Year Ending December 31, 2024

Supplemental 2024 Financial Information

Year Ending December 31, 2024

Nasdaq: MDRR medalistreit.com

Medalist Diversified REIT Announces 2024 Annual Financial Results

Richmond, VA - March 14, 2025 - Medalist Diversified REIT, Inc. (NASDAQ: MDRR), a Virginia-based real estate investment trust specializing in acquiring, owning, and managing value-add properties in the Southeast, announced its financial and operational results for the year ended December 31, 2024.

•Annual 2024 Highlights

• • Net Income: Net income per diluted share was $0.024.

• • Funds from Operations (FFO): FFO per diluted share was $1.52, reflecting the company's strong focus on operational efficiency and portfolio stability.

• • Adjusted Funds from Operations (AFFO): AFFO per diluted share was $1.09, providing a solid foundation for dividends and continued portfolio performance.

• • Same-Store Net Operating Income (SS NOI) Growth:

  • • Total Portfolio: SS NOI posted an increase of 4.6% year-over-year, reflecting the stability of the company's assets.

  • • Retail Properties: SS NOI increased 0.9% year-over-year, supported by high tenant retention in key locations.

  • • Flex Industrial Properties: SS NOI rose significantly by 14.6% year-over-year, highlighting strong demand for the company's industrial assets.

• • Portfolio Composition: As of December 31, 2024, Medalist owned 10 assets across 4 states, comprising a diversified mix of retail, flex industrial, and net lease properties.

• • External Growth: During 2024, the company completed the acquisition of one property for a total purchase price of $2.4 million and successfully divested one asset for $3.1 million, further optimizing its portfolio composition.

"Our 2024 financial results reflect the continued strength of our portfolio and disciplined approach to capital allocation. The year-over-year growth in Same-Store Net Operating Income, particularly in our flex industrial assets, underscores the resilience of our investment strategy. We remain focused on driving operational efficiency and delivering long-term value for our shareholders." said Chief Financial Officer Brent Winn.

2024 Overview

Key Highlights and Portfolio Data

Medalist Diversified REIT (NASDAQ: MDRR) is a real estate investment trust that specializes in acquiring, owning, and managing value-add commercial real estate. As of December 31, 2024, our portfolio consists of 9 assets in the Southeast and 1 asset in Illinois totaling approximately 782 thousand square feet.

Current Portfolio Composition

Single Tenant Net Lease (STNL) Portfolio Highlights

Our strategic review led us to the decision to increase our exposure to STNL assets.

STNL assets offer stability and predictable income streams, making them attractive investments.

Financial Services Electronics Casual Dining

Leases 1 1 1 3

• 11,043 40.6%

• 7,417 27.3%

  Tenants

  Number of Tenant Concept

  Rent ($)

  % of Rent

  T-Mobile

  • 8,750 32.2%

  • Citibank

    East Coast Wings

    Total

  • 27,210 100.0%

  Leases 1 1 1 3

  • 11,043 40.6%

  • 7,417 27.3%

    On March 28, 2024, the Company completed its acquisition of the Citibank Property, a 4,350 square foot single tenant building on 0.45 acres located in Chicago, Illinois, through a wholly-owned subsidiary.

Current Portfolio Composition

Retail Portfolio Highlights

Our retail portfolio's tenant brands speak for themselves.

Our properties attract tenants that have proven to be resilient in challenging economic conditions and market downturns.

• 27,008 6.3% Ashley Furniture Home Store Food Lion

  2

• 37,233 8.6%

  1

• 25,000 5.8%

• Citi Trends

  Altitude Trampoline Park Hobby Lobby

  3

• 25,835 6.0%

  1

• 21,875 5.1%

  2

• 21,195 4.9%

• 1

• 14,211 3.3%

• Harbor Freight Tools Planet Fitness Monster Mini Golf Big Lots

  1

• 15,098 3.5%

  1

• 12,951 3.0%

  KJ's Market

  1

• 11,720 2.7%

13.2% of our retail portfolio's rent is derived from Amazon resistant experiential tenants.

