UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, DC 20549
FORM 10-K
(Mark One)
[X] Annual Report Pursuant to Section 13 or 15(d) of the Securities
Exchange Act of 1934 (Fee Required)
For the fiscal year ended September 30, 1995
or
[ ] Transition Report Pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934 (No Fee Required)
For the transition period from to
Commission File Number 0-4258
Monmouth Real Estate Investment Corporation
(Exact name of registrant as specified in its charter)
Delaware 22-1897375
(State or other jurisdiction of (I.R.S. Employer
incorporation or organization) Idendification No.)
125 Wyckoff Road, Eatontown, NJ 07724
(Address of Principal Executive Offices) (Zip Code)
Registrant's telephone number, including area code: (908) 542-4927
Securities registered pursuant to Section 12(b) of the Act:
Title of each class_____ Name of each exchange on which registered____
Securities registered pursuant to Section 12(g) of the Act:
Common Stock - Class A, $.01 par value
(Title of Class)
Indicate by check mark whether the registrant (1) has filed
all reports required to be filed by Section 13 or 15(d) of the
Securities Exchange Act of 1934 during the preceding 12 months
(or for such shorter period that the registrant was required to
file such reports), and (2) has been subject to such filing
requirements for the past 90 days. Yes X No
Indicate by check if disclosure of delinquent filers pursuant
to Item 405 of Regulation S-K is not contained herein, and will
not be contained, to the best of registrant's knowledge, in
definitive proxy or information statements incorporated by reference
in Part III of this Form 10-K or any amendment to this Form 10-K. X
The aggregate market value of voting stock held by non-
affiliates of the Registrant was $16,737,552 (based on 2,789,592
shares of common stock at the closing price of $6.00 per
share) on November 15, 1995.
There were 3,442,828 shares of common stock outstanding as
of November 15, 1995.
Documents Incorporated by Reference: Exhibits incorporated by
reference are listed in Part IV, Item (a) (3).
PART I
ITEM 1 - BUSINESS
Monmouth Real Estate Investment Corporation (the Company) is a
corporation operating as a qualified real estate investment trust under
Sections 856-858 of the Internal Revenue Code.
Currently, the Company derives its income primarily from real
estate rental operations. The Company has approximately 1,000,000
square feet of property, of which approximately 282,000 square feet, or
28%, is leased to the Keebler Company, a subsidiary of United Biscuit
Corporation, and approximately 145,000 square feet, or 15%, is leased
to the Amway Corporation. During 1995 and 1994, rental income and
occupancy charges from properties leased to the Keebler Company and
Amway Corporation approximated 57% and 58% of total rental and
occupancy charges, respectively.
The Company at September 30, 1995 had investments in thirteen
properties. (See Item 2 for detailed description of the properties.)
These properties are located in New Jersey, New York, Pennsylvania,
North Carolina, Mississippi, Massachusetts, Kansas, Iowa and Missouri.
All properties are managed by an independent management company.
Monsey, New York and Monaca, Pennsylvania are not net leased. The
remaining eleven properties are all leased on a net basis.
The Company does not have an advisory contract. Its properties
are managed by the David Cronheim Management Company under a management
contract which is in effect on a year to year basis. David
Cronheim Management Company received $10,540 in 1995 and $17,046 in
1994 for the management of various properties. David Cronheim
Company also received $11,877 in commissions in 1995.
Page 2
ITEM 1 - BUSINESS (CONT'D)
The Company competes with other investors in real estate for
attractive investment opportunities. These investors include other
"equity" real estate investment trusts, limited partnerships, syndica-
tions and private investors, among others.
The Company has purchased, or intends to purchase in the future,
net-leased industrial properties. The Company's strategy is to obtain
a current favorable yield spread between the yield from the properties
and mortgage interest cost. With the current interest rates, this is
increasingly difficult. However, the Company continues to purchase
net-leased industrial properties since management believes that there
is a potential for long-term capital appreciation through investing in
well-located industrial properties. There is the risk that, on
expiration of current leases, the properties can become vacant or
re-leased at lower rents. The results obtained by the Company by
re-leasing the properties will depend on the market for industrial
properties at that time.
Under New Jersey Environmental Laws, inspections of the proper-
ties are made and certificates of compliance are obtained upon the sale
of property or upon a change of tenancy. Therefore, there is no assur-
ance that, in connection with compliance with state environmental
regulations, substantial capital expenditures would not be incurred at
the time the Company desired to sell its properties or at the time of a
change of tenancy. Management is not aware of any material envi-
ronmental problems affecting the Company's properties.
ITEM 2 - DETAILED DESCRIPTION OF PROPERTIES AND MORTGAGES
The Company operates as a real estate investment trust. Its
portfolio is primarily in equity holdings, some of which have been
long-term holdings carried on the financial statements of the Company
at depreciated cost. It is believed that their current market values
exceed both the original cost and the depreciated cost. The following
are photographs of the Company's equity holdings at September 30, 1995,
together with a brief description of each. (See Item 14, Schedule XI
for additional information on Real Estate and Accumulated Depreciation
and Item 14, Note 7 of the Notes to the Financial Statements for a
discussion of encumbrances on these equity holdings.)
Page 3
ITEM 2 - DETAILED DESCRIPTION OF PROPERTIES AND MORTGAGES (CONT'D)
PICTURE OF PROPERTY
SOMERSET, NEW JERSEY
The Company owns a two-thirds interest in this Somerset, New
Jersey, shopping center. The remaining one-third interest is owned by
D & E Realty, an unrelated entity. All assets, liabilities, income and
expense are allocated to the owners based upon their respective owner-
ship percentages. The total rentable space in this shopping center
excluding the Taco Bell, Inc. property mentioned below, is
approximately 42,800 square feet. This shopping center was 30% occupied
at September 30, 1995 due to the main store (33,000 square feet) being
vacant. Effective October 1, 1995, the main store was leased on a
net-net basis. This lease expires on September 30, 2000. The Company's
portion of the annual rental income on the main store will be
approximately $176,000. In addition 21,365 square feet of land was
leased to Taco Bell, Inc. on which a free-standing restaurant was
completed during 1993.
PICTURE OF PROPERTY
RAMSEY, NEW JERSEY
Ramsey Industrial Park, located on E. Crescent Avenue in Ramsey,
New Jersey is a 42,719 square foot building leased on a net-net basis
to Bogen Photo, Inc. The tenant exercised its option for a 5-year
renewal which will expire in 1998. The current annual rental income is
approximately $224,275.
Page 4
ITEM 2 - DETAILED DESCRIPTION OF PROPERTIES AND MORTGAGES (CONT'D)
PICTURE OF PROPERTY
MONSEY, NEW YORK
This steel and block building, located at 40 Robert Pitt Drive,
Monsey, New York, was purchased by the Company on September 30, 1980,
for $1,025,000. The 55,000 square foot building includes four ware-
houses of about 11,000 square feet each and 10,000 square feet of
offices in the front. The current annual rental income is
approximately $332,200. At September 30, 1995, this property was 93%
occupied.
PICTURE OF PROPERTY
MONACA, PENNSYLVANIA
The Moor Industrial Park is located in Monaca, Pennsylvania. It
consists of approximately 292,000 feet of rentable space located on 23
acres. The leases are all short term at relatively low rents. The
current annual rental income is approximately $371,400. At September
30, 1995, this property was 60% occupied. This property has 1,200 feet
of undeveloped river frontage. The vacant river frontage has
speculative value if a user needs river frontage or if the property
could be used for "River Boat" gambling facilities.
Page 5
ITEM 2 - DETAILED DESCRIPTION OF PROPERTIES (CONT'D)
PICTURE OF PROPERTY
ORANGEBURG, NEW YORK
This 50,400 square foot warehouse facility, located in Orange-
burg, New York, was purchased by the Company on November 25, 1992 for a
purchase price of $3,650,000. This warehouse facility is leased to the
Keebler Company on a net-net basis. The average annual rental income
over the term of the lease is approximately $433,000. The lease
expires on November 30, 2000.
PICTURE OF PROPERTY
SOUTH BRUNSWICK, NEW JERSEY
This 144,520 square foot building, located in South Brunwswick,
New Jersey, was purchased from Equitable Life Assurance Society for
$5,100,000 on March 30, 1993. It is occupied by Amway Corporation as a
distribution center on a 5-year lease which has been extended to June,
1997. Average annual income over the term of the lease is
approximately $595,000.
Page 6
ITEM 2 - DETAILED DESCRIPTION OF PROPERTIES AND MORTGAGES (CONT'D)
PICTURE OF PROPERTY
GREENSBORO, NORTH CAROLINA
This 40,560 square foot distribution center is the second such
facility leased to the Keebler Company. It is located in Greensboro,
North Carolina, and was purchased on April 15, 1993 for $2,165,000.
This net-net lease expires February 14, 2003. Annual rental income is
approximately $233,000.
PICTURE OF PROPERTY
JACKSON, MISSISSIPPI
This 26,340 square foot warehouse facility, located in Jackson,
Mississippi was purchased July 30, 1993 for a purchase price of
$1,435,000. This is the third in a series of warehouses occupied by
the Keebler Company on a net-net lease. The average annual rental
income over the term of the lease is approximately $169,000. This
lease expires September 30, 2003. This facility is currently
unoccupied. The Keebler Company is seeking a tenant to sub-lease this
facility.
Page 7
ITEM 2 - DETAILED DESCRIPTION OF PROPERTIES AND MORTGAGES (CONT'D)
PICTURE OF PROPERTY
FRANKLIN, MASSACHUSETTS
This 84,376 square foot warehouse facility, located in Franklin,
Massachusetts was purchased on October 20, 1993 for a purchase price of
$4,700,000. This is the fourth of the acquisitions of Keebler Company
net-leased warehouses. The average annual rental income over the term
of the lease is approximately $516,000. This lease expires on January
31, 2004.
PICTURE OF PROPERTY
WICHITA, KANSAS
This 44,136 square foot warehouse facility in Wichita, Kansas was
purchased on February 17, 1994 for a purchase price of $1,765,000.
This is the fifth of the acquisitions of Keebler Company net-leased
warehouses. The average annual rental income over the term of the
lease is approximately $195,000. This lease expires May 30, 2005.
