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	8
Capital Structure and Leverage Ratios	9
Debt Maturity	11
Property Table by Tenant	12
Property Table by State	13
Lease Expirations	14
Recent Acquisitions	15
Property Table	16
Definitions	18
Press Release Dated February 8, 2017	19

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 18 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-Q.

Consolidated Balance Sheets

	December 31, 2016			September 30, 2016
	(unaudited)
ASSETS
Real Estate Investments:
Land	$	168,082,315		$	165,375,315
Buildings and Improvements		1,055,810,320			1,005,938,180
Total Real Estate Investments		1,223,892,635			1,171,313,495
Accumulated Depreciation		(154,847,979	)		(148,830,169	)
Net Real Estate Investments		1,069,044,656			1,022,483,326
Cash and Cash Equivalents		30,722,606			95,749,508
Securities Available for Sale at Fair Value		74,321,496			73,604,894
Tenant and Other Receivables		2,289,863			1,444,824
Deferred Rent Receivable		7,226,370			6,917,431
Prepaid Expenses		7,476,019			4,830,987
Capitalized Lease Costs, net of Accumulated Amortization of $3,443,958 and $3,238,516, respectively		4,040,326			4,165,268
Intangible Assets, net of Accumulated Amortization of $12,600,446 and $12,332,599, respectively		5,999,845			5,816,153
Financing Costs, net of Accumulated Amortization of $339,167 and $246,678, respectively		1,156,096			1,245,923
Other Assets		7,402,948			7,227,571
TOTAL ASSETS	$	1,209,680,225		$	1,223,485,885
LIABILITIES AND SHAREHOLDERS’ EQUITY
Liabilities:
Fixed Rate Mortgage Notes Payable, net of Unamortized Debt Issuance Costs	$	505,574,117		$	477,476,010
Loans Payable		76,000,000			80,790,684
Accounts Payable and Accrued Expenses		2,781,619			3,998,771
Other Liabilities		14,186,980			9,868,572
Preferred Stock Called for Redemption		-0-			53,493,750
Total Liabilities		598,542,716			625,627,787
COMMITMENTS AND CONTINGENCIES
Shareholders’ Equity:
7.875% Series B Cumulative Redeemable Preferred Stock, $0.01 Par Value Per Share: 2,300,000 Shares Authorized, Issued and Outstanding as of December 31, 2016 and September 30, 2016		57,500,000			57,500,000
6.125% Series C Cumulative Redeemable Preferred Stock, $0.01 Par Value Per Share: 5,400,000 Shares Authorized, Issued and Outstanding as of December 31, 2016 and September 30, 2016		135,000,000			135,000,000
Common Stock - $0.01 Par Value Per Share: 196,739,750 and 194,600,000 Shares Authorized as of December 31, 2016 and September 30, 2016, respectively; 70,536,720 and 68,920,972 Shares Issued and Outstanding as of December 31, 2016 and September 30, 2016, respectively		705,367			689,210
Excess Stock – $0.01 Par Value Per Share: 200,000,000 Shares Authorized as of December 31, 2016 and September 30, 2016; No Shares Issued or Outstanding as of December 31, 2016 and September 30, 2016		-0-			-0-
Additional Paid-In Capital		407,737,024			391,726,621
Accumulated Other Comprehensive Income		10,195,118			12,942,267
Undistributed Income		-0-			-0-
Total Shareholders’ Equity		611,137,509			597,858,098
TOTAL LIABILITIES & SHAREHOLDERS’ EQUITY	$	1,209,680,225		$	1,223,485,885

First Quarter FY 2017 Supplemental of Monmouth Real Estate Investment Corp. Page 3 of 21

Consolidated Statements of Income

(unaudited)

	Three Months Ended
	12/31/2016			12/31/2015
INCOME:
Rental Revenue	$	23,280,856		$	19,064,919
Reimbursement Revenue		3,900,755			3,194,443
TOTAL INCOME		27,181,611			22,259,362
EXPENSES:
Real Estate Taxes		2,906,981			2,372,136
Operating Expenses		1,294,468			1,231,365
General & Administrative Expenses		1,442,463			1,335,964
Acquisition Costs		178,526			145,585
Depreciation		6,992,495			5,595,432
Amortization of Capitalized Lease Costs and Intangible Assets		447,797			486,611
TOTAL EXPENSES		13,262,730			11,167,093
OTHER INCOME (EXPENSE):
Dividend and Interest Income		1,292,151			1,184,653
Gain on Sale of Securities Transactions, net		806,108			8,380
Interest Expense, including Amortization of Financing Costs		(6,163,219	)		(5,346,647	)
TOTAL OTHER INCOME (EXPENSE)		(4,064,960	)		(4,153,614	)
NET INCOME		9,853,921			6,938,655
Less: Preferred Dividends		3,697,760			2,151,758
NET INCOME ATTRIBUTABLE TO COMMON SHAREHOLDERS	$	6,156,161		$	4,786,897

First Quarter FY 2017 Supplemental of Monmouth Real Estate Investment Corp. Page 4 of 21

NOI, EBITDA, FFO, Core FFO and AFFO Reconciliations

(unaudited)

	Three Months Ended
	12/31/2016			12/31/2015
Revenues
Rental Revenue	$	23,280,856		$	19,064,919
Reimbursement Revenue		3,900,755			3,194,443
Total Rental and Reimbursement Revenue		27,181,611			22,259,362
Expenses
Real Estate Taxes		2,906,981			2,372,136
Operating Expenses		1,294,468			1,231,365
Total Expenses		4,201,449			3,603,501
Net Operating Income – NOI		22,980,162			18,655,861
Dividend and Interest Income		1,292,151			1,184,653
Net Amortization of Acquired Above and Below Market Lease Revenue		25,492			25,492
Loss on Sale of Real Estate Investment		95,336			-0-
General & Administrative Expenses		(1,442,463	)		(1,335,964	)
EBITDA		22,950,678			18,530,042
Gain on Sale of Securities Transactions, net		806,108			8,380
Interest Expense, including Amortization of Financing Costs		(6,163,219	)		(5,346,647	)
Preferred Dividends		(3,697,760	)		(2,151,758	)
Acquisition Costs		(178,526	)		(145,585	)
Depreciation of Corporate Office Tenant Improvements		(38,715	)		(27,971	)
Funds From Operations – FFO		13,678,566			10,866,461
Depreciation (excluding Corporate Office Tenant Improvements)		(6,953,780	)		(5,567,461	)
Amortization of Capitalized Lease Costs and Intangible Assets		(473,289	)		(512,103	)
Loss on Sale of Real Estate Investment		(95,336	)		-0-
Net Income Attributable to Common Shareholders		6,156,161			4,786,897
Funds From Operations – FFO		13,678,566			10,866,461
Acquisition Costs		178,526			145,585
Core Funds From Operations - Core FFO		13,857,092			11,012,046
Amortization of Financing Costs		280,913			234,367
Stock Compensation Expense		100,155			104,961
Depreciation of Corporate Office Tenant Improvements		38,715			27,971
Gain on Sale of Securities Transactions, net		(806,108	)		(8,380	)
Effect of Non-cash U.S. GAAP Straight-line Rent Adjustment		(343,239	)		(309,665	)
Recurring Capital Expenditures		(188,412	)		(336,191	)
Adjusted Funds From Operations – AFFO		12,939,116			10,725,109
EBITDA		22,950,678			18,530,042
Stock Compensation Expense		100,155			104,961
Interest Expense, excluding Amortization of Financing Costs		(5,882,306	)		(5,112,280	)
Preferred Dividends		(3,697,760	)		(2,151,758	)
Effect of Non-cash U.S. GAAP Straight-line Rent Adjustment		(343,239	)		(309,665	)
Recurring Capital Expenditures		(188,412	)		(336,191	)
Adjusted Funds From Operations - AFFO	$	12,939,116		$	10,725,109

