			20,474,661
CASH AND CASH EQUIVALENTS - END OF YEAR	$	95,749,508		$	12,073,909

Fourth Quarter FY 2016 & FY 2016 Supplemental of Monmouth Real Estate Investment Corp. Page 9 of 23

9

Capital Structure and Leverage Ratios	As of			As of
(unaudited)	9/30/2016			9/30/2015
Mortgage Notes Payable	$	483,748,153		$	373,991,174
Loans Payable		80,790,684			85,041,386
Preferred Stock Called for Redemption		53,493,750			-0-
Total Debt		618,032,587			459,032,560
7.625% Series A Cumul. Redeemable Preferred		-0-			53,493,750
7.875% Series B Cumul. Redeemable Preferred		57,500,000			57,500,000
6.125% Series C Cumul. Redeemable Preferred		135,000,000			-0-
Total Preferred Stock		192,500,000			110,993,750
Common Stock, Paid-In-Capital & Other		405,358,098			335,016,890
Total Shareholders’ Equity		597,858,098			446,010,640
Total Book Capitalization		1,215,890,685			905,043,200
Accumulated Depreciation		148,830,169			124,898,639
Total Undepreciated Book Capitalization	$	1,364,720,854		$	1,029,941,839
Shares Outstanding		68,920,972			62,123,454
Market Price Per Share	$	14.27		$	9.75
Equity Market Capitalization	$	983,502,270		$	605,703,677
Total Debt		618,032,587			459,032,560
Preferred		192,500,000			110,993,750
Total Market Capitalization	$	1,794,034,857		$	1,175,729,987
Total Debt	$	618,032,587		$	459,032,560
less: Cash and Cash Equivalents		95,749,508			12,073,909
Net Debt	$	522,283,079		$	446,958,651
less: Securities Available for Sale at Fair Value (Securities)		73,604,894			54,541,237
Net Debt Less Securities	$	448,678,185		$	392,417,414
Net Debt / Undepreciated Book Capitalization		38.3	%		43.4	%
Net Debt / Total Market Capitalization		29.1	%		38.0	%
Net Debt Plus Preferred / Total Market Capitalization		39.8	%		47.5	%
Net Debt Less Securities / Undepreciated Book Capitalization		32.9	%		38.1	%
Net Debt Less Securities / Total Market Capitalization		25.0	%		33.4	%
Net Debt Less Securities Plus Preferred / Total Market Capitalization		35.7	%		42.8	%
Weighted Average Interest Rate on Fixed Rate Debt		4.49	%		4.85	%

Fourth Quarter FY 2016 & FY 2016 Supplemental of Monmouth Real Estate Investment Corp. Page 10 of 23

10

Capital Structure and Leverage Ratios continued

(unaudited)

	Three Months Ended						Twelve Months Ended
	9/30/2016			9/30/2015			9/30/2016			9/30/2015
Net Income	$	10,192,610		$	10,187,625		$	32,494,507		$	25,605,815
plus: Depreciation & Amortization		7,593,668			6,583,449			27,203,918			23,058,744
plus: Interest Expense		5,842,699			5,128,971			21,836,811			18,558,150
plus: Acquisition Costs		184,486			242,699			730,441			1,546,088
plus: Net Amortization of Acquired Above and  Below Market Lease Revenue		25,491			25,492			101,967			59,750
less: Gain on Sale of Securities Transactions, net		(3,239,190	)		(428,426	)		(4,398,599	)		(805,513	)
less: Gain on Sale of Real Estate Investment		-0-			(5,021,242	)		-0-			(5,021,242	)
EBITDA	$	20,599,764		$	16,718,568		$	77,969,045		$	63,001,792
Interest Expense	$	5,842,699		$	5,128,971		$	21,836,811			18,558,150
Preferred Dividends		2,565,196			2,151,758			9,020,470			8,607,032
Total Fixed Charges	$	8,407,895		$	7,280,729		$	30,857,281		$	27,165,182
Interest Coverage		3.5 x			3.3 x			3.6 x			3.4 x
Fixed Charge Coverage		2.5 x			2.3 x			2.5 x			2.3 x
Net Debt	$	522,283,079		$	446,958,651		$	522,283,079		$	446,958,651
Net Debt Less Securities		448,678,185			392,417,414			448,678,185			392,417,414
Preferred		192,500,000			110,993,750			192,500,000			110,993,750
Annualized EBITDA		82,399,056			66,874,272			77,969,045			63,001,792
Net Debt / EBITDA		6.3 x			6.7 x			6.7 x			7.1 x
Net Debt Less Securities / EBITDA		5.4 x			5.9 x			5.8 x			6.2 x
Net Debt + Preferred / EBITDA		8.7 x			8.3 x			9.2 x			8.9 x
Net Debt Less Securities + Preferred / EBITDA		7.8 x			7.5 x			8.2 x			8.0 x

Fourth Quarter FY 2016 & FY 2016 Supplemental of Monmouth Real Estate Investment Corp. Page 11 of 23

11

				Loans						% of
Fiscal Year Ended	Mortgages			Payable			Total			Total
2017		57,791,871			4,790,684			62,582,555			11.1	%
2018		43,879,833			-0-			43,879,833			7.8	%
2019		47,464,988			-0-			47,464,988			8.4	%
2020		28,808,574			76,000,000			104,808,574			18.5	%
2021		29,255,776			-0-			29,255,776			5.2	%
Thereafter		276,547,111			-0-			276,547,111			49.0	%
Total as of 9/30/2016 (1)	$	483,748,153		$	80,790,684		$	564,538,837			100.0	%
Weighted Average Interest Rate		4.48	%		2.19	%		4.16	%
Weighted Average Term		10.54 yrs			3.84 yrs			9.58 yrs

(1) Does not include Preferred Stock Called for Redemption in the amount of $53,493,750 which was redeemed on October 14, 2016.

Fourth Quarter FY 2016 & FY 2016 Supplemental of Monmouth Real Estate Investment Corp. Page 12 of 23

12

Property Table by Tenant

(unaudited)

