Financial Performance - Full year 2024 net income attributable to common stockholders was $2.3 million, or $0.25 per diluted share[14] - Fourth quarter 2024 net income attributable to common stockholders was $0.6 million, or $0.07 per diluted share[14] - Full year 2024 AFFO was $14.99 million, or $1.34 per diluted share, exceeding street expectations by $0.08 per share[14] - Fourth quarter AFFO was $4.1 million, or $0.37 per diluted share, beating consensus estimates by 22%[14] - Total income for Q4 2024 was $11.730 million, compared to $12.388 million in Q4 2023, reflecting a decline of approximately 5.3% year-over-year[30] - Operating income for Q4 2024 increased to $5.330 million from $3.838 million in Q4 2023, representing a growth of approximately 38.9%[30] - The company reported a comprehensive income of $1.387 million for Q4 2024, compared to a comprehensive loss of $2.101 million in Q4 2023[34] - For the three months ended December 31, 2024, Modiv Industrial, Inc. reported a net income of $1,642,000, compared to a net loss of $1,048,000 for the previous quarter[36] - The earnings per share attributable to common stockholders for the latest quarter was $0.07, recovering from a loss of $0.18 in the prior quarter[36] - Funds from Operations (FFO) attributable to common stockholders and Class C OP Unit holders was $5,072,000 for the quarter ended December 31, 2024, up from $2,216,000 in the previous quarter[38] - Adjusted Funds from Operations (AFFO) attributable to common stockholders and Class C OP Unit holders was $4,067,000 for the latest quarter, compared to $3,702,000 in the prior quarter[38] - Modiv's AFFO per share on a fully diluted basis was $0.37 for the quarter ended December 31, 2024, compared to $0.34 in the previous quarter[38] - Annualized adjusted EBITDA for the year was $39,936,000, compared to $38,596,000 in the prior year[40] - Net income for the quarter was $1,642,000, a significant recovery from a net loss of $1,048,000 in the previous quarter[40] Asset Management and Acquisitions - The company plans to grow AFFO through acquiring positive income-producing assets and improving expense efficiency[20] - A small $2 million asset was sold, and a $6 million asset acquisition is expected to close by March 14, 2025[18] - The company has implemented a disciplined acquisition strategy, focusing on evaluating opportunities without overextending itself[17] - The total property acquisition activity from January 1, 2023, to December 31, 2024, includes 1,730,704 square feet with an initial lease price of $134.274 million[54] - The company disposed of properties totaling 405,025 square feet, generating $62.732 million in disposition price[57] - The company completed a non-core acquisition of a KIA auto dealership in Los Angeles County for $32.8 million, structured as an OP Unit transaction at a cost basis of $25.00 per share[63] - The company has a 12-year lease with OES for a legacy asset in Rancho Cordova, California, which includes a purchase option that OES may exercise until December 31, 2026[63] - A legacy property leased to Costco in Issaquah, Washington is under a purchase agreement with KB Home for $25.3 million, with a potential increase of $0.3 million for each additional townhome added before closing[63] Debt and Equity - Consolidated debt as of December 31, 2024, was $280,918,000, with a net debt to adjusted EBITDA ratio of 7.0x[40] - The leverage ratio as of December 31, 2024, was 48.0%, up from 47.6% in the previous quarter[44] - The company reported a total equity of $214,050,000, down from $225,122,000 in the previous year[47] - The weighted average interest rate for total debt outstanding was 4.27% as of December 31, 2024[46] - Total debt as of December 31, 2024, is $279.776 million, with a weighted average interest rate of 4.27%[48] - The company has a maximum leverage ratio of 47.6%, which is below the required limit of 60%[51] - The company reduced its Revolver line of credit from $150 million to $30 million, saving $0.3 million in annual unused fees[49] - New swap agreements were entered into for $250 million, fixing SOFR at 2.45% for the year ending December 31, 2025, resulting in a fixed rate of 4.25%[49] - The company has a minimum consolidated tangible net worth of $281.553 million, exceeding the required $221.737 million[51] Rental Income and Portfolio - Total rental income for Q4 2024 was $11.664 million, a decrease from $12.289 million in Q4 2023, attributed to the sale of 14 properties in August 2023 and two properties in Q1 2024[30] - The top 20 tenants contribute $35.439 million in annual base rent (ABR), representing 88% of the total portfolio[59] - Industrial core properties account for 78% of the total ABR, with 39 properties and 4,196,496 square feet[61] - California accounts for 30% of the total ABR, with 11,925 thousand dollars, while Ohio contributes 12% with 4,866 thousand dollars[65] - Lease expirations indicate that 5% of ABR, amounting to $1.812 million, is set to expire in 2025, with cumulative expirations reaching 100% by 2034[66] - The company holds 43 properties with an Annual Base Rent (ABR) of $39.638 million, representing 100% of the total portfolio[64] Impairment and Depreciation - The impairment charge for Q4 2023 was related to an office property in Nashville, Tennessee, which was sold in February 2024[32] - The impairment charge for the fourth quarter of 2023 was related to an office property in Nashville, Tennessee, which was sold on February 28, 2024[42] - The company experienced a depreciation and amortization of real estate properties totaling $4,163,000 for the quarter ended December 31, 2024[38] Definitions and Metrics - The company defines Funds from Operations (FFO) as net income excluding gains/losses from sales of depreciable property, plus real estate-related depreciation, providing a clearer view of operating performance[69] - Adjusted Funds from Operations (AFFO) excludes non-routine and certain non-cash items, offering insight into sustainable operating performance[70] - The leverage ratio is defined as total debt as a percentage of the aggregate fair value of real estate properties, including cash and cash equivalents[76] - The initial cap rate for property acquisitions is defined as the initial annual cash rent divided by the purchase price of the property[78]

