Good day, welcome to Modiv's Fourth Quarter and Full -Year 2022 Earnings Conference Call and Webcast. All participants will be in a listen-only mode. Should you need assistance, please signal a conference specialist by pressing the star key followed by zero. On today's call, management will provide prepared remarks and then we will open up the call for questions. To ask a question, analysts may press star, then one on your touchtone phone. If you are using a speakerphone, please pick up your handset before pressing the star key. To withdraw your question, please press star, then two. Participants may also ask a question by emailing ir@modiv.com. Please note this event is being recorded. I would now like to turn the conference over to Margaret Boyce, Investor Relations for Modiv. Please go ahead, ma'am.
Thank you, operator, and thank you all for joining us today to discuss Modiv's fourth quarter and full -year 2022 financial results. We issued our earnings release and investor supplement before the market opened this morning. These documents are available in the Investor Relations section of our website at modiv.com. I'm here today with Aaron Halfacre, Chief Executive Officer of Modiv, and Ray Pacini, Chief Financial Officer. On today's call, management will provide prepared remarks. Then we'll open up the call for your questions. Participants may also ask a question by emailing ir@modiv.com. Before we begin, I would like to remind you that today's comments will include forward-looking statements under the federal securities laws. Forward-looking statements are identified by words such as will, be, intend, believe, expect, anticipate, or other comparable words and phrases.
Statements that are not historical facts, such as statements about our expected acquisitions or dispositions, are also forward-looking statements. Our actual financial condition and results of operations may vary materially from those contemplated by such forward-looking statements. Discussion of the factors that could cause our results to differ materially from these forward-looking statements are contained in our SEC filings, including our reports on Form 10-K and 10-Q. With that, I would now like to turn the call over to Aaron. Aaron, please go ahead.
Thank you, Margaret. Hello, everybody, and thank you for joining our fourth quarter and full year conference call. Joining me today is Ray Pacini, our CFO. In a few minutes, Ray will review our results in detail, and then I will close our prepared remarks before we open the line for Q&A. Our team successfully navigated our first full year as a public company in what was undoubtedly the worst decline in public REIT valuations experienced since 2008. When you measure the fundamental results that are in the direct control of our management team, Modiv experienced a tremendous year of execution. Here are a few highlights. Our full year adjusted funds from operations grew by 45% to a total of $16.6 million, or $1.63 per fully diluted share.
Total revenue increased 22% to $46.2 million, compared to $37.9 million in 2021. We acquired over $162 million of real estate properties at attractive cap rates, and we sold over $70 million of our non-core legacy assets with even more sales of the non-core assets on the horizon. Our weighted average lease term nearly doubled to 11.9 years. We decreased our Office exposure by nearly 30%. With careful expense management, we decreased our G&A by $1.9 million. We believe our goal to be a pure play Industrial Manufacturing REIT is a key differentiator for Modiv within the net lease sector. Nearly daily headlines call out the need for the reshoring of manufacturing capabilities in the U.S. and the importance of creating supply chain independence.
Following the global pandemic and the increasing geopolitical risk environment, the public rhetoric surrounding a desire to strengthen our nation's manufacturing capabilities and supply chain independence has reached the highest levels. To quote our current president from his most recent State of the Union speech, "We need to make sure that the supply chain for America begins in America." We believe the growing importance of U.S. Industrial Manufacturing facilities has only just begun, and we see tremendous long-term opportunity under what we view as a super national paradigm shift away from the lowest cost provider towards supply chain security. Based on this conviction, Modiv is intently, albeit selectively, focused on increasing our exposure to manufacturing assets where demand for their manufactured products is consistent and relatively defensive in nature. You will find us acquiring such assets exclusively, concurrent with our continued disposition of non-core legacy assets.
