Monmouth Real Estate Investment Corporation - NYSE: MNR November 2021 Investor Presentation - Monmouth Real Estate Investment ...
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Monmouth Real Estate
Investment Corporation
A Public REIT Since 1968
November 2021
Investor Presentation
NYSE: MNR
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, 2021, its Quarterly Reports on Form 10‐Q for the quarterly periods ended June 30, 2021, March 31,2021, and
December 31, 2020, 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 www.sec.gov. 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” and “AFFO”, which are non‐GAAP financial measures. A reconciliation of “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, 2021, furnished to shareholders on Form 8‐K, and is available on our
website at www.mreic.reit.
2
COVID‐19 Global Pandemic
The future effects of the evolving impact of COVID‐19 are uncertain, however at this time we
believe that the fallout from COVID‐19 will not have a material adverse effect on our financial
condition.
Monmouth went into the global pandemic very well positioned with a strong balance sheet, a
high‐quality tenant roster, nearly full occupancy, and a well‐covered dividend. Our resilient rent
collection results during these challenging times highlights the mission‐critical nature of our
assets and underscores the essential need for our tenants’ operations. In addition, because our
weighted average lease maturity is 7.1 years and our weighted average fixed‐rate mortgage
debt maturity is 10.9 years, we expect our income streams to remain resilient for years to come.
Tenant Rent Collections and Occupancy During
COVID‐19 Pandemic
Rent collections average 99.9% throughout
Occupancy over 99.0% throughout
3
Select Properties
Dallas MSA Indianapolis MSA
Phoenix MSA
Atlanta MSA Savannah MSA 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 25.2 million square feet, consisting of 123
properties with 99.7% occupancy
Geographically diversified portfolio across 32 states with a focus on major
seaports, major intermodal ports, and major airports
Quality roster of investment grade tenants
Approximately 83% of rental revenue is from investment grade
tenants or their subsidiaries, including Amazon, Beam Suntory, Indianapolis MSA
Coca‐Cola, FedEx, Home Depot, International Paper, Magna,
National Oilwell, Raytheon Technologies, Shaw Industries,
Sherwin‐Williams, Siemens, Toyota, UPS and other high‐quality
companies
Strong recent growth
Monmouth successfully grew GLA by approximately 60% during
the past five years
In fiscal 2021, we closed on four properties totaling 1.6 million
square feet for $258.4 million
Thus far in fiscal 2022, closed on one property with 291,000 square
Memphis MSA
feet for $30.2 million
Current acquisition pipeline includes three mission critical
properties containing approximately 1.1 million square feet with a
total purchase price of $126.8 million
• All three properties are leased long‐term to investment
grade tenants
Conservative capital structure
29.8% Net Debt to Total Market Capitalization
6.8x Net Debt/Adjusted EBITDA
2.1x Fixed Charge Coverage
10.9 years Weighted Average Fixed Rate Mortgage Debt Maturity Daytona Beach MSA
Source: MNR 10‐K and subsequent press releases
5
Portfolio Overview Consistent Results
123 properties geographically diversified across 32 states, totaling Occupancy
approximately 25.2 million square feet of GLA
Highest occupancy rate in the Industrial REIT sector at 99.7% 99.6% 99.6% 99.7% 99.7%
100.0% 99.3% 99.4%
Six consecutive years with above 98.9% occupancy 98.9%
99.0%
Most modern industrial property portfolio with a weighted average
98.0%