Page 8
ITEM 2 - DETAILED DESCRIPTION OF PROPERTIES AND MORTGAGES (CONT'D)
PICTURE OF PROPERTY
URBANDALE, IOWA
This 36,150 square foot warehouse facility in Urbandale, Iowa was
purchased on March 31, 1994 for the purchase price of $2,055,000. This
is the sixth of the acquisitions of Keebler Company net-leased
warehouses. The average annual rental income over the term of the lease
is approximately $225,000. This lease expires June 30, 2000. The
Keebler Company has successfully sub-leased this facility to the Warren
Supply Company.
PICTURE OF PROPERTY
RICHLAND, MISSISSIPPI
This 36,000 square foot warehouse facility was purchased on March
31, 1994 for the purchase price of $1,400,000. This facility is 100%
net leased to the Federal Express Corporation for an annual rental
income of approximately $140,000 over the term of the lease. This
lease expires on March 31, 2004.
Page 9
ITEM 2 - DETAILED DESCRIPTION OF PROPERTIES AND MORTGAGES (CONT'D)
PICTURE OF PROPERTY
O'FALLON, MISSOURI
On October 13, 1994, the Company purchased a 102,135 square foot
warehouse facility in O'Fallon, Missouri. This warehouse facility is
100% net-leased to PPG Industries, Inc. The purchase price was
$3,525,000. The average annual rental income over the term of the lease
is approximately $335,000. This lease expires June 30, 2001.
ITEM 3 - LEGAL PROCEEDINGS
None
ITEM 4 - SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS
No matters were submitted during the fourth quarter of 1995 to a
vote of security holders through the solicitation of proxies or
otherwise.
Page 10
PART II
ITEM 5 - MARKET FOR REGISTRANT'S COMMON EQUITY AND RELATED STOCKHOLDER
MATTERS
The shares of Class A common stock of Monmouth Real Estate In-
vestment Corporation are traded on the National Association of Securities
Dealers Automated Quotation (NASDAQ symbol MNRTA). The per share range of
high and low market prices and distributions paid to shareholders during
each quarter of the last two years were:
1995 1994
Market Price Market Price
Fiscal Qtr. High Low Distrib. Fiscal Qtr. High Low Distrib.
First 6-1/8 5 $.125 First 7-1/2 6-1/8 $.125
Second 5-3/4 5 .125 Second 7-1/2 7 .125
Third 6 5-1/4 .125 Third 7-1/4 6-5/8 .125
Fourth 5-3/4 4-7/8 .125 Fourth 7-1/8 6 .125
_____ _____
$. 50 $. 50
===== =====
The over-the-counter market quotations reflect the inter-dealer
prices, without retail mark-up, mark-down or commission, and may not
necessarily represent actual transactions.
On September 30, 1995, the closing price was 5-3/8.
As of September 30, 1995, there were approximately 888 shareholders
of record with shares of Class A common stock of the Company.
It is the Company's intention to continue distributing quarterly
dividends. On October 13, 1995, the Company's declared a dividend of
$.125 to be paid on December 15, 1995 to shareholders of record November
15, 1995.
Page 11
<TABLE>
<CAPTION>
ITEM 6 - SELECTED FINANCIAL DATA
September 30,
1995 1994 1993 1992 1991
<S> <C> <C> <C> <C> <C>
INCOME STATEMENT DATA:
Total Income $ 4,240,859 $ 3,870,841 $ 3,398,116 $ 2,737,876 $ 2,732,280
Total Expenses 3,293,692 2,856,210 2,134,666 1,598,339 1,786,684
Gains on Sales
of Assets 38,766 392,416 16,551 46,349 8,195
Net Income 985,933 1,407,047 1,280,001 1,185,886 953,791
Net Income
Per Share .31 .49 .51 .51 .45
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
BALANCE SHEET DATA:
Total Assets $30,289,860 $29,234,128 $22,550,291 $16,505,882 $15,473,552
Long-Term
Obligations 14,522,503 13,681,614 7,708,382 5,833,656 6,128,280
Shareholders'
Equity 14,247,867 13,157,339 10,835,102 9,146,452 7,990,859
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
OTHER INFORMATION:
Average Number
of Shares
Outstanding 3,212,064 2,878,951 2,536,034 2,304,506 2,101,457
Funds from
Operations* $1,891,320 $1,840,953 $1,697,876 $1,373,160 $1,161,980
Funds from
Operations*
Per Share .59 .64 .67 .60 .55
Cash Dividends
Per Share .50 .50 .50 .50 .625
* Defined as net income, excluding gains (or losses) from sales of assets,
plus depreciation and amortization.
</TABLE>
Page 12
<TABLE>
<CAPTION>
ITEM 6 - SELECTED FINANCIAL DATA (CONT'D)
SUMMARY OF OPERATIONS BY PROPERTY
FOR THE YEARS ENDED SEPTEMBER 30,
1995 1994 1993
Net Rental Income
<S> <C> <C> <C>
Somerset, New Jersey $ 58,814 $ 231,751 $ 192,100
Morris Plains, New Jersey* -0- 31,926 25,827
Ramsey, New Jersey 180,301 176,150 203,488
Monaca, Pennsylvania 142,576 184,907 300,782
Monsey, New York 237,034 166,558 161,878
Orangeburg, New York 155,360 102,753 114,078
South Brunswick, New Jersey 157,965 179,391 77,351
Greensboro, North Carolina 28,994 27,133 12,460
Jackson, Mississippi 61,474 53,956 4,186
Franklin, Massachusetts 206,608 166,112 -0-
Wichita, Kansas 21,936 17,205 -0-
Urbandale, Iowa 83,855 39,478 -0-
Richland, Mississippi 38,843 289 -0-
O'Fallon, Missouri 84,769 -0- -0-
__________ __________ __________
Net Rental Income 1,458,529 1,377,609 1,092,150
Net Interest and Other Income 59,757 118,208 598,805
___________ __________ __________
TOTAL 1,518,286 1,495,817 1,690,955
Genl. & Administrative Expenses (571,119) (481,186) (427,505)
__________ __________ __________
Income Before Gains 947,167 1,014,631 1,263,450
Gain on Sale of Investments 38,766 392,416 16,551
__________ __________ __________
NET INCOME $ 985,933 $1,407,047 $1,280,001
========== ========== ==========
* This property was sold during fiscal 1994.
</TABLE>
Page 13
ITEM 7 - MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND
RESULTS OF OPERATIONS
Liquidity and Capital Resources
Monmouth Real Estate Investment Corporation (the Company) op-
erates as a real estate investment trust deriving its income primarily
from real estate rental operations. At September 30, 1995, the Company
increased shareholders' equity to $14,247,867 as compared to
$13,157,339 in 1994 and $10,835,102 in 1993. The Company's net income
was $985,933 in 1995 as compared to $1,407,047 in 1994 and $1,280,001
in 1993.
The Company finances its purchases through mortgages on its
acquisitions. The Company has a $1,000,000 line of credit for acqui-
sition purposes. The Company also has a $1,000,000 line of credit for
working capital purposes.
The Company's ability to generate cash adequate to meet its needs
is dependent primarily on income from its real estate investments, the
sale of real estate investments, collection of mortgages receivable,
refinancing of mortgage debt, leveraging of real estate investments,
availability of bank borrowings, proceeds from the Dividend Reinvest-
ment and Stock Purchase Plan, and access to the capital markets.
Purchases of new properties, payments of expenses related to real
estate operations, capital improvements programs, debt service,
management and professional fees, and dividend requirements place de-
mands on the Company's liquidity.
The Company intends to operate its existing properties from the
cash flow generated by the properties. However, the Company's ex-
penses are affected by various factors, including inflation. Increases
in operating expenses raise the breakeven point for a property and, to
the extent that they cannot be passed on through higher rents, reduce
the amount of available cash flow which can adversely affect the market
value of the property.
The Company has shifted its focus from mortgage investments to
equity investments. During the past three years, the Company purchased
nine net-leased warehouse facilities at an aggregate cost of
approximately $26,000,000. The Company incurred a total of
approximately $18,000,000 in debt relating to these purchases.
The Company expects to make additional real estate investments
from time to time. The funds for such investments may come from bank
borrowings, proceeds received but not distributed on property sales,
refinancing of existing properties, and proceeds of the Dividend
Reinvestment and Stock Purchase Plan.
Page 14
ITEM 7 - MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND
RESULTS OF OPERATIONS (CONT'D)
Funds generated are expected to be sufficient to meet debt ser-
vice requirements and capital expenditures of the Company.
Cash provided from operations amounted to $2,267,039 in 1995 as
compared to $1,256,811 in 1994 and $905,101 in 1993.
At September 30, 1995, the Company had total liabilities of
$16,041,993 and total assets of $30,289,860. Accordingly, the Company
believes that it has the ability to meet its obligations and to
generate funds for new investments.
The Company has a Dividend Reinvestment and Stock Purchase Plan.
During 1995, a total of $1,650,574 in additional capital was raised.
The success of the Plan resulted in a substantial improvement in the
Company's liquidity and capital resources in 1995. It is
anticipated that participants will continue in the Plan in fiscal 1996.
Therefore, the Company anticipates that the Plan will result in further
increased liquidity and capital resources in 1996.
Results of Operations
The Company's activities primarily generate rental income. Net
income for the fiscal year ended September 30, 1995 was $985,933 as
compared to $1,407,047 in 1994 and $1,280,001 in 1993. Net rental in-
come for the fiscal year ended September 30, 1995 was $1,458,529 as
compared to $1,377,609 in 1994 and $1,092,150 in 1993. The following is
a discussion of the results of operations by location.
Somerset, New Jersey
During 1995, net rental income decreased primarily as a re-
sult of decreased occupancy in the main store. During 1994,
net rental income increased due to 100% occupancy at the
end of 1993.
Morris Plains, New Jersey
Net rental income in 1995 was -0- as the property was sold
on March 28, 1994, resulting in a realized gain of
$374,000. In 1994 and 1993, rental income was stable.
