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

Monmouth Real Estate Investment Corporation

A Public REIT Since 1968

April 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 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’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”, “Core FFO” and “AFFO”, which are non-GAAP financial measures. A reconciliation of “FFO”, “Core 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 December 31, 2018, furnished to shareholders on Form 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 subsidiaries

Property 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 airports

Quality 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 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 two properties totaling

approximately 474,000 square feet for $113.1 million

Current acquisition pipeline includes four properties containing

approximately 1.4 million square feet with a total purchase price

• f $172.2 million
• All four properties are leased to investment grade tenants
• 20% of the 1.4 million square feet is leased to FedEx

Conservative capital structure 38.0% Net Debt to Total Market Capitalization 6.3x Net Debt/Adjusted EBITDA 2.6x Fixed Charge Coverage 11.8 years Weighted Average Debt Maturity

Source: MNR 10-Q and subsequent press releases

4

Portfolio Overview

113 properties geographically diversified across 30 states, totaling

approximately 21.8 million square feet of GLA

Highest occupancy rate in the Industrial REIT sector at 98.9% Currently in our fourth consecutive year of above 98% occupancy Most modern industrial property portfolio Youngest weighted average building age in the Industrial

REIT sector at 8.8 years

Average building size is approximately 193,000 square feet Weighted average lease maturity is 8.0 years Weighted average rent per square foot is $6.23 Simple business model No off-balance sheet joint ventures No in-house development division No 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 2017FY 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 21.2 22.8 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

Total Square Feet (in Millions)

Total GLA Total Real Estate Assets

$0.628 $0.744 $0.941 $1.158 $1.432 $1.720 $1.944 $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 Q1 2019

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

7

Source: MNR 10-Q and subsequent press releases

Financial Highlights

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 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 Millions

+ 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 & eMarketer

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 $605 billion in 2019, representing 15% increase from 2018 Excluding food, fuel, and auto, ecommerce represents approximately 16% of total U.S. retail sales Monmouth was early in anticipating consumer spending’s shift from traditional stores to internet 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: 16.0%

9

Global Retail Sales

0% 1% 2% 3% 4% 5% 6% 7% 8% 9% 5 10 15 20 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018E Online Sales (LHS) In-Store Sales (LHS) % Online (RHS) $ in Trillions

Source: Goldman Sachs

Global consumer habits continue to change resulting in ever greater market share taking place online Global 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.)

• pu a

1.74 – 37.50 37.50 – 69.80

#/sq. m

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

• 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 four new build-to-suit industrial properties containing approximately 1.4 million square

feet, of which all are leased to investment grade tenants or their subsidiaries, with an aggregate purchase price of $172.2 million

• 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

13

Eastern Coastal East Coast Inland Gulf coast & Mississippi valley Non-impacted markets Existing Properties Acquisitions Under Contract

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

14

• 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

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

15

SE – MidAtlantic Ports growing 3X-4X West coast Ports

SE & VA TEU Growth is Unmatched

SC had 45% TEU Container Growth 2011-2016

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, 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

16

Source: MNR 10-Q and subsequent press releases

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 Tenant Annual Rent by Tenant

17

Source: MNR 10-Q and subsequent press releases

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, 6.7% New Jersey, 5.0% Illinois, 4.6% North Carolina, 4.2% Michigan, 4.2% Kentucky, 3.8% Remaining States, 34.3%

Geographic Focus

Annual Rent by State Square Footage by State

18

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

Source: MNR 10-Q and subsequent press releases

Summary Portfolio Metrics

(1) Occupancy for MNR and peers based on SEC reports available as of 3/29/19 (2) On a per square foot weighted average basis, MNR’s portfolio is 8.8 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 Intelligence

19

Current Occupancy (1) Rate Average Building Age (in Years) (2) Rent Roll (% next 3 years by base revenues)

98.9% 98.5% 98.4% 97.3% 96.8% 96.3% 95.5% 94.0%

90.0% 92.0% 94.0% 96.0% 98.0% 100.0% MNR FR TRNO 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
• ccupancy rate

in the sector

• Youngest

portfolio among peers

• Limited near

term rent roll

Fiscal 2018-2019 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 two properties containing approximately 474,000 square feet for $113.1 million. Monmouth’s acquisition pipeline currently contains approximately 1.4 million square feet consisting of four new build-to-suit

properties, of which 100% is net-leased to investment grade tenants or their subsidiaries, with an aggregate purchase price of $172.2 million. 20% of the 1.4 million square feet acquisition pipeline is leased to FedEx.