Tenant		Property Count			Square Footage			Occupied Square Footage		% of Occupied sf			Annual Rent		% of Total Ann. Rent			Rent Per sf Occup.		Undepreciated Cost			Mortgage Balance
FedEx Ground Package System, Inc.			38			6,160,372			6,160,372		38.5	%	$	45,243,000		49.6	%	$	7.34	$	597,261,416			266,821,635
FedEx Corporation			14			973,413			973,413		6.1	%		5,375,000		5.9	%		5.52		71,871,313			15,854,877
FedEx Supply Chain Services, Inc.			1			449,900			449,900		2.8	%		1,327,000		1.4	%		2.95		14,620,887			6,667,886
Total FedEx			53			7,583,685			7,583,685		47.4	%		51,945,000		56.9	%		6.85	$	683,753,616		$	289,344,398
Milwaukee Electric Tool Corporation			1			861,889			861,889		5.4	%		2,934,000		3.2	%		3.40		36,914,917			25,000,000
ULTA, Inc.			1			671,354			671,354		4.2	%		2,651,000		2.9	%		3.95		37,500,391			22,760,488
Jim Beam Brands Company			1			599,840			599,840		3.7	%		2,013,000		2.2	%		3.36		28,000,000			18,352,289
TreeHouse Private Brands, Inc.			1			558,600			558,600		3.5	%		2,166,000		2.4	%		3.88		26,767,852			16,694,848
CBOCS Distribution, Inc.			1			381,240			381,240		2.4	%		1,420,000		1.6	%		3.72		14,215,126			7,659,116
Best Buy Warehousing Logistics, Inc.			1			368,060			368,060		2.3	%		1,641,000		1.8	%		4.46		19,600,000			10,446,469
The Coca-Cola Company/Western Container Corp.			2			323,358			323,358		2.0	%		1,678,000		1.8	%		5.19		20,504,069			6,662,406
Science Applications International			1			302,400			302,400		1.9	%		1,462,000		1.6	%		4.83		13,340,592			5,605,514
International Paper Company			1			280,000			280,000		1.7	%		1,326,000		1.5	%		4.74		18,294,108			10,648,115
Woodstream Corporation	(C)		1			256,000			256,000		1.6	%		896,000		1.0	%		3.50		8,848,278			-0-
United Technologies Corporation			2			244,317			244,317		1.5	%		1,895,000		2.1	%		7.76		22,537,415			7,960,781
Anda Pharmaceuticals, Inc.			1			234,660			234,660		1.5	%		1,196,000		1.3	%		5.10		14,550,000			8,750,368
UGN, Inc.			1			232,200			232,200		1.5	%		1,050,000		1.1	%		4.52		12,937,000			8,071,987
Caterpillar Logistics Services, Inc.			1			218,120			218,120		1.4	%		1,169,000		1.3	%		5.36		14,868,857			-0-
Anheuser-Busch, Inc.			1			184,800			184,800		1.2	%		806,000		0.9	%		4.36		12,542,814			-0-
Carlisle Tire & Wheel Company			1			179,280			179,280		1.1	%		787,000		0.9	%		4.39		7,225,401			397,513
NF&M International Inc.	(B)		1			174,802			174,802		1.1	%		832,000		0.9	%		4.76		5,337,378			-0-
Home Depot USA, Inc.			1			171,200			171,200		1.1	%		978,000		1.1	%		5.71		11,298,367			-0-
Kellogg Sales Company			3			170,279			170,279		1.1	%		982,000		1.1	%		5.77		12,159,973			2,241,680
Bunzl Distribution Midcentral, Inc.			1			158,417			158,417		1.0	%		741,000		0.8	%		4.68		9,600,000			6,958,091
Victory Packaging, L.P.			1			148,000			148,000		0.9	%		470,000		0.5	%		3.18		5,441,876			-0-
Challenger Lifts, Inc. (Snap-on Inc.)			1			137,500			137,500		0.9	%		835,000		0.9	%		6.07		11,304,000			7,288,891
Altec Industries, Inc.	(C)		1			126,880			126,880		0.8	%		349,000		0.4	%		2.75		4,385,428			-0-
General Electric Company			1			125,860			125,860		0.8	%		1,311,000		1.4	%		10.42		19,950,000			12,700,739
The American Bottling Company			2			110,080			110,080		0.7	%		734,000		0.8	%		6.67		10,498,031			1,934,175
Style Crest, Inc.			1			106,507			106,507		0.7	%		361,000		0.4	%		3.39		7,238,613			-0-
Pittsburgh Glass Works LLC.			1			102,135			102,135		0.6	%		427,000		0.5	%		4.18		4,245,913			-0-
Holland 1916 Inc.			1			95,898			95,898		0.6	%		341,000		0.4	%		3.56		7,397,881			-0-
National Oilwell Varco, Inc.			1			91,295			91,295		0.6	%		746,000		0.8	%		8.17		8,083,107			3,124,904
Joseph T. Ryerson and Son, Inc.			1			89,052			89,052		0.6	%		506,000		0.6	%		5.68		6,932,916			349,658
CHEP USA, Inc.			1			83,000			83,000		0.5	%		494,000		0.5	%		5.95		7,405,447			2,519,243
Datatel Resources Corporation	(B)		1			80,856			80,856		0.5	%		242,000		0.3	%		2.99		2,468,845			-0-
Sherwin-Williams Company			2			78,887			78,887		0.5	%		637,000		0.7	%		8.07		7,244,131			-0-
RGH Enterprises, Inc.			1			75,000			75,000		0.5	%		596,000		0.7	%		7.95		5,525,600			3,786,099
Tampa Bay Grand Prix			1			68,385			68,385		0.4	%		289,000		0.3	%		4.23		5,677,982			-0-
Various Tenants at Retail Shopping Center			1			64,138			64,138		0.4	%		780,000		0.9	%		12.16		3,072,880			-0-
SOFIVE, Inc.			1			60,400			60,400		0.4	%		537,000		0.6	%		8.89		4,903,589			1,898,199
Siemens Real Estate			1			51,130			51,130		0.3	%		473,000		0.4	%		9.25		4,452,425			2,592,182
B/E Aerospace, Inc.			1			38,833			38,833		0.1	%		360,000		0.3	%		9.27		5,100,000			-0-
Keystone Automotive Industries MN, Inc.			1			36,270			36,270		0.1	%		140,000		0.1	%		3.86		2,161,895			-0-
Graybar Electric Company			1			26,340			26,340		0.1	%		109,000		0.1	%		4.14		1,858,591			-0-
Tenant Total as of 9/30/16			98			15,950,947			15,950,947		99.6	%	$	91,305,000		100.0	%	$	5.72	$	1,166,145,304		$	483,748,153
Vacant	(D)		1			59,425			-0-		0.0	%		-0-		0.0	%		-0-		5,157,126			-0-
Total as of 9/30/16			99			16,010,372			15,950,947		99.6	%	$	91,305,000		100.0	%	$	5.72		(A) $1,171,302,430		$	483,748,153
Acquisition Subsequent to 9/30/16
FedEx Ground Package System, Inc.			1			338,584			338,584		2.1	%		2,308,000		2.5	%		6.82		35,100,000			23,500,000
Pro Forma Total with Acquisition Subsequent to 9/30/16			100			16,348,956			16,289,531		99.6	%	$	93,613,000		100.0	%	$	5.75	$	1,206,402,430		$	507,248,153
Disposition Subsequent to 9/30/16
Vacant	(D)		(1	)		(59,425	)		-0-		0.0	%		-0-		0.0	%		-0-		(5,157,126	)		-0-
Pro Forma Total			99			16,289,531			16,289,531		100.0	%	$	93,613,000		100.0	%	$	5.75	$	1,201,245,304		$	507,248,153

(A) Does not include $11,065 of vacant land.

(B) NF&M International and Datatel Resources are located at one property and therefore are counted as one property in the Property Count total.

(C) Woodstream Corporation and Altec Industries, Inc. are located at one property and therefore are counted as one property in the Property Count total.

(D) Our vacant property located in White Bear Lake, MN was sold on 10/27/16.

Fourth Quarter FY 2016 & FY 2016 Supplemental of Monmouth Real Estate Investment Corp. Page 13 of 23

13

Property Table by State  

(unaudited)

