Monmouth Real Estate Investment Corporation · This presentation may include references to...

Monmouth Real Estate Investment Corporation

A Public REIT Since 1968

February 2019Investor Presentation

NYSE: MNR

This presentation may contain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, asamended, Section 21E of the Securities Exchange Act of 1934, as amended. Forward-looking statements provide Monmouth RealEstate Investment Corporation’s current expectations or forecasts of future events. Forward-looking statements include statementsabout Monmouth’s expectations, beliefs, intentions, plans, objectives, goals, strategies, future events, performance and underlyingassumptions and other statements that are not historical facts. You can identify forward-looking statements by their use offorward-looking words, such as “may,” “will,” “anticipate,” “expect,” “believe,” “intend,” “plan,” “should,” “seek,” or comparableterms, or the negative use of those words, but the absence of these words does not necessarily mean that a statement is notforward-looking. The forward-looking statements are based on Monmouth’s beliefs, assumptions and expectations of its futureperformance, taking into account all information currently available to it. Forward-looking statements are not predictions of futureevents. These beliefs, assumptions and expectations can change as a result of many possible events or factors, not all of which areknown to Monmouth. Some of these factors are described under the headings “Risk Factors” and “Management’s Discussion andAnalysis of Financial Condition and Results of Operations” as included in Monmouth’s Annual Report on Form 10-K for the fiscal yearended September 30, 2018, its Quarterly Reports on Form 10-Q for the quarterly periods ended December 31, 2018, June 30 2018,and March 31, 2018, and its other periodic reports filed with the Securities and Exchange Commission, which are accessible on SEC’sElectronic Data Gathering, Analysis and Retrieval website, or “EDGAR” at www.sec.gov. These factors should not be construed asexhaustive and should be read in conjunction with other cautionary statements that are included in this presentation and inMonmouth’s SEC filings. These and other risks, uncertainties and factors could cause Monmouth’s actual results to differ materiallyfrom those included in any forward-looking statements it makes. Any forward-looking statement speaks only as of the date onwhich it is made. New risks and uncertainties arise over time, and it is not possible for Monmouth to predict those events or how theymay affect it. Except as required by law, Monmouth is not obligated to, and does not intend to, update or revise any forward-lookingstatements, whether as a result of new information, future events or otherwise. You should not place undue reliance on theseforward-looking statements, as events described or implied in such statements may not occur.

This presentation may include references to “FFO”, “Core FFO” and “AFFO”, which are non-GAAP financial measures. Areconciliation of “FFO”, “Core FFO” and “AFFO” to the most comparable GAAP financial measures is included in our most recentAnnual Report on Form 10-Q and/or our Supplemental Information package as of December 31, 2018, furnished to shareholders onForm 8-K, and is available on our website at www.mreic.reit.

2

Select Properties

Kansas City MSA Lexington MSA

Phoenix MSA

3

Indianapolis MSA Oklahoma City MSA

Company Overview

Memphis MSA

Indianapolis MSA

Single tenant, net-leased Industrial REIT specializing in well-located, modern properties subject to long-term leases primarily to investment grade tenants or their subsidiariesProperty portfolio contains 21.8 million square feet, consisting of 113 properties with 98.9% occupancy Geographically diversified portfolio across 30 states with a focus on major seaports, major intermodal ports, and major airportsQuality roster of investment grade tenants

Approximately 80% of rental revenue from investment grade tenants or their subsidiaries, including Amazon, Anheuser-Busch, Beam Suntory, Coca-Cola, FedEx, Home Depot, International Paper, National Oilwell, Shaw Industries, Sherwin-Williams, Siemens, United Technologies and other high-quality companies

Strong recent growthMonmouth successfully grew GLA by approximately 100% during the past five yearsIn fiscal 2018, closed on seven properties with approximately 2.7 million square feet for $282.3 millionThus far in fiscal 2019, closed on two properties totaling approximately 474,000 square feet for $113.1 millionCurrent acquisition pipeline includes two properties containing approximately 882,000 square with a total purchase price of $122.4 million

