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

Monmouth Real Estate Investment Corporation A Public REIT Since 1968 November 25, 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, 2019, 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-K and/or our Supplemental Information package as of September 30, 2019, furnished to shareholders on Form 8-K, and is available on our website at www.mreic.reit. 2

Select Properties Indianapolis MSA Indianapolis MSA Phoenix MSA 3 Lexington MSA Kansas City MSA

Company Overview  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 22.9 million square feet, consisting of 115 properties with 99.2% 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 Indianapolis MSA 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 94% during the past five years  In fiscal 2019, closed on three properties totaling approximately 824,000 square feet for $138.6 million  Thus far in fiscal 2020, closed on one property with approximately 616,000 square feet for $81.5 million  Current acquisition pipeline includes four properties containing Memphis MSA approximately 997,000 square feet with a total purchase price of $150.5 million • All four properties are leased to investment grade tenants  Conservative capital structure  31.8% Net Debt to Total Market Capitalization  5.9x Net Debt/Adjusted EBITDA  2.4x Fixed Charge Coverage  11.3 years Weighted Average Debt Maturity Cleveland MSA 4 Source: MNR 10-K and subsequent press releases

Portfolio Overview Consistent Results Occupancy  115 properties geographically diversified across 30 states, totaling approximately 22.9 million square feet of GLA 99.6% 99.6%  Highest occupancy rate in the Industrial REIT sector at 99.2% 100.0% 99.3% 99.2% 98.9%  Currently in our fifth consecutive year with above 98% occupancy 99.0% 97.7%  Most modern industrial property portfolio with a weighted average 98.0% building age of 9.1 years 97.0% 95.9%  FedEx weighted average building age is 8.5 years 96.0%  Average building size is approximately 198,000 square feet 95.0%  Weighted average lease maturity is 7.6 years 94.0%  Weighted average rent per square foot is $6.25 93.0%  Ample expansion capability with a land to building ratio of 5.2:1 92.0%  Simple business model 91.0%  No off-balance sheet joint ventures 90.0%  No in-house development division FY 2014 FY 2015 FY 2016 FY 2017 FY 2018 FY 2019 Current  No significant amount of non-income producing land Tenant Retention 100.0% 100.0% 93.0% 100.0% 92.0% 90.0% 76.0% 80.0% 69.0% 70.0% 60.0% 53.0% 50.0% 40.0% 30.0% 20.0% 10.0% 0.0% FY 2013 FY 2014* FY 2015 FY 2016 FY 2017 FY 2018 FY 2019 * 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. Charlotte MSA 5 Source: MNR 10-K and subsequent press releases

Portfolio Growth Total GLA 23.4 24.0 Total Square Feet (in Millions) 22.3 21.2 22.0 18.8 20.0 18.0 16.0 16.0 13.9 14.0 11.2 12.0 10.0 8.0 6.0 FY 2014 FY 2015 FY 2016 FY 2017 FY 2018 FY2019 FY2020E Total Real Estate Assets Total Real Estate Assets ($ in Billions) $2.026 $1.867 $2.0 $1.720 $1.8 $1.432 $1.6 $1.4 $1.158 $1.2 $0.941 $1.0 $0.744 $0.8 $0.6 $0.4 FY 2014 FY 2015 FY 2016 FY 2017 FY 2018 FY2019 FY2020E 6 Source: MNR 10-K and subsequent press releases

Capital Structure $3.0 $2.5 Total Market Capitalization ($ in Billions) $2.0 $1.5 $1.0 $0.5 $0.0 FY 2015 FY 2016 FY 2017 FY 2018 FY 2019 Common Equity Preferred Equity Debt 7 Source: MNR 10-K and subsequent press releases

Financial Highlights Gross Revenue  Gross Revenue has grown at an average annual rate of 21% over the past five years $210 + 14% + 23% $160 + 19% $ in Millions + 27% $110 $60 $10 2015 2016 2017 2018 2019 Adjusted Funds from Operations per Share  AFFO per share has grown at an average annual rate of 11% over the past five years - 2% + 14% $0.90 + 9% $0.80 + 23% $0.70 $0.60 $0.50 $0.40 $0.30 $0.20 $0.10 $0.00 2015 2016 2017 2018 2019 * 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. 8 Source: MNR 10-K and subsequent press releases

Ecommerce Trends and MNR’s Portfolio  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 CAGR: 14.0% $700 $600 $500 $ in Billions $400 $300 $200 $100 $- 2011 2012 2013 2014 2015 2016 2017 2018 2019E 9 Source: U.S. Census Bureau & eMarketer

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

Strategic Locations Monmouth’s Property Portfolio with U.S. Population Density and U.S. Railroads Population Density (#/sq. mi.) U.S Railroads 1.74 – 37.60 207.00 – 2,891.79 70.60 – 112.60 37.60 – 70.60 MREIC Current Properties 112.60 – 207.00 11 Source: S&P Global Market Intelligence as of 11/16/19