State		Property Count			Square Footage			Occupied Square Footage		% of Total sf			Annual Rent		% of Total Ann. Rent			Rent Per sf Occup.		Undepreciated Cost			Mortgage Balance
Florida			11			1,448,215			1,448,215		9.0	%	$	10,290,000		11.3	%		7.11	$	141,434,425		$	68,168,030
Texas			9			1,379,468			1,379,468		8.6	%		10,474,000		11.5	%		7.59		131,532,565			58,081,639
Kentucky			3			1,295,940			1,295,940		8.1	%		5,014,000		5.5	%		3.87		66,071,852			42,336,028
Mississippi			4			1,158,889			1,158,889		7.2	%		4,359,000		4.8	%		3.76		55,224,199			33,750,368
Ohio			7			1,032,469			1,032,469		6.4	%		6,074,000		6.7	%		5.88		72,767,472			28,946,267
Indiana			2			999,176			999,176		6.2	%		4,184,000		4.6	%		4.19		61,446,391			35,050,164
Illinois			9			958,045			958,045		6.0	%		6,192,000		6.8	%		6.46		81,842,244			10,051,077
Tennessee			3			891,777			891,777		5.6	%		3,058,000		3.3	%		3.43		33,848,216			15,878,083
Kansas			4			813,043			813,043		5.1	%		4,641,000		5.1	%		5.71		60,936,352			34,623,651
Missouri			5			804,397			804,397		5.0	%		3,079,000		3.4	%		3.83		39,277,974			9,199,771
North Carolina			3			585,224			585,224		3.7	%		2,909,000		3.2	%		4.97		44,656,386			20,001,944
South Carolina			3			571,115			571,115		3.6	%		3,552,000		3.9	%		6.22		36,368,552			8,596,685
Pennsylvania			3			504,040			504,040		3.1	%		3,036,000		3.3	%		6.02		36,764,873			16,717,886
Michigan			3			489,571			489,571		3.1	%		3,472,000		3.8	%		7.09		41,248,198			16,083,458
Virginia			5			407,265			407,265		2.5	%		2,438,000		2.7	%		5.99		34,480,436			7,840,633
Colorado			3			363,597			363,597		2.3	%		3,040,000		3.3	%		8.36		42,058,523			20,965,637
Georgia			3			307,662			307,662		1.9	%		1,743,000		1.9	%		5.67		22,194,624			774,093
Arizona			1			283,358			283,358		1.8	%		1,346,000		1.5	%		4.75		16,824,226			5,299,383
Wisconsin			2			238,666			238,666		1.5	%		1,369,000		1.5	%		5.74		15,952,361			3,260,401
New York			3			230,381			230,381		1.4	%		1,890,000		2.1	%		8.20		20,382,097			4,129,647
Washington			1			210,445			210,445		1.3	%		1,962,000		2.1	%		9.32		30,210,680			19,881,817
Oklahoma			2			204,580			204,580		1.3	%		1,305,000		1.4	%		6.38		16,328,293			6,336,007
Louisiana			1			175,315			175,315		1.1	%		1,258,000		1.4	%		7.18		18,410,000			12,468,713
Maryland			1			144,523			144,523		0.9	%		1,426,000		1.6	%		9.87		14,512,355			-0-
New Jersey			2			124,538			124,538		0.8	%		1,317,000		1.4	%		12.16		7,976,469			1,898,199
Minnesota	(B)		2			119,823			60,398		0.7	%		372,000		0.4	%		6.18		10,377,126			2,612,978
Nebraska			1			89,115			89,115		0.6	%		446,000		0.5	%		5.00		5,944,691			-0-
Alabama			1			88,653			88,653		0.6	%		590,000		0.6	%		6.66		6,605,131			795,594
Connecticut			1			54,812			54,812		0.3	%		329,000		0.2	%		6.00		3,463,824			-0-
Iowa			1			36,270			36,270		0.3	%		140,000		0.2	%		3.86		2,161,895			-0-
Total as of 9/30/16			99			16,010,372			15,950,947		100.0	%	$	91,305,000		100.0	%	$	5.72		(A) $1,171,302,430		$	483,748,153
Acquisition Subsequent to 9/30/16
New York			1			338,584			338,584		2.1	%		2,308,000		2.5	%		6.82		35,100,000			23,500,000
Pro Forma Total with Acquisition Subsequent to 9/30/16			100			16,348,956			16,289,531		100.0	%	$	93,613,000		100.0	%	$	5.75	$	1,206,402,430		$	507,248,153
Disposition Subsequent to 9/30/16
Minnesota	(B)		(1	)		(59,425	)		-0-		-0-			-0-		-0-			-0-		(5,157,126	)		-0-
Pro Forma Total			99			16,289,531			16,289,531		100.0	%	$	93,613,000		100.0	%	$	5.75	$	1,201,245,304		$	507,248,153

(A) Does not include $11,065 of vacant land.

(B) Our vacant property located in White Bear Lake, MN was sold on 10/27/16.

Fourth Quarter FY 2016 & FY 2016 Supplemental of Monmouth Real Estate Investment Corp. Page 14 of 23

14

Lease Expirations  

(unaudited) 

Fiscal Year		Property Count			Square Footage			% of Total sf			Annual Rent		% of Total Ann. Rent			Rent Per sf Occup.		Lease Exp. Term in Years		Undepreciated  Cost			Mortgage Balance
2017(B)			9			1,038,804			6.5	%	$	6,161,000		6.7	%	$	5.93		0.7	$	74,871,115		$	5,891,210
2018(B)			15			1,324,159			8.3	%		7,760,000		8.5	%		5.86		1.6		90,474,349			15,446,300
2019			9			1,370,849			8.6	%		7,091,000		7.8	%		5.17		2.6		81,415,015			24,554,105
2020			4			383,449			2.4	%		2,102,000		2.3	%		5.48		3.7		27,373,089			349,658
2021			7			684,692			4.3	%		3,335,000		3.7	%		4.87		4.7		46,749,236			8,321,114
2022			7			1,138,320			7.1	%		6,339,000		6.9	%		5.57		5.5		75,756,452			33,611,239
2023			10			1,302,007			8.1	%		8,019,000		8.8	%		6.16		6.8		100,068,191			39,770,922
2024			11			1,743,587			10.9	%		10,579,000		11.6	%		6.07		7.7		130,495,799			47,457,765
2025(B)			9			2,404,478			15.0	%		11,989,000		13.1	%		4.99		8.6		158,659,122			87,202,627
2026			5			748,154			4.7	%		6,182,000		6.8	%		8.26		9.6		86,055,233			45,994,555
2027			3			395,691			2.5	%		2,189,000		2.4	%		5.53		10.6		26,905,640			5,299,383
2028			1			861,889			5.4	%		2,934,000		3.2	%		3.40		11.8		36,914,917			25,000,000
2029			2			262,613			1.6	%		1,513,000		1.7	%		5.76		12.8		21,954,950			9,701,419
2030			4			1,044,832			6.5	%		7,366,000		8.1	%		7.05		13.5		109,094,466			69,838,008
2031			2			624,685			3.9	%		4,800,000		5.1	%		7.69		14.5		69,517,000			48,615,000
2034			1			558,600			3.5	%		2,166,000		2.4	%		3.88		17.1		26,767,850			16,694,848
Various tenants at retail shopping center			1			64,138			0.4	%		780,000		0.9	%		12.16		-0-		3,072,880			-0-
Vacant	(C)		1			59,425			0.4	%		-0-		0.0	%		-0-		-0-		5,157,126			-0-
Total as of 9/30/16			99			16,010,372			100.0	%	$	91,305,000		100.0	%	$	5.72		7.4		(A) $1,171,302,430		$	483,748,153
Acquisition Subsequent to 9/30/16
2031			1			338,584			2.1	%		2,308,000		2.5	%		6.82		14.5		35,100,000			23,500,000
Pro Forma Total with Acquisition Subsequent to 9/30/16			100			16,348,956			100.0	%	$	93,613,000		100.0	%	$	5.75		7.6	$	1,206,402,430		$	507,248,153
Disposition Subsequent to 9/30/16
Vacant	(C)		(1	)		(59,425	)		(0.4	%)		-0-		0.0	%		-0-		-0-		(5,157,126	)		-0-
Pro Forma Total			99			16,289,531			100.0	%	$	93,613,000		100.0	%	$	5.75		7.6	$	1,201,245,304		$	507,248,153

(A) Does not include $11,065 of vacant land.

(B) Included in 2018 is Datatel Resources and included in 2025 is NF&M International which both occupy one property. Included in 2017 is Woodstream Corporation and included in 2018 is Altec Industries which both occupy one property.

(C) Our vacant property located in White Bear Lake, MN was sold on 10/27/16.

