Modiv Industrial Increases Dividend and Provides Strategic Update

Core Viewpoint - Modiv Industrial, Inc. is focused on increasing shareholder value through higher dividends and share prices, with a commitment to improving Adjusted Funds from Operations (AFFO) as a key metric for financial health [2][3][8] Financial Performance - The company has achieved over $2 million in additional AFFO through contractual rent increases, expense reductions, and asset recycling, leading to a $0.03 increase in the annual dividend to $1.20 per share [3][22] - The current monthly distribution of $0.10 per share reflects an annualized yield of 8.15% based on a closing price of $14.72 [22] Portfolio Transformation - Modiv's portfolio transformation began over five years ago, reducing non-industrial exposure from approximately 50% office and 40% industrial to a more focused industrial portfolio [5] - Recent sales include an office asset in Issaquah, WA, and a vacant asset in St. Paul, MN, for $4.1 million, with plans to sell additional office and legacy industrial assets [5][6] - The company aims to recycle a minimum of twelve assets within 18 to 24 months to maximize AFFO and improve its balance sheet [6][10] Strategic Focus - The company will maintain a disciplined approach to expense control and contractual rent increases while accelerating asset recycling to enhance shareholder value [4][10] - Modiv has opted not to raise capital at current low share prices to avoid dilutive equity, focusing instead on internal growth and maximizing existing resources [9][11] Leadership Changes - The Chief Financial Officer, Ray Pacini, will resign after the filing of the 2025 10-K, transitioning to an Executive Vice President role, with John Raney appointed as the new CFO [19][20] Future Outlook - The company has secured an extension on its term loan maturity to July 2028, providing time to complete its transformation and refinance debt [15] - Plans to retire preferred equity using asset recycling proceeds are expected to further enhance AFFO per share and strengthen the balance sheet [16][17]