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 December 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
December 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 re-
quired 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 ac-
countant. Yes ___ No X
The number of shares or other units outstanding of each of the
issuer's classes of securities as of December 31, 1995 was
3,502,642.
Page 1
MONMOUTH REAL ESTATE INVESTMENT CORPORATION
FOR THE QUARTER ENDED DECEMBER 31, 1995
C O N T E N T S
Page No.
Part I - Financial Information
Item 1 - Financial Statements (Unaudited):
Balance Sheets 3
Statements of Income 4
Statements of Cash Flows 5
Notes to Financial Statements 6
Item 2 - Management's Discussion and Analysis of
Financial Condition and Results of
Operations 7-8
Part II- Other Information 9
Signatures 10
Page 2
<TABLE>
<CAPTION>
MONMOUTH REAL ESTATE INVESTMENT CORPORATION
BALANCE SHEETS
AS OF DECEMBER 31, 1995 AND SEPTEMBER 30, 1995
<S> <C> <C>
12/31/95 9/30/95
ASSETS
Real Estate Investments:
Land $ 4,545,324 $ 4,545,324
Buildings, Improvements and
Equipment, Net of Accumulated
Depreciation of $3,853,391
and $3,657,061, respectively 23,774,864 23,966,469
Mortgage Loans Receivable 285,712 293,997
___________ ___________
Total Real Estate Investments 28,605,900 28,805,790
Cash and Cash Equivalents 374,420 144,019
Equity Securities Available for Sale at
Fair Value(Cost $104,335 and
$214,298 respectively) 106,980 273,038
Interest and Other Receivables 554,044 581,247
Prepaid Expenses 133,468 114,815
Lease Costs - Net of Accumulated
Amortization 61,822 59,742
Other Assets 274,648 311,209
___________ ___________
TOTAL ASSETS $30,111,282 $30,289,860
=========== ===========
LIABILITIES AND SHAREHOLDERS' EQUITY
Liabilities:
Mortgage Notes Payable $14,733,618 $15,463,561
Deferred Gain - Installment Sale 202,238 208,238
Other Liabilities 427,968 370,194
___________ ___________
Total Liabilities 15,363,824 16,041,993
___________ ___________
Shareholders' Equity:
Common Stock-Class A-$.01 Par Value,
8,000,000 Shares Authorized,
3,502,642 and 3,392,045 Shares
Issued and Outstanding, respectively 35,026 33,920
Common Stock-Class B-$.01 Par Value,
100,000 Shares Authorized, No shares
Issued or Outstanding -0- -0-
Additional Paid-in Capital 14,783,545 14,155,207
Unrealized Holding Gain on
Equity Securities Available
for Sale 2,645 58,740
Undistributed Income (73,758) -0-
___________ ___________
Total Shareholders' Equity 14,747,458 14,247,867
___________ ___________
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY $30,111,282 $30,289,860
=========== ===========
Unaudited
See Accompanying Notes to Financial Statements
Page 3
</TABLE>
<TABLE>
<CAPTION>
MONMOUTH REAL ESTATE INVESTMENT CORPORATION
STATEMENTS OF INCOME
FOR THE THREE MONTHS ENDED DECEMBER 31, 1995 AND 1994
<S> <C> <C>
1995 1994
INCOME:
Rental and Occupancy
Charges $1,054,614 $1,077,200
Interest and Other Income 77,145 21,430
__________ __________
TOTAL INCOME 1,131,759 1,098,630
__________ __________
EXPENSES:
Interest Expense 316,384 350,438
Real Estate Taxes 47,684 58,273
Operating Expenses 81,512 80,690
General and Administrative
Expenses 138,265 119,570
Depreciation 196,329 175,878
__________ __________
TOTAL EXPENSES 780,174 784,849
__________ __________
INCOME BEFORE GAINS 351,585 313,781
Gain on Sales of Assets 6,000 4,800
__________ __________
NET INCOME $ 357,585 $ 318,581
========== ==========
