Initial annual base rate
$510,000
$6.80 per square foot on 75,000 square feet. Billable from after the free-rent months.
M1, Item 2, FY2021 New and Renewed Leases, p. 24, Halfmoon lease paragraph, published 2021-11-12
Art. A Conclusion
- Known schedule, not cash. For the eleven months the filing fixes, scheduled billable base rent totals $272,333.33: $85,000 across the seven exact-filed months (five free months at $0, then April and May at $42,500 each) plus $187,333.33 for July to October at the approximately $562,000 post-expansion annual rate. No invoice or receipt is in the packet.
- June is unresolved. The parking step took effect on , inside the month, and the filing does not say how June was invoiced. Conditional range $42,500 to $46,833.33, kept outside the subtotal.
- Summary, not instrument. Every Halfmoon term here is Monmouth's description in its Form 10-K. The signed lease, the parking amendment, the rent roll and bank records are absent.
- Parking step. Approximately $52,000 of added annual rent on approximately $835,000 of capital cost: 6.23% gross rent to cost, not an NOI yield.
- Financing is capacity, not a draw. ILPT's $4.0B bridge commitment is a ceiling. The funded balance at the presentation date is not disclosed and the final rate is not disclosed. Hypothetically, each +100 bp move changes annual interest by $10,000 per $1M of assumed drawn floating-rate principal.
- Limits. The packet cannot prove Halfmoon NOI or an acquisition value. The excerpts are evidence, not a broker price.
Art. B Billable base rent schedule
| Month | Status | Annual contractual base rate | Scheduled billable base rent for month | Cash received | Uncertainty | Source |
|---|---|---|---|---|---|---|
| Free rent | $0 | $0 | Not in packet | Known: inside the free-rent period that began on the lease effective date; scheduled base rent is zero. No concession ledger is in the packet. | M1, Item 2, footnote (9), p. 23, published 2021-11-12 M1, Item 2, FY2021 New and Renewed Leases, p. 24, Halfmoon lease paragraph, published 2021-11-12 | |
| Free rent | $0 | $0 | Not in packet | Known: inside the free-rent period that began on the lease effective date; scheduled base rent is zero. No concession ledger is in the packet. | M1, Item 2, footnote (9), p. 23, published 2021-11-12 M1, Item 2, FY2021 New and Renewed Leases, p. 24, Halfmoon lease paragraph, published 2021-11-12 | |
| Free rent | $0 | $0 | Not in packet | Known: inside the free-rent period that began on the lease effective date; scheduled base rent is zero. No concession ledger is in the packet. | M1, Item 2, footnote (9), p. 23, published 2021-11-12 M1, Item 2, FY2021 New and Renewed Leases, p. 24, Halfmoon lease paragraph, published 2021-11-12 | |
| Free rent | $0 | $0 | Not in packet | Known: inside the free-rent period that began on the lease effective date; scheduled base rent is zero. No concession ledger is in the packet. | M1, Item 2, footnote (9), p. 23, published 2021-11-12 M1, Item 2, FY2021 New and Renewed Leases, p. 24, Halfmoon lease paragraph, published 2021-11-12 | |
| Free rent | $0 | $0 | Not in packet | Known: inside the free-rent period that began on the lease effective date; scheduled base rent is zero. No concession ledger is in the packet. | M1, Item 2, footnote (9), p. 23, published 2021-11-12 M1, Item 2, FY2021 New and Renewed Leases, p. 24, Halfmoon lease paragraph, published 2021-11-12 | |
| Base rent | $510,000 | $42,500 | Not in packet | Known rate as filed: one twelfth of the initial annual rent. Invoicing and receipt are not evidenced. | M1, Item 2, FY2021 New and Renewed Leases, p. 24, Halfmoon lease paragraph, published 2021-11-12 | |
