DENVER--(BUSINESS WIRE)--Modiv Industrial, Inc. ("Modiv Industrial,†"Modiv†or the "Company†) (NYSE:MDV), the only public REIT exclusively focused on acquiring industrial manufacturing real estate properties, announced the declaration of a regular quarterly cash dividend of $0.4609375 per share on the Company's 7.375% Series A Cumulative Redeemable Perpetual Preferred Stock, $0.001 par value per share (the "Series A Preferred Stock†), for the fourth quarter of 2025. On November 12, 2025, the B. ...

Modiv Industrial ( MDV ) is an internally managed REIT that owns a portfolio of single-tenant, net-lease properties. The REIT manages 43 properties in 15 states, diversified over 30 tenants. It focuses on mission-critical industries and is knownI'm Luuk Wierenga, an economics teacher from the Netherlands with a strong passion for income investing. My investment journey began during the COVID-19 pandemic, and since then, I've specialized in identifying Real Estate Investment Trusts (REITs) that are temporari ...

Group 1 - The analyst has over 10 years of experience researching companies across various sectors, including commodities and technology [1] - The analyst has researched more than 1000 companies, focusing on metals and mining stocks, as well as other industries like consumer discretionary, REITs, and utilities [1] - The analyst transitioned from writing a blog to creating a value investing-focused YouTube channel, where they have researched hundreds of companies [1] Group 2 - There is no current stock or derivative position in any mentioned companies, but a potential long position in MDV may be initiated within 72 hours [2] - The article reflects the analyst's own opinions and is not influenced by compensation from any company mentioned [2] - Seeking Alpha emphasizes that past performance does not guarantee future results and that the views expressed may not represent the platform as a whole [3]

Core Insights - India's defense sector is poised for significant growth, with a target to double military production to 3 trillion rupees (approximately $33 billion) by 2029 [1] Industry Overview - The Indian government is focusing on enhancing its defense capabilities and production capacity, indicating a strategic shift in military investment [1] - This initiative reflects India's broader ambition to strengthen its defense industry and reduce reliance on foreign imports [1]

Financial Data and Key Metrics Changes - The company reported a one-time revenue adjustment of $300,000 from terminating easement rights, which is not expected to recur in the future [13][16] - Overall average rent growth is approximately 2.5% per year based on lease escalations, indicating stable rental income trends [62] Business Line Data and Key Metrics Changes - The company has added another asset to the held-for-sale category, specifically the Clara property, with plans to sell it by early January [19][20] - The Costco property is still in the held-for-sale category, with an expected closing by December 15, pending a demolition permit [20][22] Market Data and Key Metrics Changes - Cap rates for properties being considered are primarily in the seven handles, with some reaching eight, indicating a competitive acquisition environment [30] - The company has observed an increase in acquisition opportunities recently, with a notable uptick in activity over the last week compared to the previous month and a half [24][27] Company Strategy and Development Direction - The company is focusing on systematic asset recycling to fund acquisitions, emphasizing a deliberate approach to selling non-core assets [32][35] - Management is optimistic about the potential for easing in capital markets, which could lead to more favorable conditions for acquisitions in the future [4][8] Management's Comments on Operating Environment and Future Outlook - Management expressed a sense of optimism despite market volatility, noting that the balance sheet is stronger and there is more clarity than a year ago [10][9] - The company is closely monitoring the economic environment, particularly regarding interest rates and their impact on REITs, indicating a cautious but hopeful outlook [4][45] Other Important Information - The company is not currently planning to attend the NAREIT conference, indicating a strategic decision to focus on internal matters rather than external engagements [69] Q&A Session Summary Question: Were there any one-time revenue adjustments in your other property income? - Yes, there was a $300,000 fee for terminating easement rights, which is a one-time event [13][16] Question: Can you provide details on the asset in the held-for-sale bucket? - The Clara property has been formally engaged for sale, with expectations to close by early January [19][20] Question: What are the current cap rates for properties being considered? - Cap rates are mainly in the seven handles, with some reaching eight, indicating a competitive market [30] Question: How does the company view the acquisition opportunities currently? - There has been an increase in acquisition opportunities recently, with more activity observed in the last week [24][27] Question: What is the outlook for same store rental income? - The company does not currently calculate same store rental income but plans to implement it in the future [61][62] Question: When is the Solar property expected to be resolved or sold? - The company anticipates that the property could be taken to market by early first-quarter 2026 [65]

