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

Exhibit 99

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	8
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 August 4, 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
	June 30,			September 30,
	2020			2019
	(unaudited)
ASSETS
Real Estate Investments:
Land	$	249,118		$	239,299
Buildings and Improvements		1,778,055			1,627,219
Total Real Estate Investments		2,027,173			1,866,518
Accumulated Depreciation		(284,058	)		(249,584	)
Real Estate Investments		1,743,115			1,616,934
Cash and Cash Equivalents		12,104			20,179
Securities Available for Sale at Fair Value		118,877			185,250
Tenant and Other Receivables		2,565			1,335
Straight-line Rent Receivable		12,453			11,199
Prepaid Expenses		8,957			6,714
Intangible Assets, net of Accumulated Amortization of $17,225 and $15,686, respectively		17,154			14,970
Capitalized Lease Costs, net of Accumulated Amortization of $4,184 and $3,378, respectively		5,860			5,670
Financing Costs, net of Accumulated Amortization of $259 and $1,352, respectively		1,477			144
Other Assets		8,863			9,553
TOTAL ASSETS	$	1,931,425		$	1,871,948
LIABILITIES AND SHAREHOLDERS’ EQUITY
Liabilities:
Fixed Rate Mortgage Notes Payable, net of Unamortized Debt Issuance Costs	$	804,342		$	744,928
Loans Payable		80,000			95,000
Accounts Payable and Accrued Expenses		4,177			3,570
Other Liabilities		19,121			17,407
Total Liabilities		907,640			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 June 30, 2020 and September 30, 2019, respectively; 17,354 and 13,907 Shares Issued and Outstanding as of June 30, 2020 and September 30, 2019, respectively		433,850			347,678
Common Stock, $0.01 Par Value Per Share: 200,000 and 188,040 Shares Authorized as of June 30, 2020 and September 30, 2019, respectively; 97,972 and 96,399 Shares Issued and Outstanding as of June 30, 2020 and September 30, 2019, respectively		980			964
Excess Stock, $0.01 Par Value Per Share: 200,000 Shares Authorized as of June 30, 2020 and September 30, 2019; No Shares Issued or Outstanding as of June 30, 2020 and September 30, 2019		-0-			-0-
Additional Paid-In Capital		588,955			662,401
Undistributed Income		-0-			-0-
Total Shareholders’ Equity		1,023,785			1,011,043
TOTAL LIABILITIES & SHAREHOLDERS’ EQUITY	$	1,931,425		$	1,871,948

    THIRD QUARTER FISCAL YEAR 2020 SUPPLEMENTAL INFORMATION 3

Consolidated Statements of Income (Loss)

(unaudited) (in thousands)

	For The						For The
	Three Months Ended						Nine Months Ended
	6/30/2020			6/30/2019			6/30/2020			6/30/2019
INCOME:
Rental Revenue	$	35,427		$	33,127		$	105,410		$	98,678
Reimbursement Revenue		6,348			5,421			19,772			16,473
TOTAL INCOME		41,775			38,548			125,182			115,151
EXPENSES:
Real Estate Taxes		5,140			4,168			15,205			12,370
Operating Expenses		1,427			1,649			5,258			5,186
General & Administrative Expenses		2,198			2,351			6,858			6,420
Non-recurring Severance Expense		-0-			-0-			786			-0-
Depreciation		11,743			10,833			34,650			32,067
Amortization of Capitalized Lease Costs and Intangible Assets		788			721			2,308			2,144
TOTAL EXPENSES		21,296			19,722			65,065			58,187
OTHER INCOME (EXPENSE):
Dividend Income		2,344			3,686			8,987			11,569
Unrealized Holding Gains (Losses) Arising During the Periods		19,610			(11,609	)		(67,100	)		(38,668	)
Interest Expense, including Amortization of Financing Costs		(8,975	)		(9,275	)		(27,235	)		(27,879	)
TOTAL OTHER INCOME (EXPENSE)		12,979			(17,198	)		(85,348	)		(54,978	)
NET INCOME (LOSS)		33,458			1,628			(25,231	)		1,986
Less: Preferred Dividends		6,607			4,749			19,469			13,650
NET INCOME (LOSS) ATTRIBUTABLE TO COMMON SHAREHOLDERS	$	26,851		$	(3,121	)	$	(44,700	)	$	(11,664	)

    THIRD QUARTER FISCAL YEAR 2020 SUPPLEMENTAL INFORMATION 4

FFO, AFFO and Adjusted EBITDA Reconciliations

(unaudited) (in thousands)

	For The						For The
	Three Months Ended						Nine Months Ended
	6/30/2020			6/30/2019			6/30/2020			6/30/2019
FFO, AFFO
Net Income (Loss) Attributable to Common Shareholders	$	26,851		$	(3,121	)	$	(44,700	)	$	(11,664	)
Less/Plus: Unrealized Holding (Gains) Losses Arising During the Periods		(19,610	)		11,609			67,100			38,668
Plus: Depreciation Expense (excluding Corporate Office Capitalized Costs)		11,685			10,665			34,474			31,692
Plus: Amortization of Intangible Assets		524			490			1,539			1,495
Plus: Amortization of Capitalized Lease Costs		290			256			846			726
FFO Attributable to Common Shareholders		19,740			19,899			59,259			60,917
Plus: Depreciation of Corporate Office Capitalized Costs		57			168			176			376
Plus: Stock Compensation Expense		98			231			368			574
Plus: Amortization of Financing Costs		327			319			1,084			956
Plus: Non-recurring Severance Expense		-0-			-0-			786			-0-
Less: Recurring Capital Expenditures		(508	)		(702	)		(1,443	)		(1,888	)
Less: Effect of Non-cash U.S. GAAP Straight-line Rent Adjustment		(226	)		(527	)		(1,459	)		(1,352	)
AFFO Attributable to Common Shareholders	$	19,488		$	19,388		$	58,771		$	59,583

	For The						For The
	Three Months Ended						Nine Months Ended
	6/30/2020			6/30/2019			6/30/2020			6/30/2019
Adjusted EBITDA
Net Income (Loss) Attributable to Common Shareholders	$	26,851		$	(3,121	)	$	(44,700	)	$	(11,664	)
Plus: Preferred Dividends		6,607			4,749			19,469			13,650
Plus: Interest Expense, including Amortization of Financing Costs		8,975			9,275			27,235			27,879
Plus: Depreciation and Amortization		12,531			11,554			36,958			34,211
Plus: Net Amortization of Acquired Above and Below Market Lease Revenue		26			26			77			77
Less/Plus: Unrealized Holding (Gains) Losses Arising During the Periods		(19,610	)		11,609			67,100			38,668
Adjusted EBITDA	$	35,380		$	34,092		$	106,139		$	102,821

    THIRD QUARTER FISCAL YEAR 2020 SUPPLEMENTAL INFORMATION 5

NOI Reconciliations

(unaudited) (in thousands)

	For The						For The
	Three Months Ended						Nine Months Ended
	6/30/2020			6/30/2019			6/30/2020			6/30/2019
Net Operating Income
Net Income (Loss) Attributable to Common Shareholders	$	26,851		$	(3,121	)	$	(44,700	)	$	(11,664	)
Plus: Preferred Dividends		6,607			4,749			19,469			13,650
Plus: General & Administrative Expenses		2,198			2,351			6,858			6,420
Plus: Non-recurring Severance Expense		-0-			-0-			786			-0-
Plus: Depreciation		11,743			10,833			34,650			32,067
Plus: Amortization of Capitalized Lease Costs and Intangible Assets		788			721			2,308			2,144
Plus: Interest Expense, including Amortization of Financing Costs		8,975			9,275			27,235			27,879
Less/Plus: Unrealized Holding (Gains) Losses Arising During the Periods		(19,610	)		11,609			67,100			38,668
Less: Dividend Income		(2,344	)		(3,686	)		(8,987	)		(11,569	)
Net Operating Income – NOI	$	35,208		$	32,731		$	104,719		$	97,595

	For The				For The
	Three Months Ended				Nine Months Ended
	6/30/2020		6/30/2019		6/30/2020		6/30/2019
Components of Net Operating Income Consists of:
Revenues:
Rental Revenue	$	35,427	$	33,127	$	105,410	$	98,678
Reimbursement Revenue		6,348		5,421		19,772		16,473
Total Rental and Reimbursement Revenue		41,775		38,548		125,182		115,151
Expenses:
Real Estate Taxes		5,140		4,168		15,205		12,370
Operating Expenses		1,427		1,649		5,258		5,186
Total Real Estate Taxes and Operating Expenses		6,567		5,817		20,463		17,556
Net Operating Income – NOI	$	35,208	$	32,731	$	104,719	$	97,595

