Monmouth Real Estate Investment Corp. (MNRTA, Financial) filed Annual Report for the period ended 2009-09-30.
MONMOUTH REAL ESTATE INVT operates as a qualified hybrid real estate investment trust under the Internal Revenue Code of 1954. Monmouth Real Estate Investment Corp. has a market cap of $197.8 million; its shares were traded at around $7.19 with and P/S ratio of 5.1. The dividend yield of Monmouth Real Estate Investment Corp. stocks is 8.4%.
Currently, the Company derives its income primarily from real estate rental operations. Rental and reimbursement revenue was $41,318,498, $39,148,259 and $28,237,404 for the years ended September 30, 2009, 2008 and 2007, respectively. Total assets were $394,774,778 and $389,077,597 as of September 30, 2009 and 2008, respectively.
In fiscal 2009, the Company purchased a 40,000 square foot industrial property in Topeka, Kansas for a total cost of approximately $4,088,000. The Company acquired a 449,900 square foot industrial building in Memphis, Tennessee in the first fiscal quarter of 2010 for approximately $14,600,000. The Company has a contract to purchase an industrial property for approximately $8,050,000 which transaction is expected to close in the first quarter of fiscal 2010. The Company anticipates additional acquisitions in 2010. The funds for these acquisitions are expected to come from mortgages, other bank borrowings, proceeds from the Dividend Reinvestment and Stock Purchase Plan (DRIP), private placements and public offerings or placements of additional common or preferred stock or other securities. To the extent that funds or appropriate properties are not available, fewer acquisitions will be made. Because of the contingent nature of contracts to purchase real property, the Company announces acquisitions only upon closing.
The Company continues to invest in both debt and equity securities of other REITs. The Company from time to time may purchase these securities on margin when the interest and dividend yields exceed the cost of the funds. This securities portfolio, to the extent not pledged to secure borrowings, provides the Company with liquidity and additional income. Such securities are subject to risk arising from adverse changes in market rates and prices, primarily interest rate risk relating to debt securities and equity price risk relating to equity securities. From time to time, the Company may use derivative instruments to mitigate interest rate risk. At September 30, 2009 and 2008, the Company had $27,824,665 and $21,005,663, respectively, of securities available for sale. The unrealized net gain (loss) on securities available for sale at September 30, 2009 and 2008 was $3,796,831 and ($6,139,451), respectively.
All of the wholly-owned properties and the shopping center are managed by Cronheim Management Services, Inc. (CMS), a division of David Cronheim Company, a related party as discussed in Note No. 13 to the Consolidated Financial Statements. During fiscal 2009, 2008 and 2007, the Company was subject to management contracts with CMS. For each of the calendar years 2009, 2008, and 2007 the management fee was fixed at $380,000. CMS provides sub-agents as regional managers for the Companys properties and compensates them out of this management fee. CMS also received $20,352, $3,219 and $33,273 in lease commissions in 2009, 2008 and 2007, respectively. CMS received $42,558 for a real estate commission on the sale of the South Brunswick, New Jersey property in 2007. The David Cronheim Mortgage Corporation, an affiliated company, received $-0-, $-0- and $47,250 in mortgage brokerage commissions in 2009, 2008 and 2007, respectively.
The industrial property in Carlstadt, New Jersey is owned by Palmer Terrace Realty Associates, LLC. This property is managed by Marcus Associates, an entity affiliated with the 49% minority partner. Management fees paid to Marcus Associates for 2009, 2008 and 2007 (from the time of the merger) totaled $14,399, $12,993 and $2,166, respectively. The industrial properties in Wheeling, Illinois and El Paso, Texas, are owned by Wheeling Partners, LLC and Jones EPI, LLC, respectively. These properties are managed by Jones Development Company, an entity affiliated with the 37% and 35% minority partners, respectively. Management fees paid to Jones Development Company for 2009, 2008 and 2007 (from the time of the merger) were $20,531, $20,327 and $3,477, respectively.
