NYSE:MNR

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 48.5% below its fair value

Earnings are forecast to grow 66.35% per year

Pays a high and reliable dividend of 4.68%

Risk Analysis

Large one-off items impacting financial results

Profit margins (7%) are lower than last year (27.9%)

Shareholders have been diluted in the past year



Snowflake Analysis

6 star dividend payer with reasonable growth potential.


Similar Companies

Rexford Industrial Realty

NYSE:REXR

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 has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

0.3%

MNR

1.2%

US REITs

-0.09%

US Market


1 Year Return

12.2%

MNR

19.0%

US REITs

23.9%

US Market

Return vs Industry: MNR underperformed the US REITs industry which returned 17.9% over the past year.

Return vs Market: MNR underperformed the US Market which returned 24.7% over the past year.


Shareholder returns

MNRIndustryMarket
7 Day0.3%1.2%-0.09%
30 Day0.8%4.6%3.1%
90 Day0.7%1.5%10.4%
1 Year17.8%12.2%23.9%19.0%26.6%23.9%
3 Year12.6%-1.7%37.5%20.1%50.9%41.2%
5 Year57.4%23.0%48.7%18.0%78.1%58.5%

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

Valuation

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

47.6%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: MNR ($14.52) is trading below our estimate of fair value ($28.18)

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


Price To Earnings Ratio

PE vs Industry: MNR is poor value based on its PE Ratio (123x) compared to the REITs industry average (37.8x).

PE vs Market: MNR is poor value based on its PE Ratio (123x) compared to the US market (18.9x).


Price to Earnings Growth Ratio

PEG Ratio: MNR is poor value based on its PEG Ratio (1.9x)


Price to Book Ratio

PB vs Industry: MNR is overvalued based on its PB Ratio (2.1x) compared to the US REITs industry average (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?

66.4%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: MNR's forecast earnings growth (66.4% per year) is above the savings rate (1.7%).

Earnings vs Market: MNR's earnings (66.4% per year) are forecast to grow faster than the US market (14.3% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: MNR's revenue (19.3% per year) is forecast to grow faster than the US market (7.5% per year).

High Growth Revenue: MNR's revenue (19.3% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: MNR's Return on Equity is forecast to be low in 3 years time (6.9%).


Next Steps

Past Performance

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

-0.2%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: MNR has a large one-off loss of $24.7M impacting its September 30 2019 financial results.

Growing Profit Margin: MNR's current net profit margins (7%) are lower than last year (27.9%).


Past Earnings Growth Analysis

Earnings Trend: MNR's earnings have declined by -0.2% per year over the past 5 years.

Accelerating Growth: MNR's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: MNR had negative earnings growth (-71.6%) over the past year, making it difficult to compare to the REITs industry average (8.1%).


Return on Equity

High ROE: MNR's Return on Equity (2.9%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Monmouth Real Estate Investment's financial position? (This company is analysed differently as a bank or financial institution)


Financial Position Analysis


Debt to Equity History and Analysis


Balance Sheet

Inventory Level: MNR has a high level of physical assets or inventory.

Debt Coverage by Assets: MNR's debt is not covered by short term assets (assets are 0x debt).


Financial Institutions Analysis

Asset Level: MNR's level of assets compared to its equity is low.

Allowance for Bad Loans: Insufficient data to determine if MNR has a sufficient allowance for bad loans.

Low Risk Liabilities: MNR reports no customer deposits, loans are made up entirely of externally borrowed funds.

Loan Level: Insufficient data to determine if MNR has an acceptable proportion of non-loan assets held.

Low Risk Deposits: MNR has advanced significantly more loans than the customer deposits it holds.

Level of Bad Loans: Insufficient data to determine if MNR has an appropriate level of bad loans.


Next Steps

Dividend

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

4.60%

Current Dividend Yield


Upcoming Dividend Payment

Purchase Monmouth Real Estate Investment before the 'Buy Limit' to receive their next dividend payment.


Dividend Yield vs Market

company4.6%marketbottom25%1.4%markettop25%3.7%industryaverage3.6%forecastin3Years4.5%

Current dividend yield vs market & industry

Notable Dividend: MNR's dividend (4.68%) is higher than the bottom 25% of dividend payers in the US market (1.4%).

High Dividend: MNR's dividend (4.68%) is in the top 25% of dividend payers in the US market (3.66%)


Stability and Growth of Payments

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

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


Current Payout to Shareholders

Dividend Coverage: At its current payout ratio (80.4%), MNR's payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: MNR's dividends in 3 years are forecast to be thoroughly covered by earnings (0.6% payout ratio).


Next Steps

Management

What is the CEO of Monmouth Real Estate Investment's salary, the management and board of directors tenure and is there insider trading?

6.8yrs

Average management tenure


CEO

Michael Landy (57yo)

6.8yrs

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 ($USD1.48M) is below average for companies of similar size in the US market ($USD3.86M).