Fiscal 2018 Acquisitions

Fiscal 2019 Acquisitions

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

20

Source: MNR 10-Q and subsequent press releases

Select Acquisitions

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

21

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

22

Source: MNR

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

The Changing of The Guard

After

23

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)

UL TA Ecommerce Fulfillment Center

Indianapolis, IN MSA – 671,354 sf

24

Source: MNR 10-Q and subsequent press releases

GE CATA

(Center for Additive Technology Advancement)

Pittsburgh, PA MSA – 125,860 sf

Acquisition Pipeline

Strong acquisition pipeline comprising approximately 1.4 million square

feet with a purchase price of $172.2 million

100% is leased to investment grade tenants 20% is leased to FedEx Leases commence throughout fiscal 2019 and 2020 Acquisitions include in the pipeline have a weighted average

lease maturity of 13.2 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% returns on cost from increased rents

Monmouth maintains excellent relationships with top merchant builders

25

Built-to-Suit Infrastructure Installation Built-to-Suit Built-to-Suit Infrastructure Installation

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 8.0 years Weighted average rent per occupied square foot of $6.23 National 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 $6.57 $5.46 $4.57 $5.68 $5.71 $6.21 $5.15 $4.50 $8.08 $5.41 $8.92

Fiscal Year

(1) GLA 0.9% 1.5% 5.5% 5.2% 7.7% 8.7% 11.4% 4.5% 10.6% 11.8% 6.0% 3.7% 4.4% 9.5% 2.9% 4.3% ABR 1.0% 1.3% 4.1% 4.8% 7.1% 8.7% 9.6% 5.9% 9.4% 10.3% 5.4% 4.7% 5.3% 13.8% 4.8% 3.2%

Expiring Square Footage (000’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 1,131,335 square feet has thus far been 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 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 2004 2006 2008 2010 2012 2014 2016 2018 85% 90% 95% 100% 2004 2006 2008 2010 2012 2014 2016 2018

95.5% 279,000

27

US Cap Rates

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

4.9%

Securities Portfolio Historic Performance (Fiscal

Year)

(1) Fiscal Year beginning balance (2) Fiscal Year end balance (3) Through 12/31/18 Source: MNR 10-Q and subsequent press releases

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 47.10 2011 32,401,668 42,517,725 2,981,534 5,238,203 (7,747,894) 471,843 1.46 2012 41,896,896 44,265,059 3,144,837 6,044,065 3,015,774 12,204,676 29.13 2013 56,301,236 61,685,173 3,861,374 7,133,252 (3,394,669) 7,599,957 13.50 2014 43,462,472 45,451,740 3,863,136 2,166,766 (1,867,912) 4,161,990 9.58 2015 59,190,047 59,311,403 3,707,498 805,513 (5,562,959) (1,049,948)

• 1.77

2016 59,982,840 54,541,237 5,607,403 4,398,599 18,383,870 28,389,872 47.33 2017 60,662,627 73,604,894 6,919,973 2,311,714 (6,371,702) 2,859,985 4.71 2018 117,194,205 123,764,770 13,099,316 111,387 (31,315,144) (18,104,441)

• 15.45

2019(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 3694 2011 1.46 1.26 1.14 20 32 2012 29.13 32.44 30.20

• 331
• 107

2013 13.50 5.75 19.34 775

• 584

2014 9.58 13.26 19.73

• 368
• 1015

2015

• 1.77

9.47

• 0.61
• 1124
• 116

2016 47.33 19.83 15.43 2750 3190 2017 4.71 0.54 18.61 417

• 1390

2018

• 15.45

3.74 17.91

• 1919
• 3336

2019(1)

• 21.32
• 6.72
• 13.52
• 1460
• 780
• 20

40 60 80 100 120 140 160 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 Sheet

Conservative capital structure 38.0% Net Debt to total market capitalization 6.3x Net Debt/Adjusted EBITDA 2.6x fixed charge coverage 86% fixed rate debt, weighted average interest rate of 4.1% Limited debt maturities each year through 2023 86% of debt consists of modest LTV asset level mortgage financing Weighted 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, 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, 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%

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 a conservative 74% 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 2019E

Dividends Per Share

31

Peer Analysis

Source: S&P Global Market Intelligence as of 3/29/19 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

32

29.8x 23.6x 23.0x 22.8x 21.8x 20.8x 16.0x 14.0x

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

35.3% 30.9% 25.9% 24.8% 22.1% 21.3% 17.7% 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

5.2% 4.8% 3.0% 2.8% 2.7% 2.6% 2.6% 2.3%

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

77.1% 72.3% 68.0% 67.1% 63.1% 61.2% 59.4% 54.2%

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 DRE EGP FR

Total Return Performance

Source: S&P Global Market Intelligence as of 3/29/19

12Year

• 150
• 100
• 50

50 100 150 200 250 300 350 400

3/29/2007 7/29/2007 11/29/2007 3/29/2008 7/29/2008 11/29/2008 3/29/2009 7/29/2009 11/29/2009 3/29/2010 7/29/2010 11/29/2010 3/29/2011 7/29/2011 11/29/2011 3/29/2012 7/29/2012 11/29/2012 3/29/2013 7/29/2013 11/29/2013 3/29/2014 7/29/2014 11/29/2014 3/29/2015 7/29/2015 11/29/2015 3/29/2016 7/29/2016 11/29/2016 3/29/2017 7/29/2017 11/29/2017 3/29/2018 7/29/2018 11/29/2018 3/29/2019

33

Dividend Yield

5.2% 4.8% 3.0% 2.8% 2.7% 2.6% 2.6% 2.3%

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

MNR Peer Group RMS

232.93% 81.40% 85.40%

Monmouth is one of the top performing REITs over a 2, 10 and 20 year period Slide 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 Corporation Learn more at: www.mreic.reit/balancingforces