Conservative capital structure38.0% Net Debt to Total Market Capitalization 6.3x Net Debt/Adjusted EBITDA2.6x Fixed Charge Coverage11.8 years Weighted Average Debt Maturity

Source: MNR 10-Q and subsequent press releases 4

Portfolio Overview113 properties geographically diversified across 30 states, totaling approximately 21.8 million square feet of GLAHighest occupancy rate in the Industrial REIT sector at 98.9%Currently in our fourth consecutive year of above 98% occupancyMost modern industrial property portfolio

Youngest weighted average building age in the Industrial REIT sector at 8.7 years

Average building size is approximately 193,000 square feetWeighted average lease maturity is 8.1 yearsWeighted average rent per square foot is $6.22Simple business model

No off-balance sheet joint venturesNo in-house development divisionNo significant non-income producing land

96.0% 95.9%

97.7%

99.6% 99.3%99.6%

98.9%

90.0%91.0%92.0%93.0%94.0%95.0%96.0%97.0%98.0%99.0%

100.0%

FY 2013 FY 2014 FY 2015 FY 2016 FY 2017 FY 2018 Current

Occupancy

100.0%

86.0%93.0%

53.0%

100.0% 100.0%92.0%

69.0%

0.0%10.0%20.0%30.0%40.0%50.0%60.0%70.0%80.0%90.0%

100.0%

FY 2011 FY 2012 FY 2013 FY 2014* FY 2015 FY 2016 FY 2017 FY 2018**

Tenant Retention

5

Charlotte MSA

Consistent Results

* Only 438,000 square feet, representing 4% of total GLA, came due in fiscal 2014. 60,400 sf of the 208,400 sf that did not renew was re-tenanted.** Three buildings containing 184,000 total square feet, or 12% of the expiring square footage were sold and one building containing 218,000 square feet, or 14% of the expiring square footage was re-tenanted.Source: MNR 10-Q and subsequent press releases

Portfolio Growth

6

9.6 11.2

13.9

16.0

18.8

21.222.4

6.0

8.0

10.0

12.0

14.0

16.0

18.0

20.0

22.0

FY 2013 FY 2014 FY 2015 FY 2016 FY 2017 FY 2018 FY 2019E

Tota

l Squ

are

Feet

(in

Mill

ions

)

Total GLA

Total Real Estate Assets

$0.628$0.744

$0.941

$1.158

$1.432

$1.720$1.918

$0.4$0.6$0.8$1.0$1.2$1.4$1.6$1.8$2.0

FY 2013 FY 2014 FY 2015 FY 2016 FY 2017 FY 2018 FY 2019E

Tota

l Re

al E

stat

e A

sset

s ($

in B

illio

ns)

Source: MNR 10-Q and subsequent press releases

Capital Structure

$0.0

$0.5

$1.0

$1.5

$2.0

$2.5

$3.0

FY 2014 FY 2015 FY 2016 FY 2017 FY 2018 Q1 2019

Tota

l Mar

ket C

apita

lizat

ion

($ in

Bill

ions

)

Common Equity Preferred Equity Debt

7Source: MNR 10-Q and subsequent press releases

Financial Highlights


Gross Revenue

Adjusted Funds from Operations per Share

$10$30$50$70$90

$110$130$150$170

2014 2015 2016 2017 2018 Q1 2018 Q1 2019

+ 19%+ 27%

+ 19%

$0.00$0.10$0.20$0.30$0.40$0.50$0.60$0.70$0.80$0.90

2014 2015 2016 2017 2018 Q1 2018 Q1 2019

+ 5%

8

$ in

Mill

ions

+ 23%

+ 9%

+ 10%

+ 14%

+ 20%

Gross Revenue has grown at an average annual rate of 22% over the past five years

AFFO per share has grown at an average annual rate of 14% over the past five years