building age of 10.1 years
FedEx portfolio weighted average building age is 9.2 years 97.0%
Average building size is approximately 205,000 square feet 96.0%
Weighted average lease maturity is 7.1 years 95.0%
Weighted average rent per square foot is $6.60 94.0%
Ample expansion capability with a land to building ratio of 5.4:1 93.0%
FedEx portfolio land to building ratio is 6.4:1 92.0%
Simple business model 91.0%
No off‐balance sheet joint ventures
90.0%
No in‐house development division FY 2016 FY 2017 FY 2018 FY 2019 FY 2020 FY 2021 Current
No significant amount of non‐income producing land
To serve the digital economy
Tenant Retention
100.0% 100.0%
100.0% 92.0%
90.0% 87.0%
80.0% 76.0%
69.0%
70.0%
60.0%
50.0%
40.0%
30.0%
20.0%
10.0%
0.0%
FY 2016 FY 2017 FY 2018 FY 2019 FY 2020 FY2021
Charlotte MSA
Source: MNR 10‐K and subsequent press releases 6
Portfolio Growth
Total GLA
30.0
24.9 26.3
Total Square Feet (in Millions)
26.0 23.4
22.3
21.2
22.0
18.8
18.0 16.0
14.0
10.0
6.0
FY 2016 FY 2017 FY 2018 FY 2019 FY 2020 FY 2021 FY 2022E
Total Real Estate Assets
$2.497
Total Real Estate Assets ($ in Billions)
$2.304
$2.4
$2.044
$2.0 $1.867
$1.720
$1.6 $1.432
$1.158
$1.2
$0.8
$0.4
FY 2016 FY 2017 FY 2018 FY 2019 FY 2020 FY 2021 FY 2022E
Source: MNR 10‐K and subsequent press releases 7
Capital Structure
$3.5
$3.0
Total Market Capitalization ($ in Billions)
$2.5
$2.0
$1.5
$1.0
$0.5
$0.0
FY 2016 FY 2017 FY 2018 FY 2019 FY 2020 FY 2021
Common Equity Preferred Equity Debt
Source: MNR 10‐K and subsequent press releases 8
Financial Highlights
Gross Revenue
Gross Revenue has grown at an average annual rate of 14% over the past five years
+ 5% +6%
+ 14%
$200
+ 23%
$150
+ 20%
$ in Millions
$100
$50
$0
2016 2017 2018 2019 2020 2021
Adjusted Funds from Operations per Share
AFFO per share has grown at an average annual rate of 3% over the past five years
+ 14% ‐ 2%
‐ 8% 0%
+ 9%
$0.80
$0.60
$0.40
$0.20
$0.00
2016 2017 2018 2019 2020 2021
The AFFO per share remains unchanged primarily due to an increase in Preferred Dividend expense as a result of an increase in preferred shares outstanding, as well as a decrease in dividend income, partially offset by an increase in Net
Operating Income (NOI).
Source: MNR 10‐K and subsequent press releases
9
Ecommerce Trends and MNR’s Portfolio
Monmouth was early in anticipating consumer spending’s shift from traditional stores to internet sales.
The entire retail industry continues to migrate from brick and mortar stores to omni‐channel platforms.
This has led to significant demand for large, modern industrial distribution centers.
U.S. ecommerce sales are expected to grow to $933 billion in 2021, representing a 17.9% increase from 2020 and 15.3% of total
U.S. retail sales.
Today, Monmouth’s vast FedEx and Amazon holdings represent an integral part of the growing ecommerce ecosystem.
ECommerce Sales
CAGR: 17%
$1,000
$900
$800
$700
$ in Billions
$600
$500
$400
$300
$200
$100
$‐
2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021E
10
Source: U.S. Census Bureau & eMarketer.comInventories‐to‐Sales Ratio, Retailers
Supply chains need to be more resilient in a Post‐Pandemic World. Inventory levels are projected to increase substantially.
This will drive greater industrial space demand.
1.80
1.75
1.70
1.65
1.60
1.55
1.50
1.45
1.40
1.35
1.30
'92 '94 '96 '98 '00 '02 '04 '06 '08 '10 '12 '14 '16 '18 '20
Source: U.S. Census Bureau 11Triple Digit Demographic Shifts
Metropolitan areas with the greatest daily net population exodus and gain (Pre‐COVID Trends)
Source: Bloomberg analysis of U.S. Census data 12Strategic Locations
Monmouth’s Property Portfolio with U.S. Population Density and U.S. Railroads
Population Density (#/sq. mi.)
