MODIV INDUSTRIAL, INC. Q3 FY2025 earnings call

• Aaron mentioned waiting until later in earnings season to observe market trends. • Noted recent acquisition opportunities, with quantity increasing but quality still challenging. • Discussed asset recycling considerations, noting IRS rules on transaction limits. • Commented on REIT market dynamics, including preferred stocks and the need for broader institutional love for big REIT names to drive share price up. • Spoke about the company's optimism despite market volatility, citing improved balance and AFFO.

No detailed financial performance by product segments provided in the transcript, so no specific absolute terms or revenue contribution percentages for segments.

• No specific forward-looking financial targets or revised guidance provided. • Expressed optimism about future market conditions once easing is observed, but no quantitative guidance.

• Market volatility and Fed policy impact on REIT pricing. • Potential issues with asset recycling compliance if exceeding IRS transaction limits without proper exemptions.

Q: Were there any onetime revenue in your other property income, and how should we think about that going forward?

A: It was a $300,000 fee from terminating easements related to a property in Melbourne Space Coast, a one-time event.

Q: Added asset to held for sale bucket, color on what's being sold?

A: Clara is held for sale, expected to be sold by end of year or early January.

Q: Costco property, KB Home extension, will it close?

A: Extended to Dec 15, next extension to Feb 15, but expects to close by Dec 15.

Q: Acquisition opportunities, current viewpoint?

A: More acquisition opportunities seen in last week, with quantity increasing though quality is still challenging.

Q: Cap rates for target properties?

A: Mainly seven handles, some eight.

Q: Asset recycling for acquisitions?

A: Deliberate and systematic, considering IRS rules on transactions to avoid being deemed a trader.

Q: Sources of external growth capital?

A: Wait for market clarity on REITs and share price to access capital, as not there yet.

Q: Same store rental income?

A: Not calculated, but average rent growth is 2.5% annually.

Q: Solar property resolution?

A: Construction underway, expected to be sold in first quarter 2026.