Page 15
ITEM 7 - MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION
AND RESULTS OF OPERATIONS (CONT'D)
Ramsey, New Jersey
Net rental income remained relatively stable for 1995. Net
rental income decreased during 1994 as a result of the renewal
of leases at lower rental rates.
Monaca, Pennsylvania
The decrease in net rental income during 1995 and 1994 is the
result of decreased occupancy in the fourth quarter of 1993.
Occupancy went from 82% at September 30, 1993 to
approximately 60% at September 30, 1994 and 1995 due to a
loss of one tenant.
Monsey, New York
Net rental income increased $70,000 during 1995 as a result of
increased occupancy and rates. Net rental income
remained relatively stable for 1994 as compared to 1993.
Orangeburg, New York
This warehouse facility was acquired during 1993. It is net
leased to the Keebler Corporation (Keebler). Average monthly
rental income over the term of the lease is $36,094.
Net rental income during 1994 and 1995 represents a full
year's income. Net rental income in 1994 also included the
amortization of loan costs on a loan which was refinanced that
year.
South Brunswick, New Jersey
This warehouse facility was acquired during 1993. It is net
leased to the Amway Corporation. Average monthly rental
income over the term of the lease is $49,555. The increase in
1994 was due to 1993 being a partial year. The decrease in
1995 was due to an increase in interest expense.
Interest on the mortgage on this property is at a floating
rate of prime plus 1%. Prime was 7-3/4% at September
30, 1994 as compared to 8-3/4% at September 30, 1995.
Greensboro, North Carolina
This warehouse facility was acquired during 1993. It is net
leased to Keebler. Average monthly rental income over the
term of the lease is $19,435. Net rental income during 1994
and 1995 represents a full year's income.
Jackson, Mississippi
This warehouse facility was acquired during 1993. It is net
leased to Keebler. Average monthly rental income over the
term of the lease is $14,073. Net rental income during 1994
and 1995 represents a full year's income.
Page 16
ITEM 7 - MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION
AND RESULTS OF OPERATIONS (CONT'D)
Franklin, Massachusetts
This warehouse facility was acquired during 1994. It is net
leased to Keebler. Average monthly rental income over the term
of the lease is $43,027. Net rental income during 1995
represents a full year's income.
Wichita, Kansas
This warehouse facility was acquired during 1994. It is net
leased to Keebler. Average monthly rental income over the term
of the lease is $16,242. Net rental income during 1995
represents a full year's income.
Urbandale, Iowa
This warehouse facility was acquired during 1994. It is net
leased to Keebler. Average monthly rental income over the term
of the lease is $18,780. Net rental income during 1995
represents a full year's income.
Richland, Mississippi
This warehouse facility was acquired during 1994. It is net
leased to the Federal Express Corporation. Average monthly
rental income over the term of the lease is $11,700. Net
rental income during 1995 represents a full year's income.
O'Fallon, Missouri
This warehouse facility was acquired during 1995. It is net
leased to PPG Industries, Inc. Average monthly rental income
over the term of the lease is $29,376.
The Company also generated income from its mortgage investing
activities. Interest and other income continue to decrease. During
1994, the Company no longer made mortgage loans. The Company shifted
from mortgage investments to equity investments. The decrease in 1995
and 1994 was primarily the result of the decrease in mortgage
investments.
General and administrative expenses increased during 1995
primarily as a result of increased professional fees. General and
administrative expenses increased during 1994 primarily as a result of
amortization of financing costs incurred on the lines of credit.
The Company recognized a deferred gain from the Howell Township
installment sale of approximately $39,000, $18,000 and $17,000 for
1995, 1994 and 1993, respectively. In addition, the Company sold the
Morris Plains, NJ property during 1994 for a gain of approximately
$374,000.
Page 17
<TABLE>
<CAPTION>
ITEM 8 - FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA
The financial statements and supplementary data listed in Part VI,
Item 14 are incorporated herein by reference and filed as part of this report.
The following is the Unaudited Selected Quarterly Financial Data:
SELECTED QUARTERLY FINANCIAL DATA (UNAUDITED)
THREE MONTHS ENDED
_________________________________________________________________________
FISCAL 1995 12/31/94 3/31/95 6/30/95 9/30/95
<S> <C> <C> <C> <C>
Total Income $1,098,630 $1,044,997 $1,039,937 $1,057,295
Total Expenses 784,849 796,097 846,773 865,973
Gains on Sales
of Assets 4,800 4,800 4,800 24,366
Net Income 318,581 253,700 197,964 215,688
Net Income per Share .10 .08 .06 .07
</TABLE>
<TABLE>
<CAPTION>
THREE MONTHS ENDED
__________________________________________________________________________
FISCAL 1994 12/31/93 3/31/94 6/30/94 9/30/94
<S> <C> <C> <C> <C>
Total Income $ 909,604 $ 945,338 $1,012,631 $1,003,268
Total Expenses 639,598 719,820 778,161 718,631
Gains on Sales
of Assets 3,900 3,900 3,900 380,716
Net Income 273,906 229,418 238,370 665,353
Net Income per Share .10 .08 .08 .23
</TABLE>
ITEM 9 - CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING
DISCLOSURE
None
Page 18
ITEM 10 - DIRECTORS AND EXECUTIVE OFFICERS OF THE REGISTRANT
Principal Occupation Director Shares Percent
Name Age and Title Past Five Years Since Owned (1) of Stock
Ernest V. Bencivenga Financial Consultant; 1968 7,156 0.21%
(77) Treasurer and Director (1961
Treasurer and to present) and Secretary (1967
Director to present) of Monmouth Capital
Corporation; Director (1969
to present) and Secretary/
Treasurer (1984 to present) of
United Mobile Homes, Inc.
Anna T. Chew Certified Public Accountant; 1993 3,944 (2) 0.12%
(37) Controller (1991 to present)
Controller and and Director (1994 to present)
Director of Monmouth Capital Corporation;
Vice President (1995 to present),
Director (1994 to present) and
Controller (1991 to 1995) of United
Mobile Homes, Inc.; Senior Manager
(1987 to 1991) of KPMG Peat Marwick.
Daniel D. Cronheim Attorney at Law, Daniel D. 1989 14,312 0.42%
(40) Cronheim, Esq. (1982 to
Director present); Executive Vice
President (1989 to present) and
General Counsel (1983 to present)
of David Cronheim Company.
Boniface DeBlasio Chairman of the Board 1968 10,788 0.32%
(74) (1968 to present) and
Director Director (1961 to present) of
Monmouth Capital Corporation.
Ara K. Hovnanian President (1988 to present) 1989 41 --
(36) and Director (1981 to
Director present) of Hovnanian
Enterprises, Inc., a publicly-
owned company specializing
in the construction of housing.
Charles P. Kaempffer Investor; Director (1970 1974 35,596 (3) 1.05%
(58) to present) of Monmouth
Director Capital Corporation; Director
(1969 to present) of United Mobile
Homes, Inc.
Page 19
ITEM 10 - DIRECTORS AND EXECUTIVE OFFICERS OF THE REGISTRANT (CONT'D)
Principal Occupation Director Shares Percent
Name Age and Title Past Five Years Since Owned (1) of Stock
Eugene W. Landy Attorney at Law, Landy and 1968 369,620 (4) 10.90%
(62) Landy; President and
President, CEO Director (1961 to present) of
and Director Monmouth Capital Corporation;
Chairman of the Board (1995 to
present); Director
(1969 to present) and President
(1969 to 1995) of United Mobile
Homes, Inc.
Samuel A. Landy Attorney at Law (1987 to 1989 101,618 (5) 2.99%
(34) present) of Landy and Landy;
Director President (1995 to
present); Director (1991 to
present) and Vice President
(1991 to 1995) of United
Mobile Homes, Inc.; Director
(1994 to present) of
Monmouth Capital Corporation.
W. Dunham Morey Certified Public Accountant, 1968 42,387 (6) 1.25%
(73) W. Dunham Morey, CPA;
Director Director (1961 to present) of
Monmouth Capital Corporation.
Robert G. Sampson Investor; Director (1963 to 1968 67,774 (7) 2.00%
(70) present) of Monmouth Capital
Director Corporation; Director (1969 to
present) of United Mobile Homes,
Inc.; Director (1972 to 1993) of
United Jersey Bank,
N.A. (formerly Franklin
State Bank); General Partner (1983
to present) of Sampco, Ltd., an
investment group.
Page 20
ITEM 10 - DIRECTORS AND EXECUTIVE OFFICERS OF THE REGISTRANT (CONT'D)
(1) Beneficial ownership, as defined herein, includes Class A Common
Stock as to which a person has or shares voting and/or investment
power.
(2) Held jointly with Ms. Chew's husband; includes 609 shares held in
Ms. Chew's 401(k) Plan.
(3) Includes (a) 13,363 shares owned by Mr. Kaempffer's wife; and (b)
1,080 shares in joint name with Mrs. Kaempffer.
(4) Includes (a) 68,168 shares owned by Mr. Landy's wife; (b) 148,425
shares held in the Landy & Landy, P.C. Profit Sharing Plan, of
which Mr. Landy is a Trustee with power to vote; and (c) 118,207
shares held in the Landy & Landy, P.C. Pension Plan, of which
Mr. Landy is a Trustee with power to vote. Excludes 24,728
shares held by Mr. Landy's adult children, in which he disclaims
any beneficial interest.
(5) Includes (a) 2,477 shares owned by Mr. Landy's wife, and (b)
18,456 shares held in custodial accounts for Mr. Landy's minor
children under the Uniform Gift to Minors' Act in which he dis-
claims any beneficial interest, but has power to vote, and (c)
4,557 shares held in Mr. Landy's 401(k) Plan.
(6) Includes 8,818 shares owned by Mr. Morey's wife.
(7) Includes 40,020 shares owned by the estate of Mr. Sampson's wife
and 6,000 shares held by Sampco, Ltd. in which he has a benefi-
cial interest.
The Directors as a class own 653,236 shares, which is 19.26% of
the outstanding shares.
