EX-99.1 2 brhc20057684_ex99-1.htm EXHIBIT 99.1

Exhibit 99.1
1 INVESTOR PRESENTATION

DISCLOSURE – IMPORTANT INFORMATION Information set forth herein contains forward-looking statements, which reflect our current views regarding our business, financial performance, growth prospects and strategies, market opportunities, and market trends. Forward-looking statements include all statements that are not historical facts. In some cases, you can identify these forward-looking statements by the use of words such as “outlook,” “believes,” “expects,” “potential,” “continues,” “may,” “will,” “should,” “could,” “seeks,” “approximately,” “projects,” “predicts,” “intends,” “plans,” “estimates,” “anticipates,” or the negative version of these words or other comparable words. All of the forward-looking statements herein are subject to various risks and uncertainties. Assumptions relating to the foregoing involve judgments with respect to, among other things, future economic, competitive and market conditions, and future business decisions, all of which are difficult or impossible to predict accurately and many of which are beyond our control. Although we believe that the expectations reflected in such forward-looking statements are based on reasonable assumptions, our actual results, performance, and achievements could differ materially from those expressed in or by the forward-looking statements and may be affected by a variety of risks and other factors. Accordingly, there are or will be important factors that could cause actual outcomes or results to differ materially from such forward-looking statements. These factors include, but are not limited to, increases in the rate of inflation and interest rates, general economic conditions, local real estate conditions, tenant financial health, property acquisitions and dispositions and the timing of any acquisitions and dispositions, risks and uncertainties related to the COVID-19 pandemic and its related impacts on us and our tenants, supply-chain disruptions and impacts of the Russian war against Ukraine. These and other risks, assumptions, and uncertainties are described in our filings with the SEC, which are available on the SEC’s website at www.sec.gov. You are cautioned not to place undue reliance on any forward-looking statements included herein. All forward-looking statements are made as of the date of this document and the risk that actual results, performance, and achievements will differ materially from the expectations expressed or referenced herein will increase with the passage of time. We undertake no obligation to publicly update or review any forward-looking statement, whether as a result of new information, future developments, or otherwise, except as required by law. 2

WHY OWN MODIV INDUSTRIAL? 3 Focused Net Lease Manufacturing Strategy Experienced Leadership with Proven Execution Attractive Industrial Real Estate Portfolio Significant Upside Potential

FOCUSED NET LEASE MANUFACTURING STRATEGY 4 American Made, American Employed Modiv Industrial buys U.S. manufacturing properties leased to long-term tenants that produce critical components and pay countless employees Necessity Based - Where Things Are Made Unlike most net lease REITs that are dependent upon the whims of the consumer, Modiv Industrial derives its strength from the nation’s infrastructure Supply Chain Security & Onshoring Following the COVID-19 Pandemic and the war in Ukraine, the U.S. has experienced a strategic shift toward onshoring (or reshoring) manufacturing capabilities to ensure supply chain security

SIGNIFICANT UPSIDE POTENTIAL 5 Compelling Small Cap Growth Profile As a small cap REIT, each acquisition materially increases Modiv’s revenue compared to large cap REITs that are forced to buy billions of real estate each year for the same effect Modiv can quadruple in size and still benefit from the ability to move the needle from the denominator effect Attractive Valuation Opportunity Modiv currently trades at substantial double-digit discounts to independently appraised value as well as GAAP book value This temporary discount results in a compelling dividend yield and meaningful share price appreciation potential Long Duration Assets with Compound Rental Growth With a weighted average lease term of over 14 years, Modiv has one of the longest duration portfolios amongst REITs Our ~2.5% of average annual rental increases provide contractual growth

6 EXPERIENCED LEADERSHIP - MANAGEMENT EXTENSIVE EXPERIENCE IN REITs Transformations M & A Capital Markets Audit Capital Markets Balance Sheets Public Company Net Lease Real Estate Property Transactions Sale Leasebacks Underwriting Securities Law M &A Structuring Best Practices Financial Reporting Accounting Property Management Audit WORKED AT NYSE: CCG NYSE: COLE Green Street Advisors BlackRock Cadiz California Coastal Koll Group PwC Realty Dividend NYSE: COLE NYSE: O Massumi + Consoli O’ Melveny & Myers Latham & Watkins PRES Shopoff Realty California Coastal KPMG Decades of Experience Disciplined, Frugal Subject Matter Experts Hard Working, Results Driven Alignment of Interests via Majority Equity Compensation

7 EXPERIENCED LEADERSHIP - DIRECTORS EXPERTISE REITs Transformations NTR Portfolios Best Practices REIT Law Corp Gov SEC Matters Board Practices Turnarounds Net Lease M&A Public Boards Corp Gov Public Boards REITs Net Lease Real Estate Accounting Valuations Finance Acquisitions REITs Transformations NTR Portfolios Best Practices WORKED AT NYSE: EQC Green Street Advisors EY/Kenneth Leventhal Prudential Financial NYSE: COLE AEGON & ING NYSE: SRC NYSE: GGP AEW NYSE: TSY CNL Real Estate Merrill Lynch FTI Consulting CBRE BlackRock Irvine Company CBRE Koll Group Invaluable Industry and Company Experience Vast Working Knowledge Network Focused on Ethics and Integrity Detailed, Disciplined and Pragmatic Procedurally Efficient and Effective 1Chairman of the Board 2Board Observer

8 PROVEN EXECUTION Volume of Investment Opportunities Presented to Modiv Volume of Investment Opportunities That Modiv Reviewed Modiv Submitted an LOI following Investment Committee Approval Properties Acquired By Modiv Industrial since Feb. 2022 NYSE Listing Location Local market trends and demographics Replacement cost Property attributes (age, visibility, traffic patterns) Guarantor credit profile Lease term and structure Competitive positioning Sales and profitability trends Internal and External Credit Analysis Continuous Monitoring Tenant - level Property - level Disciplined pricing Strategic fit and rationale Availability and cost of debt Earnings impact Portfolio - level

9 ATTRACTIVE INDUSTRIAL REAL ESTATE PORTFOLIO $614M Gross Real Estate Value $41.1M Annual Base Rent 45 Properties 4.7M Square Feet 31 Tenants 16 States 14.3 Yrs Weighted Average Lease Term ~2.5% Average Annual Rental Increase

10 ATTRACTIVE INDUSTRIAL REAL ESTATE PORTFOLIO Footnote: All percentages based on Annual Base Rent for next twelve months on a pro forma basis as of June 30, 2023

11 ATTRACTIVE INDUSTRIAL REAL ESTATE PORTFOLIO Footnote: All percentages based on Annual Base Rent for next twelve months on a pro forma basis as of June 30, 2023

WHY OWN MODIV INDUSTRIAL? 12 Focused Net Lease Manufacturing Strategy Experienced Leadership with Proven Execution Attractive Industrial Real Estate Portfolio Significant Upside Potential

EXECUTIVE SUMMARY BUILD AMERICA. INVEST IN MODIV INDUSTRIAL. To learn more: go to www.modiv.com or email info@modiv.com