MODIV INDUSTRIAL, INC. Q2 FY2025 earnings call

• Revenue increased 4% primarily due to 2 industrial manufacturing property acquisitions since June 30, 2024.
• AFFO increased 22% with increases in cash rents and decreases in G&A and preferred stock dividends.
• Declared a cash dividend for common shares of $0.0975 for July, August, and September 2025, annualizing to $1.17 per share.
• Discussed asset recycling of legacy assets, including noncore properties like the one under contract with KB Homes and the OES property with an appraisal process.
• TIC discussions ongoing with the goal of ending the TIC, with no further pickup expected after the recent lease extension.
• Impairment charge on equipment, with plans to sell it to free up capital.
• Assessed tariff impact as not disproportionately affecting the portfolio, with positive outlook if China deal solidifies.
• Focus on increasing shareholder value through disciplined decision-making and rightful actions.

Revenue for the second quarter was $11.8 million, up 4% from the prior year period. Second quarter adjusted funds from operations (AFFO) was $4.8 million, up 22% from the year ago quarter. AFFO per share increased 12% to $0.38 per share. The portfolio consists of 43 properties with a weighted average lease term of 14.4 years. Annualized base rent totals $39 million, with 39 industrial properties representing 81% of ABR and 4 noncore properties representing 19% of ABR.

• Intends to recycle legacy assets to potentially drive accretion and recover share price.
• Encouraged by lending market discussions with positive terms and structure expected, with no negative indicators currently.
• Goal to end the TIC in a timely manner, changing the dynamic but no further pickup expected after recent lease extension.

• Potential delay in Costco lease extension due to city bureaucracy, though probability is low.
• Probabilistic risk of not closing the Costco lease extension deal, but considered on tail.

Q: On $150 million recyclable assets, clarification on Costco property?

A: Costco property is not in the $150 million recyclable assets, refers to legacy properties that don't fit box but are valuable, preserving optionality on disclosure.