UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM
(Mark One)
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 | |
For the quarterly period ended | |
OR | |
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
For the transition period from to
Commission file no:
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(State or other jurisdiction of incorporation) |
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(Address of principal executive offices) (Zip Code)
Registrant’s telephone number, including area code: (
(Former name, former address and former fiscal year, if changed since last report)
Securities registered pursuant to section 12(b) of the Act:
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Indicate by check mark whether the registrant: (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.
Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). ⌧
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.
Large accelerated filer | ◻ | Accelerated filer | ◻ |
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☒ | Smaller reporting company | ||
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| Emerging growth company |
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act ☐
Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes
The number of shares of Common Stock, $0.01 par value per share, of the registrant outstanding at November 13, 2023 was
Medalist Diversified REIT, Inc.
Quarterly Report on Form 10-Q
For the Quarter Ended September 30, 2023
Table of Contents
2
PART I.FINANCIAL INFORMATION
Item 1. Financial Statements
Medalist Diversified REIT, Inc. and Subsidiaries
Condensed Consolidated Balance Sheets
| September 30, 2023 | December 31, 2022 |
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(Unaudited) |
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ASSETS |
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Investment properties, net | $ | | $ | | |||
Cash |
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Restricted cash | | | |||||
Rent and other receivables, net of allowance of $ |
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Unbilled rent |
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Intangible assets, net |
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Other assets |
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Total Assets | $ | | $ | | |||
LIABILITIES |
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Accounts payable and accrued liabilities | $ | | $ | | |||
Intangible liabilities, net |
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Line of credit, short term, net |
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Mortgages payable, net | | | |||||
Mandatorily redeemable preferred stock, net |
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Total Liabilities | $ | | $ | | |||
EQUITY |
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Common stock, | $ | | $ | | |||
Additional paid-in capital |
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Offering costs |
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Accumulated deficit |
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Total Stockholders' Equity |
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Noncontrolling interests - Hanover Square Property |
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Noncontrolling interests - Parkway Property | | | |||||
Noncontrolling interests - Operating Partnership |
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Total Equity | $ | | $ | | |||
Total Liabilities and Equity | $ | | $ | |
See notes to condensed consolidated financial statements
3
Medalist Diversified REIT, Inc. and Subsidiaries
Condensed Consolidated Statements of Operations
(Unaudited)
Three Months Ended | Nine Months Ended | ||||||||||||
September 30, | September 30, | ||||||||||||
| 2023 |
| 2022 |
| 2023 |
| 2022 |
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REVENUE |
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Retail center property revenues | $ | | $ | | $ | | $ | | |||||
Flex center property revenues | | | | | |||||||||
Hotel property room revenues |
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Hotel property other revenues |
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Total Revenue | $ | | $ | | $ | | $ | | |||||
OPERATING EXPENSES |
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Retail center property operating expenses | $ | | $ | | $ | | $ | | |||||
Flex center property operating expenses | | | | | |||||||||
Hotel property operating expenses |
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Bad debt expense | | — | | | |||||||||
Share based compensation expenses |
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Legal, accounting and other professional fees |
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Corporate general and administrative expenses |
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Management restructuring expenses | | — | | — | |||||||||
Loss on impairment |
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Impairment of assets held for sale | — | — | — | | |||||||||
Other expense |
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Depreciation and amortization |
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Total Operating Expenses |
