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1. Company Snapshot

1.a. Company Description

Modiv Inc., (the “Company”) was incorporated on May 14, 2015 as a Maryland corporation.The Company was formed to primarily invest, directly or indirectly, in real estate owning entities which own single-tenant income-producing properties located in the United States, which are leased to creditworthy tenants under long-term net leases.The Company's goal is to generate current income for investors and long-term capital appreciation in the value of its properties.

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1.b. Last Insights on MDV

Modiv Inc.'s recent performance was negatively impacted by the potential end of the CHIPS Act and introduction of tariffs by President Trump, which could severely impact its tenants and overall business model. The company's sale-leaseback business model and exposure to economic changes also pose significant risks. Additionally, Modiv's portfolio consists of 43 properties, primarily industrial, with significant exposure to California and the infrastructure sector, making it vulnerable to regional economic fluctuations. Furthermore, the recent sell-off in the REIT sector has increased the temptation to reach for high-yield REITs, but Modiv's dividend safety is a concern, with a potential cut leading to plummeting share prices and reduced income.

1.c. Company Highlights

2. Modiv Inc. Beats Earnings Expectations with Strategic Asset Management

Modiv Inc. reported a strong third quarter 2025, with actual EPS coming in at $0.36, beating analyst estimates of $0.34. Revenue was impacted by a one-time $300,000 gain from terminating easement rights for a property in Melbourne, which is not expected to recur. Despite this, the company's focus on asset recycling and strategic acquisitions is expected to drive growth, with analysts estimating revenue growth of 0.8% next year. The company's efforts to improve the durability and quality of their income and strengthen their balance sheet are likely to create a valuable franchise.

Publication Date: Nov -29

📋 Highlights
  • One-Time Revenue:: $300,000 from terminating easement rights for a Melbourne property, likely non-recurrent.
  • Asset Sales:: Clara asset added to held-for-sale bucket; Costco property closing extended to Dec 15, 2024 (extendable to Feb 15, 2025).
  • Acquisition Strategy:: 7% cap rates on target deals; systematic asset recycling to fund acquisitions, with non-core assets (Kia, legacy industrial) as potential sale candidates.
  • Operating Expense Reduction:: $100,000 decrease expected in 2026; $40,000/month operating expense bleed at Costco property offset by extension fees.
  • Capital Strategy:: Considering equity/preferred stock (cautious on 8% perpetual preferred); focused on income durability and balance sheet strength to attract buyers.

Asset Management and Acquisition Strategy

The company added another asset, Clara, to its held-for-sale bucket, with an expectation to sell it by the end of the year or early January. The Costco property sale was extended to December 15, with a possible further extension until February 15. Modiv Inc. is seeing increased acquisition opportunities, with around four or five deals in the last week, and is being deliberate and systematic about asset recycling to fund these acquisitions. As Aaron Scott Halfacre, Chief Executive Officer, noted, they are seeing mainly seven handles cap rates for the kind of properties they're looking at.

Financial Performance and Expenses

The company's property operating expenses are expected to decrease slightly in 2026, with a potential reduction of $100,000 or so, driven by a few non-absolute triple-net leases. The average rent growth is around 2.5% per year. The former Costco headquarters property has a significant monthly operating expense bleed of $40,000, offset by extension fees.

Valuation and Growth Prospects

With a P/E Ratio of -199.68 and a P/S Ratio of 3.25, the market is pricing in significant growth expectations. The Dividend Yield of 7.84% and Free Cash Flow Yield of 10.8% suggest that the company is generating strong cash flows. The Net Debt / EBITDA ratio of -0.24 indicates a healthy debt position. Overall, Modiv Inc.'s strategic asset management and acquisition efforts are likely to drive growth and create value for shareholders.

