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
Net Income, FFO, Core FFO, AFFO, EBITDAre, Adjusted EBITDA and NOI Reconciliations	5
Financial Highlights	6
Same Property Statistics	7
Consolidated Statements of Cash Flows	9
Capital Structure and Leverage Ratios	10
Debt Maturity	13
Securities Portfolio Performance	13
Property Table by Tenant	14
Property Table by State	15
Lease Expirations	16
Recent Acquisitions	17
Property Table	18
Definitions	20
Press Release Dated August 1, 2018	21

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, EBITDAre and Adjusted EBITDA, which are REIT industry financial measures that are not calculated in accordance with accounting principles generally accepted in the United States. Please see page 20 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

	As of			As of
ASSETS	June 30, 2018			September 30, 2017
	(unaudited)
Real Estate Investments:
Land	$	203,651,326		$	187,224,819
Buildings and Improvements		1,402,366,135			1,244,691,715
Total Real Estate Investments		1,606,017,461			1,431,916,534
Accumulated Depreciation		(197,433,826	)		(171,060,478	)
Real Estate Investments		1,408,583,635			1,260,856,056
Real Estate Held for Sale		-0-			14,606,028
Cash and Cash Equivalents		6,892,242			10,226,046
Securities Available for Sale at Fair Value		167,594,279			123,764,770
Tenant and Other Receivables		845,043			1,753,054
Deferred Rent Receivable		9,203,719			8,049,275
Prepaid Expenses		7,071,943			5,434,874
Intangible Assets, net of Accumulated Amortization of $13,244,102 and $13,404,318, respectively		13,364,966			10,010,165
Capitalized Lease Costs, net of Accumulated Amortization of $3,050,738 and $3,393,187, respectively		4,434,124			4,180,907
Financing Costs, net of Accumulated Amortization of $901,240 and $619,555, respectively		594,024			875,709
Other Assets		5,896,592			3,280,871
TOTAL ASSETS	$	1,624,480,567		$	1,443,037,755
LIABILITIES AND SHAREHOLDERS’ EQUITY
Liabilities:
Fixed Rate Mortgage Notes Payable, net of Unamortized Debt
Issuance Costs	$	657,083,249		$	591,364,371
Loans Payable		157,792,824			120,091,417
Accounts Payable and Accrued Expenses		3,025,832			4,450,753
Other Liabilities		17,665,160			14,265,518
Total Liabilities		835,567,065			730,172,059
COMMITMENTS AND CONTINGENCIES
Shareholders’ Equity:
6.125% Series C Cumulative Redeemable Preferred Stock, $0.01 Par Value Per Share: 12,400,000 Shares Authorized as of June 30, 2018 and September 30, 2017; 11,099,461 and 9,839,445 Shares Issued and Outstanding as of June 30, 2018 and September 30, 2017, respectively		277,486,525			245,986,125
Common Stock, $0.01 Par Value Per Share: 192,039,750 Shares Authorized as of June 30, 2018 and September 30, 2017; 80,137,070 and 75,630,521 Shares Issued and Outstanding as of June 30, 2018 and September 30, 2017, respectively		801,371			756,305
Excess Stock, $0.01 Par Value Per Share: 200,000,000 Shares Authorized as of June 30, 2018 and September 30, 2017; No Shares Issued or Outstanding as of June 30, 2018 and September 30, 2017		-0-			-0-
Additional Paid-In Capital		518,994,574			459,552,701
Accumulated Other Comprehensive Income (Loss)		(8,368,968	)		6,570,565
Undistributed Income		-0-			-0-
Total Shareholders’ Equity		788,913,502			712,865,696
TOTAL LIABILITIES & SHAREHOLDERS’ EQUITY	$	1,624,480,567		$	1,443,037,755

Third Quarter FY 2018 Supplemental of Monmouth Real Estate Investment Corp. Page 3 of 24

Consolidated Statements of Income

(unaudited)

	For The						For The
	Three Months Ended						Nine Months Ended
	6/30/2018			6/30/2017			6/30/2018			6/30/2017
INCOME:
Rental Revenue	$	29,256,147		$	24,400,237		$	85,558,614		$	71,291,923
Reimbursement Revenue		6,941,678			4,208,859			17,002,541			11,806,975
Lease Termination Income		-0-			-0-			210,261			-0-
TOTAL INCOME		36,197,825			28,609,096			102,771,416			83,098,898
EXPENSES:
Real Estate Taxes		5,950,262			3,520,322			13,592,573			9,279,165
Operating Expenses		1,458,618			1,053,253			4,371,154			3,635,986
General & Administrative Expenses		1,887,722			1,786,852			6,052,791			5,307,853
Acquisition Costs		-0-			-0-			-0-			178,526
Depreciation		9,162,563			7,318,258			26,504,609			21,449,830
Amortization of Capitalized Lease Costs and Intangible Assets		613,927			451,823			1,740,620			1,327,376
TOTAL EXPENSES		19,073,092			14,130,508			52,261,747			41,178,736
OTHER INCOME (EXPENSE):
Dividend and Interest Income		3,627,984			1,899,320			9,380,411			4,630,653
Gain on Sale of Securities Transactions		-0-			1,487,836			111,387			2,293,944
Interest Expense, including Amortization of Financing Costs		(8,279,324	)		(6,135,381	)		(23,640,556	)		(18,835,864	)
TOTAL OTHER INCOME (EXPENSE)		(4,651,340	)		(2,748,225	)		(14,148,758	)		(11,911,267	)
INCOME FROM CONTINUING OPERATIONS		12,473,393			11,730,363			36,360,911			30,008,895
Gain on Sale of Real Estate Investments		2,097,380			-0-			7,485,266			-0-
NET INCOME		14,570,773			11,730,363			43,846,177			30,008,895
Less: Preferred Dividends		4,248,029			4,045,787			12,813,194			11,325,583
Less: Redemption of Preferred Stock		-0-			2,467,165			-0-			2,467,165
NET INCOME ATTRIBUTABLE TO COMMON SHAREHOLDERS	$	10,322,744		$	5,217,411		$	31,032,983		$	16,216,147

Third Quarter FY 2018 Supplemental of Monmouth Real Estate Investment Corp. Page 4 of 24

Net Income, FFO, Core FFO, AFFO, EBITDAre, Adjusted EBITDA and NOI Reconciliations

(unaudited)

	For The						For The
	Three Months Ended						Nine Months Ended
FFO, Core FFO, AFFO	6/30/2018			6/30/2017			6/30/2018			6/30/2017
Net Income Attributable to Common Shareholders	$	10,322,744		$	5,217,411		$	31,032,983		$	16,216,147
Plus: Depreciation Expense (excluding Corporate Office Capitalized Costs)		9,123,069			7,278,976			26,386,150			21,332,662
Plus: Amortization of Intangible Assets		417,088			262,325			1,157,950			771,145
Plus: Amortization of Capitalized Lease Costs		222,516			214,990			659,701			632,707
Less: (Gain) / Plus: Loss on Sale of Real Estate Investments		(2,097,380	)		-0-			(7,485,266	)		95,336
FFO Attributable to Common Shareholders		17,988,037			12,973,702			51,751,518			39,047,997
Plus: Acquisition Costs		-0-			-0-			-0-			178,526
Plus: Redemption of Preferred Stock		-0-			2,467,165			-0-			2,467,165
Core FFO Attributable to Common Shareholders		17,988,037			15,440,867			51,751,518			41,693,688
Plus: Depreciation of Corporate Office Capitalized Costs		39,494			39,282			118,459			117,167
Plus: Stock Compensation Expense		96,970			174,709			339,139			441,054
Plus: Amortization of Financing Costs		314,527			283,573			910,977			949,470
Less: Gain on Sale of Securities Transactions		-0-			(1,487,836	)		(111,387	)		(2,293,944	)
Less: Lease Termination Income		-0-			-0-			(210,261	)		-0-
Less: Recurring Capital Expenditures		(490,371	)		(195,186	)		(774,091	)		(571,988	)
Less: Effect of Non-cash U.S. GAAP Straight-line Rent Adjustment		(600,659	)		(294,936	)		(1,357,145	)		(924,792	)
AFFO Attributable to Common Shareholders	$	17,347,998		$	13,960,473		$	50,667,209		$	39,410,655

		Three Months Ended						Nine Months Ended
EBITDAre, Adjusted EBITDA		6/30/2018			6/30/2017			6/30/2018			6/30/2017
Net Income Attributable to Common Shareholders	$	10,322,744		$	5,217,411		$	31,032,983		$	16,216,147
Plus: Preferred Dividends		4,248,029			4,045,787			12,813,194			11,325,583
Plus: Redemption of Preferred Stock		-0-			2,467,165			-0-			2,467,165
Plus: Interest Expense, including Amortization of Financing Costs		8,279,324			6,135,381			23,640,556			18,835,864
Plus: Depreciation and Amortization		9,776,490			7,770,081			28,245,229			22,777,206
Less: (Gain) / Plus: Loss on Sale of Real Estate Investments		(2,097,380	)		-0-			(7,485,266	)		95,336
EBITDAre		30,529,207			25,635,825			88,246,696			71,717,301
Plus: Acquisition Costs		-0-			-0-			-0-			178,526
Plus: Net Amortization of Acquired Above and Below Market Lease Revenue		25,677			25,492			77,031			76,476
Less: Gain on Sale of Securities Transactions		-0-			(1,487,836	)		(111,387	)		(2,293,944	)
Adjusted EBITDA	$	30,554,884		$	24,173,481		$	88,212,340		$	69,678,359