Page 21
ITEM 11 - EXECUTIVE COMPENSATION
Summary Compensation Table
The following Summary Compensation Table shows compensation paid
by the Company for services rendered during 1995, 1994 and 1993 to the
Chief Executive Officer. There were no other executive officers whose
aggregate cash compensation exceeded $100,000:
Annual Compensation
Name and Principal Position Year Salary Bonus Other(1)
Eugene W. Landy 1995 None None $162,445(1)
Chief Executive Officer 1994 None None $142,130
1993 None None $116,055
(1) Represents Director's fees of $2,800 paid to Mr. Landy, management
fees of $97,000, legal fees of $3,645 paid to the firm of Landy & Landy
and $59,000 accural for pension and other benefits in accordance with
Mr. Landy's employment contract.
Employment Agreement
On December 9, 1994, the Company and Eugene W. Landy entered into an
Employment Agreement under which Mr. Landy receives an annual base
compensation (management fee) of $100,000 plus bonuses and customary
fringe benefits, including health insurance and five weeks vacation. In
lieu of annual increases in base compensation, there will be
additional bonuses voted by the Board of Directors. The Employment
Agreement is terminable by either party at any time subject to certain
notice requirements.
On severance of employment for any reason, Mr. Landy will receive
severance of $300,000 payable $100,000 on severance and $100,000 on the
first and second anniversaries of severance.
In the event of disability, Mr. Landy's compensation shall
continue for a period of three years, payable monthly.
On retirement, Mr. Landy shall receive a pension of $40,000 a
year for ten years, payable in monthly installments.
In the event of death, Mr. Landy's designated beneficiary shall
receive $300,000, $150,000 thirty days after death and the balance one
year after death.
The Employment Agreement terminates December 31, 1999.
Thereafter, the term of the Employment Agreement shall be automatically
renewed and extended for successive one-year periods.
Page 22
ITEM 11 - EXECUTIVE COMPENSATION (CONT'D)
Other Information
The Directors received a fee of $800 for each Board Meeting
attended. Prior to January, 1995, this fee was $400.
Except for specific agreements, the Company has no retirement
plan in effect for Officers, Directors or employees and, at present,
has no intention of instituting such a plan.
Cronheim Management Co. received the sum of $10,540 for management
fees. David Cronheim Company received $11,877 in commissions. These
totals are based on amounts paid or accrued during the fiscal year.
Management believes that the aforesaid fees are no more than what the
Company would pay for comparable services elsewhere.
Report of Board of Directors on Executive Compensation
Overview and Philosophy
The Company has a Compensation Committee consisting of two
independent outside Directors. This Committee is responsible for
making recommendations to the Board of Directors concerning
compensation. The Compensation Committee takes into consideration
three major factors in setting compensation.
The first consideration is the overall performance of the
Company. The Board believes that the financial interests of the
executive officers should be aligned with the success of the Company
and the financial interests of its shareholders. Increases in funds
from operations, the enhancement of the Company's equity portfolio, and
the success of the Dividend Reinvestment and Stock Purchase Plan all
contribute to increases in stock prices, thereby maximizing
shareholders' return.
The second consideration is the individual achievements made by
each officer. The Company is a small real estate investment trust
(REIT). The Board of Directors is aware of the contributions made by
each officer and makes an evaluation of individual performance based on
their own familiarity with the officer.
The final criteria in setting compensation is comparable wages in
the industry. In this regard, the REIT industry maintains excellent
statistics.
Page 23
ITEM 11 - EXECUTIVE COMPENSATION (CONT'D)
Evaluation
The Company continues to increase funds from operations. The
Committee reviewed the progress made by Eugene W. Landy, Chief
Executive Officer, in shifting the Company's focus from mortgage loans
to equity properties. The Committee also noted that Mr. Landy's
current compensation was less than the average salary received by Chief
Executive Officers of other REIT's. His base compensation under this
contract is $100,000 per year. The Committee has decided to grant Mr.
Landy a bonus of $10,000.
Comparative Stock Performance
The following line graph compares the total return of the Company's
common stock for the last five fiscal years to the NAREIT All REIT
Total Return Index, published by the National Association of Real
Estate Investment Trusts (NAREIT), and the S&P 500 Index for the same
period. The total return reflects stock price appreciation and
dividend reinvestment for all three comparative indices. The
information herein has been obtained from sources believed to be
reliable, but neither its accuracy nor its completeness is guaranteed.
MONMOUTH REAL ESTATE
INVESTMENT CORPORATION NAREIT S&P 500
1990 1OO 100 100
1991 108 134 131
1992 137 151 146
1993 175 197 165
1994 171 189 171
1995 164 211 221
Page 24
ITEM 12 - SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS
AND MANAGEMENT
On September 30, 1995, no person owned of record or was known by
the Company to own beneficially more than five percent of the shares of
the Corporation, except as follows:
Amount and Nature
Title of Name and Address of Beneficial Percent
Class of Beneficial Owner Ownership of Class
Class A Eugene W. Landy 369,620 10.90%
Common 20 Tuxedo Road
Stock Rumson, NJ 07760
ITEM 13 - CERTAIN RELATIONSHIPS AND RELATED PARTY TRANSACTIONS
Certain relationships and related party transactions are
incorporated herein by reference to Item 14, Note 9 of the Notes to the
Financial Statements - Related Party Transactions.
Page 25
PART IV
ITEM 14 - EXHIBITS, FINANCIAL STATEMENT SCHEDULES, AND REPORTS
ON FORM 8-K
(a)(1)The following Financial Statements are filed as part of
this report:
Page(s)
(i) Independent Auditors' Report 28
(ii) Independent Auditors' Report of former Auditors 29
(iii) Balance Sheets as of September 30, 1995 and 1994 30
(iv) Statements of Income for the years ended
September 30, 1995, 1994 and 1993 31
(v) Statements of Shareholders' Equity
for the years ended September 30, 1995, 1994 and 1993 32
(vi) Statements of Cash Flows for the years ended
September 30, 1995, 1994 and 1993 33
(vii) Notes to the Financial Statements 34 - 44
(a)(2)The following Financial Statement Schedules are
filed as part of this report:
(i) Schedule X - Supplementary Profit and Loss Information
for the years ended September 30, 1995, 1994 and 1993 45
(ii) Schedule XI - Real Estate and Accumulated Depreciation 46
as of September 30, 1995
Page 26
ITEM 14 - EXHIBITS, FINANCIAL STATEMENT SCHEDULES AND REPORTS
ON FORM 8-K (CONT'D)
(a)(3) Exhibits
(3) Articles of Incorporation and By-Laws
(i) Reference is hereby made to the Certificate of
Incorporation of Monmouth Real Estate Investment
Corporation filed with the Securities and Exchange
Commission on April 3, 1990 on Form S-4 (Registration No.
33-34103).
(ii) Reference is hereby made to the By-laws of Monmouth Real
Estate Investment Corporation filed with the Securities
and Exchange Commission on April 3, 1990 on Form S-4
(Registration No. 33-34103)
(10) Material Contracts
(a) Employment Agreement with Mr. Eugene W. Landy
dated December 9, 1994 is incorporated by reference to that
filed with the Company's Form 10-K filed with the Securities and
Exchange Commission on December 28, 1994.
(b) Employment Agreement with Mr. Ernest V. Bencivenga
dated November 9, 1993 is incorporated by reference
to that filed with the Company's Form 10-K filed with
the Securities and Exchange Commission on December
28, 1994.
(28) Additional Exhibits
Reference is hereby made to the Agreement and Plan of
Merger dated April 23, 1990 by and between Monmouth Real
Estate Investment Trust and Monmouth Real Estate
Investment Corporation filed with the Securities and
Exchange Commission on April 3, 1990 on Form S-4
(Registration No. 33-34103).
Page 27
Independent Auditors' Report
The Board of Directors and Shareholders
Monmouth Real Estate Investment Corporation:
We have audited the financial statements of Monmouth Real Estate
Investment Corporation as listed in the accompanying index insofar as
they relate to September 30, 1995 and 1994 and the years then ended.
In connection with our audits of the financial statements, we also have
audited the financial statement schedules as listed in the accompanying
index insofar as they relate to September 30, 1995 and 1994 and the
years then ended. These financial statements and financial statement
schedules are the responsibility of the Company's management. Our
responsibility is to express an opinion on these financial statements
and financial statement schedules based on our audits. The financial
statements and financial statement schedules of Monmouth Real Estate
Investment Corporation as of and for the year ended September 30, 1993
were audited by other auditors whose report thereon dated November 17,
1993 expressed an unqualified opinion on those statements.
We conducted our audits in accordance with generally accepted auditing
standards. Those standards require that we plan and perform the audit
to obtain reasonable assurance about whether the financial statements
are free of material misstatement. An audit includes examining, on a
test basis, evidence supporting the amounts and disclosures in the
financial statements. An audit also includes assessing the accounting
principles used and significant estimates made by management, as well
as evaluating the overall financial statement presentation. We believe
that our audits provide a reasonable basis for our opinion.
In our opinion, the 1995 and 1994 financial statements referred to
above present fairly, in all material respects, the financial position
of Monmouth Real Estate Investment Corporation as of September 30, 1995
and 1994, and the results of its operations and its cash flows for the
years then ended in conformity with generally accepted accounting
principles.
As discussed in Note 1 to the financial statements, effective October
1, 1994, the Company changed its method of accounting for equity
securities.
Also in our opinion, the related financial statement schedules, when
considered in relation to the basic financial statements taken as a
whole, present fairly, in all material respects, the information set
forth therein.
s/KPMG Peat Marwick LLP
KPMG Peat Marwick LLP
Short Hills, New Jersey
December 1, 1995
Page 28
INDEPENDENT AUDITORS' REPORT
We have audited the accompanying balance sheets of Monmouth Real Estate
Investment Corporation as of September 30, 1993 and 1992, and the
related statements of operations, stockholders equity and cash flows
for each of the years in the three year period ended September 30,
1993. These financial statements are the responsibility of the
Company's management. Our responsibility is to express an opinion on
these financial statements based on our audits.
We conducted our audits in accordance with generally accepted auditing
standards. Those standards require that we plan and perform the audit
to obtain reasonable assurance about whether the financial statements
are free of material misstatement. An audit includes examining, on a
test basis, evidence supporting the amounts and disclosures in the
financial statements. An audit also includes assessing the accounting
principles used and significant estimates made by management, as well
as evaluating the overall financial statement presentation. We believe
that our audits provide a reasonable basis for our opinion.