While the market and interest rate volatility remained high in the fourth quarter, we displayed patience, remained committed to our investment discipline, and paced our transaction activity until we found opportunities that fit our criteria. While we didn't acquire any assets until this January, we were very busy visiting properties and conducting due diligence throughout the fourth quarter. As a result, our outlook for acquisitions in 2023 is robust. This leads me to our goals for 2023. Modiv believes this year will be even more transformational than last year. I want to share the following corporate goals that we believe will have an impact on Modiv's earnings growth and share price over the balance of the year. We anticipate our 2023 acquisition volume to be at least $100 million of Industrial Manufacturing properties.
You will see us enhance the delineation and reporting of our non-core and legacy assets from our core portfolio. We expect the continued disposition of our non-core Office and Retail assets to accelerate as the company focuses on its goal to become a pure play Industrial Manufacturing REIT. We do not anticipate any material changes in G&A or property expenses. If anything, they could decline. As evidenced by our most recent net asset value per share, the company does not intend to issue equity at our current low share price levels and has no planned need for new debt sources beyond our current credit facility capacity. Following inquiries recently received, Modiv will begin to explore long-term and strategic investment proposals from large institutional investors that have identified Modiv's growth potential and management capabilities.
Barring any uniquely compelling and accretive opportunities, Modiv has no current knowledge of any actionable proposals and does not anticipate providing further updates unless required. Given this is a catalyst year for Modiv and considering the meaningful impact future changes can have on our currently small asset denominator, the company has chosen to be prudent and not provide specific AFFO guidance at this time. I'll now turn the call over to Ray to review the financials.
Thank you, Aaron. I will now discuss our fourth quarter and full year 2022 operating results, provide an update on our portfolio, and cover our balance sheet and liquidity. We reported fourth quarter AFFO of $6.9 million, or $0.68 per diluted share, more than double AFFO of $2.4 million or $0.27 per share reported in the fourth quarter of 2021. The $4.5 million increase in AFFO was primarily attributable to early termination fee revenue of $3.8 million related to our property in Rancho Cordova, California. Rather than wait for the tenant in this property, Sutter Health, to end their lease without a renewal and squander an opportunity to bring in a new long-term tenant, we negotiated an early termination fee with Sutter and simultaneously negotiated a new lease with the state of California.
AFFO per diluted share also reflects an increase in fully diluted shares outstanding from our dividend reinvestment program and the issuance of 1.3 million Class C units in our operating partnership at $25 per unit in connection with the January 2022 acquisition of a KIA auto dealership property in Carson, California. AFFO for the full year was $16.6 million, or $1.63 per diluted share, compared with AFFO of $11.4 million or $1.30 per diluted share reported in the prior year. The $5.2 million increase in AFFO was primarily attributable to a $2.4 million increase in early termination fee revenue and a $1.9 million decrease in general and administrative expenses.
AFFO for 2021 included a $1.4 million in early termination fee revenue from our property formerly leased to Dana Incorporated in Cedar Park, Texas, which we sold in July 2021. Excluding the $3.8 million early termination fee revenue for 2022, AFFO per diluted share was $1.26. Fourth quarter revenue was $14.4 million, a 63% increase over $8.8 million in the year-ago quarter. The increase in fourth quarter revenue reflected growth in our portfolio and the $3.8 million early termination fee revenue I just described. For the full year, revenue increased 22% to $46.2 million, compared to $37.9 million in the prior year, reflecting the growth in the company's portfolio and the $2.4 million increase in early termination fee revenue I just described earlier.
Excluding the increase in early termination fee revenue, 2022 annual revenue increased $5.99 million, or 16% year-over-year, due primarily to rental income from 16 acquisitions, partially offset by the sale of eight non-core properties in 2022. On the expense side, fourth quarter G&A costs were $2.3 million, compared with $2.2 million in the fourth quarter last year. This increase reflects a $500,000 accrual for expected costs of relocating the corporation to Reno, Nevada. For the full year, G&A expenses were $7.8 million, a $1.9 million decrease from $9.7 million in 2021 as a result of our exit from the crowdfunding business when we listed our shares and other cost savings initiatives.
