Exhibit 99
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.
(in thousands except for per share amounts)
As of | As of | |||||||
March 31, | September 30, | |||||||
2021 | 2020 | |||||||
(unaudited) | ||||||||
ASSETS | ||||||||
Real Estate Investments: | ||||||||
Land | $ | 266,794 | $ | 250,497 | ||||
Buildings and Improvements | 1,945,880 | 1,793,367 | ||||||
Total Real Estate Investments | 2,212,674 | 2,043,864 | ||||||
Accumulated Depreciation | (321,047 | ) | (296,020 | ) | ||||
Real Estate Investments | 1,891,627 | 1,747,844 | ||||||
Cash and Cash Equivalents | 19,383 | 23,517 | ||||||
Securities Available for Sale at Fair Value | 131,654 | 108,832 | ||||||
Tenant and Other Receivables | 2,735 | 5,431 | ||||||
Deferred Rent Receivable | 14,383 | 12,856 | ||||||
Prepaid Expenses | 13,206 | 7,554 | ||||||
Intangible Assets, net of Accumulated Amortization of $18,461 and $17,330, respectively | 20,563 | 16,832 | ||||||
Capitalized Lease Costs, net of Accumulated Amortization of $4,893 and $4,286, respectively | 5,600 | 5,631 | ||||||
Financing Costs, net of Accumulated Amortization of $551 and $356, respectively | 1,185 | 1,380 | ||||||
Other Assets | 8,080 | 9,906 | ||||||
TOTAL ASSETS | $ | 2,108,416 | $ | 1,939,783 | ||||
LIABILITIES AND SHAREHOLDERS’ EQUITY | ||||||||
Liabilities: | ||||||||
Fixed Rate Mortgage Notes Payable, net of Unamortized Debt | ||||||||
Issuance Costs | $ | 866,224 | $ | 799,507 | ||||
Loans Payable | 75,000 | 75,000 | ||||||
Accounts Payable and Accrued Expenses | 4,642 | 3,998 | ||||||
Other Liabilities | 26,450 | 23,673 | ||||||
Total Liabilities | 972,316 | 902,178 | ||||||
COMMITMENTS AND CONTINGENCIES | ||||||||
Shareholders’ Equity: | ||||||||
6.125% Series C Cumulative Redeemable Preferred Stock, $0.01 Par Value Per Share: 26,600 and 21,900 Shares Authorized as of March 31, 2021 and September 30, 2020, respectively; 21,986 and 18,880 Shares Issued and Outstanding as of March 31, 2021 and September 30, 2020, respectively | 549,640 | 471,994 | ||||||
Common Stock, $0.01 Par Value Per Share: 300,000 and 200,000 Shares Authorized as of March 31, 2021 and September 30, 2020, respectively; 98,301 and 98,054 Shares Issued and Outstanding as of March 31, 2021 and September 30, 2020, respectively | 983 | 981 | ||||||
Excess Stock, $0.01 Par Value Per Share: 200,000 Shares Authorized as of March 31, 2021 and September 30, 2020; No Shares Issued or Outstanding as of March 31, 2021 and September 30, 2020 | -0- | -0- | ||||||
Additional Paid-In Capital | 588,049 | 568,998 | ||||||
Accumulated Other Comprehensive Loss | (2,572 | ) | (4,368 | ) | ||||
Undistributed Income | -0- | -0- | ||||||
Total Shareholders’ Equity | 1,136,100 | 1,037,605 | ||||||
TOTAL LIABILITIES & SHAREHOLDERS’ EQUITY | $ | 2,108,416 | $ | 1,939,783 |
SECOND quarter Fiscal year 2021 supplemental information | 3 |
Consolidated Statements of Income (Loss)
(unaudited) (in thousands)
For The | For The | |||||||||||||||
Three Months Ended | Six Months Ended | |||||||||||||||
3/31/2021 | 3/31/2020 | 3/31/2021 | 3/31/2020 | |||||||||||||
INCOME: | ||||||||||||||||
Rental Revenue | $ | 39,246 | $ | 35,114 | $ | 76,091 | $ | 69,983 | ||||||||
Reimbursement Revenue | 7,119 | 6,594 | 13,856 | 13,424 | ||||||||||||
Lease Termination Income | -0- | -0- | 377 | -0- | ||||||||||||
TOTAL INCOME | 46,365 | 41,708 | 90,324 | 83,407 | ||||||||||||
EXPENSES: | ||||||||||||||||
Real Estate Taxes | 5,604 | 5,029 | 10,922 | 10,064 | ||||||||||||
Operating Expenses | 2,039 | 1,634 | 3,775 | 3,831 | ||||||||||||
General & Administrative Expenses | 2,091 | 2,396 | 4,117 | 4,660 | ||||||||||||
Non-recurring Strategic Alternative & Proxy Costs | 1,993 | -0- | 2,239 | -0- | ||||||||||||
Non-recurring Severance Expense | -0- | -0- | -0- | 786 | ||||||||||||
Depreciation | 13,064 | 11,475 | 25,141 | 22,907 | ||||||||||||
Amortization of Capitalized Lease Costs and Intangible Assets | 879 | 767 | 1,687 | 1,521 | ||||||||||||
TOTAL EXPENSES | 25,670 | 21,301 | 47,881 | 43,769 | ||||||||||||
OTHER INCOME (EXPENSE): | ||||||||||||||||
Dividend Income | 1,587 | 3,404 | 3,195 | 6,642 | ||||||||||||
Realized Gain On Sale of Securities Transactions | 2,248 | -0- | 2,248 | -0- | ||||||||||||
Unrealized Holding Gains (Losses) Arising During the Periods | 19,186 | (83,075 | ) | 38,906 | (86,710 | ) | ||||||||||
Interest Expense, including Amortization of Financing Costs | (9,387 | ) | (9,050 | ) | (18,546 | ) | (18,259 | ) | ||||||||
TOTAL OTHER INCOME (EXPENSE) | 13,634 | (88,721 | ) | 25,803 | (98,327 | ) | ||||||||||
NET INCOME (LOSS) | 34,329 | (68,314 | ) | 68,246 | (58,689 | ) | ||||||||||
Less: Preferred Dividends | 8,416 | 6,764 | 16,587 | 12,862 | ||||||||||||
NET INCOME (LOSS) ATTRIBUTABLE TO COMMON SHAREHOLDERS | $ | 25,913 | $ | (75,078 | ) | $ | 51,659 | $ | (71,551 | ) |
SECOND quarter Fiscal year 2021 supplemental information | 4 |
FFO, AFFO and Adjusted EBITDA Reconciliations
(unaudited) (in thousands)
For The | For The | |||||||||||||||
Three Months Ended | Six Months Ended | |||||||||||||||
3/31/2021 | 3/31/2020 | 3/31/2021 | 3/31/2020 | |||||||||||||
FFO, AFFO | ||||||||||||||||
Net Income (Loss) Attributable to Common Shareholders | $ | 25,913 | $ | (75,078 | ) | $ | 51,659 | $ | (71,551 | ) | ||||||
Less/Plus: Unrealized Holding (Gains) Losses Arising During the Periods | (19,186 | ) | 83,075 | (38,906 | ) | 86,710 | ||||||||||
Plus: Depreciation Expense (excluding Corporate Office Capitalized Costs) | 13,007 | 11,409 | 25,026 | 22,788 | ||||||||||||
Plus: Amortization of Intangible Assets | 600 | 508 | 1,132 | 1,016 | ||||||||||||
Plus: Amortization of Capitalized Lease Costs | 305 | 285 | 606 | 557 | ||||||||||||
FFO Attributable to Common Shareholders | 20,639 | 20,199 | 39,517 | 39,520 | ||||||||||||
Plus: Depreciation of Corporate Office Capitalized Costs | 57 | 66 | 116 | 118 | ||||||||||||
Plus: Stock Compensation Expense | 77 | 114 | 134 | 270 | ||||||||||||
Plus: Amortization of Financing Costs | 346 | 322 | 676 | 758 | ||||||||||||
Plus: Non-recurring Strategic Alternative & Proxy Costs | 1,993 | -0- | 2,239 | -0- | ||||||||||||
Plus: Non-recurring Severance Expense | -0- | -0- | -0- | 786 | ||||||||||||
Less: Gain on Sale of Securities Transactions | (2,248 | ) | -0- | (2,248 | ) | -0- | ||||||||||
Less: Lease Termination Income | -0- | -0- | (377 | ) | -0- | |||||||||||
Less: Recurring Capital Expenditures | (403 | ) | (717 | ) | (563 | ) | (936 | ) | ||||||||
Less: Effect of Non-cash U.S. GAAP Straight-line Rent Adjustment | (1,043 | ) | (632 | ) | (1,661 | ) | (1,232 | ) | ||||||||
AFFO Attributable to Common Shareholders | $ | 19,418 | $ | 19,352 | $ | 37,833 | $ | 39,284 |
For The | For The | |||||||||||||||
Three Months Ended | Six Months Ended | |||||||||||||||
3/31/2021 | 3/31/2020 | 3/31/2021 | 3/31/2020 | |||||||||||||
Adjusted EBITDA | ||||||||||||||||
Net Income (Loss) Attributable to Common Shareholders | $ | 25,913 | $ | (75,078 | ) | $ | 51,659 | $ | (71,551 | ) | ||||||
Plus: Preferred Dividends | 8,416 | 6,764 | 16,587 | 12,862 | ||||||||||||
Plus: Interest Expense, including Amortization of Financing Costs | 9,387 | 9,050 | 18,546 | 18,259 | ||||||||||||
Plus: Depreciation and Amortization | 13,943 | 12,242 | 26,829 | 24,428 | ||||||||||||
Plus: Net Amortization of Acquired Above and Below Market Lease Revenue | 26 | 26 | 51 | 51 | ||||||||||||
Less/Plus: Unrealized Holding (Gains) Losses Arising During the Periods | (19,186 | ) | 83,075 | (38,906 | ) | 86,710 | ||||||||||
Less: Gain on Sale of Securities Transactions | (2,248 | ) | -0- | (2,248 | ) | -0- | ||||||||||
Adjusted EBITDA | $ | 36,251 | $ | 36,079 | $ | 72,518 | $ | 70,759 |
SECOND quarter Fiscal year 2021 supplemental information | 5 |
(unaudited) (in thousands)
For The | For The | |||||||||||||||
Three Months Ended | Six Months Ended | |||||||||||||||
3/31/2021 | 3/31/2020 | 3/31/2021 | 3/31/2020 | |||||||||||||
Net Operating Income | ||||||||||||||||
Net Income (Loss) Attributable to Common Shareholders | $ | 25,913 | $ | (75,078 | ) | $ | 51,659 | $ | (71,551 | ) | ||||||
Plus: Preferred Dividends | 8,416 | 6,764 | 16,587 | 12,862 | ||||||||||||
Plus: General & Administrative Expenses | 2,091 | 2,396 | 4,117 | 4,660 | ||||||||||||
Plus: Non-recurring Strategic Alternative & Proxy Costs | 1,993 | -0- | 2,239 | -0- | ||||||||||||
Plus: Non-recurring Severance Expense | -0- | -0- | -0- | 786 | ||||||||||||
Plus: Depreciation | 13,064 | 11,475 | 25,141 | 22,907 | ||||||||||||
Plus: Amortization of Capitalized Lease Costs and Intangible Assets | 879 | 767 | 1,687 | 1,521 | ||||||||||||
Plus: Interest Expense, including Amortization of Financing Costs | 9,387 | 9,050 | 18,546 | 18,259 | ||||||||||||
Less/Plus: Unrealized Holding (Gains) Losses Arising During the Periods | (19,186 | ) | 83,075 | (38,906 | ) | 86,710 | ||||||||||
Less: Dividend Income | (1,587 | ) | (3,404 | ) | (3,195 | ) | (6,642 | ) | ||||||||
Less: Gain on Sale of Securities Transactions | (2,248 | ) | -0- | (2,248 | ) | -0- | ||||||||||
Less: Lease Termination Income | -0- | -0- | (377 | ) | -0- | |||||||||||
Net Operating Income – NOI | $ | 38,722 | $ | 35,045 | $ | 75,250 | $ | 69,512 |
For The | For The | |||||||||||||||
Three Months Ended | Six Months Ended | |||||||||||||||