First Quarter FY 2017 Supplemental of Monmouth Real Estate Investment Corp. Page 5 of 21

Financial Highlights

(unaudited)

	Three Months Ended
	12/31/2016		12/31/2015
Weighted Average Common Shares Outstanding
Basic		69,686,153		62,866,898
Diluted		69,829,793		62,948,800
Net Operating Income – NOI	$	22,980,162	$	18,655,861
Basic	$	0.33	$	0.30
Diluted		0.33		0.30
Net Income Attributable to Common Shareholders	$	6,156,161	$	4,786,897
Basic	$	0.09	$	0.08
Diluted		0.09		0.08
Funds From Operations – FFO	$	13,678,566	$	10,866,461
Basic	$	0.20	$	0.17
Diluted		0.20		0.17
Core Funds From Operations - Core FFO	$	13,857,092	$	11,012,046
Basic	$	0.20	$	0.18
Diluted		0.20		0.17
Core FFO Excluding Gains on Securities Transactions, net	$	13,050,984	$	11,003,666
Basic	$	0.19	$	0.18
Diluted		0.19		0.17
Adjusted Funds From Operations – AFFO	$	12,939,116	$	10,725,109
Basic	$	0.19	$	0.17
Diluted		0.19		0.17
Dividends Declared per Common Share	$	0.16	$	0.16

First Quarter FY 2017 Supplemental of Monmouth Real Estate Investment Corp. Page 6 of 21

Same Property Statistics

	Three Months Ended
	12/31/2016				12/31/2015			Change		Change %
Total Square Feet / Total Properties		16,553,910/100				14,424,995/93			2,128,915		14.8	%
Occupancy Percentage at Quarter End		100.0	%			98.8	%		120 bps		1.2	%
Same Property Square Feet / Number of Same Properties				12,886,242/86
Same Property Occupancy Percentage at Quarter End		100.0	%			99.1	%		90 bps		0.9	%
Same Property Net Operating Income (NOI) (GAAP)	$	17,368,879			$	16,966,989		$	401,890		2.4	%
Reversal of Effect of Non-cash U.S. GAAP Straight-line Rent Adjustment		(186,632	)			(300,551	)		113,919
Same Property Cash NOI (Cash)	$	17,182,247			$	16,666,438		$	515,809		3.1	%

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

The 2.4% increase, amounting to $401,890 in Same Property NOI, consists of 17% or $69,066 derived from increased NOI from occupied properties and the remaining 83% or $332,824 attributable to increased NOI from leasing previously vacant properties.

The 3.1% increase, amounting to $515,809 in Same Property Cash NOI, consists of 28% or $144,113 derived from increased NOI from occupied properties and the remaining 72% or $371,696 attributable to increased NOI from leasing previously vacant properties.

Reconciliation of Same Property NOI to Total NOI

	Three Months Ended
	12/31/2016			12/31/2015			Change		Change %
Same Property NOI (GAAP)	$	17,368,879		$	16,966,989		$	401,890		2.4	%
NOI of properties purchased subsequent to October 1, 2015 (two properties for fiscal 2017 and eight properties for fiscal 2016)		4,135,151			642,443
NOI of properties expanded subsequent to October 1, 2015 (four properties for fiscal 2017 and 2016)		1,590,169			1,091,493
NOI of property sold subsequent to October 1, 2015 (one property sold during fiscal 2017)		(114,037	)		(45,064	)
Total NOI	$	22,980,162		$	18,655,861		$	4,324,301		23.2	%

First Quarter FY 2017 Supplemental of Monmouth Real Estate Investment Corp. Page 7 of 21

Consolidated Statements of Cash Flows

(unaudited)

	Three Months Ended
	12/31/2016			12/31/2015
CASH FLOWS FROM OPERATING ACTIVITIES
Net Income	$	9,853,921		$	6,938,655
Noncash Items Included in Net Income:
Depreciation & Amortization		7,721,205			6,316,410
Stock Compensation Expense		100,155			104,961
Gain on Sale of Securities Transactions, net		(806,108	)		(8,380	)
Loss on Sale of Real Estate Investment		95,336			-0-
Changes in:
Tenant, Deferred Rent & Other Receivables		(598,700	)		(898,233	)
Prepaid Expenses		(2,645,032	)		(2,594,298	)
Other Assets and Capitalized Lease Costs		(428,282	)		(203,940	)
Accounts Payable, Accrued Expenses & Other Liabilities		860,211			1,981,853
NET CASH PROVIDED BY OPERATING ACTIVITIES		14,152,706			11,637,028
CASH FLOWS FROM INVESTING ACTIVITIES
Purchase of Real Estate and Intangible Assets		(56,101,538	)		(50,385,897	)
Capital Improvements		(696,941	)		(860,167	)
Proceeds on Sale of Real Estate		4,125,819			-0-
Return of Deposits on Real Estate		1,000,000			900,000
Deposits Paid on Acquisitions of Real Estate		(820,000	)		(550,000	)
Proceeds from Sale of Securities Available for Sale		3,738,938			1,790,403
Purchase of Securities Available for Sale		(6,396,581	)		(6,491,654	)
NET CASH USED IN INVESTING ACTIVITIES		(55,150,303	)		(55,597,315	)
CASH FLOWS FROM FINANCING ACTIVITIES
Net (Repayments) Proceeds from Loans Payable		(4,790,684	)		14,938,116
Proceeds from Fixed Rate Mortgage Notes Payable		38,000,000			33,670,000
Principal Payments on Fixed Rate Mortgage Notes Payable		(9,456,016	)		(6,941,017	)
Financing Costs Paid on Debt		(636,963	)		(404,674	)
Proceeds from the Exercise of Stock Options		-0-			924,300
Redemption of Series A Preferred Stock		(53,493,750	)		-0-
Proceeds from Issuance of Common Stock in the DRIP, net of Dividend Reinvestments		18,877,487			12,575,537
Preferred Dividends Paid		(3,422,136	)		(2,151,758	)
Common Dividends Paid, net of Reinvestments		(9,107,243	)		(7,797,202	)
NET CASH (USED IN) PROVIDED BY FINANCING ACTIVITIES		(24,029,305	)		44,813,302
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS		(65,026,902	)		853,015
CASH AND CASH EQUIVALENTS - BEGINNING OF PERIOD		95,749,508			12,073,909
CASH AND CASH EQUIVALENTS - END OF PERIOD	$	30,722,606		$	12,926,924

First Quarter FY 2017 Supplemental of Monmouth Real Estate Investment Corp. Page 8 of 21

Capital Structure and Leverage Ratios

(unaudited)

