Monmouth Real Estate Investment Corporation A Public REIT Since 1968

Transcription

1 Monmouth Real Estate Investment Corporation A Public REIT Since 1968 January 2019 Investor Presentation NYSE: MNR

2 This presentation may contain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, Section 21E of the Securities Exchange Act of 1934, as amended. Forward-looking statements provide Monmouth Real Estate Investment Corporation s current expectations or forecasts of future events. Forward-looking statements include statements about Monmouth s expectations, beliefs, intentions, plans, objectives, goals, strategies, future events, performance and underlying assumptions and other statements that are not historical facts. You can identify forward-looking statements by their use of forward-looking words, such as may, will, anticipate, expect, believe, intend, plan, should, seek, or comparable terms, or the negative use of those words, but the absence of these words does not necessarily mean that a statement is not forward-looking. The forward-looking statements are based on Monmouth s beliefs, assumptions and expectations of its future performance, taking into account all information currently available to it. Forward-looking statements are not predictions of future events. These beliefs, assumptions and expectations can change as a result of many possible events or factors, not all of which are known to Monmouth. Some of these factors are described under the headings Risk Factors and Management s Discussion and Analysis of Financial Condition and Results of Operations as included in Monmouth s Annual Report on Form 10-K for the fiscal year ended September 30, 2018 and its other periodic reports filed with the Securities and Exchange Commission, which are accessible on SEC s Electronic Data Gathering, Analysis and Retrieval website, or EDGAR at These factors should not be construed as exhaustive and should be read in conjunction with other cautionary statements that are included in this presentation and in Monmouth s SEC filings. These and other risks, uncertainties and factors could cause Monmouth s actual results to differ materially from those included in any forward-looking statements it makes. Any forward-looking statement speaks only as of the date on which it is made. New risks and uncertainties arise over time, and it is not possible for Monmouth to predict those events or how they may affect it. Except as required by law, Monmouth is not obligated to, and does not intend to, update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. You should not place undue reliance on these forward-looking statements, as events described or implied in such statements may not occur. This presentation may include references to FFO, Core FFO and AFFO, which are non-gaap financial measures. A reconciliation of FFO, Core FFO and AFFO to the most comparable GAAP financial measures is included in our most recent Annual Report on Form 10-K and/or our Supplemental Information package as of September 30, 2018, furnished to shareholders on Form 8-K, and is available on our website at 2

3 Select Properties Indianapolis MSA Oklahoma City MSA Phoenix MSA Kansas City MSA Lexington MSA 3

4 Company Overview Single tenant, net-leased Industrial REIT specializing in well-located, modern properties subject to long-term leases primarily to investment grade tenants or their subsidiaries Property portfolio contains 21.6 million square feet, consisting of 113 properties with 98.9% occupancy Geographically diversified portfolio across 30 states with a focus on major seaports, major intermodal ports, and major airports Quality roster of investment grade tenants 80% of rental revenue from investment grade tenants or their subsidiaries, including Amazon, Anheuser Busch, Beam Suntory, Coca-Cola, FedEx, Home Depot, International Paper, National Oilwell, Shaw Industries, Sherwin-Williams, Siemens, United Technologies and other high-quality companies Strong recent growth Monmouth successfully grew GLA by approximately 100% during the past five years In fiscal 2018, closed on seven properties with approximately 2.7 million square feet for $282.3 million Thus far in fiscal 2019, closed on two properties totaling approximately 474,000 square feet for $113.1 million Current acquisition pipeline includes one property containing approximately 269,000 square with a total purchase price of $40.9 million Conservative capital structure 34.9% Net Debt to Total Market Capitalization 7.1x Net Debt/Adjusted EBITDA 2.4x Fixed Charge Coverage 11.7 years Weighted Average Debt Maturity Indianapolis MSA Memphis MSA Source: MNR 10-K and subsequent press releases 4