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MONMOUTH REAL ESTATE INVT operates as a qualified hybrid real estate investment trust under the Internal Revenue Code of 1954. Monmouth Real Estate Investment Corp. has a market cap of $197.8 million; its shares were traded at around $7.19 with and P/S ratio of 5.1. The dividend yield of Monmouth Real Estate Investment Corp. stocks is 8.4%.
Highlight of Business Operations:
The aggregate market value of the voting stock of the registrant held by nonaffiliates of the registrant at March 31, 2009 was approximately $142,288,000 (based on the $6.96 closing price per share of common stock on the NASDAQ Global Select Market).Currently, the Company derives its income primarily from real estate rental operations. Rental and reimbursement revenue was $41,318,498, $39,148,259 and $28,237,404 for the years ended September 30, 2009, 2008 and 2007, respectively. Total assets were $394,774,778 and $389,077,597 as of September 30, 2009 and 2008, respectively.
In fiscal 2009, the Company purchased a 40,000 square foot industrial property in Topeka, Kansas for a total cost of approximately $4,088,000. The Company acquired a 449,900 square foot industrial building in Memphis, Tennessee in the first fiscal quarter of 2010 for approximately $14,600,000. The Company has a contract to purchase an industrial property for approximately $8,050,000 which transaction is expected to close in the first quarter of fiscal 2010. The Company anticipates additional acquisitions in 2010. The funds for these acquisitions are expected to come from mortgages, other bank borrowings, proceeds from the Dividend Reinvestment and Stock Purchase Plan (DRIP), private placements and public offerings or placements of additional common or preferred stock or other securities. To the extent that funds or appropriate properties are not available, fewer acquisitions will be made. Because of the contingent nature of contracts to purchase real property, the Company announces acquisitions only upon closing.
The Company continues to invest in both debt and equity securities of other REITs. The Company from time to time may purchase these securities on margin when the interest and dividend yields exceed the cost of the funds. This securities portfolio, to the extent not pledged to secure borrowings, provides the Company with liquidity and additional income. Such securities are subject to risk arising from adverse changes in market rates and prices, primarily interest rate risk relating to debt securities and equity price risk relating to equity securities. From time to time, the Company may use derivative instruments to mitigate interest rate risk. At September 30, 2009 and 2008, the Company had $27,824,665 and $21,005,663, respectively, of securities available for sale. The unrealized net gain (loss) on securities available for sale at September 30, 2009 and 2008 was $3,796,831 and ($6,139,451), respectively.
All of the wholly-owned properties and the shopping center are managed by Cronheim Management Services, Inc. (CMS), a division of David Cronheim Company, a related party as discussed in Note No. 13 to the Consolidated Financial Statements. During fiscal 2009, 2008 and 2007, the Company was subject to management contracts with CMS. For each of the calendar years 2009, 2008, and 2007 the management fee was fixed at $380,000. CMS provides sub-agents as regional managers for the Companys properties and compensates them out of this management fee. CMS also received $20,352, $3,219 and $33,273 in lease commissions in 2009, 2008 and 2007, respectively. CMS received $42,558 for a real estate commission on the sale of the South Brunswick, New Jersey property in 2007. The David Cronheim Mortgage Corporation, an affiliated company, received $-0-, $-0- and $47,250 in mortgage brokerage commissions in 2009, 2008 and 2007, respectively.
The industrial property in Carlstadt, New Jersey is owned by Palmer Terrace Realty Associates, LLC. This property is managed by Marcus Associates, an entity affiliated with the 49% minority partner. Management fees paid to Marcus Associates for 2009, 2008 and 2007 (from the time of the merger) totaled $14,399, $12,993 and $2,166, respectively. The industrial properties in Wheeling, Illinois and El Paso, Texas, are owned by Wheeling Partners, LLC and Jones EPI, LLC, respectively. These properties are managed by Jones Development Company, an entity affiliated with the 37% and 35% minority partners, respectively. Management fees paid to Jones Development Company for 2009, 2008 and 2007 (from the time of the merger) were $20,531, $20,327 and $3,477, respectively.
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