Q3 2024 Modiv Industrial Inc Earnings Call Transcript
Key Points
- Modiv Industrial Inc (MDV) maintained a stable adjusted funds from operations (AFFO) of $3.7 million, consistent with the previous year.
- The company successfully extended leases with WSP USA and LabCorp, contributing to an attractive weighted average lease term of 13.8 years for their portfolio.
- 100% of Modiv Industrial Inc (MDV)'s debt is at a fixed interest rate, providing stability against interest rate fluctuations.
- The company declared a cash dividend increase, reflecting confidence in its financial stability and commitment to returning value to shareholders.
- Modiv Industrial Inc (MDV) has a strong focus on industrial manufacturing, positioning itself as a unique player in the REIT market with a pure-play industrial manufacturing portfolio.
- Rental income decreased to $11.6 million from $12.5 million due to the disposition of properties, indicating potential challenges in maintaining revenue levels.
- Interest expense increased significantly due to unrealized non-cash net losses on swap valuations, impacting financial performance.
- The company faces challenges in raising capital due to low institutional ownership and limited stock liquidity, which could hinder growth opportunities.
- Modiv Industrial Inc (MDV) has a high leverage ratio of 48%, which may pose risks in a volatile interest rate environment.
- The company had to table a potentially accretive joint venture deal due to uncertainties and miscommunications, missing out on immediate growth opportunities.
Good day and welcome to Modiv Industrial Inc Q3'24 conference call.
Operator instruction.
I would now like to turn the conference over to John Raney, Chief Operating Officer & General Counsel. Please go ahead, Sir.
Thank you operator and thank you everyone for joining us from Modiv Industrial's third quarter 2024 earnings call. We issued our earnings release before market opened this morning and it's available on our website at Modiv.com.
I'm here today with Aaron Halfacre, Chief Executive Officer and Ray Pacini, Chief Financial Officer. On today's call management will provide prepared remarks and then we will open up the call for your questions before we begin. I would like to remind you that today's comments will include forward-looking statements under the federal security laws. Forward-looking statements are identified by words such as will be intend believe, expect anticipate or other comparable words and phrases statements that are not
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