3/31/2021 | 3/31/2020 | 3/31/2021 | 3/31/2020 | |||||||||||||
Components of Net Operating Income Consists of: | ||||||||||||||||
Revenues: | ||||||||||||||||
Rental Revenue | $ | 39,246 | $ | 35,114 | $ | 76,091 | $ | 69,983 | ||||||||
Reimbursement Revenue | 7,119 | 6,594 | 13,856 | 13,424 | ||||||||||||
Total Rental and Reimbursement Revenue | 46,365 | 41,708 | 89,947 | 83,407 | ||||||||||||
Expenses: | ||||||||||||||||
Real Estate Taxes | 5,604 | 5,029 | 10,922 | 10,064 | ||||||||||||
Operating Expenses | 2,039 | 1,634 | 3,775 | 3,831 | ||||||||||||
Total Real Estate Taxes and Operating Expenses | 7,643 | 6,663 | 14,697 | 13,895 | ||||||||||||
Net Operating Income – NOI | $ | 38,722 | $ | 35,045 | $ | 75,250 | $ | 69,512 |
SECOND quarter Fiscal year 2021 supplemental information | 6 |
(unaudited) (in thousands except for per share amounts)
For The | For The | |||||||||||||||||||||||
Three Months Ended | Six Months Ended | |||||||||||||||||||||||
3/31/2021 | 3/31/2020 | Change (%) | 3/31/2021 | 3/31/2020 | Change (%) | |||||||||||||||||||
Weighted Average Common Shares Outstanding | ||||||||||||||||||||||||
Basic | 98,298 | 97,864 | 0.4 | % | 98,200 | 97,370 | 0.9 | % | ||||||||||||||||
Diluted | 98,496 | 97,941 | 0.6 | % | 98,352 | 97,466 | 0.9 | % | ||||||||||||||||
Net Income (Loss) Attributable to Common Shareholders | $ | 25,913 | $ | (75,078 | ) | (134.5 | )% | $ | 51,659 | $ | (71,551 | ) | (172.2 | )% | ||||||||||
Basic | $ | 0.26 | $ | (0.77 | ) | (133.8 | )% | $ | 0.53 | $ | (0.73 | ) | (172.6 | )% | ||||||||||
Diluted | 0.26 | (0.77 | ) | (133.8 | )% | 0.53 | (0.73 | ) | (172.6 | )% | ||||||||||||||
Net Operating Income – NOI | $ | 38,722 | $ | 35,045 | 10.5 | % | $ | 75,250 | $ | 69,512 | 8.3 | % | ||||||||||||
Basic | $ | 0.39 | $ | 0.36 | 8.3 | % | $ | 0.77 | $ | 0.71 | 8.5 | % | ||||||||||||
Diluted | 0.39 | 0.36 | 8.3 | % | 0.77 | 0.71 | 8.5 | % | ||||||||||||||||
Funds From Operations – FFO | $ | 20,639 | $ | 20,199 | 2.2 | % | $ | 39,517 | $ | 39,520 | 0.0 | % | ||||||||||||
Basic | $ | 0.21 | $ | 0.21 | 0.0 | % | $ | 0.40 | $ | 0.41 | (2.4 | )% | ||||||||||||
Diluted | 0.21 | 0.21 | 0.0 | % | 0.40 | 0.41 | (2.4 | )% | ||||||||||||||||
Adjusted Funds From Operations – AFFO | $ | 19,418 | $ | 19,352 | 0.3 | % | $ | 37,833 | $ | 39,284 | (3.7 | )% | ||||||||||||
Basic | $ | 0.20 | $ | 0.20 | 0.0 | % | $ | 0.39 | $ | 0.40 | (2.5 | )% | ||||||||||||
Diluted | 0.20 | 0.20 | 0.0 | % | 0.38 | 0.40 | (5.0 | )% | ||||||||||||||||
Dividends Declared per Common Share | $ | 0.18 | $ | 0.17 | $ | 0.35 | $ | 0.34 | ||||||||||||||||
Dividend/AFFO Payout Ratio | 90.0 | % | 85.0 | % | 92.1 | % | 85.0 | % |
SECOND quarter Fiscal year 2021 supplemental information | 7 |
(unaudited) (in thousands except for square feet)
For The Three Months Ended | ||||||||||||||||
3/31/2021 | 3/31/2020 | Change | Change % | |||||||||||||
Total Square Feet / Total Properties | 24,582,127 / 121 | 23,019,627 / 116 | 1,562,500 | 6.8 | % | |||||||||||
Occupancy Percentage at End of Period | 99.7 | % | 99.4 | % | 30 bps | 0.3 | % | |||||||||
Same Property Square Feet / Number of Same Properties | 22,480,788 / 114 | |||||||||||||||
Same Property Occupancy Percentage at End of Period | 99.6 | % | 99.4 | % | 20 bps | 0.2 | % | |||||||||
Same Property Net Operating Income (NOI) (GAAP) | $ | 34,092 | $ | 34,492 | $ | (400 | ) | (1.2 | )% | |||||||
Reversal of Effect of Non-cash U.S. GAAP Straight-line Rent Adjustment | (751 | ) | (661 | ) | (90 | ) | ||||||||||
Same Property Cash NOI | $ | 33,341 | $ | 33,831 | $ | (490 | ) | (1.4 | )% |
Same Property Statistics include all properties owned during the entire periods presented with the exclusion of properties expanded during the periods presented.
Reconciliation of Same Property NOI to Total NOI
(unaudited) (in thousands)
For The Three Months Ended | ||||||||||||||||
3/31/2021 | 3/31/2020 | Change | Change % | |||||||||||||
Same Property NOI (GAAP) | $ | 34,092 | $ | 34,492 | $ | (400 | ) | (1.2 | )% | |||||||
NOI of properties purchased subsequent to December 31, 2019 (four properties purchased during fiscal 2020 and two properties purchased during fiscal 2021) | 4,000 | 7 | ||||||||||||||
NOI of property expanded subsequent to December 31, 2019 (one property expanded during fiscal 2021) | 630 | 546 | ||||||||||||||
Total NOI | $ | 38,722 | $ | 35,045 | $ | 3,677 | 10.5 | % |
SECOND quarter Fiscal year 2021 supplemental information | 8 |
Same Property Statistics
(unaudited) (in thousands except for square feet)
For The Six Months Ended | ||||||||||||||||
3/31/2021 | 3/31/2020 | Change | Change % | |||||||||||||
Total Square Feet / Total Properties | 24,582,127 / 121 | 23,019,627 / 116 | 1,562,500 | 6.8 | % | |||||||||||
Occupancy Percentage at End of Period | 99.7 | % | 99.4 | % | 30 bps | 0.3 | % | |||||||||
Same Property Square Feet / Number of Same Properties | 21,865,041 / 113 | |||||||||||||||
Same Property Occupancy Percentage at End of Period | 99.6 | % | 99.4 | % | 20 bps | 0.3 | % | |||||||||
Same Property Net Operating Income (NOI) (GAAP) | $ | 65,758 | $ | 66,020 | $ | (262 | ) | (0.4 | )% | |||||||
Reversal of Effect of Non-cash U.S. GAAP Straight-line Rent Adjustment | (1,036 | ) | (1,057 | ) | 21 | |||||||||||
Same Property Cash NOI | $ | 64,722 | $ | 64,963 | $ | (241 | ) | (0.4 | )% |
Same Property Statistics include all properties owned during the entire periods presented with the exclusion of properties expanded during the periods presented.
Reconciliation of Same Property NOI to Total NOI
(unaudited) (in thousands)
For The Six Months Ended | ||||||||||||||||
3/31/2021 | 3/31/2020 | Change | Change % | |||||||||||||
Same Property NOI (GAAP) | $ | 65,758 | $ | 66,020 | $ | (262 | ) | (0.4 | )% | |||||||
NOI of properties purchased subsequent to September 30, 2019 (five properties purchased during fiscal 2020 and two properties purchased during fiscal 2021) | 8,260 | 2,400 | ||||||||||||||
NOI of property expanded subsequent to September 30, 2019 (one property expanded during fiscal 2021) | 1,232 | 1,092 | ||||||||||||||
Total NOI | $ | 75,250 | $ | 69,512 | $ | 5,738 | 8.3 | % |
SECOND quarter Fiscal year 2021 supplemental information | 9 |
Consolidated Statements of Cash Flows
(unaudited)(in thousands)
For The | ||||||||
Six Months Ended | ||||||||
3/31/2021 | 3/31/2020 | |||||||
CASH FLOWS FROM OPERATING ACTIVITIES | ||||||||
Net Income (Loss) | $ | 68,246 | $ | (58,689 | ) | |||
Noncash Items Included in Net Income (Loss): | ||||||||
Depreciation & Amortization | 27,505 | 25,186 | ||||||
Deferred Straight Line Rent | (1,661 | ) | (1,232 | ) | ||||
Stock Compensation Expense | 134 | 270 | ||||||
Securities Available for Sale Received as Dividend Income | (494 | ) | (745 | ) | ||||
Realized Gain on Sale of Securities Transactions | (2,248 | ) | -0- | |||||
Unrealized Holding (Gains) Losses Arising During the Periods | (38,906 | ) | 86,710 | |||||
Changes in: | ||||||||
Tenant & Other Receivables | 2,747 | (2,302 | ) | |||||
Prepaid Expenses | (5,652 | ) | (5,201 | ) | ||||
Other Assets & Capitalized Lease Costs | (654 | ) | (1,380 | ) | ||||
Accounts Payable, Accrued Expenses & Other Liabilities | 5,409 | 5,237 | ||||||
NET CASH PROVIDED BY OPERATING ACTIVITIES | 54,426 | 47,854 | ||||||
CASH FLOWS FROM INVESTING ACTIVITIES | ||||||||
Purchase of Real Estate & Intangible Assets | (170,568 | ) | (99,424 | ) | ||||
Capital Improvements | (3,560 | ) | (3,314 | ) | ||||
Return of Deposits on Real Estate | 5,000 | 1,300 | ||||||
Deposits Paid on Acquisitions of Real Estate | (3,210 | ) | (200 | ) | ||||
Proceeds from the Sale of Securities Transactions | 16,327 | -0- | ||||||
Proceeds from Securities Available for Sale Called for Redemption | 2,500 | 250 | ||||||
NET CASH USED IN INVESTING ACTIVITIES | (153,511 | ) | (101,388 | ) | ||||
CASH FLOWS FROM FINANCING ACTIVITIES | ||||||||
Net Repayments on Loans Payable | -0- | (20,000 | ) | |||||
Proceeds from Fixed Rate Mortgage Notes Payable | 104,000 | 61,900 | ||||||
Principal Payments on Fixed Rate Mortgage Notes Payable | (37,196 | ) | (27,191 | ) | ||||
Financing Costs Paid on Debt | (569 | ) | (2,078 | ) | ||||
Proceeds from the Exercise of Stock Options | 1,966 | 1,016 | ||||||
Proceeds from At-The-Market 6.125% Series C Preferred Stock, net of offering costs | 75,958 | 80,288 | ||||||
Proceeds from Issuance of Common Stock in the DRIP, net of Dividend Reinvestments | 320 | 18,489 | ||||||
Shares repurchased through the Common Stock Repurchase Plan | -0- | (3,209 | ) | |||||
Preferred Dividends Paid | (16,190 | ) | (12,445 | ) | ||||
Common Dividends Paid, net of Reinvestments | (33,338 | ) | (27,502 | ) | ||||
NET CASH PROVIDED BY FINANCING ACTIVITIES | 94,951 | 69,268 | ||||||
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS | (4,134 | ) | 15,734 | |||||
CASH AND CASH EQUIVALENTS - BEGINNING OF PERIOD | 23,517 | 20,179 | ||||||
CASH AND CASH EQUIVALENTS - END OF PERIOD | $ | 19,383 | $ | 35,913 |
SECOND quarter Fiscal year 2021 supplemental information | 10 |
Capital Structure and Leverage Ratios
(unaudited) (in thousands except for per share amounts)
As of | As of | As of | ||||||||||
3/31/2021 | 3/31/2020 | 9/30/2020 | ||||||||||
