Modiv(US:MDV)2025-11-14 21:09Financial 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].