SEC 8-K filings with transcript text
Apr 8, 2024
2 mdrr-20240408xex99d1.htm
April 8, 2024
Fellow Investors:
Following the release of our 2023 Form 10-K SEC filing, we are pleased to provide a review of fiscal 2023 (“2023”) results and our plans for fiscal 2024 (“2024”).
Foundation First
In the third quarter of 2023, the Board of Medalist Diversified REIT (NASDAQ: MDRR) (“Medalist”), a publicly traded Real Estate Investment Trust (“REIT”), charted a clear and actionable path for our company. We internalized management to streamline costs which, with improved operational performance, allowed us to reinstate the common dividend in the fourth quarter of 2023 at $0.01 per common share, and to double that with our first quarter of 2024 dividend which we just announced at $0.02 per common share. MDRR has reduced debt and increased cash reserves by divesting the Hanover Square retail asset. We augmented shareholder equity through a 721 Exchange (UPREIT) adding a single-tenant net lease (STNL) property. Further, we are in the early stages of converting three existing vacant outparcels to single-tenant net lease assets to enhance shareholder value.
We have enhanced governance with the addition of two experienced independent directors. An advisory board of industry experts has been established to steer us forward, and we have refreshed our leadership team with a new CEO. Looking ahead, we have identified growth opportunities to pursue as the market shifts, and distilled our activities to their core, embracing efficiency and value creation.
Groundwork Complete: The Path Forward
“We invite conversations with investors who value a public REIT defined by a simple capital structure, positive cashflow, easy-to-understand investments, and attractive debt terms.”
Medalist has assembled a high-quality portfolio in the sunbelt's dynamic markets including flex industrial spaces, anchored retail locations and our to-be-developed single-tenant net lease assets. We are benefiting from interest costs that remain below current market rates. Prudent financial management has reduced debt, lowered overhead, and trimmed compensation expenses, all contributing to an enhanced funds from operations (“FFO”) in 2023 compared to 2022. Additionally, our team has demonstrated its confidence in our vision by significantly investing in our company alongside our shareholders.
However, bridging the gap between private valuations and public market realities remains challenging, especially when capitalization rates remain below our weighted average cost of capital. Despite a streamlined overhead structure, it still represents a substantial part of our modest equity capital base, and the costs associated with regulatory compliance loom large against our present revenue.
Public REITs: Real Estate Accessible to All
The U.S. MSCI REIT Index remains more than 20% below the high reached before the Federal Reserve embarked on its most aggressive interest rate hiking cycle in the post-war period. With current cost of capital above cap rates, we are embracing patience and focusing on positioning our company for a more favorable capital market environment for public REITs while we identify ways to create additional revenue with our current equity base and portfolio.
On the Upswing
Despite a difficult period for capital markets for publicly traded REITs, Medalist’s portfolio and operating performance remained strong. In 2023, Medalist reported a portfolio occupancy rate of 97.2%, a 1.2% improvement on a year-over-year basis compared to 2022, demonstrating the resiliency of our portfolio and strong economic trends in the local markets in which our tenants operate.
The robust performance of our portfolio translated into strong operating results. In 2023, Medalist reported a net loss of $4.6 million, representing a $0.2 million decrease from the $4.8 million net loss reported for 2022. Excluding one-time management restructuring expenses of $2.1 million that are not considered core to our business, Medalist would have reported a net loss of $2.5 million in 2023, which would have represented a $2.3 million improvement over the unadjusted net loss of $4.8 million reported in 2022. Medalist’s net operating income (“NOI”) of $7.3 million in 2023, represented a $0.4 million increase compared to 2022 levels—an encouraging 6.5% year-over-year growth.
Earnings before interest tax depreciation and amortization (“EBITDA”) for 2023 stood at $3.4 million, down from $4.3 million in 2022. EBITDA for 2023 excluding the adjustment for the one-time management restructuring fees represented a notable increase of $1.1 million relative to 2022 levels, representing a substantial 25.4% year-over-year growth. This underscores our commitment to cost reduction without compromising property performance or tenant satisfaction.
