Mike Landy, president and CEO of Monmouth Real Estate Investment Corp. (NYSE: MNR), joined REIT.com for a CEO Spotlight video interview at NAREIT’s 2016 Washington Leadership Forum at the St. Regis Hotel in Washington, D.C.
Monmouth specializes in industrial properties that are subject to long-term leases, primarily to investment grade tenants. The company recently reported record quarterly results.
“Demand for high quality industrial properties continues to be very strong,” noted Landy. He explained that Monmouth has positioned itself to benefit from broad links to e-commerce related activity, “and today we are seeing the fruit of our labor.”
The REIT’s portfolio is 99.5 percent occupied, leasing spreads are positive, the tenant retention rate was 100 percent last year and 2016 is shaping up to be a 100 percent retention year as well, Landy observed.
“Given the increased online spending, I anticipate very strong demand for modern industrial buildings for the foreseeable future,” Landy said.
Landy pointed to a continued shift in consumer spending habits. Since the turn of the century, he noted, the United States economy has been growing at a rate of 1.7 percent, whereas e-commerce has been growing at an annual rate of 15 percent.
“For Monmouth, it’s a very exciting time and it’s presenting us with tremendous opportunities to grow,” Landy said.
Landy also commented on Monmouth’s solid dividend track record.
REIT dividends have been a key factor in the outperformance of the sector over the long term, he said. Monmouth only leases to investment grade tenants, “therefore we deliver a dividend that’s secured by very high-quality income streams,” he said. Landy stressed that Monmouth has maintained or increased its dividend for 24 consecutive years.
“Today our dividend is yielding approximately 50 percent more than the average REIT dividend, so Monmouth shares represent tremendous value,” he said.