Modiv Industrial Inc Reports Second Quarter 2024 Financial Results

Intellectia.AI2024-08-06

Illustration by Intellectia.AI

Modiv Industrial, Inc. Reports Second Quarter 2024 Financial Results

Modiv Industrial, Inc. (NYSE:MDV), the only public REIT exclusively focused on acquiring industrial manufacturing real estate, announced its operating results for the second quarter ended June 30, 2024.

Key Financial Metrics

Metric	Q2 2024	Q1 2024	Y/Y % Change	Consensus Estimates (Q2 2024)
Revenue	$11.3M	$11.77M	-4%	$11.77M
EPS	$-0.37	$-0.05	Not Provided	$-0.05
AFFO	$3.9M	Not Provided	+17.3%	Not Provided

Interpretation: Modiv Industrial's second-quarter revenue was $11.3 million, falling short of the consensus estimate of $11.77 million and marking a year-over-year decrease due to portfolio disposition. Despite this, the company saw an increase in AFFO by 17.3% year-over-year, reflecting improved operational efficiency and cost management.

Revenue Performance by Segment

Segment	Q2 2024 Revenue	Previous Guidance	Comparison to Guidance
Rental Income	$11.3M	Not Provided	Not Provided

Interpretation: Rental income decreased by $493,000 compared to the previous period due to the elimination of some non-NNN tenant reimbursements following the August 2023 portfolio disposition. However, this was offset by a decrease in property expenses and G&A, showcasing effective expense management.

Operational Data

Metric	Value
Acquisition	$5.2M (Industrial Manufacturing Property)
Repurchase	656,191 Class C units & 123,809 shares

Comments from Company Officers

CEO Aaron Halfacre commented on the state of market volatility and the company's strategic acquisitions and share repurchases. He emphasized Modiv's disciplined approach and patience in navigating economic uncertainties. Halfacre also highlighted an optimistic outlook on their strengthened position and future market potential.

Dividends and Share Repurchase Program

Dividend Yield: 7.79% based on closing price of $14.76 on August 5, 2024.
Share Repurchase Program: Completed $11.544M in share repurchases from First City Investment Group, LLC.

Forward Guidance

Modiv Industrial did not provide explicit forward guidance in the earnings release but emphasized ongoing acquisition activities and potential strategic partnerships.

Stock Price Movement

After Event Stock Price Change: -0.8%

In summary, despite facing a decline in rental income due to previous portfolio dispositions, Modiv Industrial, Inc. demonstrated stronger AFFO and efficient expense management. The company also completed strategic acquisitions and share repurchases, maintaining a solid dividend yield.