Modiv Industrial (MDV) Q2 2024 earnings summary

Executive summary

• Second quarter 2024 rental income was $11.3 million, down 4% year-over-year due to property sales, partially offset by new industrial acquisitions and lower expenses.

• AFFO for Q2 2024 rose 17.3% year-over-year to $3.9 million, driven by lower property and G&A expenses.

• Portfolio consists of 43 properties (post-July 2024), 76% industrial by ABR, with 98% occupancy and a 13.6-year weighted average lease term.

• Completed a $5.2 million acquisition of an industrial property in Tampa, FL, with a 20-year lease and 8% initial cap rate.

• Repurchased 780,000 shares and 656,191 Class C units for $11.5 million, accretively reducing share count and increasing AFFO per share.

Financial highlights

• Q2 2024 rental income was $11.3 million, down $0.5 million year-over-year; six-month rental income up 5% to $23.2 million.

• Q2 2024 AFFO was $3.9 million; Q2 2024 FFO per diluted share was $0.41; AFFO per diluted share was $0.34, pro forma $0.37 after repurchase.

• Q2 2024 net income attributable to common stockholders was $1.26 million; Q2 2023: $4.63 million (prior year included $3.2 million gain on sale).

• Q2 2024 property expenses fell 55% year-over-year; G&A expenses down 11% year-over-year.

• Dividend yield stands at 7.79% as of August 5, 2024.

Outlook and guidance

• No properties currently held for sale, but non-core and select industrial assets remain recycling candidates.

• No leases expiring in the next 12 months; focus remains on industrial acquisitions and non-core asset sales.

• Entered non-binding LOI for a JV to acquire a minority stake in an industrial portfolio; anticipated closing before end of Q3 2024.

• Monetization of the Kia asset not expected near term; Costco disposition likely in 2025.

• Adequate liquidity expected for the next 12 months and beyond, with $150 million undrawn credit facility.