PER SHARE INFORMATION
Weighted Average Shares
Outstanding 3,443,273 3,090,327
========== ==========
Net Income Per Share $ .10 $ .10
========== ==========
Unaudited
See Notes to Financial Statements
Page 4
</TABLE>
<TABLE>
<CAPTION>
MONMOUTH REAL ESTATE INVESTMENT CORPORATION
STATEMENTS OF CASH FLOWS
FOR THE THREE MONTHS ENDED DECEMBER 31, 1995 AND 1994
<S> <C> <C>
1995 1994
CASH FLOWS FROM OPERATING ACTIVITIES
Net Income $ 357,585 $ 318,581
Noncash Items Included in Net Income:
Depreciation 196,329 175,878
Amortization 26,653 30,242
Gain on Sale of Investments (72,933) (4,800)
Changes In:
Interest and Other Receivables 27,203 (47,621)
Prepaid Expenses (18,653) 44,493
Other Assets and Lease Costs 7,828 534,527
Other Liabilities 57,774 165,834
__________ __________
NET CASH PROVIDED FROM OPERATING
ACTIVITIES 581,786 1,217,134
__________ ___________
CASH FLOWS FROM INVESTING ACTIVITIES
Collections on Installment Sales 8,285 4,578
Collections on Loans -0- -0-
Additions to Land, Buildings,
Improvements and Equipment (4,724) (3,629,287)
Purchase of Equity Securities
Available for Sale (37,754) -0-
Proceeds from Sale of Equity
Securities Available for Sale 214,650 -0-
__________ ___________
NET CASH PROVIDED FROM (USED IN)
INVESTING ACTIVITIES 180,457 (3,624,709)
__________ ___________
CASH FLOWS FROM FINANCING ACTIVITIES
Proceeds from Mortgages -0- 2,500,000
Principal Payments of Mortgages (729,943) (1,207,807)
Proceeds from Issuance of Class A
Common Stock 440,171 335,273
Dividends Paid (242,070) (385,724)
___________ ___________
NET CASH PROVIDED FROM (USED IN)
FINANCING ACTIVITIES (531,842) 1,241,742
___________ ___________
Net Increase (Decrease)in Cash
and Cash Equivalents 230,401 (1,165,833)
Cash and Cash Equivalents at Beginning
of Period 144,019 1,454,240
___________ ___________
Cash and Cash Equivalents at End
of Period $ 374,420 $ 288,407
=========== ===========
Unaudited
See Accompanying Notes to Financial Statements
Page 5
</TABLE>
MONMOUTH REAL ESTATE INVESTMENT CORPORATION
NOTES TO FINANCIAL STATEMENTS
NOTE 1 - ACCOUNTING POLICY
The interim financial statements furnished herein reflect all adjust-
ments which were, in the opinion of management, necessary to present
fairly the financial position, results of operations and cash flows at
December 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,
1995 have been omitted.
NOTE 2 - EQUITY SECURITIES AVAILABLE FOR SALE
During the quarter ended December 31, 1995, a security held by the
Company was liquidated. The Company received $214,650 as a liquidating
dividend, resulting in a realized gain of $66,933. This gain has been
included in Other Income in the financial statements.
NOTE 3 - DIVIDEND REINVESTMENT AND STOCK PURCHASE PLAN
On December 15, 1995, the Company paid $431,343 as a dividend of $.125
per share to shareholders of record November 15, 1995. For the quarter
ended December 31, 1995, the Company received $629,444 from the
Dividend Reinvestment and Stock Purchase Plan (DRIP). There were
110,597 new shares issued resulting in 3,502,642 shares outstanding.
NOTE 4 - SUPPLEMENTAL CASH FLOW INFORMATION
Cash paid during the quarter ended December 31, 1995 and 1994 for in-
terest and taxes are as follows:
1995 1994
Interest $ 316,384 $ 350,438
Taxes (1,465) 18,800
During the quarter ended December 31, 1995 and 1994, the Company had
dividend reinvestments of $189,273 and $184,594, respectively, which
required no cash transfers.