Fourth Quarter FY 2016 & FY 2016 Supplemental of Monmouth Real Estate Investment Corp. Page 15 of 23

15

Recent Acquisitions During Fiscal 2016

(unaudited) 

No	Tenant	City (MSA)	State		Fiscal Year Acquisition	Square Footage		Annual Rent		Rent Per sf Occup.		Lease Expiration	Purchase  Price		Initial Mortgage Balance
1	FedEx Ground Package System, Inc.	Concord (Charlotte)		NC	2016		330,717	$	2,078,000	$	6.28	7/31/2025	$	31,975,897	$	20,780,000
2	FedEx Ground Package System, Inc.	Covington (New Orleans)		LA	2016		175,315		1,258,000		7.18	6/30/2025		18,410,000		12,890,000
3	General Electric Company	Imperial (Pittsburgh)		PA	2016		125,860		1,311,000		10.42	12/31/2025		20,032,864		13,000,000
4	FedEx Ground Package System, Inc.	Burlington (Seattle/Everett)		WA	2016		210,445		1,962,000		9.32	8/31/2030		30,662,080		20,221,000
5	FedEx Ground Package System, Inc.	Colorado Springs		CO	2016		225,362		1,832,000		8.13	1/31/2026		28,845,500		18,730,000
6	Challenger Lifts, Inc. (Snap-on Inc.)	Louisville		KY	2016		137,500		835,000		6.07	6/7/2026		11,304,000		7,350,000
7	FedEx Ground Package System, Inc.	Davenport (Orlando)		FL	2016		310,922		2,604,000		8.38	4/30/2031		37,780,000		26,400,000
8	FedEx Ground Package System, Inc.	Olathe (Kansas City)		KS	2016		313,763		2,196,000		7.00	5/31/2031		31,737,000		22,215,000
	Total as of 9/30/16						1,829,884	$	14,076,000	$	7.69		$	210,747,341	$	141,586,000
Acquisition Subsequent to 9/30/16
9	FedEx Ground Package System, Inc.	Hamburg (Buffalo)		NY	2017		338,584	$	2,308,000	$	6.82	3/31/2031	$	35,100,000	$	23,500,000
							338,584	$	2,308,000	$	6.82		$	35,100,000	$	23,500,000

Fourth Quarter FY 2016 & FY 2016 Supplemental of Monmouth Real Estate Investment Corp. Page 16 of 23

16

Property Table

(unaudited)

						Fiscal Year				Square		Annual		Rent Per sf		Lease Exp. Term in		Undepreciated		Mortgage
No	Tenant		City (MSA)	State		Acquisition	Occup.			Footage		Rent		Occup.		Years		Cost		Balance
1	Milwaukee Electric Tool Corporation		Olive Branch (Memphis, TN)		MS	2013		100.0	%		861,889	$	2,934,000	$	3.40		11.8	$	36,914,917	$	25,000,000
2	ULTA, Inc.		Greenwood (Indianapolis)		IN	2015		100.0	%		671,354		2,651,000		3.95		8.8		37,500,391		22,760,488
3	Jim Beam Brands Company		Frankfort		KY	2015		100.0	%		599,840		2,013,000		3.36		8.3		28,000,000		18,352,289
4	TreeHouse Private Brands, Inc.		Buckner (Louisville)		KY	2014		100.0	%		558,600		2,166,000		3.88		17.1		26,767,852		16,694,848
5	FedEx Supply Chain Services, Inc.		Memphis		TN	2010		100.0	%		449,900		1,327,000		2.95		2.7		14,620,887		6,667,886
6	Woodstream Corporation	(B)	St. Joseph		MO	2001		100.0	%		256,000		896,000		3.50		1.0		8,848,278		-0-
	Altec Industries, Inc.	(B)	St. Joseph		MO	2001		100.0	%		126,880		349,000		2.75		1.4		4,385,428		-0-
7	CBOCS Distribution, Inc.		Lebanon (Nashville)		TN	2011		100.0	%		381,240		1,420,000		3.72		7.8		14,215,126		7,659,116
8	Best Buy Warehousing Logistics, Inc.		Streetsboro (Cleveland)		OH	2012		100.0	%		368,060		1,641,000		4.46		5.3		19,600,000		10,446,469
9	FedEx Ground Package System, Inc.		Concord (Charlotte)		NC	2016		100.0	%		330,717		2,078,000		6.28		8.8		31,975,897		20,001,944
10	FedEx Ground Package System, Inc.		Indianapolis		IN	2014		100.0	%		327,822		1,533,000		4.68		7.6		23,946,000		12,289,676
11	FedEx Ground Package System, Inc.		Olathe (Kansas City)		KS	2016		100.0	%		313,763		2,196,000		7.00		14.3		31,737,000		22,215,000
12	FedEx Ground Package System, Inc.		Davenport (Orlando)		FL	2016		100.0	%		310,922		2,604,000		8.38		14.6		37,780,000		26,400,000
13	FedEx Ground Package System, Inc.		Fort Worth (Dallas)		TX	2015		100.0	%		304,608		2,362,000		7.75		13.6		35,300,832		23,431,093
14	Science Applications International		Hanahan (Charleston)		SC	2005		100.0	%		302,400		1,462,000		4.83		2.6		13,340,592		5,605,514
15	FedEx Ground Package System, Inc.		Jacksonville		FL	2015		100.0	%		297,579		1,992,000		6.69		13.3		30,645,954		18,453,112
16	Western Container Corp.		Tolleson (Phoenix)		AZ	2003		100.0	%		283,358		1,346,000		4.75		10.6		16,824,226		5,299,383
17	International Paper Company		Edwardsville (Kansas City)		KS	2014		100.0	%		280,000		1,326,000		4.74		6.9		18,294,108		10,648,115
18	NF&M International	(C)	Monaca (Pittsburgh)		PA	1988		100.0	%		174,802		832,000		4.76		8.3		5,337,378		-0-
	Datatel Resources Corp.	(C)	Monaca (Pittsburgh)		PA	1988		100.0	%		80,856		242,000		2.99		1.2		2,468,845		-0-
19	FedEx Ground Package System, Inc.		Orion		MI	2007		100.0	%		245,633		1,908,000		7.77		6.8		22,885,636		8,580,058
20	Anda Pharmaceuticals, Inc.		Olive Branch (Memphis, TN)		MS	2012		100.0	%		234,660		1,196,000		5.10		5.8		14,550,000		8,750,368
21	UGN, Inc.		Monroe (Cincinnati)		OH	2015		100.0	%		232,200		1,050,000		4.52		13.4		12,937,000		8,071,987
