Medalist Diversified REIT(US:MDRR)2025-11-06 21:19Financial Performance - Total revenues for the three months ended September 30, 2025, were $2,786,241, an increase of $449,316 compared to the same period in 2024 [271]. - Total revenues for the nine months ended September 30, 2025, were $7,573,054, an increase of $363,334 (5.04%) from $7,209,720 in the same period of 2024 [299]. - Retail center property revenues for the three months ended September 30, 2025, were $1,567,428, a slight increase of $1,532 from the same period in 2024 [278]. - Retail center property revenues decreased by $281,485 (5.68%) to $4,673,820 for the nine months ended September 30, 2025, primarily due to the sale of the Hanover Square Shopping Center and increased vacancies [303]. - Flex center property revenues increased to $710,885 for the three months ended September 30, 2025, up $34,131 from $676,754 in 2024, driven by strong leasing activity and low vacancy [284]. - Flex center property revenues increased by $45,812 (2.28%) to $2,053,868 for the nine months ended September 30, 2025, driven by increased occupancy at the Greenbrier Business Center and Parkway properties [307]. - STNL property revenues reached $507,928 for the three months ended September 30, 2025, a significant increase of $413,653 from $94,275 in 2024, primarily due to acquisitions [288]. - STNL property revenues surged by $599,007 (243.43%) to $845,366 for the nine months ended September 30, 2025, due to acquisitions including the Buffalo Wild Wings and United Rentals properties [311]. Operating Income and Expenses - Operating income for the three months ended September 30, 2025, was $441,516, reflecting an increase of $138,244 from $303,272 in 2024, driven by higher net operating income from flex and STNL properties [292]. - Operating income decreased to $68,291 for the nine months ended September 30, 2025, down $3,215,516 from $3,283,807 in 2024, primarily due to a prior gain on the sale of the Hanover Square Property [314]. - Total operating expenses for the three months ended September 30, 2025, were $2,344,725, an increase of $311,072 from $2,033,653 in 2024, mainly due to higher legal and administrative costs [289]. - Total operating expenses for the nine months ended September 30, 2025, were $7,468,322, an increase of $774,744 compared to $6,693,578 for the same period in 2024 [313]. - Total property operating expenses increased to $2,000,179 for the nine months ended September 30, 2025, from $1,709,121 in 2024 [313]. Cash Flow and Liquidity - Cash provided by operating activities increased to $2,271,897 for the nine months ended September 30, 2025, compared to $1,410,969 for the same period in 2024, an increase of $860,928 [249]. - Cash used in investing activities was $15,964,554 for the nine months ended September 30, 2025, a decrease of $18,265,094 compared to cash provided by investing activities in 2024 [255]. - Cash provided by financing activities for the nine months ended September 30, 2025, was $11,422,507, an increase of $13,974,962 compared to the same period in 2024 [259]. - The company expects to meet future liquidity needs through $1,886,677 in unrestricted cash and $1,915,909 held in lender reserves as of September 30, 2025 [266]. - The company believes it is probable to meet obligations arising within one year of the issuance of the condensed consolidated financial statements [246]. Debt and Financing - The company acquired the Tesla Pensacola Property for $14,544,504, funded by a $14,700,000 line of credit from Farmers and Merchants Bank [228]. - The Farmers Line of Credit has an interest rate of 7.25% and is due in full on August 10, 2026 [231]. - Total mortgages payable as of September 30, 2025, amounted to $38,097,886, down from $50,510,762 as of December 31, 2024 [233]. - The company entered into a mortgage loan facility with Wells Fargo Bank for $18,609,500 at a fixed interest rate of 4.50%, with a monthly payment of $103,438 [236]. - The Farmers Line of Credit will not be a continuing source of liquidity, with no further advances available upon repayment [248]. - The company has a covenant to maintain a debt service coverage ratio of not less than 1.30 to 1.00 on an annual basis, compliant as of September 30, 2025 [236]. Net Income and Loss - Net loss for the three months ended September 30, 2025, was $166,738, a decrease of $351,211 from the previous year, with a net loss attributable to common stockholders of $395,948 [296]. - The company reported a decrease in net loss attributable to common stockholders by $131,048 for the three months ended September 30, 2025, compared to the same period in 2024 [298]. - Net loss for the nine months ended September 30, 2025, was $1,587,000, a decrease of $2,503,278 from the net income of $916,278 in 2024 [318][319]. Funds from Operations - Funds from operations (FFO) for the nine months ended September 30, 2025, were $1,305,361, an increase from $1,129,978 in 2024 [323]. - Adjusted funds from operations (AFFO) decreased to $371,182 for the nine months ended September 30, 2025, down from $795,772 in 2024 [328]. - Share-based compensation expenses increased to $397,182 for the nine months ended September 30, 2025, compared to $277,500 in 2024 [328]. Economic Risks - The company faces economic risks including inflation, high interest rates, and potential impacts from tariffs on tenant operations [269].