		Three Months Ended						Nine Months Ended
Net Operating Income		6/30/2018			6/30/2017			6/30/2018			6/30/2017
Net Income Attributable to Common Shareholders	$	10,322,744		$	5,217,411		$	31,032,983		$	16,216,147
Plus: Redemption of Preferred Stock		-0-			2,467,165			-0-			2,467,165
Plus: Preferred Dividends		4,248,029			4,045,787			12,813,194			11,325,583
Plus: General & Administrative Expenses		1,887,722			1,786,852			6,052,791			5,307,853
Plus: Acquisition Costs		-0-			-0-			-0-			178,526
Plus: Depreciation		9,162,563			7,318,258			26,504,609			21,449,830
Plus: Amortization of Capitalized Lease Costs and Intangible Assets		613,927			451,823			1,740,620			1,327,376
Plus: Interest Expense, including Amortization of Financing Costs		8,279,324			6,135,381			23,640,556			18,835,864
Less: Dividend and Interest Income		(3,627,984	)		(1,899,320	)		(9,380,411	)		(4,630,653	)
Less: Gain on Sale of Securities Transactions		-0-			(1,487,836	)		(111,387	)		(2,293,944	)
Less: Gain on Sale of Real Estate Investments		(2,097,380	)		-0-			(7,485,266	)		-0-
Less: Lease Termination Income		-0-			-0-			(210,261	)		-0-
Net Operating Income – NOI	$	28,788,945		$	24,035,521		$	84,597,428		$	70,183,747

		Three Months Ended				Nine Months Ended
Components of Net Operating Income Consists of:		6/30/2018		6/30/2017		6/30/2018		6/30/2017
Revenues:
Rental Revenue	$	29,256,147	$	24,400,237	$	85,558,614	$	71,291,923
Reimbursement Revenue		6,941,678		4,208,859		17,002,541		11,806,975
Total Rental and Reimbursement Revenue		36,197,825		28,609,096		102,561,155		83,098,898
Expenses:
Real Estate Taxes		5,950,262		3,520,322		13,592,573		9,279,165
Operating Expenses		1,458,618		1,053,253		4,371,154		3,635,986
Total Real Estate Taxes and Operating Expenses		7,408,880		4,573,575		17,963,727		12,915,151
Net Operating Income – NOI	$	28,788,945	$	24,035,521	$	84,597,428	$	70,183,747

Third Quarter FY 2018 Supplemental of Monmouth Real Estate Investment Corp. Page 5 of 24

Financial Highlights

(unaudited)

	For The					For The
	Three Months Ended					Nine Months Ended
	6/30/2018			6/30/2017		6/30/2018		6/30/2017
Weighted Average Common Shares Outstanding
Basic		79,413,556			72,881,974		77,921,066		71,264,806
Diluted		79,571,767			73,053,693		78,098,849		71,422,664
Net Income Attributable to Common Shareholders	$	10,322,744		$	5,217,411	$	31,032,983	$	16,216,147
Basic	$	0.13		$	0.07	$	0.40	$	0.23
Diluted		0.13			0.07		0.40		0.23
Net Operating Income – NOI	$	28,788,945		$	24,035,521	$	84,597,428	$	70,183,747
Basic	$	0.36		$	0.33	$	1.09	$	0.98
Diluted		0.36			0.33		1.08		0.98
Funds From Operations – FFO	$	17,988,037		$	12,973,702	$	51,751,518	$	39,047,997
Basic	$	0.23		$	0.18	$	0.66	$	0.55
Diluted		0.23			0.18		0.66		0.55
Core Funds From Operations - Core FFO	$	17,988,037		$	15,440,867	$	51,751,518	$	41,693,688
Basic	$	0.23		$	0.21	$	0.66	$	0.59
Diluted		0.23			0.21		0.66		0.58
Core FFO Excluding Gain on Sale of Securities Transactions and Excluding Lease Termination Income	$	17,988,037		$	13,953,031	$	51,429,870	$	39,399,744
Basic	$	0.23		$	0.19	$	0.66	$	0.55
Diluted		0.23			0.19		0.66	$	0.55
Adjusted Funds From Operations – AFFO	$	17,347,998		$	13,960,473	$	50,667,209	$	39,410,655
Basic	$	0.22		$	0.19	$	0.65	$	0.55
Diluted		0.22			0.19		0.65	$	0.55
Dividends Declared per Common Share	$	0.17		$	0.16	$	0.51	$	0.48
Dividend/AFFO Payout Ratio		77.3	%

Third Quarter FY 2018 Supplemental of Monmouth Real Estate Investment Corp. Page 6 of 24

Same Property Statistics

(unaudited)

	For The Three Months Ended
	6/30/2018				6/30/2017			Change			Change %
Total Square Feet / Total Properties		20,534,513 / 109				17,917,302 / 105			2,617,211			14.6	%
Occupancy Percentage at End of Period		99.6	%			99.8	%		(20) bps			(0.2	)%
Same Property Square Feet / Number of Same Properties				15,745,437 / 94
Same Property Occupancy Percentage at End of Period		99.5	%			99.8	%		(30) bps			(0.3	)%
Same Property Net Operating Income (NOI) (GAAP)	$	21,923,776			$	22,120,270		$	(196,494	)		(0.9	)%
Reversal of Effect of Non-cash U.S. GAAP Straight-line Rent Adjustment		(273,227	)			(291,416	)		18,189
Same Property Cash NOI	$	21,650,549			$	21,828,854		$	(178,305	)		(0.8	)%

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

The 0.9% decrease, amounting to $196,494 in Same Property NOI, consists of $143,366 attributable to decreased Same Property NOI from occupied properties and by a decrease in Same Property NOI from vacant properties of $53,128 attributable to a 30 bps decline in Same Property Occupancy Percentage.

The 0.8% decrease, amounting to $178,305 in Same Property Cash NOI, consists of $122,105 attributable to decreased Same Property Cash NOI from occupied properties and by a decrease in Same Property Cash NOI from vacant properties of $56,200 attributable to a 30 bps decline in Same Property Occupancy Percentage.

Reconciliation of Same Property NOI to Total NOI

	For The
	Three Months Ended
	6/30/2018		6/30/2017		Change			Change %
Same Property NOI (GAAP)	$	21,923,776	$	22,120,270	$	(196,494	)		(0.9	)%
NOI of properties purchased subsequent to March 31, 2017 (five properties for fiscal 2018 and eight properties for fiscal 2017)		6,052,542		779,073
NOI of properties expanded subsequent to March 31, 2017 (two properties for fiscal 2018 and 2017)		751,365		714,174
NOI of property sold subsequent to March 31, 2017 (four properties for fiscal 2018)		61,262		422,004
Total NOI	$	28,788,945	$	24,035,521	$	4,753,424			19.8	%

Third Quarter FY 2018 Supplemental of Monmouth Real Estate Investment Corp. Page 7 of 24

Same Property Statistics

(unaudited)

				For The
				Nine Months Ended
	6/30/2018					6/30/2017			Change			Change %
Total Square Feet / Total Properties		20,534,513 / 109					17,917,302 / 105			2,617,211			14.6	%
Occupancy Percentage at End of Period		99.6	%				99.8	%		(20) bps			(0.2	)%
Same Property Square Feet / Number of Same Properties					15,406,853 / 93
Same Property Occupancy Percentage at End of Period		99.5	%				99.8	%		(30) bps			(0.3	)%
Same Property Net Operating Income (NOI) (GAAP)	$	64,430,143				$	64,683,081		$	(252,938	)		(0.4	)%
Reversal of Effect of Non-cash U.S. GAAP Straight-line Rent Adjustment		(748,741	)				(852,401	)		103,660
Same Property Cash NOI	$	63,681,402				$	63,830,680		$	(149,278	)		(0.2	)%

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

The 0.4% decrease, amounting to $252,938 in Same Property NOI, consists of $115,936 attributable to decreased Same Property NOI from occupied properties and by a decrease in Same Property NOI from vacant properties of $137,002 attributable to a 30 bps decline in Same Property Occupancy Percentage.

The 0.2% decrease, amounting to $149,278 in Same Property Cash NOI, consists of $28,411 attributable to increased Same Property Cash NOI from occupied properties offset by a decrease in Same Property Cash NOI from vacant properties of $177,689 attributable to a 30 bps decline in Same Property Occupancy Percentage.

Reconciliation of Same Property NOI to Total NOI

	For The
	Nine Months Ended
	6/30/2018		6/30/2017		Change			Change %
Same Property NOI (GAAP)	$	64,430,143	$	64,683,081	$	(252,938	)		(0.4	)%
NOI of properties purchased subsequent to September 30, 2016 (five properties for fiscal 2018 and ten properties for fiscal 2017)		18,294,191		3,212,077
NOI of properties expanded subsequent to September 30, 2016 (one property for fiscal 2018 and 2017)		1,266,776		1,138,270
NOI of property sold subsequent to September 30, 2016 (four properties for fiscal 2018 and one property for fiscal 2017)		606,318		1,150,319
Total NOI	$	84,597,428	$	70,183,747	$	14,413,681			20.5	%

Third Quarter FY 2018 Supplemental of Monmouth Real Estate Investment Corp. Page 8 of 24

Consolidated Statements of Cash Flows

(unaudited)

