The world of REITs has changed considerably over the past five years. The era of easy capital has passed and the eye of investors has become more discerning in the post-pandemic era. This means that theAnalyst’s Disclosure: I/we have a beneficial long position in the shares of O, EPRT either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relations ...

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 tax treatment for its 2025 common stock and preferred stock dividends. Common Stock Distributions FORM 1099-DIV Box 1a Box 1b Box 2a Box 2b  Box 2e Box 2f Box 3 Box 5 Record Date Payment Date Distribution per Share Ordinary Taxable Dividend Taxable Qualifi. ...

Core Viewpoint - Modiv Industrial, Inc. is focused on increasing shareholder value through higher dividends and share prices, with a commitment to improving Adjusted Funds from Operations (AFFO) as a key metric for financial health [2][3][8] Financial Performance - The company has achieved over $2 million in additional AFFO through contractual rent increases, expense reductions, and asset recycling, leading to a $0.03 increase in the annual dividend to $1.20 per share [3][22] - The current monthly distribution of $0.10 per share reflects an annualized yield of 8.15% based on a closing price of $14.72 [22] Portfolio Transformation - Modiv's portfolio transformation began over five years ago, reducing non-industrial exposure from approximately 50% office and 40% industrial to a more focused industrial portfolio [5] - Recent sales include an office asset in Issaquah, WA, and a vacant asset in St. Paul, MN, for $4.1 million, with plans to sell additional office and legacy industrial assets [5][6] - The company aims to recycle a minimum of twelve assets within 18 to 24 months to maximize AFFO and improve its balance sheet [6][10] Strategic Focus - The company will maintain a disciplined approach to expense control and contractual rent increases while accelerating asset recycling to enhance shareholder value [4][10] - Modiv has opted not to raise capital at current low share prices to avoid dilutive equity, focusing instead on internal growth and maximizing existing resources [9][11] Leadership Changes - The Chief Financial Officer, Ray Pacini, will resign after the filing of the 2025 10-K, transitioning to an Executive Vice President role, with John Raney appointed as the new CFO [19][20] Future Outlook - The company has secured an extension on its term loan maturity to July 2028, providing time to complete its transformation and refinance debt [15] - Plans to retire preferred equity using asset recycling proceeds are expected to further enhance AFFO per share and strengthen the balance sheet [16][17]

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].