Mike Landy, president and CEO of Monmouth Real Estate Investment Corp. (NYSE: MNR), participated in a video interview in conjunction with Nareit’s REITworld: 2020 Annual Conference.
Landy noted that demand is running ahead of capacity in the logistics sector as a result of the ramp-up in e-commerce activity during the pandemic. The total logistics network in the U.S. can handle about 80 million packages a day, and it’s estimated that this holiday season demand will be 10%-20% above that, he said.
“We’re working with our tenants to enhance their capacity,” Landy said.
Landy noted that over 80% of the REIT’s revenue is secured from investment grade tenants, “so it’s important that we have high tenant retention.” For 2021, Monmouth is aiming for 100% tenant retention, he said.
Meanwhile, Landy noted that Monmouth is growing steadily. “We have a pipeline of about $340 million in acquisitions, all leased to investment grade tenants,” he said.