Industrial REIT Monmouth Funding Acquisitions Through Substantial Cash Flow

Michael Landy, president and CEO of Monmouth Real Estate Investment Corp. (NYSE: MNR), joined REIT.com for a CEO Spotlight video interview at NAREIT's 2017 Washington Leadership Forum at The Hay-Adams.

Landy explained that Monmouth’s upward trend in adjusted funds from operations (AFFO) has been achieved through the acquisition of class-A, build-to-suit properties, which are 100 percent occupied.

Earnings above and beyond Monmouth’s dividend requirement are the company’s cheapest source of capital, according to Landy.

“We’ve been able to build up substantial cash flow. We’ve been on a virtuous cycle and generating double-digit per-share earnings growth for the last several years,” he noted.

Landy said the continued demand for industrial space reflects the ongoing migration to e-commerce.

Landy also reflected on his previous experience in the music industry and its relevance to his role today with Monmouth.

As the chief engineer and technical director of GRP Records, Landy noted that he was involved with the introduction of digital recording to the industry. His insight and experience gained at GRP helped Monmouth anticipate the digital revolution in the industrial segment “sooner than most,” according to Landy.