Monmouth Real Estate Announces Review of Strategic Alternatives
January 14 2021 - 4:42PM
Monmouth Real Estate Investment Corporation (NYSE:MNR) (“Monmouth”
or the “Company”) today announced that its Board of Directors
(the “Board”), working together with its legal and financial
advisors, has unanimously decided to explore strategic alternatives
to maximize stockholder value.
The Board intends to consider the full range of
available alternatives including a potential sale or merger of the
Company. Monmouth has retained J.P. Morgan to work collaboratively
with CS Capital Advisors to assist and advise the Board in its
strategic review. The Company noted that there can be no assurance
that the exploration of strategic alternatives will result in any
transaction. Brian Haimm, Monmouth’s Lead Independent Director,
said, “We are undertaking a comprehensive and thorough review of
all available alternatives, and our Board and management are
committed to taking the appropriate and necessary actions to
further enhance value for Monmouth stockholders.”
The Board does not intend to disclose further
developments unless and until it approves a specific action or
otherwise concludes the review of strategic alternatives.
The Board, after review and consideration with
the assistance of CS Capital Advisors and Venable, has also
determined that the non-binding, unsolicited and conditional
proposal sent on December 18, 2020, by Blackwells to acquire the
Company for $18.00 per share is not in the best interest of the
Company.
In light of its consideration of strategic
alternatives, the Board has determined to suspend the Company’s
Dividend Reinvestment and Stock Purchase Plan (the “Plan”),
effective immediately. As a result, stockholders will receive
dividends in cash effective with the dividend currently scheduled
to be paid on March 15, 2021. If Monmouth reinstates the Plan in
the future, stockholders that remain enrolled at reinstatement will
automatically resume participation in the Plan.
Venable LLP is serving as Monmouth’s legal
counsel, and CS Capital Advisors and J.P. Morgan are acting as the
Company’s financial advisors.
About Monmouth Real
EstateMonmouth Real Estate Investment Corporation, founded
in 1968, is one of the oldest public equity REITs in the world. The
Company specializes in single tenant, net-leased industrial
properties, subject to long-term leases, primarily to
investment-grade tenants. Monmouth Real Estate Investment
Corporation is a fully integrated and self-managed real estate
company, whose property portfolio consists of 121 properties
containing a total of approximately 24.5 million rentable square
feet, geographically diversified across 31 states. The Company’s
occupancy rate as of this date is 99.7%.
Forward-Looking StatementThis
press release contains forward-looking statements within the
meaning of Section 27A of the Securities Act of 1933, as amended,
Section 21E of the Securities Exchange Act of 1934, as amended, and
the Private Securities Litigation Reform Act of 1995.
Forward-looking statements provide the Company’s current
expectations or forecasts of future events. Forward-looking
statements include statements about the Company’s expectations,
beliefs, intentions, plans, objectives, goals, strategies, future
events, performance and underlying assumptions and other statements
that are not historical facts. You can identify forward-looking
statements by their use of forward-looking words, such as “may,”
“will,” “anticipate,” “expect,” “believe,” “intend,” “plan,”
“should,” “seek” or comparable terms, or the negative use of those
words, but the absence of these words does not necessarily mean
that a statement is not forward-looking. The forward-looking
statements are based on the Company’s beliefs, assumptions and
expectations of its future performance, taking into account all
information currently available to it. Forward-looking statements
are not predictions of future events. These beliefs, assumptions
and expectations can change as a result of many possible events or
factors, not all of which are known to the Company. Some of these
factors are described under the headings “Risk Factors” and
“Management’s Discussion and Analysis of Financial Condition and
Results of Operations” as included in the Company’s Annual Report
on Form 10-K for the fiscal year ended September 30, 2020 and its
other periodic reports filed with the Securities and Exchange
Commission, which are accessible on the Securities and Exchange
Commission’s website at www.sec.gov. These factors should not
be construed as exhaustive and should be read in conjunction with
other cautionary statements that are included in the filings. These
and other risks, uncertainties and factors could cause the
Company’s actual results to differ materially from those included
in any forward-looking statements it makes. Any forward-looking
statement speaks only as of the date on which it is made. New risks
and uncertainties arise over time, and it is not possible for the
Company to predict those events or how they may affect it. Except
as required by law, the Company is not obligated to, and does not
intend to, update or revise any forward-looking statements, whether
as a result of new information, future events or otherwise. You
should not place undue reliance on these forward-looking
statements, as events described or implied in such statements may
not occur.
Contacts:
InvestorsBecky Coleridge732-810-0907
Bruce Goldfarb / Chuck Garske /Teresa HuangOkapi
Partners212-297-0720info@okapipartners.com
MediaAndrew Siegel / Jim GoldenJoele
Frank212-355-4449
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