Monmouth Growing Through Build-To-Suit Industrial Acquisitions

Michael Landy, president and CEO of Monmouth Real Estate Investment Corp. (NYSE: MNR), joined REIT.com for a video interview at REITWeek 2017: NAREIT’s Investor Forum at the New York Hilton Midtown.

Monmouth owns net-leased industrial real estate assets. Landy said the company has been growing through the acquisition of build-to-suit industrial properties, reflecting solid demand for modern, omnichannel business-to-consumer-type buildings. Landy noted that building age is a key metric for investors to focus on as the digital economy shapes the requirements of modern industrial space.

Since 2011, Monmouth has roughly tripled the size of the company through new build-to-suit acquisitions, Landy said.

Landy also commented on the company’s balance sheet, noting that Monmouth’s 50-year history means it has survived several real estate cycles. Today, the company’s balance sheet is stronger than ever, according to Landy.

Monmouth is taking advantage of the low interest rate environment to fortify its balance sheet, Landy said.  “All our ratios are well in investment-grade territory,” he noted. Landy also added that Monmouth has raised about $211 million in preferred equity.