5 Portfolio Overview 113 properties geographically diversified across 30 states, totaling approximately 21.6 million square feet of GLA Highest occupancy rate in the Industrial REIT sector at 98.9% Currently in our fourth consecutive year of above 98% occupancy Most modern industrial property portfolio Youngest weighted average building age in the Industrial REIT sector at 8.6 years Average building size is approximately 192,000 square feet Weighted average lease maturity is 8.0 years Weighted average rent per square foot is $6.22 Simple business model No off-balance sheet joint ventures No in-house development division No significant non-income producing land 100.0% 99.0% 98.0% 97.0% 96.0% 95.0% 94.0% 93.0% 92.0% 91.0% 90.0% Consistent Results Occupancy 99.6% 99.6% 99.3% 98.9% 97.7% 96.0% 95.9% FY 2013 FY 2014 FY 2015 FY 2016 FY 2017 FY 2018 Current Tenant Retention 100.0% 90.0% 80.0% 70.0% 60.0% 50.0% 40.0% 30.0% 20.0% 10.0% 0.0% 100.0% 100.0% 100.0% 86.0% 93.0% 92.0% 69.0% 53.0% FY 2011 FY 2012 FY 2013 FY 2014* FY 2015 FY 2016 FY 2017 FY 2018** Charlotte MSA Source: MNR 10-K and subsequent press releases * Only 438,000 square feet, representing 4% of total GLA, came due in fiscal ,400 sf of the 208,400 sf that did not renew was re-tenanted. ** Three buildings containing 184,000 total square feet, or 12% of the expiring square footage were sold and one building containing 218,000 square feet, or 14% of the expiring square footage was re-tenanted. 5

6 Portfolio Growth Total GLA Total Square Feet (in Millions) FY 2013 FY 2014 FY 2015 FY 2016 FY 2017 FY 2018 FY 2019E Total Real Estate Assets Total Real Estate Assets ($ in Billions) $2.0 $1.8 $1.6 $1.4 $1.2 $1.0 $0.8 $0.6 $0.4 $0.628 Source: MNR 10-K and subsequent press releases $0.744 $0.941 $1.171 FY 2013 FY 2014 FY 2015 FY 2016 FY 2017 FY 2018 FY 2019E $1.432 $1.720 $

7 Capital Structure $3.0 $2.5 Total Market Capitalization ($ in Billions) $2.0 $1.5 $1.0 $0.5 $0.0 FY 2013 FY 2014 FY 2015 FY 2016 FY 2017 FY 2018 Source: MNR 10-K and subsequent press releases Common Equity Preferred Equity Debt 7

8 Financial Highlights Gross Revenue Gross Revenue has grown at an average annual rate of 22% over the past five years $ in Millions $170 $150 $130 $110 $90 $70 $50 $30 $10 $0.90 $0.80 $0.70 $0.60 $0.50 $0.40 $0.30 $0.20 $0.10 $0.00 Source: MNR 10-K and subsequent press releases + 19% + 27% + 19% Adjusted Funds from Operations per Share AFFO per share has grown at an average annual rate of 14% over the past five years + 10% + 23% % + 23% + 14% 8

9 Ecommerce Trends and MNR s Portfolio The entire retail industry continues to shift its focus from traditional brick and mortar stores to ecommerce platforms which has led to significant demand for large, modern industrial distribution centers U.S. ecommerce sales are expected to increase to over $525 billion in 2018 Excluding food, fuel, and auto, ecommerce represents approximately 16% of total U.S. retail sales Monmouth was early in anticipating consumer spending s shift from traditional stores to internet sales Today, Monmouth s vast FedEx holdings represent an integral part of the ecommerce ecosystem ECommerce Sales $600 CAGR: 16.0% $500 $ in Billions $400 $300 $200 $100 $- Source: U.S. Census Bureau E 9

10 Global Retail Sales Global consumer habits continue to change resulting in ever greater market share taking place online Global ecommerce sales are expected to rise to $2.4 trillion this year Online Sales (LHS) In-Store Sales (LHS) % Online (RHS) 9% 8% 7% 6% $ in Trillions 10 5% 4% 5 3% 2% 1% 0 0% 2000 Source: Goldman Sachs E 10

