Modiv(US:MDV)2025-11-14 21:20Financial 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]