| Base rent | $510,000 | $42,500 | Not in packet | Known rate as filed: one twelfth of the initial annual rent. Invoicing and receipt are not evidenced. | M1, Item 2, FY2021 New and Renewed Leases, p. 24, Halfmoon lease paragraph, published 2021-11-12 | |
| Parking step month | Not fixed | Unknown conditional $42,500 to $46,833.33 | Not in packet | Unknown: the parking step took effect mid-month and the filing does not state how June was invoiced or prorated. Conditional range only. | M1, Item 2, Completed Expansions, p. 23, published 2021-11-12 M1, Item 2, FY2021 New and Renewed Leases, p. 24, Halfmoon lease paragraph, published 2021-11-12 | |
| Base plus parking | approx. $562,000 | $46,833.33 | Not in packet | Known at the filed approximate post-expansion rate. The filed per square foot figure implies a slightly higher amount. No receipt in packet. | M1, Item 2, Completed Expansions, p. 23, published 2021-11-12 | |
| Base plus parking | approx. $562,000 | $46,833.33 | Not in packet | Known at the filed approximate post-expansion rate. The filed per square foot figure implies a slightly higher amount. No receipt in packet. | M1, Item 2, Completed Expansions, p. 23, published 2021-11-12 | |
| Base plus parking | approx. $562,000 | $46,833.33 | Not in packet | Known at the filed approximate post-expansion rate. The filed per square foot figure implies a slightly higher amount. No receipt in packet. | M1, Item 2, Completed Expansions, p. 23, published 2021-11-12 | |
| Base plus parking | approx. $562,000 | $46,833.33 | Not in packet | Known at the filed approximate post-expansion rate. The filed per square foot figure implies a slightly higher amount. No receipt in packet. | M1, Item 2, Completed Expansions, p. 23, published 2021-11-12 |
Exact-filed months
$85,000
seven months, to the end of May
Approximate-rate months
$187,333.33
four months at approximately $562,000 a year
Known-month subtotal
$272,333.33
eleven months; schedule, not cash
Incomplete month, kept separate
June unknown
conditional $42,500 to $46,833.33
Hand check: $510,000 divided by twelve is $42,500; April and May give $85,000, and the free months add $0. $562,000 times four, divided by twelve, is $187,333.33. Together: $272,333.33. Adding the four displayed July to October amounts instead gives $272,333.32, one cent less, because each displayed month is rounded; the filing gives no invoice rounding convention. If June is included at either endpoint, the twelve-month schedule would be $314,833.33 to $319,166.67, conditional, never a finding.
Free-rent period: through , five months, consistent with initial rent commencing (M1, Item 2, FY2021 New and Renewed Leases, p. 24, Halfmoon lease paragraph, published 2021-11-12). At the initial rate the abated base rent is $212,500, a concession size, not a cash flow.
Art. C Six rent measures that are not interchangeable
Current base rate after parking step
approx. $562,000
From . The filing prints $7.50 per square foot, which times the area is $562,500; the dollar figure divided by the area is $7.49. The schedule uses the dollar figure and labels it approximate.
M1, Item 2, Completed Expansions, p. 23, published 2021-11-12
Property-schedule annualized rent
$595,000
Fiscal year-end property schedule column, as of 2021-09-30, rounded by the filing. Its derivation is not stated in the excerpt. It is neither a monthly billing rate nor cash.
M1, Item 2, property schedule, pp. 21-23, published 2021-11-12
Stated straight-line annual rent
$541,000
$7.21 per square foot over the life of the original lease, before the parking step. A GAAP average that spreads the free rent and escalations, not a billing rate.
M1, Item 2, FY2021 New and Renewed Leases, p. 24, Halfmoon lease paragraph, published 2021-11-12
Remaining-term annualized rent
approx. $622,000
$8.29 per square foot, described from the parking date to expiry on . Not current cash rent at the audit date.