	As of			As of			As of
	12/31/2016			12/31/2015			9/30/2016
Fixed Rate Mortgage Notes Payable, Net of Unamortized Debt Costs	$	505,574,117		$	395,406,853		$	477,476,010
Loans Payable		76,000,000			99,979,502			80,790,684
Preferred Stock Called for Redemption		-0-			-0-			53,493,750
Total Debt		581,574,117			495,386,355			611,760,444
7.625% Series A Cumul. Redeemable Preferred		-0-			53,493,750			-0-
7.875% Series B Cumul. Redeemable Preferred		57,500,000			57,500,000			57,500,000
6.125% Series C Cumul. Redeemable Preferred		135,000,000			-0-			135,000,000
Total Preferred Stock		192,500,000			110,993,750			192,500,000
Common Stock, Paid-In-Capital & Other		418,637,509			347,393,146			405,358,098
Total Shareholders’ Equity		611,137,509			458,386,896			597,858,098
Total Book Capitalization		1,192,711,626			953,773,251			1,209,618,542
Accumulated Depreciation		154,847,979			130,573,643			148,830,169
Total Undepreciated Book Capitalization	$	1,347,559,605		$	1,084,346,894		$	1,358,448,711
Shares Outstanding		70,536,720			63,790,755			68,920,972
Market Price Per Share	$	15.24		$	10.46		$	14.27
Equity Market Capitalization	$	1,074,979,613		$	667,251,297		$	983,502,270
Total Debt		581,574,117			495,386,355			611,760,444
Preferred		192,500,000			110,993,750			192,500,000
Total Market Capitalization	$	1,849,053,730		$	1,273,631,402		$	1,787,762,714
Total Debt	$	581,574,117		$	495,386,355		$	611,760,444
less: Cash and Cash Equivalents		30,722,606			12,926,924			95,749,508
Net Debt	$	550,851,511		$	482,459,431		$	516,010,936
less: Securities Available for Sale at Fair Value (Securities)		74,321,496			61,032,630			73,604,894
Net Debt Less Securities	$	476,530,015		$	421,426,801		$	442,406,042
Net Debt / Undepreciated Book Capitalization		40.9	%		44.5	%		38.0	%
Net Debt / Total Market Capitalization		29.8	%		37.9	%		28.9	%
Net Debt Plus Preferred / Total Market Capitalization		40.2	%		46.6	%		39.6	%
Net Debt Less Securities / Undepreciated Book Capitalization		35.4	%		38.9	%		32.6	%
Net Debt Less Securities / Total Market Capitalization		25.8	%		33.1	%		24.7	%
Net Debt Less Securities Plus Preferred / Total Market Capitalization		36.2	%		41.8	%		35.5	%
Weighted Average Interest Rate on Fixed Rate Debt		4.44	%		4.77	%		4.49	%

First Quarter FY 2017 Supplemental of Monmouth Real Estate Investment Corp. Page 9 of 21

Capital Structure and Leverage Ratios continued

(unaudited)

							Fiscal Year
	Three Months Ended						Ended
	12/31/2016			12/31/2015			9/30/2016
Net Income	$	9,853,921		$	6,938,655		$	32,494,507
plus: Depreciation & Amortization		7,440,292			6,082,043			26,087,680
plus: Interest Expense, including Amortization of Financing Costs		6,163,219			5,346,647			22,953,049
plus: Acquisition Costs		178,526			145,585			730,441
plus: Net Amortization of Acquired Above and Below Market Lease Revenue		25,492			25,492			101,967
plus: Loss on Sale of Real Estate Investment		95,336			-0-			-0-
less: Gain on Sale of Securities Transactions, net		(806,108	)		(8,380	)		(4,398,599	)
EBITDA	$	22,950,678		$	18,530,042		$	77,969,045
Interest Expense, including Amortization of Financing Costs	$	6,163,219		$	5,346,647		$	22,953,049
Preferred Dividends		3,697,760			2,151,758			9,020,470
Total Fixed Charges	$	9,860,979		$	7,498,405		$	31,973,519
Interest Coverage		3.7x			3.5x			3.4x
Fixed Charge Coverage		2.3x			2.5x			2.4x
Net Debt	$	550,851,511		$	482,459,431		$	516,010,936
Net Debt Less Securities		476,530,015			421,426,801			442,406,042
Preferred		192,500,000			110,993,750			192,500,000
Annualized EBITDA		91,802,712			74,120,168			77,969,045
Net Debt / EBITDA		6.0x			6.5x			6.6x
Net Debt Less Securities / EBITDA		5.2x			5.7x			5.7x
Net Debt + Preferred / EBITDA		8.1x			8.0x			9.1x
Net Debt Less Securities + Preferred / EBITDA		7.3x			7.2x			8.1x

First Quarter FY 2017 Supplemental of Monmouth Real Estate Investment Corp. Page 10 of 21

Debt Maturity

(unaudited)

				Loans						% of
Fiscal Year Ended	Mortgages			Payable			Total			Total
2017	$	50,254,026		$	-0-		$	50,254,026			8.5	%
2018		46,360,505			-0-			46,360,505			7.9	%
2019		50,046,005			-0-			50,046,005			8.5	%
2020		31,493,045			76,000,000			107,493,045			18.3	%
2021		32,048,340			-0-			32,048,340			5.4	%
Thereafter		302,090,216			-0-			302,090,216			51.4	%
Total as of 12/31/2016	$	512,292,137	(A)	$	76,000,000		$	588,292,137			100.0	%
Weighted Average Interest Rate		4.44	%		2.25	%		4.16	%
Weighted Average Term		10.69 yrs			3.80 yrs			9.80 yrs

(A) Does not include unamortized debt issuance costs of $6,718,020.

First Quarter FY 2017 Supplemental of Monmouth Real Estate Investment Corp. Page 11 of 21

Property Table by Tenant

(unaudited)