Financial Performance - Third quarter 2025 revenue was $11.7 million, with net income attributable to common stockholders of $0.3 million[15] - Adjusted funds from operations (AFFO) were $4.5 million, or $0.36 per diluted share, representing a 22% increase from $3.7 million in the same quarter last year[15] - Total income for the three months ended September 30, 2025, was $11,687,000, a decrease from $11,833,000 in the previous quarter[35] - Operating income for the third quarter of 2025 was $4,844,000, compared to $1,165,000 in the previous quarter, indicating a significant recovery[35] - Net income attributable to Modiv Industrial, Inc. for the third quarter of 2025 was $1,048,000, a turnaround from a net loss of $2,022,000 in the previous quarter[35] - Comprehensive income for the third quarter of 2025 was $726,000, compared to a comprehensive loss of $2,692,000 in the previous quarter[39] - For the three months ended September 30, 2025, Modiv Industrial, Inc. reported a net income of $1,077,000, a significant recovery from a net loss of $2,633,000 in the previous quarter[41] - The diluted earnings per share for common stockholders was $0.21 for the quarter, a recovery from a loss of $3.704 in the previous quarter[41] Expenses and Financial Management - The company reported a decrease in general and administrative expenses by $0.3 million, property expenses by $0.1 million, cash interest expense by $0.4 million, and preferred stock dividends by $0.1 million[15] - The company incurred stock compensation expenses of $811,000 for the quarter ended September 30, 2025[42] - Preferred stock dividends for the quarter amounted to $795,000, consistent with the previous quarter[42] - The company reported a depreciation and amortization expense of $3,746,000 for the quarter[42] Assets and Liabilities - As of September 30, 2025, annualized base rent totaled $38.9 million, with $8.3 million in unrestricted cash and $30 million available on the revolver[19] - The company has no outstanding debt maturities until January 2027, with 100% of indebtedness fixed at a weighted average interest rate of 4.27% and a leverage ratio of 48%[20] - Total consolidated debt as of September 30, 2025, was $280,502,000, with a net debt of $279,161,000, resulting in a net debt to adjusted EBITDA ratio of 6.9x[46] - Total asset value decreased slightly to $606,742,000 as of September 30, 2025, from $609,741,000 at the end of 2024[49] - Total liabilities increased to $294,769,000 as of September 30, 2025, compared to $293,779,000 at the end of 2024[51] - Cash and cash equivalents decreased to $8,264,000 from $11,530,000 at the end of 2024[51] - The company has a total credit facility of $280.0 million, consisting of a $30.0 million Revolver and a $250.0 million Term Loan, with the Term Loan fully drawn and the Revolver having zero outstanding balance as of September 30, 2025[18] Portfolio and Leasing - The portfolio consists of 43 properties with a weighted average lease term of 14.2 years, and approximately 28% of tenants have an investment-grade credit rating of BBB- or better[18] - The top 20 tenants contribute $35.5 million in annual base rent (ABR), representing 91% of the total ABR and occupying 3,860,010 square feet, which is 85% of the total leased area[62] - The company has 39 core industrial properties, which account for 82% of the total ABR and 93% of the total leased area[64] - As of September 30, 2025, the total annual base rent (ABR) expiring is $38,866,000, representing 100% of the total ABR[69] - The cumulative leased area expiring by 2034 is 554,441 square feet, accounting for 13% of the total leased area[69] Strategic Initiatives - The company aims to recycle select assets to enhance AFFO, increase weighted average lease term, and strengthen the balance sheet[25] - Modiv Industrial has focused on creating value for shareholders without pursuing aggressive growth strategies or dilutive capital raises[26] - The company emphasizes patience and discipline as key strategies in navigating the current market conditions[22] - Modiv Industrial remains committed to transparency and consistent dividends while exploring opportunities for value creation[25] Financial Metrics and Definitions - Funds from Operations (FFO) and Adjusted Funds from Operations (AFFO) are used to evaluate operating performance, with AFFO isolating financial results from operations[72][73] - Adjusted EBITDA is defined as GAAP net income adjusted for various non-cash items and extraordinary items, providing a clearer picture of operating performance[76] - Net Debt is defined as gross debt less cash, cash equivalents, and restricted cash, which is crucial for assessing financial health[77] - The leverage ratio is calculated as total debt as a percentage of the aggregate fair value of real estate properties plus cash and equivalents[78] - Annualized Base Rent (ABR) represents the contractual annual base rent for the next 12 months, indicating future revenue potential[79]