+ 23%

Ecommerce Trends and MNR’s Portfolio

Source: U.S. Census Bureau

The entire retail industry continues to shift its focus from traditional brick and mortar stores to ecommerce platforms whichhas led to significant demand for large, modern industrial distribution centersU.S. ecommerce sales are expected to increase to over $525 billion in 2018Excluding food, fuel, and auto, ecommerce represents approximately 16% of total U.S. retail salesMonmouth was early in anticipating consumer spending’s shift from traditional stores to internet salesToday, Monmouth’s vast FedEx holdings represent an integral part of the ecommerce ecosystem

ECommerce Sales

$-

$100

$200

$300

$400

$500

$600

2011 2012 2013 2014 2015 2016 2017 2018E

$ in

Bill

ions

CAGR: 16.0%

9

Global Retail Sales

0%

1%

2%

3%

4%

5%

6%

7%

8%

9%

0

5

10

15

20

2000

2001

2002

2003

2004

2005

2006

2007

2008

2009

2010

2011

2012

2013

2014

2015

2016

2017

2018

E

Online Sales (LHS)

In-Store Sales (LHS)

% Online (RHS)

$ in

Tril

lions

Source: Goldman Sachs

Global consumer habits continue to change resulting in ever greater market share taking place onlineGlobal ecommerce sales are expected to rise to $2.4 trillion in 2018

10

11

Monmouth’s Property Portfolio with U.S. Population Density and U.S. Railroads

Source: S&P Global Market Intelligence

Strategic Locations

Population Density (#/sq. mi.)opu a1.74 – 37.50

37.50 – 69.80

#/sq. m69.80 – 112.00

112.00 – 203.00

203.00 – 2,781.44 U.S Railroads

MREIC Current Properties

Source: K.C. Conway, Director of Research, Chief Economist, Alabama Center for Real Estate12

Q. What is it about the “Golden Triangle” that makes it tops in GDP, Logistics & Supply-Chain?

A. Best “Freightways!”

MREIC’s Portfolio:87 of 113 properties

are located within the“Golden Triangle”

The Golden Mfg & Logistics Triangle:SE (#1 @ 22%) + SW + Great lakes =

47% US GDP

The “Golden Triangle” – It’s “All about Logistics!”Remaking the Supply-Chain – A GREAT story for Mid-Central & SE U.S.

The GDP Golden Triangle

Portfolio Markets & Panama Canal Expansion

Source: MNR 10-Q, subsequent press releases, Parsons Brinckerhoff Panama Canal Expansion Study, June 2012; Panama Canal Authority, Canal Expansion Programs – Components Report April 2012, Washington Post: “Modernization of the Panama Canal”; January 2013

Monmouth’s acquisition pipeline currently comprises two new build-to-suit industrial properties containing approximately 882,000 square feet, of which all are leased to investment grade tenants or their subsidiaries, with an aggregate purchase price of $122.4 millionOver 70% of the U.S. population lives east of the Mississippi RiverFollowing nine years of construction costing $5.4 billion, the Panama Canal expansion project opened on June 26, 2016North American ports have been spending billions of dollars in order to prepare for these larger ships

These ships have more than twice the cargo capacity of the older shipsThe expanded Panama Canal allows larger vessels an approximate 29 day shorter transit time from the Atlantic to the Pacific oceansContainer traffic has been rapidly shifting to the East Coast ports

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Eastern Coastal

East Coast Inland

Gulf coast & Mississippi valley

Non-impacted marketsExisting Properties

Acquisitions Under Contract


https://www.logisticsmgmt.com/article/u.s._ports_update_part_1_expanded_panama_canal_changes_the_balance

According to its latest throughput figures, the Panama Canal transited a total of 13,548 vessels during its fiscal year 2017, representing a 3.3% increase compared to totals the year before. Thanks to the larger Neopanamax vessels now able to transit the expanded Canal, the growth in traffic translated into a 22.2% increase in total annual tonnage from 2016, and helped the Panama Canal surpass the already ambitious cargo projection of reaching 399 million tons.“These record figures reflect not only the industry’s confidence in the expanded Canal, but also illustrate our continued ability to transform the global economy and revitalize the maritime industry,” says Jorge Quijano, Panama Canal administrator.

