Modiv Industrial Announces Release Date for Third Quarter 2024 Results
Modiv Industrial (NYSE:MDV) announced it will report Q3 2024 financial results on November 6, 2024, before market open, followed by a conference call at 11:00 a.m. ET. CEO Aaron Halfacre provided a detailed update on a potential joint venture deal that the company ultimately decided not to pursue. The deal involved over 20 manufacturing properties in the eastern U.S., with a nine-figure purchase price at an accretive cap rate. Modiv would have acquired slightly less than half the equity initially, with plans to acquire the remainder later.
Halfacre explained that the decision to pass on the deal was due to misaligned time horizons and potential risks associated with rushing asset sales. He emphasized the company's focus on maximizing shareholder value while managing risk. Halfacre also mentioned another potential deal, stating they won't provide further updates until something is signed. He concluded by highlighting Modiv's portfolio of high-quality industrial manufacturing properties producing essential American-made goods.
Modiv Industrial (NYSE:MDV) ha annunciato che comunicherà i risultati finanziari del Q3 2024 il 6 novembre 2024, prima dell'apertura dei mercati, seguito da una conference call alle 11:00 ET. Il CEO Aaron Halfacre ha fornito un aggiornamento dettagliato su un potenziale accordo di joint venture che l'azienda ha deciso di non perseguire. L'accordo riguardava oltre 20 proprietà di produzione negli Stati Uniti orientali, con un prezzo d'acquisto a nove cifre a un cap rate accretivo. Modiv avrebbe acquisito leggermente meno della metà del capitale inizialmente, con piani per acquisire il resto in seguito.
Halfacre ha spiegato che la decisione di rinunciare all'accordo è stata causata da orizzonti temporali disallineati e dai potenziali rischi associati a vendite patrimoniali affrettate. Ha enfatizzato l'attenzione dell'azienda su massimizzare il valore per gli azionisti mentre gestisce il rischio. Halfacre ha anche menzionato un altro potenziale accordo, dichiarando che non forniranno ulteriori aggiornamenti fino a quando qualcosa non sarà firmato. Ha concluso evidenziando il portafoglio di Modiv di proprietà di produzione industriale di alta qualità che producono beni essenziali fabbricati negli Stati Uniti.
Modiv Industrial (NYSE:MDV) anunció que reportará los resultados financieros del Q3 2024 el 6 de noviembre de 2024, antes de la apertura del mercado, seguido de una llamada de conferencia a las 11:00 a.m. ET. El CEO Aaron Halfacre proporcionó una actualización detallada sobre un posible acuerdo de joint venture que la compañía decidió no seguir adelante. El acuerdo involucraba más de 20 propiedades de fabricación en el este de EE.UU., con un precio de compra de nueve cifras a una tasa de capitalización accretiva. Modiv habría adquirido algo menos de la mitad del capital originalmente, con planes de adquirir el resto más adelante.
Halfacre explicó que la decisión de rechazar el acuerdo se debió a horizontes de tiempo desalineados y a los riesgos potenciales asociados con la presión para vender activos. Enfatizó el enfoque de la empresa en maximizar el valor para los accionistas mientras se gestiona el riesgo. Halfacre también mencionó otro posible acuerdo, afirmando que no proporcionarán más actualizaciones hasta que algo esté firmado. Concluyó destacando el portafolio de Modiv de propiedades de fabricación industrial de alta calidad que producen bienes esenciales fabricados en EE.UU.
Modiv Industrial (NYSE:MDV)는 2024년 3분기 재무 결과를 2024년 11월 6일, 시장 개장 전에 발표할 것이라고 발표했으며, 이후 동부 표준시 기준 오전 11시 전화 회의가 이어질 예정입니다. CEO 아론 하프에이커는 회사가 궁극적으로 추구하지 않기로 결정한 잠재적 합작 투자 계약에 대한 자세한 업데이트를 제공했습니다. 이 거래는 미국 동부에 있는 20개 이상의 제조 자산을 포함하며, 아크레티브 자본화율의 9자리 구매 가격이 책정되었습니다. Modiv는 처음에는 약 절반의 지분을 인수할 계획이었으며, 나중에 나머지를 인수할 계획이 있었습니다.
하프에이커는 거래를 포기하기로 결정한 이유가 일치하지 않는 시간적 목표와 자산 매각을 서두르면서 생길 수 있는 잠재적 리스크 때문이라고 설명했습니다. 그는 리스크를 관리하면서 주주 가치를 극대화하는 데 집중하고 있다고 강조했습니다. 하프에이커는 또 다른 잠재적 거래를 언급하며, 아무것도 서명될 때까지 추가 업데이트는 제공하지 않겠다고 밝혔습니다. 그는 Modiv의 고품질 산업 제조 자산 포트폴리오가 필수적인 미국산 상품을 생산하고 있음을 강조하며 마무리했습니다.
