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• Realty Income, but for industrial properties.
• A smaller, single-tenant focused version of Prologis.

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• Industrial Property Leasing: Providing long-term leases for industrial real estate properties such as manufacturing facilities, distribution centers, and warehouses to various tenants.

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Modiv Industrial (MDV) primarily sells to other companies. As a Real Estate Investment Trust (REIT) focused on acquiring and managing industrial properties, its customers are the businesses that lease these industrial facilities.

Modiv Industrial does not publicly disclose the specific names of its major tenants (customer companies) in its SEC filings or investor presentations. However, the company's latest 10-K filing (for the period ending December 31, 2023) provides insight into its tenant concentration:

• One tenant accounts for approximately 18% of Modiv Industrial's annualized base rent.
• All other tenants individually account for less than 10% of the company's annualized base rent.

While specific names are not disclosed, Modiv Industrial's customer base generally consists of companies operating in the following industrial sectors:

• Manufacturing Companies: Businesses that utilize industrial properties for production, assembly, fabrication, and other manufacturing processes.
• Logistics and Distribution Companies: Companies that require warehouses, distribution centers, and other industrial facilities for supply chain management, storage, order fulfillment (including e-commerce), and transportation. This category often includes third-party logistics (3PL) providers.
• Other Industrial Users: Businesses that need specialized industrial space for operations such as research and development, specialized storage (e.g., cold storage), heavy equipment staging, or processing facilities.

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Aaron Halfacre, Chief Executive Officer, President and Director

As Modiv's CEO, Mr. Halfacre is responsible for company-wide strategy, investor base expansion, and identifying growth opportunities. With over 25 years in the real estate industry, he has been involved in REIT mergers and acquisitions totaling more than $17 billion in transaction value. His past roles include President at RealtyMogul, President and CIO of Campus Crest, and senior leadership positions at Cole Real Estate Investments, BlackRock, and Green Street Advisors. He has experience taking a REIT public, selling a REIT to another entity, and taking a REIT private.

Ray Pacini, Chief Financial Officer

Mr. Pacini guides Modiv's financial management and strategy, leveraging over 30 years of real estate industry experience and over 40 years of public-company experience. He previously served as 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 was also CFO of Northbound Treatment Services and an Independent Director and Audit Committee Chair for Cadiz Inc. and Metalclad Corporation.

John Raney, Chief Operating Officer & General Counsel

Mr. Raney brings over 12 years of legal experience, specializing in complex M&A transactions, 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 roles at O'Melveny & Myers LLP and Latham & Watkins, LLP. He has also served as an M&A lecturer at the USC Gould School of Law.

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. Earlier in his career, Mr. Broms founded and led Realty Dividend, LLC, an investment firm focused on developing net-lease assets and investing in single- and multi-family properties.

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• High Leverage and Refinancing Risk: Modiv Industrial operates with a high debt-to-equity ratio, reported at 132%, which significantly exceeds the common guideline of 40% for healthy financial management. This elevated leverage increases the stringency required for capital management and heightens overall investment risk. A substantial portion, nearly 90%, of Modiv's debt is tied to a single term loan maturing in 2027, making the company particularly vulnerable to future interest rate fluctuations and refinancing conditions. Elevated interest rates further exacerbate the cost of debt financing and pressure preferred equity.
• Concentration in Single-Tenant Industrial Properties and Tenant-Specific Challenges: Modiv Industrial's business model is largely focused on acquiring, owning, and managing single-tenant industrial properties. This narrow asset class limits the company's diversification compared to broader real estate investment trusts (REITs) and exposes it to the specific challenges of the industrial sector. The industrial real estate market is sensitive to tenant-specific issues, such as delays in the defense sector or supply chain bottlenecks. While many of Modiv's tenants are investment-grade, a prolonged economic downturn could strain their credit quality. The company's small number of tenants also means that issues with any single tenant can have a disproportionately costly impact on the business, particularly given its significant exposure to California.
• Limited Operating History and Small Size: Modiv Industrial is a relatively new publicly traded entity with a limited operating history, which makes it challenging for investors to draw definitive conclusions about its long-term performance and resilience. Its small size and limited track record also make it more susceptible to capital market pressures during economic downturns and magnify the impact of any operational mistakes or tenant-related problems. This contributes to inconsistent Adjusted Funds From Operations (AFFO) growth, and its high dividend payout ratio, coupled with volatile AFFO, makes the sustainability of its dividend less secure.

