Monmouth Real Estate Investment Corporation A Public REIT Since - - PowerPoint PPT Presentation

Monmouth Real Estate Investment Corporation

A Public REIT Since 1968

September 2019 Investor Presentation NYSE: MNR

This presentation may contain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, Section 21E of the Securities Exchange Act of 1934, as amended. Forward-looking statements provide Monmouth Real Estate Investment Corporation’s current expectations or forecasts of future events. Forward-looking statements include statements about Monmouth’s expectations, beliefs, intentions, plans, objectives, goals, strategies, future events, performance and underlying assumptions and other statements that are not historical facts. You can identify forward-looking statements by their use of forward-looking words, such as “may,” “will,” “anticipate,” “expect,” “believe,” “intend,” “plan,” “should,” “seek,” or comparable terms, or the negative use of those words, but the absence of these words does not necessarily mean that a statement is not forward-looking. The forward-looking statements are based on Monmouth’s beliefs, assumptions and expectations of its future performance, taking into account all information currently available to it. Forward-looking statements are not predictions of future

• events. These beliefs, assumptions and expectations can change as a result of many possible events or factors, not all of which are

known to Monmouth. Some of these factors are described under the headings “Risk Factors” and “Management’s Discussion and Analysis of Financial Condition and Results of Operations” as included in Monmouth’s Annual Report on Form 10-K for the fiscal year ended September 30, 2018, its Quarterly Reports on Form 10-Q for the quarterly periods ended June 30, 2019, March 31, 2019, and December 31, 2018, and its other periodic reports filed with the Securities and Exchange Commission, which are accessible on SEC’s Electronic Data Gathering, Analysis and Retrieval website, or “EDGAR” at www.sec.gov. These factors should not be construed as exhaustive and should be read in conjunction with other cautionary statements that are included in this presentation and in Monmouth’s SEC filings. These and other risks, uncertainties and factors could cause Monmouth’s actual results to differ materially from those included in any forward-looking statements it makes. Any forward-looking statement speaks only as of the date on which it is made. New risks and uncertainties arise over time, and it is not possible for Monmouth to predict those events or how they may affect it. Except as required by law, Monmouth is not obligated to, and does not intend to, update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. You should not place undue reliance on these forward-looking statements, as events described or implied in such statements may not occur. This presentation may include references to “FFO” and “AFFO”, which are non-GAAP financial measures. A reconciliation of “FFO” and “AFFO” to the most comparable GAAP financial measures is included in our most recent Annual Report on Form 10-Q and/or our Supplemental Information package as of June 30, 2019, furnished to shareholders on Form 8-K, and is available on our website at www.mreic.reit.

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Select Properties

Kansas City MSA Lexington MSA Phoenix MSA

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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

• r their subsidiaries

▪ Property portfolio contains 22.3 million square feet, consisting of 114 properties with 98.9% occupancy ▪ Geographically diversified portfolio across 30 states with a focus on major seaports, major intermodal ports, and major airports ▪ Quality roster of investment grade tenants ▪ Approximately 80% of rental revenue from investment grade tenants

• r their subsidiaries, including Amazon, Anheuser-Busch, Beam

Suntory, Coca-Cola, FedEx, Home Depot, International Paper, National Oilwell, Shaw Industries, Sherwin-Williams, Siemens, Toyota, United Technologies and other high-quality companies ▪ Strong recent growth ▪ Monmouth successfully grew GLA by approximately 100% during the past five years ▪ In fiscal 2018, closed on seven properties with approximately 2.7 million square feet for $282.3 million ▪ Thus far in fiscal 2019, closed on three properties totaling approximately 824,000 square feet for $138.6 million ▪ Current acquisition pipeline includes four properties containing approximately 1.5 million square feet with a total purchase price of $219.2 million

• All four properties are leased to investment grade tenants
• 50% of the 1.5 million square foot pipeline is leased to FedEx

and 40% is leased to Amazon ▪ Conservative capital structure ▪ 34.4% Net Debt to Total Market Capitalization ▪ 6.2x Net Debt/Adjusted EBITDA ▪ 2.4x Fixed Charge Coverage ▪ 11.5 years Weighted Average Debt Maturity