Our property expenses were $2.1 million in the fourth quarter, an increase from $1.6 million in the prior year period. Tenants reimbursed $1.6 million of the fourth quarter 2022 property expenses compared to $1.2 million of reimbursements for the 2021 period. For the full year, property expenses were $8.9 million, an increase from $6.9 million in 2021. Tenant reimbursements were $6.6 million in 2022, compared with $5.8 million in 2021. Annualized Adjusted EBITDA for the fourth quarter was $41.2 million, an increase of $19.3 million over the prior year quarter, primarily reflecting the increase in revenue from our acquisitions and the early termination fee.
Adjusted EBITDA for the full year 2022 was $31.7 million, an increase of $7.3 million from last year, reflecting the increases in revenue described above and the $1.9 million decrease in G&A expense. Turning to our portfolio. During 2022, we invested a total of $162.7 million in real estate properties. Including an opportunistic acquisition of one Retail property leased to a KIA auto dealership for $69.4 million, where we issued $32.8 million of equity at $25 per share, and 15 Industrial Manufacturing properties for a total of $93.3 million. The combined initial cap rate for the Industrial Manufacturing properties was 7%, and the weighted average cap rate was 8.9%.
We have a strong pipeline of potential acquisitions under review, we will continue to pursue accretive opportunities as the year progresses. During 2022, we completed the sale of six Office properties, one flex property, and one Retail property, with total contract sales prices of $73 million, generating net proceeds of $48.7 million and gains on sale of $12.2 million. I'll provide some color on our portfolio management activities, which are a key component of our ability to generate long-term returns for our shareholders. As I mentioned earlier, in December 2022, we signed a new 12-year lease on our property in Rancho Cordova, California, for the State of California. The lease includes an option for the State of California to purchase the property.
On December 30, 2022, we sold a Retail property in San Antonio, Texas, which was leased to Raising Cane's, for a sales price of $4.3 million, representing a 5.7% exit cap rate and $669,000 gain on sale. On January 26, 2023, we acquired an Industrial Manufacturing property in Princeton, Minnesota, for $6.4 million. This property has a remaining lease term of 5.75 years and is leased to Plastic Products Company, Inc., a custom thermoplastic metal and ceramic injection molder that has been in business since 1962. The rent on this property will increase by 20% on November 1, 2023, with annual increases of 3% thereafter. The initial cap rate is 7.5%, and the weighted average cap rate is 9.2%.
In January, we signed a two-year lease extension with Solar Turbines, who has occupied our property located in San Diego, California, since 2008. This is the third lease extension executed by the tenant, this renewal includes a 14% increase in the first-year rental rate, followed by another 3% increase in the 2nd year. As of December 31, 2022, our portfolio consisted of 46 properties located in 17 states. The portfolio had approximately 3.2 million sq ft of aggregate leasable space, which was 100% leased to 28 different commercial tenants doing business in 16 separate industries. The portfolio breakdown is as follows: 27 Industrial properties representing 59% of the portfolio, 12 Retail properties representing 20% of the portfolio, seven Office properties representing 21% of the portfolio.
As part of our long-term strategy to reduce Office exposure, we have decreased our Office allocation by nearly 30% since December 31st, 2021. Moving on to the balance sheet and liquidity. As of December 31st, 2022, we had total cash and cash equivalents of $8.6 million and $197.5 million of outstanding indebtedness, consisting of $44.5 million in mortgages and $153 million outstanding on our $400 million credit facility. Our leverage ratio was 38% as of December 31st, 2022. Based on our credit agreement with KeyBank and six other lenders, we define leverage as debt as a percentage of the aggregate fair value of the company's real estate properties, plus the company's cash and cash equivalents.
