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MONMOUTH REAL ESTATE INVESTMENT CORPORATION ANNOUNCES EXPANSION PLANS AND PROPERTY ACQUISITION

 EATONTOWN, N.J., Nov. 30 ~PRNewswire~ -- Eugene W. Landy, president of Monmouth Real Estate Investment Corporation (NASDAQ: MNRTA), a real estate investment trust, announced plans to expand the company. Monmouth Real Estate Investment Corporation (MREIC) is planning approximately $15,000,000 in acquisitions which would double the property holdings of the company. MREIC intends to liquidate most of its $12,000,000 mortgage portfolio and use the proceeds to acquire real estate properties. The company is bullish on a turn-around in the economy and in the real estate market in particular.
 MREIC announced the closing of its first acquisition. The company has purchased a distribution center in Orange County, N.Y., from Reynolds Metal Development Corporation. This 50,400-square-foot facility, which was built in 1990, was purchased for $3,650,000. The facility is the regional distribution center for Keebler Corporation, a major producer of bakery products. Keebler Corporation is a division of United Biscuit Company. Financing of the transaction was placed through United Jersey Bank~Central N.A. The David Cronheim Company, Chatham, N.J., and Rockland Realty, Spring Valley, N.Y., were brokers in the transaction.
 Mr. Landy stated that the acquisition represented an opportunity for MREIC to finance net-leased properties at an interest cost substantially below the return on the properties. "The availability of positive earnings on leveraged acquisitions makes it possible for MREIC to expand its portfolio with a positive impact on earnings and funds from operations." Mr. Landy further stated that other acquisitions were in advanced stages of negotiations. Acquisitions will be announced only on the actual closings of the transactions.
 MREIC has successfully avoided the real estate problems of the last five years by concentrating on well-secured mortgages during that period. The decision to switch from mortgages to equities represents management's decision that equity properties will yield a greater amount than mortgages over the next decade.
 Monmouth Real Estate Investment Corporation was formed in 1968. The company is headquartered in Eatontown.
 -0- 11~30~92
 ~CONTACT: Rosemarie Faccone of MREIC, 908-542-4927~
 (MNRTA)


CO: Monmouth Real Estate Investment Corporation ST: New Jersey IN: FIN SU:

GK-SH -- NY044 -- 1963 11~30~92 13:51 EST
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Publication:PR Newswire
Date:Nov 30, 1992
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