Modiv Industrial Reports Improved Profitability, Net Income Turnaround in Q3 2024

Modiv Industrial, Inc. reported its financial results for the third quarter and nine months ended September 30, 2024, highlighting significant changes in revenue, profitability, and strategic developments compared to the previous fiscal period.

For the three months ended September 30, 2024, rental income decreased to $11.6 million from $12.5 million in the same period of 2023, primarily due to property dispositions. Total income for the quarter was $11.7 million, down from $12.6 million year-over-year. However, total expenses significantly decreased to $6.9 million from $15.6 million, leading to an operating income of $4.9 million, a notable recovery from an operating loss of $4.7 million in Q3 2023. Despite this improvement, the company reported a net loss of $1.0 million for the quarter, an improvement from a net loss of $6.9 million in the prior year.

For the nine months ended September 30, 2024, Modiv reported a net income of $4.9 million, a substantial turnaround from a net loss of $6.9 million in the same period of 2023. The net income attributable to common stockholders was $1.7 million, compared to a net loss of $8.0 million in the previous year. Basic net income per share attributable to common stockholders improved to $0.19 from a loss of $1.06.

The company’s total real estate investments, net, decreased to $477.7 million as of September 30, 2024, from $495.4 million at the end of 2023. Total assets also declined to $507.4 million from $530.9 million. However, cash and cash equivalents increased significantly to $6.8 million from $3.1 million at the end of 2023.

Strategically, Modiv completed the acquisition of an industrial manufacturing property in Tampa, Florida, for $5.1 million in July 2024, with a 20-year sale-leaseback agreement. The company also sold two properties during the nine months ended September 30, 2024, for total proceeds of $15.3 million, resulting in net gains of $3.4 million. In contrast, during the same period in 2023, Modiv sold 14 non-core properties for $47.5 million, incurring a net loss of $1.7 million.

The company’s equity rose to $211.8 million as of September 30, 2024, down from $238.4 million at the end of 2023, while total Modiv Industrial, Inc. equity increased to $186.3 million from $154.9 million. The company continues to focus on its strategy of transitioning to a portfolio primarily composed of industrial manufacturing properties, with 77% of its annual base rent derived from industrial properties as of the reporting date.