Financial Performance - For the three months ended September 30, 2025, net income attributable to common stockholders was $282, compared to a loss of $1,970 for the same period in 2024[165]. - FFO for the three months ended September 30, 2025, was $4,217, an increase of 90% from $2,216 in 2024[165]. - AFFO for the three months ended September 30, 2025, was $4,511, up from $3,702 in 2024, representing a 22% increase[165]. - The rental revenue for the nine months ended September 30, 2025, remained constant at $34.8 million compared to 2024[178]. - General and administrative expenses decreased by 10% to $4.6 million for the nine months ended September 30, 2025, down from $5.1 million in 2024[179]. - Other expenses decreased to $3.8 million for the three months ended September 30, 2025, down from $5.9 million in 2024, primarily due to reduced losses on interest rate derivatives[177]. - Depreciation and amortization expense decreased by $1.0 million, or 8%, to $11.4 million for the nine months ended September 30, 2025, primarily due to the classification of a property as held for sale[181]. - The gain on sale of real estate investments was $0.1 million for the nine months ended September 30, 2025, compared to $3.4 million in 2024[184]. - Other expenses decreased to $11.5 million for the nine months ended September 30, 2025, from $11.8 million in 2024, primarily due to the absence of losses on interest rate derivatives[185]. Real Estate Investments - As of September 30, 2025, the net book value of the company's real estate investments was $462.9 million[124]. - The annual base rent (ABR) totaled $38.9 million, with 39 industrial properties representing approximately 82% of the portfolio by ABR[129]. - The occupancy rate of the portfolio was 96%, with a weighted average remaining lease term (WALT) of approximately 14.2 years[129]. - The company transformed its portfolio, increasing the percentage of ABR from industrial properties to 82% by September 30, 2025, up from 41% in December 2021[167]. - The weighted average lease term (WALT) increased to 14.2 years as of September 30, 2025, compared to 6.1 years in December 2021[167]. - The company acquired an industrial property for $6.1 million, representing an initial cap rate of 8.00%[150]. - The company owned 43 operating properties as of September 30, 2025, with acquisitions made in March 2025 and July 2024[170]. Debt and Liquidity - The company has a leverage ratio of 47.6% as of December 31, 2024, and 100% of consolidated indebtedness has a weighted average fixed interest rate of 4.27%[128][133]. - The Credit Facility includes a $280.0 million line of credit, with a $30.0 million revolving line and a $250.0 million term loan[140]. - The interest rate on the Revolver was 6.10% as of October 31, 2025, with a leverage ratio of 47.7%[142]. - The company expects to have adequate liquidity to meet cash requirements for the next 12 months and beyond[137]. - As of September 30, 2025, the outstanding principal balance of the Term Loan was $250.0 million, with a leverage ratio of 47.6%[143]. Stock and Dividends - The company sold 79,415 shares of Class C Common Stock in the ATM Offering during the three months ended September 30, 2025, generating proceeds of $1.2 million[138]. - The company repurchased Series A Preferred Stock for $6.5 million during the nine months ended September 30, 2025[158]. - Preferred dividends declared for the first three quarters of 2025 totaled $0.8 million each, paid on April 15, July 15, and October 15, 2025[186]. - The company repurchased 275,000 shares of Series A Preferred Stock for a total of $6.5 million at an average cost of $23.74 per share, representing 13.8% of shares issued[190]. - The company intends to maintain its REIT status, which requires distributing at least 90% of its annual taxable income[191]. - The distribution rate for common stock is determined by the board of directors and has not been pre-established[187]. Expenses and Obligations - The company had obligations to reimburse $2.2 million for future tenant improvements expected to be incurred by tenants as of September 30, 2025[153]. - The company has identified approximately $0.5 million of capital expenditures expected to be completed in the next 12 months[154]. - The company paid aggregate premiums of $4.2 million during the nine months ended September 30, 2025, to buy down the swaps fixed rate[157]. - Stock compensation expense for the nine months ended September 30, 2025, was $2.1 million, a 38% increase from $1.5 million in 2024[180]. Compliance and Accounting - The company was in compliance with all financial loan covenants as of September 30, 2025[148]. - The company has not made significant changes to its accounting policies during the three months ended September 30, 2025[193]. Impairments - An impairment charge of $4.0 million was recorded for property and equipment in Saint Paul, Minnesota, during the nine months ended September 30, 2025, with no impairment charges in the same period of 2024[183].

Core Points - Modiv Industrial, Inc. is the only public REIT focused exclusively on acquiring industrial manufacturing real estate properties [1] - The company declared a regular monthly cash distribution of $0.0975 per share on its Class C common stock for October, November, and December 2025 [1] - This distribution represents an annual distribution rate of $1.17 [1] Financial Summary - The monthly cash distribution amounts to $0.0975 per share [1] - The total annual distribution rate is calculated at $1.17 [1]

Group 1 - Albert Anthony is a Croatian-American business author and media contributor on investor platforms, with over 1,000 followers on Seeking Alpha [1] - He has a background in IT analysis for Fortune 500 companies and worked in technical support at Charles Schwab in 2021 [1] - Albert Anthony has launched his own equities research firm, Albert Anthony & Company, which operates 100% remotely [1] Group 2 - He is set to release a book titled "Real Estate Investment Trusts (REITs): A Fundamental Analysis" on Amazon in 2025 [1] - Albert Anthony has participated in numerous business and innovation conferences, trade shows, and panel discussions in the EU market, particularly in Croatia [1] - He is currently pursuing the CMSA certification at the Corporate Finance Institute in Vancouver [1] Group 3 - The author does not write about non-publicly traded companies, small cap stocks, or startup CEOs [1] - Albert Anthony & Company is a sole proprietorship registered in Austin, Texas, and does not provide personalized financial advisory or manage client funds [1] - The firm provides general market commentary and research based on publicly available data [1]

Group 1 - The investment group European Small Cap Ideas focuses on high-quality small-cap investment opportunities in Europe, emphasizing capital gains and dividend income for continuous cash flow [1] - The group offers two model portfolios: the European Small Cap Ideas portfolio and the European REIT Portfolio, along with weekly updates and educational content [1] - An active chat room is available for discussions on the latest developments of the portfolio holdings [1] Group 2 - There is a potential for initiating long positions in common and preferred shares in the near future, although not within the next 72 hours [2]