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

Exhibit 99.1

Table of Contents

	Page
Consolidated Balance Sheets	3
Consolidated Statements of Income (Loss)	4
FFO, AFFO and Adjusted EBITDA Reconciliations	5
NOI Reconciliations	6
Financial Highlights	7
Same Property Statistics	9
Consolidated Statements of Cash Flows	10
Capital Structure and Leverage Ratios	11
Debt Maturity	13
Property Table by Tenant	14
Property Table by State	15
Lease Expirations	16
Recent Acquisitions	17
Property Table	18
Definitions	21
Press Release Dated May 6, 2020	22

The statement of operations and supplemental statement of operations provided in this supplemental information package present funds from operations (FFO), adjusted funds from operations (AFFO), net operating income (NOI) 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 21 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

(in thousands except for per share amounts)

	As of			As of
	March 31,			September 30,
	2020			2019
	(unaudited)
ASSETS
Real Estate Investments:
Land	$	245,096		$	239,299
Buildings and Improvements		1,721,612			1,627,219
Total Real Estate Investments		1,966,708			1,866,518
Accumulated Depreciation		(272,372	)		(249,584	)
Real Estate Investments		1,694,336			1,616,934
Cash and Cash Equivalents		35,913			20,179
Securities Available for Sale at Fair Value		99,035			185,250
Tenant and Other Receivables		3,688			1,335
Deferred Rent Receivable		12,340			11,199
Prepaid Expenses		11,915			6,714
Intangible Assets, net of Accumulated Amortization of $16,701 and $15,686, respectively		16,456			14,970
Capitalized Lease Costs, net of Accumulated Amortization of $3,895 and $3,378, respectively		5,931			5,670
Financing Costs, net of Accumulated Amortization of $162 and $1,352, respectively		1,569			144
Other Assets		8,865			9,553
TOTAL ASSETS	$	1,890,048		$	1,871,948
LIABILITIES AND SHAREHOLDERS’ EQUITY
Liabilities:
Fixed Rate Mortgage Notes Payable, net of Unamortized Debt Issuance Costs	$	779,742		$	744,928
Loans Payable		75,000			95,000
Accounts Payable and Accrued Expenses		4,257			3,570
Other Liabilities		22,206			17,407
Total Liabilities		881,205			860,905
COMMITMENTS AND CONTINGENCIES
Shareholders’ Equity:
6.125% Series C Cumulative Redeemable Preferred Stock, $0.01 Par Value Per Share: 21,900 and 16,400 Shares Authorized as of March 31, 2020 and September 30, 2019, respectively; 17,169 and 13,907 Shares Issued and Outstanding as of March 31, 2020 and September 30, 2019, respectively		429,215			347,678
Common Stock, $0.01 Par Value Per Share: 200,000 and 188,040 Shares Authorized as of March 31, 2020 and September 30, 2019, respectively; 97,980 and 96,399 Shares Issued and Outstanding as of March 31, 2020 and September 30, 2019, respectively		980			964
Excess Stock, $0.01 Par Value Per Share: 200,000 Shares Authorized as of March 31, 2020 and September 30, 2019; No Shares Issued or Outstanding as of March 31, 2020 and September 30, 2019		-0-			-0-
Additional Paid-In Capital		578,648			662,401
Undistributed Income		-0-			-0-
Total Shareholders’ Equity		1,008,843			1,011,043
TOTAL LIABILITIES & SHAREHOLDERS’ EQUITY	$	1,890,048		$	1,871,948

SECOND QUARTER FISCAL YEAR 2020 SUPPLEMENTAL INFORMATION 3

Consolidated Statements of Income (Loss)

(unaudited) (in thousands)

	For The						For The
	Three Months Ended						Six Months Ended
	3/31/2020			3/31/2019			3/31/2020			3/31/2019
INCOME:
Rental Revenue	$	35,114		$	32,934		$	69,983		$	65,551
Reimbursement Revenue		6,594			5,447			13,424			11,053
TOTAL INCOME		41,708			38,381			83,407			76,604
EXPENSES:
Real Estate Taxes		5,029			4,163			10,064			8,203
Operating Expenses		1,634			1,673			3,831			3,537
General & Administrative Expenses		2,396			2,252			4,660			4,069
Non-recurring Severance Expense		-0-			-0-			786			-0-
Depreciation		11,475			10,756			22,907			21,234
Amortization of Capitalized Lease Costs and Intangible Assets		767			721			1,521			1,423
TOTAL EXPENSES		21,301			19,565			43,769			38,466
OTHER INCOME (EXPENSE):
Dividend Income		3,404			3,515			6,642			7,882
Unrealized Holding Gains (Losses) Arising During the Periods		(83,075	)		15,568			(86,710	)		(27,059	)
Interest Expense, including Amortization of Financing Costs		(9,050	)		(9,598	)		(18,259	)		(18,603	)
TOTAL OTHER INCOME (EXPENSE)		(88,721	)		9,485			(98,327	)		(37,780	)
NET INCOME (LOSS)		(68,314	)		28,301			(58,689	)		358
Less: Preferred Dividends		6,764			4,480			12,862			8,901
NET INCOME (LOSS) ATTRIBUTABLE TO
COMMON SHAREHOLDERS	$	(75,078	)	$	23,821		$	(71,551	)	$	(8,543	)

SECOND QUARTER FISCAL YEAR 2020 SUPPLEMENTAL INFORMATION 4

FFO, AFFO and Adjusted EBITDA Reconciliations

(unaudited) (in thousands)

	For The						For The
	Three Months Ended						Six Months Ended
	3/31/2020			3/31/2019			3/31/2020			3/31/2019
FFO, AFFO
Net Income (Loss) Attributable to Common Shareholders	$	(75,078	)	$	23,821		$	(71,551	)	$	(8,543	)
Less/Plus: Unrealized Holding (Gains) Losses Arising During the Periods(1)		83,075			(15,568	)		86,710			27,059
Plus: Depreciation Expense (excluding Corporate Office Capitalized Costs)		11,409			10,589			22,788			21,026
Plus: Amortization of Intangible Assets		508			505			1,016			1,005
Plus: Amortization of Capitalized Lease Costs		285			241			557			470
FFO Attributable to Common Shareholders		20,199			19,588			39,520			41,017
Plus: Depreciation of Corporate Office Capitalized Costs		66			167			118			208
Plus: Stock Compensation Expense		114			215			270			344
Plus: Amortization of Financing Costs		322			320			758			637
Plus: Non-recurring Severance Expense		-0-			-0-			786			-0-
Less: Recurring Capital Expenditures		(717	)		(630	)		(936	)		(1,187	)
Less: Effect of Non-cash U.S. GAAP Straight-line Rent Adjustment		(632	)		(488	)		(1,232	)		(825	)
AFFO Attributable to Common Shareholders	$	19,352		$	19,172		$	39,284		$	40,194

	For The						For The
	Three Months Ended						Six Months Ended
	3/31/2020			3/31/2019			3/31/2020			3/31/2019
Adjusted EBITDA
Net Income (Loss) Attributable to Common Shareholders	$	(75,078	)	$	23,821		$	(71,551	)	$	(8,543	)
Plus: Preferred Dividends		6,764			4,480			12,862			8,901
Plus: Interest Expense, including Amortization of Financing Costs		9,050			9,598			18,259			18,603
Plus: Depreciation and Amortization		12,242			11,477			24,428			22,658
Plus: Net Amortization of Acquired Above and Below Market Lease Revenue		26			25			51			51
Less/Plus: Unrealized Holding (Gains) Losses Arising During the Periods		83,075			(15,568	)		86,710			27,059
Adjusted EBITDA	$	36,079		$	33,833		$	70,759		$	68,729

(1) Unrealized Holding Gains or Losses Arising During the Periods, if any, were previously reported as an adjustment to Core Funds From Operations (Core FFO).

SECOND QUARTER FISCAL YEAR 2020 SUPPLEMENTAL INFORMATION 5

NOI Reconciliations

(unaudited) (in thousands)

	For The						For The
	Three Months Ended						Six Months Ended
	3/31/2020			3/31/2019			3/31/2020			3/31/2019
Net Operating Income
Net Income (Loss) Attributable to Common Shareholders	$	(75,078	)	$	23,821		$	(71,551	)	$	(8,543	)
Plus: Preferred Dividends		6,764			4,480			12,862			8,901
Plus: General & Administrative Expenses		2,396			2,252			4,660			4,069
Plus: Non-recurring Severance Expense		-0-			-0-			786			-0-
Plus: Depreciation		11,475			10,756			22,907			21,234
Plus: Amortization of Capitalized Lease Costs and Intangible Assets		767			721			1,521			1,423
Plus: Interest Expense, including Amortization of Financing Costs		9,050			9,598			18,259			18,603
Less/Plus: Unrealized Holding (Gains) Losses Arising During the Periods		83,075			(15,568	)		86,710			27,059
Less: Dividend Income		(3,404	)		(3,515	)		(6,642	)		(7,882	)
Net Operating Income – NOI	$	35,045		$	32,545		$	69,512		$	64,864

	For The				For The
	Three Months Ended				Six Months Ended
	3/31/2020		3/31/2019		3/31/2020		3/31/2019
Components of Net Operating Income Consists of:
Revenues:
Rental Revenue	$	35,114	$	32,934	$	69,983	$	65,551
Reimbursement Revenue		6,594		5,447		13,424		11,053
Total Rental and Reimbursement Revenue		41,708		38,381		83,407		76,604
Expenses:
Real Estate Taxes		5,029		4,163		10,064		8,203
Operating Expenses		1,634		1,673		3,831		3,537
Total Real Estate Taxes and Operating Expenses		6,663		5,836		13,895		11,740
Net Operating Income – NOI	$	35,045	$	32,545	$	69,512	$	64,864