1.74 – 37.60 70.60 – 112.60 207.00 – 2,872.94 MREIC Current Properties
37.60 – 70.60 112.60 – 207.00 U.S Railroads MREIC Properties Under Contract 13
Source: S&P Global Market Intelligence as of 11/9/21Over 70% of the U.S. population lives east of the Mississippi River
14USLAX/USLGB anchored vessels
Anchored Vessels Location:
USLAX/USLGB
Average port dwell in 2021: 8 days
Average vessel dwell in March: 4.58
days
Number of vessels anchored: 43
Port dwell time is defined as the time a
vessel enters the terminal to the time a
container gates out
Vessel dwell time is defined as the time a
vessel anchors at a port
15Cargo ships anchored near West coast ports could face a 4‐week delay to
dock, raising fears over the global supply chain
• Multiple cargo ships could face lengthy delays to dock at California ports
• The news comes amid surging demand for goods and the continuing fallout from the labor shortage
• Congested ports have raised concerns about shortages in the months ahead of Christmas
• Over 150 ships are currently waiting for clearance to unload at the ports of Los Angeles and Long Beach, CA
• Transit from Asia is currently taking over 80 days as opposed to 40 days pre‐COVID
• Asian, European, Mid East, South American, and Northern American ports are all facing record delays
16
Source: www.Insider.comSupply Chain Costs have risen substantially year‐over‐year
Transportation Costs:
Ocean shipping rate up 242.0%
Domestic freight costs (all domestic transportation modes: trucks, rail, air) increased 43.1%
Facility Costs:
Rental rates increased 9.7%
Warehouse Wages up 4.5%
17
Source: CBRELogistics Costs
Other related Costs, 7‐12%
Inventory
Carrying Costs,
12‐16%
Transportation Costs,
Labor Costs, 45‐70%
15‐25%
Fixed Facility Costs,
3‐6%
Source: CBRE 18Supply Chain Tightness
Port congestions and a shortage of containers have pushed up shipping costs
US: The cost of shipping a container from…
Source: Oxford Economics/ Freightos Baltic Index 19Expanded Panama Canal Changes the Balance
Since 2008, shipping container volumes on East Coast ports have increased dramatically by 46.8%.
West Coast ports have seen some growth as well, albeit at a much slower rate of 18.4%.
The Post‐Pandemic environment will likely accelerate this trend further.
60.0%
56.5%
54.0%
50.0% 52.4%
51.1%
48.9%
47.6%
46.0%
40.0% 43.5%
Share of total TEUs
30.0%
20.0%
10.0%
0.0%
2008 2014 2016 2018
West Coast East Coast
20
Source: JLL ResearchPortfolio Markets & Panama Canal Expansion
Monmouth’s acquisition pipeline currently comprises three new build‐to‐suit industrial properties containing approximately 1.1 million square feet with an
aggregate purchase price of $126.8 million. All three highly‐automated properties are leased to investment grade tenants or their subsidiaries.
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 accommodate 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 days 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
Existing Properties
Non‐impacted markets
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 2013
21High Quality Tenant Base
Largest Percentage of Investment Grade Tenants in the REIT Sector
Approximately 83% of rental revenue is from investment grade tenants or subsidiaries
Higher investment grade tenant base than any other REIT
Rental roster includes Amazon, Beam Suntory, Coca‐Cola, FedEx, Home Depot, International Paper, Keurig Dr
Pepper, Magna, Milwaukee Tool, National Oilwell, Raytheon Technologies, Shaw Industries, Sherwin‐Williams,
Siemens, Snap‐on, Toyota , ULTA, UPS and other high quality companies
Monmouth began investing in properties leased to FedEx in 1994
Recent acquisitions include six properties consisting of an additional 1.6 million square feet leased to FedEx
Sixteen FedEx expansion projects completed since Fiscal 2014, increasing the rent and lease terms of these
facilities, with several parking expansion projects currently underway
Source: MNR 10‐K and subsequent press releases
22FedEx’s average U.S. daily package volume
Driven by Ground home deliveries, FedEx’s average daily package volume is now at all‐time