Our credit facility is comprised of a $150 million revolving credit facility and a $250 million term loan, of which $100 million is expected to be drawn during the first four months of 2023. The credit facility includes an accordion option that allows us to request additional revolver and term loan lender commitments up to a total of $750 million. The revolver maturity is in January 2026, with options to extend for a total of 12 months, and the term loan's maturity is in January 2027. The credit facility is priced on a leverage-based grid that fluctuates based on our actual leverage ratio at the end of the prior quarter.
Based on the December 31, 2022 balance sheet and the interest rate swap agreements entered into during 2022, approximately 98% of our indebtedness holds a fixed interest rate. The weighted average interest rate on the total debt outstanding of $197.5 million as of December 31, 2022 was 4.03% based on the 38% leverage ratio as of September 30, 2022 and December 31, 2022. As previously announced, our board of directors declared a monthly cash dividend per common share of approximately $0.096 for the months of January, February, and March 2023.
Representing an annualized dividend rate of $1.15 per share of common stock, which represents a yield of over 9% based on the recent price of our common stock. I will now turn the call back over to Aaron.
Thanks, Ray. I will keep my closing remarks short and sweet so that we can jump right into Q&A. In 2022, Modiv showed that it could execute our plan and deliver results. In 2023, I am personally very confident that we can do even better. I'll now open the call for questions.
Thank you. Ladies and gentlemen, at this time we will conduct our question-and-answer session. If you'd like to ask a question, please press star one on your telephone keypad. A confirmation tone will indicate that your line is in the question queue. You may press star two if you would like to remove your question from the queue. For participants using speaker equipment, it may be necessary to pick up your handset before pressing the star keys. One moment please while we pull for questions. Thank you. Our first question comes from Gaurav Mehta with EF Hutton. Please state your question.
Yeah, thanks. Good morning. I wanted to go back to your remarks about the 2023 guidance. You talked about some investment proposals from institutional investors. Are you able to provide any color on what those proposals would look like?
, though, is the totality of what I stated in the goals, you know, sort of acquisition floor versus, you know, a range, sort of constraining the common equity and the debt on the balance sheet and the fact that we have received multiple interests. I just think that this year will be a year that will be. If we had given a range, it would be so very wide that it would be meaningless. So we know we need to execute. I think last year our view was we're going to come out with guidance because there's no real basis. We didn't do a traditional IPO, and we wanted to show that we could execute on that, on that range. We did
This year it's a little bit trickier. You know, we're clearly in a stage of growth, unlike some of our larger brethren who can better articulate it. Suffice it to say that we have inquiries. We're going to look at them. You know, we're not meant to be, we're not trying to be coy. There's some potential big movements associated with any of those.
Okay. Second question on your acquisition guidance of $100 million. Should we expect that you guys would fund those acquisitions, purely with debt, given that, you know, you don't intend to issue equity? Would it be a mix of debt and proceeds from expected sales of properties?
I would say that, you know, we certainly can fund with both of those instruments, the recycling of assets and the facility. I think what you'll see is the staging of that over the course of the year. Some might be, you know, might first be facility, subsequent recycling or vice versa. Yeah, I think those two sources are where we're looking at for that acquisition floor.
Okay. Thank you.
Sure. Thanks.
Thank you. Our next question comes from John Massocca with Ladenburg Thalmann. Please state your question.
Good morning. How's it going? With, you know, potential sources of proceeds, as you look at the disposition market today, what should we maybe kind of roughly expect in terms of timing on dispositions over the course of the year? I guess how are cap rates trending, you know, primarily in the Office side of things just as we think about dispositions?
Good questions. I'd say, look, you know, I think that the bulk of the dispositions will occur in the second half of the year. There's two reasons for that. One, we're mindful of AFFO. Two, you know, we're not trying to throw them away. That's the timing. On terms of cap rate and the disposition market, we've seen, you know, on the Retail side, really effectively no impact. I think it depends on the margin of where if you're going institutional or you're going 1031, but we've not really seen anything that's, you know, of concern. I think Office is hard. Like, we've been selling Office for all last year. I think we were relatively successful in getting those moved.