    THIRD QUARTER FISCAL YEAR 2020 SUPPLEMENTAL INFORMATION 6

Financial Highlights

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

	For The									For The
	Three Months Ended									Nine Months Ended
	6/30/2020			6/30/2019			Change (%)			6/30/2020			6/30/2019			Change (%)
Weighted Average Common Shares Outstanding
Basic		97,906			94,399			3.7	%		97,548			92,619			5.3	%
Diluted		97,962			94,493			3.7	%		97,626			92,719			5.3	%
Net Income (Loss) Attributable to Common Shareholders	$	26,851		$	(3,121	)		960.3	%	$	(44,700	)	$	(11,664	)		(283.2	)%
Basic	$	0.27		$	(0.03	)		1,000.0	%	$	(0.46	)	$	(0.13	)		(253.8	)%
Diluted		0.27			(0.03	)		1,000.0	%		(0.46	)		(0.13	)		(253.8	)%
Net Operating Income – NOI	$	35,208		$	32,731			7.6	%	$	104,719		$	97,595			7.3	%
Basic	$	0.36		$	0.35			2.9	%	$	1.07		$	1.05			1.9	%
Diluted		0.36			0.35			2.9	%		1.07			1.05			1.9	%
Funds From Operations – FFO	$	19,740		$	19,899			(0.8	)%	$	59,259		$	60,917			(2.7	)%
Basic	$	0.20		$	0.21			(4.8	)%	$	0.61		$	0.66			(7.6	)%
Diluted		0.20			0.21			(4.8	)%		0.61			0.66			(7.6	)%
Adjusted Funds From Operations – AFFO	$	19,488		$	19,388			0.5	%	$	58,771			59,583			(1.4	)%
Basic	$	0.20		$	0.21			(4.8	)%	$	0.60		$	0.64			(6.3	)%
Diluted		0.20			0.21			(4.8	)%		0.60			0.64			(6.3	)%
Dividends Declared per Common Share	$	0.17		$	0.17					$	0.51		$	0.51
Dividend/AFFO Payout Ratio		85.0	%		81.0	%					85.0	%		79.7	%

    THIRD QUARTER FISCAL YEAR 2020 SUPPLEMENTAL INFORMATION 7

Same Property Statistics

(unaudited) (in thousands except for square feet)

	For The Three Months Ended
	6/30/2020				6/30/2019			Change		Change %
Total Square Feet / Total Properties		23,375,642 / 118				21,802,835 / 113			1,572,807		7.2	%
Occupancy Percentage at End of Period		99.4	%			98.9	%		50 bps		0.5	%
Same Property Square Feet / Number of Same Properties				21,802,835 / 113
Same Property Occupancy Percentage at End of Period		99.4	%			98.9	%		50 bps		0.5	%
Same Property Net Operating Income (NOI) (GAAP)	$	32,792			$	32,731		$	61		0.2	%
Reversal of Effect of Non-cash U.S. GAAP Straight-line Rent Adjustment		(34	)			(527	)		493
Same Property Cash NOI	$	32,758			$	32,204		$	554		1.7	%

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
	6/30/2020		6/30/2019		Change		Change %
Same Property NOI (GAAP)	$	32,792	$	32,731	$	61		0.2	%
NOI of properties purchased subsequent to March 31, 2019 (one property purchased during fiscal 2019 and four properties purchased during fiscal 2020)		2,416		0
NOI of property expanded subsequent to  March 31, 2019 (no properties expanded during fiscal 2019 or fiscal 2020)		0		0
Total NOI	$	35,208	$	32,731	$	2,477		7.6	%

    THIRD QUARTER FISCAL YEAR 2020 SUPPLEMENTAL INFORMATION 8

Same Property Statistics

(unaudited) (in thousands except for square feet)

	For The Nine Months Ended
	6/30/2020				6/30/2019			Change		Change %
Total Square Feet / Total Properties		23,375,642 / 118				21,802,835 / 113			1,572,807		7.2	%
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)	$	92,228			$	91,637		$	591		0.6	%
Reversal of Effect of Non-cash U.S. GAAP Straight-line Rent Adjustment		(844	)			(1,370	)		526
Same Property Cash NOI	$	91,384			$	90,267		$	1,117		1.2	%

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 Nine Months Ended
	6/30/2020		6/30/2019		Change		Change %
Same Property NOI (GAAP)	$	92,228	$	91,637	$	591		0.6	%
NOI of properties purchased subsequent to September 30, 2018 (three properties purchased during fiscal 2019 and four properties purchased during fiscal 2020)		10,960		4,846
NOI of property expanded subsequent to September 30, 2018 (one property expanded during fiscal 2019)		1,531		1,112
Total NOI	$	104,719	$	97,595	$	7,124		7.3	%

    THIRD QUARTER FISCAL YEAR 2020 SUPPLEMENTAL INFORMATION 9

Consolidated Statements of Cash Flows

(unaudited)(in thousands)

	For The
	Nine Months Ended
		6/30/2020			6/30/2019
CASH FLOWS FROM OPERATING ACTIVITIES
Net Income (Loss)	$	(25,231	)	$	1,986
Noncash Items Included in Net Income (Loss):
Depreciation & Amortization		38,043			35,167
Deferred Straight Line Rent		(1,459	)		(1,352	)
Stock Compensation Expense		368			574
Securities Available for Sale Received as Dividend Income		(977	)		(651	)
Unrealized Holding Losses Arising During the Periods		67,100			38,668
Changes in:
Tenant & Other Receivables		(1,153	)		664
Prepaid Expenses		(2,242	)		(1,185	)
Other Assets & Capitalized Lease Costs		(1,999	)		173
Accounts Payable, Accrued Expenses & Other Liabilities		2,482			709
NET CASH PROVIDED BY OPERATING ACTIVITIES		74,932			74,753
CASH FLOWS FROM INVESTING ACTIVITIES
Purchase of Real Estate & Intangible Assets		(160,023	)		(113,406	)
Capital Improvements		(4,726	)		(11,594	)
Return of Deposits on Real Estate		2,000			200
Deposits Paid on Acquisitions of Real Estate		(550	)		(6,400	)
Proceeds from Securities Available for Sale Called for Redemption		250			-0-
Purchase of Securities Available for Sale		-0-			(54,136	)
NET CASH USED IN INVESTING ACTIVITIES		(163,049	)		(185,336	)
CASH FLOWS FROM FINANCING ACTIVITIES
Net Repayments on Loans Payable		(15,000	)		(60,422	)
Proceeds from Fixed Rate Mortgage Notes Payable		100,560			72,500
Principal Payments on Fixed Rate Mortgage Notes Payable		(41,166	)		(50,180	)
Financing Costs Paid on Debt		(2,397	)		(444	)
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		84,815			24,049
Proceeds from Issuance of Common Stock in the DRIP, net of Dividend Reinvestments		18,641			44,618
Shares repurchased through the Common Stock Repurchase Plan		(4,276	)		-0-
Preferred Dividends Paid		(19,029	)		(13,520	)
Common Dividends Paid, net of Reinvestments		(43,122	)		(34,616	)
NET CASH PROVIDED BY FINANCING ACTIVITIES		80,042			114,890
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS		(8,075	)		4,307
CASH AND CASH EQUIVALENTS - BEGINNING OF PERIOD		20,179			9,324
CASH AND CASH EQUIVALENTS - END OF PERIOD	$	12,104		$	13,631