Following the close of its September 30, 2017 fiscal year, Panama canal authorities announced that the entrepot welcomed a record 403.8 million tons – the largest amount of annual volume ever transited in its 103-year history. Industry analysts say the impact on U.S. ocean cargo gateways will soon become evident.

The Panama Canal currently serves 29 major liner services, including 15 Neopanamax liner services, primarily on the U.S. East Coast to Asia trade route. Chris Rogers, an analyst with the global trade consultancy Panjiva, notes that the diversion of Asian-inbound traffic from U.S. West Coast ports to those on the East Coast “took a step forward” with Panama Canal expansion.Data shows shipments to Southeast ports increased by 26.9 % over FY 2016, while those to California increased by a more modest 7.7 %(Source: Chris Rogers with Panjiva).

Expanded Panama Canal Changes the Balance


SE – MidAtlantic Ports growing 3X-4X

West coast Ports

SE & VA TEU Growth is UnmatchedSC had 45% TEU Container Growth 2011-2016

High Quality Tenant Base

Approximately 80% of rental revenue is from investment grade tenants or subsidiariesHigher investment grade tenant base than any other REIT

Rental roster includes Amazon, Anheuser-Busch, Beam Suntory, Coca-Cola, FedEx, Home Depot, International Paper, Keurig Dr Pepper, Milwaukee Tool, National Oilwell, Shaw Industries, Sherwin-Williams, Siemens, Snap-on, ULTA, United Technologies and other high quality companiesMonmouth began investing in properties leased to FedEx in 1994

Recent acquisitions include five properties consisting of an additional 1.2 million square feet leased to FedEx Fifteen FedEx expansion projects completed since Fiscal 2014, increasing the rent and lease terms of these facilities

Largest Percentage of Investment Grade Tenants in the REIT Sector


FedEx Ground, 40.9%

FedEx Express, 5.0%

FedEx Trade Networks, 2.1%Milwaukee Tool,

4.0%Shaw Industries,

3.8%

ULTA, 3.1%

Amazon.com Services, 3.0%

Jim Beam Brands, 2.8%

International Paper, 2.7%

Remaining Tenants, 32.6%

FedEx Ground, 53.6%

FedEx Express, 5.0%

FedEx Trade Networks, 1.0%

Amazon.com Services, 2.9%

Shaw Industries, 2.6%

Milwaukee Tool, 2.3%

ULTA, 2.0%

International Paper, 1.9%

TreeHouse, 1.7%

B. Braun Medical, 1.6%

Remaining Tenants, 25.4%

High Quality Tenants

Square Footage by TenantAnnual Rent by Tenant


FDX and its subsidiaries represent 59.6% of Annual Rent

FDX and its subsidiaries represent 48.0% of Square Footage

Florida, 10.1%

Texas, 8.2%

Ohio, 7.8%

Georgia, 7.5%

Kentucky, 5.9%

South Carolina, 5.8%

Mississippi, 5.3%

Indiana, 4.6%Illinois, 4.4%

North Carolina, 4.3%

Remaining States, 36.1%

Florida, 11.7%

Texas, 10.3%

Georgia, 7.8%

Ohio, 7.4%

South Carolina, 6.6%

New Jersey, 5.0%Illinois, 4.6%North Carolina, 4.2%

Michigan, 4.2%

Kentucky, 3.8%

Remaining States, 34.4%

Geographic Focus

Annual Rent by State Square Footage by State

18

Our 21.8 million square foot portfolio is well diversified across 30 states


Summary Portfolio Metrics

(1) Occupancy for MNR and peers based on SEC reports available as of 2/1/19(2) On a per square foot weighted average basis, MNR’s portfolio is 8.7 years old. This chart uses simple average instead of weighted average for comparative purposes because some of our peers do not publish weighted average

Source: S&P Global Market Intelligence19

Current Occupancy (1)

Rate

Average Building Age (in Years) (2)

Rent Roll (% next 3 years by base revenues)