11 The Golden Triangle It s All about Logistics! Remaking the Supply-Chain A GREAT story for Mid-Central & SE U.S. The GDP Golden Triangle Q. What is it about the Golden Triangle that makes it tops in GDP, Logistics & Supply-Chain? A. Best Freightways! MREIC s Portfolio: 87 of 113 properties are located within the Golden Triangle The Golden Mfg & Logistics Triangle: SE 22%) + SW + Great lakes = 47% US GDP Source: K.C. Conway, Director of Research, Chief Economist, Alabama Center for Real Estate 11

12 Portfolio Markets & Panama Canal Expansion Monmouth s acquisition pipeline currently comprises one new build-to-suit industrial property containing approximately 269,000 square feet, which is leased to FedEx Ground, with a purchase price of $40.9 million Over 70% of the U.S. population lives east of the Mississippi River Following nine years of construction costing $5.4 billion, the Panama Canal expansion project opened on June 26, 2016 North American ports have been spending billions of dollars in order to prepare for these larger ships These ships have more than twice the cargo capacity of the older ships The expanded Panama Canal allows larger vessels an approximate 29 day shorter transit time from the Atlantic to the Pacific oceans Container traffic has been rapidly shifting to the East Coast ports Eastern Coastal East Coast Inland Gulf coast & Mississippi valley Non-impacted markets Existing Properties Acquisitions Under Contract Source: MNR 10-K, subsequent press releases, Parsons Brinckerhoff Panama Canal Expansion Study, June 2012; Panama Canal Authority, Canal Expansion Programs Components Report April 2012, Washington Post: Modernization of the Panama Canal ; January

13 Expanded Panama Canal Changes the Balance Following the close of its September 30, 2017 fiscal year, Panama canal authorities announced that the entrepot welcomed a record million tons the largest amount of annual volume ever transited in its 103-year history. Industry analysts say the impact on U.S. ocean cargo gateways will soon become evident. According to its latest throughput figures, the Panama Canal transited a total of 13,548 vessels during its fiscal year 2017, representing a 3.3% increase compared to totals the year before. Thanks to the larger Neopanamax vessels now able to transit the expanded Canal, the growth in traffic translated into a 22.2% increase in total annual tonnage from 2016, and helped the Panama Canal surpass the already ambitious cargo projection of reaching 399 million tons. These record figures reflect not only the industry s confidence in the expanded Canal, but also illustrate our continued ability to transform the global economy and revitalize the maritime industry, says Jorge Quijano, Panama Canal administrator. The Panama Canal currently serves 29 major liner services, including 15 Neopanamax liner services, primarily on the U.S. East Coast to Asia trade route. Chris Rogers, an analyst with the global trade consultancy Panjiva, notes that the diversion of Asian-inbound traffic from U.S. West Coast ports to those on the East Coast took a step forward with Panama Canal expansion. Data shows shipments to Southeast ports increased by 26.9 % over FY 2016, while those to California increased by a more modest 7.7 % (Source: Chris Rogers with Panjiva). update_part_1_expanded_panama_canal_chang es_the_balance Source: K.C. Conway, Director of Research, Chief Economist, Alabama Center for Real Estate 13

14 SE & VA TEU Growth is Unmatched SC had 45% TEU Container Growth SE MidAtlantic Ports growing 3X-4X West coast Ports Source: K.C. Conway, Director of Research, Chief Economist, Alabama Center for Real Estate 14

15 High Quality Tenant Base Largest Percentage of Investment Grade Tenants in the REIT Sector 80% of rental revenue is from investment grade tenants or subsidiaries Higher investment grade tenant base than any other REIT Rental roster includes Amazon, Anheuser Busch, Beam Suntory, Coca-Cola, FedEx, Home Depot, International Paper, Keurig Dr Pepper, Milwaukee Tool, National Oilwell, Shaw Industries, Sherwin Williams, Siemens, Snap-on, ULTA, United Technologies and other high quality companies Monmouth began investing in properties leased to FedEx in 1994 Recent acquisitions include five properties consisting of an additional 1.2 million square feet leased to FedEx Fifteen FedEx expansion projects completed since Fiscal 2014, increasing the rent and lease terms of these facilities Source: MNR 10-K and subsequent press releases 15