Source: MNR 10-Q and subsequent press releases

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Portfolio Overview

▪ 114 properties geographically diversified across 30 states, totaling approximately 22.3 million square feet of GLA ▪ Highest occupancy rate in the Industrial REIT sector at 98.9% ▪ Currently in our fourth consecutive year with above 98% occupancy ▪ Most modern industrial property portfolio with a weighted average building age of 9.2 years ▪ Average building size is approximately 194,000 square feet ▪ Weighted average lease maturity is 7.6 years ▪ Weighted average rent per square foot is $6.20 ▪ Ample expansion capability with a land to building ratio of 5.2:1 ▪ Simple business model ▪ No off-balance sheet joint ventures ▪ No in-house development division ▪ No significant amount of 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

93.0% 53.0% 100.0% 100.0% 92.0% 69.0% 76.0%

0.0% 10.0% 20.0% 30.0% 40.0% 50.0% 60.0% 70.0% 80.0% 90.0% 100.0% FY 2013 FY 2014* FY 2015 FY 2016 FY 2017 FY 2018** FY 2019***

Tenant Retention

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Charlotte MSA

Consistent Results

* Only 438,000 square feet, representing 4% of total GLA, came due in fiscal 2014. Does not include 60,400 sf that was re-tenanted. ** Does not include three buildings containing 184,000 total square feet, or 12% of the expiring square footage that were sold and one building containing 218,000 square feet, or 14% of the expiring square footage that was re- tenanted. *** Does not include two buildings containing 188,000 square feet, or 13% of the expiring square footage that were re-tenanted. Source: MNR 10-Q and subsequent press releases

Portfolio Growth

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9.6 11.2 13.9 16.0 18.8 21.2 22.3 6.0 8.0 10.0 12.0 14.0 16.0 18.0 20.0 22.0 24.0 FY 2013 FY 2014 FY 2015 FY 2016 FY 2017 FY 2018 FY 2019E

Total Square Feet (in Millions)

Total GLA Total Real Estate Assets

$0.628 $0.744 $0.941 $1.158 $1.432 $1.720 $1.865 $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

Total Real Estate Assets ($ in Billions)

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 Q3 2019

Total Market Capitalization ($ in Billions) Common Equity Preferred Equity Debt

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Source: MNR 10-Q and subsequent press releases

Financial Highlights

* In October, we completed our first Common Stock offering since 2014, with the sale of 9.2 million shares generating gross proceeds of $138 million. This represented an 11.3% increase in outstanding shares. As we close the transactions in our acquisition pipeline, meaningful per share earnings accretion is expected to return.

Source: MNR 10-Q and subsequent press releases

Gross Revenue Adjusted Funds from Operations per Share

$10 $30 $50 $70 $90 $110 $130 $150 $170 2014 2015 2016 2017 2018 9MOS'2018 9MOS'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 9MOS'2018 9MOS'2019*

• 1.5%

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$ in Millions

+ 23% + 9% + 10% + 14% + 16%

▪ 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 & eMarketer

▪ Monmouth was early in anticipating consumer spending’s shift from traditional stores to internet sales ▪ The entire retail industry continues to shift its focus from traditional brick and mortar stores to omni-channel platforms. This has led to significant demand for large, modern industrial distribution centers ▪ U.S. ecommerce sales are expected to increase to over $587 billion in 2019, representing 14% increase from 2018 and 11% of total US retail sales ▪ Today, Monmouth’s vast FedEx holdings represent an integral part of the ecommerce ecosystem

ECommerce Sales

$- $100 $200 $300 $400 $500 $600 $700 2011 2012 2013 2014 2015 2016 2017 2018 2019E $ in Billions CAGR: 14.0% 9

Global Retail Sales

0% 2% 4% 6% 8% 10% 12% 14% 16% 18% 5 10 15 20 25 30 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019E Online Sales (LHS) In-Store Sales (LHS) % Online (RHS) $ in Trillions

Source: eMarketer

▪ Global consumer habits continue to change resulting in ever greater market share taking place online ▪ Global ecommerce sales are expected to rise to $3.5 trillion in 2019

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

Source: S&P Global Market Intelligence as of 9/4/19

Strategic Locations

Population Density (#/sq. mi.)

