EX-99.1 2 nt10020566x7_ex99-1.htm EXHIBIT 99.1

Exhibit 99.1

 Investor Presentation  Q1 2021 
 

 Disclosure Slide  These materials are provided for informational purposes only, and under no circumstances may any information contained herein be construed as investment advice or as an offer to sell or a solicitation of an offer to buy an interest in any Modiv program or offering. Alternative investments, such as an investment in Modiv or any Modiv program or offering, are speculative and involve substantial risks, including illiquidity and complete loss of invested capital, and there are no guarantees that assets will appreciate in value or that dividends will be paid. Such investments may not be suitable for all investors. Forward-Looking StatementsCertain statements contained herein, other than historical facts, may be considered forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended (the “Securities Act”), and Section 21E of the Securities Exchange Act of 1934, as amended (the “Exchange Act”). We intend for all such forward-looking statements to be covered by the safe harbor provisions for forward-looking statements contained in Section 27A of the Securities Act, Section 21E of the Exchange Act and other applicable law. Such statements include, in particular, statements about being a tech-enabled asset manager, durable cashflow income, long-term growth potential, innovation, potential lease extensions, expenses related to operating a public company, value appreciation, rent collections, durability of our real estate portfolio, estimated net asset value, and market and portfolio outlook including new investment opportunities. Therefore, such statements are not guarantees of future results and are subject to risks, uncertainties and other factors, some of which are beyond our control, are difficult to predict and could cause actual results to differ materially from those expressed or implied in the forward-looking statements. Accordingly, we make no representation or warranty, express or implied, about the accuracy of any such forward-looking statements contained hereunder. Except as otherwise required by federal securities laws, we undertake no obligation to update or revise any forward-looking statements to reflect changed assumptions, the occurrence of unanticipated events or changes to future operating results, whether as a result of new information, future events or otherwise.Modiv Inc. is not affiliated with, associated with, or a sponsor of any of the businesses pictured or mentioned. The names, logos and all related product and service names, design marks and slogans are the trademarks or service marks of their respective companies.  
 

 Multiple Levers of Value Creation        Investment ManagerManager of alternative real estate products to provide revenue to Modiv and increase franchise value    Crowdfunding PlatformFintech platform magnifies access to investors and offers scalable and economical capital raise capabilities  Growth  Income + Growth    Venture Capital InvestmentsProptech and fintech related venture capital investments designed to create meaningful capital appreciation  Growth  Income + Growth  Real EstateInvestmentsPortfolio of income producing assets provides durable cash flow and long-term upside potential     Within a single ownership structure, Modiv provides individual investors access to a tech-enabled real estate asset manager with long-term growth potential driven by innovation and investor alignment. 
 

       Modiv by the Numbers  38commercial properties  12retail  14office  12industrial  $400+ millionassets under management  7,500+investors  2.3 millionSF of leasable space                4 venture capitalinvestments  $0fees2  $35.8M dividendspaid since inception1  1. Total distributions for Modiv’s Class C and S shares combined from inception through 3/31/21.2. Modiv charges no fees, although certain expenses related to operating a public company apply.  As of March 31, 2021 
 

 Investments Overview 
 

 Durable Real Estate Portfolio   Properties  38  Square Footage (msf)  2.3  Total Tenants  31  Annualized Base Rent ($m)  $29.1   Top Ten Tenants (% of ABR)  55%  Tenant Industries  13  Occupancy (%)  100%  Cash Rent Collection (% of ABR)  100%  Investment Grade-Rated1 (% of ABR)  67%  Contractual Rent Bumps (% of ABR)  89%  Average Lease Term Remaining (years)   5.4  Leverage (% of asset cost)  49%  Weighted Average Interest Rate  4.3%  Net Asset Value per share  $24.61   Implied Cap Rate  7.5%  Diversified by Geography, Property Type and Sector    IndustrialOfficeRetail      As of March 31, 2021  1. Investment grade rating on long-term debt is determined by a nationally recognized statistical rating agency. 
 