16 High Quality Tenants Annual Rent by Tenant Square Footage by Tenant Jim Beam Brands, 1.5% B. Braun Medical, 1.6% Remaining Tenants, 23.9% Remaining Tenants, 29.6% FedEx Ground, 41.2% TreeHouse, 1.7% FedEx Ground, 53.6% International Paper, 1.9% ULTA, 2.0% Milwaukee Tool, 2.3% Shaw Industries, 2.6% Amazon.com Services, 2.9% FedEx Express, 6.0% TreeHouse, 2.6% International Paper, 2.7% Jim Beam Brands, 2.8% Amazon.com Services, 3.1% ULTA, 3.1% Shaw Industries, 3.8% Milwaukee Tool, 4.0% FedEx Express, 7.1% FDX and its subsidiaries represent 59.6% of Annual Rent FDX and its subsidiaries represent 48.3% of Square Footage Source: MNR 10-K and subsequent press releases 16

17 Geographic Focus Our 21.6 million square foot portfolio is well diversified across 30 states Annual Rent by State Square Footage by State Florida, 11.7% Florida, 10.2% Texas, 8.2% Texas, 10.3% Remaining States, 34.6% Remaining States, 36.2% Georgia, 7.6% Georgia, 7.8% Ohio, 7.2% South Carolina, 7.1% Kentucky, 3.8% Michigan, 4.2% North Carolina, 4.2% Illinois, 4.6% Ohio, 6.7% New Jersey, 5.0% North Carolina, 4.3% Illinois, 4.4% Indiana, 4.6% Mississippi, 5.4% Kentucky, 6.0% South Carolina, 5.9% Source: MNR 10-K and subsequent press releases 17

18 Summary Portfolio Metrics Current Occupancy (1) Rate 100.0% 98.0% 96.0% 94.0% 92.0% 90.0% 98.9% 98.5% 97.6% 97.1% 96.9% 96.9% 95.4% 94.0% MNR TRNO FR EGP DRE PLD STAG PSB Highest occupancy rate in the sector Average Building Age (in Years) (2) Youngest portfolio among peers - MNR DRE EGP PLD FR STAG TRNO Rent Roll (% next 3 years by base revenues) 60.0% 50.0% 40.0% 30.0% 20.0% 10.0% 0.0% 11.8% 30.5% 42.2% 44.4% 44.5% 46.8% 51.7% 52.1% MNR DRE TRNO PLD STAG FR EGP PSB Limited near term rent roll Source: SNL Financial (1) Occupancy for MNR and peers based on SEC reports available as of 12/31/18. (2) On a per square foot weighted average basis, MNR s portfolio is 8.6 years old. This chart uses simple average instead of weighted average for comparative purposes because some of our peers do not publish weighted average. 18

19 Fiscal 2018 Acquisitions Monmouth has completed over $1 billion in acquisitions and more than doubled portfolio GLA over the past five years In fiscal 2018, Monmouth acquired seven industrial properties, of which 85% are net leased to investment grade tenants or their subsidiaries for approximately $282.3 million, containing approximately 2.7 million square feet Thus far in fiscal 2019, Monmouth acquired two properties containing approximately 474,000 square feet for $113.1 million Monmouth s acquisition pipeline currently contains approximately 269,000 square feet, consisting of a new build-to-suit property, which is leased to FedEx Ground with a purchase price of $40.9 million Fiscal 2018 Acquisitions Subsequent to FY2018 Charleston, SC Oklahoma City, OK Savannah, GA Daytona Beach, FL Mobile, AL Charleston, SC Atlanta, GA Trenton, NJ Savannah, GA Tenant: Credit Rating: (S&P/Moody s) BBB/Baa2 AA-/Baa1 AA/Aa2 NR AA-/Baa1 BBB/Baa2 BBB/Baa2 BBB/Baa2 BBB/Baa2 Year Built: Size (sf): 121, , , , , , , , ,520 Acres: Purchase Price: $21,872,170 $30,250,000 $57,483,636 $30,750,540 $33,688,276 $47,174,296 $61,113,264 $85,248,352 $27,832,780 Price/SF: $ $ $69.11 $76.98 $92.82 $ $ $ $ Lease Maturity: 8/31/ /31/2027 9/30/2027 4/1/ /30/2028 6/30/2033 2/28/2033 6/30/ /31/2028 Annualized Rental Revenue: Source: MNR 10-K and subsequent press releases $1,315,000 $1,884,000 $3,551,000 $2,130,000 $2,020,000 $2,713,000 $3,801,000 $5,328,000 $1,755,000 19

