NYSE:MNR.PRC

Stock Analysis Report

Monmouth Real Estate Investment

Executive Summary

Monmouth Real Estate Investment Corporation, founded in 1968, is one of the oldest public equity REITs in the world.

Rewards

Trading at 57.6% below its fair value

Earnings are forecast to grow 18.39% per year

Became profitable this year

Pays a high and reliable dividend of 5.87%

Risk Analysis

Debt is not well covered by operating cash flow

Highly volatile share price over past 3 months

Large one-off items impacting financial results

Shareholders have been diluted in the past year



Snowflake Analysis

6 star dividend payer with reasonable growth potential.


Similar Companies

Share Price & News

How has Monmouth Real Estate Investment's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: MNR.PRC's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

-2.7%

MNR.PRC

0.3%

US REITs

2.4%

US Market


1 Year Return

-9.2%

MNR.PRC

-20.3%

US REITs

-10.0%

US Market

Return vs Industry: MNR.PRC exceeded the US REITs industry which returned -23.9% over the past year.

Return vs Market: MNR.PRC exceeded the US Market which returned -13.3% over the past year.


Shareholder returns

MNR.PRCIndustryMarket
7 Day-2.7%0.3%2.4%
30 Day-12.4%-22.2%-11.0%
90 Day-12.8%-24.2%-19.4%
1 Year-3.4%-9.2%-16.9%-20.3%-8.1%-10.0%
3 Year4.8%-13.1%-2.8%-15.0%17.3%9.6%
5 Yearn/a15.9%-7.9%36.1%21.1%

Price Volatility Vs. Market

How volatile is Monmouth Real Estate Investment's share price compared to the market and industry in the last 5 years?


Simply Wall St News

No news available

Valuation

Is Monmouth Real Estate Investment undervalued compared to its fair value and its price relative to the market?

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: MNR.PRC ($21.8) is trading below our estimate of fair value ($51.37)

Significantly Below Fair Value: MNR.PRC is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: MNR.PRC is poor value based on its PE Ratio (23.4x) compared to the REITs industry average (23x).

PE vs Market: MNR.PRC is poor value based on its PE Ratio (23.4x) compared to the US market (12.5x).


Price to Earnings Growth Ratio

PEG Ratio: MNR.PRC is poor value based on its PEG Ratio (1.3x)


Price to Book Ratio

PB vs Industry: MNR.PRC is overvalued based on its PB Ratio (1.7x) compared to the US REITs industry average (1.2x).


Next Steps

Future Growth

How is Monmouth Real Estate Investment forecast to perform in the next 1 to 3 years based on estimates from 3 analysts?

18.4%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: MNR.PRC's forecast earnings growth (18.4% per year) is above the savings rate (1.7%).

Earnings vs Market: MNR.PRC's earnings (18.4% per year) are forecast to grow faster than the US market (13.4% per year).

High Growth Earnings: MNR.PRC's earnings are forecast to grow, but not significantly.

Revenue vs Market: MNR.PRC's revenue (26.5% per year) is forecast to grow faster than the US market (7% per year).

High Growth Revenue: MNR.PRC's revenue (26.5% per year) is forecast to grow faster than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: Insufficient data to determine if MNR.PRC's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

How has Monmouth Real Estate Investment performed over the past 5 years?

5.0%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: MNR.PRC has a large one-off gain of $13.5M impacting its December 31 2019 financial results.

Growing Profit Margin: MNR.PRC became profitable in the past.


Past Earnings Growth Analysis

Earnings Trend: MNR.PRC's earnings have grown by 5% per year over the past 5 years.

Accelerating Growth: MNR.PRC has become profitable in the last year, making the earnings growth rate difficult to compare to its 5-year average.

Earnings vs Industry: MNR.PRC has become profitable in the last year, making it difficult to compare its past year earnings growth to the REITs industry (4.3%).


Return on Equity

High ROE: MNR.PRC's Return on Equity (6.4%) is considered low.


Next Steps

Financial Health

How is Monmouth Real Estate Investment's financial position?


Financial Position Analysis

Short Term Liabilities: MNR.PRC's short term assets ($47.6M) do not cover its short term liabilities ($139.8M).

Long Term Liabilities: MNR.PRC's short term assets ($47.6M) do not cover its long term liabilities ($749.8M).


Debt to Equity History and Analysis

Debt Level: MNR.PRC's debt to equity ratio (81.7%) is considered high.

Reducing Debt: MNR.PRC's debt to equity ratio has reduced from 86.1% to 81.7% over the past 5 years.

Debt Coverage: MNR.PRC's debt is not well covered by operating cash flow (11.4%).

Interest Coverage: MNR.PRC's interest payments on its debt are well covered by EBIT (3.3x coverage).


