Modiv(US:MDV)2023-02-25 15:39Financial Data and Key Metrics Changes - The full year adjusted funds from operations (AFFO) grew by 45% to $16.6 million or $1.63 per fully diluted share [5] - Total revenue increased by 22% to $46.2 million compared to $37.9 million in 2021 [5][27] - Fourth quarter AFFO was $6.9 million or $0.68 per diluted share, more than double the AFFO of $2.4 million or $0.27 per share reported in the fourth quarter of 2021 [24] - General and administrative (G&A) expenses for the full year decreased by $1.9 million to $7.8 million from $9.7 million in 2021 [9][26] Business Line Data and Key Metrics Changes - The company acquired over $162 million of real estate properties and sold over $70 million of non-core legacy assets [5] - The weighted average lease term nearly doubled to 11.9 years [5] - Property expenses for the fourth quarter were $2.1 million, an increase from $1.6 million in the prior year [28] Market Data and Key Metrics Changes - The company decreased its office exposure by nearly 30% [5][30] - The portfolio consisted of 46 properties located in 17 states, with approximately 3.2 million square feet of aggregate leasable space, which was 100% leased [30] Company Strategy and Development Direction - The company aims to become a pure-play industrial manufacturing REIT, focusing on increasing exposure to manufacturing assets [15][16] - The company plans to enhance the delineation and reporting of non-core and legacy assets from its core portfolio [8] - The company anticipates a robust acquisition volume of at least $100 million of industrial manufacturing properties in 2023 [8] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in executing their plan and delivering better results in 2023 [20] - The company is navigating a high market and interest rate volatility environment but remains committed to its investment discipline [7] - Management noted that the growing importance of U.S. industrial manufacturing facilities presents tremendous long-term opportunities [16] Other Important Information - The company reported a leverage ratio of 38% as of December 31, 2022, with total cash and cash equivalents of $8.6 million [18][32] - The weighted average interest rate on total debt outstanding was 4.03% as of December 31, 2022 [32] - The Board of Directors declared a cash dividend per common share of approximately $0.96 for the first quarter of 2023, representing an annualized dividend rate of $1.15 per share [32] Q&A Session Summary Question: Can you provide any color on the investment proposals from institutional investors? - Management stated that they have received multiple interests but did not provide specific details on the proposals [37] Question: What should we expect in terms of timing on dispositions over the course of the year? - Management indicated that the bulk of dispositions will occur in the second half of the year, mindful of AFFO [42] Question: Are you still seeing a buyer-seller disconnect on the industrial side in terms of cap rates? - Management confirmed that there was a significant disconnect in the fourth quarter, but noted that the current inventory seems to need to close, indicating a shift in market dynamics [63]