SECOND QUARTER FISCAL YEAR 2020 SUPPLEMENTAL INFORMATION 6

Financial Highlights

(unaudited) (in thousands except for per share amounts)

	For The									For The
	Three Months Ended									Six Months Ended
	3/31/2020			3/31/2019			Change (%)			3/31/2020			3/31/2019			Change (%)
Weighted Average Common Shares Outstanding
Basic		97,864			92,978			5.3	%		97,370			91,728			6.2	%
Diluted		97,941			93,059			5.2	%		97,466			91,831			6.1	%
Net Income (Loss) Attributable to Common Shareholders	$	(75,078	)	$	23,821			(415.2	)%	$	(71,551	)	$	(8,543	)		(737.5	)%
Basic	$	(0.77	)	$	0.26			(396.2	)%	$	(0.73	)	$	(0.09	)		(711.1	)%
Diluted		(0.77	)		0.26			(396.2	)%		(0.73	)		(0.09	)		(711.1	)%
Net Operating Income – NOI	$	35,045		$	32,545			7.7	%	$	69,512		$	64,864			7.2	%
Basic	$	0.36		$	0.35			2.9	%	$	0.71		$	0.71			0.0	%
Diluted		0.36			0.35			2.9	%		0.71			0.71			0.0	%
Funds From Operations – FFO	$	20,199		$	19,588			3.1	%	$	39,520		$	41,017			(3.6	)%
Basic	$	0.21		$	0.21			0.0	%	$	0.41		$	0.45			(8.9	)%
Diluted		0.21			0.21			0.0	%		0.41			0.45			(8.9	)%
Adjusted Funds From Operations – AFFO	$	19,352		$	19,172			0.9	%	$	39,284		$	40,194			(2.3	)%
Basic	$	0.20		$	0.21			(4.8	)%	$	0.40		$	0.44			(9.1	)%
Diluted		0.20			0.21			(4.8	)%		0.40			0.44			(9.1	)%
Dividends Declared per Common Share	$	0.17		$	0.17					$	0.34		$	0.34
Dividend/AFFO Payout Ratio		85.0	%		81.0	%					85.0	%		77.3	%

SECOND QUARTER FISCAL YEAR 2020 SUPPLEMENTAL INFORMATION 7

Same Property Statistics

(unaudited) (in thousands except for square feet)

	For The Three Months Ended
	3/31/2020				3/31/2019			Change		Change %
Total Square Feet / Total Properties		23,019,627 / 116				21,802,046 / 113			1,217,581		5.6	%
Occupancy Percentage at End of Period		99.4	%			98.9	%		50 bps		0.5	%
Same Property Square Feet / Number of Same Properties				21,513,880 / 112
Same Property Occupancy Percentage at End of Period		99.4	%			98.9	%		50 bps		0.5	%
Same Property Net Operating Income (NOI) (GAAP)	$	32,834			$	32,201		$	633		2.0	%
Reversal of Effect of Non-cash U.S. GAAP Straight-line Rent Adjustment		(435	)			(454	)		19
Same Property Cash NOI	$	32,399			$	31,747		$	652		2.1	%

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

Reconciliation of Same Property NOI to Total NOI

(unaudited) (in thousands)

	For The
	Three Months Ended
	3/31/2020		3/31/2019		Change		Change %
Same Property NOI (GAAP)	$	32,834	$	32,201	$	633		2.0	%
NOI of properties purchased subsequent to December 31, 2018 (one property purchased during fiscal 2019 and two properties purchased during fiscal 2020)		1,700		0
NOI of property expanded subsequent to December 31, 2018 (one property expanded during fiscal 2019)		511		344
Total NOI	$	35,045	$	32,545	$	2,500		7.7	%

SECOND QUARTER FISCAL YEAR 2020 SUPPLEMENTAL INFORMATION 8

Same Property Statistics

(unaudited) (in thousands except for square feet)

	For The Six Months Ended
	3/31/2020				3/31/2019			Change		Change %
Total Square Feet / Total Properties		23,019,627 / 116				21,802,046 / 113			1,217,581		5.6	%
Occupancy Percentage at End of Period		99.4	%			98.9	%		50 bps		0.5	%
Same Property Square Feet / Number of Same Properties				21,040,215 / 110
Same Property Occupancy Percentage at End of Period		99.3	%			98.9	%		40 bps		0.4	%
Same Property Net Operating Income (NOI) (GAAP)	$	61,709			$	61,178		$	531		0.9	%
Reversal of Effect of Non-cash U.S. GAAP Straight-line Rent Adjustment		(878	)			(919	)		41
Same Property Cash NOI	$	60,831			$	60,259		$	572		0.9	%

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

Reconciliation of Same Property NOI to Total NOI

(unaudited) (in thousands)

	For The Six Months Ended
	3/31/2020		3/31/2019		Change		Change %
Same Property NOI (GAAP)	$	61,709	$	61,178	$	531		0.9	%
NOI of properties purchased subsequent to September 30, 2018 (three properties purchased during fiscal 2019 and two properties purchased during fiscal 2020)		6,782		3,084
NOI of property expanded subsequent to September 30, 2018 (one property expanded during fiscal 2019)		1,021		602
Total NOI	$	69,512	$	64,864	$	4,648		7.2	%

SECOND QUARTER FISCAL YEAR 2020 SUPPLEMENTAL INFORMATION 9

Consolidated Statements of Cash Flows

(unaudited)(in thousands)

	For The
	Six Months Ended
	3/31/2020			3/31/2019
CASH FLOWS FROM OPERATING ACTIVITIES
Net Income (Loss)	$	(58,689	)	$	358
Noncash Items Included in Net Income (Loss):
Depreciation & Amortization		25,186			23,294
Deferred Straight Line Rent		(1,232	)		(825	)
Stock Compensation Expense		270			344
Securities received as Dividend Income		(745	)		(430	)
Unrealized Holding Losses Arising During the Periods		86,710			27,059
Changes in:
Tenant & Other Receivables		(2,302	)		(401	)
Prepaid Expenses		(5,201	)		(4,041	)
Other Assets & Capitalized Lease Costs		(1,380	)		1,349
Accounts Payable, Accrued Expenses & Other Liabilities		5,237			3,511
NET CASH PROVIDED BY OPERATING ACTIVITIES		47,854			50,218
CASH FLOWS FROM INVESTING ACTIVITIES
Purchase of Real Estate & Intangible Assets		(99,424	)		(113,406	)
Capital Improvements		(3,314	)		(9,205	)
Return of Deposits on Real Estate		1,300			200
Deposits Paid on Acquisitions of Real Estate		(200	)		(1,550	)
Proceeds from Sale of Securities Available for Sale Called for Redemption		250			-0-
Purchase of Securities Available for Sale		-0-			(49,067	)
NET CASH USED IN INVESTING ACTIVITIES		(101,388	)		(173,028	)
CASH FLOWS FROM FINANCING ACTIVITIES
Net Repayments on Loans Payable		(20,000	)		(56,850	)
Proceeds from Fixed Rate Mortgage Notes Payable		61,900			72,500
Principal Payments on Fixed Rate Mortgage Notes Payable		(27,191	)		(29,929	)
Financing Costs Paid on Debt		(2,078	)		(443	)
Proceeds from the Exercise of Stock Options		1,016			567
Proceeds from Underwritten Public Offering of Common Stock, net of offering costs		-0-			132,338
Proceeds from At-The-Market 6.125% Series C Preferred Stock, net of offering costs		80,288			11,282
Proceeds from Issuance of Common Stock in the DRIP, net of Dividend Reinvestments		18,489			32,147
Shares repurchased through the Common Stock Repurchase Plan		(3,209	)		-0-
Preferred Dividends Paid		(12,445	)		(8,839	)
Common Dividends Paid, net of Reinvestments		(27,502	)		(22,929	)
NET CASH PROVIDED BY FINANCING ACTIVITIES		69,268			129,844
NET INCREASE IN CASH AND CASH EQUIVALENTS		15,734			7,034
CASH AND CASH EQUIVALENTS - BEGINNING OF PERIOD		20,179			9,324
CASH AND CASH EQUIVALENTS - END OF PERIOD	$	35,913		$	16,358

SECOND QUARTER FISCAL YEAR 2020 SUPPLEMENTAL INFORMATION 10

Capital Structure and Leverage Ratios

(unaudited) (in thousands except for per share amounts)

	As of			As of			As of
	3/31/2020			3/31/2019			9/30/2019
Fixed Rate Mortgage Notes Payable, net of Unamortized Debt Issuance Costs	$	779,742		$	754,123		$	744,928
Loans Payable		75,000			129,759			95,000
Total Debt		854,742			883,882			839,928
6.125% Series C Cumulative Redeemable Preferred Stock		429,215			299,230			347,678
Common Stock, Additional Paid-In-Capital & Other		579,628			643,882			663,365
Total Shareholders’ Equity		1,008,843			943,112			1,011,043
Total Book Capitalization		1,863,585			1,826,994			1,850,971
Accumulated Depreciation		272,372			228,092			249,584
Total Undepreciated Book Capitalization	$	2,135,957		$	2,055,086		$	2,100,555
Shares Outstanding		97,980			93,869			96,399
Market Price Per Share	$	12.05		$	13.18		$	14.41
Equity Market Capitalization	$	1,180,654		$	1,237,194		$	1,389,107
Total Debt		854,742			883,882			839,928
Total Preferred Stock		429,215			299,230			347,678
Total Market Capitalization	$	2,464,611		$	2,420,306		$	2,576,713
Total Debt	$	854,742		$	883,882		$	839,928
less: Cash and Cash Equivalents		35,913			16,358			20,179
Net Debt	$	818,829		$	867,524		$	819,749
less: Securities Available for Sale at Fair Value (Securities)		99,035			177,359			185,250
Net Debt Less Securities	$	719,794		$	690,165		$	634,499
Net Debt / Total Undepreciated Book Capitalization		38.3	%		42.2	%		39.0	%
Net Debt / Total Market Capitalization		33.2	%		35.8	%		31.8	%
Net Debt Plus Preferred Stock / Total Market Capitalization		50.6	%		48.2	%		45.3	%
Net Debt Less Securities / Total Undepreciated Book Capitalization		33.7	%		33.6	%		30.2	%
Net Debt Less Securities / Total Market Capitalization		29.2	%		28.5	%		24.6	%
Net Debt Less Securities Plus Preferred Stock / Total Market Capitalization		46.6	%		40.9	%		38.1	%
Weighted Average Interest Rate on Fixed Rate Mortgage Debt		4.04	%		4.07	%		4.03	%
Weighted Average Term on Fixed Rate Mortgage Debt		11.3 yrs.			11.6 yrs.			11.3 yrs.
Weighted Average Interest Rate on Fixed Rate Debt (1)		3.94	%		4.07	%		4.03	%
Weighted Average Term on Fixed Rate Debt (1)		10.7 yrs.			11.6 yrs.			11.3 yrs.
Weighted Average Lease Term		7.4 yrs.			8.0 yrs.			7.6 yrs.