record levels
18
16
14
12
10
in Millions
8
6
4
2
0
FY 2018 FY 2019 FY 2020 FY 2021
Ground Express
Source: The Wall Street Journal 23High Quality Tenants
Annual Rent by Tenant Square Footage by Tenant
Total Annual Rent: $165.9 million Total Square Footage: 25.2 million
Remaining Tenants,
23.7%
Remaining
B.Braun Medical, Tenants, 31.7%
1.4%
FedEx Ground,
International Paper,
42.7%
1.6%
FedEx Ground, 52.7%
ULTA, 1.7%
Milwaukee Tool, 1.9%
Jim Beam Brands,
2.4%
Shaw Industries, 2.1%
ULTA, 2.7%
Home Depot, 3.9%
Home Depot,
3.3% FedEx Express,
4.6%
Amazon, 6.5% Shaw Industries, Amazon, 5.9%
3.3%
FedEx Express, 4.5% Milwaukee Tool,
3.4%
FDX and its subsidiaries represent FDX and its subsidiaries represent
57.2% of Annual Rent 47.3% of Square Footage
Source: MNR 10‐K and subsequent press releases 24Land – to – Building Ratios
Monmouth’s properties contain ample land in order to accommodate future expansion projects
Our FedEx properties contain even more land in order to accommodate their significant parking requirements
Numerous expansion projects are currently underway
8
6:1
6
5:1
4:1
4
2
0
Total Monmouth Portfolio FedEx Properties Non‐FedEx Properties
25Geographic Focus
Our 25.2 million square foot portfolio is well diversified across 32 states
We have high concentrations in several of the most business friendly states
Annual Rent by State Square Footage by State
Total Annual Rent: $165.9 million Total Square Footage: 25.2 million
Ohio, 9.4%
Georgia, 9.7%
Georgia, 9.1%
Florida, 9.6%
Remaining States,
33.5%
Remaining States,
33.9%
Florida, 8.8%
Ohio, 9.6%
Indiana, 7.8%
Texas, 8.3%
Michigan, 3.4% Tennessee, 4.6%
Texas, 7.1%
Indiana, 6.8% Mississippi, 4.6%
New Jersey, 3.6%
North Carolina,
Illinois, 3.8% North Carolina, 4.9% Kentucky, 5.1%
South Carolina, South Carolina,
5.3% 6.0% 5.1%
Source: MNR 10‐K and subsequent press releases 26Summary Portfolio Metrics
Highest occupancy rate
Strongest Tenants
Longest lease terms
Youngest portfolio in the Industrial REIT sector with a weighted average building age of 10.1 years
101.0%
99.7%
100.0%
98.8%
99.0%
Current 98.0%
98.0% 97.8% 97.6%
97.1%
97.0%
Occupancy 96.0%
95.9%
Highest
Rate 95.0% 94.5% occupancy rate
94.0%
in the sector
93.0%
92.0%
91.0%
MNR EGP TRNO PLD DRE FR STAG PSB
60.0%
53.9%
50.0% 48.2%
Rent Roll (% 40.7% 42.1%
40.0% 36.5%
next 3 years by 30.4%
34.1%
30.0% Limited near
base revenues) 19.9% term rent roll
20.0%
10.0%
0.0%
MNR DRE STAG TRNO FR PLD EGP PSB
Source: S&P Global Market Intelligence as of 11/9/2021
27Fiscal 2020 & 2021 Acquisitions
Monmouth has completed close to $1.7 billion in acquisitions and almost tripled portfolio GLA over the past eight years.
In fiscal 2021, Monmouth acquired four properties containing approximately 1.6 million square feet for $258.4 million, all are
net‐leased to investment grade tenants or their subsidiaries.
Thus far in fiscal 2022, Monmouth acquired one property containing approximately 291,000 square feet for $30.2 million.
Monmouth’s acquisition pipeline currently contains approximately 1.1 million square feet consisting of three new build‐to‐suit
properties, all of which are net‐leased to investment grade tenants or their subsidiaries, with an aggregate purchase price of
$126.8 million.
Subsequent
Fiscal 2021 Acquisitions to FY2021
Columbus, Atlanta, Burlington, Knoxville, Birmingham,
MSAs:
OH GA VT TN AL
Tenant:
Credit Rating:
BBB/Baa2 A/A2 BBB/Baa2 BBB/Baa2 BBB/Baa2
(S&P/Moody’s)
Fiscal Year Built: 2020 2020 2021 2021 2022
Size (sf): 500,268 657,518 143,972 259,053 290,879
Acres: 100.0 130.23 43.40 42.57 46.02
Purchase Price: $73,304,000 $95,935,000 $54,789,000 $34,411,000 $30,175,000
Price/SF: $146.53 $145.90 $380.55 $132.83 $103.74
Lease Maturity: 9/30/35 11/30/2040 5/31/2036 5/31/2036 7/31/2036
Total Annualized Rental Revenue for properties
purchased in fiscal 2021 and fiscal 2022: $16,974,000
Source: MNR 10‐K and subsequent press releases
28Select Acquisitions
FedEx Ground – Orlando, FL MSA – 311,000 sf
This photo illustrates the strong demand for our locations, and how integral they are to the Ecommerce ecosystem.
