Form 10-Q
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
(Mark One)
( X ) QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15 (d) OF
THE SECURITIES AND EXCHANGE ACT OF 1934
For the quarterly period ended March 31, 1995
OR
( ) TRANSITION REPORT PURSUANT TO SECTION 13 OR 15 (d)
OF THE SECURITIES AND EXCHANGE ACT OF 1934
For the transition period from ____________ to____________
For the Quarter ended Commission File
March 31, 1995 No. 2-29442
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) Identification No.)
125 Wyckoff Road, Eatontown, New Jersey 07724
(Address of Principal Executive Office) (Zip Code)
Registrant's telephone number, including area code:
(908)542-4927
__________________________________________________________
(Former name, former address and former fiscal year if
changed since last report.)
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 and 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 mark whether the financial statements
required by instruction H have been reviewed by an
independent public accountant. Yes ___ No X
Indicate the number of shares or other units outstanding of
each of the issuer's classes of securities. 3,221,975
<TABLE>
<CAPTION>
MONMOUTH REAL ESTATE INVESTMENT CORPORATION
BALANCE SHEETS
AS OF MARCH 31, 1995 AND SEPTEMBER 30, 1994
3/31/95 9/30/94
ASSETS
<S> <C> <C>
Real Estate Investments:
Land $ 4,545,324 $ 4,281,324
Buildings, Improvements and
Equipment, Net of Accumulated
Depreciation of $3,236,950
and $2,873,357, respectively 24,361,354 21,331,075
Mortgage Loans Receivable 334,746 348,729
___________ ___________
Total Real Estate Investments 29,241,424 25,961,128
Cash and Cash Equivalents 149,904 1,454,240
Equity Securities Available for Sale
at Fair Value(Cost $214,298) 242,325 214,298
Interest and Other Receivable 507,171 438,360
Prepaid Expenses 154,291 114,606
Lease Costs - Net of Accumulated
Amortization 103,105 90,634
Other Assets 355,776 960,862
___________ ___________
TOTAL ASSETS $30,753,996 $29,234,128
=========== ===========
LIABILITIES AND SHAREHOLDERS' EQUITY
Liabilities:
Mortgage Notes Payable $16,443,191 $15,458,310
Deferred Gain - Installment Sale 237,404 247,004
Other Liabilities 320,377 371,475
___________ __________
Total Liabilities 17,000,972 16,076,789
___________ __________
Shareholders' Equity
Common Stock-Class A-$.01 Par Value,
4,000,000 Shares Authorized,
3,221,975 and 3,066,002 Shares
Issued and Outstanding,
respectively 32,220 30,660
Common Stock-Class B-$.01 Par Value,
100,000 Shares Authorized, No shares
Issued or Outstanding -0- -0-
Additional Paid-in Capital 13,573,011 12,796,784
Unrealized Investment Gain 28,027 -0-
Undistributed Income 119,766 329,895
___________ ___________
Total Shareholders' Equity 13,753,024 13,157,339
___________ ___________
TOTAL LIABILITIES AND
SHAREHOLDERS' EQUITY $30,753,996 $29,234,128
========== ===========
Unaudited
See Accompanying Notes to Financial Statements
</TABLE>
<TABLE>
<CAPTION>
MONMOUTH REAL ESTATE INVESTMENT CORPORATION
INCOME STATEMENT
FOR THE SIX MONTHS ENDED MARCH 31, 1995 AND 1994
3 Months 6 Months 3 Months 6 Months
Ended Ended Ended Ended
3/31/95 3/31/95 3/31/94 3/31/94
INCOME:
<S> <C> <C> <C> <C>
Rental Income/Tenant
Reimbursements $1,030,233 $2,107,433 $882,424 $1,705,984
Interest and Other Income 14,764 36,194 62,914 148,958