1.74 – 37.50 37.50 – 69.80 69.80 – 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 Estate

12 https://www.logisticsmgmt.com/article/u.s._ports_ update_part_1_expanded_panama_canal_chang es_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

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 four new build-to-suit industrial properties containing approximately 1.5 million square feet with an aggregate purchase price of $219.2 million. All four properties are leased to investment grade tenants or their subsidiaries.

▪ Over 70% of the U.S. population lives east of the Mississippi River ▪ Following nine years of construction costing $5.4 billion, the Panama Canal expansion project opened on June 26, 2016 ▪ North American ports have been spending billions of dollars in order to accommodate these larger ships ▪ These ships have more than twice the cargo capacity of the older ships ▪ The expanded Panama Canal allows larger vessels an approximate 29 day shorter transit time from the Atlantic to the Pacific oceans ▪ Container 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 markets Existing Properties Acquisitions Under Contract

High Quality Tenant Base

▪ Approximately 80% of rental revenue is from investment grade tenants or subsidiaries ▪ Higher 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, Toyota , ULTA, United Technologies and other high quality companies ▪ Monmouth 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

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Source: MNR 10-Q and subsequent press releases

FedEx Ground, 39.6% FedEx Express, 4.9% FedEx Trade Networks, 2.0% Milwaukee Tool, 3.9% Shaw Industries, 3.7% Amazon.com Services, 3.4% ULTA, 3.0% Jim Beam Brands, 2.7% International Paper, 2.6% Remaining Tenants, 34.2% FedEx Ground, 52.0% FedEx Express, 4.9% FedEx Trade Networks, 1.0% Amazon.com Services, 3.5% Shaw Industries, 2.6% Milwaukee Tool, 2.2% ULTA, 2.0% International Paper, 1.9% TreeHouse, 1.6% Autoneum North America, 1.6% Remaining Tenants, 26.7%

High Quality Tenants

Square Footage by Tenant Annual Rent by Tenant

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Source: MNR 10-Q and subsequent press releases

FDX and its subsidiaries represent 58.0% of Annual Rent FDX and its subsidiaries represent 46.6% of Square Footage

Florida, 9.9% Texas, 8.0% Ohio, 7.7% Georgia, 7.4% South Carolina, 6.2% Indiana, 6.1% Kentucky, 5.8% Mississippi, 5.2% Illinois, 4.3% North Carolina, 4.2% Remaining States, 35.2% Florida, 11.5% Texas, 10.1% Georgia, 7.7% South Carolina, 7.5% Ohio, 7.3% New Jersey, 4.9% Indiana, 4.5% Illinois, 4.5% North Carolina, 4.2% Michigan, 4.1% Remaining States, 33.7%

Geographic Focus

Annual Rent by State Square Footage by State

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▪ Our 22.3 million square foot portfolio is well diversified across 30 states

Source: MNR 10-Q and subsequent press releases

Summary Portfolio Metrics

Source: S&P Global Market Intelligence as of 9/6/19

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Current Occupancy Rate Rent Roll (% next 3 years by base revenues)

98.9% 97.9% 97.5% 97.3% 96.3% 95.4% 95.0% 94.5%

92.0% 93.0% 94.0% 95.0% 96.0% 97.0% 98.0% 99.0% 100.0% MNR TRNO EGP FR PLD DRE STAG PSB

11.1% 32.3% 38.8% 41.4% 42.4% 45.0% 50.6% 51.0%

0.0% 10.0% 20.0% 30.0% 40.0% 50.0% 60.0% MNR DRE STAG FR TRNO PLD EGP PSB

▪ Highest

• ccupancy rate

in the sector ▪ Limited near term rent roll ▪ Youngest portfolio in the Industrial REIT sector with a weighted average building age of 9.2 years ▪ Highest occupancy rate ▪ Longest income streams

Fiscal 2019 Acquisitions

▪ Monmouth has completed over $1 billion in acquisitions and more than doubled portfolio GLA over the past five years. ▪ In 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 feet. ▪ Thus far in fiscal 2019, Monmouth acquired three properties containing approximately 824,000 square feet for $138.6 million, all are net-leased to investment grade tenants or their subsidiaries. ▪ Monmouth’s acquisition pipeline currently contains approximately 1.5 million square feet consisting of four new build-to-suit properties, all of which are net-leased to investment grade tenants or their subsidiaries, with an aggregate purchase price of $219.2 million. 50% of the 1.5 million square feet acquisition pipeline is leased to FedEx and 40% is leased to Amazon.