Situated on the I‐4 corridor between Tampa and Orlando, Walmart recently constructed two large ecommerce fulfillment
centers (one on each side of our FedEx facility) totaling 2.35 million square feet.
Source: MNR 10‐K and subsequent press releases 29The Changing of The Guard
The Big Town Mall was for many years the largest mall in Texas, and today…
Before
Source: MNR 30The Changing of The Guard
This large 65 acre parcel situated six miles east of downtown Dallas is now the site of Monmouth’s 352,000 sf FedEx facility.
After
Source: MNR 31Acquisition Pipeline
Large highly‐automated acquisition pipeline comprising
approximately 1.1 million square feet with a purchase price of
$126.8 million
100% is leased to investment grade tenants
Leases commence throughout fiscal 2022
Acquisitions included in the pipeline have a weighted
average lease maturity of 12.6 years
Seven expansion projects completed within the last five years
with a total cost of $22.0 million
These expansions resulted in extending the weighted average
lease terms by approximately 12 years and produced
approximately 10% unlevered annual returns on cost from
increased rents
Several parking expansion projects are currently under
construction
Built‐to‐Suit Infrastructure Installation (material and handling equipment is owned by tenant)
Built‐to‐Suit Infrastructure Installation (material and handling equipment is owned by tenant)
Salt Lake City MSA
Source: MNR 10‐K and subsequent press releases 32Lease Expirations Are Well Dispersed
Strong embedded rent growth potential. Monmouth historically averages approximately 90%
Weighted average lease maturity currently at 7.1 years. annual tenant retention. Achieved 100% tenant
Weighted average rent per occupied square foot of $6.60. retention in fiscal 2021.
National average rent psf for industrial real estate Fiscal 2021 leases increased by 6% on a GAAP basis.
currently is $7.03 and trending higher. Monmouth’s properties contain additional land and
excess parking.
Expiring square footage (‘000’s)
Average rent per occupied square foot of expiring square footage is shown above each
bar
3,000 sq. ft.
Expiring Square Footage (000’s)
$4.98
2,500 sq. ft. $5.56
$5.70 $5.46 $8.85
2,000 sq. ft. $6.25 $5.79
$6.24
$6.00
1,500 sq. ft.
$7.99
$5.37 $7.70
$8.52
1,000 sq. ft. $9.74
$10.01 $8.30
500 sq. ft.
0 sq. ft.
2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 2036 2041
Fiscal Year
GLA 4.2% 8.4% 7.5% 10.3% 6.9% 9.5% 8.6% 7.3% 4.4% 4.8% 8.5% 4.1% 6.2% 3.4% 2.8% 2.6%
ABR 3.5% 7.3% 7.1% 7.8% 6.5% 8.0% 7.1% 6.4% 5.1% 5.9% 11.4% 5.3% 5.6% 5.0% 4.2% 3.3%
Source: MNR 10‐K and subsequent press releases, GLA: Gross Leasable Area, ABR: Annual Base Rent
33Favorable US Industrial Fundamentals
Current economic indicators are very favorable for the US industrial real estate sector and Monmouth’s modern portfolio due to:
Rampant growth in Ecommerce which has accelerated further due to the COVID‐19 Pandemic
Increased inventory stocking due to the COVID‐19 Pandemic
Manufacturing growth due to supply chains shifting back to the U.S.