__________ __________ ________ __________
TOTAL INCOME 1,044,997 2,143,627 945,338 1,854,942
__________ __________ ________ __________
EXPENSES:
Interest Expense 350,475 700,913 263,080 508,175
Real Estate Taxes 28,609 86,882 39,973 85,058
Operating Expenses 85,191 165,881 132,183 235,571
General and Administrative
Expenses 144,107 263,677 128,065 229,774
Depreciation 187,715 363,593 156,519 300,840
__________ __________ ________ __________
TOTAL EXPENSES 796,097 1,580,946 719,820 1,359,418
__________ __________ ________ __________
INCOME BEFORE GAINS 248,900 562,681 225,518 495,524
Gain on Sales of Assets 4,800 9,600 3,900 7,800
__________ __________ ________ __________
NET INCOME $ 253,700 $ 572,281 $229,418 $ 503,324
========== ========== ======== ==========
PER SHARE INFORMATION:
Weighted Average Shares
Outstanding 3,171,435 3,130,363 2,853,316 2,792,295
========== ========== ========= ==========
Net Income Per Share $ 0.08 $ 0.18 $ .08 $ .18
========== ========== ========= ==========
Unaudited
See Notes to Financial Statements
</TABLE>
<TABLE>
<CAPTION>
MONMOUTH REAL ESTATE INVESTMENT CORPORATION
STATEMENTS OF CASH FLOWS
FOR THE SIX MONTHS ENDED MARCH 31, 1995 AND 1994
1995 1994
<S> <C> <C>
CASH FLOWS FROM OPERATING ACTIVITIES
Net Income $ 572,281 $ 503,324
Noncash Items Included in Net Income:
Depreciation 363,593 300,840
Amortization 60,741 54,066
Gain on Sale of Investments (9,600) (7,800)
Changes In:
Interest and Other Receivables (68,811) (172,263)
Prepaid Expenses (39,685) 10,067
Other Assets 531,874 62,669
Other Liabilities (51,098) 65,899
__________ __________
NET CASH PROVIDED BY OPERATING
ACTIVITIES 1,359,295 816,802
__________ __________
CASH FLOWS FROM INVESTING ACTIVITIES
Collections on Installment Sales 13,983 12,639
Collections on Loans -0- 3,571,321
Additions to Land, Buildings,
Improvements and Equipment (3,657,872)(10,104,392)
__________ __________
NET CASH USED BY INVESTING
ACTIVITIES (3,643,889) (6,520,432)
__________ __________
CASH FLOWS FROM FINANCING ACTIVITIES
Proceeds from Mortgages 2,500,000 13,135,014
Principal Payments of Mortgages (1,515,119) (8,635,584)
Proceeds from Issuance of Class A
Common Stock 777,787 1,386,413
Dividends Paid (782,410) (693,268)
___________ __________
NET CASH PROVIDED BY FINANCING
ACTIVITIES 980,258 5,192,575
___________ __________
NET DECREASE IN CASH AND
CASH EQUIVALENTS (1,304,336) (511,055)
CASH AND CASH EQUIVALENTS -
BEGINNING OF PERIOD 1,454,240 1,066,006
___________ __________
CASH AND CASH EQUIVALENTS -
END OF PERIOD $ 149,904 $ 554,951
=========== ==========
Unaudited
See Accompanying Notes to Financial Statements
</TABLE>
MONMOUTH REAL ESTATE INVESTMENT CORPORATION
NOTES TO FINANCIAL STATEMENTS
NOTE 1 - ACCOUNTING POLICY
The interim financial statements furnished herein reflect
all adjustments which were, in the opinion of management,
necessary to present fairly the financial position, results
of operations and cash flows at March 31, 1995 and for all
periods presented. All adjustments made in the interim
period were of a normal recurring nature. Certain footnote
disclosures which would substantially duplicate the
disclosures contained in the audited financial statements
and notes thereto included in the Annual Report of Monmouth
Real Estate Investment Corporation (the Company) for the
year ended September 30, 1994 have been omitted.