	For The
	Nine Months Ended
	6/30/2018			6/30/2017
CASH FLOWS FROM OPERATING ACTIVITIES
Net Income	$	43,846,177		$	30,008,895
Noncash Items Included in Net Income:
Depreciation & Amortization		29,156,206			23,726,676
Deferred Straight Line Rent		(1,357,145	)		(924,792	)
Stock Compensation Expense		339,139			441,054
Gain on Sale of Securities Transactions		(111,387	)		(2,293,944	)
(Gain) / Loss on Sale of Real Estate Investments		(7,485,266	)		95,336
Changes in:
Tenant & Other Receivables		1,775,444			937,271
Prepaid Expenses		(1,637,069	)		(2,527,747	)
Other Assets & Capitalized Lease Costs		(2,173,910	)		71,446
Accounts Payable, Accrued Expenses & Other Liabilities		741,801			656,824
NET CASH PROVIDED BY OPERATING ACTIVITIES		63,093,990			50,191,019
CASH FLOWS FROM INVESTING ACTIVITIES
Purchase of Real Estate & Intangible Assets		(174,919,132	)		(208,390,539	)
Capital Improvements		(4,541,705	)		(1,208,390	)
Proceeds from Sale of Real Estate Investments		22,083,340			4,125,819
Return of Deposits on Real Estate		450,000			2,700,000
Deposits Paid on Acquisitions of Real Estate		(700,000	)		(1,280,000	)
Proceeds from Sale of Securities Available for Sale		2,619,949			10,693,212
Purchase of Securities Available for Sale		(61,277,604	)		(39,467,317	)
NET CASH USED IN INVESTING ACTIVITIES		(216,285,152	)		(232,827,215	)
CASH FLOWS FROM FINANCING ACTIVITIES
Net Draws on Loans Payable		37,701,407			41,304,256
Proceeds from Fixed Rate Mortgage Notes Payable		105,600,000			137,925,000
Principal Payments on Fixed Rate Mortgage Notes Payable		(39,444,104	)		(59,936,689	)
Financing Costs Paid on Debt		(1,066,310	)		(1,650,516	)
Proceeds from the Exercise of Stock Options		569,600			-0-
Redemption of 7.625% Series A Preferred Stock		-0-			(53,493,750	)
Redemption of 7.875% Series B Preferred Stock		-0-			(57,500,000	)
Proceeds from Underwritten Public Offering of Preferred Stock, net of offering costs		-0-			71,003,093
Proceeds from At-The-Market Preferred Equity Program, net of offering costs		30,991,952			-0-
Proceeds from Issuance of Common Stock in the DRIP, net of Dividend Reinvestments		58,428,746			59,111,167
Preferred Dividends Paid		(12,548,850	)		(11,044,489	)
Common Dividends Paid, net of Reinvestments		(30,375,083	)		(27,081,387	)
NET CASH PROVIDED BY FINANCING ACTIVITIES		149,857,358			98,636,685
NET DECREASE IN CASH AND CASH EQUIVALENTS		(3,333,804	)		(83,999,511	)
CASH AND CASH EQUIVALENTS - BEGINNING OF PERIOD		10,226,046			95,749,508
CASH AND CASH EQUIVALENTS - END OF PERIOD	$	6,892,242		$	11,749,997

Third Quarter FY 2018 Supplemental of Monmouth Real Estate Investment Corp. Page 9 of 24

Capital Structure and Leverage Ratios

(unaudited)

	As of			As of			As of
	6/30/2018			6/30/2017			9/30/2017
Fixed Rate Mortgage Notes Payable, net of Unamortized Debt Issuance Costs	$	657,083,249		$	554,486,956		$	591,364,371
Loans Payable		157,792,824			122,094,940			120,091,417
Total Debt		814,876,073			676,581,896			711,455,788
6.125% Series C Cumulative Redeemable Preferred Stock		277,486,525			210,000,000			245,986,125
Common Stock, Paid-In-Capital & Other		511,426,977			448,246,175			466,879,571
Total Shareholders’ Equity		788,913,502			658,246,175			712,865,696
Total Book Capitalization		1,603,789,575			1,334,828,071			1,424,321,484
Accumulated Depreciation		197,433,826			169,226,861			177,372,518
Total Undepreciated Book Capitalization	$	1,801,223,401		$	1,504,054,932		$	1,601,694,002
Shares Outstanding		80,137,070			73,824,161			75,630,521
Market Price Per Share	$	16.53		$	15.05		$	16.19
Equity Market Capitalization	$	1,324,665,767		$	1,111,053,623		$	1,224,458,135
Total Debt		814,876,073			676,581,896			711,455,788
Total Preferred Stock		277,486,525			210,000,000			245,986,125
Total Market Capitalization	$	2,417,028,365		$	1,997,635,519		$	2,181,900,048
Total Debt	$	814,876,073		$	676,581,896		$	711,455,788
less: Cash and Cash Equivalents		6,892,242			11,749,997			10,226,046
Net Debt	$	807,983,831		$	664,831,899		$	701,229,742
less: Securities Available for Sale at Fair Value (Securities)		167,594,279			100,495,810			123,764,770
Net Debt Less Securities	$	640,389,552		$	564,336,089		$	577,464,972
Net Debt / Total Undepreciated Book Capitalization		44.9	%		44.2	%		43.8	%
Net Debt / Total Market Capitalization		33.4	%		33.3	%		32.1	%
Net Debt Plus Preferred Stock / Total Market Capitalization		44.9	%		43.8	%		43.4	%
Net Debt Less Securities / Total Undepreciated Book Capitalization		35.6	%		37.5	%		36.1	%
Net Debt Less Securities / Total Market Capitalization		26.5	%		28.3	%		26.5	%
Net Debt Less Securities Plus Preferred Stock / Total Market Capitalization		38.0	%		38.8	%		37.7	%
Weighted Average Interest Rate on Fixed Rate Debt		4.11	%		4.21	%		4.18	%
Weighted Average Term on Fixed Rate Debt		11.5 yrs.			11.5 yrs.			11.6 yrs.
Weighted Average Lease Term		7.8 yrs.			7.8 yrs.			7.9 yrs.

Third Quarter FY 2018 Supplemental of Monmouth Real Estate Investment Corp. Page 10 of 24

Capital Structure and Leverage Ratios continued

(unaudited)

												Fiscal Year
	Three Months Ended					Nine Months Ended						Ended
	6/30/2018		6/30/2017			6/30/2018			6/30/2017			9/30/2017
Net Income	$14,570,773		$11,730,363			$43,846,177			$30,008,895			$40,271,085
Plus: Interest Expense, including Amortization of Financing Costs	8,279,324		6,135,381			23,640,556			18,835,864			25,754,121
Plus: Depreciation and Amortization	9,776,490		7,770,081			28,245,229			22,777,206			31,459,749
Less: (Gain) / Plus: Loss on Sale of Real Estate Investments	(2,097,380)		-0-			(7,485,266)			95,336			95,336
EBITDAre		30,529,207		25,635,825			88,246,696			71,717,301			97,580,291
Plus: Acquisition Costs		-0-		-0-			-0-			178,526			178,526
Plus: Net Amortization of Acquired Above and  Below Market Lease Revenue		25,677		25,492			77,031			76,476			101,968
Less: Gain on Sale of Securities Transactions		-0-		(1,487,836	)		(111,387	)		(2,293,944	)		(2,311,714	)
Adjusted EBITDA	$	30,554,884	$	24,173,481		$	88,212,340		$	69,678,359		$	95,549,071
Interest Expense, including Amortization of Financing Costs	$	8,279,324	$	6,135,381		$	23,640,556		$	18,835,864		$	25,754,121
Preferred Dividends		4,248,029		4,045,787			12,813,194			11,325,583			14,861,686
Total Fixed Charges	$	12,527,353	$	10,181,168		$	36,453,750		$	30,161,447		$	40,615,807
Interest Coverage		3.7 x		3.9 x			3.7 x			3.7 x			3.7 x
Fixed Charge Coverage		2.4 x		2.4 x			2.4 x			2.3 x			2.4 x
Net Debt	$	807,983,831	$	664,831,899		$	807,983,831		$	664,831,899		$	701,229,742
Net Debt Less Securities		640,389,552		564,336,089			640,389,552			564,336,089			577,464,972
Total Preferred Stock		277,486,525		210,000,000			277,486,525			210,000,000			245,986,125
Annualized Adjusted EBITDA		122,219,536		96,693,924			117,616,453			92,904,479			95,549,071
Net Debt / Adjusted EBITDA		6.6 x		6.9 x			6.9 x			7.2 x			7.3 x
Net Debt Less Securities / Adjusted EBITDA		5.2 x		5.8 x			5.4 x			6.1 x			6.0 x
Net Debt + Preferred Stock / Adjusted EBITDA		8.9 x		9.0 x			9.2 x			9.4 x			9.9 x
Net Debt Less Securities + Preferred Stock / Adjusted EBITDA		7.5 x		8.0 x			7.8 x			8.3 x			8.6 x

Third Quarter FY 2018 Supplemental of Monmouth Real Estate Investment Corp. Page 11 of 24

Debt Maturity

(unaudited)

Total Debt ($000)

					Loans						% of
Fiscal Year Ended		Mortgages			Payable			Total			Total
2018		$	11,078,170		$	47,792,824	(B)	$	58,870,994			7.2	%
2019			60,710,638			-0-			60,710,638			7.4	%
2020			45,027,671			110,000,000	(C)		155,027,671			18.8	%
2021			46,376,527			-0-			46,376,527			5.6	%
2022			68,045,369			-0-			68,045,369			8.3	%
Thereafter			433,880,088			-0-			433,880,088			52.7	%
Total as of 6/30/2018	(A)	$	665,118,463		$	157,792,824		$	822,911,287			100.0	%
Weighted Average Interest Rate			4.11	%		3.25	%		3.94	%
Weighted Average Term			11.5 yrs.			1.6 yrs.			9.6 yrs.

(A)	Mortgages does not include unamortized debt issuance costs of $8,035,214.
(B)	Represents margin debt which is due upon demand and bears and interest rate of 2.00%.
(C)	Represents the amount drawn down on a line of credit that has a one year extension option, which is not reflected above.

Third Quarter FY 2018 Supplemental of Monmouth Real Estate Investment Corp. Page 12 of 24

Securities Portfolio Performance

(unaudited)

All periods represent the full fiscal year with the exception of the current fiscal year which represents fiscal year to date.