Fixed Rate Mortgage Notes Payable, net of Unamortized Debt Issuance Costs | $ | 866,224 | $ | 779,742 | $ | 799,507 | ||||||
Loans Payable | 75,000 | 75,000 | 75,000 | |||||||||
Total Debt | 941,224 | 854,742 | 874,507 | |||||||||
6.125% Series C Cumulative Redeemable Preferred Stock | 549,640 | 429,215 | 471,994 | |||||||||
Common Stock, Additional Paid-In-Capital & Other | 586,460 | 579,628 | 565,611 | |||||||||
Total Shareholders’ Equity | 1,136,100 | 1,008,843 | 1,037,605 | |||||||||
Total Book Capitalization | 2,077,324 | 1,863,585 | 1,912,112 | |||||||||
Accumulated Depreciation | 321,047 | 272,372 | 296,020 | |||||||||
Total Undepreciated Book Capitalization | $ | 2,398,371 | $ | 2,135,957 | $ | 2,208,132 | ||||||
Shares Outstanding | 98,301 | 97,980 | 98,054 | |||||||||
Market Price Per Share | $ | 17.69 | $ | 12.05 | $ | 13.85 | ||||||
Equity Market Capitalization | $ | 1,738,944 | $ | 1,180,654 | $ | 1,358,049 | ||||||
Total Debt | 941,224 | 854,742 | 874,507 | |||||||||
Total Preferred Stock | 549,640 | 429,215 | 471,994 | |||||||||
Total Market Capitalization | $ | 3,229,808 | $ | 2,464,611 | $ | 2,704,550 | ||||||
Total Debt | $ | 941,224 | $ | 854,742 | $ | 874,507 | ||||||
less: Cash and Cash Equivalents | 19,383 | 35,913 | 23,517 | |||||||||
Net Debt | $ | 921,841 | $ | 818,829 | $ | 850,990 | ||||||
less: Securities Available for Sale at Fair Value (Securities) | 131,654 | 99,035 | 108,832 | |||||||||
Net Debt Less Securities | $ | 790,187 | $ | 719,794 | $ | 742,158 | ||||||
Net Debt / Total Undepreciated Book Capitalization | 38.4 | % | 38.3 | % | 38.5 | % | ||||||
Net Debt / Total Market Capitalization | 28.5 | % | 33.2 | % | 31.5 | % | ||||||
Net Debt Plus Preferred Stock / Total Market Capitalization | 45.6 | % | 50.6 | % | 48.9 | % | ||||||
Net Debt Less Securities / Total Undepreciated Book Capitalization | 32.9 | % | 33.7 | % | 33.6 | % | ||||||
Net Debt Less Securities / Total Market Capitalization | 24.5 | % | 29.2 | % | 27.4 | % | ||||||
Net Debt Less Securities Plus Preferred Stock / Total Market Capitalization | 41.5 | % | 46.6 | % | 44.9 | % | ||||||
Weighted Average Interest Rate on Fixed Rate Mortgage Debt | 3.87 | % | 4.04 | % | 3.98 | % | ||||||
Weighted Average Term on Fixed Rate Mortgage Debt | 11.3 yrs. | 11.3 yrs. | 11.1 yrs. | |||||||||
Weighted Average Lease Term | 7.4 yrs. | 7.4 yrs. | 7.1 yrs. |
SECOND quarter Fiscal year 2021 supplemental information | 11 |
Capital Structure and Leverage Ratios
(unaudited) (in thousands)
For the Three Months Ended | For the Six Months Ended | Fiscal Year Ended | ||||||||||||||||||
3/31/2021 | 3/31/2020 | 3/31/2021 | 3/31/2020 | 9/30/2020 | ||||||||||||||||
Net Income (Loss) Attributable to Common Shareholders | $ | 25,913 | $ | (75,078 | ) | $ | 51,659 | $ | (71,551 | ) | $ | (48,617 | ) | |||||||
Plus: Preferred Dividends | 8,416 | 6,764 | 16,587 | 12,862 | 26,474 | |||||||||||||||
Plus: Interest Expense, including Amortization of Financing Costs | 9,387 | 9,050 | 18,546 | 18,259 | 36,376 | |||||||||||||||
Plus: Depreciation and Amortization | 13,943 | 12,242 | 26,829 | 24,428 | 49,850 | |||||||||||||||
Plus: Net Amortization of Acquired Above and Below Market Lease Revenue | 26 | 26 | 51 | 51 | 103 | |||||||||||||||
Less/Plus: Unrealized Holding (Gains) Losses Arising During the Periods | (19.186 | ) | 83,075 | (38,906 | ) | 86,710 | 77,380 | |||||||||||||
Less: Gain on Sale of Securities Transactions | (2,248 | ) | -0- | (2,248 | ) | -0- | -0- | |||||||||||||
Adjusted EBITDA | $ | 36,251 | $ | 36,079 | $ | 72,518 | $ | 70,759 | $ | 141,566 | ||||||||||
Interest Expense, including Amortization of Financing Costs | $ | 9,387 | $ | 9,050 | $ | 18,546 | $ | 18,259 | $ | 36,376 | ||||||||||
Preferred Dividends | 8,416 | 6,764 | 16,587 | 12,862 | 26,474 | |||||||||||||||
Total Fixed Charges | $ | 17,803 | $ | 15,814 | $ | 35,133 | $ | 31,121 | $ | 62,850 | ||||||||||
Interest Coverage | 3.9 x | 4.0 x | 3.9 x | 3.9 x | 3.9 x | |||||||||||||||
Fixed Charge Coverage | 2.0 x | 2.3 x | 2.1 x | 2.3 x | 2.3 x | |||||||||||||||
Net Debt | $ | 921,841 | $ | 818,829 | $ | 921,841 | $ | 818,829 | $ | 850,990 | ||||||||||
Net Debt Less Securities | 790,187 | 719,794 | 790,187 | 719,794 | 742,158 | |||||||||||||||
Total Preferred Stock | 549,640 | 429,215 | 549,640 | 429,215 | 471,994 | |||||||||||||||
Annualized Adjusted EBITDA | 145,004 | 144,316 | 145,036 | 141,518 | 141,566 | |||||||||||||||
Net Debt / Adjusted EBITDA | 6.4 x | 5.7 x | 6.4 x | 5.8 x | 6.0 x | |||||||||||||||
Net Debt Less Securities / Adjusted EBITDA | 5.4 x | 5.0 x | 5.4 x | 5.1 x | 5.2 x | |||||||||||||||
Net Debt + Preferred Stock / Adjusted EBITDA | 10.1 x | 8.6 x | 10.1 x | 8.8 x | 9.3 x | |||||||||||||||
Net Debt Less Securities + Preferred Stock / Adjusted EBITDA | 9.2 x | 8.0 x | 9.2 x | 8.1 x | 8.6 x |
SECOND quarter Fiscal year 2021 supplemental information | 12 |
(unaudited) (In thousands)
Loans | % of | |||||||||||||||
Fiscal Year Ended | Mortgages | Payable | Total | Total | ||||||||||||
2021 | $ | 32,994 | -0- | $ | 32,994 | 3.5 | % | |||||||||
2022 | 82,261 | -0- | 82,261 | 8.7 | % | |||||||||||
2023 | 67,446 | -0- | 67,446 | 7.1 | % | |||||||||||
2024 | 80,898 | -0- | 80,898 | 8.5 | % | |||||||||||
2025 | 75,305 | 75,000 | (B) | 150,305 | 15.8 | % | ||||||||||
Thereafter | 535,271 | -0- | 535,271 | 56.4 | % | |||||||||||
Total as of 3/31/2021 | (A) | $ | 874,175 | $ | 75,000 | $ | 949,175 | 100.0 | % | |||||||
Weighted Average Interest Rate | 3.87 | % | 2.92 | % | 3.79 | % | ||||||||||
Weighted Average Term | 11.3 yrs. | 3.8 yrs. | 10.7 yrs. |
(A) | Mortgages does not include unamortized debt issuance costs of $8.0 million. | |
(B) | Represents a Term Loan maturing January 2025. |
SECOND quarter Fiscal year 2021 supplemental information | 13 |
(unaudited)
Property | Square | Occupied Square | % of Occupied | Annual | % of Total | Rent Per | Undepreciated | Mortgage | ||||||||||||||||||||||||||||||
Tenant | Count | Footage | Footage | sf | Rent | Ann. Rent | sf Occup. | Cost | Balance | |||||||||||||||||||||||||||||
FedEx Ground Package System, Inc. | 47 | 10,072,613 | 10,072,613 | 41.0 | % | $ | 80,425,000 | 50.4 | % | $ | 7.98 | $ | 1,145,432,472 | $ | 481,827,489 | |||||||||||||||||||||||
FedEx Corporation | 16 | 1,164,813 | 1,164,813 | 4.7 | % | 7,492,000 | 4.7 | % | 6.43 | 109,268,273 | 19,866,854 | |||||||||||||||||||||||||||
Total FedEx | 63 | 11,237,426 | 11,237,426 | 45.7 | % | 87,917,000 | 55.1 | % | 7.82 | 1,254,700,745 | 501,694,343 | |||||||||||||||||||||||||||
Subsidiaries of Amazon.com, Inc. | 5 | 1,491,245 | 1,491,245 | 6.1 | % | 10,742,000 | 6.7 | % | 7.20 | 166,563,589 | 92,487,325 | |||||||||||||||||||||||||||
Milwaukee Electric Tool Corporation | 1 | 861,889 | 861,889 | 3.5 | % | 3,098,000 | 1.9 | % | 3.59 | 36,914,917 | 17,077,442 | |||||||||||||||||||||||||||
Shaw Industries, Inc. | 1 | 831,764 | 831,764 | 3.4 | % | 3,563,000 | 2.2 | % | 4.28 | 56,025,945 | 27,307,666 | |||||||||||||||||||||||||||
Home Depot U.S.A., Inc. | 2 | 828,748 | 828,748 | 3.4 | % | 6,580,000 | 4.1 | % | 7.94 | 105,267,022 | 56,580,100 | |||||||||||||||||||||||||||
ULTA, Inc. | 1 | 671,354 | 671,354 | 2.7 | % | 2,782,000 | 1.7 | % | 4.14 | 37,773,835 | 16,608,157 | |||||||||||||||||||||||||||
Jim Beam Brands Company (Beam Suntory) | 1 | 599,840 | 599,840 | 2.4 | % | 2,112,000 | 1.3 | % | 3.52 | 28,000,000 | 14,053,653 | |||||||||||||||||||||||||||
International Paper Company | 2 | 578,491 | 578,491 | 2.4 | % | 2,663,000 | 1.7 | % | 4.60 | 37,024,608 | 17,141,951 | |||||||||||||||||||||||||||
TreeHouse Private Brands, Inc. | 1 | 558,509 | 558,509 | 2.3 | % | 2,267,000 | 1.4 | % | 4.06 | 26,807,852 | 13,398,393 | |||||||||||||||||||||||||||
B. Braun Medical Inc. | 1 | 399,440 | 399,440 | 1.6 | % | 2,330,000 | 1.5 | % | 5.83 | 30,939,752 | 16,700,284 | |||||||||||||||||||||||||||
UGN, Inc. | 1 | 387,000 | 387,000 | 1.6 | % | 2,107,000 | 1.3 | % | 5.44 | 21,576,756 | 12,012,144 | |||||||||||||||||||||||||||
CBOCS Distribution, Inc. (Cracker Barrel) | 1 | 381,240 | 381,240 | 1.6 | % | 1,490,000 | 0.9 | % | 3.91 | 14,215,126 | -0- | |||||||||||||||||||||||||||
Best Buy Warehousing Logistics, Inc. | 1 | 368,060 | 368,060 | 1.5 | % | 1,725,000 | 1.1 | % | 4.69 | 19,600,000 | 7,683,077 | |||||||||||||||||||||||||||
Toyota Tsusho America, Inc. | 1 | 350,418 | 350,418 | 1.4 | % | 1,722,000 | 1.1 | % | 4.91 | 25,078,587 | 15,672,277 | |||||||||||||||||||||||||||
Coca-Cola | 2 | 328,045 | 328,045 | 1.3 | % | 1,741,000 | 1.1 | % | 5.31 | 20,504,069 | 1,561,589 | |||||||||||||||||||||||||||
Autoneum North America, Inc. | 1 | 315,560 | 315,560 | 1.3 | % | 1,746,000 | 1.1 | % | 5.53 | 21,040,396 | 12,436,595 | |||||||||||||||||||||||||||
Science Applications International Corporation | 1 | 302,400 | 302,400 | 1.2 | % | 1,708,000 | 1.1 | % | 5.65 | 14,463,148 | -0- | |||||||||||||||||||||||||||
Bunzl USA Holdings, Inc. | 2 | 268,778 | 268,778 | 1.1 | % | 1,457,000 | 0.9 | % | 5.42 | 18,731,674 | 4,469,872 | |||||||||||||||||||||||||||
Woodstream Corporation | (A) | 1 | 256,000 | 256,000 | 1.0 | % | 987,000 | 0.6 | % | 3.86 | 8,965,820 | -0- | ||||||||||||||||||||||||||
Anda Pharmaceuticals, Inc. | 1 | 234,660 | 234,660 | 1.0 | % | 1,220,000 | 0.8 | % | 5.20 | 14,550,000 | 5,912,358 | |||||||||||||||||||||||||||
