Monmouth Real Estate (NYSE: MNR) reported Q4 EPS of $0.06, $0.02 better than the analyst estimate of $0.04. Revenue for the quarter came in at $36.17 million versus the consensus estimate of $36.2 million.

• Net Loss Attributable to Common Shareholders for the three months ended September 30, 2020 was $3.9 million or $0.04 per diluted share as compared to Net Income Attributable to Common Shareholders $22.7 million or $0.24 per diluted share for the three months ended September 30, 2019, representing a decrease of $0.28 per share.
• Excluding all non-cash unrealized gains (losses), our Net Income Attributable to Common Shareholders for the three months ended September 30, 2020 would have been $6.4 million or $0.06 per diluted share, representing a decrease of $0.03 per share from the three months ended September 30, 2019.

Michael P. Landy, President and CEO, commented on the results for fiscal year 2020,

“During fiscal 2020, we grew our gross leasable area (GLA) by 5% through the acquisition of five brand-new Class A built-to-suit properties all leased long-term to investment-grade tenants, for an aggregate cost of $175.1 million. As of September 30, 2020, our property portfolio had a weighted-average building age of 9.8 years, and a weighted-average lease maturity of 7.1 years. We have assembled a high quality modern industrial portfolio that contains excess land to accommodate future growth. These are highly-automated industrial assets that are mission-critical to our tenants’ operations. The quality of our portfolio is evidenced by our current sector-leading 99.4% occupancy rate as well as our ability to achieve uninterrupted rent collections which averaged 99.7% throughout these challenging times.”

“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. While it is still early in our new fiscal year, to date we have renewed four of the ten leases that are set to expire in fiscal 2021, representing 44% of the amount up for renewal. These lease renewals have a weighted average lease term of 3.2 years, and a weighted average lease rate of $4.46 per square foot on a GAAP basis and $4.38 per square foot on a cash basis. This represents an increase of 8.0% on a GAAP basis and an increase of 1.9% on a cash basis.”

“During the fiscal year, we raised $26.4 million in equity capital through our Dividend Reinvestment and Stock Purchase Plan. Of this amount, a total of $7.6 million in dividends were reinvested by our shareholders, representing an 11% participation rate. We also sold 5.0 million shares of our 6.125% Series C Preferred Stock through our ATM program generating net proceeds of $122.4 million. In addition, we replaced our $200.0 million unsecured line of credit with a new $225.0 million unsecured line of credit and a new $75.0 million Term Loan. This new facility provides us with increased borrowing capacity while reducing our borrowing rates and extending our term. Including the accordion feature, our new facility provides for up to $400.0 million in total borrowing capacity. Our line of credit has nothing borrowed at this time. Looking ahead, Monmouth is very well capitalized to continue to execute our growth strategy.”

“Our high-quality acquisition pipeline now comprises six brand new build-to-suit, industrial buildings that are currently being developed in Alabama (2), Georgia, Ohio, Tennessee and Vermont. All six highly-automated properties will be leased to investment-grade tenants. These six pipeline transactions total approximately 2.4 million square feet for an aggregate purchase price of $338.4 million with a weighted-average lease term of 15.3 years. Five of these acquisitions are scheduled to close during fiscal 2021 and one is scheduled to close during fiscal 2022. We have locked in financing for three of these six acquisitions with three, fully-amortizing mortgage loans totaling $139.5 million with a weighted average fixed interest rate of 2.99% and a weighted average term of 15.8 years.”

“Ecommerce demand has soared during the COVID-19 Pandemic. Our two largest tenants, FedEx and Amazon are experiencing record shipments. We are working with our tenants on several parking expansion projects in order to increase their home delivery capabilities. One of these parking expansions was completed earlier this month for $3.4 million, resulting in increased annualized rent of $349,000. While our reported results for fiscal year 2020 were negatively impacted by a reduction in Dividend Income from our securities investments, we expect our large acquisition pipeline and property expansions to positively contribute to per share earnings and cash flow going forward.”

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