Fiscal 2019 Acquisitions

Trenton, NJ Savannah, GA Lafayette, IN Tenant: Credit Rating: (S&P/Moody’s) BBB/Baa2 BBB/Baa2 A3 Year Built: 2017 2018 2019 Size (sf): 347,145 126,520 350,000 Acres: 62.0 29.4 45.6 Purchase Price: $85,248,352 $27,832,780 $25,536,000 Price/SF: $245.57 $219.99 $72.96 Lease Maturity: 6/30/2032 10/31/2028 6/30/2029 Total Annualized Rental Revenue for properties purchased in fiscal 2019: $8,790,000

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Source: MNR 10-Q and subsequent press releases

Select Acquisitions

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

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Source: MNR 10-Q and subsequent press releases

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

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Source: MNR

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

The Changing of The Guard

After

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Source: 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

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Source: MNR 10-Q and subsequent press releases

GE CATA

(Center for Additive Technology Advancement)

Pittsburgh, PA MSA – 125,860 sf

Acquisition Pipeline

▪ Large acquisition pipeline comprising approximately 1.5 million square feet with a purchase price of $219.2 million ▪ 100% is leased to investment grade tenants ▪ 50% is leased to FedEx and 40% is leased to Amazon ▪ Leases commence throughout fiscal 2019, 2020 and 2021 ▪ Acquisitions included in the pipeline have a weighted average lease maturity of 14.5 years ▪ Monmouth actively looks for new build-to-suit opportunities near already owned FedEx facilities ▪ Six FedEx expansion projects completed within the last three 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 $8.6 million ▪ These expansions resulted in extending the weighted average lease terms by approximately 12 years and produced approximately 10% unlevered returns on cost from increased rents ▪ Monmouth maintains excellent relationships with top merchant builders 23

Built-to-Suit Infrastructure Installation (material and handling equipment is owned by tenant) Built-to-Suit Built-to-Suit Infrastructure Installation (material and handling equipment is owned by tenant)

Source: MNR 10-Q and subsequent press releases

Lease Expirations Are Well Dispersed

▪ Minimal rent roll down risk observed on lease renewals ▪ Weighted average lease maturity currently at 7.6 years ▪ Weighted average rent per occupied square foot of $6.20 ▪ National average rent psf for industrial real estate currently is $6.47 and trending higher ▪ Monmouth historically averages approximately 90% annual tenant retention: 100% renewed in Fiscal 2015 and 2016, 92% renewed in Fiscal 2017, 69% in Fiscal 2018, and 76%(1) in Fiscal 2019

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

$10.15 $5.35 $4.57 $5.68 $5.71 $6.21 $5.05 $4.51 $7.74 $5.41 $8.92

Fiscal Year

GLA 1.9% 5.4% 5.1% 7.5% 8.5% 10.9% 4.8% 10.4% 11.6% 7.8% 3.9% 4.3% 9.3% 2.9% 4.2% ABR 1.6% 4.0% 4.7% 7.0% 8.6% 9.0% 6.1% 9.2% 10.2% 7.1% 5.1% 5.2% 13.5% 4.8% 3.1%

Expiring Square Footage (000’s)

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

$5.59 $5.47 $7.41 $7.97

(1) In fiscal 2019, approximately 1.5 million square feet was originally set to expire, out of which 1.1 million square feet has been renewed, 188,000 square feet has been re-tenanted with remaining 165,000 square feet being marketed. 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, and Cushman & Wakefield

▪ Current economic indicators are very favorable for the US industrial real estate sector and Monmouth’s portfolio due to: ▪ Rising GDP ▪ Rampant growth in ecommerce ▪ Limited new construction over the past 8 years ▪ Manufacturing growth due to increased domestic energy production ▪ Continued benefits from the recently completed Panama Canal expansion

US Industrial Construction (000’s) US Industrial Occupancy

100,000 200,000 300,000 400,000 2005 2007 2009 2011 2013 2015 2017 2019 85% 90% 95% 100% 2005 2007 2009 2011 2013 2015 2017 2018 2019