Mickey Thompson Performance Tires and Wheels (Cooper Tire) | 1 | 219,765 | 219,765 | 0.9 | % | 1,537,000 | 1.0 | % | 6.99 | 18,934,065 | 10,461,574 | |||||||||||||||||||||||||||
Rinnai America Corporation | 1 | 218,120 | 218,120 | 0.9 | % | 913,000 | 0.6 | % | 4.19 | 15,082,217 | -0- | |||||||||||||||||||||||||||
Anheuser-Busch, Inc. | 1 | 184,800 | 184,800 | 0.8 | % | 854,000 | 0.5 | % | 4.62 | 12,757,540 | -0- | |||||||||||||||||||||||||||
Carrier Enterprise, LLC (Carrier Global Corporation) | 1 | 184,317 | 184,317 | 0.7 | % | 1,160,000 | 0.7 | % | 6.29 | 18,494,917 | 4,265,418 | |||||||||||||||||||||||||||
Carlstar Group, LLC | 1 | 179,280 | 179,280 | 0.7 | % | 771,000 | 0.5 | % | 4.30 | 7,282,986 | -0- | |||||||||||||||||||||||||||
NF&M International, Inc. | (B) | 1 | 174,802 | 174,802 | 0.7 | % | 842,000 | 0.5 | % | 4.82 | 5,445,065 | -0- | ||||||||||||||||||||||||||
Magna Seating of America, Inc. | 1 | 152,995 | 152,995 | 0.6 | % | 1,201,000 | 0.8 | % | 7.85 | 17,557,830 | 8,709,964 | |||||||||||||||||||||||||||
Victory Packaging, L.P. | 1 | 148,000 | 148,000 | 0.6 | % | 504,000 | 0.3 | % | 3.41 | 5,458,279 | -0- | |||||||||||||||||||||||||||
Challenger Lifts, Inc. (Snap-On Inc.) | 1 | 137,500 | 137,500 | 0.6 | % | 858,000 | 0.5 | % | 6.24 | 11,304,000 | 5,486,626 | |||||||||||||||||||||||||||
Altec Industries, Inc. | (A) | 1 | 126,880 | 126,880 | 0.5 | % | 378,000 | 0.2 | % | 2.98 | 4,443,684 | -0- | ||||||||||||||||||||||||||
General Electric Company | 1 | 125,860 | 125,860 | 0.5 | % | 1,329,000 | 0.8 | % | 10.56 | 19,972,983 | 9,163,631 | |||||||||||||||||||||||||||
Keurig Dr Pepper | 2 | 110,080 | 110,080 | 0.4 | % | 757,000 | 0.5 | % | 6.88 | 10,498,031 | 1,340,408 | |||||||||||||||||||||||||||
Style Crest, Inc. | 1 | 106,507 | 106,507 | 0.4 | % | 433,000 | 0.3 | % | 4.07 | 7,315,077 | -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, a Division of VITRO | 1 | 102,135 | 102,135 | 0.4 | % | 508,000 | 0.3 | % | 4.97 | 4,249,615 | -0- | |||||||||||||||||||||||||||
Dakota Bodies, LLC | 1 | 96,687 | 96,687 | 0.4 | % | 416,000 | 0.3 | % | 4.30 | 7,797,827 | -0- | |||||||||||||||||||||||||||
National Oilwell Varco, Inc. | 1 | 91,295 | 91,295 | 0.4 | % | 801,000 | 0.5 | % | 8.77 | 8,190,901 | 817,462 | |||||||||||||||||||||||||||
Joseph T. Ryerson and Son, Inc. | 1 | 89,123 | 89,123 | 0.4 | % | 519,000 | 0.3 | % | 5.82 | 7,184,598 | -0- | |||||||||||||||||||||||||||
CHEP USA, Inc. | 1 | 83,000 | 83,000 | 0.3 | % | 509,000 | 0.3 | % | 6.13 | 7,463,672 | -0- | |||||||||||||||||||||||||||
Sherwin-Williams Company | 2 | 78,887 | 78,887 | 0.3 | % | 648,000 | 0.4 | % | 8.21 | 7,427,594 | -0- | |||||||||||||||||||||||||||
United Parcel Service, Inc. | 1 | 75,000 | 75,000 | 0.3 | % | 541,000 | 0.3 | % | 7.21 | 5,906,281 | -0- | |||||||||||||||||||||||||||
Tampa Bay Grand Prix | 1 | 68,385 | 68,385 | 0.3 | % | 369,000 | 0.2 | % | 5.40 | 5,677,982 | -0- | |||||||||||||||||||||||||||
Various Tenants at Retail Shopping Center | 1 | 64,220 | 61,190 | 0.3 | % | 616,000 | 0.4 | % | 10.07 | 3,139,564 | -0- | |||||||||||||||||||||||||||
SOFIVE, Inc. | (C) | 1 | 60,400 | 60,400 | 0.3 | % | 653,000 | 0.4 | % | 10.81 | 5,296,752 | 1,132,814 | ||||||||||||||||||||||||||
Locke Supply Co. | 1 | 60,000 | 60,000 | 0.3 | % | 340,000 | 0.2 | % | 5.67 | 5,097,101 | -0- | |||||||||||||||||||||||||||
Hartford Healthcare Corporation | 1 | 54,812 | 54,812 | 0.2 | % | 307,000 | 0.2 | % | 5.60 | 3,525,917 | -0- | |||||||||||||||||||||||||||
Siemens Real Estate | 1 | 51,130 | 51,130 | 0.2 | % | 464,000 | 0.3 | % | 9.07 | 4,554,684 | -0- | |||||||||||||||||||||||||||
Collins Aerospace (Raytheon Technologies Corporation) | 1 | 38,833 | 38,833 | 0.2 | % | 368,000 | 0.3 | % | 9.48 | 5,100,000 | -0- | |||||||||||||||||||||||||||
Foundation Building Materials, LLC | 1 | 36,270 | 36,270 | 0.1 | % | 179,000 | 0.2 | % | 4.94 | 2,543,770 | -0- | |||||||||||||||||||||||||||
Graybar Electric Company | 1 | 26,340 | 26,340 | 0.1 | % | 122,000 | 0.2 | % | 4.63 | 2,736,527 | -0- | |||||||||||||||||||||||||||
Vacant | (B) | 1 | 80,856 | -0- | 0.0 | % | -0- | 0.0 | % | -0- | 2,518,657 | -0- | ||||||||||||||||||||||||||
Total as of 3/31/21 | 121 | 24,582,127 | 24,498,241 | 99.7 | % | $ | 159,484,000 | 100.0 | % | $ | 6.51 | $ | 2,212,662,780 | (D) | $ | 874,175,123 |
(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) | Subsequent to the March 31, 2021 quarter end, on April 15, 2021, we sold our 60,400 square foot building located in Carlstadt (New York, NY), NJ for $13.0 million. | |
(D) | Does not include unamortized debt issuance costs of $7,950,710. |
SECOND quarter Fiscal year 2021 supplemental information | 14 |
(unaudited)
Property | Square | Occupied Square | % of Total | Annual | % of Total | Rent Per | Undepreciated | Mortgage | ||||||||||||||||||||||||||||
State | Count | Footage | Footage | sf | Rent | Ann. Rent | sf Occup. | Cost | Balance | |||||||||||||||||||||||||||
Ohio | 11 | 2,358,769 | 2,358,769 | 9.6 | % | $ | 15,863,000 | 9.9 | % | $ | 6.73 | $ | 208,977,770 | $ | 95,373,696 | |||||||||||||||||||||
Georgia | 7 | 2,297,214 | 2,297,214 | 9.3 | % | 16,177,000 | 10.1 | % | 7.04 | 260,177,386 | 134,241,920 | |||||||||||||||||||||||||
Florida | 13 | 2,223,042 | 2,223,042 | 9.0 | % | 16,002,000 | 10.0 | % | 7.20 | 228,973,596 | 81,155,183 | |||||||||||||||||||||||||
Indiana | 4 | 1,965,341 | 1,965,341 | 8.0 | % | 11,212,000 | 7.0 | % | 5.70 | 167,720,415 | 90,022,997 | |||||||||||||||||||||||||
Texas | 10 | 1,790,337 | 1,790,337 | 7.3 | % | 13,844,000 | 8.7 | % | 7.73 | 183,313,395 | 62,967,217 | |||||||||||||||||||||||||
Kentucky | 3 | 1,295,849 | 1,295,849 | 5.3 | % | 5,237,000 | 3.3 | % | 4.04 | 66,111,852 | 32,938,672 | |||||||||||||||||||||||||
South Carolina | 6 | 1,273,676 | 1,273,676 | 5.2 | % | 9,882,000 | 6.2 | % | 7.76 | 129,988,441 | 50,264,014 | |||||||||||||||||||||||||
North Carolina | 5 | 1,225,987 | 1,225,987 | 5.0 | % | 8,713,000 | 5.5 | % | 7.11 | 132,581,066 | 65,258,660 | |||||||||||||||||||||||||
Mississippi | 4 | 1,158,889 | 1,158,889 | 4.7 | % | 4,560,000 | 2.9 | % | 3.93 | 56,102,135 | 22,989,800 | |||||||||||||||||||||||||
Illinois | 9 | 958,102 | 958,102 | 3.9 | % | 6,254,000 | 3.9 | % | 6.53 | 83,501,254 | 6,993,784 | |||||||||||||||||||||||||
Tennessee | 3 | 891,777 | 891,777 | 3.6 | % | 3,203,000 | 2.0 | % | 3.59 | 35,677,250 | 2,839,266 | |||||||||||||||||||||||||
Michigan | 4 | 833,717 | 833,717 | 3.4 | % | 5,578,000 | 3.5 | % | 6.69 | 73,470,169 | 21,252,767 | |||||||||||||||||||||||||
Kansas | 4 | 813,062 | 813,062 | 3.3 | % | 5,038,000 | 3.2 | % | 6.20 | 62,331,797 | 24,089,850 | |||||||||||||||||||||||||
Missouri | 4 | 740,119 | 740,119 | 3.0 | % | 3,003,000 | 1.9 | % | 4.06 | 35,460,181 | -0- | |||||||||||||||||||||||||
Oklahoma | 5 | 735,721 | 735,721 | 3.0 | % | 4,943,000 | 3.1 | % | 6.72 | 69,942,758 | 34,340,980 | |||||||||||||||||||||||||
New York | 3 | 518,565 | 518,565 | 2.1 | % | 3,500,000 | 2.2 | % | 6.75 | 51,999,081 | 18,097,558 | |||||||||||||||||||||||||
Pennsylvania | 3 | 504,040 | 423,184 | 2.1 | % | 2,822,000 | 1.8 | % | 6.67 | 36,959,671 | 11,372,160 | |||||||||||||||||||||||||
New Jersey | 3 | 471,765 | 468,735 | 1.9 | % | 6,597,000 | 4.1 | % | 14.07 | 92,423,938 | 49,644,761 | |||||||||||||||||||||||||
Alabama | 2 | 451,832 | 451,832 | 1.8 | % | 2,670,000 | 1.7 | % | 5.91 | 39,714,135 | 16,174,712 | |||||||||||||||||||||||||
Virginia | 5 | 407,443 | 407,443 | 1.7 | % | 2,474,000 | 1.6 | % | 6.07 | 35,059,207 | 3,133,095 | |||||||||||||||||||||||||
Colorado | 2 | 295,227 | 295,227 | 1.2 | % | 2,441,000 | 1.5 | % | 8.27 | 35,694,134 | 14,025,354 | |||||||||||||||||||||||||
Arizona | 1 | 288,045 | 288,045 | 1.2 | % | 1,409,000 | 0.9 | % | 4.89 | 16,824,226 | 1,561,589 | |||||||||||||||||||||||||
Wisconsin | 2 | 238,666 | 238,666 | 1.0 | % | 1,295,000 | 0.8 | % | 5.43 | 16,377,221 | 1,792,489 | |||||||||||||||||||||||||
Washington | 1 | 210,445 | 210,445 | 0.9 | % | 1,962,000 | 1.2 | % | 9.32 | 30,369,301 | 14,873,208 | |||||||||||||||||||||||||
Louisiana | 1 | 175,315 | 175,315 | 0.7 | % | 1,274,000 | 0.8 | % | 7.27 | 18,425,875 | 9,305,177 | |||||||||||||||||||||||||
Maryland | 1 | 148,881 | 148,881 | 0.6 | % | 1,455,000 | 0.9 | % | 9.77 | 14,554,355 | -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 | 8,029,768 | |||||||||||||||||||||||||
Minnesota | 1 | 60,370 | 60,370 | 0.2 | % | 372,000 | 0.2 | % | 6.16 | 5,231,864 | 1,436,446 | |||||||||||||||||||||||||
Connecticut | 1 | 54,812 | 54,812 | 0.2 | % | 307,000 | 0.2 | % | 5.60 | 3,525,917 | -0- | |||||||||||||||||||||||||
Iowa | 1 | 36,270 | 36,270 | 0.1 | % | 179,000 | 0.1 | % | 4.94 | 2,543,770 | -0- | |||||||||||||||||||||||||
Total as of 3/31/21 | 121 | 24,582,127 | 24,498,241 | 100.0 | % | $ | 159,484,000 | 100.0 | % | $ | 6.51 | $ | 2,212,662,780 | (A) | $ | 874,175,123 |
(A) | Does not include unamortized debt issuance costs of $7,950,710. |
SECOND quarter Fiscal year 2021 supplemental information | 15 |
(unaudited)
Property | Square | % of Total | Annual | % of Total | Rent Per sf | Lease Exp. Term in | Undepreciated | Mortgage | |||||||||||||||||||||||||||||
Fiscal Year | Count | Footage | Sf | Rent | Ann. Rent | Occup. | Years | Cost | Balance | ||||||||||||||||||||||||||||