Financial Performance - Funds from Operations (FFO) for the year ended December 31, 2024, was $16.802 million, compared to $10.175 million in 2023, reflecting an increase in operating performance [244]. - Adjusted Funds From Operations (AFFO) for 2024 was $14.988 million, slightly up from $14.673 million in 2023, indicating stable operating performance [244]. - Total rental income for the year ended December 31, 2024 was $46.5 million, a decrease of $0.4 million or 1% compared to $46.9 million in 2023, primarily due to the sale of properties [263]. - The company reported net cash provided by operating activities of $18.241 million in 2024, an increase from $16.579 million in 2023 [256]. - Interest income increased to $0.5 million in 2024 from $0.3 million in 2023, primarily due to higher interest rates on cash and proceeds from property sales [270]. - Dividend income decreased to $0.1 million in 2024 from $0.5 million in 2023, reflecting reduced dividends from GIPR preferred stock [271]. - Interest expense rose to $16.2 million in 2024 from $13.8 million in 2023, driven by increased interest rates and larger outstanding balances [273]. - The gain on sale of real estate investments was $3.4 million for the year ended December 31, 2024, compared to a loss of $1.7 million for 2023 [269]. Investment Strategy - The company’s primary investment objectives include providing attractive growth in Adjusted Funds from Operations (AFFO) and sustainable cash distributions [209]. - The company’s focus for future acquisitions is on critical industrial manufacturing properties with long-term leases to tenants [206]. - The company plans to acquire an industrial property for $6.1 million, with an initial cap rate of 8.00%, expected to close by March 14, 2025 [234]. - The percentage of Annual ABR from industrial core properties increased from 76% in 2023 to 78% in 2024, reflecting a strategic shift towards industrial manufacturing properties [247]. - In 2024, the company acquired one industrial manufacturing property and sold two non-core properties, resulting in 78% of the portfolio being industrial properties and 22% non-core properties as of December 31, 2024 [249]. Liquidity and Capital Structure - The company reported a leverage ratio of 47.6% as of December 31, 2024, with an aggregate of $250.0 million in new swap agreements fixing the Secured Overnight Financing Rate (SOFR) at 2.45% for the year ending December 31, 2025 [212][226]. - The company has $30.0 million of borrowing capacity available under its Credit Facility, which may be utilized for attractive investment opportunities [218]. - The company expects to maintain adequate liquidity to meet cash requirements for the next 12 months and beyond, funded by internally generated funds [219]. - The company’s Credit Facility includes a $280.0 million line of credit, with a $30.0 million revolving line of credit and a $250.0 million term loan [222]. - The company had $30.0 million in unused capacity on its Revolver as of the date of the Annual Report, which can be utilized for real estate investments and repositioning properties [230]. - The company is expected to incur $3.0 million in tenant improvements in 2025, funded from cash on hand and operating cash flow [238]. Property Management and Operations - The company successfully negotiated lease extensions for six properties during the years ended December 31, 2024, and 2023, despite potential future declines in rental rates and economic conditions [214]. - The company has two leases expiring on July 31, 2025, for properties leased to Costco and Solar Turbines, which may impact future cash flows [213]. - The weighted average lease term (WALT) for the company's properties was approximately 13.8 years as of December 31, 2024 [247]. - General and administrative expenses decreased by $0.3 million or 5% year-over-year, totaling $6.3 million in 2024 compared to $6.6 million in 2023 [264]. - Stock compensation expense significantly decreased by $9.6 million or 86% year-over-year, amounting to $1.6 million in 2024 compared to $11.2 million in 2023 [265]. - Depreciation and amortization expense increased by $1.0 million or 7% year-over-year, totaling $16.6 million in 2024 compared to $15.6 million in 2023 [266]. - Property expenses decreased by $1.5 million or 30% year-over-year, totaling $3.6 million in 2024 compared to $5.2 million in 2023 [267]. Portfolio Management - The company disposed of 14 non-core properties in 2023 for aggregate contract sales prices of $47.5 million, resulting in net proceeds of $44.4 million and a net loss on sales of $1.7 million [236]. - The company sold 14 properties in August 2023 and two properties in the first quarter of 2024, reflecting its ongoing portfolio transformation strategy [261]. - The total investments in real estate property as of December 31, 2024 were $393.488 million for industrial core properties and $108.200 million for non-core properties [252]. Market Conditions and Risks - The company anticipates potential impacts from inflation and interest rates, which may affect future operating results and liquidity [210][211]. - The company monitors real estate properties for impairment indicators, which may involve significant management judgment and assumptions [277]. - The company allocates purchase prices of acquired properties based on estimated fair values, impacting revenue and expense recognition timing [276]. - The company is classified as a smaller reporting company, thus not applicable for certain market risk disclosures [280].