98.9%98.5%

97.6%97.1% 96.8% 96.3%

95.4%

94.0%

90.0%

92.0%

94.0%

96.0%

98.0%

100.0%

MNR TRNO FR EGP PLD DRE STAG PSB

11.8%

30.5%

42.2% 44.4% 44.5% 46.8%51.7% 52.1%

0.0%10.0%20.0%30.0%40.0%50.0%

60.0%

MNR DRE TRNO PLD STAG FR EGP PSB

13 15 19 19

31 31 32

-

10

20

30

40

MNR DRE EGP PLD FR STAG TRNO

Highest occupancy rate in the sector

Youngest portfolio among peers

Limited near term rent roll

Fiscal 2018 AcquisitionsMonmouth has completed over $1 billion in acquisitions and more than doubled portfolio GLA over the past five yearsIn fiscal 2018, Monmouth acquired seven industrial properties, of which 85% are net leased to investment grade tenants or their subsidiaries for approximately $282.3 million, containing approximately 2.7 million square feetThus far in fiscal 2019, Monmouth acquired two properties containing approximately 474,000 square feet for $113.1 millionMonmouth’s acquisition pipeline currently contains approximately 882,000 square feet of two new build-to-suit properties, of which both are net leased to investment grade tenants or their subsidiaries, with an aggregate purchase price of $122.4 million

Fiscal 2018 Acquisitions Subsequentto FY2018

Charleston, SC

Oklahoma City, OK

Savannah, GA

Daytona Beach, FL

Mobile,AL

Charleston,SC

Atlanta,GA

Trenton,NJ

Savannah,GA

Tenant:

Credit Rating:(S&P/Moody’s)

BBB/Baa2 AA-/Baa1 AA/Aa2 NR AA-/Baa1 BBB/Baa2 BBB/Baa2 BBB/Baa2 BBB/Baa2

Year Built: 2017 2017 2018 2018 2018 2018 2018 2017 2018

Size (sf): 121,683 300,000 831,764 399,440 362,942 265,318 373,750 347,145 126,520

Acres: 16.2 123.0 62.4 27.5 31.3 48.9 92.6 62.0 29.4

Purchase Price: $21,872,170 $30,250,000 $57,483,636 $30,750,540 $33,688,276 $47,174,296 $61,113,264 $85,248,352 $27,832,780

Price/SF: $179.75 $100.83 $69.11 $76.98 $92.82 $177.80 $163.51 $245.57 $219.99

Lease Maturity: 8/31/2032 10/31/2027 9/30/2027 4/1/2028 11/30/2028 6/30/2033 2/28/2033 6/30/2032 10/31/2028

Annualized Rental Revenue:

$1,315,000 $1,884,000 $3,551,000 $2,130,000 $2,020,000 $2,713,000 $3,801,000 $5,328,000 $1,755,000


Select Acquisitions

FedEx Ground – Orlando, FL MSA – 310,922 sf


Walmart has recently constructed two large ecommerce fulfillment centers (one on each side of our FedEx facility) totaling 2.35 million square feet, illustrating the strong demand for our locations.

The Changing of The Guard

Before

22Source: MNR

The Big Town Mall was for many years the largest mall in Texas, and today…

The Changing of The Guard

After

23Source: MNR

This large 65 acre parcel situated six miles east of downtown Dallas is now the site of Monmouth’s new 352,000 sf FedEx facility.

Select Acquisitions (continued)

ULTA Ecommerce Fulfillment Center

Indianapolis, IN MSA – 671,354 sf


GE CATA(Center for Additive Technology Advancement)

Pittsburgh, PA MSA – 125,860 sf

Acquisition PipelineStrong acquisition pipeline comprising approximately 882,000 square feet with a purchase price of $122.4 million

Leases commence throughout fiscal 2019 and 2020Each of the two acquisitions included in the pipeline has a lease maturity of 15.0 years