NOTE 2 - ACQUISITIONS
On October 13, 1994, the Company purchased a 102,135 square
foot warehouse facility in O'Fallon, Missouri from
Commercial Realty Investors of O'Fallon, L.P., an unrelated
entity. This warehouse facility is 100% net leased to PPG
Industries, Ltd.(PPG). The purchase price was $3,525,000.
The Company obtained a $2,500,000 mortgage on this property
with Midwestern United Life Insurance Company (Midwestern),
and paid $1,000,000 in cash which was derived from its line
of credit with NatWest NJ Bank.
NOTE 3 - INVESTMENTS
During fiscal 1995, the Company adopted Statement of
Financial Accounting Standard No. 115. Under this statement
the Company has classified its investments as "Available-
for-sale" which is reported at fair value with unrealized
gains and losses reported as a separate component of
shareholders' equity.
NOTE 4 - MORTGAGES PAYABLE
On October 13, 1994, the Company obtained a $2,500,000
mortgage with Midwestern for the acquisition of the
O'Fallon, Missouri warehouse facility. 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 December 1, 2007. Midwestern has the right to
accelerate the maturity to December 1, 2005.
NOTE 5 - DIVIDEND REINVESTMENT AND STOCK PURCHASE PLAN
On March 15, 1995, the Company paid $396,686 as a dividend
of $.125 per share to shareholders of record. The total
dividends paid for the six months ended March 31, 1995
amounted to $782,410.
For the six months ended March 31, 1995, the Company
received $777,787 from the Dividend Reinvestment and Stock
Purchase Plan (DRIP). There were 155,973 new shares issued
resulting in 3,221,975 shares outstanding.
NOTE 6 - SUPPLEMENTAL CASH FLOW INFORMATION
Cash paid during the six months ended March 31, 1995 and
1994 for interest and taxes are as follows:
3/31/95 3/31/94
Interest $ 700,913 $ 508,175
Taxes 22,002 21,101
MONMOUTH REAL ESTATE INVESTMENT CORPORATION
MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL
CONDITION AND RESULTS OF OPERATIONS
MATERIAL CHANGES IN FINANCIAL CONDITION
The Company generated net cash provided from operations
of $1,348,364 for the current six months as compared to
$816,802 for the prior period. The Company raised $777,787
from the issuance of shares of common stock through a
Dividend Reinvestment and Stock Purchase Plan (DRIP).
Current cash dividends paid amounted to $782,410.
Cash decreased by $1,315,267 primarily as a result of
the recent acquisition of the industrial warehouse facility
in O'Fallon, Missouri.
Land, Buildings, Improvements and Equipment increased
by $3,657,872 as a result of the acquisition of the
warehouse facility in O'Fallon, Missouri.
Other Assets, which included Deposits of $594,693 at
September 30, 1994, decreased by $520,943 primarily due to
the completion of the acquisition of the warehouse facility
in O'Fallon, Missouri.
Mortgage notes payable increased by a net of $984,881
during the six month period ended March 31, 1995. This
increase resulted from $2,500,000 of additional mortgage
borrowings for the above mentioned acquisition offset by
repayments of $1,515,119.
MATERIAL CHANGES IN RESULTS OF OPERATIONS
Rental income and tenant reimbursements increased for
the quarter ended March 31, 1995 to $1,030,233 as compared
to $882,424 for the quarter ended March 31, 1994. Rental
income and tenant reimbursements increased for the six
months ended March 31, 1995 to $2,107,433 as compared to
$1,705,984 for the six months ended March 31, 1994. This
is due primarily to acquisitions made during fiscal 1994 and
1995.
Interest and other income decreased by $48,150 and
$112,764 for the three and six months respectively ended
March 31, 1995 as compared to the three and six months ended
March 31, 1994. This is primarily as a result of principal
repayments on mortgage loans receivable. The Company has
replaced mortgage investments with equity investments in
net leased industrial properties.