(1) For the quarter ended 3/31/20, Fixed Rate Debt (excluding unamortized debt issue costs) includes $788 million in Fixed Rate Mortgage Debt and a $75 million term loan that is fixed with a LIBOR interest rate swap agreement. We obtained the $75 million term loan during the six months ended 3/31/20. Therefore, for prior year quarters presented, the Fixed Rate Debt only includes Fixed Rate Mortgage Debt.

SECOND QUARTER FISCAL YEAR 2020 SUPPLEMENTAL INFORMATION 11

Capital Structure and Leverage Ratios

(unaudited) (in thousands)

	For the Three Months Ended						For the Six Months Ended						Fiscal Year Ended
	3/31/2020			3/31/2019			3/31/2020			3/31/2019			9/30/2019
Net Income (Loss) Attributable to Common Shareholders	$	(75,078	)	$	23,821		$	(71,551	)	$	(8,543	)	$	11,026
Plus: Preferred Dividends		6,764			4,480			12,862			8,901			18,774
Plus: Interest Expense, including Amortization of Financing Costs		9,050			9,598			18,259			18,603			36,912
Plus: Depreciation and Amortization		12,242			11,477			24,428			22,658			45,890
Plus: Net Amortization of Acquired Above and Below Market Lease Revenue		26			25			51			51			103
Less/Plus: Unrealized Holding (Gains) Losses Arising During the Periods		83,075			(15,568	)		86,710			27,059			24,680
Adjusted EBITDA	$	36,079		$	33,833		$	70,759		$	68,729		$	137,385
Interest Expense, including Amortization of Financing Costs	$	9,050		$	9,598		$	18,259		$	18,603		$	36,912
Preferred Dividends		6,764			4,480			12,862			8,901			18,774
Total Fixed Charges	$	15,814		$	14,078		$	31,121		$	27,504		$	55,686
Interest Coverage		4.0 x			3.5 x			3.9 x			3.7 x			3.7 x
Fixed Charge Coverage		2.3 x			2.4 x			2.3 x			2.5 x			2.5 x
Net Debt	$	818,829		$	867,524		$	818,829		$	867,524		$	819,749
Net Debt Less Securities		719,794			690,165			719,794			690,165			634,499
Total Preferred Stock		429,215			299,230			429,215			299,230			347,678
Annualized Adjusted EBITDA		144,316			135,332			141,518			137,458			137,385
Net Debt / Adjusted EBITDA		5.7 x			6.4 x			5.8 x			6.3 x			6.0 x
Net Debt Less Securities / Adjusted EBITDA		5.0 x			5.1 x			5.1 x			5.0 x			4.6 x
Net Debt + Preferred Stock / Adjusted EBITDA		8.6 x			8.6 x			8.8 x			8.5 x			8.5 x
Net Debt Less Securities + Preferred Stock / Adjusted EBITDA		8.0 x			7.3 x			8.1 x			7.2 x			7.1 x

SECOND QUARTER FISCAL YEAR 2020 SUPPLEMENTAL INFORMATION 12

Debt Maturity

(unaudited) (In thousands)

Fiscal Year Ended		Mortgages			Loans Payable				Total			% of Total
2020		$	28,156		$	-0-			$	28,156			3.3	%
2021			58,193			-0-				58,193			6.7	%
2022			80,477			-0-				80,477			9.3	%
2023			59,338			-0-				59,338			6.9	%
2024			72,535			-0-				72,535			8.4	%
Thereafter			488,926			75,000		(B)		563,926			65.4	%
Total as of 3/31/2020	(A)	$	787,625		$	75,000			$	862,625			100.0	%
Weighted Average Interest Rate			4.04	%		2.92	%			3.94	%
Weighted Average Term			11.3 yrs.			4.8 yrs.				10.7 yrs.

(A)	Mortgages does not include unamortized debt issuance costs of $7.9 million.
(B)	Represents a Term Loan maturing January 2025.

SECOND QUARTER FISCAL YEAR 2020 SUPPLEMENTAL INFORMATION 13

Property Table by Tenant

(unaudited)

Tenant		Property Count		Square Footage		Occupied Square Footage		% of Occupied sf			Annual Rent		% of Total Ann. Rent			Rent Per sf Occup.		Undepreciated Cost			Mortgage Balance
FedEx Ground Package System, Inc.			44		8,815,312		8,815,312		38.3	%	$	71,005,000		49.4	%	$	8.05	$	1,008,572,421		$	434,473,387
FedEx Corporation			15		1,095,096		1,095,096		4.8	%		6,720,000		4.7	%		6.14		95,883,586			12,598,966
FedEx Forward Depots, Inc.			1		449,900		449,900		2.0	%		1,394,000		0.9	%		3.10		16,092,852			3,758,157
Total FedEx			60		10,360,308		10,360,308		45.1	%		79,119,000		55.0	%		7.64		1,120,548,859			450,830,510
Amazon.com Services, Inc. (Amazon.com, Inc.)			4		1,370,465		1,370,465		6.0	%		9,709,000		6.8	%		7.08		151,565,650			86,911,455
Milwaukee Electric Tool Corporation			1		861,889		861,889		3.7	%		3,076,000		2.1	%		3.57		36,914,917			18,987,962
Shaw Industries, Inc.			1		831,764		831,764		3.6	%		3,529,000		2.5	%		4.24		56,025,945			29,322,922
ULTA, Inc.			1		671,354		671,354		2.9	%		2,755,000		1.9	%		4.10		37,540,423			18,070,216
Jim Beam Brands Company (Beam Suntory)			1		599,840		599,840		2.6	%		2,092,000		1.5	%		3.49		28,000,000			15,155,360
International Paper Company			2		578,472		578,472		2.5	%		2,639,000		1.8	%		4.56		37,024,608			18,591,412
TreeHouse Private Brands, Inc.			1		558,600		558,600		2.4	%		2,246,000		1.6	%		4.02		26,807,852			14,185,207
Autoneum North America, Inc.			1		413,605		413,605		1.8	%		2,221,000		1.5	%		5.37		21,040,396			13,276,078
B. Braun Medical Inc.			1		399,440		399,440		1.7	%		2,159,000		1.5	%		5.41		30,008,069			17,727,063
UGN, Inc.			1		387,000		387,000		1.7	%		2,088,000		1.5	%		5.40		21,576,756			13,098,389
CBOCS Distribution, Inc. (Cracker Barrel)			1		381,240		381,240		1.7	%		1,475,000		1.0	%		3.87		14,215,126			-0-
Best Buy Warehousing Logistics, LLC			1		368,060		368,060		1.6	%		1,709,000		1.2	%		4.64		19,600,000			8,356,776
Toyota Tsusho America, Inc.			1		350,000		350,000		1.5	%		1,710,000		1.2	%		4.89		25,078,587			16,521,184
Coca-Cola			2		323,358		323,358		1.4	%		1,725,000		1.2	%		5.33		20,504,069			2,888,659
Science Applications International Corporation			1		302,400		302,400		1.3	%		1,683,000		1.2	%		5.57		14,446,471			-0-
Bunzl USA Holdings, Inc.			2		268,778		268,778		1.2	%		1,500,000		1.0	%		5.58		18,731,674			11,275,723
Woodstream Corporation	(A)		1		256,000		256,000		1.1	%		932,000		0.6	%		3.64		8,958,278			-0-
Anda Pharmaceuticals, Inc.			1		234,660		234,660		1.0	%		1,215,000		0.8	%		5.18		14,550,000			6,596,916
United Technologies Corporation			2		223,150		223,150		1.0	%		1,507,000		1.0	%		6.75		23,594,917			5,185,920
Mickey Thompson Performance Tires and Wheels (Cooper Tire)			1		219,765		219,765		1.0	%		1,523,000		1.1	%		6.93		18,934,065			11,149,989
Rinnai America Corporation			1		218,120		218,120		0.9	%		851,000		0.6	%		3.90		15,082,217			-0-
Anheuser-Busch, Inc.			1		184,800		184,800		0.8	%		843,000		0.6	%		4.56		12,697,848			-0-
Carlisle Tire & Wheel Company			1		179,280		179,280		0.8	%		765,000		0.5	%		4.27		7,232,986			-0-
NF&M International, Inc.	(B)		1		174,802		174,802		0.8	%		841,000		0.6	%		4.81		5,411,182			-0-
Home Depot USA, Inc.			1		171,200		171,200		0.7	%		1,064,000		0.7	%		6.21		11,303,317			-0-
Magna Seating of America, Inc.			1		153,000		153,000		0.7	%		1,197,000		0.8	%		7.82		17,557,830			9,400,000
Victory Packaging, L.P.			1		148,000		148,000		0.6	%		514,000		0.4	%		3.47		5,455,379			-0-
Challenger Lifts, Inc. (Snap-On Inc.)			1		137,500		137,500		0.6	%		852,000		0.6	%		6.20		11,304,000			5,913,698
Altec Industries, Inc.	(A)		1		126,880		126,880		0.6	%		376,000		0.3	%		2.96		4,439,947			-0-
General Electric Company			1		125,860		125,860		0.5	%		1,334,000		0.9	%		10.60		19,964,283			10,000,245
Keurig Dr Pepper			2		110,080		110,080		0.5	%		753,000		0.5	%		6.84		10,498,031			1,483,106
Style Crest, Inc.			1		106,507		106,507		0.5	%		398,000		0.3	%		3.74		7,263,673			-0-
Sonwil Distribution Center, Inc.			1		104,981		104,981		0.5	%		630,000		0.4	%		6.00		10,960,823			-0-
Pittsburgh Glass Works, LLC			1		102,135		102,135		0.4	%		450,000		0.3	%		4.41		4,249,615			-0-
Dakota Bodies, LLC			1		96,687		96,687		0.4	%		378,000		0.3	%		3.91		7,785,314			-0-
National Oilwell Varco, Inc.			1		91,295		91,295		0.4	%		796,000		0.6	%		8.72		8,163,278			1,377,267
Joseph T. Ryerson and Son, Inc.			1		89,052		89,052		0.4	%		514,000		0.4	%		5.77		7,066,732			-0-
CHEP USA, Inc.			1		83,000		83,000		0.4	%		506,000		0.4	%		6.10		7,463,672			-0-
Sherwin-Williams Company			2		78,887		78,887		0.3	%		648,000		0.5	%		8.21		7,258,078			-0-
RGH Enterprises, Inc. (Cardinal Health)			1		75,000		75,000		0.3	%		619,000		0.4	%		8.25		5,525,600			-0-
Tampa Bay Grand Prix			1		68,385		68,385		0.3	%		361,000		0.3	%		5.28		5,677,982			-0-
Various Tenants at Retail Shopping Center			1		64,220		62,440		0.3	%		784,000		0.5	%		12.56		3,139,564			-0-
SOFIVE, Inc.			1		60,400		60,400		0.3	%		633,000		0.4	%		10.48		5,296,752			1,318,819
Locke Supply Co.			1		60,000		60,000		0.3	%		325,000		0.2	%		5.42		4,914,955			-0-
Siemens Real Estate			1		51,130		51,130		0.1	%		459,000		0.3	%		8.98		4,452,425			-0-
Foundation Building Materials, LLC			1		36,270		36,270		0.1	%		178,000		0.1	%		4.91		2,543,770			-0-
Graybar Electric Company			1		26,340		26,340		0.1	%		121,000		0.1	%		4.59		2,312,027			-0-
Vacant	(B)		2		135,668		-0-		0.0	%		-0-		0.0	%		-0-		6,009,731			-0-
Total as of 3/31/20			116		23,019,627		22,882,179		99.4	%	$	143,802,000		100.0	%	$	6.28	$	1,966,697,673	(C)	$	787,624,876

