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Medalist Diversified Reit (MDRR)
:MDRR
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Medalist Diversified REIT (MDRR) AI Stock Analysis

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MDRR

Medalist Diversified REIT

(NASDAQ:MDRR)

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Neutral 50 (OpenAI - 4o)
Rating:50Neutral
Price Target:
$12.50
▼(-6.92% Downside)
The overall stock score of 50 reflects significant financial challenges, including high leverage and cash flow issues, which are the most impactful factors. Technical analysis provides some positive signals, but caution is advised due to overbought indicators. Valuation metrics are weak, with a negative P/E ratio indicating financial instability.

Medalist Diversified REIT (MDRR) vs. SPDR S&P 500 ETF (SPY)

Medalist Diversified REIT Business Overview & Revenue Model

Company DescriptionMedalist 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.
How the Company Makes MoneyMedalist Diversified REIT generates revenue primarily through rental income from its diverse portfolio of properties. The company earns income by leasing space to tenants in its commercial, residential, and industrial properties, which can include long-term leases and short-term rentals. Additionally, MDRR may engage in property sales or refinancing activities that provide capital gains and enhance liquidity. The REIT structure allows the company to distribute a significant portion of its taxable income to shareholders in the form of dividends, making rental income a key revenue stream. Strategic partnerships with property management firms and real estate developers further enhance its operational efficiency and market reach, contributing to overall earnings.

Medalist Diversified REIT Financial Statement Overview

Summary
Medalist Diversified REIT is facing financial difficulties. Despite slight revenue growth, profitability is a significant issue with negative net income and declining margins. The balance sheet shows high leverage, posing risks in a rising interest rate environment. Cash flow challenges further compound the company's financial struggles.
Income Statement
45
Neutral
The income statement shows a mixed performance. The TTM data reveals a slight revenue growth of 1.73%, but the company is struggling with profitability, as indicated by a negative net profit margin of -23.54%. The gross profit margin remains healthy at 65.13%, but the EBIT and EBITDA margins have declined significantly compared to previous years, indicating operational challenges.
Balance Sheet
40
Negative
The balance sheet highlights financial leverage concerns, with a high debt-to-equity ratio of 3.31. The return on equity is negative at -16.52%, reflecting ongoing losses. The equity ratio is relatively low, suggesting a heavy reliance on debt financing, which poses potential risks in a rising interest rate environment.
Cash Flow
35
Negative
Cash flow analysis indicates significant challenges. Free cash flow has decreased by 87.03% in the TTM period, and the operating cash flow to net income ratio is low at 0.15, suggesting difficulties in converting earnings into cash. The free cash flow to net income ratio is also weak, indicating limited cash generation relative to net losses.
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue9.65M9.74M10.27M11.09M11.47M9.28M
Gross Profit6.28M7.38M7.67M7.16M6.51M4.52M
EBITDA4.39M7.42M5.73M4.32M4.20M-1.64M
Net Income-2.27M27.52K-4.57M-4.77M-4.36M-8.18M
Balance Sheet
Total Assets77.66M75.10M82.75M87.92M92.55M79.27M
Cash, Cash Equivalents and Short-Term Investments1.95M4.78M2.41M3.92M4.37M2.86M
Total Debt44.40M50.00M51.77M61.34M54.52M50.86M
Total Liabilities52.34M54.10M69.02M69.22M69.55M67.56M
Stockholders Equity13.41M15.03M12.32M17.25M21.47M10.86M
Cash Flow
Free Cash Flow123.26K893.74K-1.38M175.32K295.93K-2.10M
Operating Cash Flow1.23M1.80M104.01K1.19M832.61K-1.68M
Investing Cash Flow-1.25M2.06M-1.48M-9.32M-19.14M-414.36K
Financing Cash Flow-1.81M-1.60M-474.14K6.40M20.60M5.12M

Medalist Diversified REIT Technical Analysis

Technical Analysis Sentiment
Positive
Last Price13.43
Price Trends
50DMA
12.01
Positive
100DMA
11.71
Positive
200DMA
12.04
Positive
Market Momentum
MACD
0.37
Positive
RSI
53.92
Neutral
STOCH
26.61
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For MDRR, the sentiment is Positive. The current price of 13.43 is above the 20-day moving average (MA) of 13.42, above the 50-day MA of 12.01, and above the 200-day MA of 12.04, indicating a bullish trend. The MACD of 0.37 indicates Positive momentum. The RSI at 53.92 is Neutral, neither overbought nor oversold. The STOCH value of 26.61 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for MDRR.