95.1% 327,500

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US Cap Rates

4% 6% 8% 10% 2005 2007 2009 2011 2013 2015 2017 2019

4.7%

Conservative Balance Sheet

▪ Conservative capital structure ▪ 34.4% Net Debt to total market capitalization ▪ 6.2x Net Debt/Adjusted EBITDA ▪ 2.4x Fixed Charge Coverage ▪ 85% fixed rate debt, weighted average interest rate of 4.03% ▪ Limited debt maturities each year through 2023 ▪ 85% of debt consists of modest LTV asset level mortgage financing ▪ Weighted average mortgage maturity of 11.5 years, representing one of the longest debt maturity schedules in the REIT sector ▪ $374.6 million in potential liquidity ▪ $171.0 million in REIT marketable securities (approximately 8% of gross assets) ▪ $90.0 million available on our $200 million unsecured revolving line

• f credit, plus an additional $100 million potentially available on an

accordion feature ▪ $13.6 million in cash ▪ In October 2018, we 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 millions Source: MNR 10-Q and subsequent press releases

Debt Maturities Total Market Capitalization (1)

Equity, 52% Debt, 35% Preferred, 13%

Total Shares Outstanding (6/30/19) 95,154,909 Stock Price (6/30/19) $13.55 Equity Market Capitalization $1,289.3 Mortgage Notes Payable 734.1 Loans Payable 126.2 Total Debt $860.3 Total Preferred Stock 312.7 Total Market Capitalization $2,462.3

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$0 $100 $200 $300 $400 $500 $600 2019 2020 2021 2022 2023 Thereafter

8.8% 6.2% 18.7% 56.6% 3.4% 6.3%

Total Debt ($ in Millions)

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 years ▪ On 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 81% ▪ Monmouth was one of the only REITs that maintained its dividend throughout the Great Recession ▪ 100% 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

Dividends Per Share

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Peer Analysis

Source: S&P Global Market Intelligence as of 9/6/19 NOTE: 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

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36.3x 26.3x 25.9x 25.5x 23.3x 22.6x 16.2x 15.2x

0.0x 5.0x 10.0x 15.0x 20.0x 25.0x 30.0x 35.0x 40.0x TRNO PSB PLD EGP DRE FR STAG MNR

34.9% 25.5% 22.7% 20.9% 20.0% 17.1% 12.1% 0.0%

0.0% 5.0% 10.0% 15.0% 20.0% 25.0% 30.0% 35.0% 40.0% MNR STAG FR EGP DRE PLD TRNO PSB

5.1% 4.9% 2.6% 2.5% 2.4% 2.4% 2.3% 2.1%

0.0% 1.0% 2.0% 3.0% 4.0% 5.0% 6.0% MNR STAG DRE PLD EGP FR PSB TRNO

78.9% 77.3% 76.8% 64.7% 61.1% 60.8% 60.0% 53.6%

0.0% 10.0% 20.0% 30.0% 40.0% 50.0% 60.0% 70.0% 80.0% 90.0% STAG MNR TRNO PLD PSB EGP DRE FR

Total Return Performance

Source: S&P Global Market Intelligence as of 9/6/19

12Year

• 100
• 50

50 100 150 200 250 300 350 400

9/6/2007 1/6/2008 5/6/2008 9/6/2008 1/6/2009 5/6/2009 9/6/2009 1/6/2010 5/6/2010 9/6/2010 1/6/2011 5/6/2011 9/6/2011 1/6/2012 5/6/2012 9/6/2012 1/6/2013 5/6/2013 9/6/2013 1/6/2014 5/6/2014 9/6/2014 1/6/2015 5/6/2015 9/6/2015 1/6/2016 5/6/2016 9/6/2016 1/6/2017 5/6/2017 9/6/2017 1/6/2018 5/6/2018 9/6/2018 1/6/2019 5/6/2019 9/6/2019

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Dividend Yield

5.1% 4.9% 2.6% 2.5% 2.4% 2.4% 2.3% 2.1%

0.0% 1.0% 2.0% 3.0% 4.0% 5.0% 6.0% MNR STAG DRE PLD EGP FR PSB TRNO

MNR Peer Group RMS

256.39% 140.16% 122.65%

▪ Monmouth is one of the top performing REITs ▪ Slide utilizes a 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

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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 available on our website. Please contact our IR department if you would like to receive a hard copy.

Monmouth Real Estate Investment Corporation Learn more at: www.mreic.reit/balancingforces