(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 two properties indicated in footnotes (A) and (B) and one retail property, all properties are single-tenant.
(C)	Does not include unamortized debt issuance costs of $7,883,277.

SECOND QUARTER FISCAL YEAR 2020 SUPPLEMENTAL INFORMATION 14

Property Table by State

(unaudited)

State	Property Count		Square Footage		Occupied Square Footage		% of Total sf			Annual Rent		% of Total Ann. Rent			Rent Per sf Occup.		Undepreciated Cost			Mortgage Balance
Florida		13		2,211,583		2,211,583		9.6	%	$	15,817,000		11.0	%	$	7.15	$	227,294,042		$	87,155,584
Indiana		4		1,964,923		1,964,923		8.5	%		11,132,000		7.7	%		5.67		167,487,002			95,387,657
Ohio		10		1,858,506		1,858,506		8.1	%		11,218,000		7.8	%		6.04		137,086,907			52,569,190
Texas		10		1,781,967		1,781,967		7.7	%		13,788,000		9.6	%		7.74		183,030,482			69,218,487
Georgia		6		1,639,696		1,639,696		7.1	%		10,551,000		7.3	%		6.43		166,213,681			82,651,157
South Carolina		6		1,371,721		1,371,721		6.0	%		10,309,000		7.2	%		7.52		129,916,784			53,457,653
Kentucky		3		1,295,940		1,295,940		5.6	%		5,190,000		3.6	%		4.00		66,111,852			35,254,265
Mississippi		4		1,158,889		1,158,889		5.0	%		4,532,000		3.2	%		3.91		55,677,635			25,584,878
Illinois		9		958,045		958,045		4.2	%		6,222,000		4.3	%		6.49		82,801,814			7,642,546
North Carolina		4		939,706		939,706		4.1	%		5,686,000		4.0	%		6.05		85,815,885			38,843,474
Tennessee		3		891,777		891,777		3.9	%		3,188,000		2.2	%		3.57		35,677,250			3,758,157
Michigan		4		833,054		833,054		3.6	%		5,577,000		3.9	%		6.69		73,374,059			23,112,149
Kansas		4		813,043		813,043		3.5	%		4,678,000		3.3	%		5.75		60,943,937			26,607,739
Missouri		4		740,119		740,119		3.2	%		2,900,000		2.0	%		3.92		35,436,389			6,365,378
Oklahoma		4		614,941		614,941		2.7	%		3,975,000		2.8	%		6.46		54,961,021			26,803,706
New York		3		518,565		518,565		2.3	%		3,572,000		2.5	%		6.89		51,587,223			19,429,142
Pennsylvania		3		504,040		423,184		2.2	%		2,826,000		2.0	%		6.68		36,901,415			12,639,230
New Jersey		3		471,765		469,985		2.0	%		6,723,000		4.7	%		14.30		92,423,939			52,687,945
Alabama		2		451,595		451,595		2.0	%		2,650,000		1.8	%		5.87		39,714,135			17,270,843
Virginia		5		407,265		407,265		1.8	%		2,456,000		1.7	%		6.03		34,860,124			3,652,516
Colorado		2		295,227		295,227		1.3	%		2,441,000		1.7	%		8.27		35,683,647			15,106,669
Arizona		1		283,358		283,358		1.2	%		1,393,000		1.0	%		4.92		16,824,226			2,450,448
Wisconsin		2		238,666		238,666		1.0	%		1,295,000		0.9	%		5.43		16,377,221			2,141,856
Washington		1		210,445		210,445		0.9	%		1,962,000		1.4	%		9.32		30,320,686			16,058,668
Louisiana		1		175,315		175,315		0.8	%		1,270,000		0.9	%		7.24		18,425,875			10,059,120
Maryland		1		148,881		148,881		0.6	%		1,455,000		1.0	%		9.77		14,512,355			-0-
Nebraska		1		89,115		89,115		0.4	%		446,000		0.2	%		5.00		5,963,626			-0-
Minnesota		1		60,398		60,398		0.3	%		372,000		0.2	%		6.16		5,223,944			1,716,419
Connecticut		1		54,812		-0-		0.2	%		-0-		0.0	%		-0-		3,506,747			-0-
Iowa		1		36,270		36,270		0.2	%		178,000		0.1	%		4.91		2,543,770			-0-
Total as of 3/31/20		116		23,019,627		22,882,179		100.0	%	$	143,802,000		100.0	%	$	6.28	$	1,966,697,673	(A)	$	787,624,876

(A) Does not include unamortized debt issuance costs of $7,883,277.

SECOND QUARTER FISCAL YEAR 2020 SUPPLEMENTAL INFORMATION 15

Lease Expirations

(unaudited)

Fiscal Year		Property Count		Square Footage		% of Total Sf			Annual Rent		% of Total Ann. Rent			Rent Per sf Occup.		Lease Exp. Term in Years		Undepreciated Cost			Mortgage Balance
2020(B)			1		98,045		0.4	%	$	490,000		0.3	%	$	5.00		0.2	$	-0-		$	-0-
2021(A)			10		1,206,723		5.2	%		5,560,000		3.9	%		4.61		1.2		69,813,125			6,803,589
2022			7		1,152,006		5.0	%		6,372,000		4.4	%		5.53		1.9		78,920,819			20,268,373
2023(A)			14		1,840,004		8.0	%		10,612,000		7.4	%		5.77		3.2		128,514,559			18,177,152
2024			13		1,887,034		8.2	%		11,722,000		8.2	%		6.21		4.1		137,370,052			23,574,582
2025(A)			10		2,459,470		10.7	%		12,462,000		8.7	%		5.07		5.1		164,430,576			65,735,019
2026			8		1,078,913		4.7	%		8,331,000		5.8	%		7.72		6.1		113,183,322			31,020,612
2027			12		2,373,001		10.3	%		13,049,000		9.1	%		5.50		7.4		185,550,657			65,599,896
2028			11		2,571,915		11.2	%		13,970,000		9.7	%		5.43		8.0		182,446,253			63,454,104
2029			9		1,830,929		8.0	%		10,548,000		7.3	%		5.76		9.1		147,728,409			63,010,860
2030			5		1,026,032		4.5	%		8,177,000		5.7	%		7.97		10.0		119,468,217			59,863,914
2031			3		963,269		4.2	%		7,152,000		5.0	%		7.42		11.1		104,617,800			59,109,378
2032(B)			8		2,131,983		9.3	%		18,803,000		13.1	%		8.82		12.1		290,952,566			167,404,925
2033			2		639,068		2.8	%		6,486,000		4.5	%		10.15		13.1		106,803,506			64,469,981
2034			3		1,561,347		6.8	%		9,284,000		6.5	%		5.95		14.0		127,748,517			79,132,491
Various tenants at retail shopping center			1		64,220		0.2	%		784,000		0.4	%		12.56		-0-		3,139,564			-0-
Vacant	(A)		2		135,668		0.5	%		-0-		0.0	%		-0-		-0-		6,009,731			-0-
Total as of 3/31/20			116		23,019,627		100.0	%	$	143,802,000		100.0	%	$	6.28		7.4	$	1,966,697,673	(C)	$	787,624,876

(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 one retail property, all properties are single-tenant.
(B)	Included in 2020 and 2032 is a property located in Aiken (Augusta, GA), SC leased to Autoneum North America, Inc. This property contains two leasable structures with two different lease terms. Both are counted as one property in the property count total.
(C)	Does not include unamortized debt issuance costs of $7,883,277.

