Monmouth Real Estate Investment Corp. (NYSE:MNR) Q1 2019 Earnings Conference Call Transcript

Feb 08, 2019 • 10:00 am ET


Monmouth Real Estate Investment Corp. (NYSE:MNR) Q1 2019 Earnings Conference Call Transcript


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Good morning, and welcome to Monmouth Real Estate Investment Corporation's First Quarter 2019 Earnings Conference Call. All participants will be in listen-only mode. (Operator Instructions) After today's presentation, there will be an opportunity to ask questions. (Operator Instructions) Please note, this event is being recorded.

It is now my pleasure to introduce your host, Ms. Susan Jordan, Vice President of Investor Relations. Thank you, Ms. Jordan. You may begin.

Susan Jordan

Thank you very much, operator. In addition to the 10-Q that we filed with the SEC yesterday, we have filed an unaudited first quarter supplemental information presentation. This supplemental information presentation along with our 10-Q are available on the Company's website at

I would like to remind everyone that certain statements made during this conference call, which are not historical facts, may be deemed forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. The forward-looking statements that we make on this call are based on our current expectations and involve various risks and uncertainties. Although the Company believes the expectations reflected in any forward-looking statements are based on reasonable assumptions, the Company can provide no assurance that its expectations will be achieved.

The risks and uncertainties that could cause actual results to differ materially from expectations are detailed in the Company's first quarter 2019 earnings release and filings with the Securities and Exchange Commission. The Company disclaims any obligation to update its forward-looking statements.

Having said that, I'd like to introduce management with us today, Eugene Landy, Chairman; Michael Landy, President and Chief Executive Officer; Kevin Miller, Chief Financial Officer; and Richard Molke, Vice President of Asset Management.

It is now my pleasure to turn the call over to Monmouth's President and Chief Executive Officer, Michael Landy.

Michael P. Landy

Thanks, Susan. Good morning, everyone, and thank you for joining us. We are pleased to report our results for the first quarter ended December 31, 2018. Following 14.5% AFFO per share growth in fiscal 2018, our first quarter fiscal 2019 AFFO per share has increased 4.5% from both the prior year quarter as well as sequentially. This 4.5% increase was achieved despite the short-term dilutive effect of our issuance of 9.2 million common shares in October. This offering generated net proceeds of approximately $132.3 million and represented our first common stock offering since 2014.

Our core FFO of $0.24 per share and our AFFO of $0.23 per share represents our highest quarterly earnings ever. As anticipated, we put some of the proceeds to work during the quarter with the acquisition of two brand-new Class A built-to-suit properties. These acquisitions were purchased for an aggregate cost of $113.1 million and comprised 474,000 total square feet.

One property located in Trenton, New Jersey is leased to FedEx Ground for 15 years through June 2032. This 347,000 square foot distribution center is situated on 62 acres and a century located between New York City and Philadelphia. This asset is in very close proximity to the New Jersey Turnpike and is in one