Credit Rating For The Unrated REITs (Part 3): Modiv Industrial
Summary
- Modiv Industrial offers a solid asset structure, with 93% unencumbered assets and a market-adjusted asset yield of 9.88%.
- The company is moderately leveraged, with a total debt plus preferred stock to assets ratio of 58% and limited fixed charge coverage.
- MDV.PR.A preferred stock trades below par, yielding 7.52% current and 10.77% yield to call, but carries higher risk, reflected in its B2 rating.
- Overall, MDV stock’s credit rating is Ba3, but investors in the preferred stock should weigh the attractive yield against elevated credit risk.
Arbitrage Trader, aka Denislav Iliev has been day trading for 15+ years and leads a team of 40 analysts. They identify mispriced investments in fixed-income and closed-end funds based on simple-to-understand financial logic.
Denislav leads the investing group Trade With Beta, features of the service include: frequent picks for mispriced preferred stocks and baby bonds, weekly reviews of 1200+ equities, IPO previews, hedging strategies, an actively managed portfolio, and chat for discussion. Learn more.Analyst’s Disclosure:I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.
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