2021 | 2 | 111,933 | 0.5 | % | $ | 702,000 | 0.4 | % | $ | 6.27 | 0.3 | $ | 8,629,094 | $ | -0- | ||||||||||||||||||||||
2022 | 5 | 1,065,169 | 4.3 | % | 5,623,000 | 3.5 | % | 5.28 | 0.9 | 71,748,060 | 18,219,681 | ||||||||||||||||||||||||||
2023 | (A) | 16 | 2,117,731 | 8.6 | % | 12,076,000 | 7.6 | % | 5.70 | 2.2 | 149,134,784 | 15,789,253 | |||||||||||||||||||||||||
2024 | 13 | 1,887,039 | 7.7 | % | 11,797,000 | 7.4 | % | 6.25 | 3.1 | 137,535,999 | 20,969,151 | ||||||||||||||||||||||||||
2025 | (A) | 11 | 2,607,541 | 10.6 | % | 13,027,000 | 8.2 | % | 5.00 | 4.1 | 170,717,740 | 60,301,840 | |||||||||||||||||||||||||
2026 | (A) | 12 | 1,626,798 | 6.6 | % | 10,137,000 | 6.4 | % | 6.23 | 5.2 | 128,584,115 | 19,511,980 | |||||||||||||||||||||||||
2027 | 13 | 2,390,188 | 9.7 | % | 13,297,000 | 8.3 | % | 5.56 | 6.4 | 187,718,445 | 60,548,227 | ||||||||||||||||||||||||||
2028 | 10 | 2,172,458 | 8.8 | % | 11,857,000 | 7.4 | % | 5.46 | 7.0 | 152,892,273 | 41,920,192 | ||||||||||||||||||||||||||
2029 | 9 | 1,831,303 | 7.4 | % | 10,610,000 | 6.7 | % | 5.79 | 8.1 | 147,852,403 | 58,048,178 | ||||||||||||||||||||||||||
2030 | 6 | 1,162,402 | 4.7 | % | 9,143,000 | 5.7 | % | 7.87 | 9.0 | 134,734,635 | 64,605,100 | ||||||||||||||||||||||||||
2031 | 6 | 1,218,941 | 5.0 | % | 9,684,000 | 6.1 | % | 7.94 | 9.6 | 135,727,800 | 64,155,534 | ||||||||||||||||||||||||||
2032 | 8 | 2,131,983 | 8.7 | % | 18,862,000 | 11.8 | % | 8.85 | 11.1 | 291,154,266 | 157,072,940 | ||||||||||||||||||||||||||
2033 | 3 | 1,038,508 | 4.2 | % | 8,844,000 | 5.5 | % | 8.52 | 12.0 | 137,743,258 | 77,494,094 | ||||||||||||||||||||||||||
2034 | 3 | 1,561,256 | 6.4 | % | 9,365,000 | 5.9 | % | 6.00 | 13.0 | 127,748,518 | 75,249,680 | ||||||||||||||||||||||||||
2035 | 3 | 856,283 | 3.5 | % | 8,343,000 | 5.2 | % | 9.74 | 14.3 | 131,119,464 | 83,709,173 | ||||||||||||||||||||||||||
2041 | 1 | 657,518 | 2.7 | % | 5,501,000 | 3.5 | % | 8.37 | 19.7 | 93,963,705 | 56,580,100 | ||||||||||||||||||||||||||
Various tenants at retail shopping center | 1 | 64,220 | 0.3 | % | 616,000 | 0.4 | % | 10.07 | -0- | 3,139,564 | -0- | ||||||||||||||||||||||||||
Vacant | (A) | 1 | 80,856 | 0.3 | % | -0- | 0.0 | % | -0- | -0- | 2,518,657 | -0- | |||||||||||||||||||||||||
Total as of 3/31/21 | 121 | 24,582,127 | 100.0 | % | $ | 159,484,000 | 100.0 | % | $ | 6.51 | 7.4 | $ | 2,212,662,780 | (B) | $ | 874,175,123 |
(A) | Included in 2023 is Altec Industries and included in 2026 is Woodstream Corporation, 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) | Does not include unamortized debt issuance costs of $7,950,710. |
SECOND quarter Fiscal year 2021 supplemental information | 16 |
Recent Acquisitions During Fiscal 2021
(unaudited)
City | Date of | Square | Annual | Rent Per | Lease | Purchase | Initial Mortgage | |||||||||||||||||||||||||
No | Tenant | (MSA) | State | Acquisition | Footage | Rent | sf Occup. | Expiration | Price | Balance | ||||||||||||||||||||||
1 | FedEx Ground Package System, Inc. | Plain City (Columbus) | OH | 12/17/2020 | 500,268 | $ | 4,569,000 | $ | 9.13 | 9/30/2035 | $ | 73,304,000 | $ | 47,000,000 | ||||||||||||||||||
2 | Home Depot U.S.A., Inc. | Locust Grove (Atlanta) | GA | 12/24/2020 | 657,518 | 5,501,000 | 8.37 | 11/30/2040 | 96,688,000 | 57,000,000 | ||||||||||||||||||||||
As of 3/31/21 | 1,157,786 | $ | 10,070,000 | $ | 8.70 | $ | 169,992,000 | $ | 104,000,000 |
SECOND quarter Fiscal year 2021 supplemental information | 17 |
(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 | $ | 3,098,000 | $ | 3.59 | 7.3 | $ | 36,914,917 | $ | 17,077,442 | ||||||||||||||||||||||
2 | Shaw Industries, Inc. | Savannah | GA | 2018 | 100.0 | % | 831,764 | 3,563,000 | 4.28 | 6.5 | 56,025,945 | 27,307,666 | ||||||||||||||||||||||||||
3 | ULTA, Inc. | Greenwood (Indianapolis) | IN | 2015 | 100.0 | % | 671,354 | 2,782,000 | 4.14 | 4.3 | 37,773,835 | 16,608,157 | ||||||||||||||||||||||||||
4 | Home Depot U.S.A., Inc. | Locust Grove (Atlanta) | GA | 2021 | 100.0 | % | 657,518 | 5,501,000 | 8.37 | 19.7 | 93,963,705 | 56,580,100 | ||||||||||||||||||||||||||
5 | Amazon.com.indc, LLC | Greenwood (Indianapolis) | IN | 2020 | 100.0 | % | 615,747 | 4,991,000 | 8.11 | 13.4 | 79,363,910 | 49,839,143 | ||||||||||||||||||||||||||
6 | Jim Beam Brands Company (Beam Suntory) | Frankfort (Lexington) | KY | 2015 | 100.0 | % | 599,840 | 2,112,000 | 3.52 | 3.8 | 28,000,000 | 14,053,653 | ||||||||||||||||||||||||||
7 | TreeHouse Private Brands, Inc. | Buckner (Louisville) | KY | 2014 | 100.0 | % | 558,509 | 2,267,000 | 4.06 | 12.6 | 26,807,852 | 13,398,393 | ||||||||||||||||||||||||||
8 | FedEx Ground Package System, Inc. | Plain City (Columbus) | OH | 2021 | 100.0 | % | 500,268 | 4,569,000 | 9.13 | 14.5 | 71,741,593 | 46,583,680 | ||||||||||||||||||||||||||
9 | FedEx Forward Depots, Inc. | Memphis | TN | 2010 | 100.0 | % | 449,900 | 1,394,000 | 3.10 | 8.2 | 16,092,852 | 2,839,266 | ||||||||||||||||||||||||||
10 | B. Braun Medical Inc. | Daytona Beach | FL | 2018 | 100.0 | % | 399,440 | 2,330,000 | 5.83 | 11.9 | 30,939,752 | 16,700,284 | ||||||||||||||||||||||||||
11 | UGN, Inc. | Monroe (Cincinnati) | OH | 2015 | 100.0 | % | 387,000 | 2,107,000 | 5.44 | 12.9 | 21,576,756 | 12,012,144 | ||||||||||||||||||||||||||
12 | Woodstream Corporation | St. Joseph | MO | 2001 | 100.0 | % | 256,000 | 987,000 | 3.86 | 5.5 | 8,965,820 | -0- | ||||||||||||||||||||||||||
Altec Industries, Inc. | St. Joseph | MO | 2001 | 100.0 | % | 126,880 | 378,000 | 2.98 | 1.9 | 4,443,684 | -0- | |||||||||||||||||||||||||||
13 | CBOCS Distribution, Inc. (Cracker Barrel) | Lebanon (Nashville) | TN | 2011 | 100.0 | % | 381,240 | 1,490,000 | 3.91 | 3.3 | 14,215,126 | -0- | ||||||||||||||||||||||||||
14 | FedEx Ground Package System, Inc. | Braselton (Atlanta) | GA | 2018 | 100.0 | % | 373,750 | 3,801,000 | 10.17 | 11.9 | 60,227,126 | 34,803,477 | ||||||||||||||||||||||||||
15 | Best Buy Warehousing Logistics, Inc. | Streetsboro (Cleveland) | OH | 2012 | 100.0 | % | 368,060 | 1,725,000 | 4.69 | 0.8 | 19,600,000 | 7,683,077 | ||||||||||||||||||||||||||
16 | Amazon.com Services, Inc. (Amazon.com, Inc.) | Mobile | AL | 2018 | 100.0 | % | 362,942 | 2,065,000 | 5.69 | 7.7 | 33,052,316 | 16,174,712 | ||||||||||||||||||||||||||
17 | FedEx Ground Package System, Inc. | Concord (Charlotte) | NC | 2017 | 100.0 | % | 354,482 | 2,537,000 | 7.16 | 11.2 | 40,043,145 | 21,333,981 | ||||||||||||||||||||||||||
18 | FedEx Ground Package System, Inc. | Mesquite (Dallas) | TX | 2017 | 100.0 | % | 351,874 | 3,209,000 | 9.12 | 11.0 | 49,880,493 | 26,413,973 | ||||||||||||||||||||||||||
19 | Toyota Tsusho America, Inc. | Lafayette | IN | 2019 | 100.0 | % | 350,418 | 1,722,000 | 4.91 | 8.3 | 25,078,587 | 15,672,277 | ||||||||||||||||||||||||||
20 | FedEx Ground Package System, Inc. | Trenton | NJ | 2019 | 100.0 | % | 347,145 | 5,328,000 | 15.35 | 11.3 | 83,987,622 | 48,511,947 | ||||||||||||||||||||||||||
21 | FedEx Ground Package System, Inc. | Walker (Grand Rapids) | MI | 2017 | 100.0 | % | 343,483 | 2,106,000 | 6.13 | 10.8 | 31,654,987 | 16,628,521 | ||||||||||||||||||||||||||
22 | FedEx Ground Package System, Inc. | Hamburg (Buffalo) | NY | 2017 | 100.0 | % | 338,584 | 2,329,000 | 6.88 | 10.0 | 35,131,977 | 18,097,558 | ||||||||||||||||||||||||||
23 | FedEx Ground Package System, Inc. | Concord (Charlotte) | NC | 2016 | 100.0 | % | 330,717 | 2,237,000 | 6.76 | 4.3 | 33,053,688 | 14,828,954 | ||||||||||||||||||||||||||
24 | FedEx Ground Package System, Inc. | Indianapolis | IN | 2014 | 100.0 | % | 327,822 | 1,717,000 | 5.24 | 6.6 | 25,504,083 | 7,903,420 | ||||||||||||||||||||||||||
25 | Autoneum North America, Inc. | Aiken (Augusta, GA) | SC | 2017 | 100.0 | % | 315,560 | 1,746,000 | 5.53 | 11.1 | 21,040,396 | 12,436,595 | ||||||||||||||||||||||||||
26 | FedEx Ground Package System, Inc. | Olathe (Kansas City) | KS | 2016 | 100.0 | % | 313,763 | 2,553,000 | 8.14 | 10.2 | 33,074,860 | 16,871,156 | ||||||||||||||||||||||||||
27 | FedEx Ground Package System, Inc. | Ft. Worth (Dallas) | TX | 2015 | 100.0 | % | 312,923 | 2,394,000 | 7.65 | 9.1 | 35,622,709 | 17,128,242 | ||||||||||||||||||||||||||
28 | FedEx Ground Package System, Inc. | Davenport (Orlando) | FL | 2016 | 100.0 | % | 310,922 | 2,625,000 | 8.44 | 10.1 | 38,115,782 | 20,023,189 | ||||||||||||||||||||||||||
29 | FedEx Ground Package System, Inc. | Jacksonville | FL | 2015 | 100.0 | % | 304,859 | 1,998,000 | 6.55 | 8.8 | 30,925,530 | 13,226,732 | ||||||||||||||||||||||||||
30 | Science Applications International Corporation | Hanahan (Charleston) | SC | 2005 | 100.0 | % | 302,400 | 1,708,000 | 5.65 | 2.6 | 14,463,148 | -0- | ||||||||||||||||||||||||||
31 | Amazon.com Services, Inc. (Amazon.com, Inc.) | Oklahoma City | OK | 2018 | 100.0 | % | 300,000 | 1,948,000 | 6.49 | 6.6 | 29,878,942 | 16,939,330 | ||||||||||||||||||||||||||
32 | International Paper Company | Kenton | OH | 2017 | 100.0 | % | 298,472 | 1,281,000 | 4.29 | 6.4 | 18,730,500 | 9,923,257 | ||||||||||||||||||||||||||
33 | Western Container Corp. (Coca-Cola) | Tolleson (Phoenix) | AZ | 2003 | 100.0 | % | 288,045 | 1,409,000 | 4.89 | 6.1 | 16,824,226 | 1,561,589 | ||||||||||||||||||||||||||
34 | FedEx Ground Package System, Inc. | Greensboro | NC | 2020 | 100.0 | % | 286,281 | 3,002,000 | 10.49 | 14.1 | 46,710,877 | 29,095,725 | ||||||||||||||||||||||||||