In our opinion, the financial statements referred to above present
fairly, in all material respects, the financial position of Monmouth
Real Estate Investment Corporation as of September 30, 1993 and 1992,
and the results of its operations and its cash flows for each of the
years in the three year period ended September 30, 1993 in conformity
with generally accepted accounting principles.
s/Cowan, Gunteski & Co.
Toms River, New Jersey
November 17, 1993
Page 29
<TABLE>
<CAPTION>
MONMOUTH REAL ESTATE INVESTMENT CORPORATION
BALANCE SHEETS
AS OF SEPTEMBER 30,
ASSETS 1995 1994
<S> <C> <C>
Real Estate Investments:
Land $ 4,545,324 $ 4,281,324
Buildings, Improvements and Equipment,
net of Accumulated Depreciation of
$3,657,061 and $2,873,357,respectively 23,966,469 21,331,075
Mortgage Loans Receivable 293,997 348,729
___________ ___________
Total Real Estate Investments 28,805,790 25,961,128
Cash and Cash Equivalents 144,019 1,454,240
Equity Securities Available for Sale
at Fair Value in 1995 and at the lower of
cost or fair value in 1994 273,038 214,298
Interest and Other Receivables 581,247 438,360
Prepaid Expenses 114,815 114,606
Lease Costs-Net of Accumulated
Amortization 59,742 90,634
Other Assets 311,209 960,862
___________ ___________
TOTAL ASSETS $30,289,860 $29,234,128
=========== ===========
LIABILITIES AND SHAREHOLDERS' EQUITY
Liabilities:
Mortgage Notes Payable $15,463,561 $15,458,310
Deferred Gains-Installment Sales 208,238 247,004
Other Liabilities 370,194 371,475
___________ ___________
Total Liabilities 16,041,993 16,076,789
___________ ___________
Shareholders' Equity:
Common Stock-Class A-$.01 Par Value,
8,000,000 and 4,000,000 Shares Authorized
in 1995 and 1994, respectively; 3,392,045
and 3,066,002 Shares Issued and Outstanding
in 1995 and 1994, respectively 33,920 30,660
Common Stock-Class B-$.01 Par Value,
100,000 Shares Authorized, No shares
Issued or Outstanding -0- -0-
Additional Paid-in Capital 14,155,207 12,796,784
Unrealized Holding Gains on Equity
Securities Available for Sale 58,740 -0-
Undistributed Income -0- 329,895
___________ ___________
Total Shareholders' Equity 14,247,867 13,157,339
___________ ___________
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY $30,289,860 $29,234,128
=========== ===========
See Accompanying Notes to the Financial Statements.
</TABLE>
Page 30
<TABLE>
<CAPTION>
MONMOUTH REAL ESTATE INVESTMENT CORPORATION
STATEMENTS OF INCOME
FOR THE YEARS ENDED SEPTEMBER 30,
1995 1994 1993
INCOME:
<S> <C> <C> <C>
Rental and Occupancy Charges $4,168,549 $3,676,207 $2,317,200
Interest and Other Income 72,310 194,634 1,080,916
__________ __________ __________
TOTAL INCOME 4,240,859 3,870,841 3,398,116
__________ __________ __________
EXPENSES:
Interest Expense 1,372,596 1,108,683 846,426
Management Fees 10,540 17,046 9,000
Real Estate Taxes 214,527 165,454 157,586
Professional Fees 276,167 210,808 230,465
Operating Expenses 340,204 447,407 313,909
Office and General Expense 267,554 263,936 193,108
Director Fees 28,400 16,800 15,600
Depreciation 783,704 626,076 368,572
__________ __________ __________
TOTAL EXPENSES 3,293,692 2,856,210 2,134,666
__________ __________ __________
Income Before Gains 947,167 1,014,631 1,263,450
Gains on Sale of Assets 38,766 392,416 16,551
__________ __________ __________
NET INCOME $ 985,933 $1,407,047 $1,280,001
========== ========== ==========
PER SHARE INFORMATION:
Average Number of Shares
Outstanding 3,212,064 2,878,951 2,536,034
========== ========== ==========
Income Before Gains $ .30 $ .35 $ .50
Gain on Sales of Assets .01 .14 .01
__________ __________ __________
NET INCOME $ .31 $ .49 $ .51
========== ========== ==========
See Accompanying Notes to the Financial Statements.
</TABLE>
Page 31
<TABLE>
<CAPTION>
MONMOUTH REAL ESTATE INVESTMENT CORPORATION
STATEMENTS OF SHAREHOLDERS' EQUITY
FOR THE YEARS ENDED SEPTEMBER 30
Unreal.
Holding
Gains on
Eq. Sec.
Additional Avail.
Common Stock Paid-In Undistrib. for
Number Amount Capital Income Sale
<S> <C> <C> <C> <C> <C>
Balance Sept. 30, 1992 2,432,335 $24,323 $ 8,784,768 $ 337,361 $ -0-
Shares Issued in
Connection with the
Dividend Reinvestment
and Stock Purchase Plan 278,599 2,786 1,666,594 -0- -0-
Distributions -0- -0- -0- (1,260,731) -0-
Net Income -0- -0- -0- 1,280,001 -0-
_________ _______ ___________ __________ _________
Balance Sept. 30, 1993 2,710,934 $27,109 $10,451,362 $ 356,631 $ -0-
Shares Issued in
connection with the
Dividend Reinvestment
and Stock Purchase Plan 355,068 3,551 2,345,422 -0- -0-
Distributions -0- -0- -0- (1,433,783) -0-
Net Income -0- -0- -0- 1,407,047 -0-
_________ _______ ___________ __________ _________
Balance Sept. 30, 1994 3,066,002 $30,660 $12,796,784 $ 329,895 $ -0-
Shares Issued in
connection with the
Dividend Reinvestment
and Stock Purchase Plan 326,043 3,260 1,647,314 -0- -0-
Distributions -0- -0- (288,891) (1,315,828) -0-
Net Income -0- -0- -0- 987,933 -0-
Unrealized Holding
Gains on Equity
Securities Avail-
able for Sale -0- -0- -0- -0- 58,740
_________ _______ ___________ ___________ _______
Balance Sept. 30, 1995 3,392,045 $33,920 $14,155,207 $ -0- $58,740
========= ======= =========== =========== =======
See Accompanying Notes to the Financial Statements.
</TABLE>
Page 32
<TABLE>
<CAPTION>
MONMOUTH REAL ESTATE INVESTMENT CORPORATION
STATEMENTS OF CASH FLOWS
FOR THE YEARS ENDED SEPTEMBER 30,
1995 1994 1993
<S> <C> <C> <C>
CASH FLOWS FROM OPERATING ACTIVITIES
Net Income $ 985,933 $1,407,047 $1,280,001
Noncash Items Included
in Net Income:
Depreciation 783,704 626,076 368,572
Amortization 160,449 200,246 65,854
Gains on Sales of Assets (38,766) (392,416) (16,551)
Changes In:
Interest & Other Receivables (142,887) (72,234) (230,878)
Prepaid Expenses (209) (12,805) 1,486
Other Assets and Lease Costs 520,096 (592,529) (584,549)
Other Liabilities (1,281) 93,426 21,166
__________ __________ __________
NET CASH PROVIDED FROM OPERATING
ACTIVITIES 2,267,039 1,256,811 905,101
__________ __________ __________
CASH FLOWS FROM INVESTING ACTIVITIES
Collections on Installment Sales 54,732 25,923 23,367
Collections on Loans -0- 3,571,321 6,606,460
Proceeds from Sales of Assets -0- 469,568 -0-
Proceeds from Sale and Other Reductions
of Marketable Securities -0- -0- 1,152,542
Additions to Land, Buildings,
and Improvements (3,683,098) (10,137,115)(12,741,343)
__________ __________ __________
NET CASH USED IN INVESTING
ACTIVITIES (3,628,366) (6,070,303) (4,958,974)
__________ __________ __________
CASH FLOWS FROM FINANCING ACTIVITIES
Proceeds from Mortgages 2,500,000 15,085,014 8,252,893
Net Proceeds (Repayments) from
Short Term Borrowings -0- (500,000) 500,000
Principal Payments of Mortgages (2,494,749) (10,298,478) (4,401,749)
Proceeds from Issuance of
Class A Common Stock 897,115 2,348,973 1,669,380
Dividends Paid (851,260) (1,433,783) (1,260,731)
__________ __________ __________
NET CASH PROVIDED FROM
FINANCING ACTIVITIES 51,106 5,201,726 4,759,793
__________ __________ __________
Net Increase (Decrease) in Cash (1,310,221) 388,234 705,920
Cash and Cash Equivalents
at Beginning of Year 1,454,240 1,066,006 360,086
__________ __________ __________
CASH AND CASH EQUIVALENTS
AT END OF YEAR $ 144,019 $1,454,240 $1,066,006
=========== ========== ==========
See Accompanying Notes to the Financial Statements.
</TABLE>
Page 33
MONMOUTH REAL ESTATE INVESTMENT CORPORATION
NOTES TO THE FINANCIAL STATEMENTS
SEPTEMBER 30, 1995
NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Description of the Business
Monmouth Real Estate Investment Corporation (the Company)
operates as a real estate investment trust deriving its income
primarily from real estate rental operations. As of September 30, 1995
and 1994, rental properties consist of thirteen and twelve,
respectively, commercial holdings. These properties are located in New
Jersey, New York, Pennsylvania, North Carolina, Mississippi,
Massachusetts, Kansas, Iowa and Missouri.
Buildings, Improvements and Equipment
Buildings, improvements and equipment are stated at the lower
of depreciated cost or net realizable value. Depreciation is computed
based on the straight-line method over the estimated useful lives of
the assets. These lives range from 5 to 40 years.
Revenue Recognition
Rental income from tenants with leases having scheduled rental
increases are recognized on a straight-line basis over the term of the
lease.