		Property		Square		Occupied Square		% of Occupied			Annual		% of Total			Rent Per		Undepreciated		Mortgage
Tenant		Count		Footage		Footage		sf			Rent		Ann. Rent			sf Occup.		Cost		Balance
FedEx Ground Package System, Inc.			40		6,763,253		6,763,253		40.9	%	$	49,624,000		51.7	%	$	7.34	$	654,680,970	$	300,191,274
FedEx Corporation			14		973,413		973,413		5.9	%		5,372,000		5.6	%		5.52		72,141,280		14,215,928
FedEx Supply Chain Services, Inc.			1		449,900		449,900		2.7	%		1,327,000		1.4	%		2.95		14,620,887		6,474,875
Total FedEx			55		8,186,566		8,186,566		49.5	%		56,323,000		58.7	%		6.88		741,443,137		320,882,077
Milwaukee Electric Tool Corporation			1		861,889		861,889		5.2	%		3,010,000		3.1	%		3.49		36,914,917		24,724,274
ULTA, Inc.			1		671,354		671,354		4.1	%		2,677,000		2.8	%		3.99		37,500,391		22,446,303
Jim Beam Brands Company			1		599,840		599,840		3.6	%		2,032,000		2.1	%		3.39		28,000,000		18,165,278
TreeHouse Private Brands, Inc.			1		558,600		558,600		3.4	%		2,186,000		2.3	%		3.91		26,767,852		16,527,462
CBOCS Distribution, Inc.			1		381,240		381,240		2.3	%		1,433,000		1.5	%		3.76		14,215,126		7,607,499
Best Buy Warehousing Logistics, Inc.			1		368,060		368,060		2.2	%		1,660,000		1.7	%		4.51		19,600,000		10,310,322
The Coca-Cola Company (Western Container Corporation)			2		323,358		323,358		2.0	%		1,684,000		1.8	%		5.21		20,504,069		6,412,366
Science Applications International			1		302,400		302,400		1.8	%		1,476,000		1.5	%		4.88		13,340,592		5,518,107
International Paper Company			1		280,000		280,000		1.7	%		1,337,000		1.4	%		4.78		18,294,108		10,471,218
Woodstream Corporation	(B)		1		256,000		256,000		1.5	%		896,000		0.9	%		3.50		8,857,758		-0-
United Technologies Corporation			2		244,317		244,317		1.5	%		1,896,000		2.0	%		7.76		22,537,415		7,783,521
Anda Pharmaceuticals, Inc.			1		234,660		234,660		1.4	%		1,200,000		1.2	%		5.11		14,550,000		8,608,235
UGN, Inc.			1		232,200		232,200		1.4	%		1,060,000		1.1	%		4.57		12,937,000		7,957,643
Caterpillar Logistics Services, Inc.			1		218,120		218,120		1.3	%		1,169,000		1.2	%		5.36		14,868,857		-0-
Anheuser-Busch, Inc.			1		184,800		184,800		1.1	%		810,000		0.8	%		4.38		12,542,814		-0-
Carlisle Tire & Wheel Company			1		179,280		179,280		1.1	%		787,000		0.8	%		4.39		7,225,401		267,437
NF&M International Inc.	(A)		1		174,802		174,802		1.1	%		833,000		0.9	%		4.77		5,350,762		-0-
Home Depot USA, Inc.			1		171,200		171,200		1.0	%		988,000		1.0	%		5.77		11,298,367		-0-
Kellogg Sales Company			3		170,279		170,279		1.0	%		982,000		1.0	%		5.77		12,159,973		2,205,264
Bunzl Distribution Midcentral, Inc.			1		158,417		158,417		1.0	%		747,000		0.8	%		4.72		9,612,992		6,919,049
Victory Packaging, L.P.			1		148,000		148,000		0.9	%		496,000		0.5	%		3.35		5,441,876		-0-
Challenger Lifts, Inc. (Snap-On Inc.)			1		137,500		137,500		0.8	%		831,000		0.9	%		6.04		11,304,000		7,196,512
Altec Industries, Inc.	(B)		1		126,880		126,880		0.8	%		349,000		0.4	%		2.75		4,390,126		-0-
General Electric Company			1		125,860		125,860		0.8	%		1,315,000		1.4	%		10.45		19,950,000		12,519,001
The American Bottling Company (Dr Pepper Snapple)			2		110,080		110,080		0.7	%		739,000		0.8	%		6.71		10,498,034		1,904,294
Style Crest, Inc.			1		106,507		106,507		0.6	%		381,000		0.4	%		3.58		7,238,613		-0-
Pittsburgh Glass Works, LLC			1		102,135		102,135		0.6	%		427,000		0.4	%		4.18		4,245,913		-0-
Holland 1916 Inc.			1		95,898		95,898		0.6	%		345,000		0.4	%		3.60		7,397,881		3,018,740
National Oilwell Varco, Inc.			1		91,295		91,295		0.6	%		750,000		0.8	%		8.22		8,083,107		220,431
Joseph T. Ryerson and Son, Inc.			1		89,052		89,052		0.5	%		506,000		0.5	%		5.68		6,932,916		2,441,685
CHEP USA, Inc.			1		83,000		83,000		0.5	%		497,000		0.5	%		5.99		7,405,447		-0-
Datatel Resources Corporation	(A)		1		80,856		80,856		0.5	%		243,000		0.3	%		3.01		2,475,036		-0-
Sherwin-Williams Company			2		78,887		78,887		0.5	%		640,000		0.7	%		8.11		7,244,128		-0-
RGH Enterprises, Inc.			1		75,000		75,000		0.5	%		601,000		0.6	%		8.01		5,525,600		3,759,922
Tampa Bay Grand Prix			1		68,385		68,385		0.4	%		293,000		0.3	%		4.28		5,677,982		-0-
Various Tenants at Retail Shopping Center			1		64,220		64,220		0.4	%		826,000		0.9	%		12.86		3,072,880		-0-
SOFIVE, Inc.			1		60,400		60,400		0.3	%		548,000		0.6	%		9.07		4,903,589		1,860,244
Siemens Real Estate			1		51,130		51,130		0.2	%		479,000		0.5	%		9.37		4,452,425		2,565,253
B/E Aerospace, Inc.			1		38,833		38,833		0.2	%		362,000		0.3	%		9.32		5,100,000		-0-
Keystone Automotive Industries MN, Inc.			1		36,270		36,270		0.2	%		141,000		0.1	%		3.89		2,161,895		-0-
Graybar Electric Company			1		26,340		26,340		0.2	%		109,000		0.1	%		4.14		1,858,591		-0-
Tenant Total as of 12/31/16			100		16,553,910		16,553,910		100.0	%	$	96,064,000		100.0	%	$	5.80	$	1,223,881,570	$	512,292,137	(C)

(A)	NF&M International and Datatel Resources are located at one property and therefore are counted as one property in the Property Count total.
(B)	Woodstream Corporation and Altec Industries, Inc. are located at one property and therefore are counted as one property in the Property Count total.
	Other then these two properties indicated in footnotes (A) and (B) and the one retail property, all other properties are single-tenant.
(C)	Does not include unamortized debt issuance costs of $6,718,020.

First Quarter FY 2017 Supplemental of Monmouth Real Estate Investment Corp. Page 12 of 21

Property Table by State

(unaudited)

	Property		Square		Occupied Square		% of Total			Annual		% of Total			Rent Per		Undepreciated		Mortgage
State	Count		Footage		Footage		sf			Rent		Ann. Rent			sf Occup.		Cost		Balance
Florida		12		1,661,887		1,661,887		10.0	%	$	11,677,000		12.2	%		7.03	$	162,332,273	$	80,285,836
Texas		9		1,430,093		1,430,093		8.6	%		10,988,000		11.4	%		7.68		132,147,706		57,081,343
Kentucky		3		1,295,940		1,295,940		7.8	%		5,049,000		5.3	%		3.90		66,071,852		41,889,251
Mississippi		4		1,158,889		1,158,889		7.0	%		4,439,000		4.6	%		3.83		55,224,199		33,332,510
Ohio		7		1,032,469		1,032,469		6.2	%		6,116,000		6.4	%		5.92		72,767,470		28,475,189
Indiana		2		999,176		999,176		6.0	%		4,210,000		4.4	%		4.21		61,446,391		34,512,424
Illinois		9		958,045		958,045		5.8	%		6,208,000		6.5	%		6.48		82,018,856		9,785,051
Tennessee		3		891,777		891,777		5.4	%		3,071,000		3.2	%		3.44		33,852,531		15,575,476
Kansas		4		813,043		813,043		4.9	%		4,652,000		4.8	%		5.72		60,936,352		33,984,752
Missouri		5		804,397		804,397		4.9	%		3,089,000		3.2	%		3.84		39,305,146		9,124,313
North Carolina		3		585,224		585,224		3.5	%		3,112,000		3.2	%		5.32		45,725,286		19,737,541
South Carolina		3		571,115		571,115		3.5	%		3,566,000		3.7	%		6.24		36,368,552		8,296,779
New York		4		568,965		568,965		3.4	%		4,204,000		4.4	%		7.39		55,232,098		27,431,149
Pennsylvania		3		504,040		504,040		3.0	%		3,042,000		3.2	%		6.04		36,784,448		16,443,967
Michigan		3		489,571		489,571		3.0	%		3,472,000		3.6	%		7.09		41,315,172		15,803,959
Virginia		5		407,265		407,265		2.5	%		2,442,000		2.5	%		6.00		34,484,117		7,651,153
Colorado		3		363,597		363,597		2.2	%		3,040,000		3.2	%		8.36		42,058,524		20,586,631
Georgia		3		307,662		307,662		1.9	%		1,743,000		1.8	%		5.67		22,200,671		722,275
Arizona		1		283,358		283,358		1.7	%		1,352,000		1.4	%		4.77		16,824,226		5,108,670
Wisconsin		2		238,666		238,666		1.4	%		1,369,000		1.4	%		5.74		15,952,361		3,185,585
Washington		1		210,445		210,445		1.3	%		1,962,000		2.0	%		9.32		30,210,680		19,624,696
Oklahoma		2		204,580		204,580		1.2	%		1,308,000		1.4	%		6.39		16,328,294		6,187,540
Louisiana		1		175,315		175,315		1.1	%		1,260,000		1.3	%		7.19		18,410,000		12,307,758
Maryland		1		144,523		144,523		0.9	%		1,426,000		1.5	%		9.87		14,512,355		-0-
New Jersey		2		124,620		124,620		0.8	%		1,374,000		1.4	%		11.03		7,976,469		1,860,244
Nebraska		1		89,115		89,115		0.5	%		446,000		0.5	%		5.00		5,944,691		-0-
Alabama		1		88,653		88,653		0.5	%		605,000		0.6	%		6.82		6,605,131		745,022
Minnesota		1		60,398		60,398		0.4	%		372,000		0.4	%		6.16		5,220,000		2,553,023
Connecticut		1		54,812		54,812		0.3	%		329,000		0.3	%		6.00		3,463,824		-0-
Iowa		1		36,270		36,270		0.3	%		141,000		0.2	%		3.89		2,161,895		-0-
Total as of 12/31/16		100		16,553,910		16,553,910		100.0	%	$	96,064,000		100.0	%	$	5.80	$	1,223,881,570	$	512,292,137	(A)

(A) Does not include unamortized debt issuance costs of $6,718,020.