SECOND QUARTER FISCAL YEAR 2020 SUPPLEMENTAL INFORMATION 16

Recent Acquisitions During Fiscal 2020

(unaudited)

No	Tenant	City (MSA)	State	Date of Acquisition		Square Footage		Annual Rent		Rent Per sf Occup.		Lease Expiration		Purchase Price		Initial Mortgage Balance
1	Amazon.com Services, Inc.	Greenwood (Indianapolis)	IN		10/10/19		615,747	$	4,950,000	$	8.04		8/31/34	$	81,500,000	$	52,500,000
2	Magna Seating of America, Inc.	Lancaster (Columbus)	OH		3/30/20		153,000		1,197,000		7.82		1/31/30		17,900,000		9,400,000
	As of 3/31/20						768,747	$	6,147,000	$	8.00			$	99,400,000	$	61,900,000

SECOND QUARTER FISCAL YEAR 2020 SUPPLEMENTAL INFORMATION 17

Property Table

(unaudited)

					Fiscal Year				Square		Annual		Rent Per sf		Lease Exp. Term in		Undepreciated		Mortgage
No	Tenant		City (MSA)	State	Acquisition	Occup.			Footage		Rent		Occup.		Years		Cost		Balance
1	Milwaukee Electric Tool Corporation		Olive Branch (Memphis, TN)	MS	2013		100.0	%		861,889	$	3,076,000	$	3.57		8.3	$	36,914,917	$	18,987,962
2	Shaw Industries, Inc.		Savannah	GA	2018		100.0	%		831,764		3,529,000		4.24		7.5		56,025,945		29,322,922
3	ULTA, Inc.		Greenwood (Indianapolis)	IN	2015		100.0	%		671,354		2,755,000		4.10		5.3		37,540,423		18,070,216
4	Amazon.com Services, Inc. (Amazon.com, Inc.)		Greenwood (Indianapolis)	IN	2020		100.0	%		615,747		4,950,000		8.04		14.4		79,363,910		51,848,895
5	Jim Beam Brands Company (Beam Suntory)		Frankfort (Lexington)	KY	2015		100.0	%		599,840		2,092,000		3.49		4.8		28,000,000		15,155,360
6	TreeHouse Private Brands, Inc.		Buckner (Louisville)	KY	2014		100.0	%		558,600		2,246,000		4.02		13.6		26,807,852		14,185,207
7	FedEx Forward Depots, Inc.		Memphis	TN	2010		100.0	%		449,900		1,394,000		3.10		9.2		16,092,852		3,758,157
8	Autoneum North America, Inc.	(B)	Aiken (Augusta, GA)	SC	2017		100.0	%		315,560		1,731,000		5.49		12.1		21,040,396		13,276,078
	Autoneum North America, Inc.		Aiken (Augusta, GA)	SC	2017		100.0	%		98,045		490,000		5.00		0.2		-0-		-0-
9	B. Braun Medical Inc.		Daytona Beach	FL	2018		100.0	%		399,440		2,159,000		5.41		8.0		30,008,069		17,727,063
10	UGN, Inc.		Monroe (Cincinnati)	OH	2015		100.0	%		387,000		2,088,000		5.40		13.9		21,576,756		13,098,389
11	Woodstream Corporation		St. Joseph	MO	2001		100.0	%		256,000		932,000		3.64		1.5		8,958,278		-0-
	Altec Industries, Inc.		St. Joseph	MO	2001		100.0	%		126,880		376,000		2.96		2.9		4,439,947		-0-
12	CBOCS Distribution, Inc. (Cracker Barrel)		Lebanon (Nashville)	TN	2011		100.0	%		381,240		1,475,000		3.87		4.3		14,215,126		-0-
13	FedEx Ground Package System, Inc.		Braselton (Atlanta)	GA	2018		100.0	%		373,750		3,782,000		10.12		12.9		60,227,126		36,887,372
14	Best Buy Warehousing Logistics, LLC		Streetsboro (Cleveland)	OH	2012		100.0	%		368,060		1,709,000		4.64		1.8		19,600,000		8,356,776
15	Amazon.com Services, Inc. (Amazon.com, Inc.)		Mobile	AL	2018		100.0	%		362,942		2,045,000		5.63		8.7		33,052,316		17,270,843
16	FedEx Ground Package System, Inc.		Concord (Charlotte)	NC	2017		100.0	%		354,482		2,537,000		7.16		12.2		40,043,145		22,786,022
17	FedEx Ground Package System, Inc.		Mesquite (Dallas)	TX	2017		100.0	%		351,874		3,203,000		9.10		12.0		49,880,493		28,268,492
18	Toyota Tsusho America, Inc.		Lafayette	IN	2019		100.0	%		350,000		1,710,000		4.89		9.3		25,078,587		16,521,184
19	FedEx Ground Package System, Inc.		Trenton	NJ	2019		100.0	%		347,145		5,306,000		15.28		12.3		83,987,622		51,369,126
20	FedEx Ground Package System, Inc.		Walker (Grand Rapids)	MI	2017		100.0	%		343,483		2,105,000		6.13		11.8		31,654,987		17,797,468
21	FedEx Ground Package System, Inc.		Hamburg (Buffalo)	NY	2017		100.0	%		338,584		2,323,000		6.86		11.0		35,100,800		19,429,142
22	FedEx Ground Package System, Inc.		Concord (Charlotte)	NC	2016		100.0	%		330,717		2,237,000		6.76		5.3		33,053,688		16,057,452
23	FedEx Ground Package System, Inc.		Indianapolis	IN	2014		100.0	%		327,822		1,717,000		5.24		7.6		25,504,083		8,947,362
24	FedEx Ground Package System, Inc.		Olathe (Kansas City)	KS	2016		100.0	%		313,763		2,210,000		7.04		11.2		31,737,000		18,142,152
25	FedEx Ground Package System, Inc.		Davenport (Orlando)	FL	2016		100.0	%		310,922		2,619,000		8.42		11.1		37,780,000		21,538,084
26	FedEx Ground Package System, Inc.		Ft. Worth (Dallas)	TX	2015		100.0	%		304,608		2,387,000		7.84		10.1		35,367,419		18,617,264
27	Science Applications International Corporation		Hanahan (Charleston)	SC	2005		100.0	%		302,400		1,683,000		5.57		3.6		14,446,471		-0-
28	Amazon.com Services, Inc. (Amazon.com, Inc.)		Oklahoma City	OK	2018		100.0	%		300,000		1,925,000		6.42		7.6		29,878,942		17,791,717
29	International Paper Company		Kenton	OH	2017		100.0	%		298,472		1,268,000		4.25		7.4		18,730,500		10,564,036
30	FedEx Ground Package System, Inc.		Jacksonville	FL	2015		100.0	%		297,579		1,998,000		6.71		9.8		30,925,530		14,469,163
31	Western Container Corp. (Coca-Cola)		Tolleson (Phoenix)	AZ	2003		100.0	%		283,358		1,393,000		4.92		7.1		16,824,226		2,450,448
32	International Paper Company		Edwardsville (Kansas City)	KS	2014		100.0	%		280,000		1,371,000		4.90		3.4		18,294,108		8,027,376
33	FedEx Ground Package System, Inc.		Charleston	SC	2018		100.0	%		265,318		2,704,000		10.19		13.3		46,576,380		27,582,609
34	NF&M International, Inc.		Monaca (Pittsburgh)	PA	1988		68.4	%		255,658		841,000		4.81		4.8		7,914,166		-0-
35	FedEx Ground Package System, Inc.		Orion	MI	2007		100.0	%		245,633		1,908,000		7.77		3.2		22,890,124		-0-
36	FedEx Ground Package System, Inc.		Homestead (Miami)	FL	2017		100.0	%		237,756		2,282,000		9.60		12.0		37,911,556		21,308,773
37	Anda Pharmaceuticals, Inc.		Olive Branch (Memphis, TN)	MS	2012		100.0	%		234,660		1,215,000		5.18		2.3		14,550,000		6,596,916
38	FedEx Ground Package System, Inc.		Colorado Springs	CO	2016		100.0	%		225,362		1,832,000		8.13		5.8		29,320,066		15,106,669
39	Mickey Thompson Performance Tires and Wheels (Cooper Tire)		Stow	OH	2017		100.0	%		219,765		1,523,000		6.93		7.4		18,934,065		11,149,989
40	Rinnai America Corporation		Griffin (Atlanta)	GA	2006		100.0	%		218,120		851,000		3.90		0.8		15,082,217		-0-
41	FedEx Ground Package System, Inc.		Ft. Myers	FL	2017		100.0	%		213,672		1,418,000		6.64		7.4		21,684,310		12,112,501
42	FedEx Ground Package System, Inc.		Burlington (Seattle/Everett)	WA	2016		100.0	%		210,445		1,962,000		9.32		10.4		30,320,686		16,058,668
43	FedEx Ground Package System, Inc.		Sauget (St. Louis, MO)	IL	2015		100.0	%		198,773		1,036,000		5.21		9.2		15,204,950		7,642,546
44	Anheuser-Busch, Inc.		Granite City (St. Louis, MO)	IL	2001		100.0	%		184,800		843,000		4.56		1.7		12,697,848		-0-
45	Carrier Enterprise, LLC (United Technologies)		Carrollton (Dallas)	TX	2010		100.0	%		184,317		1,140,000		6.18		3.8		18,494,917		5,185,920
46	FedEx Ground Package System, Inc.		Spring (Houston)	TX	2014		100.0	%		181,176		1,581,000		8.73		4.5		19,328,922		6,958,081
47	Carlisle Tire & Wheel Company		Edwardsville (Kansas City)	KS	2003		100.0	%		179,280		765,000		4.27		3.3		7,232,986		-0-
48	FedEx Ground Package System, Inc.		Ft. Mill (Charlotte, NC)	SC	2010		100.0	%		176,939		1,598,000		9.03		8.4		17,063,643		-0-
49	FedEx Ground Package System, Inc.		Covington (New Orleans)	LA	2016		100.0	%		175,315		1,270,000		7.24		5.3		18,425,875		10,059,120
50	FedEx Ground Package System, Inc.		Livonia (Detroit)	MI	2013		100.0	%		172,005		1,194,000		6.94		2.0		13,879,697		5,314,681

