MODIV INDUSTRIAL, INC. Q2 FY2024 earnings call

• Ray Pacini provided an overview of Q2 operating results, including rental income, AFFO, cash interest expense, and portfolio details. • Aaron Halfacre mentioned the declaration of a cash dividend per common share of approximately $0.095 for July-September 2024, annualized at $1.15 per share. • Discussed the balance sheet, including cash and cash equivalents of $18.9 million, debt of $280 million, and plans to enter new interest rate swap agreements by December 31, 2024.

Rental income for the second quarter was $11.3 million, a 4% decrease from the prior year period. Adjusted funds from operations (AFFO) was $3.9 million, up 17% from the year ago quarter, with AFFO per share at $0.34. The portfolio has 43 properties with a weighted average lease term of 13.6 years. Annualized base rent for the 43 properties totaled $40.5 million, with 39 industrial properties representing 76% of ABR and 4 non-core properties representing 24% of ABR.

• Intends to enter new swap agreements on or before December 31, 2024 to maintain full cash hedge position. • Declared a cash dividend per common share of approximately $0.095 for July-September 2024, annualized yield of 7.9%.

Q: Gaurav Mehta asked about the size of the JV and management fees for the JV.

A: Aaron Halfacre stated he won't disclose JV portfolio stats at this stage and mentioned the JV is a participation where they'll ratably participate in income and expenses, not seeking management fees.

Q: Gaurav Mehta asked about the transaction market for industrial manufacturing.

A: Aaron Halfacre said the market has been choppy, with one-offs, varying motivations for deals, and narrowing universe due to their picky criteria.

Q: Rob Stevenson asked about the expected timing of the non-Miami-centric Battleship deal.

A: Aaron Halfacre said it would likely happen before Q3.

Q: Rob Stevenson asked about role in managing JV assets.

A: Aaron Halfacre said they'll plug assets into their ecosystem and manage day-to-day.

Q: Rob Stevenson asked about First City's stake and KIA asset monetization.

A: Aaron Halfacre said First City has only common shares now and KIA asset monetization isn't near term.

Q: Rob Stevenson asked about Costco deal timing.

A: Aaron Halfacre said it's a '25 event.

Q: Rob Stevenson asked about board changes.

A: Aaron Halfacre said CEO and Chairman roles will be separate, and board changes will be addressed in proxy.

Q: Bryan Maher asked about strategic partnerships and disposition pipeline.

A: Aaron Halfacre said one partnership can be fast-tracked and there are no properties held for sale currently.

Q: Sean Hostert asked about tenant credit exposure and asset pricing.

A: Aaron Halfacre said credit profile is considered but IG doesn't always fit, and pricing is choppy case-by-case.