Investing has been a passion of mine since childhood, and I began putting that passion into practice when I started investing in stocks at the age of 18 in 2018. Over the years, I have achieved impressive results by taking a contrarian approach, focusing on unloved and undervalued assets while maintaining a disciplined, long term perspective. I hold a bachelor's degree in Finance and Banking and a master's degree in Financial Management and Investment, which have equipped me with a comprehensive academic fo ...

The preferred stock of Modiv Industrial (NYSE: MDV.PR.A ) passes under the radar of the vast majority of investors due to its low trading volume and the small market capitalization of the REIT ( $167 millionI am a chemical engineer with a MS in Food Technology and Economics, and a MENSA member. I am the author of the book "Investing in Stocks and Bonds: The Early Retirement Project" (2024):I am also the author of the book "Mental Math: How to perform math calculations in your mind".I am also the author of 2 ...

Modiv Industrial, Inc. (MDV) could be a solid choice for investors given its recent upgrade to a Zacks Rank #2 (Buy). This rating change essentially reflects an upward trend in earnings estimates -- one of the most powerful forces impacting stock prices.The sole determinant of the Zacks rating is a company's changing earnings picture. The Zacks Consensus Estimate -- the consensus of EPS estimates from the sell-side analysts covering the stock -- for the current and following years is tracked by the system.T ...

Real estate investment trusts, or REITs, come in all shapes and sizes. This idea is a common theme, since, as my handle suggests, I cover a variety of REITs. Most REITs tend to emphasize diverse strategies, touting themselves as a one-stop shopREITer's Digest is a discussion forum for my thoughts on investments. I spent more than ten years working in the real estate industry, including an S&P500 REIT and a Big Four consulting group. I am light-hearted, open-minded, and a student of the game. Investing is no ...