Modiv Industrial (NYSE:MDV) a annoncé qu'il publierait les résultats financiers du T3 2024 le 6 novembre 2024, avant l'ouverture des marchés, suivi d'une conférence téléphonique à 11h00 ET. Le PDG Aaron Halfacre a donné une mise à jour détaillée sur un potentiel accord de coentreprise que l'entreprise a finalement décidé de ne pas poursuivre. L'accord concernait plus de 20 propriétés de fabrication dans l'est des États-Unis, avec un prix d'achat à neuf chiffres à un taux de capitalisation accréditif. Modiv aurait acquis légèrement moins de la moitié des capitaux propres initialement, avec des projets d'acquérir le reste plus tard.
Halfacre a expliqué que la décision de renoncer à l'accord était due à des horizons temporels mal alignés et à des risques potentiels associés à la précipitation des ventes d'actifs. Il a souligné l'importance de l'entreprise à maximiser la valeur pour les actionnaires tout en gérant les risques. Halfacre a également mentionné un autre accord potentiel, déclarant qu'ils ne fourniront pas d'autres mises à jour tant que quelque chose n'est pas signé. Il a conclu en soulignant le portefeuille de Modiv de propriétés industrielles de haute qualité produisant des biens essentiels fabriqués aux États-Unis.
Modiv Industrial (NYSE:MDV) hat angekündigt, dass die Finanzergebnisse für das Q3 2024 am 6. November 2024 vor der Markteröffnung veröffentlicht werden, gefolgt von einer Telefonkonferenz um 11:00 Uhr ET. CEO Aaron Halfacre gab ein detailliertes Update zu einem potenziellen Joint-Venture-Deal, den das Unternehmen letztendlich nicht weiterverfolgen wollte. Der Deal umfasste über 20 Produktionsstandorte im Osten der USA, mit einem Kaufpreis in neunstelliger Höhe zu einem akkretierten Kapitalisierungszinssatz. Modiv hätte anfangs leicht weniger als die Hälfte des Eigenkapitals erworben, mit dem Plan, den Rest später zu erwerben.
Halfacre erklärte, dass die Entscheidung, den Deal abzulehnen, auf nicht übereinstimmenden Zeitrahmen und potenziellen Risiken im Zusammenhang mit der Eile beim Verkauf von Vermögenswerten beruhte. Er betonte den Fokus des Unternehmens auf die Maximierung des Shareholder-Value bei gleichzeitiger Risikomanagement. Halfacre erwähnte auch ein weiteres potenzielles Geschäft und stellte fest, dass sie keine weiteren Updates geben werden, bis etwas unterschrieben ist. Er schloss, indem er auf das Portfolio von Modiv mit hochwertigen Industrieanlagen hinwies, die essentielle amerikanische Produkte herstellen.
- Modiv Industrial continues to focus on high-quality industrial manufacturing properties
- The company demonstrates disciplined approach to risk management in deal-making
- CEO emphasizes commitment to maximizing shareholder value
- Modiv Industrial decided not to pursue a significant joint venture deal
- Potential growth opportunity through acquisition of over 20 manufacturing properties was missed
Provides Business Update
Live conference call: 1-877-407-0789 or 1-201-689-8562 at 11:00 a.m. Eastern Time, Wednesday, November 6th.
Webcast: To listen to the webcast, either live or archived, use this link https://viavid.webcasts.com/starthere.jsp?ei=1693498&tp_key=a423007083 or visit the investor relations page of Modiv’s website at www.modiv.com.
The following is a statement from Aaron Halfacre, CEO of Modiv Industrial:
“A little over ten years ago I was hired as the Chief Investment Officer of a publicly traded student housing REIT. For those who know, you know, but suffice it to say I stepped into a FUBAR situation due to a half-completed merger and an onerous joint venture arrangement. The founding CEO of that company had entered those arrangements full of optimism as he had become seemingly addicted to the insatiable demand for growth capital. We have all heard the story of a growth-hungry CEO who, fixated on the belief that bigger is better, enters an overly complex and sensationally usurious joint venture arrangement where the best-case scenario is shareholder dilution and the worst-case results in the REIT overdosing on a poorly structured deal. In the case of that student housing REIT, it ultimately ended up delisting in a take private transaction, salvaging the remaining equity value, to that same joint venture partner. Mind you, this isn’t a missive about bad private equity partners, or loathsome joint venture arrangements for that matter, but it is a lesson in knowing that all things come with a cost and that cost can be exacerbated by cognitive biases – particularly overt optimism in lieu of thoughtful risk management.
Joint venture arrangements take many flavors but are typically complex both for REITs and public REIT investors – and investors have long told REIT management they don’t really like them that much. Typically, the JV jitters that cause public REIT investors to develop a nervous twitch are those of the private equity ilk, as opposed to the lower cost pension plan varieties witnessed during the dawn of the ‘modern REIT era’. It is important to know the dangers of anything you ingest, even if there also may be benefits. With JVs you must be careful and smart. If you can, then you reach new highs. If you can’t, then you may face painful investor withdrawal. To play on the words of Rick James, ‘JVs are a hell of a drug.’