First Quarter FY 2017 Supplemental of Monmouth Real Estate Investment Corp. Page 13 of 21

Lease Expirations

(unaudited)

		Property		Square		% of Total			Annual		% of Total			Rent Per sf		Lease Exp. Term in		Undepreciated		Mortgage
Fiscal Year		Count		Footage		sf			Rent		Ann. Rent			Occup.		Years		Cost		Balance
2017	(A)		8		820,684		5.0	%	$	4,993,000		5.2	%	$	6.08		0.6	$	60,011,739	$	5,799,786
2018	(A)		16		1,542,279		9.3	%		8,930,000		9.3	%		5.79		1.3		105,358,410		14,846,870
2019			9		1,370,849		8.3	%		7,116,000		7.4	%		5.19		2.3		81,427,352		22,608,242
2020			4		383,449		2.3	%		2,116,000		2.2	%		5.52		3.4		27,373,089		220,431
2021			7		735,317		4.4	%		3,892,000		4.1	%		5.29		4.5		47,444,344		8,222,745
2022			7		1,138,320		6.9	%		6,376,000		6.6	%		5.60		5.2		75,756,452		33,055,314
2023			10		1,302,007		7.9	%		8,035,000		8.4	%		6.17		6.5		100,077,917		38,969,066
2024			11		1,743,587		10.5	%		10,597,000		11.0	%		6.08		7.4		130,495,798		46,612,737
2025	(A)		9		2,404,478		14.5	%		12,208,000		12.7	%		5.08		8.4		159,741,406		85,974,227
2026			6		961,826		5.8	%		7,572,000		7.9	%		7.87		9.4		106,854,608		59,760,917
2027			3		395,691		2.4	%		2,194,000		2.3	%		5.54		10.3		27,082,254		5,108,670
2028			1		861,889		5.2	%		3,010,000		3.1	%		3.49		11.6		36,914,917		24,724,274
2029			2		262,613		1.6	%		1,515,000		1.6	%		5.77		12.5		21,954,950		9,564,621
2030			4		1,044,832		6.3	%		7,388,000		7.7	%		7.07		13.3		109,180,602		68,875,424
2031			3		963,269		5.8	%		7,110,000		7.4	%		7.38		14.3		104,367,000		71,421,351
2034			1		558,600		3.4	%		2,186,000		2.3	%		3.91		16.8		26,767,852		16,527,462
Various tenants at retail shopping center			1		64,220		0.4	%		826,000		0.8	%		12.86		-0-		3,072,880		-0-
Total as of 12/31/16			100		16,553,910		100.0	%	$	96,064,000		100.0	%	$	5.80		7.4	$	1,223,881,570	$	512,292,137	(B)

(A)	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. Other then these two properties and the one retail property, all other properties are single-tenant.
(B)	Does not include unamortized debt issuance costs of $6,718,020.

First Quarter FY 2017 Supplemental of Monmouth Real Estate Investment Corp. Page 14 of 21

Recent Acquisitions During Fiscal 2017

(unaudited)

				Fiscal Year	Square		Annual		Rent Per		Lease	Purchase		Initial Mortgage
No	Tenant	City (MSA)	State	Acquisition	Footage		Rent		sf Occup.		Expiration	Price		Balance
1	FedEx Ground Package System, Inc.	Hamburg (Buffalo)	NY	2017		338,584	$	2,309,000	$	6.82	3/31/2031	$	35,100,000	$	23,500,000
2	FedEx Ground Package System, Inc.	Ft. Myers	FL	2017		213,672		1,365,000		6.39	9/30/2026		21,001,538		14,500,000
	Total as of 12/31/16					552,256	$	3,674,000	$	6.65		$	56,101,538	$	38,000,000

First Quarter FY 2017 Supplemental of Monmouth Real Estate Investment Corp. Page 15 of 21

Property Table

(unaudited)