 Key Portfolio Metrics  Top 5 Tenantsby Annual Base Rent  8.7% (S&P A+)  7.7% (NR)  7.7% (S&P A+)  5.3% (S&P AA-)  5.5% (NR)  As of March 31, 2021  Modiv Inc. is not affiliated with, associated with, or a sponsor of any of the businesses pictured or mentioned. The names, logos and all related product and service names, design marks and slogans are the trademarks or service marks of their respective companies.   1. Investment grade rating on long-term debt is determined by a nationally recognized statistical rating agency.  Lease DurationWeighted Average Lease Duration: 5.4 Years  Industry Breakdown  Property Type  Investment Grade1 
 

 Quarterly Activity  LeasingNotable lease extensions included five-year renewals with Northrop Grumman in Florida, and two Dollar Generals in Ohio. FinancingFour properties were re-financed totaling $12M with a weighted average rate of 3.4% and over five-years of average term to maturity.DispositionsAsset sales comprised three properties, EcoThrift and two Chevron’s, for gross proceeds of $13.7M.   1  2  3  Re-financed  PMI Preclinical San Carlos, CA   Asset sale  EcoThrift Sacramento, CA   Five-year lease renewals  Dollar General Ohio  Five-year lease renewal  Northrop Grumman Melbourne, FL  
 

 Quarterly Estimated NAV  1. Estimated per share NAVs reflect the 1:3 reverse stock split effective February 1, 2021.    $24.61Estimated NAV per shareAs of March 31, 2021  17%Increase since April 2020        Net Asset Value per Share (April 2020)   $21.01   Real Estate  ($0.28)  Cash   $0.62  Other Assets  $0.01  Total Real Estate and Assets  $21.36   Debt  $1.82  Other Liabilities  $0.37  Total Debt and Other Liabilities  $2.19  Decrease in Shares  $1.06  Net Asset Value per Share (March 2021)  $24.61  NAV Analysis1    We posted a second consecutive NAV increase due in part to growing confidence in the post-pandemic market, while realizing upside from asset management initiatives and asset sales.  As of 3/31/2020. Cushman and Wakefield independent appraisal.  Raymond PaciniChief Financial Officer 
 

 Investment Overview  As of March 31, 2021  Share Price (NAV)  $24.61  Dividend1  $1.05/share  Annualized Distribution Rate1  4.3%  Shares Outstanding  8.7 mm  Distributions Paid Since Inception1  $35.8 mm  1. There is no guarantee that distributions will be paid. 
 

 Quarterly Commentary 
 

 Since the onset of the pandemic, selected sectors of real estate have proven resilient. Our focus will remain on mission critical and operationally integral assets as we expand our portfolio. – David Collins, Chief Property Officer  Market OutlookFederal Reserve policy and the continued availability of low-cost debt have supported property values and limited the amount of distressThe vaccine roll-out has accelerated plans for employees returning to the officeTraditional retail continued to re-invent itself as spending patterns shift to e-commerce, while necessity retail has proven to be durableThe real estate sector continues to embrace technologyPortfolio OutlookRent collections remain at 100% demonstrating the quality of our tenantsWe are actively working with tenants to extend leases; completed three extensions in 1Q21We are underwriting several new investment opportunities as we look to increase our allocation to industrial/flex R&D and essential retail1  Market & Portfolio Outlook  1. There is no guarantee that these transactions will be consummated.  David CollinsChief Property Officer  Mitchell GermainChief Capital Officer  William BromsChief Investment Officer 
 

   Modiv Quarterly Update  HighlightsCompleted name change to Modiv Inc. | 1:3 reverse stock splitPublished $24.61 NAV, ~7% increase from prior quarter | increase due to contractual rent increases, asset sales above stated value and broader market recoveryOpportunistic sale of three properties | ~5% above value held in most recent NAV and reduction in non-essential retailMaintained dividend policy for 2021 | ($1.05/share post-split)Introduced concept of a 13th dividend | at year-end, based on earnings resultsEstablished innovative partnership with Forge Trust Co. | providing Modiv investors with no-custodial-cost self-directed IRAs  Modiv is looking to redefine and disrupt traditional real estate. Our focus is leveraging technology to create new investment products, while maintaining favorable shareholder alignment.  Aaron HalfacreChief Executive Officer 
 

 Appendix 
 

 Executive Team & Board of Directors  Name  Title  Years of Relevant Experience  Ray Wirta  Chairman  50  Aaron Halfacre  Chief Executive Officer  25  Ray Pacini  Chief Financial Officer  40  Bill Broms  Chief Investment Officer  19  Mitchell Germain  Chief Capital Officer  20  David Collins  Chief Property Officer  35  Sandra Sciutto  Chief Accounting Officer  33  John Raney  Chief Legal Officer  12  Name  Title  Years of Experience  Relevant Firm  Ray Wirta  Chairman  50  CBRE Irvine Company  Aaron Halfacre  Chief Executive Officer  25  Blackrock, Inc.Cole REIT  Joe Hanauer  Independent Director  50  Grubb & EllisPorch.com  Adam Markman  Independent Director  30  Equity CommonwealthGreen Street Adv.  Curtis McWilliams  Independent Director  40  Merrill Lynch Truststreet Prop.  Thomas Nolan  Independent Director  40  Spirit Realty Capital WashREIT  Jeffrey Randolph  Independent Director  40  Morgan Stanley  Executive Team  Board of Directors 
 