Gains and Deferred Gains on Installment Sales
Gains on the sale of real estate investments are recognized by
the full accrual method when the criteria for the method are met. Gen-
erally, the criteria are met when the profit on a given sale is
determinable, and the seller is not obliged to perform significant ac-
tivities after the sale to earn the profit. Alternatively, when the
foregoing criteria are not met, the Company recognizes gains by the
installment method. At September 30, 1995 and 1994, there was one de-
ferred gain related to the sale of the following real estate
investment:
Deferred Gain
Year of Sale Property 9/30/95 9/30/94
1986 Howell Township $208,238 $247,004
Page 34
NOTES TO THE FINANCIAL STATEMENTS (CONT'D)
SEPTEMBER 30, 1995
NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONT'D)
Investment in Equity Securities
On October 1, 1994, the Company adopted Statement of Financial
Accounting Standards No. 115, "Accounting for Certain Investments in
Debt and Equity Securities"(SFAS 115). SFAS 115 addresses the
accounting and reporting requirements for investments in equity
securities that have readily determinable values and all investments in
debt securities. SFAS 115 requires the classification of securities
among three categories: held-to-maturity, trading and
available-for-sale.
The Company's securities are classified as available-for-sale
and are carried at fair value in 1995 and at the lower of cost or fair
value in 1994. Gains or losses on the sale of securities are based on
identifiable cost and are accounted for on a trade date basis.
Unrealized holding gains and losses are excluded from earnings and
reported as a separate component of Shareholders' Equity until
realized.
Cash Equivalents
Cash equivalents consist of money market funds.
Earnings Per Share
Earnings per share is computed by dividing net income by the
weighted average number of shares outstanding during each period.
Income Tax
The Company has elected to be taxed as a Real Estate In-
vestment Trust (REIT) under Sections 856-858 of the Internal Revenue
Code. The Company will not be taxed on the portion of its income which
is distributed to shareholders, provided it distributes at lease 95% of
its taxable income, has at least 75% of its assets in real estate
investments and meets certain other requirements for qualification as a
REIT.
NOTE 2 - MORTGAGE LOANS RECEIVABLE
The following is a summary of the mortgage loans receivable at
September 30, 1995 and 1994:
Rate Maturity 9/30/95 9/30/94
Bonim Associates, Inc.
Howell Township Property 10% 1997 $293,997 $348,729
======== =========
Page 35
NOTES TO THE FINANCIAL STATEMENTS (CONT'D)
SEPTEMBER 30, 1995
NOTE 2 - MORTGAGE LOANS RECEIVABLE (CONT'D)
The original amount of the mortgage receivable with Bonim
Associates, Inc. was $514,000. This mortgage is current at September
30, 1995.
NOTE 3 - REAL ESTATE INVESTMENTS
The following is a summary of the cost and accumulated depre-
ciation of the Company's property and equipment at September 30, 1995
and 1994:
Buildings,
Improvements Accumul.
September 30, 1995 Land and Equipment Deprec.
NEW JERSEY:
Ramsey Ind. Building $ 52,639 $1,123,839 $ 468,592
Somerset(1) Shopping Cntr. 55,182 1,062,395 607,804
Eatontown Admin.Office -0- 14,968 14,519
South Brunswick Ind. Building 1,128,000 4,087,400 329,853
PENNSYLVANIA:
Monaca Ind. Building 330,773 1,667,537 707,931
NEW YORK:
Monsey Ind. Building 119,910 1,681,819 651,737
Orangeburg Ind. Building 694,720 2,977,372 271,775
NORTH CAROLINA:
Greensboro Ind. Building 327,100 1,853,700 144,680
MISSISSIPPI:
Jackson Ind. Building 218,000 1,233,500 86,481
Richland Ind. Building 211,000 1,195,000 45,960
MASSACHUSETTS
Franklin Ind. Building 566,000 4,148,000 159,532
KANSAS
Wichita Ind. Building 268,000 1,518,000 58,382
IOWA
Urbandale Ind. Building 310,000 1,758,000 67,613
MISSOURI
O'Fallon Ind. Building 264,000 3,302,000 42,202
__________ ___________ __________
Total at September 30, 1995 $4,545,324 $27,623,530 $3,657,061
========== =========== ==========
(1) This represents the Company's 2/3 interest in a joint venture
Page 36
NOTES TO THE FINANCIAL STATEMENTS (CONT'D)
SEPTEMBER 30, 1995
NOTE 3 - REAL ESTATE INVESTMENTS (CONT'D)
Buildings
Improvements Accumul.
September 30, 1994 Land and Equipment Deprec.
NEW JERSEY:
Ramsey Ind. Building $ 52,639 $1,041,886 $ 441,166
Somerset(1) Shopping Cntr. 55,182 1,051,611 567,917
Eatontown Admin.Office -0- 14,968 14,072
South Brunswick Ind. Building 1,128,000 4,087,400 200,078
PENNSYLVANIA:
Monaca Ind. Building 330,773 1,646,176 636,286
NEW YORK:
Monsey Ind. Building 119,910 1,678,819 596,213
Orangeburg Ind. Building 694,720 2,977,372 177,243
NORTH CAROLINA:
Greensboro Ind. Building 327,100 1,853,700 85,825
MISSISSIPPI:
Jackson Ind. Building 218,000 1,233,500 44,061
Richland Ind. Building 211,000 1,195,000 15,320
MASSACHUSETTS:
Franklin Ind. Building 566,000 4,148,000 53,177
KANSAS:
Wichita Ind. Building 268,000 1,518,000 19,461
IOWA:
Urbandale Ind. Building 310,000 1,758,000 22,538
__________ ___________ __________
Total at September 30, 1994 $4,281,324 $24,204,432 $2,873,357
========== =========== ==========
(1) This represents the Company's 2/3 interest in a joint venture.
Page 37
NOTES TO THE FINANCIAL STATEMENTS (CONT'D)
SEPTEMBER 30, 1995
NOTE 4 - ACQUISITIONS
On October 20, 1993, the Company purchased an 84,376 square foot
warehouse facility in Franklin, Massachusetts for $4,700,000. This
warehouse facility is 100% net leased to the Keebler Company (Keebler).
The Company used $3,450,000 of its mortgage funding line with United
Jersey Bank (UJB). This mortgage payable was at an interest rate of
prime plus 1% (subject to a minimum rate of 7% and a maximum rate of
14%) and was due May 1, 1995. On March 28, 1994, the Company
refinanced this mortgage with a $2,960,000 mortgage with United of
Omaha Life Insurance Company. Interest on this mortgage is at a fixed
rate of 7% and matures on October 1, 2004.
On February 17, 1994, the Company purchased a 44,136 square foot
warehouse facility in Wichita, Kansas for $1,765,000. This warehouse
facility is 100% net leased to Keebler. The Company assumed a
$1,315,014 mortgage with Aid Association of Lutherans. This mortgage
payable is at an interest rate of 10.25% and matures on June 15, 2016.
On March 31, 1994, the Company purchased a 36,150 square foot
warehouse facility in Urbandale, Iowa for $2,055,000. This warehouse
facility is 100% net leased to Keebler. The Company entered into a
$1,410,000 mortgage with United of Omaha Life Insurance Company.
Interest on this mortgage is at a fixed rate of 7% and matures on
October 1, 2004. This mortgage, together with the United of Omaha
mortgages on the warehouse facilities in Massachusetts and New York,
are cross-collateralized. Keebler has successfully sub-leased this
facility to a third party.
On March 31, 1994, the Company purchased a 36,000 square foot
warehouse facility in Richland, Mississippi for $1,400,000. This
warehouse facility is 100% net leased to The Federal Express
Corporation. The Company used $1,400,000 of its line of credit with
NatWest NJ Bank (formerly Citizens First National Bank of New Jersey).
On May 13, 1994, the Company refinanced this mortgage with a $950,000
mortgage with Business Men's Assurance Company of America. This
mortgage payable is at an interest rate of 7.5% and matures on June 1,
2004.
On October 13, 1994, the Company purchased a 102,135 square foot
warehouse facility in O'Fallon, Missouri. This warehouse facility is
100% net leased to PPG Industries, Inc. The purchase price was
$3,525,000. The Company obtained a $2,500,000 mortgage on this
property from Midwestern United Life Insurance Company(Midwestern).
This mortgage payable is at an interest rate of 8.5%(subject to an
adjustment after five years, at Midwestern's option) and is due on
November 1, 2007. Midwestern has the right to accelerate the maturity
to November 1, 2004. In addition to this mortgage, the Company used
$1,000,000 of its line of credit with NatWest NJ Bank. This line of
credit was subsequently repaid. The purchase of this warehouse facility
was part of a tax-free exchange in accordance with the Internal Revenue
Code. Included in other assets at September 30, 1994 is a $594,693
deposit relating to this purchase.
Page 38
NOTES TO THE FINANCIAL STATEMENTS (CONT'D)
SEPTEMBER 30, 1995
NOTE 5 - EQUITY SECURITIES AVAILABLE FOR SALE
The following is a summary of equity securities available for
sale at September 30, 1995 and 1994:
Market
Cost of Value Carrying Value
Description Issue 9/30/95 9/30/95 9/30/94
Prudential Realty Trust
Income Shares-40,500 shs $ 147,717 $ 197,438 $ 197,438 $ 147,717
HRE Properties-5,400 shs 66,581 75,600 75,600 66,581
__________ _________ _________ __________
Total $ 214,298 $ 273,038 $ 273,038 $ 214,298
========== ========= ========= ==========
There were no sales of marketable equity securities during 1995 or
1994.
NOTE 6 - SIGNIFICANT CONCENTRATIONS OF CREDIT RISK
The Company has approximately 997,000 feet of property, of which
approximately 282,000 square feet or 28% is leased to Keebler and
approximately 145,000 square feet or 15% is leased to the Amway
Corporation at September 30, 1995. Rental and occupancy charges from
Keebler totalled approximately $1,772,000 and $1,547,000 for the years
ended September 30, 1995 and 1994 respectively. Rental and occupancy
charges from the Amway Corporation totalled approximately $595,000 for
each of the years ended September 30, 1995 and 1994. During 1995 and
1994, rental income and occupancy charges from properties leased to the
Keebler Company and Amway Corporation approximated 57% and 58% of total
rental and occupancy charges, respectively.