Financial Data and Key Metrics Changes - Rental income for Q3 2024 was $11.6 million, down from $12.5 million in the prior year, primarily due to the sale of 16 properties [7] - Adjusted funds from operations (AFFO) remained stable at $3.7 million, with AFFO per share increasing to $0.34 from $0.33 in the previous year [8][9] - Interest expense increased to $3.2 million compared to the same period in 2023, influenced by unrealized non-cash losses on swap valuations [10] - Total cash and cash equivalents were $6.8 million, with $280 million in debt outstanding, and no debt maturities until January 2027 [12] Business Line Data and Key Metrics Changes - The portfolio consists of 43 properties with an annualized base rent totaling $40.2 million as of September 30, 2024, and a weighted average lease term of 13.8 years [11] - Approximately 33% of tenants or their parent companies have an investment-grade rating of BBB- or better [11] Market Data and Key Metrics Changes - The company noted a challenging market for REITs, with most experiencing sell-offs, while Modiv Industrial's stock showed slight gains [6] Company Strategy and Development Direction - The company aims to focus on acquiring durable manufacturing assets while being disciplined about taking on additional debt [24] - Management is committed to increasing communication with retail investors, recognizing the low institutional ownership of less than 9% [21] - The company is actively evaluating the interest rate environment and plans to enter new swap agreements to maintain a fixed interest rate on its debt [13][19] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the acquisition pipeline, noting an increase in opportunities despite a previously dry summer [24] - The company is focused on maintaining a solid portfolio and is not rushing into decisions, emphasizing patience and discipline in a volatile market [15][16] - Management highlighted the importance of supporting American manufacturing and the potential for increased onshoring under the current political climate [42][44] Other Important Information - The Board of Directors declared a cash dividend of $0.0975 per common share for the first quarter of 2025, representing a 1.7% increase from the previous annualized dividend rate [14] - The company is preparing to formally market the Kalera property, which has been vacant since bankruptcy proceedings [36] Q&A Session Summary Question: How active is the pipeline today? - Management is encouraged by the current pipeline, noting that pricing for manufacturing assets is in the high-7s to low-8s range, with fewer buyers in the market [24] Question: Is the $6 million OP unit asset the entire purchase price? - Yes, the $6 million is the total purchase price with no additional cash element [27] Question: When is the right time to sell the Kia asset? - Management is considering the timing carefully, with a focus on a stable rate environment to maximize the asset's value [30] Question: What is the current tenant performance? - The Kalera property is currently vacant, and management is preparing to market it, while other tenants are performing well [36] Question: How does the election outcome affect acquisition strategies? - Management believes there will be continued support for American manufacturing, which aligns with their acquisition strategy [42][44] Question: What are the expectations for new hedges? - New hedges are expected to have similar or better terms than the expiring swaps, without cancellation features [50][53] Question: What is the company's approach to capital raising? - The company prefers to raise capital through retail investors rather than institutional investors, focusing on maintaining intrinsic value [66][70]

Modiv Industrial, Inc. (MDV) came out with quarterly funds from operations (FFO) of $0.34 per share, in line with the Zacks Consensus Estimate. This compares to FFO of $0.33 per share a year ago. These figures are adjusted for non-recurring items.A quarter ago, it was expected that this company would post FFO of $0.31 per share when it actually produced FFO of $0.34, delivering a surprise of 9.68%.Over the last four quarters, the company has surpassed consensus FFO estimates two times.Modiv Industrial, Inc. ...

Exhibit 99.2 NYSE: MDV QUARTERLY SUPPLEMENTAL DATA | --- | --- | --- | --- | |-------|-------------------------|-------|-------| | | | | | | | September 30, 2024 | | | | | Financial Information | | | | | and | | | | | Portfolio Information | | | Modiv Industrial, Inc. Supplemental Information - Third Quarter 2024 Table of Contents | --- | --- | |-----------------------------------------------------------------------------------------------|-------| | About the Data | 3 | | | | | Company Overview | 4 | | Fin ...

