Medalist Diversified REIT (MDRR) AI Stock Analysis

• Market Cap: $29.78M
• Dividend Yield: 1.99%
• Average Volume (3M): 1.53K
• Price to Earnings (P/E): 471.2
• Beta (1Y): -0.03
• Revenue Growth: -6.82%
• EPS Growth: 7.33%
• Country: US
• Employees: N/A
• Sector: Real Estate
• Sector Strength: 53
• Industry: REIT - Diversified
• EPS (TTM): -2.40
• Shares Outstanding: 1,345,260
• 10 Day Avg. Volume: 585
• 30 Day Avg. Volume: 1,531
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 2.32
• Enterprise Value/Revenue: 7.17
• Enterprise Value/Gross Profit: 11.01
• Enterprise Value/Ebitda: 15.77
• 1Y Price Target: $12.50
• Price Target Upside: -7.06% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 0

• Rating: 50 Neutral
• Price Target: $12.50 ▼(-7.06% 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 Business Overview & Revenue Model

Company Description

Medalist 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 Money

Medalist 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

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

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

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.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	9.65M	9.74M	10.27M	11.09M	11.47M	9.28M
Gross Profit	6.28M	7.38M	7.67M	7.16M	6.51M	4.52M
EBITDA	4.39M	7.42M	5.73M	4.32M	4.20M	-1.64M
Net Income	-2.27M	27.52K	-4.57M	-4.77M	-4.36M	-8.18M
Balance Sheet
Total Assets	77.66M	75.10M	82.75M	87.92M	92.55M	79.27M
Cash, Cash Equivalents and Short-Term Investments	1.95M	4.78M	2.41M	3.92M	4.37M	2.86M
Total Debt	44.40M	50.00M	51.77M	61.34M	54.52M	50.86M
Total Liabilities	52.34M	54.10M	69.02M	69.22M	69.55M	67.56M
Stockholders Equity	13.41M	15.03M	12.32M	17.25M	21.47M	10.86M
Cash Flow
Free Cash Flow	123.26K	893.74K	-1.38M	175.32K	295.93K	-2.10M
Operating Cash Flow	1.23M	1.80M	104.01K	1.19M	832.61K	-1.68M
Investing Cash Flow	-1.25M	2.06M	-1.48M	-9.32M	-19.14M	-414.36K
Financing Cash Flow	-1.81M	-1.60M	-474.14K	6.40M	20.60M	5.12M

Medalist Diversified REIT Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 13.45
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: 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 13.45 is above the 20-day moving average (MA) of 13.45, above the 50-day MA of 12.79, and above the 200-day MA of 12.03, indicating a bullish trend. The MACD of 0.17 indicates Positive momentum. The RSI at 51.73 is Neutral, neither overbought nor oversold. The STOCH value of 37.97 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

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	65 Neutral	$2.17B	12.19	3.79%	4.94%	3.15%	1.96%
FVR	59 Neutral	$404.02M	―	-0.37%	6.13%	―	―
MDV	52 Neutral	$145.16M	75.12	-1.11%	8.15%	-2.40%	42.84%
MDRR	50 Neutral	$29.78M	471.19	-17.09%	1.99%	-6.82%	7.33%
GIPR	49 Neutral	$7.67M	―	-270.04%	14.71%	0.70%	26.52%
SQFT	44 Neutral	$8.12M	―	-41.30%	4.02%	1.35%	-129.09%
MKZR	41 Neutral	$9.61M	―	-36.45%	65.91%	40.20%	-92.19%

Medalist Diversified REIT Corporate Events

Medalist Diversified REIT Enters Exchange Agreement with CEO

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.

Medalist Diversified REIT Completes Pensacola Acquisition

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.

Medalist Diversified REIT Declares Quarterly Dividend

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.

Medalist Diversified REIT Holds Annual Meeting Decisions

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.

Medalist Diversified REIT Acquires Pensacola Property

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.