Overview

* Modiv Q2 2025 revenue misses analyst expectations, per LSEG data

* AFFO for Q2 rises 22% yr/yr, beating consensus estimates

* Co renews 5-year lease with Northrop Grumman, 2% annual escalations

Outlook

* Modiv sees lenders more willing to lend, aiding refinancing and acquisitions

* Company plans asset recycling to boost AFFO growth by 100 basis points

* Modiv notes increased REIT market activity, signaling potential M&A opportunities

* Modiv notes a lending thaw and increased acquisition activity in the REIT sector

Result Drivers

* LEASE RENEWAL - 5-year lease renewal with Northrop Grumman, including 2% annual escalations, contributed to AFFO growth

* DISCIPLINED MANAGEMENT - CEO attributes 22% yr/yr AFFO increase to disciplined management and strategic focus

Key Details

Metric Beat/Mis Actual Consensu

s s

Estimate

Q2 Miss $11.80 $11.90

Revenue mln mln (4

Analysts

)

Q2 Beat $4.80

Adjusted mln

FFO

Analyst Coverage

* The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 5 "strong buy" or "buy", no "hold" and no "sell" or "strong sell"

* The average consensus recommendation for the commercial reits peer group is "buy"

* Wall Street's median 12-month price target for Modiv Industrial Inc ( MDV ) is $17.50, about 17.5% above its August 6 closing price of $14.44

* The stock recently traded at 129 times the next 12-month earnings vs. a P/E of 197 three months ago

Press Release:

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)