Modiv Inc., a publicly registered, non-traded crowdfunded real estate investment trust, plans to list its Class C common stock on a national stock exchange in early 2022.
The REIT plans to close its Regulation A offering and share repurchase plan on November 24, 2021. However, the company intends to maintain its monthly dividend and distribution reinvestment plan.
“As a publicly listed company, Modiv would be able to continue to strengthen our investor audience by introducing new retail and institutional investors to our experienced management team and our diversified portfolio of income-producing, single-tenant net-lease properties,” said Aaron Halfacre, Modiv’s chief executive officer.
Modiv also declared an estimated net asset value per share of $27.29 as of September 30, 2021. The newly updated NAV represents 18.5 percent growth from year-end 2020 and 4.8 percent growth from the prior quarter.
The company said that the increase demonstrates “the ongoing real estate market recovery following the impact of the COVID-19 pandemic and the strong demand for income producing real estate properties.”
“The real estate markets have seen a tremendous increase in the demand curve given the abundance of investment capital seeking real assets and a plethora of favorable financing opportunities that have driven buying and selling activity, which in turn has compressed cap rates,” said Halfacre. “We’ve experienced this firsthand at Modiv, as reflected in the increase to our independent real estate valuations and our numerous favorable real estate transactions…”
In other company news, Modiv recently executed two lease renewals including a 12-year renewal with 3M Company for its 410,000-square-foot global distribution hub in DeKalb, Illinois and a seven-year lease renewal with L3Harris Technologies Inc. for its 46,000-square-foot research and development/office facility in Carlsbad, California.
Modiv also signed agreements to purchase a portfolio of 10 retail properties leased to Walgreens for 15 years for $63.1 million and for a sale and leaseback transaction to acquire an industrial property for $11.5 million with a 20-year lease term. The Company expects to complete these transactions before December 31, 2021.
Modiv purchases and manages single-tenant net-lease industrial, retail and office real estate throughout the United States. Modiv leveraged its crowdfunding platform to create a $400 million real estate fund comprising 2.3 million square feet. The company was formerly known as RW Holdings NNN REIT Inc. and Rich Uncles NNN REIT Inc.