Monmouth actively looks for new built-to-suit opportunities near already owned FedEx facilitiesSix FedEx expansion projects completed within the last two years with a total cost of $12.4 million as well as a 250,000 sf expansion for Milwaukee Tool at a total cost of $9.8 million and a 155,000 sf expansion for UGN, Inc. at a total cost of $9.1 millionThese expansions resulted in extending the weighted average lease terms by approximately 12 years and produced approximately 10% returns on cost from increased rentsMonmouth maintains excellent relationships with top merchant builders

25

Built-to-Suit Infrastructure Installation

Built-to-SuitBuilt-to-Suit Infrastructure Installation


Lease Expirations Are Well DispersedMinimal rent roll down risk observed on lease renewalsWeighted average lease maturity currently at 8.1 yearsWeighted average rent per occupied square foot of $6.22National average rent psf for industrial real estate currently is $6.11 and trending higher

Monmouth historically averages approximately 90% annual tenant retention: 100% renewed in Fiscal 2015 and 2016, 92% renewed in Fiscal 2017, and 69% in Fiscal 2018

0 sq. ft.

500 sq. ft.

1,000 sq. ft.

1,500 sq. ft.

2,000 sq. ft.

2,500 sq. ft.

3,000 sq. ft.

2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034

$10.15$5.54

$5.56

$4.57 $5.68

$5.71$6.35

$5.15

$4.55$8.08

$5.41

$8.92

Fiscal Year

(1)

GLA 2.4% 1.4% 5.5% 5.2% 7.7% 7.3% 11.4% 4.5% 10.6% 11.8% 6.0% 3.7% 4.4% 9.5% 2.9% 4.3%

ABR 2.2% 1.2% 4.1% 4.8% 7.1% 7.5% 9.6% 5.9% 9.4% 10.4% 5.4% 4.7% 5.3% 13.8% 4.8% 3.2%

Expi

ring

Squa

re F

oota

ge (0

00’s

)

26

Expiring square footage (‘000’s)Average rent per occupied square foot of expiring square footage above each bar

$5.57

$5.47

$7.41$7.80

(1) In fiscal 2019, approximately 1.5 million square feet was originally set to expire, out of which 802,595 square feet has thus far been renewed. This bar represents the 683,175 square feet still remaining to be renewed.

Source: MNR 10-Q and subsequent press releases, GLA: Gross Leasable Area, ABR: Annual Base Rent

Favorable US Industrial Fundamentals

Source: CBRE Research & Green Street

Current economic indicators are very favorable for the US industrial real estate sector and Monmouth’s portfolio due to:Rising GDPRampant growth in ecommerceLimited new construction over the past 8 yearsManufacturing growth due to increased domestic energy productionContinued benefits from the recently completed Panama Canal expansion

US Industrial Construction (000’s) US Industrial Occupancy

0

100,000

200,000

300,000

400,000

2004 2006 2008 2010 2012 2014 2016 201885%

90%

95%

100%

2004 2006 2008 2010 2012 2014 2016 2018

95.5%279,000

27

US Cap Rates

4%

6%

8%

10%

2004 2006 2008 2010 2012 2014 2016 2018

5.0%

Securities Portfolio Historic Performance (Fiscal Year)

(1) Fiscal Year beginning balance(2) Fiscal Year end balance(3) Through 12/31/18


Dividend Income ($ in Millions) Net Realized Gains ($ in Millions)

28

$5.4$8.5

$12.4$16.2

$19.9$25.6

$32.5

$45.6$49.9

$2.4 $3.0 $3.1 $3.9 $3.9 $3.7 $5.6 $6.9 $13.1 $4.3$0$5

$10$15$20$25$30$35$40$45$50

2010 2011 2012 2013 2014 2015 2016 2017 2018 2019

$7.8

$13.9

$21.0$23.2 $24.0

$28.4$30.7 $30.8 $30.8

$2.6 $5.2 $6.0 $7.1 $2.2 $0.8 $4.4 $2.3 $0.1 $0.0$0

$5

$10

$15

$20

$25

$30

$35

2010 2011 2012 2013 2014 2015 2016 2017 2018 2019

Annual Amount Cumulative Amount since 2010 Annual Amount Cumulative Amount since 2010

