 HOLMDEL, NJ, Aug. 04, 2020 GLOBE NEWSWIRE -- Monmouth Real Estate Investment Corporation NYSE:MNR reported Net Income Attributable to Common Shareholders of 26.9 million or 0.27 per diluted share for the three months ended June 30, 2020 as compared to Net Loss Attributable to Common Shareholders of 3.1 million or 0.03 per diluted share for the three months ended June 30, 2019, representing an increase of 30.0 million or 0.30 per diluted share. During the three months ended June 30, 2020, we recognized a 19.6 million unrealized holding gain on securities or 0.20 per diluted share as compared to an 11.6 million unrealized holding loss on securities or 0.12 per diluted share for the three months ended June 30, 2019. Funds from Operations FFO, which excludes unrealized and realized gains or losses from our securities portfolio, for the three months ended June 30, 2020 were 19.7 million or 0.20 per diluted share versus 19.9 million or 0.21 per diluted share for the three months ended June 30, 2019, representing a decrease of 0.01 in FFO per diluted share. Adjusted Funds from Operations AFFO, which also excludes unrealized and realized gains or losses from our securities portfolio, for the three months ended June 30, 2020 were 19.5 million or 0.20 per diluted share versus 19.4 million or 0.21 per diluted share for the three months ended June 30, 2019, representing a 0.01 decrease in AFFO per diluted share. Sequentially, our FFO of 0.20 per diluted share for the third quarter of fiscal 2020 is 0.01 lower than our FFO of 0.21 per diluted share for the second quarter of fiscal 2020 and our AFFO of 0.20 per diluted share for the third quarter of fiscal 2020 is consistent with our AFFO of 0.20 per diluted share for the second quarter of fiscal 2020. The year over year 0.01 decline in FFO and AFFO for the quarter is primarily attributable to a 1.9 million increase in Preferred Dividend expense as a result of an increase in preferred shares outstanding, as well as a 1.3 million decrease in dividend income, partially offset by a 2.5 million increase in Net Operating Income NOI. Portfolio Occupancy and Tenant Rent Collections During The COVID-19 PandemicOur portfolio occupancy remained nearly full during the quarter at 99.4 which represents a 50 basis point increase over the prior year period and is consistent with the prior quarter. Our rent collections throughout the COVID-19 Pandemic have been as follows: For the month of March were 100.0 For the month of April were 99.6 For the month of May were 97.9 For the month of June were 99.4 For the month of July were 99.6 For the month of August, we expect total rent collections to come in at 99.6 While the future effects of the evolving impact of the COVID-19 pandemic are still uncertain, at this time we believe that the fallout will not have a material adverse effect on our financial condition. To date, Monmouth has received very limited requests for rent deferment. We have agreed to defer 438,000 which represents a 31 basis point impact on our annual base rent. Approximately 75 of this deferred amount is due to be paid by the end of the calendar year. Our weighted average lease term at quarter end is 7.2 years as compared to 7.4 years at the end of the prior quarter.A summary of significant financial information for the three and nine months ended June 30, 2020 and 2019 in thousands, except per share amounts is as follows: Three Months Ended June 30, 2020 2019 Rental Revenue 35,427 33,127 Reimbursement Revenue 6,348 5,421 Net Operating Income NOI 1 35,208 32,731 Total Expenses 21,296 19,722 Dividend Income 2,344 3,686 Unrealized Holding Gains Losses Arising During the Periods 19,610 11,609 Net Income 33,458 1,628 Net Income Loss Attributable to Common Shareholders 26,851 3,121 Net Income Loss Attributable to Common Shareholders Per Diluted Common Share 0.27 0.03 FFO 1 19,740 19,899 FFO per Diluted Common Share 1 0.20 0.21 AFFO 1 19,488 19,388 AFFO per Diluted Common Share 1 0.20 0.21 Dividends Declared per Common Share 0.17 0.17 Weighted Avg. Diluted Common Shares Outstanding 97,962 94,493 Nine Months Ended June 30, 2020 2019 Rental Revenue 105,410 98,678 Reimbursement Revenue 19,772 16,473 Net Operating Income NOI 1 104,719 97,595 Total Expenses 65,065 58,187 Dividend Income 8,987 11,569 Unrealized Holding Gains Losses Arising During the Periods 67,100 38,668 Net Income Loss 25,231 1,986 Net Income Loss Attributable to Common Shareholders 44,700 11,664 Net Income Loss Attributable to Common Shareholders Per Diluted Common Share 0.46 0.13 FFO 1 59,259 60,917 FFO per Diluted Common Share 1 0.61 0.66 AFFO 1 58,771 