Modiv Industrial Reports Q1 2026 Revenue of $11.7M, Net Loss of $862K

Modiv Industrial, Inc. reported its financial results for the first quarter of 2026, revealing a total revenue of $11.7 million, a slight decrease from $11.8 million in the same period last year. The company's rental income remained stable at $11.7 million, while other property revenue contributed $11, compared to $66 in the previous year. The company incurred total expenses of $7.5 million, up from $7.1 million in the prior year, primarily due to increased stock compensation and merger-related costs. As a result, Modiv recorded a net loss attributable to common stockholders of $862,000, or $(0.11) per share, compared to a net income of $2,000, or $(0.01) per share, in the first quarter of 2025.

In terms of operational developments, Modiv's real estate investment portfolio consisted of 41 properties, with a net investment value of $449.4 million as of March 31, 2026. The company completed the acquisition of the remaining 27.3% interest in the Santa Clara property, increasing its ownership to 100%. Additionally, Modiv sold a vacant industrial property in Saint Paul, Minnesota for $4.1 million during the quarter. The company’s occupancy rate remained high at 99%, with annual base rent (ABR) totaling $40.1 million, reflecting a diversified tenant base across 14 states.

The company also reported a significant increase in its liabilities, with total liabilities rising to $286.6 million from $274.4 million at the end of 2025. This increase was driven by a rise in mortgage notes payable, which reached $23.7 million, and a credit facility term loan balance of $249.7 million. Modiv's equity decreased to $197.7 million from $202.0 million, attributed to the net loss and preferred stock dividends. The company declared a monthly distribution of $0.10 per share for its common stockholders, consistent with the previous year.

Looking ahead, Modiv is navigating a challenging economic environment characterized by inflation and interest rate volatility. The company has entered into interest rate swap agreements to mitigate risks associated with rising rates, fixing the rate on its term loan at 4.15% for 2026. Furthermore, Modiv announced a merger agreement with Global Net Lease, Inc., which is expected to close in the third quarter of 2026, subject to stockholder approval and customary closing conditions. This strategic move aims to enhance the company's market position and operational scale in the industrial real estate sector.