20 Select Recent Acquisitions FedEx Ground Orlando, FL MSA 310,922 sf Walmart has recently constructed two large ecommerce fulfillment centers (one on each side of our FedEx facility) totaling 2.35 million square feet, illustrating the strong demand for our locations. Source: MNR 10-K and subsequent press releases 20

21 The Changing of The Guard The Big Town Mall was for many years the largest mall in Texas, and today Before Source: MNR 21

22 The Changing of The Guard This large 65 acre parcel situated six miles east of downtown Dallas is now the site of Monmouth s new 352,000 sf FedEx facility. After Source: MNR 22

23 Select Recent Acquisitions (continued) ULTA Ecommerce Fulfillment Center Indianapolis, IN MSA 671,354 sf GE CATA (Center for Additive Technology Advancement) Pittsburgh, PA MSA 125,860 sf Source: MNR 10-K and subsequent press releases 23

24 Acquisition Pipeline Our acquisition pipeline consists of one property comprising approximately 269,000 square feet with a purchase price of $40.9 million Lease commences in the first half of fiscal 2020 Acquisition included in the pipeline has a lease maturity of 15 years Monmouth actively looks for new built-to-suit opportunities near already owned FedEx facilities Six FedEx expansion projects completed within the last two years with a total cost of $12.4 million as well as a 250,000 sf expansion for Milwaukee Tool at a total cost of $9.8 million These expansions resulted in extending the weighted average lease terms by approximately 11 years and produced approximately 10% returns on cost from increased rents Monmouth maintains excellent relationships with top merchant builders Built-to-Suit Built-to-Suit Infrastructure Installation Source: MNR 10-K and subsequent press releases Built-to-Suit 24

25 Lease Expirations Are Well Dispersed Minimal rent roll down risk observed on lease renewals Weighted average lease maturity currently at 8.0 years Weighted average rent per occupied square foot of $6.22 National average rent psf for industrial real estate currently is $6.11 and trending higher 3,000 sq. ft. Monmouth historically averages approximately 90% annual tenant retention: 100% renewed in Fiscal 2015 and 2016, 92% renewed in Fiscal 2017, and 69% in Fiscal 2018 Expiring square footage ( 000 s) Average rent per occupied square foot of expiring square footage above each bar Expiring Square Footage (000 s) 2,500 sq. ft. 2,000 sq. ft. 1,500 sq. ft. 1,000 sq. ft. $4.57 $5.68 $5.71 $6.35 $5.13 $8.08 $5.47 $5.40 $5.57 $7.10 $7.41 $ sq. ft. $5.54 $5.59 $10.15 $ sq. ft Fiscal Year GLA 2.4% 1.8% 5.6% 5.3% 7.7% 7.3% 11.1% 4.5% 10.6% 11.9% 6.0% 4.8% 4.4% 9.6% 3.0% 2.6% ABR 2.2% 1.6% 4.1% 4.8% 7.1% 7.5% 9.2% 5.9% 9.4% 10.3% 5.4% 5.5% 5.3% 13.8% 4.8% 1.7% (1) In fiscal 2019, approximately 1.5 million square feet was originally set to expire, out of which 802,595 square feet has thus far been renewed. This bar represents the 681,395 square feet still remaining to be renewed. Source: MNR 10-K and subsequent press releases, GLA: Gross Leasable Area, ABR: Annual Base Rent 25