Real Estate Investments - As of September 30, 2024, the net book value of the company's real estate investments was $477,691,631[151]. - The real estate portfolio consists of 43 properties, with 39 industrial properties representing approximately 77% of the portfolio by annualized base rent (ABR) of $40,205,913[152]. - The occupancy rate of the portfolio is 98%, with a weighted average remaining lease term of approximately 13.8 years[152]. - The company sold one industrial property and one office property in early 2024 for a total of $15,265,000, resulting in net gains of $3,359,807[153]. - The company acquired an industrial manufacturing property for $5,125,000 on July 15, 2024, with an initial cap rate of 8.00% and a weighted average cap rate of 10.59%[172]. - During the nine months ended September 30, 2023, the company acquired 12 industrial properties for a total of $129,753,499[173]. - The company transformed its portfolio, with industrial properties comprising 77% of Annual Base Rent (ABR) as of September 30, 2024, up from 76% in December 2023[191]. - The total rental income for the nine months ended September 30, 2024, was $34,833,458, with $26,326,958 from industrial core properties and $8,506,500 from non-core properties[194]. - The company acquired 12 industrial manufacturing properties in 2023 and one additional property in July 2024, continuing its strategic focus on industrial assets[192]. - The company sold 16 non-core properties in 2023 and early 2024, further reducing its exposure to non-core assets[203]. Financial Performance - For the nine months ended September 30, 2024, the company reported a net income attributable to common stockholders of $2,085,698, compared to a net loss of $9,619,835 for the same period in 2023[188]. - The company's Funds From Operations (FFO) attributable to common stockholders was $11,728,308 for the nine months ended September 30, 2024, up from $7,777,265 in the prior year, reflecting a significant increase[188]. - The Adjusted Funds From Operations (AFFO) attributable to common stockholders was $10,919,370 for the nine months ended September 30, 2024, compared to $10,160,506 for the same period in 2023[188]. - Net cash provided by operating activities increased to $12,835,060 for the nine months ended September 30, 2024, up from $11,210,166 in the same period of 2023[178]. - The net cash provided by investing activities in the first nine months of 2024 was $9,881,100, contrasting with a net cash used of $(90,995,924) in the same period of 2023[178]. - Rental income for the nine months ended September 30, 2024 increased by $185,375, or 1%, to $34,833,458 compared to $34,648,083 in the same period of 2023, driven by new property acquisitions[214]. Debt and Financing - As of September 30, 2024, 100% of the company's $281,011,068 outstanding debt is at fixed rates with a weighted average rate of 4.52%[156]. - The company has $150 million of borrowing capacity available under its Credit Facility, which may be utilized for future investments[163]. - The company anticipates potential challenges in refinancing debt obligations due to elevated interest rates and market conditions[157]. - As of September 30, 2024, the outstanding principal balance of mortgage notes payable was $31,011,068, compared to $31,200,000 as of December 31, 2023[171]. - Interest expense for the nine months ended September 30, 2024 rose by $5,752,388, or 85%, to $12,514,167 compared to $6,761,779 in 2023, primarily due to unrealized losses on interest rate swaps[226]. Operational Efficiency - The company successfully negotiated lease extensions for four properties in 2023 and one property in Q3 2024[160]. - General and administrative expenses for Q3 2024 were $1,660,520, a decrease of $74,584, or 4%, from $1,735,104 in Q3 2023, reflecting reduced consulting expenses[205]. - General and administrative expenses for the nine months ended September 30, 2024 decreased by $162,121, or 3%, to $5,078,814 from $5,240,935 in 2023[215]. - Property expenses decreased by $170,173, or 14%, to $1,025,051 in Q3 2024 from $1,195,224 in Q3 2023, primarily due to lower property taxes and maintenance costs[208]. - Stock compensation expense significantly decreased by $8,394,867 to $75,000 in Q3 2024 from $8,469,867 in Q3 2023, due to the final amortization of Class P and Class R OP Units[206]. - Depreciation and amortization expense remained relatively flat at $4,166,992 in Q3 2024 compared to $4,175,209 in Q3 2023, reflecting new property acquisitions offset by disposals[207]. Compliance and Regulations - The company was in compliance with all financial loan covenants as of September 30, 2024[172]. - To maintain REIT status, the company must distribute at least 90% of its annual taxable income[231]. - Failure to maintain REIT qualification could result in taxation at corporate rates and affect net income and cash available for distribution[232]. - The company intends to continue qualifying as a REIT under U.S. federal income tax purposes[231]. - There were no legal proceedings reported as of the filing date[240]. - No significant changes to accounting policies were reported during the nine months ended September 30, 2024[234]. - No changes in internal control over financial reporting were identified that materially affected the reporting[239]. Future Outlook - The company expects an increase in rental income, depreciation expense, and interest expense for the full year of 2024 compared to 2023, driven by recent acquisitions[203]. - The company has not established a minimum distribution level for stockholders[229]. - Distributions are declared one to two months prior to the beginning of a quarter[230]. - Monthly distribution rate for Class C Common Stock is set at $0.09583300 per share from January 2024 to March 2025[230].