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Loss on disposal of investment property | — | ( | — | ( | |||||||||
Loss on extinguishment of debt | — | ( | — | ( | |||||||||
Operating loss |
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Interest expense |
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Net Loss from Operations |
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Other income |
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Net Loss |
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Less: Net (loss) income attributable to Hanover Square Property noncontrolling interests | ( | | ( | | |||||||||
Less: Net income attributable to Parkway Property noncontrolling interests |
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Less: Net income (loss) attributable to Operating Partnership noncontrolling interests |
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Net Loss Attributable to Medalist Common Shareholders | $ | ( | $ | ( | $ | ( | $ | ( | |||||
Loss per share from operations - basic and diluted | ( | ( | ( | ( | |||||||||
Weighted-average number of shares - basic and diluted |
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Dividends paid per common share | $ | — | $ | | $ | | $ | |
See notes to condensed consolidated financial statements
4
Medalist Diversified REIT, Inc. and Subsidiaries
Condensed Consolidated Statements of Stockholders’ Equity
For the nine months ended September 30, 2023 | |||||||||||||||||||||||||||||
| Common Stock | Noncontrolling Interests | |||||||||||||||||||||||||||
Additional | Offering | Accumulated | Shareholders’ | Hanover Square | Parkway | Operating |
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Shares |
| Par Value |
| Paid in Capital |
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| Costs |
| Deficit |
| Equity |
| Property |
| Property |
| Partnership |
| Total Equity | ||||||||||
Balance, January 1, 2023 | | $ | | $ | | $ | ( | $ | ( | $ | | $ | | $ | | $ | | $ | | ||||||||||
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Retire fractional shares resulting from reverse stock split |
| ( | $ | ( | $ | ( | $ | — | $ | — | $ | ( | $ | — | $ | — | $ | — | $ | ( | |||||||||
Net (loss) income |
| — | — | — | — | ( | ( | ( | | ( | ( | ||||||||||||||||||
Dividends and distributions |
| — | — | — | — | ( | ( | ( | — | ( | ( | ||||||||||||||||||
Balance, September 30, 2023 |
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| $ | |
| $ | |
| $ | ( |
| $ | ( |
| $ | |
| $ | |
| $ | |
| $ | |
| $ | |
For the nine months ended September 30, 2022 | |||||||||||||||||||||||||||||
| Common Stock | Noncontrolling Interests | |||||||||||||||||||||||||||
Additional | Offering | Accumulated | Shareholders’ | Hanover Square | Parkway | Operating | |||||||||||||||||||||||
Shares |
| Par Value |
| Paid in Capital |
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| Costs |
| Deficit |
| Equity |
| Property |
| Property |
| Partnership |
| Total Equity | ||||||||||
Balance, January 1, 2022 | | $ | | $ | | $ | ( | $ | ( | $ | | $ | | $ | | $ | | $ | | ||||||||||
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Common stock issuances | | $ | | $ | | $ | — | $ | — | $ | | $ | — | $ | — | $ | — | $ | | ||||||||||
Common stock repurchases |
| ( | ( | ( | — | — | ( | — | — | — | ( | ||||||||||||||||||
Share based compensation |
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Net (loss) income |
| — | — | — | — | ( | ( | | | ( | ( | ||||||||||||||||||
Dividends and distributions |
| — | — | — | — | ( | ( | ( | ( | ( | ( | ||||||||||||||||||
Balance, September 30, 2022 |
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| $ | |
| $ | |
| $ | ( |
| $ | ( |
| $ | |
| $ | |
| $ | |
| $ | |
| $ | |
5
For the three months ended September 30, 2023 | |||||||||||||||||||||||||||||
| Common Stock | Noncontrolling Interests | |||||||||||||||||||||||||||
Additional | Offering | Accumulated | Shareholders’ | Hanover Square | Parkway | Operating |
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Shares |
| Par Value |
| Paid in Capital |
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| Costs |
| Deficit |
| Equity |
| Property |
| Property |
| Partnership |
| Total Equity | ||||||||||
Balance, July 1, 2023 | | $ | | $ | | $ | ( | $ | ( | $ | | $ | | $ | | $ | | $ | | ||||||||||
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Net (loss) income |
| — | $ | — | $ | — | $ | — | $ | ( | $ | ( | $ | ( | $ | | $ | | $ | ( | |||||||||
Balance, September 30, 2023 |
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| $ | |
| $ | |
| $ | ( |
| $ | ( |
| $ | |
| $ | |
| $ | |
| $ | |
| $ | |
For the three months ended September 30, 2022 | |||||||||||||||||||||||||||||
| Common Stock | Noncontrolling Interests | |||||||||||||||||||||||||||
Additional | Offering | Accumulated | Shareholders’ | Hanover Square | Parkway | Operating |
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Shares |
| Par Value |
| Paid in Capital |
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| Costs |
| Deficit |
| Equity |
| Property |
| Property |
| Partnership |
| Total Equity | ||||||||||
Balance, July 1, 2022 | $ | $ | $ | ( | $ | ( | $ | $ | | $ | $ | $ | |||||||||||||||||
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Net (loss) income |
| — | $ | — | $ | — | $ | — | $ | ( | $ | ( | $ | | $ | |