 Investments  Property  City, State  Product Type  Sq.Ft.  Investment Grade1  Purchase Date  3M  DeKalb, IL  Industrial  410,400  Y  3/29/2018  Accredo Health  Orlando, FL  Office  63,000  Y  6/15/2016  Amec Foster Wheeler  San Diego, CA  Industrial  37,449  N  7/20/2016  AvAir  Chandler, AZ  Industrial  162,714  N  12/28/2017  Bon Secours Health System  Richmond, VA  Office  72,890  Y  10/31/2018  Costco Wholesale  Issaquah, WA  Office  97,191  Y  12/20/2018  Cummins, Inc.  Nashville, TN  Office  87,230  Y  4/4/2018  Dana Incorporated   Leander, TX  Industrial  45,465  N  12/27/2016  Dollar General   Bakersfield, CA  Retail  18,827  Y  11/10/2015  Dollar General   Big Spring, TX  Retail  9,026  Y  11/4/2016  Dollar General   Castalia, OH  Retail  9,026  Y  11/4/2016  Dollar General   Lakeside, OH  Retail  9,026  Y  11/4/2016  Dollar General   Litchfield, ME  Retail  9,026  Y  11/4/2016  Dollar General   Mt. Gilead, OH  Retail  9,026  Y  11/4/2016  Dollar General   Thompsontown, PA  Retail  9,100  Y  11/4/2016  Dollar General   Wilton, ME  Retail  9,100  Y  11/4/2016  Dollar Tree  Morrow, GA  Retail  10,906  Y  4/22/2016  EMCOR Facilities  Cincinnati, OH  Office  39,385  Y  8/29/2017  exp Global  Maitland, FL  Office  33,118  N  3/27/2017  (Cont’d)  As of March 31, 2021  1. Investment grade rating on long-term debt is determined by a nationally recognized statistical rating agency. 
 

 Investments (cont’d)  Property  City, State  Product Type  Sq.Ft.  Investment Grade1  Purchase Date  FUJIFILM Dimatix (72.71%)  Santa Clara, CA  Industrial  91,740  Y  9/28/2017  Gap  Rocklin, CA  Office  40,110  N  12/1/2016  GSA - Mine Safety & Health  Vacaville, CA  Office  11,014  Y  4/5/2016  Harley Davidson   Bedford, TX  Retail  70,960  N  4/13/2017  Husqvarna  Charlotte, NC  Industrial  64,637  Y  11/30/2017  Illinois Tool Works  El Dorado Hills, CA  Industrial  38,500  Y  8/18/2016  L3 Communications  Carlsbad, CA  Industrial  46,214  Y  12/23/2016  Levins Sacramento  Sacramento, CA  Industrial  76,000  N  8/20/2015  Northrop Grumman  Melbourne, FL  Office  107,419  Y  3/7/2017  Omnicare  Richmond, VA  Industrial  51,800  Y  7/20/2017  PMI Preclinical  San Carlos, CA  Industrial  20,800  Y  12/9/2015  PreK Education Center  San Antonio, TX  Retail  50,000  Y  4/8/2016  Solar Turbines  San Diego, CA  Office  26,036  Y  7/20/2016  Sutter Health  Rancho Cordova, CA  Office  106,592  Y  3/15/2017  Taylor Farms  Yuma, AZ  Industrial  216,727  N  10/24/2019  Texas Health Resources  Dallas, TX  Office  38,794  Y  9/13/2018  Walgreens   Santa Maria, CA  Retail  14,490  Y  6/29/2017  Williams Sonoma  Las Vegas, NV  Office  35,867  N  6/22/2017  Wyndham  Las Vegas, NV  Office  41,390  N  6/22/2017  Totals        2,290,995  67%  -  As of March 31, 2021  1. Investment grade rating on long-term debt is determined by a nationally recognized statistical rating agency. 
 

 www.modiv.com | 888.686.6348120 Newport Center Drive | Newport Beach, CA 92660  Securities offered through North Capital Private Securities | Member FINRA / SIPC