Q4 2019 Earnings Call
What recovery in occupancy since the fiscal year end to positively contribute to pershare earnings and cash flow going forward.
Renter reimbursement revenues for the quarter were $40.6 million compared to $36.6 million or an increase of 10.9% from the prior year.
<unk> operating income increased $3.4 million to $33.6 million for the quarter, reflecting and 11.4% increase from the comparable period a year ago.
This increase was due to the additional income related to the seven properties purchase during fiscal 2018, and the three properties purchase during fiscal 2019.
As Michael mentioned earlier, we acquired one brand new property at least the Toyota for 10 years containing 350000 square feet for $25.5 million during the recent quarter.
Same property N.Y. for the three months ended September 30th 2019 decreased slightly by 0.2% on the U.S. got basis and increased slightly by 0.2% on a cash basis.
20 basis point decrease in U.S. gap same property in Hawaii was primarily due to the 80 basis point decrease in St property occupancy.
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The 20 basis point increase in St property cash in Hawaii was primarily due to the increased rent partially offset by the 80 basis point decrease in St property occupancy.
Net income attributable to common shareholders was $22.7 million for the quarter as compared to $7.8 million in the previous year, representing a 14.9 million dollar increase.
This increase in our net income attributable to common shareholders was mostly due to the accounting rule change in which unrealized gains and losses on a securities investments not reflected on our income statement.
Tried to the adoption of this accounting rule change unrealized gains and losses were reflected as a change in stockholders' equity.
Excluding the effect of this accounting rule change related to the $14 million and unrealized gains on our securities portfolio. During a fourth quarter net income attributable to comment shareholders would've been $8.7 million for the current color compared to $7.8 million for the prior year quarter, representing at 11.8% increase.
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I would now like to cover the financial results for the full fiscal year.
F.F., all which excludes unreleased securities gains or losses for the full fiscal year 2019 was $81.2 million or 87 cents per diluted share as compared to $69.8 million or 89 cents per diluted share for the same period, a year ago, representing a decrease in F.F. all per share of two cents.
<unk>, which excludes securities gains or losses was 85 cents per diluted share for fiscal 2019, as compared to 87 cents, but they looted share a year ago, representing a year over year decrease of two cents.
Rental reimbursement revenues for the year or $158.5 million compared to $139.2 million or an increase of 13.9% from the prior year.
Net operating income increased $16.4 million to $131.2 million for the year, reflecting a 14.3% increase from the comparable period a year ago.
Net income attributable to common shareholders was $11 million for the full year as compared to $38.8 million in the previous year, representing a 27.8 million dollar decrease.
Excluding effectively accounting rule change related to unrealized loss on a securities portfolio and excluding the pro years nonrecurring realize gain on the sail from for industrial properties, and probably a year or non recurring realize gain on sales or marketable securities net income attributable to common shareholders would've been 35.
When $7 million for the current year.
The $31.2 million for the pro year, representing a 14.4% increase from the per year.
Same property analyzed for the 12 months ended September 30th 2019 decreased slightly by 0.8% on the U.S. gap basis, and 0.3% on a cash basis. The 80 basis point decrease in U.S. gap same property N.Y. and the 30 basis point decrease in St property cash in Hawaii will primarily due to the 90 basis point decrease.
And same property occupancy, partially offset by increased rent.
As in the end of the fiscal year or capital structure consisted of approximately $840 million in debt of which $745 million was property level fixed rate mortgage that and $95 million for loans payable.
89% of on mortgages and loans payable are fixed rate with the weighted average interest rate of 4% as compared to 4.1% and the per year.
We also had a total of $348 million and perpetual preferred equity at year end.
Combined with an equity market capitalization of approximately $1.4 billion. Our total market capitalization was approximately $2.6 billion at year end, representing a 1% increase from a year ago.
From a credit standpoint, we continue to be conservatively capitalized with our net debt the total market capitalization at 32% and our net that plus preferred equity to total market capitalization at 45% a year end.
For the fourth quarter ended September 30th 2019 fix charge coverage was 2.4 times and our net that two adjusted EBITDA was meaningfully reduced from 7.1 times and the prior year period to 5.9 times I fiscal year end.
[noise] from a liquidity standpoint, we end of the year with $20.2 million in cash and cash equivalents as Michael mentioned earlier subsequent to the fiscal year end, we amended our unsecured line of credit facility, increasing the maximum availability of our evolva from $200 million to $225 million with an additional.
100 million dollar according feature bringing the total potential availability up to $325 million.
In addition demanded credit facility extended the maturity date of all revolver from September 2020 to January 2024 with options to extend further.
Furthermore, the amended facility was enhanced with the 75 million dollar term loan, which matures January 2025, resulting in the total potential availability on the both the revolver end the term loan of up to $300 million and up to $400 million, including the 100 million dollar accordion feature.
The amended line of credit and the new term loan increases are borrowing capacity extends all maturity and depending on our leverage ratios reduces all borrowing rates by a range of five to 35 basis points.
The Revolvo currently best interest at an interest rate or 3.21%.
Currently have $215 million available under our new revolver as well as an additional $100 million potentially available from the accordion feature.
To reduce cloning interest rate exposure on our term loan we entered into an interest rate swap agreement to fix live or on the entire $75 million for the full duration of the term loan which is at an all in interest rate of 2.92%.
This year, we fully repaid a total of five loans associated with five properties with on advertise balances totaling $12.5 million, which unencumbered approximately $100 million worth of properties.
Continued substantial growth of our unencumbered asset pool enhances our financial flexibility and further strengthens already strong credit profile.
Fiscal year end, we have $185.3 million in marketable read securities representing 8.7% of our Undepreciated assets. This compares to balance of $154.9 million held at the end of the prior year.
At year end, our read securities investments reflected $49.4 million in unrealized losses, as compared to $24.7 million a year ago.
During the year, we earn dividend income from our securities portfolio or $15.1 million as compared to $13.1 million in fiscal 2018.
The performance of of Securities portfolio improved substantially during the quarter and continue to improve subsequent to the quarter end.
Historically, we have aim to limit the size of our read securities portfolio to know more than approximately 10% or under appreciated assets as we announced earlier. This year. It is now our goal to opportunistically reduce the size of our reach the curious portfolio the ultimately be no more than 5% or under appreciated assets.
There have been no open market purchases all sales of read securities. Since this announcement was made and now let me turn it back to Michael before we open up the call for questions.
Thanks, Kevin despite it very competitive market Monmouth has been very successful and sourcing high quality acquisitions and generating qualitative growth. We closed the large acquisition leads to Amazon subsequent to our fiscal year end and with the long term lease up of our building in Richmond, Virginia, We recently increased our portfolio.
She rate back over 99%.
We have a substantial 1 million square foot acquisition pipeline in place, which we expect to increase further and this will help driver performance going forward.
Strength in our already strong balance sheet, and example capital to fund our future growth.
Would now be happy to take your questions.
We will now began a question and answer session.
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If you're using a speaker phone please pick up your handset for pressing the key.
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