Medalist Diversified REIT, Inc. Announces Partial Redemption of Its 8% Series A Cumulative Redeemable Preferred Stock, Par Value $0.01 Per Share

Rhea-AI Summary

Medalist Diversified REIT (NASDAQ: MDRR) announced plans to redeem 60,000 shares of its 8.0% Series A Cumulative Redeemable Preferred Stock on January 10, 2025. The redemption will be executed at $25.00 per share, plus approximately $0.44 per share in accrued and unpaid dividends, totaling $25.44 per share. Following this redemption, no Series A Preferred Stock shares will remain outstanding, marking a complete redemption of this series.

Positive

• Full redemption of Series A Preferred Stock indicates strong financial position
• Elimination of 8% dividend obligation reduces future financial commitments

Negative

• Cash outlay of approximately $1.53 million required for redemption

Insights

Financial Analyst

This preferred stock redemption represents a significant financial move for Medalist Diversified REIT. The company is redeeming $1.5 million worth of Series A Preferred Stock (60,000 shares at $25 per share), plus accrued dividends. By redeeming these high-cost preferred shares paying 8% annual dividends, MDRR will reduce its ongoing dividend obligations and improve its capital structure. The total redemption cost of $25.44 per share includes $0.44 in accrued dividends. This move suggests improved financial flexibility and could lead to reduced financing costs, though it requires significant cash outlay. The full redemption of the Series A Preferred Stock eliminates this tier of the capital structure entirely, simplifying the company's equity composition.

RICHMOND, Va.--(BUSINESS WIRE)-- Medalist Diversified REIT, Inc. (NASDAQ: MDRR) (the “Company” or “Medalist”), a Virginia-based real estate investment trust that specializes in acquiring, owning and managing commercial real estate, gave notice of its intent to redeem 60,000 shares (the “Redeemed Shares”) of its outstanding 8.0% Series A Cumulative Redeemable Preferred Stock, par value $0.01 per share (the “Series A Preferred Stock”) on January 10, 2025 (the “Optional Redemption Date”). The Redeemed Shares will be redeemed at a cash redemption price of $25.00 per share, plus any accrued and unpaid dividends up to, but not including, the Optional Redemption Date in an amount equal to approximately $0.44 per share, for a total payment of $25.44 per share. Upon the completion of the redemption of the Redeemed Shares, the Series A Preferred Stock will be fully redeemed and no shares of the Series A Preferred Stock will remain outstanding.

About Medalist Diversified REIT

Medalist Diversified REIT Inc. is a Virginia-based real estate investment trust that specializes in acquiring, owning and managing value-add commercial real estate in the Mid-Atlantic and Southeast regions. The Company’s strategy is to focus on value-add and opportunistic commercial real estate which is expected to provide an attractive balance of risk and returns. The Company seeks to maximize operating performance of current properties by utilizing a hands-on approach to property management while monitoring the middle market real estate markets in the southeast for acquisition opportunities and disposal of properties as considered appropriate. For more information on Medalist, please visit the Company website at www.medalistreit.com.

Forward-Looking Statements

This press release contains statements that are “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995 and other federal securities laws. Forward looking statements are not historical and are typically identified by such words as “believe,” “expect,” “anticipate,” “intend,” “estimate,” “may,” “will,” “should” and “could” and include statements about the redemption of the Series A Preferred Stock. Forward-looking statements are based upon the Company’s present expectations but are not guarantees or assurances as to future developments or results. Factors that may cause actual developments or results to differ from those reflected in forward-looking statements include, without limitation, adverse changes in the pricing of the Company’s assets, disruptions associated with management internalizations, increased costs of, and reduced availability of, capital and those included in the Company’s most recent Annual Report on Form 10-K and in the Company’s other filings with the Securities and Exchange Commission. Investors should not place undue reliance upon forward-looking statements. The Company disclaims any obligation to publicly update or revise any forward-looking statements to reflect changes and new developments except as required by law or regulation.

View source version on businesswire.com: https://www.businesswire.com/news/home/20241210516789/en/

Brent Winn

Medalist Diversified REIT, Inc.

bwinn@medalistreit.com

Source: Medalist Diversified REIT, Inc.

FAQ

When will MDRR redeem its Series A Preferred Stock?

Medalist Diversified REIT (MDRR) will redeem 60,000 shares of its Series A Preferred Stock on January 10, 2025.

What is the redemption price for MDRR's Series A Preferred Stock?

The redemption price is $25.00 per share plus $0.44 in accrued dividends, totaling $25.44 per share.

How many Series A Preferred shares will remain after MDRR's redemption?

No Series A Preferred Stock shares will remain outstanding after the redemption is completed.