Shares gained 7.1% as investors welcomed the accretive Modiv acquisition and continued capital recycling efforts that enhance portfolio quality and cash flow durability.
- Proposed acquisition of Modiv expected to close mid-August 2026, extending portfolio lease term to 6.6 years and increasing industrial exposure to ~50% of straight-line rent.
- Modiv deal projected to be ~4% accretive to AFFO per share while remaining leverage-neutral.
- Disposition pipeline of $263 million through July 31, 2026, with 78% office assets, reducing office exposure to an anticipated 21% of total rent.
- Sold office properties at ~7.2% cash cap rate; continuing to monetize non-core office assets on lease expirations to avoid re-leasing risk.
- Acquired a $14 million FedEx-leased industrial property at an 8.2% cap rate, illustrating value creation through capital recycling.
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