35 | International Paper Company | Edwardsville (Kansas City) | KS | 2014 | 100.0 | % | 280,019 | 1,382,000 | 4.94 | 2.4 | 18,294,108 | 7,218,694 | ||||||||||||||||||||||||||
36 | FedEx Ground Package System, Inc. | Charleston | SC | 2018 | 100.0 | % | 265,318 | 2,713,000 | 10.23 | 12.3 | 46,576,380 | 25,990,333 | ||||||||||||||||||||||||||
37 | NF&M International, Inc. | Monaca (Pittsburgh) | PA | 1977 | 68.4 | % | 255,658 | 842,000 | 4.82 | 3.8 | 7,963,722 | -0- | ||||||||||||||||||||||||||
38 | FedEx Ground Package System, Inc. | Orion | MI | 2007 | 100.0 | % | 245,633 | 1,908,000 | 7.77 | 2.2 | 22,986,234 | -0- | ||||||||||||||||||||||||||
39 | FedEx Ground Package System, Inc. | Homestead (Miami) | FL | 2017 | 100.0 | % | 237,756 | 2,282,000 | 9.60 | 11.0 | 37,911,556 | 19,910,837 | ||||||||||||||||||||||||||
40 | Anda Pharmaceuticals, Inc. | Olive Branch (Memphis, TN) | MS | 2012 | 100.0 | % | 234,660 | 1,220,000 | 5.20 | 1.3 | 14,550,000 | 5,912,358 | ||||||||||||||||||||||||||
41 | FedEx Ground Package System, Inc. | Colorado Springs | CO | 2016 | 100.0 | % | 225,362 | 1,832,000 | 8.13 | 4.8 | 29,320,066 | 14,025,354 | ||||||||||||||||||||||||||
42 | Mickey Thompson Performance Tires and Wheels (Cooper Tire) | Stow | OH | 2017 | 100.0 | % | 219,765 | 1,537,000 | 6.99 | 6.4 | 18,934,065 | 10,461,574 | ||||||||||||||||||||||||||
43 | Rinnai America Corporation | Griffin (Atlanta) | GA | 2006 | 100.0 | % | 218,120 | 913,000 | 4.19 | 1.8 | 15,082,217 | -0- | ||||||||||||||||||||||||||
44 | FedEx Ground Package System, Inc. | Ft. Myers | FL | 2017 | 100.0 | % | 213,672 | 1,418,000 | 6.64 | 6.4 | 21,684,310 | 11,294,141 | ||||||||||||||||||||||||||
45 | FedEx Ground Package System, Inc. | Burlington (Seattle/Everett) | WA | 2016 | 100.0 | % | 210,445 | 1,962,000 | 9.32 | 9.4 | 30,369,301 | 14,873,208 | ||||||||||||||||||||||||||
46 | FedEx Ground Package System, Inc. | Sauget (St. Louis, MO) | IL | 2015 | 100.0 | % | 198,729 | 1,036,000 | 5.21 | 8.2 | 15,265,895 | 6,993,784 | ||||||||||||||||||||||||||
47 | Anheuser-Busch, Inc. | Granite City (St. Louis, MO) | IL | 2001 | 100.0 | % | 184,800 | 854,000 | 4.62 | 0.7 | 12,757,540 | -0- | ||||||||||||||||||||||||||
48 | Carrier Enterprise, LLC (Carrier Global Corporation) | Carrollton (Dallas) | TX | 2010 | 100.0 | % | 184,317 | 1,160,000 | 6.29 | 2.8 | 18,494,917 | 4,265,418 | ||||||||||||||||||||||||||
49 | FedEx Ground Package System, Inc. | Spring (Houston) | TX | 2014 | 100.0 | % | 181,176 | 1,581,000 | 8.73 | 3.5 | 19,328,922 | 6,280,542 | ||||||||||||||||||||||||||
50 | Carlstar Group, LLC | Edwardsville (Kansas City) | KS | 2003 | 100.0 | % | 179,280 | 771,000 | 4.30 | 2.3 | 7,282,986 | -0- | ||||||||||||||||||||||||||
51 | FedEx Ground Package System, Inc. | Ft. Mill (Charlotte, NC) | SC | 2010 | 100.0 | % | 176,939 | 1,598,000 | 9.03 | 7.4 | 17,063,643 | -0- | ||||||||||||||||||||||||||
52 | FedEx Ground Package System, Inc. | Covington (New Orleans) | LA | 2016 | 100.0 | % | 175,315 | 1,274,000 | 7.27 | 4.3 | 18,425,875 | 9,305,177 | ||||||||||||||||||||||||||
53 | FedEx Ground Package System, Inc. | Tampa | FL | 2004 | 100.0 | % | 174,975 | 1,624,000 | 9.28 | 5.3 | 19,745,245 | -0- | ||||||||||||||||||||||||||
54 | FedEx Ground Package System, Inc. | Livonia (Detroit) | MI | 2013 | 100.0 | % | 172,668 | 1,194,000 | 6.92 | 1.0 | 13,879,697 | 4,624,246 | ||||||||||||||||||||||||||
55 | Home Depot U.S.A., Inc. | Montgomery (Chicago) | IL | 2004 | 100.0 | % | 171,230 | 1,079,000 | 6.30 | 1.8 | 11,303,317 | -0- | ||||||||||||||||||||||||||
56 | FedEx Ground Package System, Inc. | Edinburg | TX | 2011 | 100.0 | % | 164,207 | 1,097,000 | 6.68 | 5.5 | 12,039,014 | -0- | ||||||||||||||||||||||||||
57 | FedEx Ground Package System, Inc. | Lindale (Tyler) | TX | 2015 | 100.0 | % | 163,383 | 725,000 | 4.44 | 3.3 | 9,965,550 | 4,612,911 | ||||||||||||||||||||||||||
58 | Bunzl Distribution Midcentral, Inc. | Kansas City | MO | 2015 | 100.0 | % | 158,417 | 714,000 | 4.51 | 5.5 | 10,003,235 | -0- | ||||||||||||||||||||||||||
59 | FedEx Ground Package System, Inc. | Oklahoma City | OK | 2012 | 100.0 | % | 158,340 | 1,048,000 | 6.62 | 4.3 | 12,624,833 | 2,057,230 | ||||||||||||||||||||||||||
60 | Magna Seating of America, Inc. | Lancaster (Columbus) | OH | 2020 | 100.0 | % | 152,995 | 1,201,000 | 7.85 | 8.8 | 17,557,830 | 8,709,964 |
SECOND quarter Fiscal year 2021 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 | |||||||||||||||||||||||||||||
61 | FedEx Ground Package System, Inc. | Waco | TX | 2012 | 100.0 | % | 150,710 | $ | 1,078,000 | $ | 7.15 | 4.4 | $ | 12,551,368 | $ | 3,448,669 | ||||||||||||||||||||||||
62 | FedEx Ground Package System, Inc. | Beltsville (Washington, DC) | MD | 2001 | 100.0 | % | 148,881 | 1,455,000 | 9.77 | 7.3 | 14,554,355 | -0- | ||||||||||||||||||||||||||||
63 | Victory Packaging, L.P. | Fayetteville | NC | 1997 | 100.0 | % | 148,000 | 504,000 | 3.41 | 3.9 | 5,458,279 | -0- | ||||||||||||||||||||||||||||
64 | FedEx Ground Package System, Inc. | El Paso | TX | 2006 | 100.0 | % | 144,199 | 1,345,000 | 9.33 | 2.5 | 12,431,192 | -0- | ||||||||||||||||||||||||||||
65 | FedEx Ground Package System, Inc. | Cocoa | FL | 2008 | 100.0 | % | 144,138 | 1,112,000 | 7.71 | 3.5 | 14,127,449 | -0- | ||||||||||||||||||||||||||||
66 | FedEx Ground Package System, Inc. | Cudahy (Milwaukee) | WI | 2001 | 100.0 | % | 139,564 | 827,000 | 5.93 | 6.3 | 9,807,221 | -0- | ||||||||||||||||||||||||||||
67 | Challenger Lifts, Inc. (Snap-On Inc.) | Louisville | KY | 2016 | 100.0 | % | 137,500 | 858,000 | 6.24 | 5.2 | 11,304,000 | 5,486,626 | ||||||||||||||||||||||||||||
68 | FedEx Ground Package System, Inc. | Richfield (Cleveland) | OH | 2006 | 100.0 | % | 131,152 | 1,493,000 | 11.38 | 3.5 | 16,494,189 | -0- | ||||||||||||||||||||||||||||
69 | FedEx Ground Package System, Inc. | Savannah | GA | 2019 | 100.0 | % | 126,520 | 1,765,000 | 13.95 | 7.6 | 27,531,560 | 15,550,677 | ||||||||||||||||||||||||||||
70 | General Electric Company | Imperial (Pittsburgh) | PA | 2016 | 100.0 | % | 125,860 | 1,329,000 | 10.56 | 9.8 | 19,972,983 | 9,163,631 | ||||||||||||||||||||||||||||
71 | FedEx Ground Package System, Inc. | Wheeling (Chicago) | IL | 2003 | 100.0 | % | 123,000 | 1,272,000 | 10.34 | 6.2 | 19,015,257 | -0- | ||||||||||||||||||||||||||||
72 | FedEx Ground Package System, Inc. | Altoona | PA | 2014 | 100.0 | % | 122,522 | 651,000 | 5.31 | 2.4 | 9,022,966 | 2,208,529 | ||||||||||||||||||||||||||||
73 | FedEx Corporation | Charleston | SC | 2018 | 100.0 | % | 121,683 | 1,314,000 | 10.80 | 11.4 | 21,538,966 | 11,837,086 | ||||||||||||||||||||||||||||
74 | Amazon.com Services, LLC | Oklahoma City | OK | 2020 | 100.0 | % | 120,780 | 935,000 | 7.74 | 9.4 | 14,962,513 | 9,534,140 | ||||||||||||||||||||||||||||
75 | FedEx Corporation | Mechanicsville (Richmond) | VA | 2001 | 100.0 | % | 112,799 | 541,000 | 4.80 | 2.1 | 7,836,425 | -0- | ||||||||||||||||||||||||||||
76 | FedEx Corporation | Orlando | FL | 2008 | 100.0 | % | 110,621 | 666,000 | 6.02 | 6.7 | 8,810,059 | -0- | ||||||||||||||||||||||||||||
77 | Bunzl Distribution Oklahoma, Inc. | Oklahoma City | OK | 2017 | 100.0 | % | 110,361 | 743,000 | 6.73 | 3.4 | 8,728,439 | 4,469,872 | ||||||||||||||||||||||||||||
78 | Style Crest, Inc. | Winston-Salem | NC | 2002 | 100.0 | % | 106,507 | 433,000 | 4.07 | 5.0 | 7,315,077 | -0- | ||||||||||||||||||||||||||||
79 | Sonwil Distribution Center, Inc. | Cheektowaga (Buffalo) | NY | 2002 | 100.0 | % | 104,981 | 630,000 | 6.00 | 0.8 | 10,960,823 | -0- | ||||||||||||||||||||||||||||
80 | FedEx Ground Package System, Inc. | West Chester Twp. (Cincinnati) | OH | 2000 | 100.0 | % | 103,818 | 560,000 | 5.39 | 2.4 | 5,733,686 | -0- | ||||||||||||||||||||||||||||
81 | FedEx Ground Package System, Inc. | Roanoke | VA | 2013 | 100.0 | % | 103,580 | 755,000 | 7.29 | 2.1 | 10,200,000 | 3,133,095 | ||||||||||||||||||||||||||||
82 | Pittsburgh Glass Works, LLC, a Division of VITRO | O’ Fallon (St. Louis) | MO | 1994 | 100.0 | % | 102,135 | 508,000 | 4.97 | 5.3 | 4,249,615 | -0- | ||||||||||||||||||||||||||||
83 | FedEx Ground Package System, Inc. | Green Bay | WI | 2013 | 100.0 | % | 99,102 | 468,000 | 4.72 | 2.2 | 6,570,000 | 1,792,489 | ||||||||||||||||||||||||||||
84 | Dakota Bodies, LLC | Liberty (Kansas City) | MO | 1998 | 100.0 | % | 96,687 | 416,000 | 4.30 | 5.1 | 7,797,827 | -0- | ||||||||||||||||||||||||||||
85 | FedEx Corporation | Jacksonville | FL | 1999 | 100.0 | % | 95,883 | 536,000 | 5.59 | 8.2 | 6,584,384 | -0- | ||||||||||||||||||||||||||||
86 | FedEx Corporation | Tampa | FL | 2006 | 100.0 | % | 95,662 | 603,000 | 6.30 | 6.7 | 8,274,811 | -0- | ||||||||||||||||||||||||||||
87 | Amazon.com Services, Inc. | Hanahan (Charleston) | SC | 2005 | 100.0 | % | 91,776 | 803,000 | 8.75 | 8.3 | 9,305,908 | -0- | ||||||||||||||||||||||||||||
88 | National Oilwell Varco, Inc. | Houston | TX | 2010 | 100.0 | % | 91,295 | 801,000 | 8.77 | 8.5 | 8,190,901 | 817,462 | ||||||||||||||||||||||||||||
89 | Joseph T. Ryerson and Son, Inc. | Elgin (Chicago) | IL | 2002 | 100.0 | % | 89,123 | 519,000 | 5.82 | 3.8 | 7,184,598 | -0- | ||||||||||||||||||||||||||||
90 | FedEx Corporation | Omaha | NE | 1999 | 100.0 | % | 89,115 | 446,000 | 5.00 | 2.6 | 5,963,626 | -0- | ||||||||||||||||||||||||||||
