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Medalist Diversified REIT Inc (MDRR)
NASDAQ:MDRR
US Market
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Medalist Diversified REIT (MDRR) AI Stock Analysis

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Medalist Diversified REIT

(NASDAQ:MDRR)

Rating:51Neutral
Price Target:
$10.50
▼(-7.41%Downside)
Medalist Diversified REIT's overall stock score reflects a combination of moderate financial performance and challenging valuation metrics. The company's financials show improvement but are marred by historical volatility and profitability issues. Technical indicators suggest cautious market sentiment, and while the dividend is a positive aspect, the negative P/E ratio underscores significant valuation concerns. Investors should be wary of the underlying risks despite recent improvements.

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 makes money by acquiring commercial properties and generating income through leasing these properties to tenants. The company's revenue model is based on rental income from its diversified portfolio of properties, which includes retail centers, office buildings, and flex/industrial spaces. Additionally, the company seeks to increase property values through strategic property management and improvements, which can lead to increased rental rates and potential property sales at a profit. Partnerships with real estate brokers and property managers are significant in sourcing and managing investments effectively, contributing to the company's earnings.

Medalist Diversified REIT Financial Statement Overview

Summary
Financial performance is moderate with signs of improvement. The income statement shows revenue decline and minimal net profit margin, indicating profitability challenges. However, the balance sheet reflects reduced leverage and increased equity, enhancing financial stability. Cash flow has turned positive, but past volatility suggests caution.
Income Statement
45
Neutral
The income statement reveals moderate performance with significant volatility. The Gross Profit Margin for 2024 is stable, but the Net Profit Margin is minimal at 0.28%, indicating potential profitability challenges. There is a notable revenue decline from 2023 to 2024, with a decrease of approximately 5.3%, suggesting difficulties in maintaining revenue growth. While EBIT and EBITDA margins have improved compared to previous years, this comes after periods of negative EBIT, indicating past operational challenges.
Balance Sheet
55
Neutral
The balance sheet shows improvement in the company's financial structure. The Debt-to-Equity ratio has significantly decreased to 0 in 2024, reflecting a reduction in leverage, which reduces financial risk. Stockholders' Equity has also improved, resulting in an Equity Ratio of approximately 20%, up from previous years, suggesting increased financial stability. However, historical high debt levels have been a concern, indicating potential past financial strain.
Cash Flow
50
Neutral
Cash flow analysis indicates mixed performance. The Free Cash Flow has turned positive in 2024 after being negative in several prior years, reflecting improved cash management. The Operating Cash Flow to Net Income ratio is strong at approximately 65.3, highlighting efficient cash generation relative to net income. However, the Free Cash Flow growth shows volatility, with periods of negative cash flow, indicating past cash flow management issues.
BreakdownDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue9.74M10.27M11.09M11.47M9.28M
Gross Profit7.38M7.67M7.16M6.51M4.52M
EBITDA7.42M3.54M4.60M4.68M2.51M
Net Income27.52K-4.57M-4.97M-10.26M-12.26M
Balance Sheet
Total Assets75.10M82.75M87.92M92.55M79.27M
Cash, Cash Equivalents and Short-Term Investments4.78M2.41M3.92M4.37M2.86M
Total Debt50.00M51.77M61.34M54.52M50.86M
Total Liabilities54.10M69.02M69.22M69.55M67.56M
Stockholders Equity15.03M12.32M17.25M21.47M10.86M
Cash Flow
Free Cash Flow893.74K-1.38M175.32K295.93K-2.10M
Operating Cash Flow1.80M104.01K1.19M832.61K-1.68M
Investing Cash Flow2.06M-1.48M-9.32M-19.14M-414.36K
Financing Cash Flow-1.60M-474.14K6.40M20.60M5.12M

Medalist Diversified REIT Technical Analysis

Technical Analysis Sentiment
Positive
Last Price11.34
Price Trends
50DMA
11.39
Negative
100DMA
11.77
Negative
200DMA
12.03
Negative
Market Momentum
MACD
-0.02
Negative
RSI
52.96
Neutral
STOCH
52.32
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 11.34 is above the 20-day moving average (MA) of 10.95, below the 50-day MA of 11.39, and below the 200-day MA of 12.03, indicating a neutral trend. The MACD of -0.02 indicates Negative momentum. The RSI at 52.96 is Neutral, neither overbought nor oversold. The STOCH value of 52.32 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for MDRR.

Medalist Diversified REIT Peers Comparison

Overall Rating
UnderperformOutperform
Sector (63)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
MDMDV
67
Neutral
$144.80M75.121.54%8.06%-4.13%79.39%
63
Neutral
$6.74B18.39-1.93%7.18%4.59%-25.63%
FVFVR
62
Neutral
$233.42M-0.37%5.27%
55
Neutral
$10.51M-49.21%4.02%2.72%-584.61%
51
Neutral
$24.68M471.19-16.85%2.73%-10.27%-32.99%
44
Neutral
$7.84M-110.42%8.13%10.31%39.90%
38
Underperform
$10.58M-28.98%46.73%43.87%-4679.89%
* Real Estate Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
MDRR
Medalist Diversified REIT
11.34
-0.55
-4.63%
GIPR
Generation Income Properties
1.42
-1.94
-57.74%
SQFT
Presidio Property Trust
8.00
0.32
4.17%
MDV
Modiv
14.40
0.58
4.20%
FVR
FrontView REIT, Inc.
12.42
-6.08
-32.86%
MKZR
MacKenzie Realty Capital, Inc.
0.75
-1.91
-71.80%

Medalist Diversified REIT Corporate Events

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.

Private Placements and FinancingBusiness Operations and Strategy
Medalist Diversified REIT Terminates Revolving Credit Line
Neutral
Apr 30, 2025

On April 30, 2025, Medalist Diversified REIT, Inc. announced the termination of its Amended and Restated Revolving Line of Credit Note as part of a material definitive agreement. This move may impact the company’s financial operations and its strategic positioning within the real estate investment trust sector.

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: Jul 18, 2025