Group 1 - Modiv Industrial's preferred stock (NYSE: MDV.PR.A) is largely overlooked by investors due to its low trading volume and the small market capitalization of the REIT, which stands at $167 million [3]

Core Viewpoint - Modiv Industrial, Inc. (MDV) has received a Zacks Rank 2 (Buy) upgrade, indicating a positive outlook on its earnings estimates, which is a significant factor influencing stock prices [1][3]. Earnings Estimates and Stock Price Movement - The Zacks rating system is based on changes in earnings estimates, which are strongly correlated with near-term stock price movements [4][6]. - Rising earnings estimates for Modiv Industrial suggest an improvement in the company's underlying business, likely leading to increased stock prices [5][8]. Zacks Rank System - The Zacks Rank system classifies stocks into five groups based on earnings estimates, with a strong historical performance, particularly for Zacks Rank 1 stocks, which have averaged a +25% annual return since 1988 [7][9]. - Modiv Industrial's upgrade to Zacks Rank 2 places it in the top 20% of Zacks-covered stocks, indicating a strong potential for market-beating returns in the near term [10][11]. Recent Earnings Estimate Revisions - For the fiscal year ending December 2024, Modiv Industrial is expected to earn $1.32 per share, reflecting a -0.8% change from the previous year, but the Zacks Consensus Estimate has increased by 4.3% over the past three months [8].

Group 1 - Real estate investment trusts (REITs) exhibit a variety of strategies and structures, often presenting themselves as comprehensive investment solutions [1] - The author has over ten years of experience in the real estate sector, including roles in an S&P 500 REIT and a Big Four consulting firm, indicating a strong background in the industry [1] Group 2 - The article emphasizes the importance of diverse strategies within the REIT sector, suggesting that investors should consider a range of options when evaluating potential investments [1]

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]

Group 1 - Modiv Industrial, Inc. reported quarterly funds from operations (FFO) of $0.34 per share, matching the Zacks Consensus Estimate and showing a year-over-year increase from $0.33 per share [1] - The company posted revenues of $11.59 million for the quarter ended September 2024, which was 2.61% below the Zacks Consensus Estimate and a decrease from $12.5 million a year ago [2] - Modiv Industrial's shares have increased approximately 12.9% since the beginning of the year, while the S&P 500 has gained 21.2% [3] Group 2 - The future performance of Modiv Industrial's stock will largely depend on management's commentary during the earnings call and the outlook for FFO [3][4] - The current consensus FFO estimate for the upcoming quarter is $0.35 on revenues of $11.9 million, and for the current fiscal year, it is $1.32 on revenues of $47.03 million [7] - The REIT and Equity Trust - Residential industry, to which Modiv Industrial belongs, is currently ranked in the top 40% of over 250 Zacks industries, indicating a favorable outlook compared to lower-ranked industries [8]