22	FedEx Ground Package System, Inc.		Colorado Springs		CO	2016		100.0	%		225,362		1,832,000		8.13		9.3		28,500,000		18,576,282
23	Caterpillar Logistics Services, Inc.		Griffin (Atlanta)		GA	2006		100.0	%		218,120		1,169,000		5.36		0.2		14,868,857		-0-
24	FedEx Ground Package System, Inc.		Burlington (Seattle/Everett)		WA	2016		100.0	%		210,445		1,962,000		9.32		13.9		30,210,680		19,881,817
25	FedEx Ground Package System, Inc.		Sauget (St. Louis, MO)		IL	2015		100.0	%		198,773		1,036,000		5.21		12.7		15,204,950		9,701,419
26	Anheuser-Busch, Inc.		Granite City (St. Louis, MO)		IL	2001		100.0	%		184,800		806,000		4.36		5.2		12,542,814		-0-
27	United Technologies Corporation		Carrollton (Dallas)		TX	2010		100.0	%		184,317		1,576,000		8.55		2.3		17,769,106		7,960,781
28	FedEx Ground Package System, Inc.		Spring (Houston)		TX	2014		100.0	%		181,176		1,581,000		8.73		8.0		19,283,798		9,126,834
29	Carlisle Tire & Wheel Company		Edwardsville (Kansas City)		KS	2003		100.0	%		179,280		787,000		4.39		1.7		7,225,401		397,513
30	FedEx Ground Package System, Inc.		Ft. Mill (Charlotte, NC)		SC	2010		100.0	%		176,939		1,415,000		8.00		7.1		15,413,307		1,926,986
31	FedEx Ground Package System, Inc.		Covington (New Orleans)		LA	2016		100.0	%		175,315		1,258,000		7.18		8.8		18,410,000		12,468,713
32	FedEx Ground Package System, Inc.		Livonia (Detroit)		MI	2013		100.0	%		172,005		1,194,000		6.94		5.5		13,762,030		7,503,400
33	Home Depot USA, Inc.		Montgomery (Chicago)		IL	2004		100.0	%		171,200		978,000		5.71		3.8		11,298,367		-0-
34	FedEx Ground Package System, Inc.		Tampa		FL	2004		100.0	%		170,779		1,614,000		9.45		9.8		19,696,102		6,633,049
35	FedEx Ground Package System, Inc.		Lindale (Tyler)		TX	2015		100.0	%		163,378		725,000		4.44		7.8		9,930,000		6,378,382
36	Bunzl Distribution Midcentral, Inc.		Kansas City		MO	2015		100.0	%		158,417		741,000		4.68		5.0		9,600,000		6,958,091
37	FedEx Ground Package System, Inc.		Oklahoma City		OK	2012		100.0	%		158,340		1,048,000		6.62		8.8		12,580,262		4,401,832
38	FedEx Ground Package System, Inc.		Waco		TX	2012		100.0	%		150,710		1,078,000		7.15		8.9		12,546,157		4,799,919
39	Victory Packaging, L.P.		Fayetteville		NC	1997		100.0	%		148,000		470,000		3.18		4.4		5,441,876		-0-
40	FedEx Ground Package System, Inc.		Beltsville (Washington, DC)		MD	2001		100.0	%		144,523		1,426,000		9.87		1.8		14,512,355		-0-
41	FedEx Ground Package System, Inc.		El Paso		TX	2006		100.0	%		144,149		1,345,000		9.33		7.0		12,431,193		3,259,726
42	FedEx Ground Package System, Inc.		Cocoa		FL	2008		100.0	%		144,138		1,112,000		7.71		8.0		14,127,449		5,063,864
43	FedEx Ground Package System, Inc.		Cudahy (Milwaukee)		WI	2001		100.0	%		139,564		901,000		6.46		0.7		9,382,361		-0-
44	Challenger Lifts, Inc (Snap-on Inc.)		Louisville		KY	2016		100.0	%		137,500		835,000		6.07		9.7		11,304,000		7,288,891
45	FedEx Ground Package System, Inc.		Richfield (Cleveland)		OH	2006		100.0	%		131,152		1,493,000		11.38		8.0		16,435,478		3,078,731
46	General Electric Company		Imperial (Pittsburgh)		PA	2016		100.0	%		125,860		1,311,000		10.42		9.3		19,950,000		12,700,739
47	FedEx Ground Package System, Inc.		Wheeling (Chicago)		IL	2003		100.0	%		123,000		1,386,000		11.27		0.7		18,537,652		-0-
48	FedEx Ground Package System, Inc.		Altoona		PA	2014		100.0	%		122,522		651,000		5.31		6.9		9,008,650		4,017,147
49	FedEx Ground Package System, Inc.	(E)	Edinburg		TX	2011		100.0	%		113,582		598,000		5.27		5.0		11,423,872		-0-
50	FedEx Corporation		Mechanicsville (Richmond)		VA	2001		100.0	%		112,799		541,000		4.80		6.6		7,758,181		-0-
51	FedEx Corporation		Orlando		FL	2008		100.0	%		110,638		666,000		6.02		1.2		8,554,432		4,342,604
52	Style Crest, Inc.		Winston-Salem		NC	2002		100.0	%		106,507		361,000		3.39		4.5		7,238,613		-0-
53	FedEx Ground Package System, Inc.		Cheektowaga (Buffalo)		NY	2000		100.0	%		104,981		966,000		9.20		2.9		10,960,822		343,548
54	FedEx Ground Package System, Inc.		West Chester Twp (Cincinnati)		OH	1999		100.0	%		103,818		532,000		5.12		6.9		5,728,690		2,071,107
55	FedEx Ground Package System, Inc.		Roanoke		VA	2013		100.0	%		103,402		755,000		7.30		6.6		10,200,000		5,321,390
56	Pittsburgh Glass Works LLC.		O’ Fallon (St. Louis)		MO	1994		100.0	%		102,135		427,000		4.18		1.7		4,245,913		-0-
57	FedEx Ground Package System, Inc.		Green Bay		WI	2013		100.0	%		99,102		468,000		4.72		6.7		6,570,000		3,260,401
58	Holland 1916 Inc.		Liberty (Kansas City)		MO	1998		100.0	%		95,898		341,000		3.56		2.7		7,397,881		-0-
59	FedEx Corporation		Jacksonville		FL	1999		100.0	%		95,883		518,000		5.40		2.7		6,246,401		1,384,194
60	FedEx Corporation		Tampa		FL	2006		100.0	%		95,662		603,000		6.30		1.0		7,592,861		3,900,447