M1, Item 2, Completed Expansions, p. 23, published 2021-11-12
Former lease benchmark
$574,000
Former straight-line rent ($7.65 per square foot); former cash rent $8.19 per square foot. Filed decreases: 5.8% straight-line, 17.0% cash.
M1, Item 2, FY2021 New and Renewed Leases, p. 24, Halfmoon lease paragraph, published 2021-11-12
Arithmetic tie-outs against the filing
| Test | Computed | Filed | Result |
|---|---|---|---|
| Initial rent plus parking increase | $562,000 | $562,000 | ties |
| Initial rent divided by area | $6.80 | $6.80 | ties |
| Straight-line rent divided by area | $7.21 | $7.21 | ties |
| Post-expansion rent divided by area | $7.49 | $7.50 | does not tie |
| Filed post-expansion rate per square foot times area | $562,500 | $562,000 | does not tie |
| Remaining-term rent divided by area | $8.29 | $8.29 | ties |
| Former straight-line rent divided by area | $7.65 | $7.65 | ties |
| Former minus new straight-line rent | $33,000 | $33,000 | ties |
| Straight-line decrease from dollar amounts | 5.7% | 5.8% | does not tie |
| Straight-line decrease from per square foot amounts | 5.8% | 5.8% | ties |
| Cash decrease from per square foot amounts | 17.0% | 17.0% | ties |
| Lease months divided by twelve | 10.4 | 10.4 | ties |
Redline notes: the post-expansion per square foot figure does not tie to the dollar figure; the straight-line decrease ties when computed from per square foot amounts but rounds lower from the rounded dollar amounts. Both are rounding effects in a summary, which is why a signed rent schedule is needed.
Escalation steps
Increases of 2.0% a year are filed, but the anniversary day is not. Next step date: unknown. Candidate dates, none filed: (lease anniversary), (commencement anniversary), (parking step anniversary). All fall after the audited window, so none changes these twelve rows. If one step applies to the approximate post-expansion rate, the annual rate would become $573,240, on a date the filing does not fix.
Consistency test over the 125 lease months (original lease, no parking step): stepping on each lease anniversary gives $540,566 a year, which rounds to the filed $541,000; stepping on each commencement anniversary gives $536,098, which does not. Evidence that is consistent with a lease-anniversary step, not proof of it.
Art. D Parking lot expansion
- Effective date
- Capital cost, approximately
- $835,000
- Added annual rent, approximately
- $52,000
- Annual rent to capital cost
- 6.23%
M1, Item 2, Completed Expansions, p. 23, published 2021-11-12
Art. E Acquisition financing as planned, stated
Capacity and plan (facts)
- Committed bridge loan facility
- $4.0B capacity
- Actually drawn at the presentation date
- Not disclosed
- Final borrowing rate
- Not disclosed
- Planned JV equity
- approx. $430M to $1.3B plan
- Property-sale ceiling
- up to $1.6B contingent
- Existing MNR mortgage debt to be assumed
- approx. $409M terms absent
- Total transaction value
- approx. $4.0B
- Consideration per MNR share
- $21.00
- Issuer year-one cash cap rate
- 4.0%
- Issuer GAAP cap rate
- approx. 4.3% (0.3 percentage points above cash)
These approximate headline amounts overlap and depend on one another, so they are listed, not netted into a funding stack. Cap rates are issuer expectations for the whole acquisition, not measured Halfmoon NOI; with no disclosed borrowing rate, the packet cannot show whether leverage is positive or negative.
All rows: M2, Slide 4, transaction overview, published 2021-11-05; cap rates M2, Slide 5, published 2021-11-05.
