Core Insights - The REITs industry has undergone significant changes over the past five years, with a shift from an era of easy capital to a more discerning investment environment in the post-pandemic era [1] Industry Changes - The transition in the REITs sector indicates that investors are now more selective, reflecting a broader trend in investment behavior following the pandemic [1]

Group 1 - Albert Anthony is a Croatian-American business author and media contributor on investor platforms, with over 1,000 followers on Seeking Alpha [1] - He has a background in IT analysis for Fortune 500 companies and worked in technical support at Charles Schwab in 2021 [1] - Albert Anthony has launched his own equities research firm, Albert Anthony & Company, which operates 100% remotely [1] Group 2 - He is set to release a book titled "Real Estate Investment Trusts (REITs): A Fundamental Analysis" on Amazon in 2025 [1] - Albert Anthony has participated in numerous business and innovation conferences, trade shows, and panel discussions in the EU market, particularly in Croatia [1] - He is currently pursuing the CMSA certification at the Corporate Finance Institute in Vancouver [1] Group 3 - The author does not write about non-publicly traded companies, small cap stocks, or startup CEOs [1] - Albert Anthony & Company is a sole proprietorship registered in Austin, Texas, and does not provide personalized financial advisory or manage client funds [1] - The firm provides general market commentary and research based on publicly available data [1]

Group 1 - The investment group European Small Cap Ideas focuses on high-quality small-cap investment opportunities in Europe, emphasizing capital gains and dividend income for continuous cash flow [1] - The group offers two model portfolios: the European Small Cap Ideas portfolio and the European REIT Portfolio, along with weekly updates and educational content [1] - An active chat room is available for discussions on the latest developments of the portfolio holdings [1] Group 2 - There is a potential for initiating long positions in common and preferred shares in the near future, although not within the next 72 hours [2]

Financial Data and Key Metrics Changes - Revenue for Q2 2025 was $11.8 million, a 4% increase from $11.4 million in the prior year period, primarily due to two industrial manufacturing property acquisitions [4] - Adjusted funds from operations (AFFO) increased by 22% to $4.8 million compared to $3.9 million in the same quarter last year [4] - AFFO per share rose 12% from $0.34 to $0.38, despite a $1.2 million increase in diluted shares outstanding [5] - Cash interest expense decreased by $255,000 compared to the same period in 2024, reflecting a reduction in the weighted average fixed rate from 4.53% to 4.25% [5] Business Line Data and Key Metrics Changes - The portfolio consists of 43 properties with an annualized base rent of $39 million as of June 30, 2025, with 39 industrial properties representing 81% of this amount [6] - The weighted average lease term for the portfolio is 14.4 years, with approximately 29% of tenants having an investment-grade credit rating [6] Market Data and Key Metrics Changes - Total cash and cash equivalents were $5.8 million as of June 30, 2025, with $30 million available to draw on a revolver [6] - The company has $280 million of debt outstanding, with no debt maturities until January 2027 [6] Company Strategy and Development Direction - The company is focusing on asset recycling, planning to sell legacy assets to reinvest in more accretive properties [18][22] - Management is exploring various financing options, indicating a positive lending environment for new term loans or credit facilities [31][34] - The company aims to maintain a disciplined approach to acquisitions, prioritizing smart decisions over rapid growth [10][70] Management's Comments on Operating Environment and Future Outlook - Management expressed frustration with the current market volatility but remains confident in the long-term strategy and the potential for future growth [8][12] - The company is optimistic about the potential for asset recycling to improve financial performance and shareholder value [26][72] - Management noted that while there are challenges in the current environment, they believe the company is well-positioned to navigate these issues [34][70] Other Important Information - The Board of Directors declared a cash dividend of $9.75 for common shares for July, August, and September 2025, representing an annualized dividend rate of $1.17 per share [7] - The company is actively working on lease extensions and has ongoing discussions regarding property sales [50][52] Q&A Session Summary Question: Can you provide more details on asset recycling and the $150 million asset mentioned? - Management indicated that the assets for sale would largely be legacy properties, with some being core and non-core, and emphasized the importance of timing in the sales process [18][19][22] Question: What are the current lending market conditions? - Management noted that the lending environment is favorable, with terms and rates expected to be the same or better than previous loans, and they are exploring various financing options [31][34] Question: Can you explain the increase in income recognized from the joint venture? - The increase reflects the impact of extending a lease, which involves recognizing rent that will be received in the future [40] Question: What is the status of the Calera equipment? - Management stated that the equipment is on the market, and they prefer to sell it rather than lease it, taking an impairment charge to reflect its current value [44][46] Question: How are tariffs impacting tenant discussions? - Management indicated that while there is some delay in capital decisions among tenants, they do not foresee significant negative impacts from tariffs [48][49] Question: Are transformative transactions still being considered? - Management confirmed that transformative transactions are still on the table but emphasized the need for the right environment to pursue such opportunities [54][56] Question: Is there a risk regarding the zoning for the KB Homes property? - Management believes the delay is due to bureaucratic processes and does not foresee significant risks regarding zoning approvals [74][76]

Group 1 - The preferred stock of Modiv Industrial (MDV.PR.A) was recommended for holding due to its above-average dividend yield of 7.5% and a margin of safety [1] - Since the recommendation, the stock has outperformed the market [1] Group 2 - The author has a background in chemical engineering and economics, and has written multiple books on investing and mathematics [1] - The author emphasizes the use of fundamental and technical analysis in investment decisions, primarily utilizing options for both investing and trading [1]