SECOND QUARTER FISCAL YEAR 2020 SUPPLEMENTAL INFORMATION 18

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
51	Home Depot USA, Inc.	Montgomery (Chicago)	IL	2004		100.0	%		171,200	$	1,064,000	$	6.21		2.8	$	11,303,317	$	-0-
52	FedEx Ground Package System, Inc.	Tampa	FL	2004		100.0	%		170,779		1,624,000		9.51		6.3		19,745,245		-0-
53	FedEx Ground Package System, Inc.	Edinburg	TX	2011		100.0	%		164,207		1,097,000		6.68		6.5		12,039,014		-0-
54	FedEx Ground Package System, Inc.	Lindale (Tyler)	TX	2015		100.0	%		163,378		725,000		4.44		4.3		9,965,550		5,037,130
55	Bunzl Distribution Midcentral, Inc.	Kansas City	MO	2015		100.0	%		158,417		764,000		4.82		1.5		10,003,235		6,365,378
56	FedEx Ground Package System, Inc.	Oklahoma City	OK	2012		100.0	%		158,340		1,048,000		6.62		5.3		12,605,609		2,618,538
57	Magna Seating of America, Inc.	Lancaster (Columbus)	OH	2020		100.0	%		153,000		1,197,000		7.82		9.8		17,557,830		9,400,000
58	FedEx Ground Package System, Inc.	Waco	TX	2012		100.0	%		150,710		1,078,000		7.15		5.4		12,551,368		3,774,333
59	FedEx Ground Package System, Inc.	Beltsville (Washington, DC)	MD	2001		100.0	%		148,881		1,455,000		9.77		8.3		14,512,355		-0-
60	Victory Packaging, L.P.	Fayetteville	NC	1997		100.0	%		148,000		514,000		3.47		0.9		5,455,379		-0-
61	FedEx Ground Package System, Inc.	El Paso	TX	2006		100.0	%		144,149		1,345,000		9.33		3.5		12,431,192		-0-
62	FedEx Ground Package System, Inc.	Cocoa	FL	2008		100.0	%		144,138		1,112,000		7.71		4.5		14,127,449		-0-
63	FedEx Ground Package System, Inc.	Cudahy (Milwaukee)	WI	2001		100.0	%		139,564		827,000		5.93		7.3		9,807,221		-0-
64	Challenger Lifts, Inc. (Snap-On Inc.)	Louisville	KY	2016		100.0	%		137,500		852,000		6.20		6.2		11,304,000		5,913,698
65	FedEx Ground Package System, Inc.	Richfield (Cleveland)	OH	2006		100.0	%		131,152		1,493,000		11.38		4.5		16,447,178		-0-
66	FedEx Ground Package System, Inc.	Savannah	GA	2019		100.0	%		126,520		1,755,000		13.87		8.6		27,531,560		16,440,863
67	General Electric Company	Imperial (Pittsburgh)	PA	2016		100.0	%		125,860		1,334,000		10.60		5.8		19,964,283		10,000,245
68	FedEx Ground Package System, Inc.	Wheeling (Chicago)	IL	2003		100.0	%		123,000		1,272,000		10.34		7.2		18,992,949		-0-
69	FedEx Ground Package System, Inc.	Altoona	PA	2014		100.0	%		122,522		651,000		5.31		3.4		9,022,966		2,638,985
70	FedEx Corporation	Charleston	SC	2018		100.0	%		121,683		1,314,000		10.80		12.4		21,519,412		12,598,966
71	FedEx Corporation	Mechanicsville (Richmond)	VA	2001		100.0	%		112,799		541,000		4.80		3.1		7,819,488		-0-
72	FedEx Corporation	Orlando	FL	2008		100.0	%		110,638		666,000		6.02		7.7		8,793,224		-0-
73	Bunzl Distribution Oklahoma, Inc.	Oklahoma City	OK	2017		100.0	%		110,361		736,000		6.67		4.4		8,728,439		4,910,345
74	Style Crest, Inc.	Winston-Salem	NC	2002		100.0	%		106,507		398,000		3.74		1.0		7,263,673		-0-
75	Sonwil Distribution Center, Inc.	Cheektowaga (Buffalo)	NY	2000		100.0	%		104,981		630,000		6.00		1.8		10,960,823		-0-
76	FedEx Ground Package System, Inc.	West Chester Twp. (Cincinnati)	OH	1999		100.0	%		103,818		556,000		5.36		3.4		5,733,686		-0-
77	FedEx Ground Package System, Inc.	Roanoke	VA	2013		100.0	%		103,402		755,000		7.30		3.1		10,200,000		3,652,516
78	Pittsburgh Glass Works, LLC	O’ Fallon (St. Louis)	MO	1994		100.0	%		102,135		450,000		4.41		1.2		4,249,615		-0-
79	FedEx Ground Package System, Inc.	Green Bay	WI	2013		100.0	%		99,102		468,000		4.72		3.2		6,570,000		2,141,856
80	Dakota Bodies, LLC	Liberty (Kansas City)	MO	1998		100.0	%		96,687		378,000		3.91		6.1		7,785,314		-0-
81	FedEx Corporation	Jacksonville	FL	1999		100.0	%		95,883		536,000		5.59		9.2		6,584,384		-0-
82	FedEx Corporation	Tampa	FL	2006		100.0	%		95,662		603,000		6.30		7.7		7,879,557		-0-
83	Amazon.com Services, Inc.	Hanahan (Charleston)	SC	2005		100.0	%		91,776		789,000		8.60		9.3		9,270,482		-0-
84	National Oilwell Varco, Inc.	Houston	TX	2010		100.0	%		91,295		796,000		8.72		9.5		8,163,278		1,377,267
85	FedEx Corporation	Omaha	NE	1999		100.0	%		89,115		446,000		5.00		3.6		5,963,626		-0-
86	Joseph T. Ryerson and Son, Inc.	Elgin (Chicago)	IL	2002		100.0	%		89,052		514,000		5.77		4.8		7,066,732		-0-
87	FedEx Ground Package System, Inc.	Huntsville	AL	2005		100.0	%		88,653		605,000		6.82		6.3		6,661,819		-0-
88	CHEP USA, Inc.	Roanoke	VA	2007		100.0	%		83,000		506,000		6.10		4.9		7,463,672		-0-
89	FedEx Corporation	Bedford Heights (Cleveland)	OH	2007		100.0	%		82,269		438,000		5.32		8.4		7,304,467		-0-
90	RGH Enterprises, Inc. (Cardinal Health)	Halfmoon (Albany)	NY	2012		100.0	%		75,000		619,000		8.25		1.7		5,525,600		-0-
91	FedEx Corporation	Schaumburg (Chicago)	IL	1997		100.0	%		73,500		478,000		6.50		7.0		5,177,940		-0-
92	FedEx Corporation	Romulus (Detroit)	MI	1998		100.0	%		71,933		370,000		5.14		1.2		4,949,251		-0-
93	FedEx Ground Package System, Inc.	Denver	CO	2005		100.0	%		69,865		609,000		8.72		5.6		6,363,581		-0-
94	Tampa Bay Grand Prix	Tampa	FL	2005		100.0	%		68,385		361,000		5.28		7.5		5,677,982		-0-
95	Sherwin-Williams Company	Rockford	IL	2011		100.0	%		66,387		486,000		7.32		3.8		5,551,227		-0-
96	Various Tenants at Retail Shopping Center	Somerset	NJ	1970		97.0	%		64,220		784,000		12.56		na		3,139,564		-0-
97	Keurig Dr Pepper	Cincinnati	OH	2015		100.0	%		63,840		487,000		7.63		9.5		6,750,000		-0-
98	FedEx Corporation	Chattanooga	TN	2007		100.0	%		60,637		319,000		5.26		2.6		5,369,272		-0-
99	SOFIVE, Inc.	Carlstadt (New York, NY)	NJ	2001		100.0	%		60,400		633,000		10.48		9.8		5,296,752		1,318,819
100	FedEx Ground Package System, Inc.	Stewartville (Rochester)	MN	2013		100.0	%		60,398		372,000		6.16		3.2		5,223,944		1,716,419
101	Locke Supply Co.	Richmond	VA	2004		100.0	%		60,000		325,000		5.42		12.1		4,914,955		-0-

SECOND QUARTER FISCAL YEAR 2020 SUPPLEMENTAL INFORMATION 19

Property Table

(unaudited)