Rate sensitivity (hypothetical)
A hypothetical +100 bp move (1.00%) would raise annual interest by $10,000 for each $1M of assumed drawn, floating-rate principal held for a full year. Hypothetical only: not a forecast and not recorded interest.
| Hypothetical move | As a rate | Annual interest change per unit |
|---|---|---|
| -100 bp | -1.00% | -$10,000 |
| -50 bp | -0.50% | -$5,000 |
| -25 bp | -0.25% | -$2,500 |
| +25 bp | 0.25% | +$2,500 |
| +50 bp | 0.50% | +$5,000 |
| +100 bp | 1.00% | +$10,000 |
| +150 bp | 1.50% | +$15,000 |
| +200 bp | 2.00% | +$20,000 |
Formula: assumed drawn principal times rate move. Assumes the unit is actually drawn, fully floating, outstanding for a full year, unhedged, with spreads and fees unchanged. Applying it to the bridge capacity would treat a ceiling as a balance, which the packet does not support.
Art. F Open items and the records that would close them
Unknown, kept unknown
- June scheduled billable base rent. Mid-month parking step; invoicing or proration convention not filed.
- Cash received in every month. No invoices, deposits or receipts in the packet.
- Next escalation date. Filing states annual increases without an anniversary day.
- Funded borrowing balance at the November presentation. Presentation discloses commitments and plans, not draws.
- Final borrowing rate. No bridge coupon or pricing grid in the packet.
- Halfmoon NOI and value. No operating expenses, reimbursements or appraisal in the packet.
Cash reconciliation needs
- Executed UPS lease and the parking expansion amendment, with the rent clause, escalation anniversary and any proration language.
- Landlord billing ledger or tenant ledger with every invoice from the lease effective date through the end of the audited window, including the June invoice and any catch-up charge.
- Bank deposit records or lockbox remittance detail matching each invoice.
- Completion certificate or tenant acceptance fixing the parking step date.
- Tenant estoppel certificate confirming rent paid, free-rent use and the current rate.
GAAP reconciliation needs
- Straight-line rent workpaper for both the original lease and the parking step, with the deferred rent receivable roll-forward.
- Capitalized cost ledger for the parking expansion and its depreciation policy.
- Lease intangible and lease value amortization schedules, if any.
- Revenue detail by month tying recognized rent to the general ledger.
Financing needs
- Bridge commitment letter and credit agreement, including pricing grid, benchmark, floors, fees and hedges.
- Funding notices or closing funds flow showing amounts actually drawn and on what date.
- Executed JV agreement and closing statements for property sales.
- Terms of the existing MNR mortgage debt to be assumed.
Art. G Source ledger
| ID | Document | Published | As of | Section | Original | Local copy |
|---|---|---|---|---|---|---|
| M1 | Monmouth FY2021 Form 10-K | 2021-11-12 | 2021-09-30 | Item 2 pp.21-24 property schedules footnote 9 and Completed Expansions | www.sec.gov | monmouth-2021.txt |
| M2 | ILPT acquisition investor presentation | 2021-11-05 | 2021-11-05 | slides 2-5 | s22.q4cdn.com | ilpt-2021.txt |
Access: the frozen packet, published as dated above, read locally on ; web access dates are not recorded in SOURCES.csv. Links open the original publisher pages only when clicked.
Show the M1 excerpt as filed in the packet (Monmouth FY2021 Form 10-K)
MONMOUTH REAL ESTATE INVESTMENT CORPORATION, FY 2021 FORM 10-K
Filed November 12, 2021. Fiscal year ended September 30, 2021.
These are selected faithful excerpts of company disclosures, not executed lease PDFs or evidence of rent actually received. See SOURCES.csv.
Item 2, property schedule, pp. 21-23. The filing prints the annualized rent column rounded to the nearest $1,000; it is restated here in full US dollars:
State | property | tenant | annualized rent (USD) | expiry
NY | Halfmoon (Albany) | United Parcel Service, Inc. | $595,000 | 03/31/31
Item 2, footnote (9), p. 23:
"We simultaneously entered into 10.4 year lease agreement with UPS which became effective 11/1/20. The new lease agreement provided for five months of free rent, after which, initial annual rent was $510,000, with 2.0% annual increases thereafter, resulting in a straight-line annualized rent of $541,000 over the life of the lease which matures 3/31/31."
