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Monmouth Assets Witness Solid Occupancy & Rent Collections

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Monmouth Real Estate Investment Corp. (MNR - Free Report) has witnessed solid occupancy of its properties and robust rent-collection figures through March and up till June, indicating the solid demand for mission-critical properties.

The occupancy rate has averaged 99.4% from Mar 1, 2020 through Jun 30, 2020. Rent-collections figures have been robust too with 100% collections in March, 99% in both June and April and 98% in May.

The industrial real estate asset category has grabbed headlines and continues to play a pivotal role, transforming the way how consumers shop and receive their goods. Companies are making efforts to improve supply-chain efficiencies, spurring demand for logistics infrastructure and enabling industrial landlords to enjoy a favorable market environment.

Further, warehouse operations have become more essential, with higher number of e-commerce customers in light of the coronavirus pandemic. Over the long term, apart from the fast adoption of e-commerce, the logistics real estate is anticipated to benefit from a likely increase in inventory levels post crisis. However, the pandemic’s adverse impact on the economy will likely thwart demand for rental space in the near term. Rent relief and deferrals are added concerns.

Amid these, Monmouth Real Estate seems well poised to grow, with focus on single-tenant, net-leased industrial properties on long-term leases, to investment-grade tenants. The company’s portfolio consists of 118 properties, geographically diversified across 31 states and containing 23.4 million rentable square feet of area in total. Its tenant roster includes names like Anheuser-Busch, Beam Suntory, Cardinal Health (CAH - Free Report) , Coca-Cola (KO - Free Report) , FedEx (FDX - Free Report) , and several others.

Shares of Monmouth Real Estate have appreciated 18.4%, outperforming the 8.3% rally of its industry in the quarter-to-date period.


 

Currently, the stock carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

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