Balance Sheet


Next Steps

Dividend

What is Monmouth Real Estate Investment's current dividend yield, its reliability and sustainability?

5.87%

Current Dividend Yield


Upcoming Dividend Payment


Dividend Yield vs Market

Notable Dividend: MNR.PRC's dividend (5.87%) is higher than the bottom 25% of dividend payers in the US market (2.01%).

High Dividend: MNR.PRC's dividend (5.87%) is in the top 25% of dividend payers in the US market (5.66%)


Stability and Growth of Payments

Stable Dividend: MNR.PRC's dividends per share have been stable in the past 10 years.

Growing Dividend: MNR.PRC's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: At its current payout ratio (86%), MNR.PRC's payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: MNR.PRC's dividends in 3 years are forecast to be thoroughly covered by earnings (0.8% payout ratio).


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

7.0yrs

Average management tenure


CEO

Michael Landy (57yo)

7s

Tenure

US$1,483,000

Compensation

Mr. Michael P. Landy has been the Chief Executive Officer and President of Monmouth Real Estate Investment Corporation since April 9, 2013 and has been its Director since July 2007 and previously served as ...


CEO Compensation Analysis

Compensation vs Market: Michael's total compensation ($USD1.48M) is below average for companies of similar size in the US market ($USD3.25M).

Compensation vs Earnings: Michael's compensation has been consistent with company performance over the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Eugene Landy
Founder & Chairman52.25yrsUS$662.00k1.49% $16.9m
Michael Landy
CEO, President & Executive Director7yrsUS$1.48m0.73% $8.3m
Kevin Miller
CFO, Chief Accounting Officer2.83yrsUS$748.00k0.055% $621.5k
Michael Prashad
Secretary & General Counsel0.33yrno data0.0021% $23.5k
Richard Molke
Vice President of Asset Managementno datano data0.0038% $43.1k
Katie Rytter
Controllerno datano data0.011% $128.3k
Laura Teman
Assistant Controllerno datano datano data
Becky Coleridge
Vice President of Investor Relations1.25yrsno datano data

7.0yrs

Average Tenure

49yo

Average Age

Experienced Management: MNR.PRC's management team is seasoned and experienced (7 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Eugene Landy
Founder & Chairman52.25yrsUS$662.00k1.49% $16.9m
Michael Landy
CEO, President & Executive Director7yrsUS$1.48m0.73% $8.3m
Kevin Miller
CFO, Chief Accounting Officer2.83yrsUS$748.00k0.055% $621.5k
Samuel Landy
Non-Executive Non-Independent Director31.25yrsUS$73.00k0.35% $4.0m
Daniel Cronheim
Independent Director31.25yrsUS$73.00k0.18% $2.1m
Matthew Hirsch
Independent Director19.75yrsUS$79.00k0.081% $922.1k
Neal Herstik
Independent Director16yrsUS$73.00k0.024% $275.2k
Stephen Wolgin
Independent Director16.67yrsUS$77.00k0.074% $840.6k
Catherine Elflein
Independent Director12.5yrsUS$78.00k0.017% $196.1k
Brian Haimm
Lead Independent Directorno dataUS$79.00k0.017% $188.0k

16.7yrs

Average Tenure

59.5yo

Average Age

Experienced Board: MNR.PRC's board of directors are seasoned and experienced ( 16.7 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: MNR.PRC insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 15.6%.


Top Shareholders

Company Information

Monmouth Real Estate Investment Corporation's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Monmouth Real Estate Investment Corporation
  • Ticker: MNR.PRC
  • Exchange: NYSE
  • Founded: 1968
  • Industry: Industrial REITs
  • Sector: Real Estate
  • Market Cap: US$1.134b
  • Shares outstanding: 97.97m
  • Website: https://www.mreic.reit

Number of Employees


Location

  • Monmouth Real Estate Investment Corporation
  • Bell Works Complex
  • Suite 1405
  • Holmdel
  • New Jersey
  • 7733
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
MNRNYSE (New York Stock Exchange)YesCommon StockUSUSDDec 1972
MNR.PRCNYSE (New York Stock Exchange)PFD SER CUSUSDSep 2016

Biography

Monmouth Real Estate Investment Corporation, founded in 1968, is one of the oldest public equity REITs in the world. We specialize in single tenant, net-leased industrial properties, subject to long-term leases, primarily to investment-grade tenants. Monmouth Real Estate is a fully integrated and self-managed real estate company, whose property portfolio consists of 115 properties containing a total of approximately 22.9 million rentable square feet, geographically diversified across 30 states. In addition, we own a portfolio of REIT securities. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/04/07 11:22
End of Day Share Price2020/04/06 00:00
Earnings2019/12/31
Annual Earnings2019/09/30


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.