I think as we look this year, there's been very few comps, right? Because the individual Office buyers need the individual debt market, and that hasn't been around since from September through probably till now. The institutional purchases that you've seen either be, you know, the Workspace Property Trust GIC deal or some others, you know, I think they're taking advantage of the fact that they have a large capital and someone wanted to move a bulk. I think the cap rates are very idiosyncratic, right? If you have an empty building in a rural market, you know, that's just gonna be a lot worse cap rate than if you have an occupied long-term thing in an important market. I mean, obviously, I'm sitting in, you know, where everyone knows.
We've underwritten fairly dire cap rates in our models in terms of what we know will our recycling effort, so that way we're not disappointed. You know, we did that last year, and we didn't see that happen.
Okay. And then maybe kind of on you know, specific assets, with Rancho Cordova, does the new tenant impact kind of run rate, rent, and NOI going forward? And also with the other, you know, with the renewal at the property in the San Diego area, you know, was there any kind of change in run rate rent from either of those?
Ray, you want to take that one?
Yeah. The Rancho Cordova lease, the state rent kind of phases in over time. Roughly they're paying roughly half the rent, between now and March of, I'm sorry, May of 2024. Then they'll pay full rent, starting then. In terms of the. Repeat your question again on the, I think it was?
It was the [crosstalk] . Yeah.
Yeah. That rent goes up significantly. They were below market. As we stated, I think, on August 1st, it goes up by 14%, and then a year later, it goes up another 3%. We caught them up to market.
Yeah. I'd add to the OES, the State of California. It was a unique situation. The state already owns the building adjacent to it. They were leasing another space, and they had two more years on this lease. They wanted to move into this because they wanna fence the perimeter of the two buildings and turn it into a campus. The Office of Emergency Services is the office that handles forest fires, you know, heavy floods, all the natural disasters in the State of California, so they get both state and federal funding. They were relatively hot to trot. Otherwise, you know, I don't think we would've moved as fast as we did.
One thing that did take us a little bit of time to negotiate was this purchase option. They wouldn't sign a lease unless they had this purchase option. So, you know, I think it was fortuitous to do that, but that's part of the reason because they have two years, they had to eat the rent in this other place for two years. We worked with them on graduating the rent into it over the first two years of the lease term.
Yep. That makes sense. Maybe with that property in mind, are there any other properties in the portfolio today where you could anticipate a lease termination fee coming through?
No, I don't, I don't think so in this calendar year. We've had some conversations about us going to them. You know, for instance, if we find someone that opportunistically likes the property, you know, we kind of find out where they feel about it and their timing. No, I don't expect any this year.
Okay. There's nothing structural we should bake in as we're modeling.
No, no. There's nothing, no.
Okay. That's it for me. Thank you very much.
Thanks. Mm-hmm.
Thanks. A reminder to ask a question, press star one on your telephone's keypad. Our next question comes from Andrew [D'Silva] with B. Riley Securities. Please state your question.
Hi, good morning. I'm in for Brian today. My first question-
Good morning.
Can you provide any color on, like, what you have in the acquisition pipeline in the sense of, are you moving toward or away any specific markets geographically?
You know, for Good question. Thank you. Industrial manufacturing tends to be in certain markets, right? You're going to see Midwest markets, some of the Carolinas, some, you know. You don't tend to have sort of coastal markets so much, or certainly, gateway centers. You know, where that business is, and it's probably been there for 20 - 30 years or more, is where the property is. You know, if you try to filter Industrial Manufacturing first on, "I'm only going to go into these top 10 markets," you're either going to find a very limited supply, or, you know, ridiculous cap rates. You know, I think that's different for distribution, which has, you know, a different mission. There's no direction that we're going in terms of geographic exposure.