Item 2, building schedule, p. 21: Halfmoon (Albany) (UPS), Industrial, 75,000 square feet.
Item 2, Completed Expansions, p. 23:
"In addition, effective June 4, 2021, we completed a parking lot expansion for UPS at our property located in Halfmoon (Albany), NY for a cost of approximately $835,000, resulting in an initial increase in annual rent effective on the date of completion of approximately $52,000 from approximately $510,000, or $6.80 per square foot, to approximately $562,000, or $7.50 per square foot. Furthermore, annual rent will continue to increase each year by 2.0% resulting in an annualized rent from June 4, 2021 through the remaining term of the lease of approximately $622,000, or $8.29 per square foot."
Item 2, FY2021 New and Renewed Leases, p. 24, Halfmoon lease paragraph:
"The lease agreement with UPS provides for five months of free rent, after which, on April 1, 2021, initial annual rent of $510,000, representing $6.80 per square foot, commenced, with 2.0% annual increases thereafter, resulting in a straight-line annualized rent of $541,000, representing $7.21 per square foot over the life of the lease, which expires March 31, 2031. This compares to the former U.S. GAAP straight-line rent of $574,000, representing $7.65 per square foot, and former cash rent of $8.19 per square foot, resulting in a decrease of $33,000, representing a 5.8% decrease on a U.S. GAAP straight-line basis and a decrease of 17.0% on a cash basis."
The filing does not give monthly invoices, collection receipts, the exact intra-June proration convention, the anniversary day of every future escalation, property-level operating expenses or an executed lease copy. Do not transform a rate into a proven payment. The approximately $622,000 is a described remaining-term annualized measure, not November 2021 cash rent.
Show the M2 excerpt as filed in the packet (ILPT acquisition investor presentation)
INDUSTRIAL LOGISTICS PROPERTIES TRUST, ACQUISITION PRESENTATION
Selected faithful excerpts, slide numbers as printed. This is a proposed transaction and financing plan, not final financing.
Slide 2, notes: "references to 'annualized rental revenues' mean the annualized contractual rents, as of September 30, 2021, including straight line rent adjustments and excluding lease value amortization, adjusted for tenant concessions, including free rent and amounts reimbursed to tenants, plus estimated recurring expense reimbursements from tenants (annualized rental revenues may differ from actual historical rental revenues calculated pursuant to U.S. Generally Accepted Accounting Principles (GAAP))".
Slide 3, acquired portfolio: 126 industrial and logistics properties, approximately 26 million rentable square feet, 99.7% occupancy.
Slide 4, transaction overview:
"Consideration of $21.00 per MNR common share."
"Total Transaction value of ~$4.0B, inclusive of MNR contracted acquisitions / expansions and transaction expenses."
"ILPT plans to finance the transaction by entering into a joint venture with one or more institutional investors for equity investments of between approximately $430M and $1.3B."
"The balance of the purchase price will be financed with proceeds of new mortgage debt and the assumption of approximately $409M of existing MNR mortgage debt."
"Depending on the ultimate size of the joint venture equity investments, ILPT may also use proceeds from the sale of up to $1.6B of MNR properties to finance the transaction."
"To ensure ILPT can finance the closing of the transaction, ILPT has secured commitments from lenders for a $4.0B bridge loan facility."
Slide 5: "Year one cash cap rate on this acquisition is 4.0% and the GAAP cap rate is approximately 4.3%." These are ILPT expectations for the acquisition, not measured Halfmoon NOI.
The slides do not disclose an actual borrowing amount or binding bridge coupon at November 2021. Debt balances, property-disposition proceeds, cost of debt, and JV ownership cannot be solved by subtracting these approximate overlapping headline amounts. A committed bridge facility is a capacity ceiling, not funded principal. Label every interest-rate change hypothetical.