														Lease Exp.
				Fiscal Year				Square			Annual		Rent Per sf	Term in		Undepreciated			Mortgage
No	Tenant	City (MSA)	State	Acquisition	Occup.			Footage			Rent		Occup.	Years		Cost			Balance
102	FedEx Ground Package System, Inc.	Augusta	GA	2005		100.0	%		59,358	$	513,000	$	8.64		1.2	$	5,363,304		$	-0-
103	Vacant	Newington (Hartford)	CT	2001		0.0	%		54,812		-0-		na		na		3,506,747			-0-
104	Siemens Real Estate	Lebanon (Cincinnati)	OH	2012		100.0	%		51,130		459,000		8.98		4.1		4,452,425			-0-
105	FedEx Corporation	Charlottesville	VA	1999		100.0	%		48,064		329,000		6.85		7.4		4,462,009			-0-
106	FedEx Ground Package System, Inc.	Corpus Christi	TX	2012		100.0	%		46,253		436,000		9.43		1.4		4,808,329			-0-
107	Keurig Dr Pepper	Tulsa	OK	2014		100.0	%		46,240		266,000		5.75		3.9		3,748,031			1,483,106
108	Heartland Coca-Cola Bottling Company, LLC (Coca-Cola)	Topeka	KS	2009		100.0	%		40,000		332,000		8.30		1.5		3,679,843			438,211
109	Collins Aerospace Systems (United Technologies)	Rockford	IL	2015		100.0	%		38,833		367,000		9.45		7.3		5,100,000			-0-
110	Foundation Building Materials, LLC	Urbandale (Des Moines)	IA	1994		100.0	%		36,270		178,000		4.91		7.8		2,543,770			-0-
111	FedEx Corporation	Richland (Jackson)	MS	1994		100.0	%		36,000		120,000		3.33		4.0		1,900,691			-0-
112	FedEx Corporation	Punta Gorda	FL	2007		100.0	%		34,624		284,000		8.20		7.3		4,133,510			-0-
113	FedEx Corporation	Lakeland	FL	2006		100.0	%		32,105		155,000		4.83		7.7		2,043,226			-0-
114	FedEx Corporation	Augusta	GA	2006		100.0	%		30,184		121,000		4.01		2.7		1,983,529			-0-
115	Graybar Electric Company	Ridgeland (Jackson)	MS	1993		100.0	%		26,340		121,000		4.59		5.3		2,312,027			-0-
116	Sherwin-Williams Company	Burr Ridge (Chicago)	IL	1997		100.0	%		12,500		162,000		12.96		1.6		1,706,851			-0-
	Total as of 3/31/20					99.4	%		23,019,627	$	143,802,000	$	6.28		7.4	$	1,966,697,673	(A)	$	787,624,876

(A)	Does not include unamortized debt issuance costs of $7,883,277.
(B)	Property located in Aiken (Augusta, GA), SC leased to Autoneum North America, Inc. contains two leasable structures with two different lease terms.

SECOND QUARTER FISCAL YEAR 2020 SUPPLEMENTAL INFORMATION 20

Definitions

Investors and analysts following the real estate industry utilize funds from operations (“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 & (“Adjusted EBITDA”) variously defined, as supplemental performance measures. While we believe 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, we consider NOI, Same Property NOI, Same Property Cash NOI, Adjusted EBITDA, 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. 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. 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 our performance. In addition, NOI, Same Property NOI, Same Property Cash NOI, Adjusted EBITDA, 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, we calculate the following non-U.S. GAAP measures as follows:

● FFO, as defined by The National Association of Real Estate Investment Trusts (Nareit), represents net income attributable to common shareholders, as defined by accounting principles generally accepted in the United States of America (U.S. GAAP), excluding extraordinary items, as defined under 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. Included in the Nareit FFO White Paper - 2018 Restatement, is an option pertaining to assets incidental to our main business in the calculation of Nareit FFO to make an election to include or exclude mark-to-market changes in the value recognized on these marketable equity securities. In conjunction with the adoption of the FFO White Paper - 2018 Restatement, for all periods presented, we have elected to exclude unrealized gains and losses from our investments in marketable equity securities from our FFO calculation. Prior to the adoption of the FFO White Paper – 2018 Restatement, we defined Core Funds From Operations (Core FFO) as FFO, excluding Unrealized Holding Gains or Losses Arising During the Periods. Nareit created FFO as a non-GAAP supplemental measure of REIT operating performance.

● AFFOis calculated as FFO, excluding stock-based compensation expense, depreciation of corporate office tenant improvements, amortization of deferred financing costs, non-recurring severance expense, effect of non-cash 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 preferred dividends, general & administrative expenses, non-recurring severance expense, depreciation, amortization of capitalized lease costs & intangible assets and interest expense, including amortization of financing costs, unrealized holding (gains) or losses arising during the periods, less dividend 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.

● 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.

● Adjusted EBITDA is net income attributable to common shareholders, as defined by U.S. GAAP, plus preferred dividends, interest expense, including amortization of financing costs, depreciation and amortization, losses (minus gains) on sales of real estate investments, net amortization of acquired above and below market lease revenue, unrealized holding losses (minus gains) arising during the periods and losses (minus gains) on sale of securities transactions.

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

SECOND QUARTER FISCAL YEAR 2020 SUPPLEMENTAL INFORMATION 21

MONMOUTH REAL ESTATE REPORTS RESULTS FOR

THE SECOND QUARTER ENDED MARCH 31, 2020

  

HOLMDEL, NJ, May 6, 2020 Monmouth Real Estate Investment Corporation (NYSE:MNR) reported Net Loss Attributable to Common Shareholders of $75.1 million or $0.77 per diluted share for the three months ended March 31, 2020 as compared to Net Income Attributable to Common Shareholders of $23.8 million or $0.26 per diluted share for the three months ended March 31, 2019, representing a decrease of $98.9 million or $1.03 per diluted share. During the three months ended March 31, 2020, we recognized an $83.1 million unrealized loss or $0.85 per diluted share as compared to a $15.6 million unrealized gain or $0.17 per diluted share for the three months ended March 31, 2019. Funds from Operations (FFO), which excludes unrealized and realized gains or losses from our securities portfolio, for the three months ended March 31, 2020 were $20.2 million or $0.21 per diluted share versus $19.6 million or $0.21 per diluted share for the three months ended March 31, 2019, representing consistent per diluted share earnings. Adjusted Funds from Operations (AFFO), which also excludes unrealized and realized gains or losses from our securities portfolio, for the three months ended March 31, 2020 were $19.4 million or $0.20 per diluted share versus $19.2 million or $0.21 per diluted share for the three months ended March 31, 2019, representing a $0.01 decrease in AFFO per diluted share. Sequentially, our FFO of $0.21 per diluted share for the second quarter of fiscal 2020 is $0.01 higher than our FFO of $0.20 per diluted share for the first quarter of fiscal 2020 and our AFFO of $0.20 per diluted share for the second quarter of fiscal 2020 is $0.01 lower than our AFFO of $0.21 per diluted share for the first quarter of fiscal 2020. The quarterly year over year $0.01 decline in AFFO is primarily attributable to a $2.3 million increase in Preferred Dividend expense as a result of an increase in preferred shares outstanding.

Tenant Rent Collections During COVID-19 Pandemic

● For the month of March were 100%

● For the month of April were 99%

● While it is still early, thus far for the month of May we have received 95%

The future effects of the evolving impact of the COVID-19 pandemic are still uncertain, however at this time, we believe that the fallout from COVID-19 will not have a material adverse effect on our financial condition. To date, Monmouth has received very limited requests for rent deferment, representing an aggregate impact of only 200 basis points on our annual base rent. Of this amount, we have agreed to defer $320,000 which represents a 23 basis point impact on our annual base rent. This deferred amount is due to be paid by the end of the calendar year. Our occupancy rate is currently 99.4% and our weighted average lease term is 7.4 years.

A summary of significant financial information for the three and six months ended March 31, 2020 and 2019 (in thousands, except per share amounts) is as follows:

	Three Months Ended March 31,
	2020			2019
Rental Revenue	$	35,114		$	32,934
Reimbursement Revenue	$	6,594		$	5,447
Net Operating Income (NOI) (1)	$	35,045		$	32,545
Total Expenses	$	21,301		$	19,565
Dividend Income	$	3,404		$	3,515
Unrealized Holding Gains (Losses) Arising During the Periods	$	(83,075	)	$	15,568
Net Income (Loss)	$	(68,314	)	$	28,301
Net Income (Loss) Attributable to Common Shareholders	$	(75,078	)	$	23,821
Net Income (Loss)Attributable to Common Shareholders Per Diluted Common Share	$	(0.77	)	$	0.26
FFO (1)	$	20,199		$	19,588
FFO per Diluted Common Share (1)	$	0.21		$	0.21
AFFO (1)	$	19,352		$	19,172
AFFO per Diluted Common Share (1)	$	0.20		$	0.21
Dividends Declared per Common Share	$	0.17		$	0.17
Weighted Avg. Diluted Common Shares Outstanding		97,941			93,059

SECOND QUARTER FISCAL YEAR 2020 SUPPLEMENTAL INFORMATION 22

	Six Months Ended March 31,
	2020			2019
Rental Revenue	$	69,983		$	65,551
Reimbursement Revenue	$	13,424		$	11,053
Net Operating Income (NOI) (1)	$	69,512		$	64,864
Total Expenses	$	43,769		$	38,466
Dividend Income	$	6,642		$	7,882
Unrealized Holding Losses Arising During the Periods	$	(86,710	)	$	(27,059	)
Net Income (Loss)	$	(58,689	)	$	358
Net Loss Attributable to Common Shareholders	$	(71,551	)	$	(8,543	)
Net Loss Attributable to Common Shareholders Per Diluted Common Share	$	(0.73	)	$	(0.09	)
FFO (1)	$	39,520		$	41,017
FFO per Diluted Common Share (1)	$	0.41		$	0.45
AFFO (1)	$	39,284		$	40,194
AFFO per Diluted Common Share (1)	$	0.40		$	0.44
Dividends Declared per Common Share	$	0.34		$	0.34
Weighted Avg. Diluted Common Shares Outstanding		97,466			91,831

A summary of significant balance sheet information as of March 31, 2020 and September 30, 2019 (in thousands) is as follows:

	March 31, 2020		September 30, 2019
Real Estate Investments	$	1,694,336	$	1,616,934
Securities Available for Sale at Fair Value	$	99,035	$	185,250
Total Assets	$	1,890,048	$	1,871,948
Fixed Rate Mortgage Notes Payable, net of Unamortized Debt Issuance Costs	$	779,742	$	744,928
Loans Payable	$	75,000	$	95,000
Total Shareholders’ Equity	$	1,008,843	$	1,011,043

Highlights from Second Quarter Results

● Increased Gross Revenue by 8% over the prior year period to $45.1 million

● Increased Net Operating Income by 8% over the prior year period to $35.0 million

● Maintained a conservative AFFO dividend payout ratio of 85%

● Increased our Gross Leasable Area (GLA) by 6% over the prior year period to 23.0 million square feet

● Entered into commitments to acquire four new build-to-suit properties containing 1.5 million total square feet for a total cost of $229.6 million all leased to Investment Grade tenants

● Acquired one property comprising 153,000 square feet for $17.9 million leased to Magna Seating of America for 10 years

● Increased occupancy by 50 basis points over the prior year period and 20 basis points sequentially to 99.4%

● Renewed two more of the five leases scheduled to expire in fiscal 2020, resulting in the renewal of four of the five leases set to expire during fiscal 2020. The four lease renewals, comprising 355,000 square feet resulted in a 12.0% increase in GAAP rent, a 4.4% increase in Cash rent, and have a weighted-average lease term of 4.2 years

● Maintained a weighted average lease term of 7.4 years

● Maintained a weighted average debt maturity on fixed-rate mortgage debt of 11.3 years

● Reduced Net Debt to Adjusted EBITDA to 5.7x from 6.4x in the prior year period

● Reduced the weighted average interest rate on fixed-rate debt to 4.0% from 4.1% in the prior year period

● Raised $37.1 million in net proceeds through the Preferred Stock ATM Program with the sale of 1.5 million shares of 6.125% Series C Preferred Stock at a weighted average price of $25.12 per share

● Raised $8.6 million (including dividend reinvestments of $1.4 million) from the Dividend Reinvestment and Stock Purchase Plan, representing a 9% participation rate

SECOND QUARTER FISCAL YEAR 2020 SUPPLEMENTAL INFORMATION 23

Michael P. Landy, President and CEO, commented, “The COVID-19 Pandemic has created significant economic headwinds throughout the entire world. Monmouth went into this downturn very well positioned with a strong balance sheet, a high-quality tenant roster, and a well-covered dividend. Our business model of investing in industrial properties secured by long-term leases to investment grade tenants should enable us to outperform in this current environment. With rent collections for March and April coming in at 100% and 99% respectively, our current occupancy rate at 99.4%, and our weighted average lease term at 7.4 years, we are off to an excellent start.”

“During the quarter, on March 30^th, we acquired one building comprising 153,000 square feet for a purchase price of $17.9 million. This property, located in the Columbus, OH MSA, is leased to Magna Seating of America for 10 years. Since this property was acquired at the very end of the quarter, it did not contribute to our current results. Our $229.6 million acquisition pipeline currently contains four new build-to-suit properties comprising 1.5 million total square feet. These properties have a weighted-average lease term of 17.2 years. In keeping with our business model, these projects are all leased to investment grade tenants, with 56% leased to FedEx Ground and 44% leased to Home Depot.”

“We have renewed four of the five leases that were set to expire this fiscal year. These four lease renewals represent 87% of the 410,000 square feet expiring this year. These lease renewals have a weighted average lease term of 4.2 years, and a weighted average lease rate of $5.87 per square foot on a GAAP basis and $5.71 on a cash basis. This represents an increase of 12.0% on a GAAP basis and an increase of 4.4% on a cash basis.”

“At quarter end, our weighted-average lease maturity was 7.4 years and our weighted-average mortgage debt maturity was 11.3 years. We continue to maintain a conservative credit profile with our Net Debt to Adjusted EBITDA at 5.7x, our Fixed Charge Coverage at 2.3x, and our Net Debt to Total Market Capitalization at 33%. Illustrating the strength and visibility of our income streams, our occupancy rate has been over 98% for five consecutive years and our weighted average lease term has exceeded seven years for six consecutive years.”

“The value of our properties has appreciated substantially over the past decade as ecommerce demand has increased, and on-line shopping has become an integral part of the retail landscape. The current social distancing environment has created an even stronger shift towards on-line shopping. Because of this surge in ecommerce demand, some of our tenants are running 7-day work weeks and increasing their daily shifts. Their services are now more essential than ever. The COVID-19 Pandemic is also forcing industries and entire

Monmouth Real Estate Investment Corporation will host its Second Quarter FY 2020 Financial Results Webcast and Conference Call on Thursday, May 7, 2020 at 10:00 a.m. Eastern Time. Senior management will discuss the results, current market conditions and future outlook.

Our Second Quarter FY 2020 financial results being released herein will be available on our website atwww.mreic.reit in the Investor Relations section, under Filings and Reports.

To participate in theWebcast, select the2Q2020 Webcast and Earnings Call “Link to Webcast” on the homepage of our 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 1-877-510-5852 (domestically) or 1-412-902-4138 (internationally).

The replay of the conference call will be available at 12:00 p.m. Eastern Time on Thursday, May 7, 2020. It will be available until August 5, 2020, and can be accessed by dialing toll free 1-877-344-7529 (domestically) and 1-412-317-0088 (internationally) and entering the passcode 10139462. A transcript of the call and the webcast replay will be available at our 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. We specialize 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 116 properties containing a total of approximately 23.0 million rentable square feet, geographically diversified across 30 states. In addition, we own 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 our current expectations and involve various risks and uncertainties. Although we believe the expectations reflected in any forward-looking statements are based on reasonable assumptions, we 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 our annual report on Form 10-K and described from time to time in our other filings with the SEC. We undertake 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, as defined by The National Association of Real Estate Investment Trusts (Nareit), represents net income attributable to common shareholders, as defined by accounting principles generally accepted in the United States of America (U.S. GAAP), excluding extraordinary items, as defined under 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. Included in the Nareit FFO White Paper - 2018 Restatement, is an option pertaining to assets incidental to our main business in the calculation of Nareit FFO to make an election to include or exclude mark-to-market changes in the value recognized on these marketable equity securities. In conjunction with the adoption of the FFO White Paper - 2018 Restatement, for all periods presented, we have elected to exclude unrealized gains and losses from our investments in marketable equity securities from our FFO calculation. Prior to the adoption of the FFO White Paper – 2018 Restatement, we defined Core Funds From Operations (Core FFO) as FFO, excluding Unrealized Holding Gains or Losses Arising During the Periods. Nareit created FFO as a non-GAAP supplemental measure of REIT operating performance. We define Adjusted Funds From Operations (AFFO) as FFO, excluding stock based compensation expense, depreciation of corporate office tenant improvements, amortization of deferred financing costs, non-recurring severance expense, effect of non-cash U.S. GAAP straight-line rent adjustments and subtracting 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 believe that, as widely recognized measures of performance used by other REITs, FFO and AFFO may be considered by investors as supplemental measures to compare our operating performance to those of other REITs. FFO and AFFO exclude historical cost depreciation as an expense and may facilitate the comparison of REITs which have a different cost basis. However, other REITs may use different methodologies to calculate FFO and AFFO and, accordingly, our FFO and AFFO may not be comparable to all other REITs. The items excluded from FFO and AFFO are significant components in understanding our financial performance.

SECOND QUARTER FISCAL YEAR 2020 SUPPLEMENTAL INFORMATION 24

FFO and AFFO are non-GAAP performance measures and (i) do not represent Cash Flow from Operations as defined by U.S. GAAP; (ii) should not be considered as an alternative to Net Income or Net Income Attributable to Common Shareholders as a measure of operating performance or to Cash Flows from Operating, Investing and Financing Activities; and (iii) are not an alternative to Cash Flows from Operating, Investing and Financing Activities as a measure of liquidity. FFO and AFFO, as calculated by us, 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 (Loss) Attributable to Common Shareholders to the Company’s FFO and AFFO for the three and six months ended March 31, 2020 and 2019 (in thousands):

	Three Months Ended						Six Months Ended
	3/31/2020			3/31/2019			3/31/2020			3/31/2019
Net Income (Loss) Attributable to Common Shareholders	$	(75,078	)	$	23,821		$	(71,551	)	$	(8,543	)
Less/Plus: Unrealized Holding (Gains) Losses Arising During the Periods		83,075			(15,568	)		86,710			27,059
Plus: Depreciation Expense (excluding Corporate Office Capitalized Costs)		11,409			10,589			22,788			21,026
Plus: Amortization of Intangible Assets		508			505			1,016			1,005
Plus: Amortization of Capitalized Lease Costs		285			241			557			470
FFO Attributable to Common Shareholders		20,199			19,588			39,520			41,017
Plus: Depreciation of Corporate Office Capitalized Costs		66			167			118			208
Plus: Stock Compensation Expense		114			215			270			344
Plus: Amortization of Financing Costs		322			320			758			637
Plus: Non-recurring Severance Expense		-0-			-0-			786			-0-
Less: Recurring Capital Expenditures		(717	)		(630	)		(936	)		(1,187	)
Less: Effect of Non-cash U.S. GAAP Straight-line Rent Adjustment		(632	)		(488	)		(1,232	)		(825	)
AFFO Attributable to Common Shareholders	$	19,352		$	19,172		$	39,284		$	40,194

The following are the Cash Flows provided (used) by Operating, Investing and Financing Activities for the six months ended March 31, 2020 and 2019 (in thousands):

	Six Months Ended
	3/31/2020			3/31/2019
Operating Activities	$	47,854		$	50,218
Investing Activities		(101,388	)		(173,028	)
Financing Activities		69,268			129,844

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