Interest expense increased by $87,395 for the three
months ended March 31, 1995 as compared to the three months
ended March 31, 1994. Interest expense increased by $192,738
from $508,175 for the six months ended March 31, 1994 to
$700,913 for the six months ended March 31, 1995. These
increases are primarily the result of new borrowings for
acquisitions.
Operating expenses decreased by $80,690 for the
three months ended March 31, 1995 as compared to the three
months ended March 31, 1994. Operating expenses decreased
from $235,571 for the six months ended March 31, 1994 to
$165,881 for the six months ended March 31, 1995. This is
primarily as a result of a reduction in professional fees.
Depreciation expense increased by $31,196 and $62,753
for the three and six months respectively ended March 31,
1995 as compared to the three and six months ended March
31, 1994 due to new real estate acquisitions.
General and administrative expenses increased by
$16,042 and $33,903 for the three and six months
respectively ended March 31, 1995 as compared to the
three and six months ended March 31, 1994 due primarily to
amortization of loan costs associated with the line of
credit.
LIQUIDITY AND CAPITAL RESOURCES
Net cash provided by operating activities increased
during the six months ended March 31 1995 to $1,348,364,
as compared to $816,802 generated during the six months
ended March 31, 1994. The Company has been raising capital
through the DRIP and investing in net leased industrial
properties.
The Company owns thirteen properties of which nine
carried mortgage loans totaling $16,443,191 at March 31,
1995. The Company believes that funds generated from
operations, the Dividend Reinvestment and Stock Purchase
Plan, together with the ability to finance and refinance
its properties and net receivables will provide sufficient
funds to adequately meet its obligations over the next
several years.
MONMOUTH REAL ESTATE INVESTMENT CORPORATION
PART II: OTHER INFORMATION
ITEM 1: LEGAL PROCEEDINGS - None
ITEM 2 CHANGES IN SECURITIES - None
ITEM 3: DEFAULTS UPON SENIOR SECURITIES - None
ITEM 4: SUBMISSION OF MATTERS TO A VOTE OF SECURITY
HOLDER-None
ITEM 5: OTHER INFORMATION - None
ITEM 6: EXHIBITS AND REPORTS ON FORM 8-K
(a) EXHIBITS - None
(b) REPORTS ON FORM 8-K - None
SIGNATURES
Pursuant to the requirements 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: May 12, 1995 By: EUGENE W. LANDY, President
(Signature)
Date: May 12, 1995 By: ANNA T. Chew, Controller
(Signature)
<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 PERIOD ENDED MARCH 31, 1995 AND IS QUALIFIED IN ITS ENTIRETY BY
REFERENCE TO SUCH FINANCIAL STATEMENTS.
</LEGEND>
<S> <C>
<PERIOD-TYPE> 6-MOS
<FISCAL-YEAR-END> SEP-30-1995
<PERIOD-END> MAR-31-1995
<CASH> 149,904
<SECURITIES> 242,325
<RECEIVABLES> 507,171
<ALLOWANCES> 0
<INVENTORY> 0
<CURRENT-ASSETS> 1,053,691
<PP&E> 32,478,374
<DEPRECIATION> 3,236,950
<TOTAL-ASSETS> 30,753,996
<CURRENT-LIABILITIES> 320,377
<BONDS> 16,443,191
<COMMON> 32,220
0
0
<OTHER-SE> 13,720,804
<TOTAL-LIABILITY-AND-EQUITY> 30,753,996
<SALES> 0
<TOTAL-REVENUES> 2,153,227
<CGS> 0
<TOTAL-COSTS> 252,763
<OTHER-EXPENSES> 627,270
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 700,913
<INCOME-PRETAX> 572,281
<INCOME-TAX> 0
<INCOME-CONTINUING> 572,281
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 572,281
<EPS-PRIMARY> .18
<EPS-DILUTED> .18
</TABLE>
