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Modiv Inc. Class C (MDV)
:MDV
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Modiv
(NYSE:MDV)
65Neutral
Positive Factors
Lease Extensions
The company extended leases for properties in San Diego and San Carlos, indicating long-term tenant commitments.
Strategic Asset Location
The company's assets are strategically located in California and the Sunbelt region, areas experiencing net migration.
Negative Factors
Leverage Concerns
The company has slightly elevated leverage with debt and preferred to total market cap at approximately 66.5%.
Modiv (MDV) vs. S&P 500 (SPY)
Market Cap
$157.07M
Dividend Yield7.3%
Average Volume (3M)39.80K
Price to Earnings (P/E)75.7
Beta (1Y)0.11
Revenue Growth-2.60%
EPS GrowthN/A
CountryUS
Employees12
SectorReal Estate
Sector Strength73
IndustryREIT - Diversified
Share Statistics
EPS (TTM)0.23
Shares Outstanding9,966,527
10 Day Avg. Volume40,896
30 Day Avg. Volume39,800
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)3.29
Price to Cash Flow (P/CF)7.20
P/FCF Ratio7.10
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$18.50Price Target Upside17.39% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering2
Modiv Business Overview & Revenue Model
Company DescriptionModiv 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.
How the Company Makes MoneyModiv generates revenue primarily through rental income from its portfolio of commercial properties. The company employs a net lease structure, where tenants are responsible for paying a significant portion of the property's operating expenses, such as maintenance, taxes, and insurance, in addition to the base rent. This model ensures predictable income for Modiv, as it reduces the variable costs associated with property management. Additionally, Modiv may engage in property sales or refinancing to unlock value from its assets, further contributing to its earnings. Key partnerships with real estate brokers, property managers, and institutional investors also support Modiv's growth and revenue generation.
Modiv Financial Statement Overview
Summary
Modiv has demonstrated strong revenue growth and operational efficiency but struggles with consistent profitability. The recent elimination of debt enhances financial stability, and cash flow management is robust, though free cash flow growth is inconsistent.Income Statement
Modiv has shown growth in revenue over the years, albeit with some volatility. The gross profit margin remains strong, indicating efficient cost management, with a notable improvement in EBIT and EBITDA margins annually. However, net income has been inconsistent, showing significant losses in several years, which affects overall profitability.64
Positive
Balance Sheet
The balance sheet indicates a solid equity position with a debt-free status in the latest year, which significantly improves financial stability. The return on equity has been erratic due to fluctuating net income. The equity ratio is healthy, reflecting strong financial footing, although past years show a reliance on debt financing.72
Positive
Cash Flow
Cash flow from operations has steadily improved, translating into positive free cash flow, which demonstrates good cash generation capacity. The operating cash flow to net income ratio is favorable, suggesting effective conversion of income into cash flow. However, fluctuations in free cash flow growth indicate potential volatility.75
Positive
| Breakdown | ||||
| Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|
| Income Statement | Total Revenue | |||
| 46.50M | 46.94M | 46.17M | 36.22M | 38.90M |
| Gross Profit | ||||
| 42.88M | 41.78M | 37.27M | 29.53M | 31.90M |
| EBIT | ||||
| 21.98M | 2.31M | 12.53M | 2.20M | 5.43M |
| EBITDA | ||||
| 42.47M | 23.43M | 27.46M | 32.55M | 21.65M |
| Net Income Common Stockholders | ||||
| 2.33M | -6.61M | -19.93M | -8.58M | -62.32M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 11.53M | 3.13M | 8.61M | 55.97M | 8.25M |
| Total Assets | ||||
| 507.83M | 530.90M | 456.03M | 428.49M | 407.43M |
| Total Debt | ||||
| 279.90M | 279.73M | 195.45M | 181.95M | 191.51M |
| Net Debt | ||||
| 268.38M | 276.60M | 186.85M | 125.98M | 183.27M |
| Total Liabilities | ||||
| 293.78M | 305.77M | 214.99M | 206.06M | 217.18M |
| Stockholders Equity | ||||
| 190.15M | 144.44M | 159.75M | 171.83M | 139.65M |
| Cash Flow | Free Cash Flow | |||
| 18.24M | 16.58M | 10.15M | 9.53M | 5.01M |
| Operating Cash Flow | ||||
| 18.24M | 16.58M | 16.65M | 9.73M | 5.58M |
| Investing Cash Flow | ||||
| 8.39M | -93.60M | -61.06M | 21.83M | 24.78M |
| Financing Cash Flow | ||||
| -18.23M | 71.54M | -5.38M | 18.47M | -28.91M |
Modiv Technical Analysis
Positive
15.76
Price Trends
15.06
Positive
15.18
Positive
15.02
Positive
Market Momentum
0.22
Negative
59.10
Neutral
60.09
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For MDV, the sentiment is Positive. The current price of 15.76 is above the 20-day moving average (MA) of 15.57, above the 50-day MA of 15.06, and above the 200-day MA of 15.02, indicating a bullish trend. The MACD of 0.22 indicates Negative momentum. The RSI at 59.10 is Neutral, neither overbought nor oversold. The STOCH value of 60.09 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for MDV.