Page 6
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 operating activities of
$581,786 for the current three months as compared to $1,217,134 for the
prior period. The Company raised $ 629,444 from the issuance of
shares of common stock through a Dividend Reinvestment and Stock Pur-
chase Plan (DRIP). Current cash dividends paid amounted to $431,343.
Equity Securities Available for Sale decreased by $166,058 primarily as
the result of the liquidation of one of the Company's security
holdings.
Mortgage notes payable decreased by $729,943 during the three months
ended December 31, 1995. This decrease was the result of principal
repayments.
MATERIAL CHANGES IN RESULTS OF OPERATIONS
Rental and occupany charges remained relatively stable for the three
months ended December 31, 1995 as compared to the prior period.
Interest and other income increased by $55,715 for the three months
ended December 31, 1995 as compared to the three months ended December
31, 1994. This is primarily as a result of the gain on liquidation of
equity securities.
Interest expense decreased by $34,054 for the three months ended
December 31, 1995 as compared to the three months ended December 31,
1994. This was the result of principal repayments.
Depreciation expense increased by $20,451 for the three months ended
December 31, 1995 as compared to the three months ended December 31,
1994 due to the real estate acquisition in October, 1994.
General and administrative expenses increased by $18,685 for the three
months ended December 31, 1995 as compared to the three months ended
December 31, 1994 due primarily to an increase in professional fees.
LIQUIDITY AND CAPITAL RESOURCES
Net cash provided from operating activities decreased during the three
months ended December 31, 1995 to $581,786, as compared to $1,217,134
generated during the three months ended December 31, 1994. This was
primarily the result of the decrease in Other Assets during the three
months ended December 31, 1994. Other Assets at September 30, 1994
included deposits of $594,693 for the acquisition of a warehouse
facility. The acquisition was completed in October, 1994. The Company
has been raising capital through the DRIP and investing in net leased
industrial properties.
Page 7
The Company owns thirteen properties of which nine carried mortgage
loans totaling $14,733,618 at December 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 ad-
equately meet its obligations over the next several years.
Page 8
<PAGE>
PART II: OTHER INFORMATION
MONMOUTH REAL ESTATE INVESTMENT CORPORATION
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 HOLDERS - 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
Page 9
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: February 9, 1995 By: S/Eugene W. Landy
_________________________________________
EUGENE W. LANDY,
President
Date: February 9, 1995 By: S/Anna T. Chew
_________________________________________
ANNA T. CHEW
Controller
Page 10
WARNING: THE EDGAR SYSTEM ENCOUNTERED ERROR(S) WHILE PROCESSING THIS SCHEDULE.
<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 QUARTER ENDED DECEMBER 31, 1995 AND IS QUALIFIED IN ITS
ENTIRETY BY REFERENCE TO SUCH FINANCIAL STATEMENTS.
</LEGEND>
<S> <C>
<PERIOD-TYPE> QTR-1
<FISCAL-YEAR-END> SEP-30-1996
<PERIOD-END> DEC-31-1995
<CASH> 374,420
<SECURITIES> 106,980
<RECEIVABLES> 554,044
<ALLOWANCES> 0
<INVENTORY> 0
<CURRENT-ASSETS> 1,168,912
<PP&E> 32,173,579
<DEPRECIATION> 3,853,391
<TOTAL-ASSETS> 30,111,282
<CURRENT-LIABILITIES> 427,968
<BONDS> 14,733,618
<COMMON> 35,026
0
0
<OTHER-SE> 14,712,432
<TOTAL-LIABILITY-AND-EQUITY> 30,111,282
<SALES> 0
<TOTAL-REVENUES> 1,137,759
<CGS> 0
<TOTAL-COSTS> 129,196
<OTHER-EXPENSES> 334,594
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 316,384
<INCOME-PRETAX> 357,585
<INCOME-TAX> 0
<INCOME-CONTINUING> 357,585
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 357,585
<EPS-PRIMARY> .10
<EPS-DILUTED> .10
</TABLE>
