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• Modiv Industrial is like Realty Income (O) for industrial properties.

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• Industrial Real Estate Portfolio: Modiv Industrial invests in and owns a portfolio of single-tenant, income-producing industrial properties located across the United States.
• Net Lease Agreements: The company generates revenue by leasing its industrial properties to creditworthy tenants under long-term net lease agreements.

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Modiv Industrial (MDV) operates as a Real Estate Investment Trust (REIT) and generates income by leasing its properties to creditworthy tenants under long-term net leases. Therefore, its major customers are the companies that lease its industrial properties. Based on the company's SEC filings, its top tenants by Annualized Base Rent (ABR) as of December 31, 2023, include:

• V&M Star, L.P. (a subsidiary of Vallourec S.A., Euronext Paris: VK)
• C&S Wholesale Grocers, Inc. (private company)
• The Scotts Miracle-Gro Company (NYSE: SMG)
• Westlake Pipe & Fittings, Inc. (a subsidiary of Westlake Corporation, NYSE: WLK)
• US Lumber Group, LLC (private company)
• UFP Industries, Inc. (NASDAQ: UFPI)
• Mednax, Inc. (NYSE: MD)
• XPO Logistics, Inc. (NYSE: XPO)
• TransMedics Group, Inc. (NASDAQ: TMDC)
• A. O. Smith Corporation (NYSE: AOS)

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Aaron Halfacre, Chief Executive Officer, President and Director

Mr. Halfacre has over 25 years of experience in the real estate industry, including involvement in REIT mergers and acquisitions totaling more than $17 billion. He previously served as President at RealtyMogul, President and CIO of Campus Crest, and held senior leadership roles at Cole Real Estate Investments, BlackRock, and Green Street Advisors.

John Raney, Chief Financial Officer, Secretary and Treasurer

Mr. Raney assumed the role of Chief Financial Officer, Secretary, and Treasurer upon the resignation of Raymond J. Pacini in March 2026. He previously served as Modiv Industrial's Chief Operating Officer and General Counsel. Mr. Raney brings over 12 years of legal experience in complex M&A, debt and equity financings, and venture capital transactions. Prior to joining Modiv, he was a partner at Acceleron Law Group, LLP and Massumi + Consoli LLP, and held various roles at O'Melveny & Myers LLP and Latham & Watkins, LLP.

Raymond Pacini, Executive Vice President

Mr. Pacini served as Chief Financial Officer, Secretary, and Treasurer until March 2026. He leverages over 30 years of real estate industry experience and more than 40 years of public-company experience. His prior positions include Chief Executive Officer and Director at California Coastal Communities, Inc., Chief Financial Officer of Koll Real Estate Group, Inc., and Managing Director at Henley Properties Inc. He also served as an Independent Director and Audit Committee Chair for Cadiz Inc. and Metalclad Corporation.

John Raney, Chief Operating Officer & General Counsel

Mr. Raney also serves as Chief Operating Officer and General Counsel. He brings over 12 years of legal experience in complex M&A, debt and equity financings, and venture capital transactions. Prior to Modiv, he was a partner at Acceleron Law Group, LLP and Massumi + Consoli LLP, and held roles at O'Melveny & Myers LLP and Latham & Watkins, LLP.

Bill Broms, Chief Investment Officer

Mr. Broms guides Modiv's investment strategy with extensive experience in real estate acquisitions, finance, strategy, underwriting, asset management, and dispositions. He has been the Chief Executive Officer and President of BRIX REIT since October 2019. Previously, Mr. Broms founded and led Realty Dividend, LLC, an investment firm that developed net-lease assets and invested in single- and multi-family properties.

