MDV

Modiv is a sub-$200M industrial net-lease REIT where GAAP earnings understate the business: FY2025 net income fell 82% to $1.07M and diluted EPS was -$0.31, but that is dominated by $15.1M of depreciation and preferred distributions, not operating collapse. The truer gauges — 34.1% operating margin and $15.0M of operating cash flow (down 17.9%) — show a still-cash-generative but no-longer-growing portfolio. Revenue has flatlined for three years ($47.2M → $46.8M → $46.4M), so the story is durability, not growth, and management's onshoring/AFFO-growth ambition is aspirational against that trend.

The filing meaningfully de-risks the near term. In January 2026 Modiv swapped its entire $250M Term Loan, fixing SOFR at 2.45% (4.15% all-in) for 2026, so per the 10-K '100% of our indebtedness has a weighted average fixed interest rate of 4.14% as long as our leverage ratio is less than 50%' — with leverage at 45.1%, near-term rate risk is largely neutralized (at the cost of a $2.7M buydown that adds ~$0.6M/quarter of interest expense). On the leasing side there are 'no leases scheduled to expire within the next 12 months,' and 2025 extensions with Fujifilm Dimatix (to 2036) and Northrop Grumman (to 2031) lock in credit tenants; the only 2027 expiry is the Husqvarna Charlotte lease.