													Rent		Lease Exp.
					Fiscal Year				Square		Annual		Per sf		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	$	3,010,000	$	3.49		11.6	$	36,914,917	$	24,724,274
2	ULTA, Inc.		Greenwood (Indianapolis)	IN	2015		100.0	%		671,354		2,677,000		3.99		8.6		37,500,391	$	22,446,303
3	Jim Beam Brands Company		Frankfort	KY	2015		100.0	%		599,840		2,032,000		3.39		8.1		28,000,000		18,165,278
4	TreeHouse Private Brands, Inc.		Buckner (Louisville)	KY	2014		100.0	%		558,600		2,186,000		3.91		16.8		26,767,852		16,527,462
5	FedEx Supply Chain Services, Inc.		Memphis	TN	2010		100.0	%		449,900		1,327,000		2.95		2.4		14,620,887		6,474,875
6	Woodstream Corporation	(A)	St. Joseph	MO	2001		100.0	%		256,000		896,000		3.50		0.7		8,857,758		-0-
	Altec Industries, Inc.	(A)	St. Joseph	MO	2001		100.0	%		126,880		349,000		2.75		1.2		4,390,126		-0-
7	CBOCS Distribution, Inc.		Lebanon (Nashville)	TN	2011		100.0	%		381,240		1,433,000		3.76		7.5		14,215,126		7,607,499
8	Best Buy Warehousing Logistics, Inc.		Streetsboro (Cleveland)	OH	2012		100.0	%		368,060		1,660,000		4.51		5.1		19,600,000		10,310,322
9	Fedex Ground Package System, Inc.		Hamburg (Buffalo)	NY	2017		100.0	%		338,584		2,309,000		6.82		14.3		34,850,000		23,404,741
10	FedEx Ground Package System, Inc.		Concord (Charlotte)	NC	2016		100.0	%		330,717		2,235,000		6.76		8.6		33,044,797		19,737,541
11	FedEx Ground Package System, Inc.		Indianapolis	IN	2014		100.0	%		327,822		1,533,000		4.68		7.3		23,946,000		12,066,121
12	FedEx Ground Package System, Inc.		Olathe (Kansas City)	KS	2016		100.0	%		313,763		2,196,000		7.00		14.4		31,737,000		21,942,401
13	FedEx Ground Package System, Inc.		Davenport (Orlando)	FL	2016		100.0	%		310,922		2,605,000		8.38		14.3		37,780,000		26,074,210
14	FedEx Ground Package System, Inc.		Fort Worth (Dallas)	TX	2015		100.0	%		304,608		2,367,000		7.77		13.3		35,300,832		23,106,755
15	Science Applications International		Hanahan (Charleston)	SC	2005		100.0	%		302,400		1,476,000		4.88		2.3		13,340,592		5,518,107
16	FedEx Ground Package System, Inc.		Jacksonville	FL	2015		100.0	%		297,579		1,999,000		6.72		13.0		30,732,090		18,186,330
17	Western Container Corporation (The Coca-Cola Company)		Tolleson (Phoenix)	AZ	2003		100.0	%		283,358		1,352,000		4.77		10.3		16,824,226		5,108,670
18	International Paper Company		Edwardsville (Kansas City)	KS	2014		100.0	%		280,000		1,337,000		4.78		6.7		18,294,108		10,471,218
19	NF&M International	(B)	Monaca (Pittsburgh)	PA	1988		100.0	%		174,802		833,000		4.77		8.0		5,350,762		-0-
	Datatel Resources Corporation	(B)	Monaca (Pittsburgh)	PA	1988		100.0	%		80,856		243,000		3.01		0.9		2,475,036		-0-
20	FedEx Ground Package System, Inc.		Orion	MI	2007		100.0	%		245,633		1,908,000		7.77		6.5		22,885,636		8,445,863
21	Anda Pharmaceuticals, Inc.		Olive Branch (Memphis, TN)	MS	2012		100.0	%		234,660		1,200,000		5.11		5.6		14,550,000		8,608,235
22	UGN, Inc.		Monroe (Cincinnati)	OH	2015		100.0	%		232,200		1,060,000		4.57		13.2		12,937,000		7,957,643
23	FedEx Ground Package System, Inc.		Colorado Springs	CO	2016		100.0	%		225,362		1,832,000		8.13		9.1		28,500,000		18,343,826
24	Caterpillar Logistics Services, Inc.		Griffin (Atlanta)	GA	2006		100.0	%		218,120		1,169,000		5.36		0.9		14,868,857		-0-
25	Fedex Ground Package System, Inc.		Ft Myers	FL	2017		100.0	%		213,672		1,365,000		6.39		9.8		20,800,000		14,500,000
26	FedEx Ground Package System, Inc.		Burlington (Seattle/Everett)	WA	2016		100.0	%		210,445		1,962,000		9.32		13.7		30,210,680	$	19,624,696
27	FedEx Ground Package System, Inc.		Sauget (St. Louis, MO)	IL	2015		100.0	%		198,773		1,036,000		5.21		12.4		15,204,950		9,564,621
28	Anheuser-Busch, Inc.		Granite City (St. Louis, MO)	IL	2001		100.0	%		184,800		810,000		4.38		4.9		12,542,814		-0-
29	United Technologies Corporation		Carrollton (Dallas)	TX	2010		100.0	%		184,317		1,576,000		8.55		2.0		17,769,106		7,783,521
30	FedEx Ground Package System, Inc.		Spring (Houston)	TX	2014		100.0	%		181,176		1,581,000		8.73		7.8		19,283,798		8,981,798
31	Carlisle Tire & Wheel Company		Edwardsville (Kansas City)	KS	2003		100.0	%		179,280		787,000		4.39		1.4		7,225,401		267,437
32	FedEx Ground Package System, Inc.		Ft. Mill (Charlotte, NC)	SC	2010		100.0	%		176,939		1,415,000		8.00		6.8		15,413,307		1,785,724
33	FedEx Ground Package System, Inc.		Covington (New Orleans)	LA	2016		100.0	%		175,315		1,260,000		7.19		8.5		18,410,000		12,307,758
34	FedEx Ground Package System, Inc.		Livonia (Detroit)	MI	2013		100.0	%		172,005		1,194,000		6.94		5.2		13,762,030		7,358,095
35	Home Depot USA, Inc.		Montgomery (Chicago)	IL	2004		100.0	%		171,200		988,000		5.77		3.5		11,298,367		-0-
36	FedEx Ground Package System, Inc.		Tampa	FL	2004		100.0	%		170,779		1,624,000		9.51		9.6		19,695,477		6,456,556
37	FedEx Ground Package System, Inc.		Edinburg	TX	2011		100.0	%		164,207		1,097,000		6.68		4.8		12,039,014		-0-
38	FedEx Ground Package System, Inc.		Lindale (Tyler)	TX	2015		100.0	%		163,378		725,000		4.44		7.5		9,930,000		6,289,516
39	Bunzl Distribution Midcentral, Inc.		Kansas City	MO	2015		100.0	%		158,417		747,000		4.72		4.8		9,612,992		6,919,049
40	FedEx Ground Package System, Inc.		Oklahoma City	OK	2012		100.0	%		158,340		1,048,000		6.62		8.5		12,580,262		4,283,245
41	FedEx Ground Package System, Inc.		Waco	TX	2012		100.0	%		150,710		1,078,000		7.15		8.7		12,546,157		4,732,172
42	Victory Packaging, L.P.		Fayetteville	NC	1997		100.0	%		148,000		496,000		3.35		4.2		5,441,876		-0-
43	FedEx Ground Package System, Inc.		Beltsville (Washington, DC)	MD	2001		100.0	%		144,523		1,426,000		9.87		1.6		14,512,355		-0-
44	FedEx Ground Package System, Inc.		El Paso	TX	2006		100.0	%		144,149		1,345,000		9.33		6.8		12,431,193		3,168,841
45	FedEx Ground Package System, Inc.		Cocoa	FL	2008		100.0	%		144,138		1,112,000		7.71		7.8		14,127,449		4,985,801
46	FedEx Ground Package System, Inc.		Cudahy (Milwaukee)	WI	2001		100.0	%		139,564		901,000		6.46		0.5		9,382,361		-0-
47	Challenger Lifts, Inc (Snap-On Inc.)		Louisville	KY	2016		100.0	%		137,500		831,000		6.04		9.4		11,304,000		7,196,512
48	FedEx Ground Package System, Inc.		Richfield (Cleveland)	OH	2006		100.0	%		131,152		1,493,000		11.38		7.8		16,435,478		2,991,983
49	General Electric Company		Imperial (Pittsburgh)	PA	2016		100.0	%		125,860		1,315,000		10.45		9.0		19,950,000		12,519,001
50	FedEx Ground Package System, Inc.		Wheeling (Chicago)	IL	2003		100.0	%		123,000		1,386,000		11.27		0.4		18,537,652		-0-
51	FedEx Ground Package System, Inc.		Altoona	PA	2014		100.0	%		122,522		651,000		5.31		6.7		9,008,650		3,924,966
52	FedEx Corporation		Mechanicsville (Richmond)	VA	2001		100.0	%		112,799		541,000		4.80		6.3		7,761,861		-0-
53	FedEx Corporation		Orlando	FL	2008		100.0	%		110,638		666,000		6.02		0.9		8,554,432		4,283,153
54	Style Crest, Inc.		Winston-Salem	NC	2002		100.0	%		106,507		381,000		3.58		4.2		7,238,613		-0-
55	FedEx Ground Package System, Inc.		Cheektowaga (Buffalo)	NY	2000		100.0	%		104,981		966,000		9.20		2.7		10,960,822		266,487
56	FedEx Ground Package System, Inc.		West Chester Twp (Cincinnati)	OH	1999		100.0	%		103,818		537,000		5.17		6.7		5,728,690		2,010,101
57	FedEx Ground Package System, Inc.		Roanoke	VA	2013		100.0	%		103,402		755,000		7.30		6.3		10,200,000		5,209,468
58	Pittsburgh Glass Works, LLC		O’ Fallon (St. Louis)	MO	1994		100.0	%		102,135		427,000		4.18		1.5		4,245,913		-0-
59	FedEx Ground Package System, Inc.		Green Bay	WI	2013		100.0	%		99,102		468,000		4.72		6.4		6,570,000		3,185,585
60	Holland 1916 Inc.		Liberty (Kansas City)	MO	1998		100.0	%		95,898		345,000		3.60		2.5		7,397,881		-0-
61	FedEx Corporation		Jacksonville	FL	1999		100.0	%		95,883		518,000		5.40		2.4		6,258,738		-0-

First Quarter FY 2017 Supplemental of Monmouth Real Estate Investment Corp. Page 16 of 21

Property Table

(unaudited)