Fiscal Year Ended	Securities Available for Sale		Dividend Income		Net Realized Gain on Sale of Securities		Net Realized Gain on Sale of Securities & Dividend Income
2010	$	42,517,725	$	2,387,757	$	2,609,149	$	4,996,906
2011		44,265,059		2,981,534		5,238,203		8,219,737
2012		61,685,173		3,144,837		6,044,065		9,188,902
2013		45,451,740		3,861,374		7,133,252		10,994,626
2014		59,311,403		3,863,136		2,166,766		6,029,902
2015		54,541,237		3,707,498		805,513		4,513,011
2016		73,604,894		5,607,403		4,398,599		10,006,002
2017		123,764,770		6,919,973		2,311,714		9,231,687
As of 6/30/2018		167,594,279		9,373,467		111,387		9,484,854
Total			$	41,846,979	$	30,818,648	$	72,665,627

Third Quarter FY 2018 Supplemental of Monmouth Real Estate Investment Corp. Page 13 of 24

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.			42		7,899,336		7,899,336		38.5	%	$	58,819,000		48.8	%	$	7.45	$	805,798,445		$	349,664,510
FedEx Corporation			16		1,544,996		1,544,996		7.5	%		8,015,000		6.7	%		5.19		108,891,040			23,032,703
Total FedEx			58		9,444,332		9,444,332		46.0	%		66,834,000		55.5	%		7.08		914,689,485			372,697,213
Milwaukee Electric Tool Corporation			1		861,889		861,889		4.2	%		3,032,000		2.5	%		3.52		36,914,917			22,163,550
Shaw Industries, Inc.			1		831,764		831,764		4.1	%		3,551,000		3.0	%		4.27		56,025,945			32,683,129
ULTA, Inc.			1		671,354		671,354		3.3	%		2,702,000		2.2	%		4.02		37,512,071			20,495,423
Amazon.com Services, Inc. (Amazon.com, Inc.)			2		662,942		662,942		3.2	%		3,904,000		3.2	%		5.89		62,931,258			38,210,841
Jim Beam Brands Company (Beam Suntory)			1		599,840		599,840		2.9	%		2,051,000		1.7	%		3.42		28,000,000			16,873,754
International Paper Company			2		578,472		578,472		2.8	%		2,592,000		2.2	%		4.48		36,175,718			20,996,375
TreeHouse Private Brands, Inc.			1		558,600		558,600		2.7	%		2,206,000		1.8	%		3.95		26,807,852			15,485,705
B. Braun Medical Inc.			1		399,440		399,440		1.9	%		2,130,000		1.8	%		5.33		29,973,199			19,422,368
CBOCS Distribution, Inc. (Cracker Barrel)			1		381,240		381,240		1.9	%		1,447,000		1.2	%		3.80		14,215,126			7,276,403
Best Buy Warehousing Logistics, Inc.			1		368,060		368,060		1.8	%		1,676,000		1.4	%		4.55		19,600,000			9,450,350
Coca-Cola			2		323,358		323,358		1.6	%		1,693,000		1.4	%		5.24		20,504,069			4,850,865
Autoneum North America, Inc.			1		315,560		315,560		1.5	%		1,703,000		1.4	%		5.40		21,040,395			14,663,085
Science Applications International Corporation			1		302,400		302,400		1.5	%		1,491,000		1.2	%		4.93		13,390,441			-0-
United Technologies Corporation			3		283,150		283,150		1.4	%		2,264,000		1.9	%		8.00		27,687,512			6,654,972
Bunzl USA Holdings, Inc.			2		268,778		268,778		1.3	%		1,474,000		1.2	%		5.48		18,696,890			12,313,656
Woodstream Corporation	(A)		1		256,000		256,000		1.2	%		914,000		0.8	%		3.57		8,935,160			-0-
Anda Pharmaceuticals, Inc.			1		234,660		234,660		1.1	%		1,205,000		1.0	%		5.14		14,550,000			7,718,748
UGN, Inc.			1		232,200		232,200		1.1	%		1,070,000		0.9	%		4.61		13,424,564			7,248,514
Mickey Thompson Performance Tires and Wheels (Cooper Tire)			1		219,765		219,765		1.1	%		1,501,000		1.2	%		6.83		18,934,065			12,287,866
Rinnai America Corporation			1		218,120		218,120		1.1	%		831,000		0.7	%		3.81		14,933,683			-0-
Anheuser-Busch, Inc.			1		184,800		184,800		0.9	%		821,000		0.7	%		4.44		12,697,848			-0-
Carlisle Tire & Wheel Company			1		179,280		179,280		0.9	%		739,000		0.6	%		4.12		7,232,986			-0-
NF&M International, Inc.	(B)		1		174,802		174,802		0.9	%		835,000		0.7	%		4.78		5,408,790			-0-
Home Depot USA, Inc.			1		171,200		171,200		0.8	%		997,000		0.8	%		5.82		11,298,367			-0-
Victory Packaging, L.P.			1		148,000		148,000		0.7	%		502,000		0.4	%		3.39		5,451,629			-0-
Challenger Lifts, Inc. (Snap-On Inc.)			1		137,500		137,500		0.7	%		838,000		0.7	%		6.09		11,304,000			6,623,753
Altec Industries, Inc.	(A)		1		126,880		126,880		0.6	%		371,000		0.3	%		2.92		4,428,488			-0-
General Electric Company			1		125,860		125,860		0.6	%		1,321,000		1.1	%		10.50		19,950,000			11,393,300
The American Bottling Company (Dr Pepper Snapple)			2		110,080		110,080		0.5	%		743,000		0.6	%		6.75		10,498,031			1,717,657
Style Crest, Inc.			1		106,507		106,507		0.5	%		387,000		0.3	%		3.63		7,238,613			-0-
Pittsburgh Glass Works, LLC			1		102,135		102,135		0.5	%		442,000		0.4	%		4.33		4,245,913			-0-
Holland 1916 Inc.			1		95,898		95,898		0.5	%		349,000		0.3	%		3.64		7,397,881			-0-
National Oilwell Varco, Inc.			1		91,295		91,295		0.4	%		754,000		0.6	%		8.26		8,163,278			2,269,158
Joseph T. Ryerson and Son, Inc.			1		89,052		89,052		0.4	%		506,000		0.4	%		5.68		6,977,442			-0-
CHEP USA, Inc.			1		83,000		83,000		0.4	%		500,000		0.4	%		6.02		7,463,672			-0-
Sherwin-Williams Company			2		78,887		78,887		0.4	%		643,000		0.5	%		8.15		7,244,128			-0-
RGH Enterprises, Inc. (Cardinal Health)			1		75,000		75,000		0.4	%		607,000		0.5	%		8.09		5,525,600			-0-
Tampa Bay Grand Prix			1		68,385		68,385		0.3	%		297,000		0.2	%		4.34		5,677,982			-0-
Various Tenants at Retail Shopping Center			1		64,220		64,220		0.3	%		807,000		0.7	%		12.57		3,072,882			-0-
SOFIVE, Inc.			1		60,400		60,400		0.3	%		558,000		0.5	%		9.24		4,929,208			1,621,778
Kellogg Sales Company			1		54,812		54,812		0.3	%		329,000		0.3	%		6.00		3,494,108			-0-
Siemens Real Estate			1		51,130		51,130		0.2	%		485,000		0.4	%		9.49		4,452,425			-0-
Foundation Building Materials, LLC			1		36,270		36,270		0.2	%		172,000		0.2	%		4.74		2,523,644			-0-
Graybar Electric Company			1		26,340		26,340		0.2	%		109,000		0.2	%		4.14		1,885,254			-0-
Tenant Total as of 6/30/18			109		20,453,657		20,453,657		99.6	%	$	120,383,000		100.0	%	$	5.89	$	1,603,504,519	(C)	$	665,118,463
Vacant	(B)		1		80,856		-0-		0.0	%		-0-		0.0	%		-0-		2,501,877			-0-
Total as of 6/30/18			109		20,534,513		20,453,657		99.6	%	$	120,383,000		100.0	%	$	5.89	$	1,606,006,396		$	665,118,463

(A)	Woodstream Corporation and Altec Industries, Inc. are located at one property and therefore are counted as one property in the Property Count total.
(B)	NF&M International is located in a 255,658 square foot Industrial Park in Monaca (Pittsburgh), PA, of which 80,856 square feet is vacant. This Industrial Park is counted as one property in the Property Count Total. Other than the 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 $8,035,214.

Third Quarter FY 2018 Supplemental of Monmouth Real Estate Investment Corp. Page 14 of 24

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		13		2,211,583		2,211,583		10.8	%	$	15,711,000		13.1	%	$	7.10	$	226,437,810		$	106,355,377
Texas		10		1,781,967		1,781,967		8.7	%		14,160,000		11.8	%		7.95		182,253,655			79,504,203
Ohio		9		1,550,706		1,550,706		7.6	%		8,901,000		7.4	%		5.74		110,131,661			40,605,871
Kentucky		3		1,295,940		1,295,940		6.3	%		5,095,000		4.2	%		3.93		66,111,852			38,983,212
Mississippi		4		1,158,889		1,158,889		5.6	%		4,466,000		3.7	%		3.85		55,250,862			29,882,298
Georgia		4		1,139,426		1,139,426		5.5	%		5,004,000		4.2	%		4.39		78,300,712			33,078,998
South Carolina		5		1,008,358		1,008,358		4.9	%		6,599,000		5.5	%		6.54		79,435,118			29,948,928
Indiana		2		999,176		999,176		4.9	%		4,417,000		3.7	%		4.42		63,016,153			31,172,312
Illinois		9		958,045		958,045		4.7	%		6,117,000		5.1	%		6.38		82,238,327			8,711,524
North Carolina		4		939,706		939,706		4.6	%		5,663,000		4.7	%		6.03		85,778,185			43,294,579
Tennessee		3		891,777		891,777		4.3	%		3,093,000		2.6	%		3.47		33,846,631			12,546,573
Michigan		4		833,054		833,054		4.1	%		5,574,000		4.6	%		6.69		72,976,507			26,189,350
Kansas		4		813,043		813,043		4.0	%		4,619,000		3.8	%		5.68		60,943,937			30,553,044
Missouri		4		739,330		739,330		3.6	%		2,828,000		2.3	%		3.83		34,975,893			6,674,809
Oklahoma		4		614,941		614,941		3.0	%		3,916,000		3.3	%		6.37		54,939,875			30,111,391
New York		3		518,565		518,565		2.5	%		3,886,000		3.2	%		7.49		51,336,422			21,634,312
Pennsylvania		3		504,040		423,184		2.5	%		2,807,000		2.3	%		6.63		36,869,316			14,745,434
Alabama		2		451,595		451,595		2.2	%		2,625,000		2.2	%		5.81		39,714,135			19,426,573
Virginia		5		407,265		407,265		2.0	%		2,449,000		2.0	%		6.01		34,663,204			4,514,935
Colorado		2		295,227		295,227		1.4	%		2,437,000		2.0	%		8.25		35,674,117			17,399,645
Arizona		1		283,358		283,358		1.4	%		1,361,000		1.1	%		4.80		16,824,226			3,924,048
Wisconsin		2		238,666		238,666		1.2	%		1,295,000		1.1	%		5.43		15,952,361			2,720,662
Washington		1		210,445		210,445		1.0	%		1,962,000		1.6	%		9.32		30,228,547			18,031,513
Louisiana		1		175,315		175,315		0.9	%		1,262,000		1.0	%		7.20		18,410,000			11,306,837
Maryland		1		148,881		148,881		0.7	%		1,452,000		1.2	%		9.75		14,512,355			-0-
New Jersey		2		124,620		124,620		0.6	%		1,365,000		1.1	%		10.95		8,002,092			1,621,778
Nebraska		1		89,115		89,115		0.4	%		446,000		0.4	%		5.00		5,944,691			-0-
Minnesota		1		60,398		60,398		0.3	%		372,000		0.3	%		6.16		5,220,000			2,180,257
Connecticut		1		54,812		54,812		0.2	%		329,000		0.3	%		6.00		3,494,108			-0-
Iowa		1		36,270		36,270		0.1	%		172,000		0.1	%		4.74		2,523,644			-0-
Total as of 6/30/18		109		20,534,513		20,453,657		100.0	%	$	120,383,000		100.0	%	$	5.89	$	1,606,006,396	(A)	$	665,118,463

(A) Does not include unamortized debt issuance costs of $8,035,214.

