Modiv Industrial (MDV) Q3 2024 earnings summary

Executive summary

• Portfolio consists of 43 properties, 77% industrial by ABR, with 98% occupancy and a 13.8-year weighted average lease term as of September 30, 2024.

• Rental income for Q3 2024 was $11.6M, down from $12.5M year-over-year due to property dispositions, partially offset by a new acquisition.

• AFFO for Q3 2024 was $3.7M, or $0.34 per share, up from $0.33 per share, aided by share repurchases and exceeding consensus expectations.

• Board declared a cash dividend increase to $1.17 per share annualized, up 1.7%, effective January 2025.

• Continued transformation toward a 100% industrial portfolio, reducing non-core assets.

Financial highlights

• Net loss attributable to common stockholders for Q3 2024 was $1.5M (EPS $(0.18)), improved from $(6.5)M (EPS $(0.86)) in Q3 2023.

• FFO for nine months was $11.7M ($1.04/share), up from $7.8M ($0.71/share) in 2023; AFFO was $10.9M ($0.97/share), up from $10.2M ($0.92/share).

• Interest expense rose to $6.1M in Q3 2024, mainly due to swap losses and higher debt balances.

• Adjusted EBITDA for Q3 2024 was $9.65M, up from $8.47M in Q3 2023.

• Annualized base rent for the portfolio is $40.2M as of September 30, 2024.

Outlook and guidance

• Management is focused on closing the UPREIT transaction for a Jacksonville, FL property, potentially issuing $6M in OP units at $17.00 per share for an unlevered, accretive acquisition.

• No debt maturities before January 2027; 100% of $281M debt is fixed rate at 4.52%.

• Adequate liquidity expected for the next 12 months and beyond, with $150M available under the credit facility.

• Growth will be disciplined and capital mindful, with no plans to take on additional debt.

• Targeting a 100% industrial manufacturing property portfolio over the intermediate term.