Fourth Quarter FY 2016 & FY 2016 Supplemental of Monmouth Real Estate Investment Corp. Page 17 of 23

17

 Property Table

(unaudited)

						Fiscal Year				Square			Annual		Rent Per sf		Lease Exp. Term in		Undepreciated			Mortgage
No	Tenant		City (MSA)	State		Acquisition	Occup.			Footage			Rent		Occup.		Years		Cost			Balance
61	FedEx Ground Package System, Inc.		Hanahan (Charleston)		SC	2005		100.0	%		91,776		$	675,000	$	7.35		1.8	$	7,614,653		$	1,064,185
62	National Oilwell Varco, Inc.		Houston		TX	2010		100.0	%		91,295			746,000		8.17		6.0		8,083,107			3,124,904
63	FedEx Corporation		Omaha		NE	1999		100.0	%		89,115			446,000		5.00		7.1		5,944,691			-0-
64	Joseph T. Ryerson and Son, Inc.		Elgin (Chicago)		IL	2002		100.0	%		89,052			506,000		5.68		3.3		6,932,916			349,658
65	FedEx Ground Package System, Inc.		Huntsville		AL	2005		100.0	%		88,653			590,000		6.66		9.8		6,605,131			795,594
66	FedEx Ground Package System, Inc.		Ft. Myers		FL	2003		100.0	%		87,500			433,000		4.95		0.7		5,017,447			-0-
67	CHEP USA, Inc.		Roanoke		VA	2007		100.0	%		83,000			494,000		5.95		8.4		7,405,447			2,519,243
68	FedEx Corporation		Bedford Heights (Cleveland)		OH	2007		100.0	%		82,269			408,000		4.96		1.9		6,863,879			2,685,791
69	RGH Enterprises, Inc.		Halfmoon (Albany)		NY	2012		100.0	%		75,000			596,000		7.95		5.2		5,525,600			3,786,099
70	FedEx Corporation		Schaumburg (Chicago)		IL	1997		100.0	%		73,500			483,000		6.57		10.5		4,981,414			-0-
71	FedEx Corporation		Romulus (Detroit)		MI	1998		100.0	%		71,933			370,000		5.14		4.7		4,600,532			-0-
72	FedEx Ground Package System, Inc.		Denver		CO	2005		100.0	%		69,865			564,000		8.07		1.8		6,354,051			1,059,646
73	Tampa Bay Grand Prix		Tampa		FL	2005		100.0	%		68,385			289,000		4.23		4.0		5,677,982			-0-
74	FedEx Ground Package System, Inc.		Colorado Springs		CO	2006		100.0	%		68,370			644,000		9.42		2.0		7,204,472			1,329,709
75	Sherwin-Williams Company		Rockford		IL	2011		100.0	%		66,387			477,000		7.19		7.3		5,551,227			-0-
76	Kellogg Sales Company		Kansas City		MO	2007		100.0	%		65,067			325,000		4.99		1.8		4,800,474			2,241,680
77	Various Tenants at Retail Shopping Center		Somerset		NJ	1970		100.0	%		64,138			780,000		12.16		na		3,072,880			-0-
78	The American Bottling Company		Cincinnati		OH	2015		100.0	%		63,840			477,000		7.47		13.0		6,750,000			-0-
79	FedEx Corporation		Chattanooga		TN	2007		100.0	%		60,637			311,000		5.13		1.1		5,012,203			1,551,081
80	SOFIVE, Inc.		Carlstadt (New York, NY)		NJ	2001		100.0	%		60,400			537,000		8.89		8.3		4,903,589			1,898,199
81	FedEx Ground Package System, Inc.		Stewartville (Rochester)		MN	2013		100.0	%		60,398			372,000		6.16		6.7		5,220,000			2,612,978
82	United Technologies Corporation		Richmond		VA	2004		100.0	%		60,000			319,000		5.32		2.2		4,768,309			-0-
83	Vacant	(D)	White Bear Lake (Minneapolis/St. Paul)		MN	2001		0.00	%		59,425			-0-		na		na		5,157,126			-0-
84	FedEx Ground Package System, Inc.		Augusta		GA	2005		100.0	%		59,358			453,000		7.63		1.7		5,354,035			774,093
85	Kellogg Sales Company		Newington (Hartford)		CT	2001		100.0	%		54,812			329,000		6.00		3.4		3,463,824			-0-
86	Siemens Real Estate		Lebanon (Cincinnati)		OH	2012		100.0	%		51,130			473,000		9.25		2.6		4,452,425			2,592,182
87	Kellogg Sales Company		Orangeburg (New York)		NY	1993		100.0	%		50,400			328,000		6.51		1.4		3,895,675			-0-
88	FedEx Corporation		Charlottesville		VA	1999		100.0	%		48,064			329,000		6.85		0.9		4,348,499			-0-
89	FedEx Ground Package System, Inc.		Corpus Christi		TX	2012		100.0	%		46,253			463,000		10.01		4.9		4,764,500			-0-
90	The American Bottling Company		Tulsa		OK	2014		100.0	%		46,240			257,000		5.56		7.4		3,748,031			1,934,175
91	The Coca-Cola Company		Topeka		KS	2009		100.0	%		40,000			332,000		8.30		5.0		3,679,843			1,363,023
92	B/E Aerospace, Inc.		Rockford		IL	2015		100.0	%		38,833			360,000		9.27		10.8		5,100,000			-0-
93	Keystone Automotive Industries MN, Inc.		Urbandale (Des Moines)		IA	1994		100.0	%		36,270			140,000		3.86		0.5		2,161,895			-0-
94	FedEx Corporation		Richland (Jackson)		MS	1994		100.0	%		36,000			120,000		3.33		7.5		1,900,691			-0-
95	FedEx Corporation		Punta Gorda		FL	2007		100.0	%		34,624			304,000		8.78		0.7		4,113,265			1,990,760
96	FedEx Corporation		Lakeland		FL	2006		100.0	%		32,105			155,000		4.83		1.2		1,982,532			-0-
97	FedEx Corporation		Augusta		GA	2006		100.0	%		30,184			121,000		4.01		6.2		1,971,732			-0-
98	Graybar Electric Company		Ridgeland (Jackson)		MS	1993		100.0	%		26,340			109,000		4.14		2.8		1,858,591			-0-
99	Sherwin-Williams Company		Burr Ridge (Chicago)		IL	1997		100.0	%		12,500			160,000		12.80		5.1		1,692,904			-0-
	Total as of 9/30/16							99.6	%		16,010,372		$	91,305,000	$	5.72		7.4		(A) $1,171,302,430		$	483,748,153
	Acquisition Subsequent to 9/30/16
100	FedEx Ground Package System, Inc.		Hamburg (Buffalo)		NY	2017		100.0	%		338,584			2,308,000		6.82		14.5		35,100,000			23,500,000
	Pro Forma Total with Acquisition Subsequent to 9/30/16							99.6	%		16,348,956		$	93,613,000	$	5.75		7.6	$	1,206,402,430		$	507,248,153
	Disposition Subsequent to 9/30/16
99	Vacant	(D)	White Bear Lake (Minneapolis/St. Paul)		MN	2001		0.00	%		(59,425	)		-0-		na		na		(5,157,126	)		-0-
	Pro Forma Total							100.0	%		16,289,531		$	93,613,000	$	5.75		7.6	$	1,201,245,304		$	507,248,153

(A) Does not include $11,065 of vacant land.

(B) Both tenants occupy one property.

(C) Both tenants occupy one property.

(D) Our vacant property located in White Bear Lake, MN was sold on 10/27/16.

(E) Not reflected above – On October 1, 2016, a 50,741 square foot expansion of the building was completed, resulting in a new 10 year lease which extended the prior lease expiration date from September 2021 to September 2026. Inaddition, the expansion resulted in an increase in annual rent effective from the date of completion of approximately $499,000.

Fourth Quarter FY 2016 & FY 2016 Supplemental of Monmouth Real Estate Investment Corp. Page 18 of 23

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Definitions

 Investors and analysts following the real estate industry utilize funds from operations (“FFO”), core funds from operations (“Core FFO”), net operating income (“NOI”), Same Property NOI, Same Property Cash NOI, earnings before interest, taxes, depreciation and amortization (“EBITDA”) and adjusted funds from operations (“AFFO”), variously defined, as supplemental performance measures. While the Company believes net income available to common stockholders, as defined by accounting principles generally accepted in the United States of America (U.S. GAAP), is the most appropriate measure, it considers NOI, Same Property NOI, Same Property Cash NOI, EBITDA, FFO, Core FFO and AFFO, given their wide use by and relevance to investors and analysts, appropriate supplemental performance measures. FFO, reflecting the assumption that real estate asset values rise or fall with market conditions, principally adjusts for the effects of U.S. GAAP depreciation and amortization of real estate assets. Core FFO reflects the same assumptions as FFO except that is also adjusts for the effects of acquisitions costs. NOI provides a measure of rental operations, and does not factor in depreciation and amortization and non-property specific expenses such as general and administrative expenses. EBITDA provides a tool to further evaluate the ability to incur and service debt and to fund dividends and other cash needs. AFFO provides a tool to further evaluate the ability to fund dividends. In addition, NOI, Same Property NOI, Same Property Cash NOI, EBITDA, FFO, Core FFO and AFFO are commonly used in various ratios, pricing multiples, yields and returns and valuation of calculations used to measure financial position, performance and value.

As used herein, the Company calculates FFO, as defined by The National Association of Real Estate Investment Trusts (NAREIT), to be equal to net income (loss) applicable to common shareholders, as defined by U.S. GAAP, excluding extraordinary items as defined by U.S. GAAP, gains or losses from sales of previously depreciated real estate assets, impairment charges related to depreciable real estate assets, plus certain non-cash items such as real estate asset depreciation and amortization. FFO includes gains and losses realized on securities investments.

NOIis calculated as recurring revenues of the Company, less property expenses such as real estate taxes, repairs and maintenance, property management, utilities, insurance and other expenses. NOI excludes realized gains (losses) on securities transactions.

Same Property NOIis the NOI of all properties owned during the entire periods presented with the exclusion of any properties expanded during the periods presented.

Same Property Cash NOIis the Same Property NOI adjusted to exclude the effects of the U.S. GAAP straight-line rent adjustment for the properties included in the Same Property NOI calculation.

EBITDAis calculated as NOI, less general and administrative expenses, plus dividend and interest income and lease termination income and net effect of net amortization of acquired above or below market lease revenue.

Core FFO is calculated as FFO plus acquisition costs and plus costs associated with the Redemption of Preferred Stock.

AFFOis calculated as EBITDA, minus lease termination income, minus U.S. GAAP interest expense, minus preferred stock dividends, minus recurring capital expenditures and U.S. GAAP straight-line rent adjustment, plus stock compensation expense, plus non-recurring other expense. AFFO excludes realized gains (losses) on securities transactions. Recurring capital expenditures are defined as all capital expenditures, excluding capital expenditures related to expansions at our current locations or capital expenditures that are incurred in conjunction with obtaining a new lease or a lease renewal.