Page 39
NOTES TO THE FINANCIAL STATEMENTS (CONT'D)
SEPTEMBER 30, 1995
NOTE 7 - MORTGAGE NOTES PAYABLE
The following is a summary of the mortgages payable at September
30, 1995 and 1994:
Fiscal Balance
Mortgage Rate Maturity 9/30/95 9/30/94
Industrial Building
Orangeburg, New York 7% 2004 $2,350,032 $2,529,028
Industrial Building
South Brunswick, New Jersey P+1% 1998 2,445,000 3,237,500
Industrial Building
Jackson, Mississippi 8.5% 2008 737,116 767,576
Industrial Building
Greensboro, North Carolina 10% 1998 1,417,065 1,432,474
Industrial Building
Franklin, Massachusetts 7% 2004 2,675,422 2,879,202
Industrial Building
Wichita, Kansas 10.25% 2016 1,287,963 1,305,066
Industrial Building
Urbandale, Iowa 7% 2004 1,274,440 1,371,511
Industrial Building
Richland, Mississippi 7.5% 2004 877,066 935,953
Industrial Building
O'Fallon, Missouri 8.5% 2007 2,399,457 -0-
Industrial Building
Ramsey, New Jersey P+1.5% 1996 -0- 1,000,000
___________ ___________
Total Mortgage Notes Payable $15,463,561 $15,458,310
=========== ===========
Page 40
NOTES TO THE FINANCIAL STATEMENTS (CONT'D)
SEPTEMBER 30, 1995
NOTE 7 - REAL ESTATE MORTGAGE NOTES PAYABLE (CONT'D)
Principal on the foregoing debt is scheduled to be paid as
follows:
Years Ending September 30, 1996 $ 941,058
1997 1,000,442
1998 4,344,969
1999 935,634
2000 1,007,758
Thereafter 7,233,700
___________
Total $15,463,561
===========
Lines of Credit
Prior to fiscal 1995, the Company had a mortgage funding line
with UJB. Each advance under this line required individual mortgages
on properties and individual bank approval. In fiscal 1995, this line
was reduced to $1,000,000 secured by a second mortgage on the South
Brunswick Industrial Building. This line may be used for any purpose.
Any request for new mortgage loans will be submitted to the bank for
consideration on a case-by-case basis. As of September 30, 1995, this
line was fully available.
The Company has a $1,000,000 revolving credit line with NatWest,
NJ Bank. Under the terms of this line, the Company can take down
various sums for acquisitions at an interest rate of prime plus 1.5%.
Eighty percent of each advance must be repaid in 180 days and the
remainder repaid over four equal quarterly payments. This credit line
is secured by a mortgage on the Ramsey, New Jersey property. Under the
terms of the agreement, the Company is required to maintain a total
debt to total equity ratio of not greater than 2.25 to 1.00, and to
increase shareholders' equity quarterly by not less than $150,000.
This credit line expires on March 22, 1996.
NOTE 8 - INCOME FROM LEASES
The Company derives income from operating leases on its
commercial properties. In general, these leases are written for periods
up to ten years with various provisions for renewal. These leases
generally contain clauses for reimbursement (or direct payment) of real
estate taxes, maintenance, insurance and certain other operating
expenses of the properties. Minimum rents due under noncancellable
leases at September 30, 1995 are scheduled as follows: 1996
$3,974,482; 1997 - $3,411,087; 1998 - $2,844,305; 1999 - $2,748,540;
2000 - $2,691,657; thereafter - $5,455,582.
Page 41
NOTES TO THE FINANCIAL STATEMENTS (CONT'D)
SEPTEMBER 30, 1995
NOTE 9 - RELATED PARTY TRANSACTIONS
Certain Directors and Officers of the Company are also Di-
rectors and Officers of United Mobile Homes, Inc. (United). The Company
made loans to United, all of which were repaid in fiscal 1994. Interest
income from United was $116,187 and $934,664 for the fiscal years
ended September 30, 1994 and 1993, respectively.
Directors fees and amounts paid or accrued to affiliated persons
for management and legal services amount to $162,445 for the fiscal
year. Eugene W. Landy received $2,800 as Director. The firm of Landy
& Landy received $97,000 and $3,645 as management and legal fees,
respectively. An accrual of $59,000 was made for pension and other
benefits in accordance with Mr. Landy's employment contract.
Additionally, the Board of Directors has granted to Mr. Landy a loan of
$100,000 at an interest rate of 10% due May 21, 1996. Principal and
accrued interest is payable at maturity.
On December 9, 1994, the Company and Eugene W. Landy entered into
an Employment Agreement under which, on severance of employment for any
reason, Mr. Landy will receive severance of $300,000 payable $100,000
on severance and $100,000 on the first and second anniversaries of
severance.
In the event of disability, Mr. Landy's compensation shall
continue for a period of three years, payable monthly.
On retirement, Mr. Landy shall receive a pension of $40,000 a
year for ten years, payable in monthly installments.
In the event of death, Mr. Landy's designated beneficiary shall
receive $300,000, $150,000 thirty days after death and the balance one
year after death.
The Employment Agreement terminates December 31, 1999.
Thereafter, the term of the Employment Agreement shall be automatically
renewed and extended for successive one-year periods. The Employment
Agreement is terminable by either party at any time subject to certain
notice requirements.
Cronheim Management Co. received the sum of $10,540, $17,046 and
$11,500 for management fees during the years ended 1995, 1994 and 1993.
David Cronheim Company received $11,877 in commissions in 1995.
Daniel Cronheim received $2,800 as Director in 1995.
Page 42
NOTES TO THE FINANCIAL STATEMENTS (CONT'D)
SEPTEMBER 30, 1995
NOTE 10 - INCOME TAXES
Federal Income Tax
The Company has elected to be taxed as a Real Estate In-
vestment Trust under the applicable provisions of the Internal Revenue
Code and the comparable New Jersey Statutes. Under such provisions,
the Company will not be taxed on that portion of its taxable income
distributed currently to shareholders, provided that at least 95% of
its taxable income is distributed. As the Company intends to dis-
tribute all of its income currently, no provision has been made for
Federal income taxes.
Federal Excise Tax
The Company does not have an excise tax liability for the
calendar years 1995 and 1994 since it intends to or has distributed
all of its annual income.
State Income and Franchise Tax
State income and franchise taxes for the years ended September
30, 1995, 1994 and 1993 amounted to $41,702, $42,455 and $39,669,
respectively. The Company incurs state income taxes in various states.
Additionally, certain states recognize REIT status and state taxes in
those states are reduced.
NOTE 11 - DIVIDEND REINVESTMENT AND STOCK PURCHASE PLAN
The Company implemented a dividend reinvestment and stock
purchase plan (the "Plan") effective December 15, 1987. Under the
terms of the Plan, and subsequent offerings, shareholders who par-
ticipate may reinvest all or part of their dividends in additional
shares of the Company at approximately 95% of their market price. Ac-
cording to the terms of the Plan, shareholders may also purchase ad-
ditional shares, at approximately 95% of their market price by making
optional cash payments monthly.
Amounts received, including dividend reinvestment of $753,459
and $700,591 in 1995 and 1994, respectively and shares issued in
connection with the Plan for the years ended September 30, 1995 and
1994 were as follows:
9/30/95 9/30/94
Amounts Received* $1,650,574 $2,348,973
Shares Issued 326,043 355,068
*These amounts are net of the 5% discount under the plan. The total
discount amounted to $80,473 and $96,252 during the fiscal year ended
September 30, 1995 and 1994, respectively.
Page 43
NOTES TO THE FINANCIAL STATEMENTS (CONT'D)
SEPTEMBER 30, 1995
NOTE 12 - DISTRIBUTIONS
The following cash distributions were paid to shareholders
during the years ended September 30, 1995 and 1994:
1995 1994
Quarter Ended Amount Per Share Amount Per Share
December 31 $ 385,717 $ .125 $ 338,867 $ .125
March 31 396,685 .125 354,399 .125
June 30 405,352 .125 363,462 .125
September 30 416,965 .125 377,055 .125
__________ ______ __________ ______
$1,604,719 $ .500 $1,433,783 $ .500
========== ====== ========== ======
The above amounts do not include discounts under the Dividend Re-
investment and Stock Purchase Plan.
On October 13, 1995, the Company declared a dividend of $.125 to
be paid on December 15, 1995 to shareholders of record November 15,
1995.
NOTE 13 - CASH FLOW INFORMATION
Cash paid during the years ended September 30, 1995, 1994 and
1993 for interest and taxes are as follows:
9/30/95 9/30/94 9/30/93
Interest $1,372,596 $1,056,827 $ 889,648
Taxes 45,006 31,838 37,686
During 1995, 1994 and 1993, the Company had $753,459, $0 and $0,
respectively of dividend reinvestments which required no cash
transfers.
In 1995, equity securities available for sale is shown at fair
value pursuant to the 1995 adoption of SFAS 115. The resultant
portfolio increase of $58,740 relating to unrealized holding gains is
shown as a separate component of shareholders' equity for the year
ended September 30, 1995.
Page 44
MONMOUTH REAL ESTATE INVESTMENT CORPORATION
SCHEDULE X
SUPPLEMENTARY PROFIT AND LOSS INFORMATION
FOR THE YEARS ENDED SEPTEMBER 30,
COLUMN A COLUMN B
Charged Directly to Costs and
Expenses
Item 1995 1994 1993
1. Maintenance and Repairs $ 47,184 $ 95,717 $ 57,696
2. Depreciation and Amortization 944,153 826,322 434,426
3. Real Estate Taxes 165,454 165,454 157,586
Page 45
<TABLE>
<CAPTION>
MONMOUTH REAL ESTATE INVESTMENT CORPORATION
SCHEDULE XI
REAL ESTATE AND ACCUMULATED DEPRECIATION
SEPTEMBER 30, 1995
Column A Column B Column C Column D
________ ________ _________________ ________
Buildings, Capitaliz.
Improve. Subsequent
Descrp. Encumbr. Land & Equip. to Acquis.
<S> <C> <C> <C> <C>
________ __________ _________ ___________ _________
Industrial Bldg.
