Group 1 - The preferred stock of Modiv Industrial (MDV.PR.A) was recommended for holding due to its above-average dividend yield of 7.5% and a margin of safety [1] - Since the recommendation, the stock has outperformed the market [1] Group 2 - The author has a background in chemical engineering and economics, and has written multiple books on investing and mathematics [1] - The author emphasizes the use of fundamental and technical analysis in investment decisions, primarily utilizing options for both investing and trading [1]

Modiv Industrial (MDV) Q1 2025 Earnings Call May 07, 2025 11:00 AM ET Company Participants John Raney - Chief Operating Officer & General CounselAaron Halfacre - CEO, President & DirectorRay Pacini - CFORob Stevenson - MD & Head - Real Estate ResearchCraig Kucera - MD - Equity ResearchStephen Chick - CIO Conference Call Participants Gaurav Mehta - Managing Director, Senior Equity Research Analyst & Real Estate and FinancialsJohn Massocca - Senior Research Analyst Operator Ladies and gentlemen, greetings, an ...

Modiv Industrial (MDV) Q1 2025 Earnings Call May 07, 2025 11:00 AM ET Speaker0 Ladies and gentlemen, greetings, and welcome to Motive Industrial Inc. First Quarter twenty twenty five Earnings Conference Call. At this time, all participants are in a listen only mode. A brief question and answer session will follow the formal presentation. As a reminder, this conference is being recorded. It is now my pleasure to introduce your host, John Rainey, Chief Operating Officer and General Counsel of Motive Industria ...

Modiv Industrial, Inc. (MDV) came out with quarterly funds from operations (FFO) of $0.33 per share, beating the Zacks Consensus Estimate of $0.31 per share. This compares to FFO of $0.29 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an FFO surprise of 6.45%. A quarter ago, it was expected that this company would post FFO of $0.20 per share when it actually produced FFO of $0.37, delivering a surprise of 85%.Over the last four quarters, the company ...

Exhibit 99.2 NYSE: MDV QUARTERLY SUPPLEMENTAL DATA March 31, 2025 Financial Information and Portfolio Information Modiv Industrial, Inc. Supplemental Information - First Quarter 2025 Table of Contents | About the Data | 3 | | --- | --- | | Company Overview | 4 | | Financial Results | | | Earnings Release | 5 | | Consolidated Statements of Operations - Last Five Quarters | 9 | | Consolidated Statements of Comprehensive Income (Loss) - Last Five Quarters | 11 | | Earnings (Loss) Per Share - Last Five Quarters ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended March 31, 2025 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission file number 001-40814 MODIV INDUSTRIAL, INC. (Exact Name of Registrant as Specified in Its Charter) Maryland 47-4156046 (State or other jurisdic ...

Group 1 - The recent months have significantly altered global trading norms due to the implementation of tariffs, leading to a new economic reality [1] - The economy is currently navigating through these changes, indicating a period of adjustment for various industries [1]

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].

Core Insights - The individual has a strong background in finance and investment, holding a bachelor's degree in Finance and Banking and a master's degree in Financial Management and Investment, which provides a solid academic foundation for investment analysis [1] - The investment strategy focuses on a contrarian approach, targeting unloved and undervalued assets while maintaining a long-term perspective [1] - The individual has achieved notable results in investing since starting at age 18 in 2018, emphasizing value investing principles and stable cash flow sectors such as consumer defensive, utilities, and real estate [1] Academic and Professional Credentials - The individual has earned certifications as a Capital Markets and Securities Analyst and a Financial Modeling & Valuation Analyst, showcasing specialized skills in evaluating complex financial instruments [1] - Successfully passed CFA Level 1 in May 2023 and CFA Level 2 in September 2024, with plans to take CFA Level 3 in August 2025, indicating a commitment to further expertise in investment analysis and portfolio management [1] Investment Philosophy - The investment philosophy is centered around identifying equities trading below their intrinsic value, with a focus on long-term appreciation and dividends [1] - There is a strong preference for sectors that provide stable cash flows, which aligns with the overall investment strategy [1] Engagement with the Investment Community - The motivation for contributing to Seeking Alpha is to enhance understanding of financial markets through company analysis and sharing insights with experienced investors [1]