NOI, Same Property NOI, Same Property Cash NOI, EBITDA, FFO, Core FFOandAFFO do not represent cash generated from operating activities in accordance with U.S. GAAP and are not necessarily indicative of cash available to fund cash needs, including the repayment of principal on debt and payment of dividends and distributions. NOI, Same Property NOI, Same Property Cash NOI, EBITDA, FFO, Core FFO and AFFO should not be considered as substitutes for net income applicable to common shareholders (calculated in accordance with U.S. GAAP) as a measure of results of operations or cash flows (calculated in accordance with U.S. GAAP) as a measure of liquidity. NOI, Same Property NOI, Same Property Cash NOI, EBITDA, FFO, Core FFO and AFFO as currently calculated by the Company may not be comparable to similarly titled, but variously calculated, measures of other REITs.

Fourth Quarter FY 2016 & FY 2016 Supplemental of Monmouth Real Estate Investment Corp. Page 19 of 23

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FOR IMMEDIATE RELEASE November 28, 2016

Contact: Susan Jordan

732-577-9996

MONMOUTH REAL ESTATE INVESTMENT CORPORATION REPORTS RESULTS FOR

THE FISCAL YEAR ENDED AND THE FOURTH QUARTER ENDED SEPTEMBER 30, 2016

FREEHOLD, NJ, November 28, 2016........ Monmouth Real Estate Investment Corporation (NYSE:MNR) reported Net Income Attributable to Common Shareholders of $20,532,000 or $0.31 per diluted share for the fiscal year ended September 30, 2016 as compared to $16,999,000 or $0.29 per diluted share for the fiscal year ended September 30, 2015 representing an increase of 6.9%. Core Funds from Operations (Core FFO) were $50,271,000 or $0.77 per diluted share for the fiscal year ended September 30, 2016 as compared to $35,276,000 or $0.60 per diluted share for the fiscal year ended September 30, 2015 representing an increase in Core FFO per share of 28.3%. Adjusted Funds from Operations (AFFO), for the fiscal year ended September 30, 2016 were $45,865,000 or $0.70 per diluted share versus $33,977,000 or $0.57 per diluted share for the fiscal year ended September 30, 2015 representing an increase in AFFO per share of 22.8%.

Net Income Attributable to Common Shareholders for the three months ended September 30, 2016 was $4,685,000 or $0.07 per diluted share as compared to $8,036,000 or $0.13 per diluted share for the three months ended September 30, 2015 representing a decrease in Net Income Attributable to Common Shareholders per share of 46.2%. Core FFO for the three months ended September 30, 2016 was $14,993,000 or $0.22 per diluted share as compared to $9,180,000 or $0.15 per diluted share for the three months ended September 30, 2015 representing an increase in Core FFO per share of 46.7%. AFFO for the three months ended September 30, 2016 was $11,964,000 or $0.18 per diluted share versus $9,159,000 or $0.15 per diluted share for the three months ended September 30, 2015 representing an increase in AFFO per share of 20.0%.

A summary of significant financial information for the three and twelve months ended September 30, 2016 and 2015 is as follows:

	Three Months Ended September 30,
	2016		2015
Rental Revenue	$	22,127,000	$	18,168,000
Reimbursement Revenue	$	3,449,000	$	2,400,000
Net Operating Income (NOI) (1)	$	21,845,000	$	17,732,000
Total Expenses	$	13,943,000	$	10,875,000
Dividend and Interest Income	$	1,566,000	$	853,000
Gain on Sale of Securities Transactions, net	$	3,239,000	$	428,000
Net Income	$	10,193,000	$	10,188,000
Net Income Attributable to Common Shareholders	$	4,685,000	$	8,036,000
Net Income Attributable to Common Shareholders Per Diluted Common Share	$	0.07	$	0.13
Core FFO (1)	$	14,993,000	$	9,180,000
Core FFO per Diluted Common Share (1)	$	0.22	$	0.15
AFFO (1)	$	11,964,000	$	9,159,000
AFFO per Diluted Common Share (1)	$	0.18	$	0.15
Dividends Declared per Common Share	$	0.16	$	0.15
Weighted Avg. Diluted Common Shares Outstanding		68,159,000		60,514,000

	Twelve Months Ended September 30,
	2016		2015
Rental Revenue	$	81,592,000	$	67,059,000
Reimbursement Revenue	$	13,324,000	$	10,716,000
Lease Termination Income	$	-0-	$	239,000
Net Operating Income (NOI) (1)	$	80,187,000	$	65,285,000
Total Expenses	$	49,484,000	$	42,115,000
Dividend and Interest Income	$	5,616,000	$	3,724,000
Gain on Sale of Securities Transactions, net	$	4,399,000	$	805,000
Net Income	$	32,495,000	$	25,606,000
Net Income Attributable to Common Shareholders	$	20,532,000	$	16,999,000
Net Income Attributable to Common Shareholders Per Diluted Common Share	$	0.31	$	0.29
Core FFO (1)	$	50,271,000	$	35,276,000
Core FFO per Diluted Common Share (1)	$	0.77	$	0.60
AFFO (1)	$	45,865,000	$	33,977,000
AFFO per Diluted Common Share (1)	$	0.70	$	0.57
Dividends Declared per Common Share	$	0.64	$	0.60
Weighted Avg. Diluted Common Shares Outstanding		65,558,000		59,201,000

A summary of significant balance sheet information as of September 30, 2016 and 2015 is as follows:

	September 30, 2016		September 30, 2015
Net Real Estate Investments	$	1,022,483,000	$	816,111,000
Securities Available for Sale at Fair Value	$	73,605,000	$	54,541,000
Total Assets	$	1,229,758,000	$	915,992,000
Mortgage Notes Payable	$	483,748,000	$	373,991,000
Loans Payable	$	80,791,000	$	85,041,000
Total Shareholders’ Equity	$	597,858,000	$	446,011,000

Fourth Quarter FY 2016 & FY 2016 Supplemental of Monmouth Real Estate Investment Corp. Page 20 of 23

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Michael P. Landy, President and CEO, commented on the results for the fiscal year 2016,

“Fiscal 2016 was a very productive year for Monmouth. Our Company executed exceptionally well and our achievements were many.

During the year, the Company accomplished the following:

Solid Financial Results

● Generated AFFO per share growth of 23%, representing our third consecutive year of double digit growth

● Increased our common stock dividend by 6.7% on October 1, 2015

● Increased our Gross Revenue by 23% to $100.5 million

● Increased our Net Operating Income by 23% to $80.2 million

Strong Growth Record and Attractive Pipeline

● Acquired 1.8 million square feet of high-quality industrial space for $210.7 million comprising eight brand new, Class A built-to-suit properties, all leased long term to investment grade tenants

● Completed three expansion projects for approximately $13.0 million, adding additional rental space of 261,000 square feet

● Generated 15% year-over-year growth in gross leasable area from acquisitions and expansions

● Entered into commitments to purchase nine new build-to-suit properties containing 2.4 million total square feet, representing approximately $247.5 million scheduled to close over the next several quarters, including one property we acquired subsequent to fiscal yearend

Strong Portfolio Performance

● Renewed all three leases totaling 326,000 square feet that were scheduled to expire in fiscal 2016, resulting in a 100% tenant retention rate for the second consecutive year

● Increased rents on lease renewals by 5.3% on a U.S. GAAP straight-line basis

● Increased our sector leading occupancy rate by 190 basis points from 97.7% to 99.6% at fiscal yearend

● Achieved a 100% occupancy rate subsequent to fiscal yearend

● Extended our weighted average lease maturity from 7.2 years to 7.6 years currently

Strengthened Capitalization

● Reduced our net debt to total market capitalization from 38.0% to 29.1%

● Increased our total market capitalization by 53% to $1.8 billion at fiscal yearend

● Raised $135.0 million in gross proceeds through our new Series C Perpetual Preferred offering at 6.125%

● Raised approximately $72.2 million in equity through our Dividend Reinvestment and Stock Purchase Plan

● Increased and extended our unsecured revolving credit facility from $130 million to $200 million with a $100 million accordion feature, bringing the total potential availability to $300 million

● Extended our weighted average debt maturity from 8.1 years to 9.6 years at fiscal yearend

● Reduced our weighted average interest rate on our fixed rate debt from 4.9% to 4.5%, and

● Generated $4.4 million in net realized gains in addition to the $12.9 million in unrealized gains we held at fiscal yearend on our REIT securities investments.”

