Modiv(US:MDV)2025-05-06 22:26PART I - FINANCIAL INFORMATION Presents Modiv Industrial, Inc.'s unaudited condensed consolidated financial statements and management's discussion and analysis Financial Statements Presents Modiv Industrial, Inc.'s unaudited condensed consolidated financial statements for Q1 2025, including balance sheets, operations, and cash flows Condensed Consolidated Balance Sheet Highlights (in thousands) | Account | March 31, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Total real estate investments, net | $474,080 | $473,906 | | Cash and cash equivalents | $6,165 | $11,530 | | Total assets | $506,802 | $507,829 | | Total liabilities | $293,426 | $293,779 | | Total equity | $213,376 | $214,050 | Condensed Consolidated Statement of Operations Highlights (in thousands) | Account | Three Months Ended Mar 31, 2025 | Three Months Ended Mar 31, 2024 | | :--- | :--- | :--- | | Total revenue | $11,793 | $11,967 | | Operating income | $4,736 | $6,659 | | Net income | $829 | $4,637 | | Net income attributable to common stockholders | $2 | $2,802 | | Basic Earnings (loss) per share | $(0.01) | $0.33 | Condensed Consolidated Statement of Cash Flows Highlights (in thousands) | Cash Flow Activity | Three Months Ended Mar 31, 2025 | Three Months Ended Mar 31, 2024 | | :--- | :--- | :--- | | Net cash provided by operating activities | $3,050 | $2,987 | | Net cash (used in) provided by investing activities | $(864) | $14,682 | | Net cash used in financing activities | $(7,551) | $(2,393) | | Net (decrease) increase in cash | $(5,365) | $15,276 | Notes to Condensed Consolidated Financial Statements Provides detailed explanations of accounting policies and specific financial statement items, covering real estate investments, debt, derivatives, and equity - The company's portfolio as of March 31, 2025, consists of 43 real estate properties, with approximately 80% of its Annual Base Rent (ABR) derived from 39 industrial properties31 - In Q1 2025, the company acquired one industrial property in Florida for $6.1 million and sold one industrial property in New York for $2.4 million5052 - In January 2025, the company entered into two interest rate swap agreements totaling $250.0 million to fix the SOFR rate at 2.45% for its Term Loan through December 31, 2025, paying a $4.2 million premium to buy down the rate7683 - A stock repurchase program for Series A Preferred Stock was authorized on March 4, 2025. Through March 31, 2025, 205,000 shares were repurchased for $4.9 million38101 Management's Discussion and Analysis of Financial Condition and Results of Operations Management discusses the company's financial condition, operations, and cash flows, covering strategic focus, market uncertainties, liquidity, and non-GAAP measures Overview and Recent Events The company, an internally managed REIT, focuses on acquiring industrial manufacturing properties and has mitigated interest rate risk with new swap agreements - The company's strategic focus is on acquiring critical industrial manufacturing properties to strengthen national supply chains132 - As of March 31, 2025, the portfolio had a weighted average remaining lease term (WALT) of 13.8 years and a 98% occupancy rate138 - To mitigate interest rate risk, the company entered into new swap agreements in January 2025, fixing the rate on its $250 million Term Loan at 4.25% for the year ending December 31, 2025137 Liquidity and Capital Resources The company plans to fund acquisitions and debt payments through bank borrowings, property sales, and equity offerings, maintaining a $280 million credit facility - Primary sources of capital include the credit facility, mortgage debt, property sales, and equity offerings. The company expects to have adequate liquidity for the next 12 months144146 - Through April 30, 2025, the company has raised $10.4 million in net proceeds from its ATM Offering, with $38.1 million remaining available for issuance147 - The company's credit facility maturity was extended to January 2027 for both the Revolver and Term Loan. The Revolver capacity was reduced to $30.0 million to lower unused fees149150 Results of Operations Rental income remained stable in Q1 2025, while stock compensation expense decreased significantly and other expenses increased due to higher interest Comparison of Key Expenses (in millions) | Expense Category | Q1 2025 | Q1 2024 | Change | | :--- | :--- | :--- | :--- | | Rental Income | $11.7 | $11.9 | -1.7% | | General & Administrative | $2.0 | $2.0 | 0% | | Stock Compensation | $0.5 | $1.4 | -65% | | Depreciation & Amortization | $3.8 | $4.1 | -8% | | Other Expense | $3.9 | $2.0 | +95% | - The decrease in stock compensation expense was primarily due to the full vesting of Class P and Class R OP Units at the end of March 2024182 - The increase in Other Expense was mainly driven by a $1.7 million increase in interest expense, reflecting the absence of a prior-year unrealized gain on a derivative and the amortization of new off-market derivative premiums186 Funds from Operations and Adjusted Funds from Operations Reconciles net income to non-GAAP measures FFO and AFFO, with Q1 2025 FFO per share at $0.33 and AFFO per share at $0.33 FFO and AFFO Reconciliation (in thousands, except per share data) | Metric | Three Months Ended Mar 31, 2025 | Three Months Ended Mar 31, 2024 | | :--- | :--- | :--- | | Net income attributable to common stockholders and OP Unit holders | $2 | $3,715 | | FFO attributable to common stockholders and OP Unit holders | $3,925 | $4,846 | | FFO Per Share/Unit (Fully diluted) | $0.33 | $0.43 | | AFFO attributable to common stockholders and OP Unit holders | $3,912 | $3,318 | | AFFO Per Share/Unit (Fully diluted) | $0.33 | $0.29 | Quantitative and Qualitative Disclosures About Market Risk This section is not applicable as the company qualifies as a smaller reporting company - Not applicable as the company is a smaller reporting company199 Controls and Procedures Management concluded the company's disclosure controls and procedures were effective as of March 31, 2025, with no material changes - The CEO and CFO concluded that the company's disclosure controls and procedures were effective as of March 31, 2025201 - No material changes to internal control over financial reporting occurred during the quarter ended March 31, 2025202 PART II - OTHER INFORMATION Presents other information including legal proceedings, risk factors, equity sales, and exhibits Legal Proceedings The company reports it is not a party to any material legal proceedings - As of March 31, 2025, the Company is not a party to any legal proceeding that could have a material adverse effect on its business109203 Risk Factors No material changes to risk factors previously disclosed in the company's Annual Report on Form 10-K - No material changes have been made to the risk factors disclosed in the Annual Report filed on March 4, 2025204 Unregistered Sales of Equity Securities and Use of Proceeds Details the issuance of Class C OP Units for a property acquisition and the repurchase of Series A Preferred Stock - On March 7, 2025, the Company issued 344,119 Class C OP Units valued at $5.9 million in connection with a property acquisition, exempt from registration under Section 4(a)(2) of the Securities Act205 Issuer Purchases of Series A Preferred Stock (March 2025) | Period | Total Shares Purchased | Average Price Paid Per Share | | :--- | :--- | :--- | | March 1-31, 2025 | 205,000 | $23.661 | Other Information No directors or officers adopted or terminated Rule 10b5-1 or non-Rule 10b5-1 trading arrangements in Q1 2025 - No directors or officers adopted or terminated a Rule 10b5-1 or non-Rule 10b5-1 trading arrangement in Q1 2025207 Exhibits Provides an index of exhibits filed with or incorporated by reference into the Quarterly Report on Form 10-Q - The report includes an exhibit index listing all documents filed with the report, such as certifications and XBRL data208211