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Modiv(MDV) - 2024 Q3 - Quarterly Results
MDVModiv(MDV)2024-11-06 11:30

Financial Performance - Third quarter AFFO was 0.34pershare,apennyhigherthanthesameperiodlastyearandaboveconsensusestimates[9].−Thecompanyreportedanetlosspershareattributabletocommonstockholdersof0.34 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)forthequarter,comparedtoaprofitof(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,comparedtoaprofitof1,694,965, 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),adecreasefrom(0.18), a decrease from 0.03 in the previous quarter[36]. - The company experienced a net loss of 1,047,736inthethirdquarterof2024,comparedtoanetincomeof1,047,736 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,downfrom2,215,511, 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 3,701,229forthethirdquarterof2024,comparedto3,701,229 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)foreachofthelastfivequarters[40].−Thecompanyreportedagainonthesaleofrealestateinvestmentsof(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)inthesamequarterofthepreviousyear[20].RevenueandExpenses−RentalincomeforthethreemonthsendedSeptember30,2024,was(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 12,500,338forthesameperiodin2023[20].−Totalincomeforthequarterwas12,500,338 for the same period in 2023[20]. - Total income for the quarter was 11,655,363, reflecting a decline of 7.3% from 12,566,329year−over−year[20].−Totalexpensesincreasedto12,566,329 year-over-year[20]. - Total expenses increased to 6,927,563, up 44.5% from 15,575,404inthesamequarterlastyear[20].−Operatingincomeforthequarterwas15,575,404 in the same quarter last year[20]. - Operating income for the quarter was 4,899,801, down from 6,658,980inthepreviousyear,representingadecreaseof26.56,658,980 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].−Theleverageratioremainedstableat48290,089,471[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 134,273,574across1,730,704squarefeet[59].−Thecompanydisposedofpropertiestotaling405,025squarefeetforatotaldispositionpriceof134,273,574 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 524,661,932to524,661,932 to 531,540,076, an increase of approximately 1.7%[51]. - The company has completed significant improvements to previously acquired properties, with 1,600,144deployedasofSeptember30,2024[59].TenantandLeaseInformation−Thetop20tenantscontribute1,600,144 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].−Thelargesttenant,Lindsay,contributes30,796,690[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 6,824,847asofSeptember30,2024,comparedto6,824,847 as of September 30, 2024, compared to 3,129,414 at December 31, 2023[45]. - Distributions payable decreased significantly from 12,174,979to12,174,979 to 1,962,762, a reduction of about 83.9%[51]. - Total liabilities decreased from 305,773,922to305,773,922 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].