In terms of FFO and adjusted funds from operations (“AFFO”), or cash earning
Nov 13, 2023
2 mdrr-20231113xex99d1.htm
Exhibit 99.1
Financial Supplement
Table of Contents
Definitions
Condensed Consolidated Balance Sheets as of September 30, 2023 and December 31, 2022
Condensed Consolidated Statements of Operations for the three and nine months ended September 30, 2023 and 2022
Condensed Consolidated Statements of Cash Flows for the nine months ended September 30, 2023 and 2022
Funds from Operations (FFO) and Adjusted Funds from Operations (AFFO) for the three and nine months ended September 30, 2023 and 2022
NOI Reconciliations for the three and nine months ended September 30, 2023 and 2022
Same Property NOI Reconciliation for the three and nine months ended September 30, 2023 and 2022
EBITDA Reconciliations for the three and nine months ended September 30, 2023 and 2022
Same Property Revenues
Same Property Statistics – Retail and Flex Properties
Weighted Average Lease Term
Mortgage Loan Data
Weighted Average Mortgage Payable Maturity
Weighted Average Mortgage Payable Interest Rate
Definitions
Investors and analysts following the real estate industry utilize certain financial measures as supplemental performance measures, including net operating income ("NOI"), Same Property NOI, earnings before interest, taxes, depreciation and amortization for real estate ("EBITDA"), Funds from operations (“FFO”) and Adjusted FFO (“AFFO”).
While we believe net income available to common stockholders, as defined by accounting principles generally accepted in the United States of America (“U.S. GAAP”), is the most appropriate measure, we consider NOI, Same Property NOI, EBITDA, and FFO and AFFO, given their wide use by and relevance to investors and analysts, appropriate supplemental performance measures. NOI provides a measure of rental operations, and does not include depreciation and amortization, interest expense and non-property specific expenses such as corporate-wide interest expense and general and administrative expenses. As used herein, we calculate the following non-U.S. GAAP measures as follows:
• NOI from property operations is calculated as net loss, as defined by U.S. GAAP, plus preferred dividends, legal, accounting and other professional fees, corporate general and administrative expenses, depreciation, amortization of intangible assets and liabilities, net amortization of above and below market leases, interest expense, including amortization of financing costs, share based compensation expense, loss on impairment, impairment of assets held for sale, loss (gain) on disposition of investment properties, loss on extinguishment of debt, other income and other expenses. The components of NOI consist of recurring rental and reimbursement revenue, less real estate taxes and operating expenses, such as insurance, utilities, and repairs and maintenance. NOI presented in this financial supplement includes an adjustment to the Company’s net loss for amortization of above and below market leases and, as a result, varies from NOI presented in the Company’s Quarterly Report on Form 10-Q for the three and nine months ended September 30, 2023 and 2022.
• Same Property NOI is calculated as the NOI of all properties owned during the entire periods presented with the exclusion of any properties acquired or sold during the periods presented.
• EBITDA is net income, as defined by U.S. GAAP, plus preferred dividends, interest expense, including amortization of financing costs, depreciation and amortization, net amortization of acquired above and below market lease revenue, loss on impairment, impairment of assets held for sale, loss (gain) on disposition of investment properties, and loss on extinguishment of debt.
NOI, Same Property NOI, Same Property Revenues, and EBITDA, do not represent cash generated from operating activities in accordance with U.S. GAAP and are not necessarily indicative of cash available to fund cash needs, including the repayment of principal on debt, capital expenditures and payment of dividends and distributions. NOI, Same Property NOI, and EBITDA should not be considered as substitutes for net income applicable to common stockholders (calculated in accordance with U.S. GAAP) as a measure of results of operations or cash flows (calculated in accordance with U.S. GAAP) as a measure of liquidity. NOI, Same Property NOI, and Adjusted EBITDA, as currently calculated by us, may not be comparable to similarly titled, but variously calculated, measures of other REITs.
