Medalist Diversified REIT Reports $2.32 Million Revenue in Q1 2025, Down 9.7%

Medalist Diversified REIT, Inc. reported a total revenue of $2.32 million for the first quarter of 2025, a decrease of approximately 9.7% compared to $2.57 million in the same period of 2024. The decline in revenue was primarily attributed to a significant drop in retail center property revenues, which fell to $1.49 million from $1.85 million, largely due to the sale of the Hanover Square Shopping Center and increased vacancies in other properties. However, the company saw an increase in single-tenant net lease (STNL) property revenues, which rose to $148,630 from $57,955, driven by the acquisitions of the Buffalo Wild Wings and United Rentals properties.

Operating expenses for the quarter increased to $2.86 million, up from $2.57 million in the prior year, reflecting higher costs associated with share-based compensation, legal fees, and a loss on impairment of $61,803. The company reported an operating loss of $552,516, a significant decline from the operating income of $2.76 million recorded in the first quarter of 2024, which had included a gain from the sale of the Hanover Square property. The net loss attributable to common stockholders for the quarter was $1.01 million, compared to a net income of $1.36 million in the previous year.

In terms of strategic developments, Medalist completed the acquisition of two properties during the quarter: the Buffalo Wild Wings Property for $2.62 million and the United Rentals Property for $3.15 million, both funded through the issuance of Operating Partnership (OP) Units. The company also redeemed its remaining mandatorily redeemable preferred stock, resulting in a loss of $9,375 for the quarter. As of March 31, 2025, the company held total assets of $78.23 million, an increase from $75.10 million at the end of 2024, primarily due to the acquisitions.

Operationally, the company reported a total of 12 developed properties, including four retail centers, three flex centers, and five STNL properties. The total equity increased to $25.85 million from $21.00 million, reflecting the issuance of OP Units and the retention of earnings. The company’s cash and cash equivalents decreased to $2.74 million from $4.78 million, influenced by cash used in financing activities, including dividends and stock repurchases.

Looking ahead, Medalist Diversified REIT, Inc. anticipates continued challenges in the retail sector due to economic conditions, including high interest rates and inflation. The company plans to focus on managing its existing portfolio while exploring opportunities for further acquisitions. The management believes that the current liquidity position, along with potential new credit relationships, will support its operational and investment needs in the coming months.