91 | FedEx Ground Package System, Inc. | Huntsville | AL | 2005 | 100.0 | % | 88,890 | 605,000 | 6.81 | 5.3 | 6,661,819 | -0- | ||||||||||||||||||||||||||||
92 | CHEP USA, Inc. | Roanoke | VA | 2007 | 100.0 | % | 83,000 | 509,000 | 6.13 | 3.9 | 7,463,672 | -0- | ||||||||||||||||||||||||||||
93 | FedEx Corporation | Bedford Heights (Cleveland) | OH | 2007 | 100.0 | % | 82,269 | 438,000 | 5.32 | 7.4 | 7,304,467 | -0- | ||||||||||||||||||||||||||||
94 | United Parcel Service, Inc. | Halfmoon (Albany) | NY | 2012 | 100.0 | % | 75,000 | 541,000 | 7.21 | 10.0 | 5,906,281 | -0- | ||||||||||||||||||||||||||||
95 | FedEx Corporation | Schaumburg (Chicago) | IL | 1997 | 100.0 | % | 73,500 | 478,000 | 6.50 | 6.0 | 5,447,053 | -0- | ||||||||||||||||||||||||||||
96 | FedEx Corporation | Romulus (Detroit) | MI | 1998 | 100.0 | % | 71,933 | 370,000 | 5.14 | 0.2 | 4,949,251 | -0- | ||||||||||||||||||||||||||||
97 | FedEx Ground Package System, Inc. | Denver | CO | 2005 | 100.0 | % | 69,865 | 609,000 | 8.72 | 4.6 | 6,374,068 | -0- | ||||||||||||||||||||||||||||
98 | FedEx Corporation | Ogden (Salt Lake City) | UT | 2020 | 100.0 | % | 69,734 | 772,000 | 11.07 | 14.0 | 12,666,994 | 8,029,768 | ||||||||||||||||||||||||||||
99 | Tampa Bay Grand Prix | Tampa | FL | 2005 | 100.0 | % | 68,385 | 369,000 | 5.40 | 6.5 | 5,677,982 | -0- | ||||||||||||||||||||||||||||
100 | Sherwin-Williams Company | Rockford | IL | 2011 | 100.0 | % | 66,387 | 486,000 | 7.32 | 2.8 | 5,551,227 | -0- | ||||||||||||||||||||||||||||
101 | Various Tenants at Retail Shopping Center | Somerset | NJ | 1970 | 95.0 | % | 64,220 | 616,000 | 10.07 | na | 3,139,564 | -0- | ||||||||||||||||||||||||||||
102 | Keurig Dr Pepper | Cincinnati | OH | 2015 | 100.0 | % | 63,840 | 488,000 | 7.64 | 8.5 | 6,750,000 | -0- | ||||||||||||||||||||||||||||
103 | FedEx Corporation | Chattanooga | TN | 2007 | 100.0 | % | 60,637 | 319,000 | 5.26 | 1.6 | 5,369,272 | -0- | ||||||||||||||||||||||||||||
104 | SOFIVE, Inc. | (A) | Carlstadt (New York, NY) | NJ | 2001 | 100.0 | % | 60,400 | 653,000 | 10.81 | 8.8 | 5,296,752 | 1,132,814 | |||||||||||||||||||||||||||
105 | FedEx Ground Package System, Inc. | Stewartville (Rochester) | MN | 2013 | 100.0 | % | 60,370 | 372,000 | 6.16 | 2.2 | 5,231,864 | 1,436,446 | ||||||||||||||||||||||||||||
106 | Locke Supply Co. | Richmond | VA | 2004 | 100.0 | % | 60,000 | 340,000 | 5.67 | 11.1 | 5,097,101 | -0- | ||||||||||||||||||||||||||||
107 | FedEx Ground Package System, Inc. | Augusta | GA | 2005 | 100.0 | % | 59,358 | 513,000 | 8.64 | 2.2 | 5,363,304 | -0- | ||||||||||||||||||||||||||||
108 | Hartford Healthcare Corporation | Newington (Hartford) | CT | 2001 | 100.0 | % | 54,812 | 307,000 | 5.60 | 10.1 | 3,525,917 | -0- | ||||||||||||||||||||||||||||
109 | Siemens Real Estate | Lebanon (Cincinnati) | OH | 2012 | 100.0 | % | 51,130 | 464,000 | 9.07 | 3.1 | 4,554,684 | -0- | ||||||||||||||||||||||||||||
110 | FedEx Corporation | Charlottesville | VA | 1999 | 100.0 | % | 48,064 | 329,000 | 6.85 | 6.4 | 4,462,009 | -0- | ||||||||||||||||||||||||||||
111 | FedEx Ground Package System, Inc. | Corpus Christi | TX | 2012 | 100.0 | % | 46,253 | 454,000 | 9.82 | 5.4 | 4,808,329 | -0- | ||||||||||||||||||||||||||||
112 | Keurig Dr Pepper | Tulsa | OK | 2014 | 100.0 | % | 46,240 | 269,000 | 5.82 | 2.9 | 3,748,031 | 1,340,408 | ||||||||||||||||||||||||||||
113 | Heartland Coca-Cola Bottling Company, LLC (Coca-Cola) | Topeka | KS | 2009 | 100.0 | % | 40,000 | 332,000 | 8.30 | 0.5 | 3,679,843 | -0- | ||||||||||||||||||||||||||||
114 | Collins Aerospace Systems (Raytheon Technologies Corporation) | Rockford | IL | 2015 | 100.0 | % | 38,833 | 368,000 | 9.48 | 6.3 | 5,100,000 | -0- | ||||||||||||||||||||||||||||
115 | Foundation Building Materials, LLC | Urbandale (Des Moines) | IA | 1994 | 100.0 | % | 36,270 | 179,000 | 4.94 | 6.8 | 2,543,770 | -0- | ||||||||||||||||||||||||||||
116 | FedEx Corporation | Richland (Jackson) | MS | 1994 | 100.0 | % | 36,000 | 120,000 | 3.33 | 3.0 | 1,900,691 | -0- |
SECOND quarter Fiscal year 2021 supplemental information | 19 |
Property Table
(unaudited)
Rent | Lease Exp. Term | ||||||||||||||||||||||||||||||||||||
City | Fiscal Year | Square | Annual | Per sf | in | Undepreciated | Mortgage | ||||||||||||||||||||||||||||||
No | Tenant | (MSA) | State | Acquisition | Occup. | Footage | Rent | Occup. | Years | Cost | Balance | ||||||||||||||||||||||||||
117 | FedEx Corporation | Punta Gorda | FL | 2007 | 100.0 | % | 34,624 | $ | 284,000 | $ | 8.20 | 6.3 | $ | 4,133,510 | $ | -0- | |||||||||||||||||||||
118 | FedEx Corporation | Lakeland | FL | 2006 | 100.0 | % | 32,105 | 155,000 | 4.83 | 6.7 | 2,043,226 | -0- | |||||||||||||||||||||||||
119 | FedEx Corporation | Augusta | GA | 2006 | 100.0 | % | 30,184 | 121,000 | 4.01 | 1.7 | 1,983,529 | -0- | |||||||||||||||||||||||||
120 | Graybar Electric Company | Ridgeland (Jackson) | MS | 1993 | 100.0 | % | 26,340 | 122,000 | 4.63 | 4.3 | 2,736,527 | -0- | |||||||||||||||||||||||||
121 | Sherwin-Williams Company | Burr Ridge (Chicago) | IL | 1997 | 100.0 | % | 12,500 | 162,000 | 12.96 | 5.6 | 1,876,367 | -0- | |||||||||||||||||||||||||
Total as of 3/31/21 | 99.7 | % | 24,582,127 | $ | 159,484,000 | $ | 6.51 | 7.4 | $ | 2,212,662,780 | (B) | $ | 874,175,123 |
(A) | Subsequent to the March 31, 2021 quarter end, on April 15, 2021, we sold our 60,400 square foot building located in Carlstadt (New York, NY), NJ for $13.0 million. | |
(B) | Does not include unamortized debt issuance costs of $7,950,710. |
SECOND quarter Fiscal year 2021 supplemental information | 20 |
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, gains on the sale of securities, lease termination income, non-recurring severance expense, non-recurring strategic alternative & proxy costs, 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 strategic alternative & proxy costs, 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, gain on sale of securities transactions, and lease termination income. The components of NOI consist of recurring rental and reimbursement revenue, less real estate taxes and operating expenses, such as insurance, utilities, and repairs and maintenance. | |
● | 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 less gain on sale of real estate investment and gain on sale of securities. |
FFO, AFFO, NOI, Same Property NOI, Same Property Cash NOI and Adjusted EBITDA, do not represent cash generated from operating activities in accordance with U.S. GAAP and are not necessarily indicative of cash available to fund cash needs, including the repayment of principal on debt and payment of dividends and distributions. FFO, AFFO, NOI, Same Property NOI, Same Property Cash NOI and Adjusted EBITDA should not be considered as substitutes for net income applicable to common shareholders (calculated in accordance with U.S. GAAP) as a measure of results of operations or cash flows (calculated in accordance with U.S. GAAP) as a measure of liquidity. FFO, AFFO, NOI, Same Property NOI, Same Property Cash NOI and Adjusted EBITDA, as currently calculated by us, may not be comparable to similarly titled, but variously calculated, measures of other REITs.
SECOND quarter Fiscal year 2021 supplemental information | 21 |
FOR IMMEDIATE RELEASE
May 4, 2021
Contact: Becky Coleridge
732-577-9996
MONMOUTH REAL ESTATE REPORTS RESULTS FOR
THE SECOND QUARTER ENDED MARCH 31, 2021
HOLMDEL, NJ, May 4, 2021........ Monmouth Real Estate Investment Corporation (NYSE:MNR) reported Net Income Attributable to Common Shareholders of $25.9 million or $0.26 per diluted share for the three months ended March 31, 2021 as compared to Net (Loss) Attributable to Common Shareholders of $(75.1) million or $(0.77) per diluted share for the three months ended March 31, 2020, representing an increase of $101.0 million or $1.03 per diluted share. During the three months ended March 31, 2021, we recognized a $19.2 million unrealized gain or $0.19 per diluted share as compared to an $(83.1) million unrealized (loss) or $(0.85) per diluted share for the three months ended March 31, 2020. Funds from Operations (FFO), which excludes unrealized and realized gains or losses from our securities portfolio, for the three months ended March 31, 2021 were $20.6 million or $0.21 per diluted share versus $20.2 million or $0.21 per diluted share for the three months ended March 31, 2020, representing consistent per diluted share earnings. Adjusted Funds from Operations (AFFO), which also excludes unrealized and realized gains or losses from our securities portfolio, for the three months ended March 31, 2021 were $19.4 million or $0.20 per diluted share versus $19.4 million or $0.20 per diluted share for the three months ended March 31, 2020, representing consistent per diluted share earnings. Sequentially, our FFO of $0.21 per diluted share for the second quarter of fiscal 2021 is $0.02 higher than our FFO of $0.19 per diluted share for the first quarter of fiscal 2021, representing a 10.5% increase. In addition, our AFFO of $0.20 per diluted share for the second quarter of fiscal 2021 is $0.01 higher than our AFFO of $0.19 per diluted share for the first quarter of fiscal 2021, representing a 5.3% increase.