    THIRD 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
	6/30/2020			6/30/2019			9/30/2019
Fixed Rate Mortgage Notes Payable, net of Unamortized Debt Issuance Costs	$	804,342		$	734,095		$	744,928
Loans Payable		80,000			126,187			95,000
Total Debt		884,342			860,282			839,928
6.125% Series C Cumulative Redeemable Preferred Stock		433,850			312,660			347,678
Common Stock, Additional Paid-In-Capital & Other		589,935			641,112			663,365
Total Shareholders’ Equity		1,023,785			953,772			1,011,043
Total Book Capitalization		1,908,127			1,814,054			1,850,971
Accumulated Depreciation		284,058			238,757			249,584
Total Undepreciated Book Capitalization	$	2,192,185		$	2,052,811		$	2,100,555
Shares Outstanding		97,972			95,155			96,399
Market Price Per Share	$	14.49		$	13.55		$	14.41
Equity Market Capitalization	$	1,419,614		$	1,289,350		$	1,389,107
Total Debt		884,342			860,282			839,928
Total Preferred Stock		433,850			312,660			347,678
Total Market Capitalization	$	2,737,806		$	2,462,292		$	2,576,713
Total Debt	$	884,342		$	860,282		$	839,928
less: Cash and Cash Equivalents		12,104			13,631			20,179
Net Debt	$	872,238		$	846,651		$	819,749
less: Securities Available for Sale at Fair Value (Securities)		118,877			171,040			185,250
Net Debt Less Securities	$	753,361		$	675,611		$	634,499
Net Debt / Total Undepreciated Book Capitalization		39.8	%		41.2	%		39.0	%
Net Debt / Total Market Capitalization		31.9	%		34.4	%		31.8	%
Net Debt Plus Preferred Stock / Total Market Capitalization		47.7	%		47.1	%		45.3	%
Net Debt Less Securities / Total Undepreciated Book Capitalization		34.4	%		32.9	%		30.2	%
Net Debt Less Securities / Total Market Capitalization		27.5	%		27.4	%		24.6	%
Net Debt Less Securities Plus Preferred Stock / Total Market Capitalization		43.4	%		40.1	%		38.1	%
Weighted Average Interest Rate on Fixed Rate Mortgage Debt		4.00	%		4.03	%		4.03	%
Weighted Average Term on Fixed Rate Mortgage Debt		11.2 yrs.			11.5 yrs.			11.3 yrs.
Weighted Average Lease Term		7.2 yrs.			7.8 yrs.			7.6 yrs.

    THIRD QUARTER FISCAL YEAR 2020 SUPPLEMENTAL INFORMATION 11

Capital Structure and Leverage Ratios

(unaudited) (in thousands)

	For the Three Months Ended						For the Nine Months Ended						Fiscal Year Ended
	6/30/2020			6/30/2019			6/30/2020			6/30/2019			9/30/2019
Net Income (Loss) Attributable to Common Shareholders	$	26,851		$	(3,121	)	$	(44,700	)	$	(11,664	)	$	11,026
Plus: Preferred Dividends		6,607			4,749			19,469			13,650			18,774
Plus: Interest Expense, including Amortization of Financing Costs		8,975			9,275			27,235			27,879			36,912
Plus: Depreciation and Amortization		12,531			11,554			36,958			34,211			45,890
Plus: Net Amortization of Acquired Above and Below Market Lease Revenue		26			26			77			77			103
Less/Plus: Unrealized Holding (Gains) Losses Arising During the Periods		(19,610	)		11,609			67,100			38,668			24,680
Adjusted EBITDA	$	35,380		$	34,092		$	106,139		$	102,821		$	137,385
Interest Expense, including Amortization of Financing Costs	$	8,975		$	9,275		$	27,235		$	27,879		$	36,912
Preferred Dividends		6,607			4,749			19,469			13,650			18,774
Total Fixed Charges	$	15,582		$	14,024		$	46,704		$	41,529		$	55,686
Interest Coverage		3.9 x			3.7 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	$	872,238		$	846,651		$	872,238		$	846,651		$	819,749
Net Debt Less Securities		753,361			675,611			753,361			675,611			634,499
Total Preferred Stock		433,850			312,660			433,850			312,660			347,678
Annualized Adjusted EBITDA		141,520			136,368			141,519			137,095			137,385
Net Debt / Adjusted EBITDA		6.2 x			6.2 x			6.2 x			6.2 x			6.0 x
Net Debt Less Securities / Adjusted EBITDA		5.3 x			5.0 x			5.3 x			4.9 x			4.6 x
Net Debt + Preferred Stock / Adjusted EBITDA		9.2 x			8.5 x			9.2 x			8.5 x			8.5 x
Net Debt Less Securities + Preferred Stock / Adjusted EBITDA		8.4 x			7.2 x			8.4 x			7.2 x			7.1 x

    THIRD QUARTER FISCAL YEAR 2020 SUPPLEMENTAL INFORMATION 12

Debt Maturity

(unaudited) (In thousands)

					Loans							% of
Fiscal Year Ended		Mortgages			Payable				Total			Total
2020		$	14,688		$	5,000		(B)	$	19,688			2.2	%
2021			60,263			-0-				60,263			6.8	%
2022			82,613			-0-				82,613			9.3	%
2023			61,541			-0-				61,541			6.9	%
2024			74,807			-0-				74,807			8.4	%
Thereafter			518,397			75,000		(C)		593,397			66.4	%
Total as of 6/30/2020	(A)	$	812,309		$	80,000			$	892,309			100.0	%
Weighted Average Interest Rate			4.00	%		2.78	%			3.89	%
Weighted Average Term			11.2 yrs.			4.3 yrs.				10.6 yrs.

(A)	Mortgages does not include unamortized debt issuance costs of $8.0 million.
(B)	Represents margin debt which is due upon demand. Subsequent to the quarter end, we paid off this margin debt.
(C)	Represents a Term Loan maturing January 2025.

    THIRD 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.			45		9,101,593		9,101,593		38.9	%	$	74,007,000		50.2	%	$	8.13	$	1,055,494,582		$	457,097,001
FedEx Corporation			16		1,164,830		1,164,830		5.0	%		7,492,000		5.1	%		6.43		108,854,670			20,771,501
FedEx Forward Depots, Inc.			1		449,900		449,900		1.9	%		1,394,000		0.9	%		3.10		16,092,852			3,532,289
Total FedEx			62		10,716,323		10,716,323		45.8	%		82,893,000		56.2	%		7.74		1,180,442,104			481,400,791
Amazon.com Services, Inc. (Amazon.com, Inc.)			4		1,370,465		1,370,465		5.9	%		9,709,000		6.6	%		7.08		151,597,032			85,937,017
Milwaukee Electric Tool Corporation			1		861,889		861,889		3.7	%		3,076,000		2.1	%		3.57		36,914,917			18,517,035
Shaw Industries, Inc.			1		831,764		831,764		3.6	%		3,529,000		2.4	%		4.24		56,025,945			28,825,747
ULTA, Inc.			1		671,354		671,354		2.9	%		2,755,000		1.9	%		4.10		37,540,948			17,710,034
Jim Beam Brands Company (Beam Suntory)			1		599,840		599,840		2.6	%		2,092,000		1.4	%		3.49		28,000,000			14,884,902
International Paper Company			2		578,472		578,472		2.5	%		2,639,000		1.8	%		4.56		37,024,608			18,234,310
TreeHouse Private Brands, Inc.			1		558,600		558,600		2.4	%		2,246,000		1.5	%		4.02		26,807,852			13,991,566
Autoneum North America, Inc.			1		413,605		413,605		1.8	%		2,221,000		1.5	%		5.37		21,040,396			13,069,495
B. Braun Medical Inc.			1		399,440		399,440		1.7	%		2,159,000		1.5	%		5.41		30,263,247			17,474,438
UGN, Inc.			1		387,000		387,000		1.7	%		2,088,000		1.4	%		5.40		21,576,756			12,830,691
CBOCS Distribution, Inc. (Cracker Barrel)			1		381,240		381,240		1.6	%		1,475,000		1.0	%		3.87		14,215,126			-0-
Best Buy Warehousing Logistics, Inc.			1		368,060		368,060		1.6	%		1,709,000		1.2	%		4.64		19,600,000			8,191,801
Toyota Tsusho America, Inc.			1		350,000		350,000		1.5	%		1,710,000		1.2	%		4.89		25,078,587			16,312,321
Coca-Cola			2		323,358		323,358		1.4	%		1,725,000		1.2	%		5.33		20,504,069			2,595,283
Science Applications International Corporation			1		302,400		302,400		1.3	%		1,683,000		1.1	%		5.57		14,463,148			-0-
Bunzl USA Holdings, Inc.			2		268,778		268,778		1.1	%		1,500,000		1.0	%		5.58		18,731,674			11,121,385
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			6,428,839
United Technologies Corporation			2		223,150		223,150		1.0	%		1,507,000		1.0	%		6.75		23,594,917			4,961,570
Mickey Thompson Performance Tires and Wheels (Cooper Tire)			1		219,765		219,765		0.9	%		1,523,000		1.0	%		6.93		18,934,065			10,980,563
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		7,282,986			-0-
NF&M International, Inc.	(B)		1		174,802		174,802		0.7	%		841,000		0.6	%		4.81		5,414,850			-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			9,277,101
Victory Packaging, L.P.			1		148,000		148,000		0.6	%		514,000		0.3	%		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			5,808,421
Altec Industries, Inc.	(A)		1		126,880		126,880		0.5	%		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			9,793,926
Keurig Dr Pepper			2		110,080		110,080		0.5	%		753,000		0.5	%		6.84		10,498,031			1,448,041
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		0.4	%		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		7,797,827			-0-
National Oilwell Varco, Inc.			1		91,295		91,295		0.4	%		796,000		0.5	%		8.72		8,163,278			1,240,892
Joseph T. Ryerson and Son, Inc.			1		89,052		89,052		0.4	%		514,000		0.3	%		5.77		7,164,514			-0-
CHEP USA, Inc.			1		83,000		83,000		0.3	%		506,000		0.4	%		6.10		7,463,672			-0-
Sherwin-Williams Company			2		78,887		78,887		0.3	%		648,000		0.4	%		8.21		7,258,078			-0-
RGH Enterprises, Inc. (Cardinal Health)			1		75,000		75,000		0.2	%		619,000		0.5	%		8.25		5,525,600			-0-
Tampa Bay Grand Prix			1		68,385		68,385		0.3	%		361,000		0.2	%		5.28		5,677,982			-0-
Various Tenants at Retail Shopping Center			1		64,220		61,190		0.3	%		757,000		0.5	%		12.37		3,139,564			-0-
SOFIVE, Inc.			1		60,400		60,400		0.3	%		633,000		0.4	%		10.48		5,296,752			1,273,228
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		0.2	%		459,000		0.3	%		8.98		4,554,685			-0-
Foundation Building Materials, LLC			1		36,270		36,270		0.2	%		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-		6,011,427			-0-
Total as of 6/30/20			118		23,375,642		23,236,944		99.4	%	$	147,549,000		100.0	%	$	6.35	$	2,027,162,599	(C)	$	812,309,397

