MONMOUTH REAL ESTATE INVESTMENT CORPORATION ISSUES STATEMENT - Seite 2

Monmouth: The Single Best Performing Industrial REIT by TSR

The Monmouth Board and management team have taken decisive actions to drive the Company’s next phase of growth and deliver value for stockholders. Notwithstanding the unprecedented challenges caused by COVID-19, Monmouth’s operating excellence has produced consistently high occupancies, strong tenant retentions and rent collections as well as strong overall growth.

Recent developments have only highlighted the value of Monmouth’s assets and resiliency of its unique approach to profitably serving its ecommerce-oriented tenants. During fiscal 2020, Monmouth has seen strong demand for its properties and has the highest occupancy rate in the sector at 99.7%. The Company expects the combination of its two recent acquisitions totaling $170.0 million, a $169.3 million acquisition pipeline, substantial parking expansions currently taking place and increased occupancy to meaningfully contribute to its earnings per share and cash flow growth in fiscal 2021 and beyond.

Monmouth’s disciplined approach and proven business model have delivered to stockholders significant total returns including 1,239%, 243%, 103% and 22% over the 20, 10, 5 and 1 year periods ending on December 18, 2020, respectively, the last trading day preceding Blackwells’ announcement of its unsolicited proposal. Over the past year, Monmouth was the single best performing industrial REIT based on total return to stockholders and has significantly outperformed the MSCI US REIT Index and exceeded returns on the S&P500. Indeed, Monmouth has maintained or increased its common stock cash dividend for 116 consecutive quarters or 29 years, in addition to being one of the few REITs that preserved its cash dividend during the Global Financial Crisis of 2007-2008.

A State-Of-The-Art Industrial Portfolio Fueled By Ecommerce

Over the past five years, the Company has managed to substantially increase the size of its state-of-the-art industrial portfolio on a cash flow accretive basis while also strengthening its balance sheet. Since fiscal year 2015, Monmouth successfully:

• Completed $1.26 billion in acquisitions, more than doubling the size of the Company;
• Added 10.6 million square feet of GLA representing an increase of 76%;
• Increased rental revenue by 111% or 16% per annum;
• Increased AFFO per share while expanding its equity market capitalization to $1.7 billion;
• Increased dividends per share by 13.3% while significantly improving dividend coverage;
• Reduced debt leverage by 15% to 6.0x Net Debt to Adjusted EBITDA;
• Lowered debt costs by 18% to an average interest rate of less than 4%; and
• Extended average debt maturities to 11 years, among the longest in the REIT industry.

Following review by its Nominating and Corporate Governance Committee, the Board will present its formal recommendations with respect to the election of directors and any other matters that may properly be brought before the 2021 Annual Meeting. The 2021 Annual Meeting has not yet been scheduled. Monmouth stockholders are not required to take action at this time.