Medalist Diversified REIT, Inc. (MDRR) | Investment Case

1. Company Snapshot

1.a. Company Description

Medalist Diversified REIT Inc.is a Maryland corporation formed on September 28, 2015.Beginning with our taxable year ended December 31, 2017, we believe that we have operated in a manner qualifying us as a real estate investment trust (REIT), and we have elected to be taxed as a REIT for federal income tax purposes.

Our company serves as the general partner of Medalist Diversified Holdings, LP which was formed as a Delaware limited partnership on September 29, 2015.Our company was formed to acquire, reposition, renovate, lease and manage income-producing properties, with a primary focus on (i) commercial properties, including flex-industrial and retail properties, (ii) multi-family residential properties and (iii) limited service hotel properties in secondary and tertiary markets in the southeastern part of the United States, with an expected concentration in Virginia, North Carolina, South Carolina, Georgia, Florida and Alabama.

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1.b. Last Insights on MDRR

Medalist Diversified REIT, Inc. (MDRR) has garnered attention with Zacks initiating coverage, citing promising growth prospects and financial health. Despite a challenging REIT sector, with April witnessing a -6.45% decline and 84.62% of REIT securities experiencing negative returns, MDRR's prospects appear resilient. As a microcap REIT, the company faces sector-wide headwinds, but its growth potential may help it navigate these challenges. Zacks' neutral recommendation suggests a cautiously optimistic outlook, highlighting MDRR's financial stability and potential for growth.

1.c. Company Highlights

Last Price	13.1
Change Percentage	-2.46%
Open	13.41
Previous Close	13.43
Market Cap ( Millions)	17
Volume	14827
Year High	15.0
Year Low	9.55
M A 50	13.37
M A 200	12.29

FCF Yield	0.74%
Dividend Yield	2.04%
ROE	-16.52%
Debt / Equity	331.16%
Net Debt / EBIDTA	967.46%
Price To Book	1.32
Price Earnings Ratio	-7.8
Price To FCF	135.05
Price To sales	1.73
EV / EBITDA	13.47

2. Transcript Summary

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3. NewsRoom

Zacks Initiates Coverage of Medalist Diversified REIT With Neutral Recommendation

May -29

Source: zacks.com

The State Of REITs: May 2025 Edition

May -23

Source: seekingalpha.com

5 U.S. REITs Announce Dividend Increases In April

May -14

Source: seekingalpha.com

Medalist Diversified REIT, Inc. Announces Common Stock Dividend of $0.0675 Per Share

Apr -04

Source: businesswire.com

The State Of REITs: February 2025 Edition

Feb -21

Source: seekingalpha.com

The State Of REITs: November 2024 Edition

Nov -25

Source: seekingalpha.com

The State Of REITs: August 2024 Edition

Aug -26

Source: seekingalpha.com

Top 4 Real Estate Stocks That Could Lead To Your Biggest Gains In Q3

Jul -11

Source: benzinga.com

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (4.50%)

6. Segments

Retail Center Properties

Expected Growth: 4.5%

Growing demand for experiential retail, increasing e-commerce resistance, and rising consumer spending are driving the growth of retail center properties. Additionally, the diversified portfolio of grocery-anchored shopping centers and power centers across the US is expected to benefit from the steady demand for essential goods and services.

Flex Center Property

Expected Growth: 4.5%

The Flex Center property's growth is driven by Richmond's strong industrial market, fueled by its strategic location and access to major transportation routes. The property's modern amenities and proximity to major employers also contribute to its growth potential.

7. Detailed Products

Net-Leased Properties

Medalist Diversified REIT, Inc. offers a diversified portfolio of net-leased properties, providing a stable source of income through long-term leases with high-credit tenants.

Industrial Properties

The company acquires and manages industrial properties, including warehouses, distribution centers, and manufacturing facilities, providing essential space for businesses.

Office Properties

Medalist Diversified REIT, Inc. owns and operates office properties, offering flexible and amenity-rich spaces for businesses of all sizes.

Retail Properties

The company's retail properties include shopping centers, strip centers, and freestanding retail stores, providing essential retail space for businesses.

Multifamily Properties

Medalist Diversified REIT, Inc. invests in and manages multifamily properties, offering a range of residential options for individuals and families.

Real Estate Investment Management

The company provides real estate investment management services, including property acquisition, development, and asset management.