(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 are 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 $7,966,986.

    THIRD 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		9.5	%	$	15,817,000		10.7	%	$	7.15	$	227,587,902		$	85,677,333
Indiana	4		1,964,923		1,964,923		8.4	%		11,132,000		7.5	%		5.67		167,487,527			94,067,086
Ohio	10		1,858,506		1,858,506		8.0	%		11,218,000		7.6	%		6.04		137,189,167			51,686,656
Texas	10		1,781,967		1,781,967		7.6	%		13,788,000		9.3	%		7.74		183,107,137			67,681,983
Georgia	6		1,639,696		1,639,696		7.0	%		10,551,000		7.1	%		6.43		166,213,681			81,421,927
South Carolina	6		1,371,721		1,371,721		5.9	%		10,309,000		7.0	%		7.52		129,964,844			52,671,211
Kentucky	3		1,295,940		1,295,940		5.5	%		5,190,000		3.5	%		4.00		66,111,852			34,684,889
North Carolina	5		1,225,987		1,225,987		5.2	%		8,688,000		5.9	%		7.09		132,526,762			68,482,923
Mississippi	4		1,158,889		1,158,889		5.0	%		4,532,000		3.1	%		3.91		55,677,635			24,945,874
Illinois	9		958,045		958,045		4.1	%		6,222,000		4.2	%		6.49		83,168,709			7,483,017
Tennessee	3		891,777		891,777		3.8	%		3,188,000		2.2	%		3.57		35,677,250			3,532,289
Michigan	4		833,054		833,054		3.6	%		5,577,000		3.8	%		6.69		73,424,162			22,654,378
Kansas	4		813,043		813,043		3.5	%		4,678,000		3.2	%		5.75		61,025,122			26,020,683
Missouri	4		740,119		740,119		3.2	%		2,900,000		2.0	%		3.92		35,448,902			6,319,464
Oklahoma	4		614,941		614,941		2.6	%		3,975,000		2.7	%		6.46		54,961,021			26,311,965
New York	3		518,565		518,565		2.2	%		3,572,000		2.4	%		6.89		51,618,400			19,101,252
Pennsylvania	3		504,040		423,184		2.2	%		2,826,000		1.9	%		6.68		36,906,779			12,326,903
New Jersey	3		471,765		468,735		2.0	%		6,696,000		4.6	%		14.29		92,423,938			51,939,063
Alabama	2		451,595		451,595		1.9	%		2,650,000		1.8	%		5.87		39,714,135			17,001,043
Virginia	5		407,265		407,265		1.7	%		2,456,000		1.7	%		6.03		34,868,096			3,524,522
Colorado	2		295,227		295,227		1.3	%		2,441,000		1.6	%		8.27		35,694,134			14,840,275
Arizona	1		283,358		283,358		1.2	%		1,393,000		0.9	%		4.92		16,824,226			2,231,508
Wisconsin	2		238,666		238,666		1.0	%		1,295,000		0.9	%		5.43		16,377,221			2,055,817
Washington	1		210,445		210,445		0.9	%		1,962,000		1.3	%		9.32		30,320,686			15,766,363
Louisiana	1		175,315		175,315		0.7	%		1,270,000		0.9	%		7.24		18,425,875			9,873,503
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		0.3	%		5.00		5,963,626			-0-
Utah	1		69,734		69,734		0.3	%		772,000		0.5	%		11.07		12,666,994			8,360,000
Minnesota	1		60,398		60,398		0.3	%		372,000		0.3	%		6.16		5,223,944			1,647,470
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 6/30/20	118		23,375,642		23,236,944		100.0	%	$	147,549,000		100.0	%	$	6.35	$	2,027,162,599	(A)	$	812,309,397

(A) Does not include unamortized debt issuance costs of $7,966,986.

    THIRD 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-	$	-0-		$	-0-
2021	(A)		10		1,206,723		5.2	%		5,560,000		3.8	%		4.61		0.9		69,813,124			6,683,239
2022			7		1,152,006		4.9	%		6,372,000		4.3	%		5.53		1.7		78,920,819			19,765,577
2023	(A)		14		1,840,004		7.9	%		10,612,000		7.2	%		5.77		2.9		128,622,634			17,588,596
2024			13		1,887,034		8.1	%		11,722,000		7.9	%		6.21		3.9		137,488,989			22,935,645
2025	(A)		10		2,459,470		10.5	%		12,462,000		8.4	%		5.07		4.9		164,532,551			64,398,049
2026			8		1,078,913		4.6	%		8,331,000		5.6	%		7.72		5.9		113,206,322			30,442,622
2027			12		2,373,001		10.2	%		13,049,000		8.8	%		5.50		7.1		185,819,770			64,355,260
2028			11		2,571,915		11.0	%		13,970,000		9.5	%		5.43		7.8		182,728,436			62,263,260
2029			9		1,830,929		7.8	%		10,548,000		7.1	%		5.76		8.8		147,759,792			61,791,530
2030			5		1,026,032		4.4	%		8,177,000		5.5	%		7.97		9.8		119,544,872			58,729,758
2031			3		963,269		4.1	%		7,152,000		4.8	%		7.42		10.8		104,691,839			58,095,208
2032	(B)		8		2,131,983		9.1	%		18,803,000		12.7	%		8.82		11.8		290,952,566			164,859,510
2033			2		639,068		2.7	%		6,486,000		4.4	%		10.15		12.8		106,803,506			63,564,427
2034			3		1,561,347		6.7	%		9,284,000		6.6	%		5.95		13.8		127,748,517			78,176,716
2035			2		356,015		1.5	%		3,774,000		2.6	%		10.60		14.8		59,377,871			38,660,000
Various tenants at retail shopping center			1		64,220		0.3	%		757,000		0.5	%		12.37		-0-		3,139,564			-0-
Vacant	(A)		2		135,668		0.6	%		-0-		0.0	%		-0-		-0-		6,011,427			-0-
Total as of 6/30/20			118		23,375,642		100.0	%	$	147,549,000		100.0	%	$	6.35		7.2	$	2,027,162,599	(C)	$	812,309,397

(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 are 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 $7,966,986.