												Rent		Lease Exp.
				Fiscal Year				Square		Annual		Per sf		Term in		Undepreciated		Mortgage
No	Tenant	City (MSA)	State	Acquisition	Occup.			Footage		Rent		Occup.		Years		Cost		Balance
62	FedEx Corporation	Tampa	FL	2006		100.0	%		95,662	$	603,000	$	6.30		0.7	$	7,592,861	$	3,840,355
63	FedEx Ground Package System, Inc.	Hanahan (Charleston)	SC	2005		100.0	%		91,776		675,000		7.35		1.6		7,614,653		992,947
64	National Oilwell Varco, Inc.	Houston	TX	2010		100.0	%		91,295		750,000		8.22		5.8		8,083,107		3,018,740
65	FedEx Corporation	Omaha	NE	1999		100.0	%		89,115		446,000		5.00		6.8		5,944,691		-0-
66	Joseph T. Ryerson and Son, Inc.	Elgin (Chicago)	IL	2002		100.0	%		89,052		506,000		5.68		3.1		6,932,916		220,431
67	FedEx Ground Package System, Inc.	Huntsville	AL	2005		100.0	%		88,653		605,000		6.82		9.6		6,605,131		745,022
68	FedEx Ground Package System, Inc.	Ft. Myers	FL	2003		100.0	%		87,500		433,000		4.95		0.5		5,017,447		-0-
69	CHEP USA, Inc.	Roanoke	VA	2007		100.0	%		83,000		497,000		5.99		8.2		7,405,447		2,441,685
70	FedEx Corporation	Bedford Heights (Cleveland)	OH	2007		100.0	%		82,269		408,000		4.96		1.7		6,863,879		2,639,887
71	RGH Enterprises, Inc.	Halfmoon (Albany)	NY	2012		100.0	%		75,000		601,000		8.01		4.9		5,525,600		3,759,922
72	FedEx Corporation	Schaumburg (Chicago)	IL	1997		100.0	%		73,500		480,000		6.53		10.3		5,158,028		-0-
73	FedEx Corporation	Romulus (Detroit)	MI	1998		100.0	%		71,933		370,000		5.14		4.4		4,667,506		-0-
74	FedEx Ground Package System, Inc.	Denver	CO	2005		100.0	%		69,865		564,000		8.07		1.6		6,354,051		983,156
75	Tampa Bay Grand Prix	Tampa	FL	2005		100.0	%		68,385		293,000		4.28		3.8		5,677,982		-0-
76	FedEx Ground Package System, Inc.	Colorado Springs	CO	2006		100.0	%		68,370		644,000		9.42		1.7		7,204,472		1,259,648
77	Sherwin-Williams Company	Rockford	IL	2011		100.0	%		66,387		479,000		7.22		7.0		5,551,227		-0-
78	Kellogg Sales Company	Kansas City	MO	2007		100.0	%		65,067		325,000		4.99		1.6		4,800,474		2,205,264
79	Various Tenants at Retail Shopping Center	Somerset	NJ	1970		100.0	%		64,220		826,000		12.86		na		3,072,880		-0-
80	The American Bottling Company (Dr Pepper Snapple)	Cincinnati	OH	2015		100.0	%		63,840		479,000		7.50		12.8		6,750,004		-0-
81	FedEx Corporation	Chattanooga	TN	2007		100.0	%		60,637		311,000		5.13		0.8		5,016,518		1,493,102
82	SOFIVE, Inc.	Carlstadt (New York, NY)	NJ	2001		100.0	%		60,400		548,000		9.07		8.1		4,903,589		1,860,244
83	FedEx Ground Package System, Inc.	Stewartville (Rochester)	MN	2013		100.0	%		60,398		372,000		6.16		6.4		5,220,000		2,553,023
84	United Technologies Corporation	Richmond	VA	2004		100.0	%		60,000		320,000		5.33		1.9		4,768,309		-0-
85	FedEx Ground Package System, Inc.	Augusta	GA	2005		100.0	%		59,358		453,000		7.63		1.5		5,354,035		722,275
86	Kellogg Sales Company	Newington (Hartford)	CT	2001		100.0	%		54,812		329,000		6.00		3.2		3,463,824		-0-
87	Siemens Real Estate	Lebanon (Cincinnati)	OH	2012		100.0	%		51,130		479,000		9.37		2.3		4,452,425		2,565,253
88	Kellogg Sales Company	Orangeburg (New York)	NY	1993		100.0	%		50,400		328,000		6.51		1.2		3,895,675		-0-
89	FedEx Corporation	Charlottesville	VA	1999		100.0	%		48,064		329,000		6.85		0.7		4,348,499		-0-
90	FedEx Ground Package System, Inc.	Corpus Christi	TX	2012		100.0	%		46,253		469,000		10.14		4.7		4,764,500		-0-
91	The American Bottling Company (Dr Pepper Snapple)	Tulsa	OK	2014		100.0	%		46,240		260,000		5.62		7.2		3,748,031		1,904,295
92	The Coca-Cola Company	Topeka	KS	2009		100.0	%		40,000		332,000		8.30		4.8		3,679,843		1,303,696
93	B/E Aerospace, Inc.	Rockford	IL	2015		100.0	%		38,833		362,000		9.32		10.5		5,100,000		-0-
94	Keystone Automotive Industries MN, Inc.	Urbandale (Des Moines)	IA	1994		100.0	%		36,270		141,000		3.89		0.2		2,161,895		-0-
95	FedEx Corporation	Richland (Jackson)	MS	1994		100.0	%		36,000		120,000		3.33		7.3		1,900,691		-0-
96	FedEx Corporation	Punta Gorda	FL	2007		100.0	%		34,624		304,000		8.78		0.5		4,113,265		1,959,432
97	FedEx Corporation	Lakeland	FL	2006		100.0	%		32,105		155,000		4.83		0.9		1,982,532		-0-
98	FedEx Corporation	Augusta	GA	2006		100.0	%		30,184		121,000		4.01		5.9		1,977,779		-0-
99	Graybar Electric Company	Ridgeland (Jackson)	MS	1993		100.0	%		26,340		109,000		4.14		2.6		1,858,591		-0-
100	Sherwin-Williams Company	Burr Ridge (Chicago)	IL	1997		100.0	%		12,500		161,000		12.88		4.8		1,692,901		-0-
	Total as of 12/31/16					100.0	%		16,553,910	$	96,064,000	$	5.80		7.4	$	1,223,881,570	$	512,292,137	(C)

(A)	Both tenants occupy one property.
(B)	Both tenants occupy one property.
	Other then these two properties indicated in footnotes (A) and (B) and the one retail property, all other properties are single-tenant.
(C)	Does not include unamortized debt issuance costs of $6,718,020.

First Quarter FY 2017 Supplemental of Monmouth Real Estate Investment Corp. Page 17 of 21

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 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 effect of non-cash 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.

AFFOis calculated as EBITDA, minus lease termination income, minus U.S. GAAP interest expense, including amortization of financing costs, minus preferred stock dividends, minus recurring capital expenditures and the effect of non-cash 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.

First Quarter FY 2017 Supplemental of Monmouth Real Estate Investment Corp. Page 18 of 21

FOR IMMEDIATE RELEASE	February 8, 2017
	Contact: Susan Jordan
	732-577-9996

MONMOUTH REAL ESTATE REPORTS RESULTS FOR

THE FIRST QUARTER ENDED DECEMBER 31, 2016

FREEHOLD, NJ, February 8, 2017........ Monmouth Real Estate Investment Corporation (NYSE:MNR) reported Net Income Attributable to Common Shareholders of $6,156,000 or $0.09 per diluted share for the three months ended December 31, 2016 as compared to $4,787,000 or $0.08 per diluted share for the three months ended December 31, 2015 representing an increase per share of 13%. Core Funds from Operations (Core FFO) were $13,857,000 or $0.20 per diluted share for the three months ended December 31, 2016 as compared to $11,012,000 or $0.17 per diluted share for the three months ended December 31, 2015 representing an increase in Core FFO per share of 18%. Adjusted Funds from Operations (AFFO), for the three months ended December 31, 2016 were $12,939,000 or $0.19 per diluted share versus $10,725,000 or $0.17 per diluted share for the three months ended December 31, 2015 representing an increase in AFFO per share of 12%.

