How did MDV's Q4 2024 earnings surprise investors?

Modiv Industrial Inc. (MDV) surprised investors with its strong Q4 2024 earnings, exceeding Wall Street expectations with an EPS of $0.07 against a forecast of $0.03. Here are the details:

Despite the positive surprise, the company’s stock price fell by 4.02% in pre-market trading, closing at $14.92, down from the previous day’s close of $15.55. This decline may be attributed to various factors including market conditions, investor sentiment, and the broader economic environment. The company's strategic focus on reducing property expenses and operational costs contributed to improved financial performance, with Modiv managing to increase its Adjusted Funds from Operations (AFFO) by optimizing expenses. However, the revenue decline due to property sales and the net loss in Q4 2024, compared to a net income in Q4 2022, may have raised concerns among investors. Overall, while the earnings beat was a positive surprise, it was not enough to prevent a decline in the stock price, suggesting that investors may be cautious or adjusting their expectations in light of the broader market context and the company's strategic shifts.