Over nine consecutive years of positive net absorption
Continued benefits from the recently completed Panama Canal expansion
US Industrial Construction (000’s) US Industrial Occupancy
500,000 100%
410,000 96.0%
400,000
95%
300,000
200,000 90%
100,000
0 85%
2006 2008 2011 2013 2016 2018 2021 2006 2009 2012 2015 2018 2019 2021
US Industrial Cap Rates
9%
7%
5% 3.5%
3%
2006 2009 2012 2015 2018 2021
Source: CBRE Research, Green Street, and Cushman & Wakefield
34Conservative Balance Sheet
Conservative capital structure
Total Market Capitalization (1)
29.8% Net Debt to total market capitalization
6.8x Net Debt/Adjusted EBITDA Total Shares Outstanding (9/30/21) 98,333,416
2.1x Fixed Charge Coverage Stock Price (9/30/21) $18.65
83.9% fixed rate debt, weighted average interest rate of 3.8% Preferred,
Equity Market Capitalization $1,833.9
Limited debt maturities each year through 2026 16%
77.1% of debt consists of modest LTV asset level mortgage financing
Weighted average mortgage maturity of 10.9 years, representing one of the Mortgage Notes Payable 832.2
Equity,
longest debt maturity schedules in the REIT sector 53%
Loans Payable 250.0
$342.1 million in potential liquidity Debt, 31%
$143.5 million in REIT marketable securities (approximately 5.6% of Total Debt $1,082.2
gross assets) Total Preferred Stock 549.6
$50.0 million available on our $225.0 million unsecured revolving line Total Market Capitalization $3,465.7
of credit, plus an additional $100.0 million potentially available on an
accordion feature
$48.6 million in cash Debt Maturities
In October 2018, we completed our first Common Stock offering since 2014,
with the sale of 9.2 million shares generating gross proceeds of $138 million
$500 Loans Payable 42.9%
$450 Mortgages
$400
Total Debt ($ in Millions)
$350
$300 23.5%
$250
$200
13.8%
$150
$100
7.5%
6.2% 6.1%
$50
$0
Mobile, AL 2022 2023 2024 2025 2026 Thereafter
(1) All dollar amounts except stock price are in millions % of Total Debt Outstanding
Source: MNR 10‐K and subsequent press releases 35Long Term Reliable Cash Dividends
Monmouth has now maintained or increased its dividend for 30 consecutive years, representing one of the best track
records in the entire REIT sector.
On January 14, 2021, Monmouth increased its dividend by 5.9% to $0.18 per quarter($0.72 per year), making our third
dividend increase in 5 years. These 3 dividend increases total 20%.
Current AFFO dividend payout ratio is 91.0%.
Monmouth was one of the only REITs that maintained its dividend throughout the Great Recession.
100% cash dividends since inception.
Best rent collection and occupancy results during the COVID‐19 Pandemic in the Industrial Property sector.
Dividends Per Share
$0.80
$0.71 $0.72
$0.68 $0.68 $0.68
$0.70
$0.60 $0.60 $0.60 $0.60 $0.60 $0.60 $0.60 $0.60 $0.64 $0.64
$0.57 $0.58 $0.58 $0.58 $0.58 $0.58 $0.58 $0.60 $0.60
$0.60
$0.50
$0.40
$0.30
$0.20
$0.10
$‐
2008
2020
2022E
2002
2000
2005
2004
2007
2015
2021
2003
2006
2009
2014
2017
2019
2001
2013
2016
2018
2011
2012
2010
1999
Source: S&P Global Market Intelligence
36Peer Analysis
Dividend Yield Total Debt/Total Market Capitalization
4.0% 35.0%
31.2%
3.4% 3.4%
3.5% 30.0%
3.0% 25.0% 22.7%
2.5% 2.4%
20.0% 18.9%
2.0% 16.7%
2.0% 1.8% 1.8% 1.8% 1.7%
15.7% 15.1%
15.0%
1.5% 11.7%
1.0% 10.0%
0.5% 5.0%
0.0%
0.0% 0.0%
MNR STAG PSB DRE EGP TRNO FR PLD MNR STAG FR EGP DRE PLD TRNO PSB
2021E FFO Multiple 2021E FFO Payout Ratio
50.0x 100.0%
43.6x 89.2%
45.0x 90.0%
78.7%
40.0x 36.1x 80.0% 70.9%
35.0x 33.2x 32.9x 30.8x
70.0% 65.1%
61.2% 60.3% 60.2%
30.0x 26.1x 60.0% 55.1%
25.3x
25.0x 50.0%
20.7x
20.0x 40.0%
15.0x 30.0%
10.0x 20.0%
5.0x 10.0%
0.0x 0.0%
TRNO PLD EGP DRE FR MNR PSB STAG MNR TRNO STAG DRE PLD EGP PSB FR
Source: S&P Global Market Intelligence as of 11/09/2021
NOTE: MNR peers include DRE, EGP, FR, PLD, PSB, STAG and TRNO
37Long Term Performance
Monmouth is one of the top performing REITs
Slide utilizes a 15 year period to illustrate long term performance including during the Global Financial Crisis
15Year
MNR Peer Group RMS
600
534.19%
500
400
300 265.56%
200 172.23%
100
0
‐100
‐200
11/8/2006
11/8/2007
11/8/2008
11/8/2009
11/8/2010
11/8/2011
11/8/2012
11/8/2013
11/8/2014
11/8/2015
11/8/2016
11/8/2017
11/8/2018
11/8/2019
11/8/2020
11/8/2021
Dividend Yield
4.0%
3.4% 3.4%
3.5%
3.0%
2.4%
2.5%
2.0%
2.0% 1.8% 1.8% 1.8% 1.7%
1.5%
1.0%
0.5%
0.0%
MNR STAG PSB DRE EGP TRNO FR PLD
Source: S&P Global Market Intelligence as of 11/09/2021
38ESG‐ Environmental
Environmental
Location: Monmouth’s property portfolio is
strategically located adjacent to major seaports,
international air freight terminals, major highways,
and inter‐modal transportation hubs. This minimizes
distance traveled for goods flowing through
traditional and online networks and reduces the
negative carbon and environmental impacts from
truck traffic, pollution, and highway congestion.