Mr. Landy stated, “On behalf of the talented team at Monmouth, I am happy to report these exceptional results. The above metrics reflect a strong Company that has clearly enhanced its position over the year. Our business model of investing in well-located, modern industrial buildings, leased primarily to investment-grade tenants has provided our shareholders with reliable returns throughout the business cycle. The high quality of our portfolio is evidenced by our 100% occupancy rate. Fiscal 2016 marked our fourth year out of the past seven in which Monmouth delivered a 100% tenant retention rate, illustrating the mission-critical nature of our property portfolio. Our substantial AFFO per share growth of 23% this year marks our third consecutive year of double-digit increases for this important metric.”

“During fiscal 2016, we acquired $210.7 million of brand new, Class A built-to-suit properties leased to investment-grade tenants, and completed several building expansions. Approximately 85% of our rental revenue is generated by investment-grade tenants with the remaining 15% secured by unrated but very strong credits as well. Our securities portfolio delivered exceptional results this year, generating $4.4 million in net realized gains in addition to the $12.9 million in unrealized gains we held at fiscal yearend.”

Fourth Quarter FY 2016 & FY 2016 Supplemental of Monmouth Real Estate Investment Corp. Page 21 of 23

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“Our recent $135 million preferred stock offering, combined with our expanded revolving credit facility and our low-levered balance sheet, provide us with the growth capital needed in order to continue to deliver these positive results. Subsequent to fiscal yearend, the Company acquired one brand new built-to-suit property containing 339,000 square feet for $35.1 million and completed a 51,000 square foot building expansion. This brings our current portfolio to a total of 99 properties containing 16.3 million square feet, geographically diversified across 30 states. We are very excited about our best-in-class acquisition pipeline, which now comprises eight new build-to-suit properties containing 2.1 million total square feet, representing approximately $212 million in acquisitions scheduled to close in fiscal 2017 and fiscal 2018.”

“The continued migration toward ecommerce will once again be a leading demand driver for industrial space in 2017. This holiday season is expected to deliver record-breaking results for on-line sales and we are working very closely with some of our tenants in order to continue to capture the growth in consumer spending that is heading our way. We recently launched our new and improved website in order to more accurately portray the transformative growth that Monmouth has enjoyed the past several years. I encourage investors to view it in order to best understand our unique Company. Fiscal 2017 is poised to be another successful year at Monmouth and I look forward to reporting continued progress throughout the year.”

Monmouth Real Estate Investment Corporation will host its Fiscal Year End and Fourth Quarter 2016 Financial Results Webcast and Conference Call on Tuesday, November 29, 2016 at 10:00 a.m. Eastern Time. Senior management will discuss the results, current market conditions and future outlook.

The Company’s Fiscal Year End and Fourth Quarter 2016 financial results being released herein will be available on the Company’s website at www.mreic.reit in the Investor Relations section, under Filings and Reports.

To participate in theWebcast, select the 4Q2016 Webcast and Earnings Call link on the homepage of the Company’s website atwww.mreic.reit, in the Highlights section. Interested parties can also participate viaconference call by calling toll free 877-510-5852 (domestically) or 412-902-4138 (internationally).

The replay of the conference call will be available at 12:00 p.m. Eastern Time on Tuesday, November 29, 2016. It will be available until February 1, 2017, and can be accessed by dialing toll free 877-344-7529 (domestically) and 412-317-0088 (internationally) and entering the passcode 10091370. A transcript of the call and the webcast replay will be available at the Company’s website, www.mreic.reit.

Monmouth Real Estate Investment Corporation, founded in 1968 is one of the oldest public equity REITs in the U.S. The Company specializes in single-tenant, net-leased industrial properties, subject to long-term leases, primarily to investment grade tenants. Monmouth Real Estate Investment Corporation is a fully-integrated and self-managed real estate company, whose property portfolio consists of ninety-nine properties located in thirty states, containing a total of approximately 16.3 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-U.S. 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 and plus costs associated with the Redemption of Preferred Stock. We define AFFO as Core FFO excluding lease termination income, gains or losses on securities transactions, stock based compensation expense, depreciation of corporate office tenant improvements, amortization of deferred financing costs, non-recurring other expense, U.S. GAAP straight-line rent adjustments and less recurring capital expenditures. We define recurring capital expenditures as all capital expenditures, excluding capital expenditures related to expansions at our current locations or capital expenditures that are incurred in conjunction with obtaining a new lease or a lease renewal. 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. However, other REITs may use different methodologies to calculate FFO, Core FFO and AFFO and, accordingly, our FFO, Core FFO and AFFO may not be comparable to all other REITs. 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.

Fourth Quarter FY 2016 & FY 2016 Supplemental of Monmouth Real Estate Investment Corp. Page 22 of 23

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The following is a reconciliation of the Company’s U.S. GAAP Net Income to the Company’s FFO, Core FFO and AFFO for the three and twelve months ended September 30, 2016 and 2015:

	Three Months Ended						Twelve Months Ended
	9/30/2016			9/30/2015			9/30/2016			9/30/2015
Net Income Attributable to Common Shareholders	$	4,685,000		$	8,036,000		$	20,532,000		$	16,999,000
Plus: Depreciation Expense (excluding Corporate Office)		6,541,000			5,328,000			23,932,000			19,626,000
Plus: Amortization of Intangible Assets		264,000			330,000			1,178,000			1,370,000
Plus: Amortization of Capitalized Lease Costs		376,000			265,000			956,000			756,000
Less: Gain on Sale of Real Estate Investment		-0-			(5,021,000	)		-0-			(5,021,000	)
FFO Attributable to Common Shareholders		11,866,000			8,938,000			46,598,000			33,730,000
Plus: Acquisition Costs		185,000			242,000			731,000			1,546,000
Plus: Redemption of Preferred Stock		2,942,000			-0-			2,942,000			-0-
Core FFO Attributable to Common Shareholders		14,993,000			9,180,000			50,271,000			35,276,000
Plus: Stock Compensation Expense		620,000			165,000			926,000			449,000
Plus: Depreciation of Corporate Office Tenant Improvements		35,000			8,000			124,000			80,000
Plus: Amortization of Financing Costs		403,000			678,000			1,116,000			1,286,000
Plus: Non-recurring other expense (1)		-0-			-0-			500,000			-0-
Less: Lease Termination Income		-0-			-0-			-0-			(239,000	)
Less: Gain on Sale of Securities Transactions, net		(3,239,000	)		(428,000	)		(4,399,000	)		(805,000	)
Less: U.S. GAAP Straight-line Rent Adjustment		(538,000	)		(282,000	)		(1,710,000	)		(1,446,000	)
Less: Recurring Capital Expenditures		(310,000	)		(162,000	)		(963,000	)		(624,000	)
AFFO Attributable to Common Shareholders	$	11,964,000		$	9,159,000		$	45,865,000		$	33,977,000

(1) Consists of one-time payroll expenditures.

The following are the Cash Flows provided (used) by Operating, Investing and Financing Activities for the twelve months ended September 30, 2016 and 2015:

	Twelve Months Ended
	9/30/2016			9/30/2015
Operating Activities	$	54,700,000		$	38,062,000
Investing Activities		(227,845,000	)		(194,470,000	)
Financing Activities		256,821,000			148,007,000

# # # # #

Fourth Quarter FY 2016 & FY 2016 Supplemental of Monmouth Real Estate Investment Corp. Page 23 of 23

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