I think we're always mindful of it, but, you know, it's sort of, that's not the tale. I do think what we do drive for is, you know, really looking for, sort of recession resilient types of manufacturers. We're looking with those that have, what I'd call particularly unique hard skills. So, you know, abilities to do complex production or machining or, you know, can work with, you know, have stability in their infrastructure that they could, they could switch product lines, they could do things. They're not, they're not making things that are typically consumer driven. We're looking at things that, yeah, they could be automotive components, but they're not, they're not OEM, they're more tier one type suppliers. It could be, you know, infrastructure-based, things that are providing for municipalities or others.
That where that purchase dollars is not, you know, the 22-year-old with a credit card. I think that's the direction. On our pipeline, you know, look, we were really actually pretty busy in the fourth quarter putting out LOIs, and it was a weird quarter. In two instances, we had deals that we had been verbally awarded, and they said the LOI was getting to be signed, you know, that, you know, a day or two turned into three days, and we found out that There was two instances where the seller just decided not to sell. I think it was because they were just confused about where the market was, things like that. You know, those deals.
Unfortunately for those brokers, they didn't get commissions, but those deals didn't get sold. We've been looking this in, you know, in the first quarter, first half of the year. I'd say the pipeline right now. Well, certainly the ones we've looked at in considering the ones where we've, you know, engaged in the process, it's probably about $250 million, maybe $300 million. Cap rates we're seeing range from 7% to 8%, sometimes wider, never tighter. So, you know, it's been a really interesting first start of the year. I think, you know, I think Albright and his comments on PINE was spot on for Retail. We're seeing it here is that there were fewer buyers in the fourth quarter. There was less inventory.
As we started to see the roll of this year, January was fairly slow. Inventory is starting to come back on. I think buyers are coming back. I think there's a pressure to put, you know, hit quarterly numbers or something like that for a lot of the bigger REITs. Most of the buyers tend to be the REITs, not private.
Great. thank you. That was informational. My next question is, in your move to become a predominantly Industrial Manufacturing REIT, how long do you think it will take to get to that point?
Well, I'll gladly pay you a large bonus check if you can give me a crystal ball how quickly I can normalize interest rates. No, not to be facetious. Look, I think, you know, It's clear that Office assets are less liquid than the other types. As a seller of Office assets, you have the choice of trying to hold on to cap rate, which could mean taking time because, you know, there eventually are people who like your properties, or you can give on cap rate and sell faster. you know, I don't feel any pressure to sell fast. We wanna sell smart.
You know, if we get to the point where we're almost cleaned up and, you know, there's like, one asset, then maybe that changes the story, but, you know, we still have got more work to do. We've obviously reduced Office materially. You saw that we sold a Raising Cane's already. I think the Retail will sell relatively quickly. The Office, you know, it's case by case. You know, I don't know that we'll be there by end of the year, but we could be for sure.
Okay. That was it for me. Thank you for your time.
Sure. Thanks.
Our next question comes from John Massocca with Ladenburg Thalmann. Please state your question.
Just a quick follow-up based on a kind of prior commentary. Are you still seeing, it kind of sounded a bit like you were seeing it in 4 Q, but are you still seeing a kind of buyer-seller disconnect on the industrial side in terms of cap rate? I guess maybe can you put brackets around how wide it is from a basis point perspective, if it does exist?
Fourth quarter, absolutely big disconnect. I think what I would argue is, the disconnect what was it before was probably, if I'm gonna guess, at least 50 basis points, probably more, right? You still had a lot of brokers wanting, say, 6s and, you know, and then, you know, sometimes you'd have buyers saying, "Well, that's an 8." You know what I mean? Because it was just the volatility, and so maybe they'd be 675. Realistically, though, where deals were getting done, it was probably more like 50 - 75 basis points of, you know, disparagement between the two. I think what I've noticed this year is that, the inventory that's out now seems to have the they need to close.