Specialty Experiential Professional Services Health & Fitness Home Furnishings Grocery

13

75,834 17.6%

10

50,529 11.7%

3

40,733 9.4%

Apparel Sporting Goods

6

38,258 8.9%

Quick Service Restaurants Supercenters & Clubs Financial Services

3

15,229 3.5%

5

12,100 2.8%

Electronics Dollar Stores Automotive Services Other

4

10,105 2.3%

1

2,868 0.7%

Current Portfolio Composition

Flex / Industrial Portfolio Highlights

28% of our rent is derived from non-retail "workforce" real estate.

We invest in "workforce" or "necessity" real estate because we believe it is more stable with lower turnover and less volatile economic swings.

Top 10 Tenants

Gravitopia

1

24,264 13.5%

GBRS Group S&ME

1

9,655 5.4%

Turning Point Greenville Church Bridge Church

1

6,956 3.9%

5,948 3.3% First Onsite Property Restoration Walder Foundation Products Make it Happen Media

1

6,104 3.4%

Science Applications International Corporation (SAIC) TK Elevator

1

5,259 2.9%

1 10

Portfolio Diversification

Our Portfolio is Concentrated in High Growth Sunbelt Markets

Secondary and Tertiary market focus generates a more attractive return profile due to less competition from institutional investors.

Sunbelt state focus provides growing markets where jobs and economic development are abundant.

Lancer Center Ashley Plaza Franklin Square Salisbury Marketplace Greenbrier Business Center Brookfield Center

Retail Retail Retail Retail Flex Flex Flex STNL

• Lancaster, SC 181,590 80.2%

• Goldsboro, NC 156,012 100.0%

• Gastonia, NC 134,239 100.0%

• Salisbury, NC 79,732 88.3%

• Chesapeake, VA 89,280 94.8%

• Greenville, SC 64,880 100.0%

• Parkway

• Virginia Beach, VA 64,109 100.0%

  STNL Portfolio

• Various 12,350 100.0%

* The map graphic includes undeveloped outparcels and does not reflect the Citibank asset in Chicago, IL.

Consolidated Statements of Operations

Consolidated Statements of Operations REVENUE

Retail center property revenues Flex center property revenues

$

• 6,624,734 $

• 7,541,914 $ 2,504,652 226,260 10,272,826

(917,180) (12.2%)

2,750,499 359,894

245,847 9.8%

Single tenant net lease property revenues Total Revenue

133,634 59.1%

9,735,127

(537,699) (5.2%) OPERATING EXPENSES

Flex center property operating expenses

Single tenant net lease property operating expenses Bad debt expense

697,864

686,818

11,046 1.6%

31,977

31,175

802 2.6%

39,910

63,282 -

(23,372)

(36.9%)

Legal, accounting and other professional fees

Corporate general and administrative expenses Management restructuring expenses

1,170,270

968,435 -

1,390,941

2,066,521

484,345

(2,066,521)

(220,671)

484,090

(15.9%) 99.9% -%

Depreciation and amortization Total Operating Expenses

3,915,483 8,723,519

4,574,163 11,269,990 - - - (997,164) 3,540,900 (4,538,064)

(658,680) (14.4%)

Gain on disposal of investment property Loss on extinguishment of debt

(2,546,471) 2,819,502

(22.6%)

Loss on redemption of mandatorily redeemable preferred stock Operating Income (Loss)

2,819,502

(51,837)

(47,680)

(51,837) (47,680)

-% -% -%

3,731,593

4,728,757 (474.2%)

Interest expense

3,019,799 711,794

(521,101) (14.7%)

Other income

Other expense

Net Income (Loss)

Less: Net income attributable to Hanover Square Property noncontrolling interests Less: Net loss attributable to Parkway Property noncontrolling interests

744,325

88,856 (56,325)

(4,573,354)

(84,564)

49,274

5,249,858 39,582 28,239 5,317,679

80.3% (33.4%)

(116.3%)

453,928

7,714 (8,482) (1,307)

• 446,214 5,784.5%

  (3,234)

  5,248

  (61.9%)

  Less: Net income (loss) attributable to Operating Partnership noncontrolling interests

  266,107

• 267,414 (20,460.1%)

Net Income (Loss) Attributable to Medalist Common Shareholders

$

27,524

• $ (4,571,279)