Sustainability: Our properties incorporate numerous
environmentally‐friendly features, such as Solar
Energy, LEED certification, heat reflective energy
efficient roofing systems, and energy efficient
lighting. Our tenants are committed to creating and
improving healthy, sustainable communities, reducing
waste and emissions, maintaining green workspaces, Headquarters: Monmouth’s Headquarters,
minimizing their carbon footprint, and conserving Bell Works in Holmdel, New Jersey includes
resources. 60,000 square feet of amorphous silicon
High Productivity: Our consistently high‐productive photovoltaic glass panels. These panels
use of space, with a real estate portfolio known to generate free, clean solar energy throughout
possess very low historic vacancy rates and maximum the day and offsets approximately 60 tons of
throughput, represents a very efficient and annual CO2 emissions.
environmentally sustainable business model. 39ESG‐ Social & Governance
Social
Diversity in Management Team: Monmouth’s key functions are approximately 50% diverse based on gender, race, or ethnicity.
Competitive Compensation, Work‐Life Balance: Our employees are compensated without regard to gender, race or ethnicity, and routinely
recognized for outstanding performance. Employees are offered great flexibility to meet personal and family needs.
Ethics and Integrity: We adhere to a robust Code of Business Conduct and Ethics which extends to our suppliers and vendors, as applicable.
We afford all employees meaningful whistleblower protections. All claims will be investigated and addressed without fear of reprisal.
Community: Monmouth supports its Named Executive Officers and all other employees serving on non‐profit boards and engaging in
charitable activities in the greater community.
Partnership: Working with our major tenants, our buildings have been utilized to bring urgently needed medical supplies, food, clothing, and
other aid to areas throughout the world that have been stricken by natural disasters.
Governance
Independent Board: 9 out of 13 Board Members (69%) are independent.
Diversity of Board: Our board currently includes two women and the age of our board members ranges from 33 years of age to 88 years of
age. The Governance Committee mandates that at least one candidate representing a diversity of gender, race, ethnicity, age, and/or sexual
orientation be included in each pool of candidates from which a Board nominee is chosen.
Plurality Plus Voting for Election of Directors: A nominee who does not receive a majority of the votes cast in his or her uncontested
election must offer to resign as a director.
Annual Board Self‐Evaluation: Our directors engage in annual individual performance evaluations.
Named Executive Officer (NEO) Stock Ownership: Effective October 1, 2017, our Named Executive Officers are subject to Stock Ownership
Guidelines recommending 2x their base salary.
Director Stock Ownership: Effective September 12,2017, our Independent Directors are subject to Stock Ownership Guidelines
recommending 3x their annual cash fee.
Insider Ownership: Our insider ownership reflects approximately 6% of all shares outstanding, resulting in a strong alignment of ownership
with fellow shareholders.
Clawback Policy: Effective October 1, 2017, performance‐based compensation to a Named Executive Officer may be recouped if the NEO
engaged in fraud or willful misconduct contributing to the need for a material restatement of financial results.
Annual Say‐on‐Pay: Non‐binding votes on executive compensation are held annually.
40Key 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
41Monmouth Real Estate Investment Corporation
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