    THIRD QUARTER FISCAL YEAR 2020 SUPPLEMENTAL INFORMATION 16

Recent Acquisitions During Fiscal 2020

(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	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		17,874,000		9,400,000
3	FedEx Ground Package System, Inc.	Greensboro	NC	5/21/20		286,281		3,002,000		10.49	4/30/35		47,645,000		30,300,000
4	FedEx Corporation	Ogden (Salt Lake City)	UT	5/21/20		69,734		772,000		11.07	3/31/35		12,864,000		8,360,000
	As of 6/30/20					1,124,762	$	9,921,000	$	8.82		$	159,883,000	$	100,560,000

    THIRD QUARTER FISCAL YEAR 2020 SUPPLEMENTAL INFORMATION 17

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	$	3,076,000	$	3.57		8.1	$	36,914,917	$	18,517,035
2	Shaw Industries, Inc.		Savannah	GA		2018		100.0	%		831,764		3,529,000		4.24		7.3		56,025,945		28,825,747
3	ULTA, Inc.		Greenwood (Indianapolis)	IN		2015		100.0	%		671,354		2,755,000		4.10		5.1		37,540,948		17,710,034
4	Amazon.com Services, Inc. (Amazon.com, Inc.)		Greenwood (Indianapolis)	IN		2020		100.0	%		615,747		4,950,000		8.04		14.2		79,363,909		51,354,459
5	Jim Beam Brands Company (Beam Suntory)		Frankfort (Lexington)	KY		2015		100.0	%		599,840		2,092,000		3.49		4.6		28,000,000		14,884,902
6	TreeHouse Private Brands, Inc.		Buckner (Louisville)	KY		2014		100.0	%		558,600		2,246,000		4.02		13.3		26,807,852		13,991,566
7	FedEx Forward Depots, Inc.		Memphis	TN		2010		100.0	%		449,900		1,394,000		3.10		8.9		16,092,852		3,532,289
8	Autoneum North America, Inc.	(B)	Aiken (Augusta, GA)	SC		2017		100.0	%		315,560		1,731,000		5.49		11.8		21,040,396		13,069,495
	Autoneum North America, Inc.		Aiken (Augusta, GA)	SC		2017		100.0	%		98,045		490,000		5.00		-0-		-0-		-0-
9	B. Braun Medical Inc.		Daytona Beach	FL		2018		100.0	%		399,440		2,159,000		5.41		7.8		30,263,247		17,474,438
10	UGN, Inc.		Monroe (Cincinnati)	OH		2015		100.0	%		387,000		2,088,000		5.40		13.7		21,576,756		12,830,691
11	Woodstream Corporation		St. Joseph	MO		2001		100.0	%		256,000		932,000		3.64		1.3		8,958,278		-0-
	Altec Industries, Inc.		St. Joseph	MO		2001		100.0	%		126,880		376,000		2.96		2.7		4,439,947		-0-
12	CBOCS Distribution, Inc. (Cracker Barrel)		Lebanon (Nashville)	TN		2011		100.0	%		381,240		1,475,000		3.87		4.0		14,215,126		-0-
13	FedEx Ground Package System, Inc.		Braselton (Atlanta)	GA		2018		100.0	%		373,750		3,782,000		10.12		12.7		60,227,126		36,374,212
14	Best Buy Warehousing Logistics, Inc.		Streetsboro (Cleveland)	OH		2012		100.0	%		368,060		1,709,000		4.64		1.6		19,600,000		8,191,801
15	Amazon.com Services, Inc. (Amazon.com, Inc.)		Mobile	AL		2018		100.0	%		362,942		2,045,000		5.63		8.4		33,052,316		17,001,043
16	FedEx Ground Package System, Inc.		Concord (Charlotte)	NC		2017		100.0	%		354,482		2,537,000		7.16		11.9		40,043,145		22,428,160
17	FedEx Ground Package System, Inc.		Mesquite (Dallas)	TX		2017		100.0	%		351,874		3,203,000		9.10		11.8		49,880,493		27,811,093
18	Toyota Tsusho America, Inc.		Lafayette	IN		2019		100.0	%		350,000		1,710,000		4.89		9.0		25,078,587		16,312,321
19	FedEx Ground Package System, Inc.		Trenton	NJ		2019		100.0	%		347,145		5,306,000		15.28		12.0		83,987,622		50,665,835
20	FedEx Ground Package System, Inc.		Walker (Grand Rapids)	MI		2017		100.0	%		343,483		2,105,000		6.13		11.6		31,654,987		17,509,441
21	FedEx Ground Package System, Inc.		Hamburg (Buffalo)	NY		2017		100.0	%		338,584		2,323,000		6.86		10.8		35,131,977		19,101,252
22	FedEx Ground Package System, Inc.		Concord (Charlotte)	NC		2016		100.0	%		330,717		2,237,000		6.76		5.1		33,053,688		15,754,763
23	FedEx Ground Package System, Inc.		Indianapolis	IN		2014		100.0	%		327,822		1,717,000		5.24		7.3		25,504,083		8,690,272
24	FedEx Ground Package System, Inc.		Olathe (Kansas City)	KS		2016		100.0	%		313,763		2,210,000		7.04		10.9		31,768,185		17,829,098
25	FedEx Ground Package System, Inc.		Davenport (Orlando)	FL		2016		100.0	%		310,922		2,619,000		8.42		10.8		37,791,677		21,164,858
26	FedEx Ground Package System, Inc.		Ft. Worth (Dallas)	TX		2015		100.0	%		304,608		2,387,000		7.84		9.8		35,444,074		18,249,956
27	Science Applications International Corporation		Hanahan (Charleston)	SC		2005		100.0	%		302,400		1,683,000		5.57		3.3		14,463,148		-0-
28	Amazon.com Services, Inc. (Amazon.com, Inc.)		Oklahoma City	OK		2018		100.0	%		300,000		1,925,000		6.42		7.3		29,878,942		17,581,515
29	International Paper Company		Kenton	OH		2017		100.0	%		298,472		1,268,000		4.25		7.2		18,730,500		10,406,500
30	FedEx Ground Package System, Inc.		Jacksonville	FL		2015		100.0	%		297,579		1,998,000		6.71		9.5		30,925,530		14,163,110
31	FedEx Ground Package System, Inc.		Greensboro	NC		2020		100.0	%		286,281		3,002,000		10.49		14.8		46,710,877		30,300,000
32	Western Container Corp. (Coca-Cola)		Tolleson (Phoenix)	AZ		2003		100.0	%		283,358		1,393,000		4.92		6.8		16,824,226		2,231,508
33	International Paper Company		Edwardsville (Kansas City)	KS		2014		100.0	%		280,000		1,371,000		4.90		3.2		18,294,108		7,827,810
34	FedEx Ground Package System, Inc.		Charleston	SC		2018		100.0	%		265,318		2,704,000		10.19		13.0		46,576,380		27,190,215
35	NF&M International, Inc.		Monaca (Pittsburgh)	PA		1988		68.4	%		255,658		841,000		4.81		4.5		7,919,530		-0-
36	FedEx Ground Package System, Inc.		Orion	MI		2007		100.0	%		245,633		1,908,000		7.77		3.0		22,940,227		-0-
37	FedEx Ground Package System, Inc.		Homestead (Miami)	FL		2017		100.0	%		237,756		2,282,000		9.60		11.8		37,911,556		20,963,985
38	Anda Pharmaceuticals, Inc.		Olive Branch (Memphis, TN)	MS		2012		100.0	%		234,660		1,215,000		5.18		2.1		14,550,000		6,428,839
39	FedEx Ground Package System, Inc.		Colorado Springs	CO		2016		100.0	%		225,362		1,832,000		8.13		5.6		29,320,066		14,840,275
40	Mickey Thompson Performance Tires and Wheels (Cooper Tire)		Stow	OH		2017		100.0	%		219,765		1,523,000		6.93		7.2		18,934,065		10,980,563
41	Rinnai America Corporation		Griffin (Atlanta)	GA		2006		100.0	%		218,120		851,000		3.90		0.5		15,082,217		-0-
42	FedEx Ground Package System, Inc.		Ft. Myers	FL		2017		100.0	%		213,672		1,418,000		6.64		7.2		21,684,310		11,910,942
43	FedEx Ground Package System, Inc.		Burlington (Seattle/Everett)	WA		2016		100.0	%		210,445		1,962,000		9.32		10.2		30,320,686		15,766,363
44	FedEx Ground Package System, Inc.		Sauget (St. Louis, MO)	IL		2015		100.0	%		198,773		1,036,000		5.21		8.9		15,204,950		7,483,017
45	Anheuser-Busch, Inc.		Granite City (St. Louis, MO)	IL		2001		100.0	%		184,800		843,000		4.56		1.4		12,697,848		-0-
46	Carrier Enterprise, LLC (United Technologies)		Carrollton (Dallas)	TX		2010		100.0	%		184,317		1,140,000		6.18		3.6		18,494,917		4,961,570
47	FedEx Ground Package System, Inc.		Spring (Houston)	TX		2014		100.0	%		181,176		1,581,000		8.73		4.3		19,328,922		6,791,231
48	Carlisle Tire & Wheel Company		Edwardsville (Kansas City)	KS		2003		100.0	%		179,280		765,000		4.27		3.1		7,282,986		-0-
49	FedEx Ground Package System, Inc.		Ft. Mill (Charlotte, NC)	SC		2010		100.0	%		176,939		1,598,000		9.03		8.2		17,063,643		-0-
50	FedEx Ground Package System, Inc.		Covington (New Orleans)	LA		2016		100.0	%		175,315		1,270,000		7.24		5.0		18,425,875		9,873,503
51	FedEx Ground Package System, Inc.		Livonia (Detroit)	MI		2013		100.0	%		172,005		1,194,000		6.94		1.8		13,879,697		5,144,937
52	Home Depot USA, Inc.		Montgomery (Chicago)	IL		2004		100.0	%		171,200		1,064,000		6.21		2.5		11,303,317		-0-
53	FedEx Ground Package System, Inc.		Tampa	FL		2004		100.0	%		170,779		1,624,000		9.51		6.1		19,745,245		-0-
54	FedEx Ground Package System, Inc.		Edinburg	TX		2011		100.0	%		164,207		1,097,000		6.68		6.3		12,039,014		-0-
55	FedEx Ground Package System, Inc.		Lindale (Tyler)	TX		2015		100.0	%		163,378		725,000		4.44		4.0		9,965,550		4,932,882
56	Bunzl Distribution Midcentral, Inc.		Kansas City	MO		2015		100.0	%		158,417		764,000		4.82		1.3		10,003,235		6,319,464
57	FedEx Ground Package System, Inc.		Oklahoma City	OK		2012		100.0	%		158,340		1,048,000		6.62		5.1		12,605,609		2,480,488
58	Magna Seating of America, Inc.		Columbus	OH		2020		100.0	%		153,000		1,197,000		7.82		9.6		17,557,830		9,277,101
59	FedEx Ground Package System, Inc.		Waco	TX		2012		100.0	%		150,710		1,078,000		7.15		5.2		12,551,368		3,694,359

