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., released today a letter
from Francis P. Kavanaugh, the Company’s interim CEO and President,
providing an update on the Company’s activities during the first 30
days of his tenure.
Having reached my 30th day as interim CEO of
Medalist Diversified REIT, Inc. (“MDRR”), I'm pleased to present an
update on our strategic progress, tenant relationships, and
promising trends in the retail industry that I believe bode well
for our future.
- Southeast geographic focus - Nearly 1
million square feet across 5 shopping centers and 3 flex/industrial
assets as of July 31, 2023 - Assumable debt of $61 million of July
31, 2023 - 4.2% weighted average interest rate; 5.8 year weighted
average debt maturity as of July 31, 2023
Leasing remains central to our strategy, with
recent engagements that signal our alignment with market
- Parkway Center: Achieved full occupancy
with a newly-signed 2,569 square foot lease on August 7, 2023 -
Greenbrier Business Center: A new 6,770 square foot lease brings
occupancy to 98% as of August 23, 2023 - Salisbury Marketplace –
Family Dollar: Secured an 8,470 square foot lease renewal for 10
years on July 28, 2023 - Lancer Center – Big Lots: 10-year, 28,257
square foot lease renewal on June 27, 2023 - Ashley Plaza –
CitiTrends: 5-year, 14,880 square foot lease renewal on June 7,
We believe these high-profile new leases and
lease renewals demonstrate our commitment to fostering sustainable
relationships and securing long-term stability.
According to an article in the Wall Street
Journal on August 22, 2023, the retail real estate market has
proven resilient, with remarkable trends including:
- Retail Availability at Record Lows: The
nationwide availability rate now stands at 4.8%, the lowest in 18
years. - Positive Rent Growth: The average asking rent in the U.S.
increased by 6.3% since Q2 2020. - Resilience Despite Economic
Fluctuations: Despite predictions of physical retail’s decline due
to online sales, brick-and-mortar locations are flourishing.
Retail’s strength is largely the result of a sharp drop in retail
construction since the 2008-2009 financial crisis and digitally
native companies are even opening physical stores. - Shift Towards
Suburban Locations: The rise of remote work and suburban living has
driven foot traffic to local stores and shops, benefiting retail
property owners and landlords in these areas.
This resilience signals opportunities for
MDRR to further our retail investments, capitalizing on emerging
consumer behaviors and the adaptability of the retail sector.
The decision to terminate our external
manager and eliminate other positions, thus saving nearly $1
million per year, was a key step in enhancing our financial
To signify my commitment to MDRR, I have
agreed to forgo any compensation for my service as a director and
executive officer of MDRR during the previously announced six-month
suspension of dividends, which took effect on July 12, 2023.
Strategy & Equity Purchases
Our management and directors’ collective
purchase of shares of MDRR’s common and preferred stock in August
2023 totaling approximately $564,000 is a substantial investment,
underscoring our belief in MDRR's potential.
Acquisitions, and Values
Our growth strategy emphasizes acquisitions
that resonate with our newly adopted core values of Seamless
Alignment and Value-Driven. We plan to forge a sustainable model
that reflects our ambitions and respects the dynamic landscape.
Our upcoming annual meeting of shareholders
on September 15, 2023 presents an essential platform for dialogue
and collaboration. We highly value your insights.
Team Unity &
Our team, unified and motivated, embodies our
core values. Together, we're working to craft a transformative path
& Regular Engagement
We are committed to providing regular updates
to our shareholders. Your feedback and partnership drive our
In closing, I want to express my gratitude
for your continued trust and confidence in our shared journey.
Francis P. Kavanaugh Interim CEO and
President, Medalist Diversified REIT, Inc.
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. 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
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 our corporate strategy. 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
version on businesswire.com: https://www.businesswire.com/news/home/20230823710197/en/
Brent Winn Medalist Diversified REIT, Inc.
Medalist Diversified REIT (NASDAQ:MDRR)
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