Medalist Diversified REIT Reports 7.1% Revenue Growth to $2.47 Million for Q2 2025

Medalist Diversified REIT, Inc. reported a total revenue of $2.47 million for the quarter ended June 30, 2025, marking a 7.1% increase from $2.30 million in the same period last year. The growth was driven by increased revenues from retail center properties, particularly the Franklin Square and Salisbury Marketplace properties, as well as significant contributions from newly acquired single-tenant net lease (STNL) properties, including Buffalo Wild Wings and United Rentals. However, the overall revenue for the first half of 2025 decreased to $4.79 million from $4.87 million in the prior year, primarily due to the sale of the Hanover Square Shopping Center and ongoing vacancies at the Lancer Center.

The company's operating expenses rose to $2.20 million for the second quarter, up from $2.09 million a year earlier, largely due to increased legal, accounting, and administrative costs. This resulted in an operating income of $241,506, a slight increase from $215,775 in the previous year. However, the net loss attributable to common stockholders was $456,444, compared to a loss of $521,702 in the same quarter of 2024. For the first half of 2025, the net loss deepened to $1.42 million, a significant decline from a profit of $1.43 million in the prior year, largely due to the absence of gains from property sales and increased operational costs.

In terms of strategic developments, Medalist completed the acquisition of two STNL properties in early 2025, which contributed to the revenue growth in that segment. The company also initiated a Delaware Statutory Trust (DST) program aimed at raising capital through private placements, which is expected to diversify its investment strategies. As of June 30, 2025, the company held total assets of $77.66 million, an increase from $75.10 million at the end of 2024, driven by the acquisition of new properties and the reclassification of assets held for sale.

Operationally, Medalist's portfolio consisted of 12 developed properties, with a focus on retail and flex-industrial properties primarily located in Virginia, North Carolina, and South Carolina. The company reported a total of 1,352,409 common shares outstanding as of June 30, 2025, reflecting a slight increase from the previous period. The company also reported a decrease in cash and cash equivalents to $1.95 million from $4.78 million at the end of 2024, attributed to increased capital expenditures and operational costs.

Looking ahead, Medalist anticipates that its new acquisitions and the DST program will enhance its growth potential. However, the company remains cautious about the impact of rising interest rates and economic conditions on its operations and tenant performance. The management believes that the current liquidity position, along with expected cash flows from operations, will be sufficient to meet its obligations in the near term.