$ 4,598,803 (100.6%)

Earnings (loss) per common share - basic

$

0.024 1,127,768

$

(4.12) 1,109,574

$

4.14 (100.6%)

Weighted-average number of shares - diluted

0.024 1,132,588

1,109,574

4.14 23,014

2.1%

Dividends paid per common share

$

0.17

$

0.32

$

(0.15)

(46.9%)

Funds From Operations and Adj. Funds From Operations

Net Income (Loss)

$

744,325

$

(4,573,354)

$ 5,317,679 (116.3%)

Depreciation of tenant improvements

757,318

836,096 -

(78,778) (9.4%)

Amortization of leasing commissions

Gain on disposal of investment property

Loss on impairment

Gain on extinguishment of lease liability

Loss on extinguishment of debt

Loss on redemption of mandatorily redeemable preferred stock

199,465

152,661

2,964 46,804

-% 30.7% (30.8%)

(2,819,502)

- 90,221 - - -

(2,819,502)

-%

182

(90,039)

(99.8%)

(34,792)

51,837

47,680

(34,792)

51,837

47,680

-% -% -%

Management restructuring expenses

56,325 -

84,564 2,066,521

(28,239) (2,066,521)

-%

(21.8%)

1,253,081 1,257,901

1,122,920 1,122,920

130,161 11.6%

134,981 12.0%

Adjusted Funds From Operations

Funds From Operations (FFO) Attributable to Medalist Common Shareholders Amortization of above market leases

Amortization of below market leases Straight line rent

Capital expenditures

Decrease in fair value of interest rate cap Amortization of loan issuance costs

Amortization of preferred stock discount and offering costs Share-based compensation

$

1,908,177

$

• 91,030 $ 1,817,147

40,850

1,996.2%

93,696

(52,846) (56.4%)

(296,211)

(368,803)

72,592 (19.7%)

(99,106)

(100,010)

904 (0.9%)

(902,397)

(1,483,117)

580,720 (39.2%)

56,325

84,564

(28,239) (33.4%)

100,479

106,882

(6,403) (6.0%)

246,966

277,500

243,054 - 3,912 277,500 (23,372)

1.6% -%

Bad debt expense

39,910

63,282

(36.9%)

AFFO per common share equivalent - diluted

$ $

1.10 1.09

$ $

(1.13) (1.13)

$ 2.22

(196.9%) (196.5%)

Weighted-average number of common shares and equivalents - basic1 Weighted-average number of common shares and equivalents - diluted 1

1,253,081 1,257,901

1,122,920 1,122,920

130,161 11.6%

134,981 12.0%

1) Common share equivalents include Operating Partnership ("OP") Units in Medalist Diversified REIT's Operating Partnership. These OP Units have economic rights equivalent to Medalist common shares but may be subject to certain transfer restrictions and conversion terms as outlined in the partnership agreement.

EBITDAre and GAAP Net Operating Income (NOI)

EBITDAre

Net Income (Loss)

$

• 744,325 $

(4,573,354)

$ 5,317,679 (116.3%)

Plus: Amortization of preferred stock discount and offering costs Plus: Interest expense

246,966

243,054

3,912 1.6%

Plus: Depreciation and amortization

3,915,483

4,574,163

(658,680) (14.4%)

Less: Net amortization of above and below market leases Less: Gain on sale of investment properties

(2,819,502)

- (2,819,502)

- %

EBITDAre

$

4,952,371

$

3,706,759

$ 1,245,612

33.6%

GAAP Net Operating Income (NOI)

Net Income (Loss)

$

• 744,325 $

(4,573,354)

$ 5,317,679 277,500 (220,671) 484,090

(116.3%)

Less: Gain on disposal of investment property

(2,819,502)

• - (2,819,502)

• - %

  • Pl u s : Loss on extinguishment of debt

    51,837

• - %

• • Pl u s : Loss on redemption of mandatorily redeemable preferred stock

    47,680

    - - 51,837 47,680

• - %

56,325

84,564

(28,239) (33.4%)

Pl u s : Management restructuring expense GAAP Net Operating Income (NOI)

(88,856)

-

2,066,521

(49,274)

(39,582) (2,066,521)

80.3% - %