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• The global industrial real estate market size was valued at $265.85 billion in 2024 and is projected to reach $279.43 billion in 2025.
• In the U.S., industrial market sales totaled $33.8 billion through July 2025.
• The single-tenant industrial net lease sector in the U.S. recorded $4.6 billion in sales volume during Q1 2025. This increased to over $5.4 billion in investment sales in Q2 2025.
• For the third quarter of 2025, industrial transactions within the single-tenant investment sales market in the U.S. amounted to $5.2 billion.

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Expected Drivers of Future Revenue Growth for Modiv Industrial (MDV)

• Strategic Acquisitions of Industrial and Manufacturing Properties: Modiv Industrial's core strategy involves actively acquiring critical industrial manufacturing properties. Recent earnings reports highlight the impact of such acquisitions on rental income, with new industrial and manufacturing properties acquired in July 2024 and March 2025. The company consistently emphasizes its focus on acquiring assets that are mission-critical to its tenants.
• Rent Escalations within Existing Leases: Modiv's triple-net-lease structure often includes built-in rent escalators. For example, a 10-year lease renewal with Fujifilm Dimatix in Q1 2025 included 3% annual rent escalations, alongside an initial one-time rent reset of 6.75% to bring rents to market levels. These escalators serve as an inherent mechanism for revenue growth, even during periods with fewer external acquisitions.
• Favorable Lease Renewals and Extensions: The company has demonstrated its ability to secure long-term lease renewals and extensions at advantageous terms. In addition to the Fujifilm renewal, Modiv executed an eight-year lease extension for a San Diego property and a five-year extension for a San Carlos property in Q3 2024. Such renewals contribute to stable and increasing annualized base rent.
• Benefiting from U.S. Onshoring and Industrial Demand Tailwinds: Modiv Industrial is positioned as a pure-play REIT focused on net-leased, mission-critical manufacturing facilities. This specialization allows the company to capitalize on macro trends like the resurgence of U.S. onshoring and the increasing demand for industrial real estate, which act as direct catalysts for growth.
• Strategic Disposition of Non-Core Assets: While dispositions can temporarily impact revenue, Modiv's strategy of shedding non-core assets, particularly office properties, and reinvesting the capital into higher-performing industrial facilities, is expected to enhance overall portfolio quality and long-term revenue growth. This disciplined capital allocation focuses the portfolio on its specialized industrial manufacturing niche.

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Share Repurchases

• Modiv has been actively repurchasing its Series A Preferred Stock at a discount.
• During the first quarter of 2025, Modiv repurchased 275,000 shares of preferred stock, accounting for 13.8% of total issued, at an average price of $23.74.
• In March 2025, the company retired 150,000 Series A Preferred shares for $3.525 million, at $23.50 per share, which was a 6% discount to par value.

Share Issuance

• The company saw an increase of 1.2 million in diluted shares outstanding in the second quarter of 2025, including 895,043 Class X Operating Partnership units and 344,119 Class C Operating Partnership units issued in connection with a property acquisition in March 2025.

Outbound Investments

• Modiv is focused on acquiring critical industrial manufacturing real estate properties.
• Since June 30, 2024, the company has acquired two industrial manufacturing properties, contributing to a 4% increase in total real estate investments.
• Modiv closed on a property acquisition in the Jacksonville, FL MSA during the first quarter of 2025.