26 Favorable US Industrial Fundamentals Current economic indicators are very favorable for the US industrial real estate sector and Monmouth s portfolio due to: Rising GDP Rampant growth in ecommerce Limited new construction over the past 8 years Manufacturing growth due to increased domestic energy production Continued benefits from the recently completed Panama Canal expansion US Industrial Construction (000 s) US Industrial Occupancy 400, , , , % 95% 95.6% 100,000 90% % US Cap Rates 85% % 6% 5.0% Source: CBRE Research & Green Street 4%

27 Securities Portfolio Historic Performance (Fiscal Year) $50 $45 $40 $35 $30 $25 $20 $15 $10 $5 $0 Dividend Income ($ in Millions) $5.4 $8.5 $12.4 $16.2 $19.9 $25.6 $32.5 $45.6 $2.4 $3.0 $3.1 $3.9 $3.9 $3.7 $5.6 $6.9 $ $35 $30 $25 $20 $15 $10 $5 $0 Net Realized Gains ($ in Millions) $7.8 $13.9 $21.0 $23.2 $24.0 $28.4 $30.7 $30.8 $2.6 $5.2 $6.0 $7.1 $2.2 $0.8 $4.4 $2.3 $ Annual Amount Cumulative Amount since 2010 Annual Amount Cumulative Amount since 2010 Fiscal Year Securities Portfolio Cost (1) Securities Available for Sale (1) Dividend Income Net Realized Gain on Sale of Securities Change in Unrealized Gain/(Loss) (2) Total Return Total Return % 2010 $24,027,834 $27,824,665 $2,387,757 $2,609,149 $6,319,226 $11,316, ,401,668 42,517,725 2,981,534 5,238,203 (7,747,894) 471, ,896,896 44,265,059 3,144,837 6,044,065 3,015,774 12,204, ,301,236 61,685,173 3,861,374 7,133,252 (3,394,669) 7,599, ,462,472 45,451,740 3,863,136 2,166,766 (1,867,912) 4,161, ,190,047 59,311,403 3,707, ,513 (5,562,959) (1,049,948) ,982,840 54,541,237 5,607,403 4,398,599 18,383,870 28,389, ,662,627 73,604,894 6,919,973 2,311,714 (6,371,702) 2,859, ,194, ,764,770 13,099, ,387 (31,315,144) (18,104,441) Total $45,572,828 $30,818,648 $(28,541,410) $47,850,066 Avg % (1) Fiscal Year beginning balance (2) Fiscal Year end balance Source: MNR 10-K and subsequent press releases. 27

28 Securities Portfolio Historic Performance (continued) Total Return MREIC RMS S&P % 131.5% 118.8% FISCAL YEAR MREIC REIT Portfolio (%) MSCI REIT Index (RMS)(%) S&P 500 Index (%) MREIC vs. MSCI REIT Index (RMS) Outperformance in BPS MREIC vs. S&P 500 Index Outperformance in BPS Average Source: MNR 10-K, subsequent press releases and SNL Financial as of 9/30/18. 28

29 Conservative Balance Sheet Conservative capital structure 34.9% Net Debt to total market capitalization 7.1x Net Debt/Adjusted EBITDA 2.4x fixed charge coverage 79% fixed rate debt, weighted average interest rate of 4.1% Limited debt maturities each year through % of debt consists of modest LTV asset level mortgage financing Weighted average mortgage maturity of 11.7 years, representing one of the longest debt maturity schedules in the REIT sector $354.2 million in potential liquidity $154.9 million in REIT marketable securities $90.0 million available on our $200 million unsecured revolving line of credit, plus an additional $100 million potentially available on an accordion feature $9.3 million in cash Subsequent to fiscal yearend, completed our first Common Stock offering since 2014, with the sale of 9.2 million shares generating gross proceeds of $138 million Total Market Capitalization (1) Total Shares Outstanding (9/30/18) 81,503,134 Stock Price (9/30/18) $16.72 Equity Market Capitalization $1,362.7 Mortgage Notes Payable Loans Payable Total Debt $898.1 Total Preferred Total Market Capitalization $2,548.1 $500 $450 $400 Loans Payable Mortgages Debt Maturities Debt, 35% Preferred, 11% Equity, 54% 48.4% $350 Total Debt ($ in Millions) $300 $250 $200 $ % $100 $50 9.6% 5.5% 7.9% 5.6% Dallas MSA $ Thereafter Source: MNR 10-K and subsequent press releases (1) All dollar amounts except stock price are in millions % of Total Debt Outstanding 29