8. Medalist Diversified REIT, Inc.'s Porter Forces

Forces Ranking

Threat Of Substitutes

The threat of substitutes for Medalist Diversified REIT, Inc. is moderate due to the availability of alternative investment options in the real estate market.

Bargaining Power Of Customers

The bargaining power of customers is low for Medalist Diversified REIT, Inc. as the company's properties are diversified across different regions and asset classes, reducing the dependence on a single customer or group of customers.

Bargaining Power Of Suppliers

The bargaining power of suppliers is moderate for Medalist Diversified REIT, Inc. as the company relies on a network of contractors, architects, and engineers to develop and maintain its properties.

Threat Of New Entrants

The threat of new entrants is high for Medalist Diversified REIT, Inc. due to the relatively low barriers to entry in the real estate investment market, which makes it easier for new companies to enter the market.

Intensity Of Rivalry

The intensity of rivalry is high for Medalist Diversified REIT, Inc. due to the competitive nature of the real estate investment market, where companies compete for a limited number of investment opportunities.

9. SWOT Analysis

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

	Value
Debt Weight	82.09%
Debt Cost	6.07%
Equity Weight	17.91%
Equity Cost	8.47%
WACC	6.50%
Leverage	458.30%

11. Quality Control: Medalist Diversified REIT, Inc. passed 1 out of 9 key points

Strong Liquidity

Low Deb

Strong Interest Coverage

Healthy Cash Flow

Operating Inefficiency

Strong Return On Equity

Consistent Revenue Growth

Consistent Operating Cash Flow Growth

Margin Improvement

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Global Net Lease

A-Score: 6.1/10

Value: 6.9

Growth: 3.3

Quality: 3.6

Yield: 10.0

Momentum: 5.0

Volatility: 8.0

1-Year Total Return ->

Peakstone Realty Trust

A-Score: 5.5/10

Value: 7.0

Growth: 5.1

Quality: 3.6

Yield: 9.0

Momentum: 4.0

Volatility: 4.0

1-Year Total Return ->

Safehold

A-Score: 5.1/10

Value: 5.4

Growth: 5.3

Quality: 5.8

Yield: 7.0

Momentum: 1.5

Volatility: 5.7

1-Year Total Return ->

Medalist Diversified REIT

A-Score: 4.8/10

Value: 5.0

Growth: 4.7

Quality: 2.8

Yield: 5.0

Momentum: 8.0

Volatility: 3.7

1-Year Total Return ->

Generation Income Properties

A-Score: 4.3/10

Value: 7.0

Growth: 5.4

Quality: 3.9

Yield: 3.0

Momentum: 5.0

Volatility: 1.3

1-Year Total Return ->

Empire State Realty Trust

A-Score: 4.2/10

Value: 5.7

Growth: 4.4

Quality: 4.4

Yield: 3.0

Momentum: 1.5

Volatility: 6.3

1-Year Total Return ->

Peers Metrics

12.e Scoring ^Insights

12.f DCF ^BETA

Parameters

Short Term Growth

6.91%

Short term Time

10.0

Long-Term Growth

2.00%

WACC

6.50%

Medalist Diversified REIT, Inc. - US58403P3038

1. Company Snapshot

1.a. Company Description

1.b. Last Insights on MDRR

1.c. Company Highlights

Lower Quality

Lower Yield

Cheaper

More Volatile

Revenues Miss

Average Quality

Fairly Valued

Stable Momentum

Weak Momentum

Strong Momentum

2. Transcript Summary

3. NewsRoom

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (4.50%)

6. Segments

Retail Center Properties

Expected Growth: 4.5%

Flex Center Property

Expected Growth: 4.5%

7. Detailed Products

Net-Leased Properties

Industrial Properties

Office Properties

Retail Properties

Multifamily Properties

Real Estate Investment Management

8. Medalist Diversified REIT, Inc.'s Porter Forces

Forces Ranking

Threat Of Substitutes

Bargaining Power Of Customers

Bargaining Power Of Suppliers

Threat Of New Entrants

Intensity Of Rivalry

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

11. Quality Control: Medalist Diversified REIT, Inc. passed 1 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

13.1$

Current Price

13.1$

Potential

-0.00%

Expected Cash-Flows

12.e Scoring ^Insights

12.f DCF ^BETA