Whereas I think some of the time in the fourth quarter, they were testing the markets. I think more of these deals seem like they need to close or they're just committed to closing, they're tired of the volatility. This is where that's gonna be. They've gotten a better read on rates are earned for their own business. So that the sellers are getting more realistic, right? I think that's also a function of the brokers have run a couple of these now and seen that they didn't get what they thought they could deliver. That's, you know, that's impacting the expectations. At the same time, though, I think buyers have realized, like, I can't be super greedy because there's other buyers, I think they've come in in the margin.
I think it's tightened. It's hard to know. We're in the process of a number of them, so it's still hard to know. You know, I think that we're finding ourselves, you know, First and second rounds are much more accurate than they were three months ago in terms of you know, you know, where your first out loan, where you end up at. It seems to be a lot closer and more accurate.
Okay. very helpful color. Thank you.
Sure. Thanks.
Thank you. There are no further questions at this time. I will now turn the call back to Aaron Halfacre for closing remarks.
Thank you very much, operator. Thank you all for joining the call. You know, look, I think we executed. We understand that, you know, we're not giving you we're not spoon-feeding everything we need for this year, but we just think there's a lot of positive potential change on the horizon. That's why I think, if anything, we hope that after, how many? Four or five earnings calls we have, that you can see that we're no nonsense. We execute. I think if you look at it from, you know, an acquisition volume, I mean, we did amount of acquisition volume in our first year without any raise that was on par with, like, you know, PINE and GOOD and a lot of these other bigger, more established teams.
We can do it. I think that's important. I think we've shown that we didn't make any sort of foolish capital market decisions that you might see typically or what you expect typically of a very small REIT. You know, I think we're obviously disappointed in our share price. You know, the NAV that we had Cushman calculate, you know, shows that, you know, there is still intrinsic value there. What we're suffering from is very, you know, idiosyncratic. We have, you know, I think our average daily volume going in today was 14,000 shares. That's a very small amount of the 7.8 million shares that are freely tradable. I actually did a little bit of a liquidity analysis.
If you look at our net lease peers and you look at sort of the 12 months of average trading volume as your numerator, and you look at weighted average shares outstanding as your denominator, most of our larger brothers trade anywhere from 125%-200% volume, right? Their shares are turning over fairly healthy. If you look at sort of microcap names and then like, you know, Medalist or SQFT or GIPR, you know, some that some people liken us to, even they trade sort of like, you know, 100%-125% volume. I did the math on ours, and we're trading like 75%. We're hardly trading at all, which is evident by the float.
I also looked at analysis. Our records suggest that more than 60% of our investors did not do anything. They did not sell from prior to listing to now. In fact, many of them are dripping. It's a very sticky base. I think our investor base is unlike any other. If you go to think about PICO or you think about all these non-traded REITs that have come out, they were institutionally raised, FA type accounts. You know, these are they're legacy non-traded, not probably dissimilar than B REITs type. Ours were true Retail. I mean, these were people who came in off the Internet, and they were writing $5,000 checks. There's a difference in that.
You can see it in our share price, in the sense that the people who did sell sold, and there wasn't any buying volume to support it, and then the others haven't sold. We, we're understanding that, you know, we're almost trading by appointment and that there are a given day I can watch and see 1,000 shares trade in like eight hours. It can move us up 5% or down 5%. We, we understand that over time, we have to solve for that float. We understand the dilemma of trying to solve for that float with such a low share price. We're, you know, I think we're executing.
You know, when we get to a spot where the capital markets are more favorable, I don't think they're favorable right now. I think there's still uncertainty. My guess is that's where, you know, our peers will lead and we'll lag still because of being under followed, is that we will be a compelling opportunity. We will have executed efficiently, and the price will reflect that. Right now, what we're doing is execution because we can control for that. I think over time, the market will start to see that, you know, we know what we're doing. We're gonna get to the size we need. We're gonna get the float that we need, and that's going to allow, you know, all the gears to work properly. Until then, you know, thank you for your time and look forward.
We'll keep our heads down. I gotta get on an airplane tomorrow and look at another property, and we're gonna keep busy. Thank you.
Thank you. That concludes today's conference. All parties may disconnect.