Modiv Inc. (NYSE:MDV) Q2 2023 Earnings Call Transcript August 14, 2023 12:00 PM ET

Company Participants

Margaret Boyce - IR

Aaron Halfacre - CEO

Ray Pacini - CFO

Conference Call Participants

Bryan Maher - B. Riley FBR

Rob Stevenson - Janney

Barry Oxford - Colliers

Operator

Good day and welcome to Modiv Industrial Second Quarter 2023 Earnings Conference Call and Webcast. All participants will be in a listen-only mode. [Operator Instructions]. On today's call, management will provide prepared remarks and then we will open the call up for your questions. [Operator Instructions]. Please note this event is being recorded.

I would now like to turn the conference over to Margaret Boyce, Investor Relations for Modiv Industrial. Please go ahead.

Margaret Boyce

Thank you, Melissa, and thank you all for joining us for Modiv Industrial's second quarter earnings call. We issued our earnings release and our 10-Q before market opened this morning. These documents are available in the Investor Relations section of our web site at motive.com. Our quarterly supplement will be published later this week. I'm here today with Aaron Halfacre, Chief Executive Officer; and Ray Pacini, Chief Financial Officer. On today's call, management will provide prepared remarks, and then we will open up the call for your questions.

Before we begin, I would like to remind you that, today's comments will include forward-looking statements under the federal securities laws. Forward-looking statements are identified by words such as will, be, intend, believe, expect, anticipate, and other comparable words and phrases. Statements that are not historical facts, such as statements about our expected acquisitions or dispositions, are also forward-looking statements. Our actual financial condition and results of operations may vary materially from those contemplated by such forward-looking statements. Discussion of the factors that could cause our results to differ materially from these forward-looking statements are contained in our SEC filings, including our reports on Form 10-K and 10-Q.

With that, I would now like to turn the call over to Aaron. Aaron, please go ahead.

Aaron Halfacre

Thank you, Margaret. Hello everybody and thank you for joining our conference call today. Over the last 90 days, we have continued our no-nonsense execution. Let me rattle off a few facts about the work we have done. On August 10th, we completed the $42 million sale of our non-core assets at a 7.55 cap rate, and we did this only 90 days after we told you of our plan. In July, we acquired another $29 million of industrial asset, at greater than an 8% cap rate, which was on top of the $100 million of assets we have acquired earlier this year. In the past 18 months, we have acquired nearly $300 million of assets which means nearly 50% of our total AUM was acquired at exceedingly attractive cap rates, while others watched their vintage, low cap rate portfolio shrinking value with every Fed rate increase.