Medalist Diversified REIT Risk Analysis

Medalist Diversified REIT disclosed 93 risk factors in its most recent earnings report. Medalist Diversified REIT reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks

Medalist Diversified REIT Peers Comparison

Overall Rating
UnderperformOutperform
Sector (65)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
59
Neutral
$379.22M-11.77-6.84%4.74%
57
Neutral
$150.75M-36.31-0.97%7.84%-2.40%42.84%
50
Neutral
$29.73M471.19-17.09%1.94%-6.82%7.33%
45
Neutral
$5.22M-0.50-144.06%0.70%26.52%
43
Neutral
$8.69M-0.52-54.84%1.35%-129.09%
42
Neutral
$8.72M-0.3067.31%43.87%-4681.28%
65
Neutral
$2.17B12.193.79%4.94%3.15%1.96%
* Real Estate Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
MDRR
Medalist Diversified REIT
13.43
1.68
14.30%
GIPR
Generation Income Properties
0.96
-1.23
-56.16%
SQFT
Presidio Property Trust
5.99
-1.19
-16.57%
MDV
Modiv
14.84
-0.82
-5.24%
FVR
FrontView REIT, Inc.
13.61
-4.89
-26.43%
MKZR
MacKenzie Realty Capital, Inc.
5.20
-27.96
-84.32%

Medalist Diversified REIT Corporate Events

Business Operations and StrategyRegulatory Filings and Compliance
Medalist Diversified REIT Enters Exchange Agreement with CEO
Neutral
Aug 11, 2025

On August 8, 2025, Medalist Diversified REIT, Inc. entered into an exchange agreement with its CEO, Francis P. Kavanaugh, to swap 240,004 shares of common stock for an equal number of limited partnership units. This move is intended to help the company maintain compliance with REIT qualifications, ensuring no more than 50% of its stock is owned by five or fewer individuals. Additionally, the company’s subsidiary, MDR Salisbury, LLC, signed a purchase and sale agreement to sell the Salisbury Marketplace Shopping Center for $10 million, with the transaction expected to close within 60 days, pending certain conditions.

M&A Transactions
Medalist Diversified REIT Completes Pensacola Acquisition
Neutral
Jul 18, 2025

Medalist Diversified REIT, Inc. completed the acquisition of a 42,461 square foot building in Pensacola, Florida, on July 18, 2025. The property, which underwent renovations and a change of use to an automotive facility, was purchased for $14,544,504 and funded through a line of credit.

Dividends
Medalist Diversified REIT Declares Quarterly Dividend
Positive
Jun 27, 2025

On June 27, 2025, Medalist Diversified REIT announced a quarterly dividend of $0.0675 per share on its common stock, payable on July 16, 2025, to shareholders of record as of July 11, 2025. This dividend declaration reflects the company’s ongoing commitment to returning value to its shareholders and may influence investor sentiment and market positioning.

Executive/Board ChangesShareholder MeetingsBusiness Operations and Strategy
Medalist Diversified REIT Holds Annual Meeting Decisions
Neutral
Jun 20, 2025

On June 17, 2025, Medalist Diversified REIT, Inc. held its annual meeting where stockholders elected three Class II directors, approved executive compensation, ratified the appointment of Cherry Bekaert LLP as the independent accounting firm, and approved potential stock issuance to the CEO. These decisions reflect the company’s ongoing governance and strategic financial planning, potentially impacting its operational stability and stakeholder confidence.

M&A Transactions
Medalist Diversified REIT Acquires Pensacola Property
Neutral
Jun 12, 2025

On June 11, 2025, Medalist Diversified REIT‘s subsidiary, MDRR XXV Depositor 1, LLC, entered into an agreement to acquire a commercial property in Pensacola, Florida, for $14,544,504. The acquisition, expected to close within 45 days, is subject to customary real estate industry conditions and involves a $500,000 earnest money deposit.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Aug 21, 2025