Third Quarter FY 2018 Supplemental of Monmouth Real Estate Investment Corp. Page 15 of 24

Lease Expirations

(unaudited)

		Property		Square		% of Total			Annual		% of Total			Rent Per sf		Lease  Exp.		Undepreciated			Mortgage
Fiscal Year		Count		Footage		sf			Rent		Ann. Rent			Occup.		Term in Years		Cost			Balance
2018			1		82,269		0.4	%	$	408,000		0.3	%	$	4.96		0.2	$	6,919,836		$	-0-
2019			9		1,366,742		6.7	%		7,302,000		6.1	%		5.34		0.8		82,903,975			12,469,363
2020			4		383,449		1.9	%		2,129,000		1.8	%		5.55		1.9		27,447,899			-0-
2021	(A)		10		1,206,723		5.9	%		5,467,000		4.5	%		4.53		2.9		69,298,783			7,997,496
2022			7		1,138,320		5.5	%		6,419,000		5.3	%		5.64		3.7		75,991,657			25,889,809
2023	(A)		13		1,668,804		8.1	%		9,481,000		7.9	%		5.68		5.0		116,791,437			22,145,221
2024			11		1,526,126		7.4	%		9,804,000		8.1	%		6.42		5.9		115,781,294			29,332,221
2025	(A)		9		2,404,478		11.7	%		12,271,000		10.2	%		5.10		6.9		159,904,370			76,246,573
2026			7		982,226		4.8	%		7,922,000		6.6	%		8.07		7.9		105,325,177			41,183,573
2027			11		2,304,616		11.2	%		12,629,000		10.5	%		5.48		9.1		178,099,769			73,983,041
2028			9		2,312,707		11.3	%		11,809,000		9.8	%		5.11		9.8		157,704,409			75,378,937
2029			4		721,438		3.5	%		4,070,000		3.4	%		5.64		10.7		61,390,594			27,711,524
2030			4		1,044,832		5.1	%		7,403,000		6.2	%		7.09		11.8		109,686,033			62,908,543
2031			3		963,269		4.7	%		7,122,000		5.9	%		7.39		12.8		104,367,000			65,934,926
2032			6		1,724,838		8.4	%		13,134,000		10.9	%		7.61		13.8		202,011,552			128,451,531
2034			1		558,600		2.7	%		2,206,000		1.8	%		3.95		15.3		26,807,852			15,485,705
Various tenants at retail shopping center			1		64,220		0.3	%		807,000		0.7	%		12.57		-0-		3,072,882			-0-
Vacant	(A)		1		80,856		0.4	%		-0-		-0-			-0-		-0-		2,501,877			-0-
Total as of 6/30/18			109		20,534,513		100.0	%	$	120,383,000		100.0	%	$	5.89		7.8	$	1,606,006,396	(B)	$	665,118,463

(A)

Included in 2021 is Woodstream Corporation and included in 2023 is Altec Industries which both occupy one property. Included in 2025 is NF&M International, which occupies 174,802 square feet of a 255,658 square foot Industrial Park. The remaining 80,856 square feet is included in Vacant. Each of these properties are counted as one property in the Property Count Total. Other than these properties and the one retail property, all other properties are single-tenant.

(B)

Does not include unamortized debt issuance costs of $8,035,214.

Third Quarter FY 2018 Supplemental of Monmouth Real Estate Investment Corp. Page 16 of 24

Recent Acquisitions During Fiscal 2018

(unaudited)

				Date of	Square		Annual		Rent Per		Lease	Purchase		Initial Mortgage
No	Tenant	City (MSA)	State	Acquisition	Footage		Rent		sf Occup.		Expiration	Price		Balance
1	FedEx Corporation	Charleston	SC	11/2/2017		121,683	$	1,315,000		10.81	8/31/2032	$	21,872,170	$	14,200,000
2	Amazon.com Services, Inc. (Amazon.com, Inc.)	Oklahoma City	OK	11/30/2017		300,000		1,884,000		6.28	10/31/2027		30,250,000		19,600,000
3	Shaw Industries, Inc.	Savannah	GA	1/22/2018		831,764		3,551,000		4.27	9/30/2027		57,483,636		33,300,000
4	B. Braun Medical Inc.	Daytona Beach	FL	4/6/2018		399,440		2,130,000		5.33	4/1/2028		30,750,540		19,500,000
5	Amazon.com Services, Inc. (Amazon.com, Inc.)	Mobile	AL	6/28/2018		362,942		2,020,000		5.57	11/30/2028		33,688,276		19,000,000
	Total as of 6/30/18					2,015,829	$	10,900,000	$	5.41		$	174,044,622	$	105,600,000

Third Quarter FY 2018 Supplemental of Monmouth Real Estate Investment Corp. Page 17 of 24

