Medalist Diversified REIT, Inc. Concludes Strategic Alternatives Process With Potential Asset Sale and Expected Transition to Internalized Management
July 12 2023 - 04:59PM
Business Wire
Medalist Diversified REIT, Inc. (NASDAQ: MDRR) (the "Company" or
"Medalist"), a Virginia-based real estate investment trust that
specializes in acquiring, owning and managing commercial real
estate in the Southeast region of the U.S., announced today that
the Special Committee (the "Special Committee”) of the Company’s
Board of Directors (the “Board”) has completed its exploration of
strategic alternatives.
Upon the recommendation of the Special Committee, the Board has
approved the Company’s negotiation of the sale of its interests in
four properties from the Company's portfolio. Consummation of the
sale is subject to negotiation of, and entry into, definitive
agreements and related loan assumptions, and there can be no
assurance as to the sales prices or other terms of the sales, or
the timing of any of the sales, or whether such sales will occur.
Further information about this potential transaction will be
disclosed, as appropriate.
Simultaneously, the Company announced that it is exploring
diverse opportunities that might include mergers, investments, or
other strategic combinations, with a focused objective of enhancing
shareholder value.
In line with these strategic shifts, Medalist has commenced
discussions with its external manager as to an internalization of
the Company’s management. If completed, the internalization would
be expected to lead to streamlined operations, reduced costs, and
increased agility, while also fostering a closer alignment between
management's interests and those of the Company’s shareholders. The
transition to an internal management structure, if completed, would
result in changes in several key leadership roles. Medalist is
committed to a smooth transition process and ensuring continuity of
leadership, with the primary focus on preserving and enhancing
shareholder value. Consummation of an internalization is subject to
negotiation of, and entry into, definitive agreements, and there
can be no assurance as to the timing or terms of the
internalization. Further information about this transaction will be
disclosed, as appropriate.
Recognizing the need for financial stability during this
transitional phase, the Board has approved the temporary suspension
of dividends on the Company’s outstanding common stock and
preferred stock for at least the next six months.
The Board extends its gratitude to shareholders for their
patience and feedback throughout this process. As the Company
ventures into this significant period of change, the Board
reaffirms its commitment to enhancing shareholder value and
improving company performance.
Throughout this strategic journey, the Special Committee was
supported by Jones Lang Lasalle Securities Inc., as financial
advisor, and Troutman Pepper Hamilton Sanders LLP, as legal
counsel.
About Medalist Diversified REIT
Medalist Diversified REIT Inc. is a Virginia-based real estate
investment trust that specializes in acquiring, owning and managing
value-add commercial real estate in the Mid-Atlantic and Southeast
regions. The Company’s strategy is to focus on value-add and
opportunistic commercial real estate which is expected to provide
an attractive balance of risk and returns. Medalist utilizes a
rigorous, consistent and replicable process for sourcing and
conducting due diligence of acquisitions. The Company seeks to
maximize operating performance of current properties by utilizing a
hands-on approach to property management while monitoring the
middle market real estate markets in the southeast for acquisition
opportunities and disposal of properties as considered appropriate.
For more information on Medalist, please visit the Company website
at www.medalistreit.com.
Forward-Looking Statements
This press release contains statements that are “forward-looking
statements” within the meaning of the Private Securities Litigation
Reform Act of 1995 and other federal securities laws. Forward
looking statements are not historical and are typically identified
by such words as “believe,” “expect,” “anticipate,” “intend,”
“estimate, “may,” “will,” “should” and “could” and include
statements about the potential asset sales, the Company’s
exploration of diverse opportunities, the temporary suspension of
dividends on the Company’s outstanding common stock and preferred
stock and the potential transition to internalized management and
the impact, if any, of such actions on the Company and the trading
price of the Company’s common stock. Forward-looking statements are
based upon the Company’s present expectations but are not
guarantees or assurances as to future developments or results.
Factors that may cause actual developments or results to differ
from those reflected in forward-looking statements include, without
limitation, adverse changes in the pricing of the Company’s assets,
disruptions associated with management internalizations, increased
costs of, and reduced availability of, capital and those included
in the Company’s most recent Annual Report on Form 10-K and in the
Company’s other filings with the Securities and Exchange
Commission. Investors should not place undue reliance upon
forward-looking statements. The Company disclaims any obligation to
publicly update or revise any forward-looking statements to reflect
changes and new developments except as required by law or
regulation.
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version on businesswire.com: https://www.businesswire.com/news/home/20230712174370/en/
Brent Winn Medalist Diversified REIT, Inc. 804-338-7708
brent.winn@medalistprop.com
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