59,583 AFFO per Diluted Common Share 1 0.60 0.64 Dividends Declared per Common Share 0.51 0.51 Weighted Avg. Diluted Common Shares Outstanding 97,626 92,719 A summary of significant balance sheet information as of June 30, 2020 and September 30, 2019 in thousands is as follows: June 30, 2020 September 30, 2019 Real Estate Investments 1,743,115 1,616,934 Securities Available for Sale at Fair Value 118,877 185,250 Total Assets 1,931,425 1,871,948 Fixed Rate Mortgage Notes Payable, net of Unamortized Debt Issuance Costs 804,342 744,928 Loans Payable 80,000 95,000 6.125 Series C Cumulative Redeemable Preferred Stock 433,850 347,678 Total Shareholders Equity 1,023,785 1,011,043 Highlights from Third Quarter Results Increased Gross Revenue by 4 over the prior year period to 44.1 million Increased Net Operating Income by 8 over the prior year period to 35.2 million Maintained a conservative AFFO dividend payout ratio of 85 Increased our Gross Leasable Area GLA by 7, or 1.6 million square feet over the prior year period to 23.4 million square feet Entered into commitments to acquire four new build-to-suit properties containing 1.5 million total square feet for a total cost of 218.7 million all leased to Investment Grade tenants for a weighted average lease term of 16.8 years Acquired two properties comprising 356,000 square feet for 60.5 million, both of which are leased to FedEx for 15 years Increased our portfolio occupancy by 50 basis points over the prior year period and maintained our 99.4 occupancy rate sequentially Achieved a weighted average lease term of 7.2 years versus 7.8 years in the prior year period Increased our annualized average base rent per occupied square foot by 2 to 6.35 from the prior year period Achieved a weighted average debt maturity on fixed-rate mortgage debt of 11.2 years as compared to 11.5 years in the prior year period Maintained our Net Debt to Adjusted EBITDA at 6.2x which is in-line with the prior year period Reduced the weighted average interest rate on our fixed-rate mortgage debt to 4.00 from 4.03 in the prior year period and reduced the weighted average interest rate on our total fixed-rate debt to 3.90 from 4.03 in the prior year period Raised 4.5 million in net proceeds through the Preferred Stock ATM Program with the sale of 185,000 shares of our 6.125 Series C Preferred Stock at a weighted average price of 24.93 per share Raised 1.2 million including dividend reinvestments of 1.0 million from the Dividend Reinvestment and Stock Purchase Plan, representing a 6 participation rate Michael P. Landy, President and CEO, commented, Thus far in fiscal 2020, we have acquired four properties comprising 1.1 million square feet for a total purchase price of 159.9 million. During the recent quarter, we acquired two buildings comprising 356,000 square feet for a purchase price of 60.5 million. These properties, located in Greensboro, NC and Salt Lake City, UT are both leased to FedEx for 15 years. Our acquisition pipeline grew over the quarter to 218.7 million and currently contains four new build-to-suit properties comprising 1.5 million total square feet. These properties have a weighted average lease term of 16.8 years. In keeping with our business model, these projects are all leased to investment grade tenants which include, Amazon, FedEx, and Home Depot. Debt financing for three of these four future acquisitions has already been locked-in at a weighted average interest rate of 3.10.We have renewed four of the five leases that were set to expire this fiscal year. These four lease renewals represent 87 of the 410,000 square feet expiring this year. These lease renewals have a weighted average lease term of 4.2 years, and a weighted average lease rate of 5.87 per square foot on a GAAP basis and 5.71 per square foot on a cash basis. This represents an increase of 12.0 on a GAAP basis and an increase of 4.4 on a cash basis.Monmouth went into the global pandemic very well positioned with a strong balance sheet, a high-quality tenant roster, nearly full occupancy, and a well-covered dividend. Our resilient rent collection results during these challenging times highlights the mission-critical nature of our assets and underscores the essential need for our tenants operations. Because our weighted average lease maturity is 7.2 years and our weighted average fixed-rate mortgage debt maturity is 11.2 years, we expect our income streams to remain resilient for years to come.As a result of the government shutdowns, ecommerce sales as a percentage of total retail sales have accelerated from approximately 15 to 27 during the recent quarter. 