    THIRD 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
	60	FedEx Ground Package System, Inc.	Beltsville (Washington, DC)		MD		1997		100.0	%		148,881	$	1,455,000	$	9.77		8.1	$	14,512,355	$	-0-
	61	Victory Packaging, L.P.	Fayetteville		NC		2006		100.0	%		148,000		514,000		3.47		0.7		5,455,379		-0-
	62	FedEx Ground Package System, Inc.	El Paso		TX		2008		100.0	%		144,149		1,345,000		9.33		3.3		12,431,192		-0-
	63	FedEx Ground Package System, Inc.	Cocoa		FL		2001		100.0	%		144,138		1,112,000		7.71		4.3		14,127,449		-0-
	64	FedEx Ground Package System, Inc.	Cudahy (Milwaukee)		WI		2016		100.0	%		139,564		827,000		5.93		7.0		9,807,221		-0-
	65	Challenger Lifts, Inc. (Snap-On Inc.)	Louisville		KY		2006		100.0	%		137,500		852,000		6.20		5.9		11,304,000		5,808,421
	66	FedEx Ground Package System, Inc.	Richfield (Cleveland)		OH		2019		100.0	%		131,152		1,493,000		11.38		4.3		16,447,178		-0-
	67	FedEx Ground Package System, Inc.	Savannah		GA		2016		100.0	%		126,520		1,755,000		13.87		8.3		27,531,560		16,221,968
	68	General Electric Company	Imperial (Pittsburgh)		PA		2003		100.0	%		125,860		1,334,000		10.60		5.5		19,964,283		9,793,926
	69	FedEx Ground Package System, Inc.	Wheeling (Chicago)		IL		2014		100.0	%		123,000		1,272,000		10.34		6.9		18,992,949		-0-
	70	FedEx Ground Package System, Inc.	Altoona		PA		2018		100.0	%		122,522		651,000		5.31		3.2		9,022,966		2,532,977
	71	FedEx Corporation	Charleston		SC		2001		100.0	%		121,683		1,314,000		10.80		12.2		21,519,412		12,411,501
	72	FedEx Corporation	Mechanicsville (Richmond)		VA		2008		100.0	%		112,799		541,000		4.80		2.8		7,827,460		-0-
	73	FedEx Corporation	Orlando		FL		2017		100.0	%		110,638		666,000		6.02		7.4		8,810,059		-0-
	74	Bunzl Distribution Oklahoma, Inc.	Oklahoma City		OK		2002		100.0	%		110,361		736,000		6.67		4.2		8,728,439		4,801,921
	75	Style Crest, Inc.	Winston-Salem		NC		2000		100.0	%		106,507		398,000		3.74		0.8		7,263,673		-0-
	76	SONWIL DISTRIBUTION CENTER, INC.	Cheektowaga (Buffalo)		NY		1999		100.0	%		104,981		630,000		6.00		1.6		10,960,823		-0-
	77	FedEx Ground Package System, Inc.	West Chester Twp. (Cincinnati)		OH		2013		100.0	%		103,818		556,000		5.36		3.2		5,733,686		-0-
	78	FedEx Ground Package System, Inc.	Roanoke		VA		1994		100.0	%		103,402		755,000		7.30		2.8		10,200,000		3,524,522
	79	Pittsburgh Glass Works, LLC	O’ Fallon (St. Louis)		MO		2013		100.0	%		102,135		450,000		4.41		1.0		4,249,615		-0-
	80	FedEx Ground Package System, Inc.	Green Bay		WI		1998		100.0	%		99,102		468,000		4.72		2.9		6,570,000		2,055,817
	81	Dakota Bodies, LLC	Liberty (Kansas City)		MO		1999		100.0	%		96,687		378,000		3.91		5.8		7,797,827		-0-
	82	FedEx Corporation	Jacksonville		FL		2006		100.0	%		95,883		536,000		5.59		8.9		6,584,384		-0-
	83	FedEx Corporation	Tampa		FL		2005		100.0	%		95,662		603,000		6.30		7.4		7,889,727		-0-
	84	Amazon.com Services, Inc.	Hanahan (Charleston)		SC		2010		100.0	%		91,776		789,000		8.60		9.0		9,301,865		-0-
	85	National Oilwell Varco, Inc.	Houston		TX		1999		100.0	%		91,295		796,000		8.72		9.3		8,163,278		1,240,892
	86	FedEx Corporation	Omaha		NE		2002		100.0	%		89,115		446,000		5.00		3.3		5,963,626		-0-
	87	Joseph T. Ryerson and Son, Inc.	Elgin (Chicago)		IL		2005		100.0	%		89,052		514,000		5.77		4.6		7,164,514		-0-
	88	FedEx Ground Package System, Inc.	Huntsville		AL		2007		100.0	%		88,653		605,000		6.82		6.1		6,661,819		-0-
	89	CHEP USA, Inc.	Roanoke		VA		2007		100.0	%		83,000		506,000		6.10		4.7		7,463,672		-0-
	90	FedEx Corporation	Bedford Heights (Cleveland)		OH		2012		100.0	%		82,269		438,000		5.32		8.2		7,304,467		-0-
	91	RGH Enterprises, Inc. (Cardinal Health)	Halfmoon (Albany)		NY		1997		100.0	%		75,000		619,000		8.25		1.4		5,525,600		-0-
	92	FedEx Corporation	Schaumburg (Chicago)		IL		1998		100.0	%		73,500		478,000		6.50		6.8		5,447,053		-0-
	93	FedEx Corporation	Romulus (Detroit)		MI		2005		100.0	%		71,933		370,000		5.14		0.9		4,949,251		-0-
	94	FedEx Ground Package System, Inc.	Denver		CO		2005		100.0	%		69,865		609,000		8.72		5.3		6,374,068		-0-
	95	FedEx Corporation	Ogden		UT		2011		100.0	%		69,734		772,000		11.07		14.8		12,666,994		8,360,000
	96	Tampa Bay Grand Prix	Tampa		FL		1970		100.0	%		68,385		361,000		5.28		7.3		5,677,982		-0-
	97	Sherwin-Williams Company	Rockford		IL		2015		100.0	%		66,387		486,000		7.32		3.5		5,551,227		-0-
	98	Various Tenants at Retail Shopping Center	Somerset		NJ		2007		95.0	%		64,220		757,000		12.37		na		3,139,564		-0-
	99	Keurig Dr Pepper	Cincinnati		OH		2001		100.0	%		63,840		487,000		7.63		9.3		6,750,000		-0-
	100	FedEx Corporation	Chattanooga		TN		2013		100.0	%		60,637		319,000		5.26		2.3		5,369,272		-0-
	101	SOFIVE, Inc.	Carlstadt (New York, NY)		NJ		2004		100.0	%		60,400		633,000		10.48		9.6		5,296,752		1,273,228
	102	FedEx Ground Package System, Inc.	Stewartville (Rochester)		MN		2005		100.0	%		60,398		372,000		6.16		2.9		5,223,944		1,647,470
	103	Locke Supply Co.	Richmond		VA		2001		100.0	%		60,000		325,000		5.42		11.8		4,914,955		-0-
	104	FedEx Ground Package System, Inc.	Augusta		GA		2012		100.0	%		59,358		513,000		8.64		1.0		5,363,304		-0-
	105	Vacant	Newington (Hartford)		CT		1999		0.0	%		54,812		-0-		na		na		3,506,747		-0-
	106	Siemens Real Estate	Lebanon (Cincinnati)		OH		2012		100.0	%		51,130		459,000		8.98		3.8		4,554,685		-0-
	107	FedEx Corporation	Charlottesville		VA		2014		100.0	%		48,064		329,000		6.85		7.2		4,462,009		-0-
	108	FedEx Ground Package System, Inc.	Corpus Christi		TX		2009		100.0	%		46,253		436,000		9.43		1.2		4,808,329		-0-
	109	Keurig Dr Pepper	Tulsa		OK		2015		100.0	%		46,240		266,000		5.75		3.7		3,748,031		1,448,041
	110	Heartland Coca-Cola Bottling Company, LLC (Coca-Cola)	Topeka		KS		1994		100.0	%		40,000		332,000		8.30		1.3		3,679,843		363,775
	111	Collins Aerospace Systems (United Technologies)	Rockford		IL		1994		100.0	%		38,833		367,000		9.45		7.0		5,100,000		-0-
	112	Foundation Building Materials, LLC	Urbandale (Des Moines)		IA		2007		100.0	%		36,270		178,000		4.91		7.5		2,543,770		-0-
	113	FedEx Corporation	Richland (Jackson)		MS		2006		100.0	%		36,000		120,000		3.33		3.8		1,900,691		-0-
	114	FedEx Corporation	Punta Gorda		FL		2006		100.0	%		34,624		284,000		8.20		7.0		4,133,510		-0-
	115	FedEx Corporation	Lakeland		FL		1993		100.0	%		32,105		155,000		4.83		7.4		2,043,226		-0-