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Here are the key risks to the business for Modiv Industrial (symbol: MDV):

1. Limited Operating History, Small Portfolio, and Concentration Risks: Modiv Industrial is a relatively small REIT with a limited operating history, which exposes it to risks not typically present in more established companies. The company's small portfolio and geographic concentration further heighten its risk profile, making it more vulnerable to capital market pressures and economic downturns. This limited track record also means that past performance of real estate programs sponsored by Modiv or its affiliates may not accurately predict future results.
2. High Leverage and Cost of Capital: Modiv Industrial faces significant risk due to its elevated leverage and high cost of capital. Disruptions in financial markets and uncertain economic conditions can negatively impact market rental rates, commercial real estate values, and the company's ability to secure debt financing or service existing debt obligations. High dividend yields can make issuing new equity less attractive if the cost of capital exceeds expected investment returns, and elevated interest rates make debt financing expensive, adding pressure from preferred equity.
3. Challenges with Portfolio Transition and Asset Specialization: Modiv Industrial is actively transitioning from a diversified REIT to one focused on U.S. manufacturing properties. This strategy carries risks, as the specialized nature of these industrial assets, such as manufacturing and food production facilities, can make them difficult to re-lease if a tenant vacates. Such properties may require extensive and capital-intensive redevelopment to fit a new tenant's needs, posing a challenge for the REIT to generate fresh capital for reinvestment.

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The addressable market for Modiv Industrial (MDV) is the U.S. net lease real estate market, specifically focusing on single-tenant income-producing properties. The annual net-lease investment volume in the United States was estimated at $51.4 billion in 2025. This market includes industrial, retail, and office assets.

While the broader U.S. net lease market may be worth well over $100 billion per year, considering unreported activity, the reported investment volume provides a more concrete measure. The single-tenant net lease (STNL) sector specifically saw investment sales volumes reach $33.3 billion year-to-date in the third quarter of 2025.

Modiv Industrial's focus within this market is on acquiring single-tenant net-lease industrial, retail, and office real estate across the United States.

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Modiv Industrial (MDV) expects to drive future revenue growth over the next 2-3 years through a combination of strategic acquisitions, built-in rent escalations, and disciplined asset recycling.

Here are the key drivers:

1. Strategic Acquisitions of Industrial Properties: Modiv Industrial aims to expand its portfolio by acquiring high-quality, single-tenant net-lease industrial manufacturing properties. This strategy directly increases the company's rental income base. For example, recent acquisitions in July 2024 and March 2025 contributed to rental income, and the company has discussed a growth strategy that includes disciplined, accretive transactions. Modiv Industrial is actively looking for opportunities to acquire new properties to strengthen its presence in the industrial real estate sector.
2. Contractual Rent Escalations in Existing Leases: A significant portion of Modiv's long-term net leases include built-in annual rent increases, providing a predictable stream of revenue growth. The company reports a weighted average lease term (WALT) of 14.4 years and average rent escalators of 2.5%. Recent lease renewals, such as with FUJIFILM Dimatix, have included initial rent increases (6.75% in 2026) and subsequent annual escalations (3%), further supporting future cash flows. Similarly, a Northrop Grumman property saw a 5-year lease renewal with 2% annual escalations.
3. Asset Recycling and Capital Reallocation: Modiv Industrial plans to selectively dispose of lower-performing or less strategic assets and reinvest the proceeds into higher-yielding properties. This "asset recycling" strategy is intended to enhance overall portfolio quality and generate accretive Adjusted Funds From Operations (AFFO) growth. The company has identified approximately $150 million in assets for potential recycling, which management believes could produce at least 100 basis points of AFFO growth within 12 months. This involves rotating assets from lower to higher capitalization rates.

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Share Repurchases

• Modiv Industrial made $11.5 million in share repurchases in Q3 2024 and for the full fiscal year 2024.
• In March 2025, the company repurchased 150,000 Series A Preferred shares at $23.50 per share, totaling $3.525 million.
• Modiv's Board of Directors authorized a share repurchase program of up to $20 million in February 2022, valid through December 31, 2022.

Share Issuance

• In the fourth quarter of 2024, Modiv Industrial sold and issued 287,840 shares of common stock at an average price of $16.16 per share.

Outbound Investments

• In April 2022, Modiv completed the acquisition of the Lindsay Precast, LLC portfolio, comprising eight properties, in a sale-leaseback transaction valued at $56.1 million.
• The company executed over $133 million in acquisitions during the first four months of 2022.
• Modiv initiated a growth strategy in 2021 with over $90 million in property acquisitions.

Capital Expenditures

• As a real estate investment trust (REIT), Modiv Industrial's primary capital deployment focuses on acquiring income-producing properties, which are reflected in its outbound investment activities.
• Specific detailed capital expenditure figures for property improvements, distinct from acquisitions, are not readily available in the provided summaries.