Ramsey, NJ $ -0- $ 52,639 $ 291,500 $ 832,339
Shopping Cntr.
Somerset, NJ -0- 55,182 637,097 425,298
Industrial Bldg.
Monaca, PA -0- 330,773 878,081 789,456
Industrial Bldg.
Monsey, NY -0- 119,910 908,473 773,346
Industrial Bldg.
Orangeburg, NY 2,350,032 694,720 2,977,372 -0-
Industrial Bldg.
S.Brunswick, NJ 2,445,000 1,128,000 4,087,400 -0-
Industrial Bldg.
Greensboro, NC 1,417,065 327,100 1,853,700 -0-
Industrial Bldg.
Jackson, MS 737,116 218,000 1,233,500 -0-
Industrial Bldg.
Franklin, MA 2,675,422 566,000 4,148,000 -0-
Industrial Bldg.
Witchita, KS 1,287,963 268,000 1,518,000 -0-
Industrial Bldg.
Urbandale, IA 1,274,440 310,000 1,758,000 -0-
Industrial Bldg.
Richland, MS 877,066 211,000 1,195,000 -0-
Industrial Bldg.
O'Fallon, MO 2,399,457 264,000 3,302,000 -0-
___________ __________ ___________ __________
$15,463,561 $4,545,324 $24,788,123 $2,820,439
=========== ========== =========== ==========
</TABLE>
<TABLE>
<CAPTION>
MONMOUTH REAL ESTATE INVESTMENT CORPORATION
SCHEDULE XI, CONTINUED
REAL ESTATE AND ACCUMULATED DEPRECIATION
SEPTEMBER 30, 1995
Column A Column E (1) (2) Column F
________ ______________________________ ________
Gr. Amt at Which Carried Accum.
September 30, 1995 Deprecia-
Descrp. Land Bldg & Imp Total tion
<S> <C> <C> <C> <C>
________ __________ _________ _______ __________
Industrial Bldg.
Ramsey, NJ $ 52,639 $1,123,839 $1,176,478 $ 468,592
Shopping Cntr.
Somerset, NJ 55,182 1,062,395 1,117,577 607,804
Industrial Bldg.
Monaca, PA 330,773 1,667,537 1,998,310 707,931
Industrial Bldg.
Monsey, NY 119,910 1,681,819 1,801,729 651,737
Industrial Bldg.
Orangeburg, NY 694,720 2,977,372 3,672,092 271,775
Industrial Bldg.
S.Brunswick, NJ 1,128,000 4,087,400 5,215,400 329,853
Industrial Bldg.
Greensboro, NC 327,100 1,853,700 2,180,800 144,680
Industrial Bldg.
Jackson, MS 218,000 1,233,500 1,451,500 86,481
Industrial Bldg.
Franklin, MA 566,000 4,148,000 4,714,000 159,532
Industrial Bldg.
Witchita, KS 268,000 1,518,000 1,786,000 58,382
Industrial Bldg.
Urbandale, IA 310,000 1,758,000 2,068,000 67,613
Industrial Bldg.
Richland, MS 211,000 1,195,000 1,406,000 45,960
Industrial Bldg.
O'Fallon, MO 264,000 3,302,000 3,566,000 42,202
__________ ___________ ___________ __________
$4,545,324 $27,608,562 $32,153,886 $3,642,542
========== =========== =========== ==========
</TABLE>
<TABLE>
<CAPTION>
MONMOUTH REAL ESTATE INVESTMENT CORPORATION
SCHEDULE XI, CONTINUED
REAL ESTATE AND ACCUMULATED DEPRECIATION
SEPTEMBER 30, 1995
Column A Column G Column H Column I
________ _______ ________ ________
Date of
Construc. Date Deprec.
Descrp. tion Acquired Life
<S> <C> <C> <C>
________ ________ ________ _______
Industrial Bldg.
Ramsey, NJ 1969 1969 7-40
Shopping Cntr.
Somerset, NJ 1970 1970 10-33
Industrial Bldg.
Monaca, PA 1977 1977* 5-31.5
Industrial Bldg.
Monsey, NY 1965 1980 30-31.5
Industrial Bldg.
Orangeburg,NY 1990 1993 31.5
Industrial Bldg.
S.Brunswick,NJ 1974 1993 31.5
Industrial Bldg.
Greensboro,NC 1988 1993 31.5
Industrial Bldg.
Jackson, MS 1988 1993 39
Industrial Bldg.
Franklin, MA 1969 1994 39
Industrial Bldg.
Witchita, KS 1974 1994 39
Industrial Bldg.
Urbandale, IA 1985 1994 39
Industrial Bldg.
Richland, MS 1986 1994 39
Industrial Bldg.
O'Fallon, MO 1989 1994 39
*Buildings and improvements reacquired in 1986.
</TABLE>
<TABLE>
<CAPTION>
9/30/95 9/30/94 9/30/93
_____________ ____________ ____________
<S> <C> <C> <C>
Balance - Beginning of Year $ 28,470,788 $ 18,483,260 $ 5,741,916
_____________ ____________ ____________
Additions:
Acquisitions 3,566,000 9,974,000 12,533,157
Improvements 117,098 163,115 208,187
_____________ ____________ ____________
Total Additions 3,683,098 10,137,115 12,741,344
_____________ ____________ ____________
Deductions:
Cost of Real Estate Sold -0- 149,587 -0-
____________ ____________ ____________
Balance - End of Year(1) $ 32,153,886 $ 28,470,788 $ 18,483,260
============ ============ ============
</TABLE>
MONMOUTH REAL ESTATE INVESTMENT CORPORATION
NOTES TO SCHEDULE XI
SEPTEMBER 30,
(1) Column E - Reconciliation
1995 1994 1993
Balance - Beginning of Year $28,470,788 $18,483,260 $5,741,916
___________ ___________ __________
Additions:
Ramsey, New Jersey 81,953 -0- -0-
Somerset, New Jersey 10,784 70,914 32,286
Monaca, Pennsylvania 21,361 60,778 24,848
Monsey, New York 3,000 26,907 164,418
Morris Plains, New Jersey -0- 4,516 -0-
Orangeburg, New York -0- -0- 3,672,092
South Brunswick, New Jersey -0- -0- 5,215,400
Greensboro, North Carolina -0- -0- 2,180,800
Jackson, Mississippi -0- -0- 1,451,500
Franklin, Massachusetts -0- 4,714,000 -0-
Wichita, Kansas -0- 1,786,000 -0-
Urbandale, Iowa -0- 2,068,000 -0-
Richland, Mississippi -0- 1,406,000 -0-
O'Fallon, Missouri 3,566,000 -0- -0-
___________ ___________ ___________
Total Additions 3,683,098 10,137,115 12,741,344
___________ ___________ ___________
Retirement/Sales
Morris Plains, NJ -0- (149,587) -0-
___________ ___________ ___________
$32,153,886 $28,470,788 $18,483,260
=========== =========== ===========
(2) The aggregate cost for Federal tax purposes approximates
historical cost.
Page 47
SIGNATURES
Pursuant to the requirements of Section 13 of 15(d) of the Securities
Exchange Act of 1934, the Registrant has duly caused this report to be
signed on its behalf by the undersigned, thereunto duly authorized.
MONMOUTH REAL ESTATE INVESTMENT CORPORATION
Date: Dec. 12, 1995 By: S/Eugene W. Landy
Eugene W. Landy, President
Pursuant to the requirements of the Securities Exchange Act of 1934,
this report has been signed by the following persons on behalf of the
Registrant and in the capacities and on the dates indicated.
Date: Dec. 12, 1995 By: S/Eugene W. Landy
Eugene W. Landy, President and Director
Date: Dec. 12, 1995 By: S/Ernest V. Bencivenga
Ernest V. Bencivenga, Treasurer and
Director
Date: Dec. 12, 1995 By: S/Anna T. Chew
Anna T. Chew, Controller and Director
Date: Dec. 12, 1995 By: S/Daniel D. Cronheim
Daniel D. Cronheim, Director
Date: Dec. 12, 1995 By: S/Boniface DeBlasio
Boniface DeBlasio, Director
Date: Dec. 12, 1995 By: S/Ara K. Hovnanian
Ara K. Hovnanian, Director
Date: Dec. 12, 1995 By: S/Charles P. Kaempffer
Charles P. Kaempffer, Director
Date: Dec. 12, 1995 By: S/Samuel A. Landy
Samuel A. Landy, Director
Date: Dec. 12, 1995 By: S/W. Dunham Morey
W. Dunham Morey, Director
Date: Dec. 12, 1995 By: S/Robert G. Sampson
Robert G. Sampson, Director
Page 48
<TABLE> <S> <C>
<ARTICLE> 5
<LEGEND>
THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM THE
FINANCIAL STATEMENTS OF MONMOUTH REAL ESTATE INVESTMENT CORPORATION AS OF
AND FOR THE YEAR ENDED SEPTEMBER 30, 1995 AND IS QUALIFIED IN ITS ENTIRETY
BY REFERENCE TO SUCH FINANCIAL STATEMENTS.
</LEGEND>
<S> <C>
<PERIOD-TYPE> YEAR
<FISCAL-YEAR-END> SEP-30-1995
<PERIOD-END> SEP-30-1995
<CASH> 144,019
<SECURITIES> 273,038
<RECEIVABLES> 581,247
<ALLOWANCES> 0
<INVENTORY> 0
<CURRENT-ASSETS> 1,113,119
<PP&E> 32,168,854
<DEPRECIATION> 3,657,061
<TOTAL-ASSETS> 30,289,860
<CURRENT-LIABILITIES> 370,194
<BONDS> 15,463,561
<COMMON> 33,920
0
0
<OTHER-SE> 14,213,947
<TOTAL-LIABILITY-AND-EQUITY> 30,289,860
<SALES> 0
<TOTAL-REVENUES> 4,279,625
<CGS> 0
<TOTAL-COSTS> 565,271
<OTHER-EXPENSES> 1,355,825
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 1,372,596
<INCOME-PRETAX> 985,933
<INCOME-TAX> 0
<INCOME-CONTINUING> 985,933
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 985,933
<EPS-PRIMARY> .31
<EPS-DILUTED> .31
</TABLE>
