© Reuters.
NEW YORK – Modiv Industrial Inc (NYSE: MDV), a player in the industrial real estate sector, today disclosed its financial results for the third quarter of 2023. The company reported an increase in rental income to $12.5 million, up from $10.3 million in the same quarter last year. However, it also faced a net loss of $6.9 million, which was primarily attributed to an $8.5 million stock compensation expense.
Despite the net loss, MDV has shown proactive asset management since its listing on the New York Stock Exchange. The company’s strategic moves have included the acquisition of $214 million worth of industrial assets and the disposal of $120 million in non-industrial assets. The CEO highlighted the balanced approach taken towards these dispositions.
In terms of capital strategy, MDV has maintained a conservative stance with less than $285 million in fixed-rate debt. This has contributed to a debt-to-asset ratio of 48% and a debt service coverage ratio of 2.3 times. Looking ahead, the company is actively exploring strategic partnerships and merger and acquisition (M&A) opportunities, currently underwriting five deals that are valued at over $2.4 billion.
The firm’s financial health is underscored by its impressive dividend yield of 7.77%, with an annual cash dividend payment of $1.15 per share. This is backed by a track record of 87 consecutive distributions totaling more than $60 million. Additionally, Modiv Industrial’s investor outreach efforts have borne fruit, increasing trading volume by 59% and achieving a 26% positive relative performance when measured against the Nareit All Equities Index.
While market uncertainties have precluded MDV from providing formal guidance for 2024, the company’s stated focus remains on portfolio consolidations, M&A activities, and disciplined capital management to navigate through challenging economic conditions.
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