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	$	3,032,000	$	3.52		10.1	$	36,914,917	$	22,163,550
2	Shaw Industries, Inc.	Savannah	GA		2018		100.0	%		831,764		3,551,000		4.27		9.3		56,025,945		32,683,129
3	ULTA, Inc.	Greenwood (Indianapolis)	IN		2015		100.0	%		671,354		2,702,000		4.02		7.1		37,512,071		20,495,423
4	Jim Beam Brands Company (Beam Suntory)	Frankfort (Lexington)	KY		2015		100.0	%		599,840		2,051,000		3.42		6.6		28,000,000		16,873,754
5	TreeHouse Private Brands, Inc.	Buckner (Louisville)	KY		2014		100.0	%		558,600		2,206,000		3.95		15.3		26,807,852		15,485,705
6	FedEx Corporation	Memphis	TN		2010		100.0	%		449,900		1,327,000		2.95		0.9		14,614,986		5,270,170
7	B. Braun Medical Inc.	Daytona Beach	FL		2018		100.0	%		399,440		2,130,000		5.33		9.8		29,973,199		19,422,368
8	Woodstream Corporation	St. Joseph	MO		2001		100.0	%		256,000		914,000		3.57		3.3		8,935,160		-0-
	Altec Industries, Inc.	St. Joseph	MO		2001		100.0	%		126,880		371,000		2.92		4.7		4,428,488		-0-
9	CBOCS Distribution, Inc. (Cracker Barrel)	Lebanon (Nashville)	TN		2011		100.0	%		381,240		1,447,000		3.80		6.0		14,215,126		7,276,403
10	Best Buy Warehousing Logistics, Inc.	Streetsboro (Cleveland)	OH		2012		100.0	%		368,060		1,676,000		4.55		3.6		19,600,000		9,450,350
11	Amazon.com Services, Inc. (Amazon.com, Inc.)	Mobile	AL		2018		100.0	%		362,942		2,020,000		5.57		10.4		33,052,316		19,000,000
12	FedEx Ground Package System, Inc.	Concord (Charlotte)	NC		2017		100.0	%		354,482		2,537,000		7.16		13.9		40,043,145		25,198,229
13	FedEx Ground Package System, Inc.	Mesquite (Dallas)	TX		2017		100.0	%		351,874		3,195,000		9.08		13.8		49,880,493		31,357,736
14	FedEx Ground Package System, Inc.	Walker (Grand Rapids)	MI		2017		100.0	%		343,483		2,102,000		6.12		13.6		31,654,987		19,737,797
15	FedEx Ground Package System, Inc.	Hamburg (Buffalo)	NY		2017		100.0	%		338,584		2,313,000		6.83		12.8		34,850,000		21,634,312
16	FedEx Ground Package System, Inc.	Concord (Charlotte)	NC		2016		100.0	%		330,717		2,237,000		6.76		7.1		33,044,797		18,096,350
17	FedEx Ground Package System, Inc.	Indianapolis	IN		2014		100.0	%		327,822		1,715,000		5.23		9.3		25,504,083		10,676,889
18	Autoneum North America, Inc.	Aiken (Augusta, GA)	SC		2017		100.0	%		315,560		1,703,000		5.40		13.8		21,040,395		14,663,085
19	FedEx Ground Package System, Inc.	Olathe (Kansas City)	KS		2016		100.0	%		313,763		2,200,000		7.01		12.9		31,737,000		20,248,994
20	FedEx Ground Package System, Inc.	Davenport (Orlando)	FL		2016		100.0	%		310,922		2,609,000		8.39		12.8		37,780,000		24,051,619
21	FedEx Ground Package System, Inc.	Ft. Worth (Dallas)	TX		2015		100.0	%		304,608		2,373,000		7.79		11.8		35,300,832		21,099,018
22	Science Applications International Corporation	Hanahan (Charleston)	SC		2005		100.0	%		302,400		1,491,000		4.93		0.8		13,390,441		-0-
23	Amazon.com Services, Inc. (Amazon.com, Inc.)	Oklahoma City	OK		2018		100.0	%		300,000		1,884,000		6.28		9.3		29,878,942		19,210,841
24	International Paper Company	Kenton	OH		2017		100.0	%		298,472		1,244,000		4.17		9.2		17,881,607		11,619,141
25	FedEx Ground Package System, Inc.	Jacksonville	FL		2015		100.0	%		297,579		1,998,000		6.71		11.5		30,732,090		16,529,498
26	Western Container Corp. (Coca-Cola)	Tolleson (Phoenix)	AZ		2003		100.0	%		283,358		1,361,000		4.80		8.8		16,824,226		3,924,048
27	International Paper Company	Edwardsville (Kansas City)	KS		2014		100.0	%		280,000		1,348,000		4.81		5.2		18,294,108		9,377,234
28	NF&M International, Inc.	Monaca (Pittsburgh)	PA		1988		68.4	%		255,658		835,000		4.78		6.5		7,910,666		-0-
29	FedEx Ground Package System, Inc.	Orion	MI		2007		100.0	%		245,633		1,908,000		7.77		5.0		22,885,635		-0-
30	FedEx Ground Package System, Inc.	Homestead (Miami)	FL		2017		100.0	%		237,756		2,282,000		9.60		13.8		37,873,120		23,637,442
31	Anda Pharmaceuticals, Inc.	Olive Branch (Memphis, TN)	MS		2012		100.0	%		234,660		1,205,000		5.14		4.1		14,550,000		7,718,748
32	UGN, Inc.	Monroe (Cincinnati)	OH		2015		100.0	%		232,200		1,070,000		4.61		11.7		13,424,564		7,248,514
33	FedEx Ground Package System, Inc.	Colorado Springs	CO		2016		100.0	%		225,362		1,832,000		8.13		7.6		29,320,066		16,900,557
34	Mickey Thompson Performance Tires and Wheels (Cooper Tire)	Stow	OH		2017		100.0	%		219,765		1,501,000		6.83		9.2		18,934,065		12,287,866
35	Rinnai America Corporation	Griffin (Atlanta)	GA		2006		100.0	%		218,120		831,000		3.81		2.5		14,933,683		-0-
36	FedEx Ground Package System, Inc.	Ft. Myers	FL		2017		100.0	%		213,672		1,418,000		6.64		9.2		21,663,635		13,468,857
37	FedEx Ground Package System, Inc.	Burlington (Seattle/Everett)	WA		2016		100.0	%		210,445		1,962,000		9.32		12.2		30,228,547		18,031,513
38	FedEx Ground Package System, Inc.	Sauget (St. Louis, MO)	IL		2015		100.0	%		198,773		1,036,000		5.21		10.9		15,204,950		8,711,524
39	Anheuser-Busch, Inc.	Granite City (St. Louis, MO)	IL		2001		100.0	%		184,800		821,000		4.44		3.4		12,697,848		-0-
40	Carrier Corporation (United Technologies)	Carrollton (Dallas)	TX		2010		100.0	%		184,317		1,576,000		8.55		0.5		17,819,203		6,654,972
41	FedEx Ground Package System, Inc.	Spring (Houston)	TX		2014		100.0	%		181,176		1,581,000		8.73		6.3		19,294,396		8,080,427
42	Carlisle Tire & Wheel Company	Edwardsville (Kansas City)	KS		2003		100.0	%		179,280		739,000		4.12		5.1		7,232,986		-0-
43	FedEx Ground Package System, Inc.	Ft. Mill (Charlotte, NC)	SC		2010		100.0	%		176,939		1,415,000		8.00		5.3		15,870,217		884,380
44	FedEx Ground Package System, Inc.	Covington (New Orleans)	LA		2016		100.0	%		175,315		1,262,000		7.20		7.0		18,410,000		11,306,837
45	FedEx Ground Package System, Inc.	Livonia (Detroit)	MI		2013		100.0	%		172,005		1,194,000		6.94		3.8		13,762,030		6,451,553
46	Home Depot USA, Inc.	Montgomery (Chicago)	IL		2004		100.0	%		171,200		997,000		5.82		2.0		11,298,367		-0-
47	FedEx Ground Package System, Inc.	Tampa	FL		2004		100.0	%		170,779		1,624,000		9.51		8.1		19,696,227		5,340,301
48	FedEx Ground Package System, Inc.	Edinburg	TX		2011		100.0	%		164,207		1,097,000		6.68		8.3		12,039,014		-0-
49	FedEx Ground Package System, Inc.	Lindale (Tyler)	TX		2015		100.0	%		163,378		725,000		4.44		6.0		9,965,550		5,734,508
50	Bunzl Distribution Midcentral, Inc.	Kansas City	MO		2015		100.0	%		158,417		752,000		4.75		3.3		9,968,451		6,674,809
51	FedEx Ground Package System, Inc.	Oklahoma City	OK		2012		100.0	%		158,340		1,048,000		6.62		7.0		12,584,462		3,544,046
52	FedEx Ground Package System, Inc.	Waco	TX		2012		100.0	%		150,710		1,078,000		7.15		7.2		12,551,368		4,308,385
53	FedEx Ground Package System, Inc.	Beltsville (Washington, DC)	MD		2001		100.0	%		148,881		1,452,000		9.75		10.1		14,512,355		-0-
54	Victory Packaging, L.P.	Fayetteville	NC		1997		100.0	%		148,000		502,000		3.39		2.7		5,451,629		-0-
55	FedEx Ground Package System, Inc.	El Paso	TX		2006		100.0	%		144,149		1,345,000		9.33		5.3		12,431,192		-0-
56	FedEx Ground Package System, Inc.	Cocoa	FL		2008		100.0	%		144,138		1,112,000		7.71		6.3		14,127,449		-0-
57	FedEx Ground Package System, Inc.	Cudahy (Milwaukee)	WI		2001		100.0	%		139,564		827,000		5.93		9.0		9,382,361		-0-
58	Challenger Lifts, Inc. (Snap-On Inc.)	Louisville	KY		2016		100.0	%		137,500		838,000		6.09		7.9		11,304,000		6,623,752
59	FedEx Ground Package System, Inc.	Richfield (Cleveland)	OH		2006		100.0	%		131,152		1,493,000		11.38		6.3		16,435,478		-0-

Third Quarter FY 2018 Supplemental of Monmouth Real Estate Investment Corp. Page 18 of 24