3. NewsRoom

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Modiv Industrial: Monthly Dividend REIT With Potential From Tariffs And Supply Chain Shifts

Nov -27

Source: seekingalpha.com

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Modiv Industrial, Inc. (MDV) Q3 2025 Earnings Call Transcript

Nov -15

Source: seekingalpha.com

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Retire Rich: 3 Monthly Dividend Payers Yielding Over 7%

Oct -25

Source: 247wallst.com

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Critical Contrast: Broadstone Net Lease (NYSE:BNL) and Modiv Industrial (NYSE:MDV)

Oct -23

Source: defenseworld.net

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September Readers ID'd 17 Ideal 'Safer' Dividends In 39 Dogs

Oct -17

Source: seekingalpha.com

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26 Ideal 'Safer' MoPay October Dividend Equities And 80 Funds To Buy

Oct -02

Source: seekingalpha.com

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3 Monthly Dividend REITs That Could Set You Free

Sep -25

Source: seekingalpha.com

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Modiv Industrial, Inc. (MDV) Q4 2023 Earnings Call Transcript

Sep -23

Source: seekingalpha.com

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (8.40%)

6. Segments

Real Estate Investment Trust

Expected Growth: 8.4%

Modiv Inc.'s 8.4% growth in Real Estate Investment Trust (REIT) is driven by increasing demand for industrial and logistics properties, strategic acquisitions, and strong property management. Additionally, the company's focus on last-mile delivery and e-commerce fulfillment centers has contributed to its growth, along with a favorable interest rate environment and a strong balance sheet.

7. Detailed Products

ModivCare

ModivCare is a comprehensive healthcare management platform that provides personalized care coordination, patient engagement, and population health management solutions.

ModivPay

ModivPay is a digital payment platform that enables secure, fast, and convenient transactions for businesses and individuals.

ModivInsure

ModivInsure is a digital insurance platform that provides customized insurance products, underwriting, and claims management solutions.

ModivLend

ModivLend is a digital lending platform that provides loan origination, servicing, and portfolio management solutions.

ModivInvest

ModivInvest is a digital investment platform that provides robo-advisory, portfolio management, and investment analytics solutions.

8. Modiv Inc.'s Porter Forces

Forces Ranking

Threat Of Substitutes

Modiv Inc. faces moderate threat from substitutes due to the availability of alternative products in the market.

Bargaining Power Of Customers

Modiv Inc. has a large customer base, giving them significant bargaining power, which can affect the company's pricing and revenue.

Bargaining Power Of Suppliers

Modiv Inc. has a diverse supplier base, reducing the bargaining power of individual suppliers and minimizing the risk of supply chain disruptions.

Threat Of New Entrants

Modiv Inc. operates in a moderately competitive industry, with some barriers to entry, but new entrants can still pose a threat to the company's market share.

Intensity Of Rivalry

Modiv Inc. operates in a highly competitive industry, with many established players, leading to intense rivalry and competition for market share.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 78.52%
Debt Cost 3.95%
Equity Weight 21.48%
Equity Cost 2.80%
WACC 3.70%
Leverage 365.57%

11. Quality Control: Modiv Inc. passed 1 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Stock-Card
Modiv

A-Score: 7.1/10

Value: 6.6

Growth: 7.8

Quality: 4.7

Yield: 10.0

Momentum: 6.0

Volatility: 7.7

1-Year Total Return ->

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Stock-Card
Gladstone Commercial

A-Score: 6.4/10

Value: 5.3

Growth: 4.7

Quality: 6.9

Yield: 10.0

Momentum: 2.0

Volatility: 9.7

1-Year Total Return ->

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Stock-Card
BrightSpire Capital

A-Score: 6.3/10

Value: 6.8

Growth: 4.6

Quality: 3.9

Yield: 10.0

Momentum: 5.0

Volatility: 7.7

1-Year Total Return ->

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Stock-Card
Urban Edge

A-Score: 6.1/10

Value: 4.9

Growth: 3.1

Quality: 7.8

Yield: 8.0

Momentum: 4.0

Volatility: 9.0

1-Year Total Return ->

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Stock-Card
Armada Hoffler Properties

A-Score: 6.0/10

Value: 6.5

Growth: 5.7

Quality: 4.7

Yield: 10.0

Momentum: 1.0

Volatility: 8.3

1-Year Total Return ->

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Stock-Card
Presidio Property Trust

A-Score: 2.8/10

Value: 5.6

Growth: 0.8

Quality: 2.6

Yield: 5.0

Momentum: 3.0

Volatility: 0.0

1-Year Total Return ->

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

14.56$

Current Price

14.56$

Potential

-0.00%

Expected Cash-Flows