A summary of significant financial information for the three and six months ended March 31, 2021 and 2020 (in thousands, except per share amounts) is as follows:
Three Months Ended March 31, | ||||||||
2021 | 2020 | |||||||
Rental Revenue | $ | 39,246 | $ | 35,114 | ||||
Reimbursement Revenue | $ | 7,119 | $ | 6,594 | ||||
Net Operating Income (NOI) (1) | $ | 38,722 | $ | 35,045 | ||||
Total Expenses | $ | 25,670 | $ | 21,301 | ||||
Dividend Income | $ | 1,587 | $ | 3,404 | ||||
Realized Gain on Sale of Securities Transactions | $ | 2,248 | $ | -0- | ||||
Unrealized Holding Gains (Losses) Arising During the Periods | $ | 19,186 | $ | (83,075 | ) | |||
Net Income (Loss) | $ | 34,329 | $ | (68,314 | ) | |||
Net Income (Loss) Attributable to Common Shareholders | $ | 25,913 | $ | (75,078 | ) | |||
Net Income (Loss) Attributable to Common Shareholders Per Diluted Common Share | $ | 0.26 | $ | (0.77 | ) | |||
FFO (1) | $ | 20,639 | $ | 20,199 | ||||
FFO per Diluted Common Share (1) | $ | 0.21 | $ | 0.21 | ||||
AFFO (1) | $ | 19,418 | $ | 19,352 | ||||
AFFO per Diluted Common Share (1) | $ | 0.20 | $ | 0.20 | ||||
Dividends Declared per Common Share | $ | 0.18 | $ | 0.17 | ||||
Weighted Avg. Diluted Common Shares Outstanding | 98,496 | 97,941 |
SECOND quarter Fiscal year 2021 supplemental information | 22 |
Six Months Ended March 31, | ||||||||
2021 | 2020 | |||||||
Rental Revenue | $ | 76,091 | $ | 69,983 | ||||
Reimbursement Revenue | $ | 13,856 | $ | 13,424 | ||||
Lease Termination Income | $ | 377 | $ | -0- | ||||
Net Operating Income (NOI) (1) | $ | 75,250 | $ | 69,512 | ||||
Total Expenses | $ | 47,881 | $ | 43,769 | ||||
Dividend Income | $ | 3,195 | $ | 6,642 | ||||
Realized Gain on Sale of Securities Transactions | $ | 2,248 | $ | -0- | ||||
Unrealized Holding Gains (Losses) Arising During the Periods | $ | 38,906 | $ | (86,710 | ) | |||
Net Income (Loss) | $ | 68,246 | $ | (58,689 | ) | |||
Net Income (Loss) Attributable to Common Shareholders | $ | 51,659 | $ | (71,551 | ) | |||
Net Income (Loss) Attributable to Common Shareholders Per Diluted Common Share | $ | 0.53 | $ | (0.73 | ) | |||
FFO (1) | $ | 39,517 | $ | 39,520 | ||||
FFO per Diluted Common Share (1) | $ | 0.40 | $ | 0.41 | ||||
AFFO (1) | $ | 37,833 | $ | 39,284 | ||||
AFFO per Diluted Common Share (1) | $ | 0.38 | $ | 0.40 | ||||
Dividends Declared per Common Share | $ | 0.35 | $ | 0.34 | ||||
Weighted Avg. Diluted Common Shares Outstanding | 98,352 | 97,466 |
A summary of significant balance sheet information as of March 31, 2021 and September 30, 2020 (in thousands) is as follows:
March 31, 2021 | September 30, 2020 | |||||||
Cash and Cash Equivalents | $ | 19,383 | $ | 23,517 | ||||
Real Estate Investments | $ | 1,891,627 | $ | 1,747,844 | ||||
Securities Available for Sale at Fair Value | $ | 131,654 | $ | 108,832 | ||||
Total Assets | $ | 2,108,416 | $ | 1,939,783 | ||||
Fixed Rate Mortgage Notes Payable, net of Unamortized Debt Issuance Costs | $ | 866,224 | $ | 799,507 | ||||
Loans Payable | $ | 75,000 | $ | 75,000 | ||||
Total Shareholders’ Equity | $ | 1,136,100 | $ | 1,037,605 |
During the second quarter, we accomplished the following:
● | Increased our Revenue by 11.2% over the prior year period to $46.4 million; | |
● | Increased our Net Operating Income by 10.5% over the prior year period to $38.7 million; | |
● | Increased our Gross Leasable Area (GLA) by 7% over the prior year period to 24.6 million square feet; | |
● | Grew our acquisition pipeline to six new build-to-suit properties containing 1.8 million total square feet, all of which will be leased to Investment Grade tenants, at an aggregate cost of $238.1 million; | |
● | Increased our overall occupancy rate by 30 basis points over the prior year period to a sector leading 99.7% currently; | |
● | Renewed so far this fiscal year, eight of the ten leases set to expire during fiscal 2021. These eight lease renewals, comprising 1.1 million square feet resulted in a 7.2% increase in GAAP rent, a 0.4% increase in cash rent, and have a weighted average lease term of 4.1 years; | |
● | Maintained a weighted average lease term of 7.4 years; | |
● | Increased our annualized average base rent per occupied square foot by 4% to $6.51 from the prior year period; | |
● | Maintained a weighted average debt maturity on our fixed-rate mortgage debt of 11.3 years; | |
● | Reduced the weighted average interest rate on our fixed-rate mortgage debt to 3.87% from 4.04% in the prior year period; | |
● | Realized $2.2 million in gains from the sale of REIT securities and reported an additional $19.2 million in unrealized gains on our securities portfolio. |
SECOND quarter Fiscal year 2021 supplemental information | 23 |
Highlights from the Second Quarter of Fiscal 2021:
● | Acquisitions. To date in fiscal 2021, Monmouth has completed two high-quality acquisitions comprising 1.1 million square feet for an aggregate purchase price of $170.0 million. These properties, located in the Columbus, OH and Atlanta, GA MSAs, are leased to FedEx Ground and Home Depot U.S.A. for 15 and 20 years, respectively. These two properties are expected to generate $10.1 million in annual rent. |
● | Pipeline. Monmouth’s $238.1 million acquisition pipeline currently contains six new build-to-suit properties, comprising 1.8 million total square feet. These properties have a weighted average lease term of 13.5 years and are expected to generate $13.7 million in annual rent. These projects are all leased to investment grade tenants, with 70% leased to FedEx Ground and 30% leased to Mercedes-Benz. |
● | Parking Expansion Projects. In addition to the acquisition pipeline and recently completed expansion projects, the Company has several FedEx Ground parking expansion projects in progress with more under discussion. Currently the Company has eight FedEx Ground parking expansion projects underway that it expects to cost approximately $31.4 million. These parking expansion projects will enable Monmouth to capture additional rent while lengthening the terms of these leases. |
● | Lease Renewals. The Company has renewed eight of the ten leases that were set to expire this fiscal year. These eight lease renewals represent 91% of the 1.2 million square feet expiring this year. These lease renewals have a weighted average lease term of 4.1 years, and a weighted average lease rate of $4.61 per square foot on a GAAP basis and $4.49 on a cash basis. This represents an increase of 7.2% on a GAAP basis and an increase of 0.4% on a cash basis. |
● | Key Financial Metrics and Ratios. At quarter end, Monmouth’s weighted average lease maturity was 7.4 years and its weighted average mortgage debt maturity was 11.3 years. For the quarter, Net Debt to Adjusted EBITDA was at 6.4x, Fixed Charge Coverage at 2.0x, and Net Debt to Total Market Capitalization at 29%. The Company’s occupancy rate has been over 98.9% for six consecutive years and its weighted average lease term has exceeded seven years for seven consecutive years. |
● | Securities Portfolio. At quarter end, the Company’s $131.7 million securities portfolio represented 5.4% of its undepreciated assets. During the quarter, Monmouth sold marketable REIT securities for gross proceeds totaling $16.3 million with an original cost basis of $14.1 million, resulting in a realized gain of $2.2 million. In addition, the Company had unrealized gains of $19.2 million from its securities portfolio during the quarter and $38.9 million in unrealized gains since fiscal year-end. |
● | Asset Sale. Subsequent to the quarter end, on April 15, 2021, Monmouth sold its 60,400 square foot building located in Carlstadt (New York, NY), NJ for $13.0 million. Prior to the sale, the Company owned a 51% interest in this property. Its 51% portion of the sale proceeds resulted in a U.S. GAAP net realized gain of approximately $4.2 million, representing a 206% gain over the depreciated U.S. GAAP basis and a net realized gain of approximately $3.6 million, or 132% net gain over its historic undepreciated cost. |
Merger Transaction with Equity Commonwealth
As announced on May 4, 2021, following a comprehensive strategic alternatives process, the Company entered into a definitive merger agreement by which Equity Commonwealth (NYSE: EQC) will acquire Monmouth in an all-stock transaction, valued at approximately $3.4 billion, including the assumption of debt. The combined company is expected to have a pro forma equity market capitalization of approximately $5.5 billion.
Under the terms of the agreement, Monmouth shareholders will receive 0.67 shares of Equity Commonwealth stock for every share of Monmouth stock they own. Based on the closing price for Equity Commonwealth on May 4, 2021, this represents approximately $19.40 per Monmouth share. The merger agreement provides for Monmouth to declare and pay one additional regular quarterly common stock dividend of $0.18 per share without Equity Commonwealth paying a corresponding common dividend to its shareholders. Accordingly, the total consideration to be received by the Monmouth shareholders in the transaction is $19.58 per Monmouth share.
Under the terms of the merger agreement, Monmouth plans to continue to pay its regular quarterly common stock dividend and its Series C Cumulative Redeemable Preferred Stock dividend between signing and closing of the transaction. Equity Commonwealth expects to begin paying a quarterly dividend after the transaction has closed. The Equity Commonwealth Board of Trustees will determine the timing and amount of the dividend.
The transaction is expected to close during the second half of calendar 2021, subject to customary closing conditions, including the approval by the common shareholders of both Equity Commonwealth and Monmouth.
In light of the pending transaction with Equity Commonwealth, we do not intend to host a conference call or webcast in connection with our second quarter FY 2021 financial results. The results will be available on the Company’s website at www.mreic.reit in the Investor Relations section, under Filings and Reports.
SECOND quarter Fiscal year 2021 supplemental information | 24 |
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 120 properties, containing a total of approximately 24.5 million rentable square feet, geographically diversified across 31 states. Our occupancy rate is currently 99.7%, our weighted average building age is currently 9.9 years, and our percentage of revenue derived from Investment Grade tenants or their subsidiaries is currently 83%.
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 include risks and uncertainties relating to the proposed merger with Equity Commonwealth and other risks and uncertainties described in in our annual report on Form 10-K and in our other filings with the SEC. We undertake no obligation to publicly update or revise any forward-looking statements whether as a result of new information, future events, or otherwise.
Notes:
(1) Non-U.S. GAAP Information: FFO, as defined by The National Association of Real Estate Investment Trusts (NAREIT), represents net income attributable to common shareholders, as defined by accounting principles generally accepted in the United States of America (U.S. GAAP), excluding extraordinary items, as defined under U.S. GAAP, gains or losses from sales of previously depreciated real estate assets, impairment charges related to depreciable real estate assets, plus certain non-cash items such as real estate asset depreciation and amortization. Included in the NAREIT FFO White Paper - 2018 Restatement, is an option pertaining to assets incidental to our main business in the calculation of NAREIT FFO to make an election to include or exclude mark-to-market changes in the value recognized on these marketable equity securities. In conjunction with the adoption of the FFO White Paper - 2018 Restatement, for all periods presented, we have elected to exclude unrealized gains and losses from our investments in marketable equity securities from our FFO calculation. 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, lease termination income, non-recurring strategic alternative & proxy 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.
SECOND quarter Fiscal year 2021 supplemental information | 25 |
The following is a reconciliation of the Company’s U.S. GAAP Net Income (Loss) Attributable to Common Shareholders to the Company’s FFO and AFFO for the three and six months ended March 31, 2021 and 2020 (in thousands):
Three Months Ended | Six Months Ended | |||||||||||||||
3/31/2021 | 3/31/2020 | 3/31/2021 | 3/31/2020 | |||||||||||||
Net Income (Loss) Attributable to Common Shareholders | $ | 25,913 | $ | (75,078 | ) | $ | 51,659 | $ | (71,551 | ) | ||||||
Less/Plus: Unrealized Holding (Gains) Losses Arising During the Periods | (19,186 | ) | 83,075 | (38,906 | ) | 86,710 | ||||||||||
Plus: Depreciation Expense (excluding Corporate Office Capitalized Costs) | 13,007 | 11,409 | 25,026 | 22,788 | ||||||||||||
Plus: Amortization of Intangible Assets | 600 | 508 | 1,132 | 1,016 | ||||||||||||
Plus: Amortization of Capitalized Lease Costs | 305 | 285 | 606 | 557 | ||||||||||||
FFO Attributable to Common Shareholders | 20,639 | 20,199 | 39,517 | 39,520 | ||||||||||||
Plus: Depreciation of Corporate Office Capitalized Costs | 57 | 66 | 116 | 118 | ||||||||||||
Plus: Stock Compensation Expense | 77 | 114 | 134 | 270 | ||||||||||||
Plus: Amortization of Financing Costs | 346 | 322 | 676 | 758 | ||||||||||||
Plus: Non-recurring Strategic Alternative & Proxy Costs | 1,993 | -0- | 2,239 | -0- | ||||||||||||
Plus: Non-recurring Severance Expense | -0- | -0- | -0- | 786 | ||||||||||||
Less: Gain on Sale of Securities Transactions | (2,248 | ) | -0- | (2,248 | ) | -0- | ||||||||||
Less: Lease Termination Income | -0- | -0- | (377 | ) | -0- | |||||||||||
Less: Recurring Capital Expenditures | (403 | ) | (717 | ) | (563 | ) | (936 | ) | ||||||||
Less: Effect of Non-cash U.S. GAAP Straight-line Rent Adjustment | (1,043 | ) | (632 | ) | (1,661 | ) | (1,232 | ) | ||||||||
AFFO Attributable to Common Shareholders | $ | 19,418 | $ | 19,352 | $ | 37,833 | $ | 39,284 |
The following are the Cash Flows provided (used) by Operating, Investing and Financing Activities for the six months ended March 31, 2021 and 2020 (in thousands):
Six Months Ended | ||||||||
3/31/2021 | 3/31/2020 | |||||||
Operating Activities | $ | 54,426 | $ | 47,854 | ||||
Investing Activities | (153,511 | ) | (101,388 | ) | ||||
Financing Activities | 94,951 | 69,268 |
# # # # #
SECOND quarter Fiscal year 2021 supplemental information | 26 |