A summary of significant financial information for the three months ended December 31, 2016 and 2015 is as follows:

	Three Months Ended December 31,
	2016		2015
Rental Revenue	$	23,281,000	$	19,065,000
Reimbursement Revenue	$	3,901,000	$	3,194,000
Net Operating Income (NOI) (1)	$	22,980,000	$	18,656,000
Total Expenses	$	13,263,000	$	11,167,000
Dividend and Interest Income	$	1,292,000	$	1,185,000
Gain on Sale of Securities Transactions, net	$	806,000	$	8,000
Net Income	$	9,854,000	$	6,939,000
Net Income Attributable to Common Shareholders	$	6,156,000	$	4,787,000
Net Income Attributable to Common Shareholders Per Diluted Common Share	$	0.09	$	0.08
Core FFO (1)	$	13,857,000	$	11,012,000
Core FFO per Diluted Common Share (1)	$	0.20	$	0.17
AFFO (1)	$	12,939,000	$	10,725,000
AFFO per Diluted Common Share (1)	$	0.19	$	0.17
Dividends Declared per Common Share	$	0.16	$	0.16
Weighted Avg. Diluted Common Shares Outstanding		69,830,000		62,949,000

A summary of significant balance sheet information as of December 31, 2016 and September 30, 2016 is as follows:

	December 31, 2016		September 30, 2016
Net Real Estate Investments	$	1,069,045,000	$	1,022,483,000
Securities Available for Sale at Fair Value	$	74,321,000	$	73,605,000
Total Assets	$	1,209,680,000	$	1,223,486,000
Fixed Rate Mortgage Notes Payable, net of Unamortized Debt Issuance Costs	$	505,574,000	$	477,476,000
Loans Payable	$	76,000,000	$	80,791,000
Total Shareholders’ Equity	$	611,138,000	$	597,858,000

Michael P. Landy, President and CEO, commented on the results for the first quarter of fiscal 2017,

“This was another record quarter for Monmouth and represents an excellent start to fiscal 2017. We are pleased to report continued strength across multiple fronts. During the quarter we:

● Increased our occupancy rate to 100%, representing a 120 basis points increase over the prior year period and 40 basis points increase over the prior quarter

● Increased our per share AFFO to $0.19, representing a 12% increase over the prior year period and a 6% increase sequentially

● Increased our Net Operating Income (NOI) 23% over the prior year period

● Increased our Same Property NOI 2.4% on a GAAP basis and 3.1% on a cash basis over the prior year period

● Acquired two new Class A built-to-suit properties comprising 552,000 square feet, for an aggregate cost of $56.1 million

● Grew our acquisition pipeline to nine brand-new Class A build-to-suit properties, representing 2.34 million square feet, for a total purchase price of approximately $250.5 million

First Quarter FY 2017 Supplemental of Monmouth Real Estate Investment Corp. Page 19 of 21

● Increased our gross leasable area (GLA) 15% to 16.6 million square feet over the prior year period. Our GLA is expected to grow to 18.9 million square feet upon the completion of the above acquisitions

● Renewed five of thirteen leases scheduled to expire in Fiscal 2017, representing a weighted average lease term of 5.9 years. These five leases consist of 719,000 square feet and result in a 2.7% increase in GAAP rents. One lease was renewed on a short term basis and the remaining seven leases are currently under discussion

● Generated approximately $806,000 in net realized gains in addition to the $10.2 million in unrealized gains we held at quarter end on our REIT securities investments

● Redeemed all of our 7.625% Series A Preferred Stock for $54.0 million which was funded with a portion of the proceeds from our recent $135 million issue of 6.125% Series C Preferred Stock.”

Mr. Landy stated, “We have generated double-digit AFFO per-share growth in each of the prior three years, and with our first quarter AFFO per share up 12% from the prior year, fiscal 2017 is on track to continue this very favorable trend. Our property portfolio is 100% occupied, reflecting the mission-critical nature of our properties.”

“Looking forward, we have entered into agreements to acquire nine brand-new, Class A build-to-suit industrial properties, representing approximately 2.34 million square feet, for a total purchase price of approximately $250.5 million. These properties are expected to generate annualized rental revenue of approximately $16.5 million and will benefit from an average lease term of approximately 13.5 years. Six of the nine purchase commitments, consisting of approximately 1.7 million square feet, or 72%, are leased to investment-grade tenants or their subsidiaries. Subject to satisfactory due diligence, we anticipate closing these transactions upon completion of construction and occupancy over the next five quarters. The Company is very well capitalized to continue building upon the substantial growth that we have achieved to date.”

Monmouth Real Estate Investment Corporation will host its First Quarter FY 2017 Financial Results Webcast and Conference Call on Thursday, February 9, 2017 at 10:00 a.m. Eastern Time. Senior management will discuss the results, current market conditions and future outlook.

The Company’s First Quarter FY 2017 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 the1Q2017 Webcast and Earnings Call “Link to Webcast” on the homepage of the Company’s website atwww.mreic.reit, in the Highlights section, which is located towards the bottom of the homepage. 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 Thursday, February 9, 2017. It will be available until May 1, 2017, and can be accessed by dialing toll free 877-344-7529 (domestically) and 412-317-0088 (internationally) and entering the passcode 10097752. A transcript of the call and the webcast replay will be available at the Company’s website on the Investor Relations homepage, 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 is a fully-integrated and self-managed real estate company, whose property portfolio consists of 100 properties containing a total of approximately 16.6 million rentable square feet, geographically diversified across 30 states. In addition, the Company owns a portfolio of REIT securities.

Certain statements included in this press release which are not historical facts may be deemed forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Any such forward-looking statements are based on the Company’s current expectations and involve various risks and uncertainties. Although the Company believes the expectations reflected in any forward-looking statements are based on reasonable assumptions, the Company can provide no assurance those expectations will be achieved. The risks and uncertainties that could cause actual results or events to differ materially from expectations are contained in the Company’s annual report on Form 10-K and described from time to time in the Company’s other filings with the SEC. The Company undertakes no obligation to publicly update or revise any forward-looking statements whether as a result of new information, future events, or otherwise.

Notes:

(1) Non-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. 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, the effect of non-cash 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.

First Quarter FY 2017 Supplemental of Monmouth Real Estate Investment Corp. Page 20 of 21

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 months ended December 31, 2016 and 2015:

	Three Months Ended
	12/31/2016			12/31/2015
Net Income Attributable to Common Shareholders	$	6,156,000		$	4,787,000
Plus: Depreciation Expense (excluding Corporate Office Tenant Improvements)		6,954,000			5,567,000
Plus: Amortization of Intangible Assets		268,000			323,000
Plus: Amortization of Capitalized Lease Costs		206,000			189,000
Plus: Loss on Sale of Real Estate Investment		95,000			-0-
FFO Attributable to Common Shareholders		13,679,000			10,866,000
Plus: Acquisition Costs		178,000			146,000
Core FFO Attributable to Common Shareholders		13,857,000			11,012,000
Plus: Amortization of Financing Costs		281,000			234,000
Plus: Stock Compensation Expense		100,000			105,000
Plus: Depreciation of Corporate Office Tenant Improvements		39,000			28,000
Less: Gain on Sale of Securities Transactions, net		(806,000	)		(8,000	)
Less: Effect of Non-cash U.S. GAAP Straight-line Rent Adjustment		(343,000	)		(310,000	)
Less: Recurring Capital Expenditures		(189,000	)		(336,000	)
AFFO Attributable to Common Shareholders	$	12,939,000		$	10,725,000

The following are the Cash Flows provided (used) by Operating, Investing and Financing Activities for the three months ended December 31, 2016 and 2015:

	Three Months Ended
	12/31/2016			12/31/2015
Operating Activities	$	14,153,000		$	11,637,000
Investing Activities		(55,150,000	)		(55,597,000	)
Financing Activities		(24,029,000	)		44,813,000

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First Quarter FY 2017 Supplemental of Monmouth Real Estate Investment Corp. Page 21 of 21