30 Long Term Cash Dividend Monmouth has maintained or increased its dividend for 27 consecutive years On October 2, 2017, Monmouth increased its dividend by 6.25% to $0.68 per year, marking our second dividend increase in 3 years. These 2 dividend increases total 13% Current AFFO dividend payout ratio is a conservative 77% Monmouth was one of the only REITs that maintained its dividend throughout the Great Recession 100% cash dividends since inception Dividends Per Share $0.70 $0.68 $0.68 $0.68 $0.66 $0.64 $0.64 $0.64 $0.62 $0.60 $0.58 $0.57 $0.58 $0.58 $0.58 $0.58 $0.58 $0.58 $0.60 $0.60 $0.60 $0.60 $0.60 $0.60 $0.60 $0.60 $0.60 $0.60 $0.56 $0.54 $0.52 $ E Source: SNL Financial 30

31 Peer Analysis 7.0% 6.0% 5.0% 4.0% 3.0% 2.0% 1.0% 0.0% Dividend Yield 5.9% 5.7% 3.4% 3.4% 3.3% 3.3% 3.1% 2.8% STAG MNR DRE PLD PSB EGP FR TRNO 2018E FFO Multiple Total Debt/Total Market Capitalization 40.0% 35.0% 35.25% 30.0% 28.8% 25.0% 26.5% 25.0% 20.0% 19.8% 19.8% 19.2% 15.0% 10.0% 5.0% 2.4% 0.0% MNR STAG EGP FR DRE PLD TRNO PSB 2018E FFO Payout Ratio 30.0x 25.0x 20.0x 15.0x 10.0x 26.7x 20.4x 19.6x 19.4x 19.4x 17.6x 13.9x 13.1x 90.0% 80.0% 70.0% 60.0% 50.0% 40.0% 30.0% 79.4% 72.9% 71.7% 65.3% 64.4% 63.6% 61.7% 54.7% 5.0x 0.0x TRNO PSB EGP PLD DRE FR STAG MNR 20.0% 10.0% 0.0% STAG TRNO MNR PSB DRE PLD EGP FR Source: SNL Financial as of 12/31/18 NOTE: MNR peers include DRE, EGP, FR, PLD, PSB, STAG and TRNO 31

32 Total Return Performance Monmouth is one of the top performing REITs over a 2, 10 and 20 year period Slide utilizes 12 year period to illustrate long term performance including during the Global Financial Crisis 12Year MNR Peer Group RMS % 62.77% 49.86% 12/31/2006 4/30/2007 8/31/ /31/2007 4/30/2008 8/31/ /31/2008 4/30/2009 8/31/ /31/2009 4/30/2010 8/31/ /31/2010 4/30/2011 8/31/ /31/2011 4/30/2012 8/31/ /31/2012 4/30/2013 8/31/ /31/2013 4/30/2014 8/31/ /31/2014 4/30/2015 8/31/ /31/2015 4/30/2016 8/31/ /31/2016 4/30/2017 8/31/ /31/2017 4/30/2018 8/31/ /31/2018 Source: SNL Financial as of 12/31/18 Dividend Yield 7.0% 6.0% 5.9% 5.7% 5.0% 4.0% 3.4% 3.4% 3.3% 3.3% 3.1% 3.0% 2.8% 2.0% 1.0% 0.0% STAG MNR DRE PLD PSB EGP FR TRNO 32

33 Key Investment Highlights Best-in-Class Single Tenant Net-Lease Industrial Portfolio Geographically Diversified with a High Quality Tenant Base Demonstrated Portfolio, Earnings, and Dividend Growth Conservative Balance Sheet Experienced & Aligned Management Team with 6% Ownership Well Positioned for Future Growth 33

34 Monmouth Real Estate Investment Corporation