Modiv Risk Analysis
Modiv disclosed 58 risk factors in its most recent earnings report. Modiv reported the most risks in the “Finance & Corporate” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Modiv Peers Comparison
Overall Rating
UnderperformOutperform
Sector (61)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
80 Outperform | $50.48B | 57.67 | 2.40% | 5.53% | 29.49% | -22.38% | |
79 Outperform | $7.91B | 19.55 | 9.32% | 5.48% | 4.97% | -0.26% | |
79 Outperform | $2.87B | 26.87 | 7.43% | 4.86% | 6.96% | -0.41% | |
78 Outperform | $3.93B | 32.23 | 6.11% | 6.58% | -1.01% | -18.46% | |
72 Outperform | $13.72B | 30.00 | 5.38% | 5.57% | -9.09% | -36.58% | |
65 Neutral | $157.07M | 75.70 | 3.49% | 7.30% | -2.60% | ― | |
61 Neutral | $4.70B | 17.65 | -3.00% | 11.43% | 5.99% | -19.07% |
* Real Estate Sector Average
Performance Comparison
MDV
Modiv
16.05
0.71
4.63%
NNN
National Retail Properties
42.65
2.59
6.47%
O
Realty Income
58.01
7.22
14.22%
WPC
W. P. Carey Inc.
63.11
10.32
19.55%
EPR
EPR Properties
52.61
13.82
35.63%
FCPT
Four Corners Property
28.70
5.51
23.76%
Modiv Earnings Call Summary
Earnings Call Date: Mar 4, 2025 | % Change Since: 2.01% | Next Earnings Date: May 19, 2025
Earnings Call Sentiment Neutral
The earnings call presented a mixed picture. While there were notable achievements in AFFO performance, cost management, and interest rate handling, challenges such as revenue decline, high leverage, and market uncertainty were significant. The sentiment leans towards cautious optimism but is tempered by existing challenges.Highlights
Solid AFFO Performance
Fourth quarter Adjusted Funds From Operations (AFFO) was $4.1 million, translating to $0.37 per diluted share, which is $0.08 above the average analyst estimates.
Successful Cost Management
A $300,000 decrease in general and administrative expenses was achieved primarily due to reduced employee compensation.
Interest Rate Management
100% of indebtedness as of December 31, 2024, is at a fixed interest rate with a weighted average interest rate of 4.27% due to interest rate swap agreements.
Dividend Yield
A cash dividend for common shareholders was declared, representing an annualized dividend rate of $1.17 per share, yielding 7.5% based on the stock price.
Acquisition Opportunities
Multiple opportunities for property expansion and development were identified, with potential for significant AFFO growth.
Lowlights
Revenue Decline
There was a $400,000 revenue decrease from property sold in the first quarter of 2024.
Debt and Leverage Concerns
Total debt outstanding was $280 million, with a leverage ratio of 47.6% at year-end.
Potential Asset Sales
Several properties are in the process of being sold, which may impact future revenue.
Market Uncertainty
The economic landscape remains opaque with oscillations between fear and euphoria, impacting acquisition strategies.