FFO and AFFO, non-GAAP measures, are an alternative measure of operating performance, specifically as it relates to results of operations and liquidity. FFO is computed in accordance with standards established by the Board of Governors of the National Association of Real Estate Investment Trusts (“NAREIT”) in its March 1995 White Paper (as amended in November 1999, April 2002 and December 2018). As def
Aug 9, 2023
2 mdrr-20230809xex99d1.htm
Exhibit 99.1
Financial Supplement
Table of Contents
Definitions
Condensed Consolidated Balance Sheets as of June 30, 2023 and December 31, 2022
Condensed Consolidated Statements of Operations for the three and six months ended June 30, 2023 and 2022
Condensed Consolidated Statements of Cash Flows for the six months ended June 30, 2023 and 2022
Funds from Operations (FFO) and Adjusted Funds from Operations (AFFO) for the three and six months ended June 30, 2023 and 2022
NOI Reconciliations for the three and six months ended June 30, 2023 and 2022
Same Property NOI Reconciliation for the three and six months ended June 30, 2023 and 2022
EBITDA Reconciliations for the three and six months ended June 30, 2023 and 2022
Same Property Revenues
Same Property Statistics – Retail and Flex Properties
Weighted Average Lease Term
Mortgage Loan Data
Weighted Average Mortgage Payable Maturity
Weighted Average Mortgage Payable Interest Rate
Definitions
Investors and analysts following the real estate industry utilize certain financial measures as supplemental performance measures, including net operating income ("NOI"), Same Property NOI, earnings before interest, taxes, depreciation and amortization for real estate ("EBITDA"), Funds from operations (“FFO”) and Adjusted FFO (“AFFO”).
While we believe net income available to common stockholders, as defined by accounting principles generally accepted in the United States of America (U.S. GAAP), is the most appropriate measure, we consider NOI, Same Property NOI, EBITDA, and FFO and AFFO, given their wide use by and relevance to investors and analysts, appropriate supplemental performance measures. NOI provides a measure of rental operations, and does not include depreciation and amortization, interest expense and non-property specific expenses such as corporate-wide interest expense and general and administrative expenses. As used herein, we calculate the following non-U.S. GAAP measures as follows:
• NOI from property operations is calculated as net loss, as defined by U.S. GAAP, plus preferred dividends, legal, accounting and other professional fees, corporate general and administrative expenses, depreciation, amortization of intangible assets and liabilities, net amortization of above and below market leases, interest expense, including amortization of financing costs, share based compensation expense, loss on impairment, impairment of assets held for sale, loss (gain) on disposition of investment properties, loss on extinguishment of debt, other income and other expenses. The components of NOI consist of recurring rental and reimbursement revenue, less real estate taxes and operating expenses, such as insurance, utilities, and repairs and maintenance. NOI presented in this financial supplement includes an adjustment to the Company’s net loss for amortization of above and below market leases and, as a result, varies from NOI presented in the Company’s Quarterly Report on Form 10-Q for the three and six months ended June 30, 2023.
• Same Property NOI is calculated as the NOI of all properties owned during the entire periods presented with the exclusion of any properties acquired or sold during the periods presented.
• EBITDA is net income, as defined by U.S. GAAP, plus preferred dividends, interest expense, including amortization of financing costs, depreciation and amortization, net amortization of acquired above and below market lease revenue, loss on impairment, impairment of assets held for sale, loss (gain) on disposition of investment properties, and loss on extinguishment of debt.
NOI, Same Property NOI, Same Property Revenues, and EBITDA, do not represent cash generated from operating activities in accordance with U.S. GAAP and are not necessarily indicative of cash available to fund cash needs, including the repayment of principal on debt, capital expenditures and payment of dividends and distributions. NOI, Same Property NOI, and EBITDA should not be considered as substitutes for net income applicable to common stockholders (calculated in accordance with U.S. GAAP) as a measure of results of operations or cash flows (calculated in accordance with U.S. GAAP) as a measure of liquidity. NOI, Same Property NOI, and Adjusted EBITDA, as currently calculated by us, may not be comparable to similarly titled, but variously calculated, measures of other REITs.
FFO and AFFO, non-GAAP measures, are an alternative measure of operating performance, specifically as it relates to results of operations and liquidity. FFO is computed in accordance with standards established by the Board of Governors of the National Association of Real Estate Investment Trusts (“NAREIT”) in its March 1995 White Paper (as amended in November 1999, April 2002 and December 2018). As defined by NAREIT, FFO represents net income (computed in acc
This page provides Medalist Diversified REIT Inc. (MDRR) earnings call transcripts from SEC 8-K filings along with AI-powered predictions for post-earnings price movements. Our machine learning models analyze historical earnings data, pre-earnings price patterns, volume changes, and volatility to predict 1-day, 5-day, and 20-day returns after each earnings release.
Earnings transcripts are sourced directly from SEC EDGAR filings. Predictions are generated using gradient boosting models trained on MDRR's historical earnings reactions. All predicted returns are shown as percentages, and predicted prices are calculated from the closing price at the time of prediction. Past performance does not guarantee future results.