    THIRD QUARTER FISCAL YEAR 2020 SUPPLEMENTAL INFORMATION 19

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
	116	FedEx Corporation	Augusta	GA		2006		100.0	%		30,184	$	121,000	$	4.01		2.4	$	1,983,529	$	-0-
	117	Graybar Electric Company	Ridgeland (Jackson)	MS		1993		100.0	%		26,340		121,000		4.59		5.1		2,312,027		-0-
	118	Sherwin-Williams Company	Burr Ridge (Chicago)	IL		1997		100.0	%		12,500		162,000		12.96		1.3		1,706,851		-0-
		Total as of 6/30/20						99.4	%		23,375,642	$	147,549,000	$	6.35		7.2	$	2,027,162,599	$	(A) 812,309,397

(A)	Does not include unamortized debt issuance costs of $7,966,986.
(B)	Property located in Aiken (Augusta, GA), SC leased to Autoneum North America, Inc. contains two leasable structures with two different lease terms.

    THIRD 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. Nareit created FFO as a non-GAAP supplemental measure of REIT operating performance.

● AFFO is 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.

● NOI from 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 NOI is 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 NOI is 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, net amortization of acquired above and below market lease revenue and unrealized holding losses (minus gains) arising during the periods.

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.

    THIRD QUARTER FISCAL YEAR 2020 SUPPLEMENTAL INFORMATION 21

FOR IMMEDIATE RELEASE	August 4, 2020
	Contact: Becky Coleridge
	732-577-9996

MONMOUTH REAL ESTATE REPORTS RESULTS FOR

THE THIRD QUARTER ENDED JUNE 30, 2020

HOLMDEL, NJ, August 4, 2020........ Monmouth Real Estate Investment Corporation (NYSE:MNR) reported Net Income Attributable to Common Shareholders of $26.9 million or $0.27 per diluted share for the three months ended June 30, 2020 as compared to Net Loss Attributable to Common Shareholders of $3.1 million or $0.03 per diluted share for the three months ended June 30, 2019, representing an increase of $30.0 million or $0.30 per diluted share. During the three months ended June 30, 2020, we recognized a $19.6 million unrealized holding gain on securities or $0.20 per diluted share as compared to an $11.6 million unrealized holding loss on securities or $0.12 per diluted share for the three months ended June 30, 2019. Funds from Operations (FFO), which excludes unrealized and realized gains or losses from our securities portfolio, for the three months ended June 30, 2020 were $19.7 million or $0.20 per diluted share versus $19.9 million or $0.21 per diluted share for the three months ended June 30, 2019, representing a decrease of $0.01 in FFO per diluted share. Adjusted Funds from Operations (AFFO), which also excludes unrealized and realized gains or losses from our securities portfolio, for the three months ended June 30, 2020 were $19.5 million or $0.20 per diluted share versus $19.4 million or $0.21 per diluted share for the three months ended June 30, 2019, representing a $0.01 decrease in AFFO per diluted share. Sequentially, our FFO of $0.20 per diluted share for the third quarter of fiscal 2020 is $0.01 lower than our FFO of $0.21 per diluted share for the second quarter of fiscal 2020 and our AFFO of $0.20 per diluted share for the third quarter of fiscal 2020 is consistent with our AFFO of $0.20 per diluted share for the second quarter of fiscal 2020. The year over year $0.01 decline in FFO and AFFO for the quarter is primarily attributable to a $1.9 million increase in Preferred Dividend expense as a result of an increase in preferred shares outstanding, as well as a $1.3 million decrease in dividend income, partially offset by a $2.5 million increase in Net Operating Income (NOI).

Portfolio Occupancy and Tenant Rent Collections During The COVID-19 Pandemic

Our portfolio occupancy remained nearly full during the quarter at 99.4% which represents a 50 basis point increase over the prior year period and is consistent with the prior quarter. Our rent collections throughout the COVID-19 Pandemic have been as follows:

● For the month of March were 100.0%

● For the month of April were 99.6%

● For the month of May were 97.9%

● For the month of June were 99.4%

● For the month of July were 99.6%

● For the month of August, we expect total rent collections to come in at 99.6%

While the future effects of the evolving impact of the COVID-19 pandemic are still uncertain, at this time we believe that the fallout will not have a material adverse effect on our financial condition. To date, Monmouth has received very limited requests for rent deferment. We have agreed to defer $438,000 which represents a 31 basis point impact on our annual base rent. Approximately 75% of this deferred amount is due to be paid by the end of the calendar year. Our weighted average lease term at quarter end is 7.2 years as compared to 7.4 years at the end of the prior quarter.