2010 $24,027,834 $27,824,665 $2,387,757 $2,609,149 $6,319,226 $11,316,132 47.102011 32,401,668 42,517,725 2,981,534 5,238,203 (7,747,894) 471,843 1.462012 41,896,896 44,265,059 3,144,837 6,044,065 3,015,774 12,204,676 29.132013 56,301,236 61,685,173 3,861,374 7,133,252 (3,394,669) 7,599,957 13.502014 43,462,472 45,451,740 3,863,136 2,166,766 (1,867,912) 4,161,990 9.582015 59,190,047 59,311,403 3,707,498 805,513 (5,562,959) (1,049,948) -1.772016 59,982,840 54,541,237 5,607,403 4,398,599 18,383,870 28,389,872 47.332017 60,662,627 73,604,894 6,919,973 2,311,714 (6,371,702) 2,859,985 4.712018 117,194,205 123,764,770 13,099,316 111,387 (31,315,144) (18,104,441) -15.452019(3) 179,665,124 154,920,545 4,331,260 -0- (42,626,889) (38,295,628) -21.32

Securities Portfolio Historic Performance (continued)

(1) Through 12/31/2018

Source: MNR 10-Q, subsequent press releases and S&P Global Market Intelligence as of 12/31/18.

29

2010 47.10 30.54 10.16 1656 36942011 1.46 1.26 1.14 20 322012 29.13 32.44 30.20 -331 -1072013 13.50 5.75 19.34 775 -5842014 9.58 13.26 19.73 -368 -10152015 -1.77 9.47 -0.61 -1124 -1162016 47.33 19.83 15.43 2750 31902017 4.71 0.54 18.61 417 -13902018 -15.45 3.74 17.91 -1919 -33362019(1) -21.32 -6.72 -13.52 -1460 -780

020406080

100120140160

2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019

MREIC RMS S&P 500

114.26%118.39%

Securities Portfolio Historic Performance - Total Return

110.11%

Conservative Balance SheetConservative capital structure

38.0% Net Debt to total market capitalization 6.3x Net Debt/Adjusted EBITDA2.6x fixed charge coverage 86% fixed rate debt, weighted average interest rate of 4.1%

Limited debt maturities each year through 202386% of debt consists of modest LTV asset level mortgage financingWeighted average mortgage maturity of 11.8 years, representing one of the longest debt maturity schedules in the REIT sector$348.6 million in potential liquidity

$145.8 million in REIT marketable securities $90.0 million available on our $200 million unsecured revolving line of credit, plus an additional $100 million potentially available on an accordion feature$12.8 million in cash

In October 2018 completed our first Common Stock offering since 2014, with the sale of 9.2 million shares generating gross proceeds of $138 million

(1) All dollar amounts except stock price are in millionsSource: MNR 10-Q and subsequent press releases

Debt Maturities

Total Market Capitalization (1)

Equity, 49%

Debt, 39%

Preferred, 12%

Total Shares Outstanding (12/31/18) 92,335,115

Stock Price (12/31/18) $12.40

Equity Market Capitalization $1,145.0

Mortgage Notes Payable 771.7

Loans Payable 125.8

Total Debt $897.5

Total Preferred 288.3

Total Market Capitalization $2,330.8

30

$0

$100

$200

$300

$400

$500

$600

2019 2020 2021 2022 2023 Thereafter

8.4%6.0%

17.9%

54.3%

7.4% 6.0%

Tota

l Deb

t ($

in M

illio

ns)

Loans Payable

Mortgages

% of Total Debt Outstanding

Mobile, AL

Long Term Cash Dividend

Source: S&P Global Market Intelligence

Monmouth has maintained or increased its dividend for 27 consecutive yearsOn October 2, 2017, Monmouth increased its dividend by 6.25% to $0.68 per year, marking our second dividend increase in 3 years. These 2 dividend increases total 13%Current AFFO dividend payout ratio is a conservative 74%Monmouth was one of the only REITs that maintained its dividend throughout the Great Recession100% cash dividends since inception