As most of you know, for the entire year I have been yarning about battleships as a metaphor for JVs and most recently was focused on a particular battleship located alongside the ‘shore of Miami’. Alas, I may never be able to fully explain the nautically themed enigma given that we have decided not to enter our first port of call. Before I dig into the details, I wish to personally thank the team on the other side of the negotiations for that deal for their patience and effort as we tried to hammer out a rare win-win joint venture. It was a gritty journey, starting all the way back in 2022, but at the end of the day it is my job as CEO to make sure we don’t enter any arrangement that creates unnecessary risk exposure. In this case, avoiding risk also means foregoing a titillating headline. What will not be forsaken, however, is our disciplined grind to maximize shareholder value. Before I get back to the grindstone, please allow me to provide a bit more context.
This particular ‘battleship’ consisted of over 20 manufacturing properties located throughout the eastern part of
At its simplest level we had a misunderstanding relating to time horizons. Specifically, the ROFO was long tailed, more than one year, and the long-dated expiration was essential for us to have enough time to properly (i.e. unrushed) sell a select list of our existing properties and to roll the tax-sensitive proceeds, via a 1031 exchange, into the remainder of the joint venture portfolio. We had underwritten buying the remainder of the portfolio at the cap rate we had negotiated for the first phase of the deal – that was a misunderstanding, and I own that. The private equity partner was willing to honor the same cap rate if we could purchase the remainder relatively quickly, but anything longer than a couple of months would be a new negotiation. Rushing to sell the short list of assets too soon increased the risk of reduced proceeds and, in turn, would jeopardize accretion. The prospect of buying only half and not knowing if we could even buy the remainder of the portfolio sounds a lot like what happened at the student housing REIT all those years ago. The job of management is to maximize value for stockholders while also managing risk – overt optimism be damned.
Given the run up in REIT equity prices and the Fed’s recent surprise move, both parties knew the landscape for real estate was shifting and instead of spending excess legal dollars in an ill-fated attempt to paper over fundamental differences in time horizons, we agreed to end negotiations. I believe we did so amicably. I also believe that next to the owners themselves, there is no one else that knows that portfolio as well as we do. Though I would like to one day figure out a way to buy it, I am not holding my breath, and I don’t think you should either – if it happens, it happens.
Before you ask, our decision to pass on the deal has no bearing on the other battleship associated with an ‘English shore’. That opportunity isn’t dead. That said, we don’t intend to continue the play-by-play announcements as we have in the past. If something materializes from any potential negotiations regarding the other portfolio, then we will let you know only if something gets signed.
I look forward to sharing our solid results for the third quarter on November 6th. Until then, rest assured that we are diligently protecting your dividend and working tirelessly to maximize your investment. For those investors reading this, know this…you own an unapologetic portfolio of high-quality industrial manufacturing properties where hard-working Americans make durable, essential products of value for our nation’s infrastructure. Made in the
Grit, grind, get it done!” Aaron Halfacre, CEO of Modiv Industrial.
About Modiv Industrial
Modiv Industrial, Inc. is an internally managed REIT that is focused on single-tenant net-lease industrial manufacturing real estate. The Company actively acquires critical industrial manufacturing properties with long-term leases to tenants that fuel the national economy and strengthen the nation’s supply chains. For more information, please visit: www.modiv.com.
Forward-looking Statements
Certain statements contained in this press release, other than historical facts, may be considered forward looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. These statements include, but are not limited to, statements regarding our plans, strategies and prospects, both business and financial. Such forward-looking statements are subject to various risks and uncertainties, including but not limited to those described under the section entitled “Risk Factors” in the Company’s Annual Report on Form 10-K for the year ended December 31, 2023 filed with the SEC on March 7, 2024. Accordingly, there are or will be important factors that could cause actual outcomes or results to differ materially from those indicated in these statements. These factors should not be construed as exhaustive and should be read in conjunction with the other cautionary statements that are included in this press release and in the Company’s other filings with the SEC. Any forward-looking statements herein speak only as of the time when made and are based on information available to the Company as of such date and are qualified in their entirety by this cautionary statement. The Company assumes no obligation to revise or update any such statement now or in the future, unless required by law.
View source version on businesswire.com: https://www.businesswire.com/news/home/20241017764984/en/
Inquiries:
management@modiv.com
Source: Modiv Industrial, Inc.
FAQ
When will Modiv Industrial (MDV) report its Q3 2024 financial results?
Why did Modiv Industrial (MDV) decide not to pursue the joint venture deal mentioned in the press release?
What type of properties does Modiv Industrial (MDV) focus on acquiring?
Is Modiv Industrial (MDV) still considering other acquisition opportunities?