A summary of significant financial information for the three and nine months ended June 30, 2020 and 2019 (in thousands, except per share amounts) is as follows:

	Three Months Ended June 30,
	2020		2019
Rental Revenue	$	35,427	$	33,127
Reimbursement Revenue	$	6,348	$	5,421
Net Operating Income (NOI) (1)	$	35,208	$	32,731
Total Expenses	$	21,296	$	19,722
Dividend Income	$	2,344	$	3,686
Unrealized Holding Gains (Losses) Arising During the Periods	$	19,610	$	(11,609	)
Net Income	$	33,458	$	1,628
Net Income (Loss) Attributable to Common Shareholders	$	26,851	$	(3,121	)
Net Income (Loss) Attributable to Common Shareholders Per Diluted Common Share	$	0.27	$	(0.03	)
FFO (1)	$	19,740	$	19,899
FFO per Diluted Common Share (1)	$	0.20	$	0.21
AFFO (1)	$	19,488	$	19,388
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		97,962		94,493

    THIRD QUARTER FISCAL YEAR 2020 SUPPLEMENTAL INFORMATION 22

	Nine Months Ended June 30,
	2020			2019
Rental Revenue	$	105,410		$	98,678
Reimbursement Revenue	$	19,772		$	16,473
Net Operating Income (NOI) (1)	$	104,719		$	97,595
Total Expenses	$	65,065		$	58,187
Dividend Income	$	8,987		$	11,569
Unrealized Holding Gains (Losses) Arising During the Periods	$	(67,100	)	$	(38,668	)
Net Income (Loss)	$	(25,231	)	$	1,986
Net Income (Loss) Attributable to Common Shareholders	$	(44,700	)	$	(11,664	)
Net Income (Loss) Attributable to Common Shareholders Per Diluted Common Share	$	(0.46	)	$	(0.13	)
FFO (1)	$	59,259		$	60,917
FFO per Diluted Common Share (1)	$	0.61		$	0.66
AFFO (1)	$	58,771		$	59,583
AFFO per Diluted Common Share (1)	$	0.60		$	0.64
Dividends Declared per Common Share	$	0.51		$	0.51
Weighted Avg. Diluted Common Shares Outstanding		97,626			92,719

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

	June 30, 2020		September 30, 2019
Real Estate Investments	$	1,743,115	$	1,616,934
Securities Available for Sale at Fair Value	$	118,877	$	185,250
Total Assets	$	1,931,425	$	1,871,948
Fixed Rate Mortgage Notes Payable, net of Unamortized Debt Issuance Costs	$	804,342	$	744,928
Loans Payable	$	80,000	$	95,000
6.125% Series C Cumulative Redeemable Preferred Stock	$	433,850	$	347,678
Total Shareholders’ Equity	$	1,023,785	$	1,011,043

Highlights from Third Quarter Results

● Increased Gross Revenue by 4% over the prior year period to $44.1 million

● Increased Net Operating Income by 8% over the prior year period to $35.2 million

● Maintained a conservative AFFO dividend payout ratio of 85%

● Increased our Gross Leasable Area (GLA) by 7%, or 1.6 million square feet over the prior year period to 23.4 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 $218.7 million all leased to Investment Grade tenants for a weighted average lease term of 16.8 years

● Acquired two properties comprising 356,000 square feet for $60.5 million, both of which are leased to FedEx for 15 years

● Increased our portfolio occupancy by 50 basis points over the prior year period and maintained our 99.4% occupancy rate sequentially

● Achieved a weighted average lease term of 7.2 years versus 7.8 years in the prior year period

● Increased our annualized average base rent per occupied square foot by 2% to $6.35 from the prior year period

● Achieved a weighted average debt maturity on fixed-rate mortgage debt of 11.2 years as compared to 11.5 years in the prior year period

● Maintained our Net Debt to Adjusted EBITDA at 6.2x which is in-line with the prior year period

● Reduced the weighted average interest rate on our fixed-rate mortgage debt to 4.00% from 4.03% in the prior year period and reduced the weighted average interest rate on our total fixed-rate debt to 3.90% from 4.03% in the prior year period

    THIRD QUARTER FISCAL YEAR 2020 SUPPLEMENTAL INFORMATION 23

● Raised $4.5 million in net proceeds through the Preferred Stock ATM Program with the sale of 185,000 shares of our 6.125% Series C Preferred Stock at a weighted average price of $24.93 per share

● Raised $1.2 million (including dividend reinvestments of $1.0 million) from the Dividend Reinvestment and Stock Purchase Plan, representing a 6% participation rate  

Michael P. Landy, President and CEO, commented, “Thus far in fiscal 2020, we have acquired four properties comprising 1.1 million square feet for a total purchase price of $159.9 million. During the recent quarter, we acquired two buildings comprising 356,000 square feet for a purchase price of $60.5 million. These properties, located in Greensboro, NC and Salt Lake City, UT are both leased to FedEx for 15 years. Our acquisition pipeline grew over the quarter to $218.7 million and currently contains four new build-to-suit properties comprising 1.5 million total square feet. These properties have a weighted average lease term of 16.8 years. In keeping with our business model, these projects are all leased to investment grade tenants which include, Amazon, FedEx, and Home Depot. Debt financing for three of these four future acquisitions has already been locked-in at a weighted average interest rate of 3.10%.”

“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 per square foot 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.”

“Monmouth went into the global pandemic very well positioned with a strong balance sheet, a high-quality tenant roster, nearly full occupancy, and a well-covered dividend. Our resilient rent collection results during these challenging times highlights the mission-critical nature of our assets and underscores the essential need for our tenants’ operations. Because our weighted average lease maturity is 7.2 years and our weighted average fixed-rate mortgage debt maturity is 11.2 years, we expect our income streams to remain resilient for years to come.”

“As a result of the government shutdowns, ecommerce sales as a percentage of total retail sales have accelerated from approximately 15% to 27% during the recent quarter. This has created tremendous demand for many of our properties with operations increasing to seven-day work weeks to accommodate this strong demand. The COVID-19 pandemic has also created a need for supply chain reconfiguration. Increased inventory stocking is currently taking place across the U.S. for several industries and this trend is accelerating to accommodate surges in demand. The COVID-19 pandemic has also increased the desire for additional domestic manufacturing, as supply chains now prefer shorter routes and less reliance on foreign sources. Because our portfolio comprises modern industrial buildings located throughout the continental U.S., we are very well-positioned to benefit from these accelerating trends going forward.”

Monmouth Real Estate Investment Corporation will host its Third Quarter FY 2020 Financial Results Webcast and Conference Call on Wednesday, August 5, 2020 at 10:00 a.m. Eastern Time. Senior management will discuss the results, current market conditions and future outlook.

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

To participate in the Webcast, select the 3Q2020 Webcast and Earnings Call “Link to Webcast” on the homepage of our website at www.mreic.reit, in the Highlights section, which is located towards the bottom of the homepage. Interested parties can also participate via conference 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 Wednesday, August 5, 2020. It will be available until November 16, 2020, and can be accessed by dialing toll free 1-877-344-7529 (domestically) and 1-412-317-0088 (internationally) and entering the passcode 10144143. 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 118 properties containing a total of approximately 23.3 million rentable square feet, geographically diversified across 31 states.

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.

    THIRD QUARTER FISCAL YEAR 2020 SUPPLEMENTAL INFORMATION 24

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. 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.

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 nine months ended June 30, 2020 and 2019 (in thousands):

	Three Months Ended						Nine Months Ended
	6/30/2020			6/30/2019			6/30/2020			6/30/2019
Net Income (Loss) Attributable to Common Shareholders	$	26,851		$	(3,121	)	$	(44,700	)	$	(11,664	)
Less/Plus: Unrealized Holding (Gains) Losses Arising During the Periods		(19,610	)		11,609			67,100			38,668
Plus: Depreciation Expense (excluding Corporate Office Capitalized Costs)		11,685			10,665			34,474			31,692
Plus: Amortization of Intangible Assets		524			490			1,539			1,495
Plus: Amortization of Capitalized Lease Costs		290			256			846			726
FFO Attributable to Common Shareholders		19,740			19,899			59,259			60,917
Plus: Depreciation of Corporate Office Capitalized Costs		57			168			176			376
Plus: Stock Compensation Expense		98			231			368			574
Plus: Amortization of Financing Costs		327			319			1,084			956
Plus: Non-recurring Severance Expense		-0-			-0-			786			-0-
Less: Recurring Capital Expenditures		(508	)		(702	)		(1,443	)		(1,888	)
Less: Effect of Non-cash U.S. GAAP Straight-line Rent Adjustment		(226	)		(527	)		(1,459	)		(1,352	)
AFFO Attributable to Common Shareholders	$	19,488		$	19,388		$	58,771		$	59,583

The following are the Cash Flows provided (used) by Operating, Investing and Financing Activities for the nine months ended June 30, 2020 and 2019 (in thousands):

	Nine Months Ended
		6/30/2020			6/30/2019
Operating Activities	$	74,932		$	74,753
Investing Activities		(163,049	)		(185,336	)
Financing Activities		80,042			114,890

# # # # #

    THIRD QUARTER FISCAL YEAR 2020 SUPPLEMENTAL INFORMATION 25