Financial Performance - Third quarter AFFO was $0.34 per share, a penny higher than the same period last year and above consensus estimates[9]. - The company reported a net loss per share attributable to common stockholders of $(0.18) for the third quarter[18]. - The net loss attributable to common stockholders was $(1,508,277) for the quarter, compared to a profit of $403,042 in the same period last year[21]. - For the third quarter of 2024, Modiv Industrial, Inc. reported a net loss attributable to common stockholders of $1,694,965, compared to a profit of $281,002 in the previous quarter[36]. - The diluted loss per share for the third quarter of 2024 was $(0.18), a decrease from $0.03 in the previous quarter[36]. - The company experienced a net loss of $1,047,736 in the third quarter of 2024, compared to a net income of $1,261,736 in the second quarter of 2024[40]. - Funds from Operations (FFO) attributable to common stockholders and Class C OP Unit holders for the third quarter of 2024 was $2,215,511, down from $4,666,521 in the previous quarter[40]. - Adjusted Funds from Operations (AFFO) attributable to common stockholders and Class C OP Unit holders was $3,701,229 for the third quarter of 2024, compared to $3,900,228 in the previous quarter[40]. - The company reported a preferred stock dividend of $(921,875) for each of the last five quarters[40]. - The company reported a gain on the sale of real estate investments of $172,001 for the quarter, contrasting with a loss of $(1,708,801) in the same quarter of the previous year[20]. Revenue and Expenses - Rental income for the three months ended September 30, 2024, was $11,589,370, a decrease of 7.3% compared to $12,500,338 for the same period in 2023[20]. - Total income for the quarter was $11,655,363, reflecting a decline of 7.3% from $12,566,329 year-over-year[20]. - Total expenses increased to $6,927,563, up 44.5% from $15,575,404 in the same quarter last year[20]. - Operating income for the quarter was $4,899,801, down from $6,658,980 in the previous year, representing a decrease of 26.5%[20]. Capital and Debt - Consolidated debt as of September 30, 2024, was $281,011,068, with total indebtedness at $290,089,471[45]. - The leverage ratio remained stable at 48% as of September 30, 2024, consistent with December 31, 2023[44]. - The weighted average interest rate for total debt outstanding was 4.52% as of September 30, 2024[49]. - The company has a fully drawn $250 million Term Loan with a fixed interest rate of 4.53%[56]. - The company’s net debt to adjusted EBITDA ratio was 7.3x as of September 30, 2024[43]. Investments and Acquisitions - Total property acquisitions from January 1, 2023, to September 30, 2024, amounted to $134,273,574 across 1,730,704 square feet[59]. - The company disposed of properties totaling 405,025 square feet for a total disposition price of $62,731,960[62]. - The total investments in real estate property increased from $524,661,932 to $531,540,076, an increase of approximately 1.7%[51]. - The company has completed significant improvements to previously acquired properties, with $1,600,144 deployed as of September 30, 2024[59]. Tenant and Lease Information - The top 20 tenants contribute $35,881,637 in annual base rent (ABR), representing 89% of the total portfolio[64]. - Industrial core properties account for 77% of the total ABR, totaling $30,796,690[66]. - The largest tenant, Lindsay, contributes $5,333,787 in ABR, accounting for 13% of the total portfolio[64]. - The average lease term for acquired properties is approximately 20 years, with annual rent increases ranging from 2.2% to 3.0%[59]. - Lease expirations indicate that 77% of leased square footage will expire after 2030, totaling 3,458,148 square feet[71]. Cash and Liquidity - Cash and cash equivalents increased to $6,824,847 as of September 30, 2024, compared to $3,129,414 at December 31, 2023[45]. - Distributions payable decreased significantly from $12,174,979 to $1,962,762, a reduction of about 83.9%[51]. - Total liabilities decreased from $305,773,922 to $295,621,276, a reduction of about 3.8%[51]. Non-GAAP Measures - Modiv Industrial, Inc. defines Adjusted EBITDA as GAAP net income adjusted for various non-cash items, providing a clearer view of operating performance[79]. - The company uses Funds from Operations (FFO) and Adjusted Funds from Operations (AFFO) as key non-GAAP measures to assess operating performance[74][75]. - Modiv Industrial, Inc. emphasizes the importance of non-GAAP measures to provide a more complete understanding of its performance relative to competitors[76].

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].

Modiv Industrial, Inc. (MDV) shares ended the last trading session 5.6% higher at $16.90. The jump came on an impressive volume with a higher-than-average number of shares changing hands in the session. This compares to the stock's 0.3% loss over the past four weeks. The increased optimism in the stock can be attributed to the favorable industry fundamentals. This company is expected to post quarterly funds from operation (FFO) of $0.34 per share in its upcoming report, which represents a year-over-year cha ...

After reaching an important support level, Modiv Industrial, Inc. (MDV) could be a good stock pick from a technical perspective. MDV recently experienced a "golden cross" event, which saw its 50-day simple moving average breaking out above its 200-day simple moving average. There's a reason traders love a golden cross -- it's a technical chart pattern that can indicate a bullish breakout is on the horizon. This kind of crossover is formed when a stock's short-term moving average breaks above a longer-term m ...

Investors might want to bet on Modiv Industrial, Inc. (MDV) , as it has been recently upgraded to a Zacks Rank #1 (Strong Buy). This upgrade primarily reflects an upward trend in earnings estimates, which is one of the most powerful forces impacting stock prices. A company's changing earnings picture is at the core of the Zacks rating. The system tracks the Zacks Consensus Estimate -- the consensus measure of EPS estimates from the sell-side analysts covering the stock -- for the current and following years ...