Modiv Industrial Declares Distribution of GIPR Common Shares
Management Provides Forward-Looking Thoughts
On December 29, 2023, Modiv Industrial received GIPR’s notice that on January 31, 2024, it will redeem the GIPR Series A Preferred Stock that the Company received as partial consideration for its August 2023 sale of 13 retail and office properties to GIPR. Under the contractual agreement with GIPR, Modiv Industrial and Modiv Operating Partnership, LP (“Modiv OP”), will receive 2,794,597 shares of GIPR common stock in exchange for retiring the outstanding 2,400,000 shares of GIPR Series A Preferred Stock. Modiv Industrial and its affiliates, including Modiv OP, will retain approximately
Based on GIPR’s most recent closing price, the distribution of 0.28 shares of GIPR common stock for each outstanding share of Modiv’s Class C common stock and Class C Units of Modiv OP equates to a one-time dividend of
“I sincerely hope that everyone reading this has had an enjoyable holiday season spent with family and friends. From the release of third quarter results in November until the release of our 10-K, we have a relatively long period of time between financial filings – the windows where we normally provide business updates. As such, we felt it appropriate to utilize this dividend press release to also provide select updates to our most recent business outlook shared in November. Barring anything material, we do not anticipate providing another business update until the filing of our 10-K. Regardless of the time between updates, rest assured that we are working diligently to execute upon all of our objectives.
Business Outlook:
Dispositions – Though still subject to contingencies that may not be fulfilled, we have now entered into three separate legal agreements to sell two of our non-core office properties as well as one of our industrial distribution centers. Specifically, we are under contract to sell our properties currently leased to Cummins located in
Should we find success with our two anticipated first quarter closings, then we would seek to redeploy the sales proceeds into new property acquisitions. At this time, we have explored numerous potential opportunities in our pipeline with indicated cash cap rates greater than
Strategic Partner – Since our most recent update, we have now entered into nine separate nondisclosure agreements with a list of potential strategic partners and have provided them access to our due diligence items. As a reminder, our proposed ideal arrangement is a joint venture that would be conducive to the long-term increase in our tradeable float and market capitalization. We recognize that what we want from a joint venture might not be what a potential strategic partner wants – if any proposal isn’t viable for all parties, then we won’t do it.
As we close out 2023, it is easy to look back on the year and see all of the transformational execution our team was able to deliver. I am very thankful for our team, our investors and all of our stakeholders. We look forward to delivering more results in 2024.” – 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. Driven by an investor-first focus, Modiv Industrial has over
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 related to pending dispositions, potential joint ventures, annualized dividend rates, future distributions and distributions declared by the Company’s board of directors. 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, 2022 filed with the SEC on March 13, 2023. 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.
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Inquiries:
management@modiv.com
Source: Modiv Industrial, Inc.