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
60	General Electric Company	Imperial (Pittsburgh)	PA		2016		100.0	%		125,860	$	1,321,000	$	10.50		7.5	$	19,950,000		$	11,393,300
61	FedEx Ground Package System, Inc.	Wheeling (Chicago)	IL		2003		100.0	%		123,000		1,272,000		10.34		8.9		18,537,652			-0-
62	FedEx Ground Package System, Inc.	Altoona	PA		2014		100.0	%		122,522		651,000		5.31		5.2		9,008,650			3,352,134
63	FedEx Corporation	Charleston	SC		2018		100.0	%		121,683		1,315,000		10.81		14.2		21,519,412			13,857,243
64	FedEx Corporation	Mechanicsville (Richmond)	VA		2001		100.0	%		112,799		541,000		4.80		4.8		7,792,395			-0-
65	FedEx Corporation	Orlando	FL		2008		100.0	%		110,638		666,000		6.02		9.4		8,714,362			3,905,290
66	Bunzl Distribution Oklahoma, Inc.	Oklahoma City	OK		2017		100.0	%		110,361		722,000		6.54		6.2		8,728,439			5,638,847
67	Style Crest, Inc.	Winston-Salem	NC		2002		100.0	%		106,507		387,000		3.63		2.8		7,238,613			-0-
68	FedEx Ground Package System, Inc.	Cheektowaga (Buffalo)	NY		2000		100.0	%		104,981		966,000		9.20		1.2		10,960,823			-0-
69	FedEx Ground Package System, Inc.	West Chester Twp. (Cincinnati)	OH		1999		100.0	%		103,818		543,000		5.23		5.2		5,733,686			-0-
70	FedEx Ground Package System, Inc.	Roanoke	VA		2013		100.0	%		103,402		755,000		7.30		4.8		10,200,000			4,514,935
71	Pittsburgh Glass Works, LLC	O’ Fallon (St. Louis)	MO		1994		100.0	%		102,135		442,000		4.33		3.0		4,245,913			-0-
72	FedEx Ground Package System, Inc.	Green Bay	WI		2013		100.0	%		99,102		468,000		4.72		4.9		6,570,000			2,720,662
73	Holland 1916 Inc.	Liberty (Kansas City)	MO		1998		100.0	%		95,898		349,000		3.64		1.0		7,397,881			-0-
74	FedEx Corporation	Jacksonville	FL		1999		100.0	%		95,883		533,000		5.56		10.9		6,383,328			-0-
75	FedEx Corporation	Tampa	FL		2006		100.0	%		95,662		603,000		6.30		9.4		7,682,572			-0-
76	FedEx Ground Package System, Inc.	Hanahan (Charleston)	SC		2005		100.0	%		91,776		675,000		7.35		0.4		7,614,653			544,221
77	National Oilwell Varco, Inc.	Houston	TX		2010		100.0	%		91,295		754,000		8.26		4.3		8,163,278			2,269,158
78	FedEx Corporation	Omaha	NE		1999		100.0	%		89,115		446,000		5.00		5.3		5,944,691			-0-
79	Joseph T. Ryerson and Son, Inc.	Elgin (Chicago)	IL		2002		100.0	%		89,052		506,000		5.68		1.6		6,977,442			-0-
80	FedEx Ground Package System, Inc.	Huntsville	AL		2005		100.0	%		88,653		605,000		6.82		8.1		6,661,819			426,573
81	CHEP USA, Inc.	Roanoke	VA		2007		100.0	%		83,000		500,000		6.02		6.7		7,463,672			-0-
82	FedEx Corporation	Bedford Heights (Cleveland)	OH		2007		100.0	%		82,269		408,000		4.96		0.2		6,919,836			-0-
83	RGH Enterprises, Inc. (Cardinal Health)	Halfmoon (Albany)	NY		2012		100.0	%		75,000		607,000		8.09		3.4		5,525,600			-0-
84	FedEx Corporation	Schaumburg (Chicago)	IL		1997		100.0	%		73,500		478,000		6.50		8.8		5,177,940			-0-
85	FedEx Corporation	Romulus (Detroit)	MI		1998		100.0	%		71,933		370,000		5.14		2.9		4,673,856			-0-
86	FedEx Ground Package System, Inc.	Denver	CO		2005		100.0	%		69,865		605,000		8.66		7.3		6,354,051			499,088
87	Tampa Bay Grand Prix	Tampa	FL		2005		100.0	%		68,385		297,000		4.34		2.3		5,677,982			-0-
88	Sherwin-Williams Company	Rockford	IL		2011		100.0	%		66,387		481,000		7.25		5.5		5,551,227			-0-
89	Various Tenants at Retail Shopping Center	Somerset	NJ		1970		100.0	%		64,220		807,000		12.57		na		3,072,882			-0-
90	The American Bottling Company (Dr Pepper Snapple)	Cincinnati	OH		2015		100.0	%		63,840		481,000		7.53		11.3		6,750,000			-0-
91	FedEx Corporation	Chattanooga	TN		2007		100.0	%		60,637		319,000		5.26		4.3		5,016,518			-0-
92	SOFIVE, Inc.	Carlstadt (New York, NY)	NJ		2001		100.0	%		60,400		558,000		9.24		6.6		4,929,210			1,621,778
93	FedEx Ground Package System, Inc.	Stewartville (Rochester)	MN		2013		100.0	%		60,398		372,000		6.16		4.9		5,220,000			2,180,257
94	Carrier Enterprise, LLC (United Technologies)	Richmond	VA		2004		100.0	%		60,000		324,000		5.40		0.4		4,768,309			-0-
95	FedEx Ground Package System, Inc.	Augusta	GA		2005		100.0	%		59,358		501,000		8.44		3.0		5,363,305			395,869
96	Kellogg Sales Company	Newington (Hartford)	CT		2001		100.0	%		54,812		329,000		6.00		1.7		3,494,108			-0-
97	Siemens Real Estate	Lebanon (Cincinnati)	OH		2012		100.0	%		51,130		485,000		9.49		0.8		4,452,425			-0-
98	FedEx Corporation	Charlottesville	VA		1999		100.0	%		48,064		329,000		6.85		9.2		4,438,828			-0-
99	FedEx Ground Package System, Inc.	Corpus Christi	TX		2012		100.0	%		46,253		436,000		9.43		3.2		4,808,329			-0-
100	The American Bottling Company (Dr Pepper Snapple)	Tulsa	OK		2014		100.0	%		46,240		262,000		5.67		5.7		3,748,031			1,717,657
101	Heartland Coca-Cola Bottling Company, LLC (Coca-Cola)	Topeka	KS		2009		100.0	%		40,000		332,000		8.30		3.3		3,679,843			926,817
102	Collins Aerospace Systems (United Technologies)	Rockford	IL		2015		100.0	%		38,833		364,000		9.37		9.0		5,100,000			-0-
103	Foundation Building Materials, LLC	Urbandale (Des Moines)	IA		1994		100.0	%		36,270		172,000		4.74		9.5		2,523,644			-0-
104	FedEx Corporation	Richland (Jackson)	MS		1994		100.0	%		36,000		120,000		3.33		5.8		1,900,691			-0-
105	FedEx Corporation	Punta Gorda	FL		2007		100.0	%		34,624		284,000		8.20		9.0		4,133,510			-0-
106	FedEx Corporation	Lakeland	FL		2006		100.0	%		32,105		155,000		4.83		9.4		2,000,336			-0-
107	FedEx Corporation	Augusta	GA		2006		100.0	%		30,184		121,000		4.01		4.4		1,977,779			-0-
108	Graybar Electric Company	Ridgeland (Jackson)	MS		1993		100.0	%		26,340		109,000		4.14		1.1		1,885,254			-0-
109	Sherwin-Williams Company	Burr Ridge (Chicago)	IL		1997		100.0	%		12,500		162,000		12.96		3.3		1,692,901			-0-
	Total as of 6/30/18						99.6	%		20,534,513	$	120,383,000	$	5.89		7.8	$	1,606,006,396	(A)	$	665,118,463

(A) Does not include unamortized debt issuance costs of $8,035,214.

Third Quarter FY 2018 Supplemental of Monmouth Real Estate Investment Corp. Page 19 of 24

Definitions

Investors and analysts following the real estate industry utilize funds from operations (“FFO”), core funds from operations (“Core FFO”), adjusted funds from operations (“AFFO”), net operating income (“NOI”), Same Property NOI, Same Property Cash NOI, and earnings before interest, taxes, depreciation and amortization for real estate, (“EBITDAre”)& (“Adjusted EBITDA”) 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, EBITDAre, Adjusted 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 to exclude 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 interest expense and general and administrative expenses. EBITDAre and Adjusted 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 supplemental tool to evaluate the Company’s performance. In addition, NOI, Same Property NOI, Same Property Cash NOI, EBITDAre, Adjusted 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 the following non-U.S. GAAP measures as follows:

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 sale of securities investments. NAREIT created FFO as a non-U.S. GAAP supplemental measure of REIT operating performance and is used by industry analysts and investors as a supplemental operating performance measure of a REIT.

Core FFO is calculated as FFO plus acquisition costs and costs associated with the redemption of preferred stock.

AFFOis calculated as Core FFO, excluding lease termination income, net gain or loss on sale of 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. Recurring capital expenditures are defined as all capital expenditures that are recurring in nature, 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.

NOIfrom property operations is calculated as net income attributable to common shareholders, as defined by U.S. GAAP, plus redemption of preferred stock, preferred dividends, general & administrative expenses, acquisitions costs, depreciation, amortization of capitalized lease costs & intangible assets and interest expense, including amortization of financing costs, less dividend and interest income, gain on sale of securities transactions, gain on sale of real estate investments, and lease termination income. The components of NOI consist of recurring rental and reimbursement revenue, less real estate taxes and operating expenses, such as insurance, utilities, and repairs and maintenance and other expenses.

Same Property NOIis calculated as 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 calculated as 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.

EBITDAre, as defined by NAREIT, is net income attributable to common shareholders, as defined by U.S. GAAP, plus preferred dividends, redemption of preferred stock, interest expense, including amortization of financing costs, depreciation and amortization, and plus losses (minus gains) on sales of real estate investments.

Adjusted EBITDA is calculated as EBITDAreplus acquisition costs, net amortization of acquired above and below market lease revenue, and plus losses (minus gains) on sale of securities transactions.

FFO, Core FFO, AFFO, NOI, Same Property NOI, Same Property Cash NOI, EBITDAre and Adjusted EBITDA,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. FFO, Core FFO, AFFO, NOI, Same Property NOI, Same Property Cash NOI, EBITDAre and Adjusted EBITDA 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. FFO, Core FFO, AFFO, NOI, Same Property NOI, Same Property Cash NOI, EBITDAre and Adjusted EBITDA, as currently calculated by the Company, may not be comparable to similarly titled, but variously calculated, measures of other REITs.

Third Quarter FY 2018 Supplemental of Monmouth Real Estate Investment Corp. Page 20 of 24

FOR IMMEDIATE RELEASE	August 1, 2018
	Contact: Susan Jordan
	732-577-9996

MONMOUTH REAL ESTATE REPORTS RESULTS FOR

THE THIRD QUARTER ENDED JUNE 30, 2018

FREEHOLD, NJ, August 1, 2018.              Monmouth Real Estate Investment Corporation (NYSE:MNR) reported Net Income Attributable to Common Shareholders of $10,323,000 or $0.13 per diluted share for the three months ended June 30, 2018 as compared to $5,217,000 or $0.07 per diluted share for the three months ended June 30, 2017 representing an increase per share of 86%. Core Funds from Operations (Core FFO) were $17,988,000 or $0.23 per diluted share for the three months ended June 30, 2018 as compared to $15,441,000 or $0.21 per diluted share for the three months ended June 30, 2017 representing an increase in Core FFO per share of 10%. Adjusted Funds from Operations (AFFO), for the three months ended June 30, 2018 were $17,348,000 or $0.22 per diluted share versus $13,960,000 or $0.19 per diluted share for the three months ended June 30, 2017 representing an increase in AFFO per share of 16%.

A summary of significant financial information for the three and nine months ended June 30, 2018 and 2017 is as follows:

	Three Months Ended June 30,
	2018		2017
Rental Revenue	$	29,256,000	$	24,400,000
Reimbursement Revenue	$	6,942,000	$	4,209,000
Net Operating Income (NOI) (1)	$	28,789,000	$	24,036,000
Total Expenses	$	19,073,000	$	14,131,000
Dividend and Interest Income	$	3,628,000	$	1,899,000
Gain on Sale of Securities Transactions	$	-0-	$	1,488,000
Gain on Sale of Real Estate Investments	$	2,097,000	$	-0-
Net Income	$	14,571,000	$	11,730,000
Net Income Attributable to Common Shareholders	$	10,323,000	$	5,217,000
Net Income Attributable to Common Shareholders Per Diluted Common Share	$	0.13	$	0.07
Core FFO (1)	$	17,988,000	$	15,441,000
Core FFO per Diluted Common Share (1)	$	0.23	$	0.21
AFFO (1)	$	17,348,000	$	13,960,000
AFFO per Diluted Common Share (1)	$	0.22	$	0.19
Dividends Declared per Common Share	$	0.17	$	0.16
Weighted Avg. Diluted Common Shares Outstanding		79,572,000		73,054,000