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


Management Age and Tenure

6.8yrs

Average Tenure

57yo

Average Age

Experienced Management: MNR's management team is seasoned and experienced (6.8 years average tenure).


Board Age and Tenure

16.4yrs

Average Tenure

59.5yo

Average Age

Experienced Board: MNR's board of directors are seasoned and experienced ( 16.4 years average tenure).


Insider Trading

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


Recent Insider Transactions

BuyUS$2,00017 Jan 20
Michael Landy
EntityIndividual
Role
Chief Executive Officer
CEO, President & Executive Director
Shares144.51
Max PriceUS$13.84
BuyUS$2,00017 Jan 20
Kevin Miller
EntityIndividual
Role
Member of the Board of Directors
CFO, Chief Accounting Officer
Shares144.51
Max PriceUS$13.84
BuyUS$23,73518 Dec 19
Michael Landy
EntityIndividual
Role
Chief Executive Officer
CEO, President & Executive Director
Shares1,635
Max PriceUS$14.54
BuyUS$1,50018 Dec 19
Katie Rytter
EntityIndividual
Role
Controller
Controller
Shares105.71
Max PriceUS$14.19
BuyUS$2,00018 Dec 19
Michael Landy
EntityIndividual
Role
Chief Executive Officer
CEO, President & Executive Director
Shares140.94
Max PriceUS$14.19
BuyUS$244,00017 Dec 19
UMH Properties, Inc.
EntityCompany
Shares17,195.21
Max PriceUS$14.19
BuyUS$2,00017 Dec 19
Kevin Miller
EntityIndividual
Role
Member of the Board of Directors
CFO, Chief Accounting Officer
Shares140.94
Max PriceUS$14.19
BuyUS$2,00018 Nov 19
Michael Landy
EntityIndividual
Role
Chief Executive Officer
CEO, President & Executive Director
Shares142.55
Max PriceUS$14.03
BuyUS$2,00018 Nov 19
Kevin Miller
EntityIndividual
Role
Member of the Board of Directors
CFO, Chief Accounting Officer
Shares142.55
Max PriceUS$14.03
BuyUS$2,00016 Oct 19
Michael Landy
EntityIndividual
Role
Chief Executive Officer
CEO, President & Executive Director
Shares145.56
Max PriceUS$13.74
BuyUS$2,00016 Oct 19
Kevin Miller
EntityIndividual
Role
Member of the Board of Directors
CFO, Chief Accounting Officer
Shares145.56
Max PriceUS$13.74
BuyUS$14,36030 Sep 19
Gregory Otto
EntityIndividual
Shares1,000
Max PriceUS$14.36
BuyUS$9,94423 Sep 19
Michael Landy
EntityIndividual
Role
Chief Executive Officer
CEO, President & Executive Director
Shares700
Max PriceUS$14.21
BuyUS$5,00018 Sep 19
Michael Landy
EntityIndividual
Role
Chief Executive Officer
CEO, President & Executive Director
Shares364.96
Max PriceUS$13.70
BuyUS$2,00018 Sep 19
Kevin Miller
EntityIndividual
Role
Member of the Board of Directors
CFO, Chief Accounting Officer
Shares145.99
Max PriceUS$13.70
BuyUS$244,00118 Sep 19
UMH Properties, Inc.
EntityCompany
Shares17,810.29
Max PriceUS$13.70
BuyUS$13,13028 Aug 19
Michael Landy
EntityIndividual
Role
Chief Executive Officer
CEO, President & Executive Director
Shares1,000
Max PriceUS$13.13
BuyUS$20,64319 Aug 19
Stephen Wolgin
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares1,570
Max PriceUS$13.15
BuyUS$2,00016 Aug 19
Kevin Miller
EntityIndividual
Role
Member of the Board of Directors
CFO, Chief Accounting Officer
Shares158.73
Max PriceUS$12.60
BuyUS$5,00016 Aug 19
Michael Landy
EntityIndividual
Role
Chief Executive Officer
CEO, President & Executive Director
Shares396.83
Max PriceUS$12.60
BuyUS$20,00016 Aug 19
Allison Nagelberg
EntityIndividual
Shares1,587.3
Max PriceUS$12.60
BuyUS$2,00016 Jul 19
Michael Landy
EntityIndividual
Role
Chief Executive Officer
CEO, President & Executive Director
Shares152.09
Max PriceUS$13.15
BuyUS$2,00016 Jul 19
Kevin Miller
EntityIndividual
Role
Member of the Board of Directors
CFO, Chief Accounting Officer
Shares152.09
Max PriceUS$13.15
BuyUS$21,36420 Jun 19
Michael Landy
EntityIndividual
Role
Chief Executive Officer
CEO, President & Executive Director
Shares1,500
Max PriceUS$14.25
BuyUS$50019 Jun 19
Katie Rytter
EntityIndividual
Role
Controller
Controller
Shares38.02
Max PriceUS$13.15
BuyUS$2,00019 Jun 19
Kevin Miller
EntityIndividual
Role
Member of the Board of Directors
CFO, Chief Accounting Officer
Shares152.09
Max PriceUS$13.15
BuyUS$244,00019 Jun 19
UMH Properties, Inc.
EntityCompany
Shares18,555.13
Max PriceUS$13.15
BuyUS$2,00018 Jun 19
Michael Landy
EntityIndividual
Role
Chief Executive Officer
CEO, President & Executive Director
Shares152.09
Max PriceUS$13.15
BuyUS$2,00017 May 19
Michael Landy
EntityIndividual
Role
Chief Executive Officer
CEO, President & Executive Director
Shares149.59
Max PriceUS$13.37
BuyUS$2,00017 May 19
Kevin Miller
EntityIndividual
Role
Member of the Board of Directors
CFO, Chief Accounting Officer
Shares149.59
Max PriceUS$13.37
BuyUS$2,00016 Apr 19
Michael Landy
EntityIndividual
Role
Chief Executive Officer
CEO, President & Executive Director
Shares155.76
Max PriceUS$12.84
BuyUS$10,00016 Apr 19
Neal Herstik
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares778.82
Max PriceUS$12.84
BuyUS$2,00016 Apr 19
Kevin Miller
EntityIndividual
Role
Member of the Board of Directors
CFO, Chief Accounting Officer
Shares155.76
Max PriceUS$12.84
BuyUS$27,67519 Mar 19
Michael Landy
EntityIndividual
Role
Chief Executive Officer
CEO, President & Executive Director
Shares2,100
Max PriceUS$13.18
BuyUS$2,00018 Mar 19
Michael Landy
EntityIndividual
Role
Chief Executive Officer
CEO, President & Executive Director
Shares158.73
Max PriceUS$12.60
BuyUS$2,00018 Mar 19
Kevin Miller
EntityIndividual
Role
Member of the Board of Directors
CFO, Chief Accounting Officer
Shares158.73
Max PriceUS$12.60
BuyUS$244,00018 Mar 19
UMH Properties, Inc.
EntityCompany
Shares19,365.08
Max PriceUS$12.60
BuyUS$2,00019 Feb 19
Kevin Miller
EntityIndividual
Role
Member of the Board of Directors
CFO, Chief Accounting Officer
Shares153.73
Max PriceUS$13.01
BuyUS$2,00019 Feb 19
Michael Landy
EntityIndividual
Role
Chief Executive Officer
CEO, President & Executive Director
Shares153.73
Max PriceUS$13.01

Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 18.8%.


Management Team

  • Eugene Landy (85yo)

    Founder & Chairman

    • Tenure: 52yrs
    • Compensation: US$68.00k
  • Michael Landy (57yo)

    CEO, President & Executive Director

    • Tenure: 6.8yrs
    • Compensation: US$1.48m
  • Kevin Miller (49yo)

    CFO, Chief Accounting Officer

    • Tenure: 2.6yrs
    • Compensation: US$748.00k
  • Katie Rytter

    Controller

    • Rich Molke

      Vice President of Asset Management

      • Mike Prashad

        Secretary & General Counsel

        • Tenure: 0.08yrs
      • Laura Teman

        Assistant Controller

        • Becky Coleridge

          Vice President of Investor Relations

          • Tenure: 1yrs

        Board Members

        • Eugene Landy (85yo)

          Founder & Chairman

          • Tenure: 52yrs
          • Compensation: US$68.00k
        • Samuel Landy (59yo)

          Non-Executive Non-Independent Director

          • Tenure: 31yrs
          • Compensation: US$73.00k
        • Daniel Cronheim (65yo)

          Independent Director

          • Tenure: 31yrs
          • Compensation: US$73.00k
        • Matthew Hirsch (60yo)

          Independent Director

          • Tenure: 19.5yrs
          • Compensation: US$79.00k
        • Neal Herstik (60yo)

          Independent Director

          • Tenure: 15.8yrs
          • Compensation: US$73.00k
        • Michael Landy (57yo)

          CEO, President & Executive Director

          • Tenure: 6.8yrs
          • Compensation: US$1.48m
        • Steve Wolgin (65yo)

          Independent Director

          • Tenure: 16.4yrs
          • Compensation: US$77.00k
        • Catherine Elflein (58yo)

          Independent Director

          • Tenure: 12.3yrs
          • Compensation: US$78.00k
        • Kevin Miller (49yo)

          CFO, Chief Accounting Officer

          • Tenure: 2.6yrs
          • Compensation: US$748.00k
        • Brian Haimm (50yo)

          Lead Independent Director

          • Compensation: US$79.00k

        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
        • Exchange: NYSE
        • Founded: 1968
        • Industry: Industrial REITs
        • Sector: Real Estate
        • Market Cap: US$1.433b
        • Shares outstanding: 96.98m
        • 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 Analysis2020/01/23 23:51
        End of Day Share Price2020/01/23 00:00
        Earnings2019/09/30
        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.