FREEHOLD, N.J., Aug. 10 /PRNewswire-FirstCall/ -- Monmouth Capital Corporation reported net income of $374,000 or $.08 per share for the six months ended June 30, 2006, as compared to $802,000 or $0.21 per share for the six months ended June 30, 2005.
A summary of significant financial information for the three and six months ended June 30, 2006 and 2005 is as follows:
Three Months Ended June 30,
2006 2005
Rental Income and Reimbursements $1,553,000 $1,305,000
Interest and Dividend Income $180,000 $217,000
Gain (Loss) on Securities Transactions, net $67,000 $(23,000)
Total Expenses $1,559,000 $1,328,000
Net Income $175,000 $153,000
Net Income Per Share - Basic & Diluted $.03 $.04
FFO (1) $531,000 $341,000
FFO Per Share (1) $.10 $.09
Weighted Avg. Shares Outstanding 5,067,000 3,943,000
Six Months Ended June 30,
2006 2005
Rent and Occupancy Charges $2,978,000 $2,366,000
Interest and Dividend Income $362,000 $474,000
Gain on Securities Transactions, net $224,000 $445,000
Total Expenses $3,047,000 $2,384,000
Net Income $374,000 $802,000
Net Income Per Share - Basic $.08 $.21
Net Income Per Share - Diluted $.08 $.20
FFO (1) $1,082,000 $1,162,000
FFO Per Share (1) $.22 $.30
Weighted Avg. Shares Outstanding 4,912,000 3,892,000
A summary of significant balance sheet information for June 30, 2006 and December 31, 2005 is as follows:
June 30, December 31, 2006 2005 Total Real Estate Investments $54,329,000 $54,609,000 Securities Available for Sale $7,767,000 $8,107,000 Total Assets $70,557,000 $69,254,000 Mortgages Payable $30,432,000 $30,977,000 Convertible Subordinated Debentures $15,740,000 $15,740,000 Loans Payable $--- $761,000 Total Shareholders' Equity $20,937,000 $18,440,000
Eugene W. Landy, President, stated, "The six-month results were satisfactory. The decline in net income was due mainly to decreased gains on securities transactions and decreased interest and dividend income. Management has decreased the securities portfolio in order to invest in real property. Monmouth Capital Corporation has significant funds to invest in real property acquisitions and our ability to grow earnings depends on our ability to add to our property portfolio. Management is seeking new real property acquisitions in a very competitive market."
Monmouth Capital Corporation is currently operating as a diversified real estate investment trust (REIT), investing in real estate equities, mortgages, mortgage-backed securities and other REIT securities. The Company's equity portfolio consists of eleven industrial properties in Florida, Georgia, Illinois, Minnesota, New Jersey, New York, Pennsylvania, Texas and Virginia.
MONM is part of a family of REITs including UMH Properties, Inc. , which invests in manufactured home communities, and Monmouth Real Estate Investment Corporation , which invests in net-leased industrial properties on long-term leases to investment grade tenants. MONM pursues any real estate opportunities other than the specialized areas of UMH Properties, Inc. and Monmouth Real Estate Investment Corporation.
Notes:
(1) Non-GAAP Information: Funds from operations (FFO), is defined as net income, excluding gains or losses from sales of depreciable assets, plus real estate-related depreciation and amortization. FFO per share is defined as FFO divided by weighted average shares outstanding. FFO and FFO per share should be considered as supplemental measures of operating performance used by real estate investment trusts (REITs). FFO and FFO per share exclude historical cost depreciation as an expense and may facilitate the comparison of REITs which have different cost basis. The items excluded from FFO and FFO per share are significant components in understanding the Company's financial performance.
FFO and FFO per share: (A) do not represent cash flow from operations as defined by generally accepted accounting principles; (B) should not be considered as alternatives to net income as measures of operating performance or to cash flows from operating, investing and financing activities; and (C) are not alternatives to cash flow as a measure of liquidity. FFO and FFO per share, as calculated by the Company, may not be comparable to similarly entitled measures reported by other REITs.
The Company's FFO and FFO per share for the three and six months ended June 30, 2006 and 2005 are calculated as follows:
Three Months Six Months
6/30/06 6/30/05 6/30/06 6/30/05
Net Income $175,000 $153,000 $374,000 $802,000
Depreciation Expense 306,000 188,000 606,000 360,000
Amortization of In-Place
Lease Intangible Assets 50,000 0 102,000 0
FFO $531,000 $341,000 $1,082,000 $1,162,000
Weighted Avg. Shares
Outstanding 5,067,000 3,943,000 4,912,000 3,892,000
FFO Per Share $.10 $.09 $.22 $.30
The following are the cash flows provided (used) by operating, investing and financing activities for the six months ended June 30, 2006 and 2005:
2006 2005
Operating Activities $1,168,000 $525,000
Investing Activities (798,000) (6,062,000)
Financing Activities 628,000 6,850,000