Company Guidance
In the fourth quarter and full year 2024 earnings call for Modiv Inc., management provided key financial metrics and guidance for the upcoming year. Revenue for the fourth quarter was reported at $11.7 million, with an adjusted funds from operations (AFFO) of $4.1 million, equating to $0.37 per diluted share. For the full year, the company achieved rental income of $46.5 million and an AFFO of $14.99 million, or $1.34 per diluted share. The company's portfolio, comprising 43 properties, generated an annualized base rent of $39.6 million, with a weighted average lease term of 13.8 years. As of the end of 2024, Modiv's total cash and cash equivalents stood at $11.5 million, with $280 million in debt, fully hedged at a fixed interest rate of 4.27%. The company also reduced its revolving credit facility from $150 million to $30 million to save on unused fees. Modiv declared a cash dividend of $0.0975 per share for the first quarter of 2025, representing an annualized yield of 7.5% based on the stock's closing price of $15.55 as of March 3, 2025. The management emphasized their cautious approach to acquisitions, focusing on opportunities that align with long-term strategic goals and maintaining a strong balance sheet to navigate the current economic landscape.Modiv Corporate Events
Dividends
Modiv Announces Quarterly Dividend and Monthly Distributions
Positive
Mar 13, 2025
On March 13, 2025, Modiv Industrial announced the declaration of a quarterly dividend for its Series A Preferred Stock and monthly distributions for its Class C common stock for April, May, and June 2025. The quarterly dividend for the Series A Preferred Stock is set at $0.4609375 per share, payable on April 15, 2025, while the monthly distribution for the common stock is $0.0975 per share, maintaining an annualized rate of $1.17. These announcements reflect Modiv’s ongoing commitment to providing consistent returns to its shareholders, with the common stock yielding a 7.67% dividend based on the closing price as of March 12, 2025.
Business Operations and StrategyFinancial Disclosures
Modiv Reports Strong 2024 Financial Results and Growth Plans
Positive
Mar 4, 2025
On March 4, 2025, Modiv Industrial announced its financial results for the fourth quarter and full year ending December 31, 2024. The company reported a full-year net income of $2.3 million and an AFFO of $14.99 million, surpassing street expectations. Modiv also highlighted its strategic approach to acquisitions and cost savings, securing over $1.4 million in cash expense savings for 2025. The company remains focused on disciplined growth and efficiency, with plans to enhance shareholder value through prudent acquisitions and operational improvements.
Financial Disclosures
Modiv Announces 2024 Financial Results Release Date
Neutral
Feb 4, 2025
On February 4, 2025, Modiv Industrial, Inc. announced it will release its fourth quarter and full-year financial results for 2024 on March 4, 2025. The company also disclosed its estimated net asset value (NAV) per share as of December 31, 2024, which is $24.11. Modiv engaged Cushman & Wakefield, an independent valuation firm, for the appraisal of its real estate assets. This valuation will inform stakeholders about the fair value of the company’s assets, though it is worth noting that NAV calculations are not based on GAAP and are subject to significant professional judgment. The announcement does not impact the company’s obligation to update this information in future disclosures.
Executive/Board ChangesBusiness Operations and Strategy
Modiv Announces Executive Incentive Plan Updates
Neutral
Feb 4, 2025
On February 3, 2025, Modiv Industrial, Inc. updated its Limited Partnership Agreement to include new Class X units, which convert into Class C units after certain conditions are met. The company granted these units as part of its incentive plan to executives Aaron S. Halfacre, Raymond J. Pacini, and John C. Raney to align their interests with shareholders and ensure retention. These grants come with specific vesting conditions and are part of a broader strategy to maintain competitive executive compensation.
Dividends
Modiv Announces 2024 Dividend Tax Treatment Details
Neutral
Jan 16, 2025
On January 16, 2025, Modiv Industrial announced the tax treatment of dividends for the year 2024. The total common stock distributions were $2.31480, with an ordinary income portion of 16.13% and non-taxable distributions making up 83.87%. The Series A preferred stock dividends amounted to $1.84375, entirely considered ordinary income. Shareholders are advised to consult with tax advisors regarding their specific tax situations.
Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.