	Nine Months Ended June 30,
	2018		2017
Rental Revenue	$	85,559,000	$	71,292,000
Reimbursement Revenue	$	17,003,000	$	11,807,000
Lease Termination Income	$	210,000	$	-0-
Net Operating Income (NOI) (1)	$	84,597,000	$	70,184,000
Total Expenses	$	52,262,000	$	41,179,000
Dividend and Interest Income	$	9,380,000	$	4,631,000
Gain on Sale of Securities Transactions	$	111,000	$	2,294,000
Gain on Sale of Real Estate Investments	$	7,485,000	$	-0-
Net Income	$	43,846,000	$	30,009,000
Net Income Attributable to Common Shareholders	$	31,033,000	$	16,216,000
Net Income Attributable to Common Shareholders Per Diluted Common Share	$	0.40	$	0.23
Core FFO (1)	$	51,752,000	$	41,694,000
Core FFO per Diluted Common Share (1)	$	0.66	$	0.58
AFFO (1)	$	50,667,000	$	39,411,000
AFFO per Diluted Common Share (1)	$	0.65	$	0.55
Dividends Declared per Common Share	$	0.51	$	0.48
Weighted Avg. Diluted Common Shares Outstanding		78,099,000		71,423,000

A summary of significant balance sheet information as of June 30, 2018 and September 30, 2017 is as follows:

	June 30, 2018		September 30, 2017
Net Real Estate Investments	$	1,408,584,000	$	1,260,856,000
Securities Available for Sale at Fair Value	$	167,594,000	$	123,765,000
Total Assets	$	1,624,481,000	$	1,443,038,000
Fixed Rate Mortgage Notes Payable, net of Unamortized Debt Issuance Costs	$	657,083,000	$	591,364,000
Loans Payable	$	157,793,000	$	120,091,000
Total Shareholders’ Equity	$	788,914,000	$	712,866,000

Third Quarter FY 2018 Supplemental of Monmouth Real Estate Investment Corp. Page 21 of 24

Michael P. Landy, President and CEO, commented on the results for the third quarter of fiscal 2018,

“We are pleased to report another strong quarter for Monmouth. During the quarter we:

● Increased our per share Core FFO to $0.23, representing a 10% increase over the prior year period

● Increased our per share AFFO to $0.22, representing a 16% increase over the prior year period

● Increased our Net Income Attributable to Common Shareholders to $0.13 per share, representing an 86% increase over the prior year period

● Increased our Net Operating Income (NOI) by 20% over the prior year period

● Increased our Gross Revenue by 31% to $39.8 million, compared to $30.5 million in the prior year period

● Acquired two, brand new, Class A built-to-suit properties comprising 762,000 square feet, for a cost of $64.4 million

● Grew our acquisition pipeline over the quarter to four, brand new, Class A build-to-suit properties, representing 1.1 million square feet for a total purchase price of $221.4 million, all net-leased to investment grade tenants

● Increased our gross leasable area (GLA) by 15% to 20.5 million square feet over the prior year period

● Maintained our weighted average lease maturity at 7.8 years

● Increased our occupancy rate by 40 bps sequentially and maintained our sector leading occupancy rate year over year at 99.6% as of the quarter end

● Renewed 9 of the sixteen leases scheduled to expire in fiscal 2018. These 9 leases consist of 890,000 square feet and result in a 3.9% increase in GAAP rents and a 2.4% increase on a cash basis. These lease renewals have a weighted average lease term of 6.5 years

● Increased our securities investments by 16% during the quarter to $167.6 million, all attributable to rising prices on our holdings, and

● Reduced our weighted average interest rate on our fixed rate debt by 10 bps to 4.11% as of the current quarter end, and maintained our weighted average debt maturity on our fixed rate debt at 11.5 years.”

Mr. Landy further stated, “Monmouth has maintained or increased its common stock dividend for 26 consecutive years. We have increased our AFFO per share by 16% over the prior year quarter and by 18% year over year for the nine-month period. With a very conservative 77% AFFO dividend payout ratio this quarter, we remain confident about continuing to provide our shareholders with the high-quality, reliable income streams we have delivered for over a quarter century. This quarter represented our 10th consecutive quarter with an occupancy rate above 99%. At quarter end, our weighted average lease maturity remained 7.8 years, and our weighted average debt maturity remained 11.5 years, providing excellent long-term visibility for continued strong results.”

“Thus far in fiscal 2018, we have acquired five buildings comprising 2.0 million square feet and 260.4 total acres, for a total purchase price of $174.0 million. During the quarter, we acquired two, brand new, Class A built-to-suit properties for an aggregate cost of $64.4 million. One property consists of a 399,000 square foot industrial building, situated on 27.5 acres in Daytona Beach, FL, net-leased for 10 years to B. Braun Medical Inc. Florida consistently ranks as one of our nation’s strongest and most business-friendly states and represents 11% of our property portfolio. The other property is a 363,000 square foot industrial building, situated on 31.3 acres, located in Mobile, AL, and is net-leased to Amazon for 11 years. This property is strategically located at the Port of Mobile, a beneficiary of the recently expanded Panama Canal. With over 400 million tons in shipments last year, the Panama Canal has surpassed all projections. In a similar manner to building out our large ecommerce exposure in anticipation of the digital revolution, we have assembled a portfolio that is very well positioned to benefit from the remaking of the global supply chain.”

“Thus far in fiscal 2018, we have renewed nine of the sixteen leases that were set to expire. These nine lease renewals total 890,000 square feet, representing 58% of the expiring square footage. These lease renewals resulted in a 3.9% rental increase on a GAAP basis, and a 2.4% increase on a cash basis. These nine lease renewals have a weighted average lease term of 6.5 years. Three of the remaining seven properties were sold, generating substantial gains during fiscal 2018. One property has been re-tenanted and one 80,000 square foot lease did not renew. We expect to have more to report on the remaining two properties during the remainder of fiscal 2018.”

“Our REIT securities investments performed very well during the quarter with a total value of $167.6 million at quarter end representing a 16% increase over the prior quarter. All of this increase is attributable to rising prices on our holdings. Our securities investments had an unrealized loss of $8.4 million at quarter end representing a $22.8 million improvement over the prior quarter. Our securities investments generated $3.6 million in dividend income during the quarter representing a 91% increase over the prior year period. At quarter end, our REIT securities investments represented 9.2% of our total undepreciated assets.”

“Our acquisition pipeline grew over the quarter and currently contains four, brand new, Class A build-to-suit industrial buildings. Each of these four properties is net-leased to FedEx Ground Package System, Inc. These properties contain approximately 1.1 million total square feet and are situated on 235.2 total acres. The total purchase price for these four properties is approximately $221.4 million with a weighted average lease term of 13.9 years. We anticipate closing these transactions sometime during the remainder of fiscal 2018 and the first quarter of fiscal 2019. We look forward to reporting continued progress throughout the year.”

Third Quarter FY 2018 Supplemental of Monmouth Real Estate Investment Corp. Page 22 of 24

Monmouth Real Estate Investment Corporation will host its Third Quarter FY 2018 Financial Results Webcast and Conference Call on Thursday, August 2, 2018 at 10:00 a.m. Eastern Time. Senior management will discuss the results, current market conditions and future outlook.

The Company’s Third Quarter FY 2018 financial results being released herein will be available on the Company’s website atwww.mreic.reit in the Investor Relations section, under Filings and Reports.

To participate in theWebcast, select the3Q2018 Webcast and Earnings Call “Link to Webcast” on the homepage of the Company’s website at www.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 August 2, 2018. It will be available until November 20, 2018, and can be accessed by dialing toll free 877-344-7529 (domestically) and 412-317-0088 (internationally) and entering the passcode 10120748. 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 world. 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 109 properties containing a total of approximately 20.5 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 and costs associated with the redemption of preferred stock. We define AFFO as Core FFO, excluding lease termination income, net gain or loss on sale of 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 that are recurring in nature, 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 taxes 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.

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 nine months ended June 30, 2018 and 2017:

	Three Months Ended						Nine Months Ended
		6/30/2018			6/30/2017			6/30/2018			6/30/2017
Net Income Attributable to Common Shareholders	$	10,323,000		$	5,217,000		$	31,033,000		$	16,216,000
Plus: Depreciation Expense (excluding Corporate Office Capitalized Costs)		9,123,000			7,279,000			26,386,000			21,333,000
Plus: Amortization of Intangible Assets		417,000			263,000			1,158,000			771,000
Plus: Amortization of Capitalized Lease Costs		222,000			215,000			660,000			633,000
Less: (Gain) / Plus: Loss on Sale of Real Estate Investments		(2,097,000	)		-0-			(7,485,000	)		95,000
FFO Attributable to Common Shareholders		17,988,000			12,974,000			51,752,000			39,048,000
Plus: Acquisition Costs		-0-			-0-			-0-			179,000
Plus: Redemption of Preferred Stock		-0-			2,467,000			-0-			2,467,000
Core FFO Attributable to Common Shareholders		17,988,000			15,441,000			51,752,000			41,694,000
Plus: Depreciation of Corporate Office Capitalized Costs		39,000			39,000			118,000			117,000
Plus: Stock Compensation Expense		97,000			175,000			339,000			441,000
Plus: Amortization of Financing Costs		315,000			283,000			911,000			950,000
Less: Gain on Sale of Securities Transactions		-0-			(1,488,000	)		(111,000	)		(2,294,000	)
Less: Lease Termination Income		-0-			-0-			(210,000	)		-0-
Less: Recurring Capital Expenditures		(490,000	)		(195,000	)		(774,000	)		(572,000	)
Less: Effect of Non-cash U.S. GAAP Straight-line Rent Adjustment		(601,000	)		(295,000	)		(1,358,000	)		(925,000	)
AFFO Attributable to Common Shareholders	$	17,348,000		$	13,960,000		$	50,667,000		$	39,411,000

Third Quarter FY 2018 Supplemental of Monmouth Real Estate Investment Corp. Page 23 of 24

The following are the Cash Flows provided (used) by Operating, Investing and Financing Activities for the nine months ended June 30, 2018 and 2017:

	Nine Months Ended
		6/30/2018			6/30/2017
Operating Activities	$	63,094,000		$	50,191,000
Investing Activities		(216,285,000	)		(232,827,000	)
Financing Activities		149,857,000			(98,637,000	)

# # # # #

Third Quarter FY 2018 Supplemental of Monmouth Real Estate Investment Corp. Page 24 of 24