Modiv Industrial, Inc. reported a net loss of $2.6 million for the fiscal year ending December 31, 2025, compared to a net income of $2.8 million in the previous year. The company's total revenue decreased to $46.4 million from $46.8 million, primarily due to the expiration of leases for key tenants, including Costco and Solar Turbines. Rental revenue specifically fell to $45.8 million from $46.5 million, reflecting a decline in tenant reimbursements and the impact of lease expirations. The company also recorded an impairment charge of $5.8 million related to its property in Saint Paul, Minnesota, which contributed to the overall loss.
In terms of operational changes, Modiv continued its strategic shift towards industrial properties, with 82% of its annual base rent (ABR) now derived from industrial assets. The company completed the acquisition of an industrial property in Florida for $6.1 million and sold two properties, including an office building in Issaquah, Washington, for $26 million. As of December 31, 2025, Modiv's portfolio consisted of 42 properties, with a total occupancy rate of 98%. The company also acquired the remaining 27.3% interest in a Santa Clara, California property, achieving full ownership.
Modiv's financial position showed a total asset value of $476.5 million, down from $507.8 million in 2024. The company had a leverage ratio of 45.1% as of the end of 2025, with outstanding mortgage notes payable of $12.1 million and a term loan balance of $249.5 million. The company has a credit facility that provides a $280 million line of credit, which includes a $30 million revolving line and a $250 million term loan. As of March 2026, Modiv had $30 million of borrowing capacity available under this facility.
Looking ahead, Modiv plans to continue focusing on acquiring industrial manufacturing properties while reducing its exposure to non-core assets. The company has identified 12 to 15 properties for potential sale over the next two years, including legacy office and retail properties. Modiv's management remains cautious about market conditions, particularly regarding inflation and interest rates, which could impact future cash flows and the ability to pay distributions. The company has increased its monthly distribution rate to $0.10 per share, reflecting a commitment to providing returns to shareholders while navigating the evolving economic landscape.
About Modiv Industrial, Inc.
Modiv Industrial, Inc. focuses on acquiring and managing industrial manufacturing real estate properties. It aims to generate income through long-term leases with tenants, primarily serving the industrial sector. The company seeks growth via property acquisitions while reducing non-core assets. Its business model emphasizes real estate investment, portfolio repositioning, and strategic portfolio management within the commercial real estate market.
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