$0.57 $0.58

$0.58 $0.58 $0.58 $0.58 $0.58

$0.60 $0.60 $0.60 $0.60 $0.60 $0.60 $0.60 $0.60 $0.60 $0.60

$0.64 $0.64

$0.68 $0.68

$0.50 $0.52 $0.54 $0.56 $0.58 $0.60 $0.62 $0.64 $0.66 $0.68 $0.70

1999

2000

2001

2002

2003

2004

2005

2006

2007

2008

2009

2010

2011

2012

2013

2014

2015

2016

2017

2018

2019

E

Dividends Per Share

31

Peer Analysis

Source: S&P Global Market Intelligence as of 2/1/19NOTE: MNR peers include DRE, EGP, FR, PLD, PSB, STAG and TRNO

Dividend Yield

2019E FFO Multiple 2019E FFO Payout Ratio

Total Debt/Total Market Capitalization

32

30.5x

22.3x 22.2x 22.0x 21.2x 20.6x

15.3x 14.6x

0.0x

5.0x

10.0x

15.0x

20.0x

25.0x

30.0x

35.0x

TRNO PSB EGP PLD DRE FR STAG MNR

39.0%

28.8%26.5%

25.0%22.0%

19.8% 19.2%

2.4%

0.0%

5.0%

10.0%

15.0%

20.0%

25.0%

30.0%

35.0%

40.0%

45.0%

MNR STAG EGP FR DRE PLD TRNO PSB

5.2%4.9%

2.9% 2.9% 2.8% 2.8% 2.7%2.4%

0.0%

1.0%

2.0%

3.0%

4.0%

5.0%

6.0%

STAG MNR PSB DRE EGP PLD FR TRNO

79.9%72.9% 72.2%

65.3%61.8% 60.9% 61.7%

54.6%

0.0%

10.0%

20.0%

30.0%

40.0%

50.0%

60.0%

70.0%

80.0%

90.0%

STAG TRNO MNR PSB DRE PLD EGP FR

Total Return Performance

Source: S&P Global Market Intelligence as of 2/1/19

12Year

-150-100

-500

50100150200250300350

2/1/

2007

6/1/

2007

10/1

/200

7

2/1/

2008

6/1/

2008

10/1

/200

8

2/1/

2009

6/1/

2009

10/1

/200

9

2/1/

2010

6/1/

2010

10/1

/201

0

2/1/

2011

6/1/

2011

10/1

/201

1

2/1/

2012

6/1/

2012

10/1

/201

2

2/1/

2013

6/1/

2013

10/1

/201

3

2/1/

2014

6/1/

2014

10/1

/201

4

2/1/

2015

6/1/

2015

10/1

/201

5

2/1/

2016

6/1/

2016

10/1

/201

6

2/1/

2017

6/1/

2017

10/1

/201

7

2/1/

2018

6/1/

2018

10/1

/201

8

2/1/

2019

33

Dividend Yield5.2%

4.9%

2.9% 2.9% 2.8% 2.8% 2.7%2.4%

0.0%

1.0%

2.0%

3.0%

4.0%

5.0%

6.0%

STAG MNR PSB DRE EGP PLD FR TRNO

MNR Peer Group RMS

238.14%

63.57%65.44%

Monmouth is one of the top performing REITs over a 2, 10 and 20 year periodSlide utilizes 12 year period to illustrate long term performance including during the Global Financial Crisis

Key Investment Highlights

Best-in-Class Single Tenant Net-Lease Industrial Portfolio

34

Geographically Diversified with a High Quality Tenant Base

Demonstrated Portfolio, Earnings, and Dividend Growth

Conservative Balance Sheet

Experienced & Aligned Management Team with 6% Ownership

Well Positioned for Future Growth

2018 Annual report is now available on our website. Please contact our IR department if you would like to receive a hard copy.

Monmouth Real Estate Investment Corporationwww.MREIC.reit

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