8-K

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UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 8-K

CURRENT REPORT

PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

Date of Report (Date of earliest event reported): November 13, 2023

Medalist Diversified REIT, Inc.

(Exact Name of Registrant as Specified in Its Charter)

Maryland	001-38719	47-5201540
(State or other jurisdiction of incorporation<br>or organization)	(Commission File Number)	(I.R.S. Employer <br>Identification No.)

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P.O. Box 8436

Richmond , VA , 23226

(Address of principal executive offices)

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( 804 ) 338-7708

(Registrant’s telephone number, including area code)

None

(Former name or former address, if changed since last report)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

☐         Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

☐         Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

☐         Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

☐         Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (17 CFR §230.405) or Rule 12b-2 of the Securities Exchange Act of 1934 (17 CFR §240.12b-2).

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. ☐

Securities registered pursuant to Section 12(b) of the Act:

Title of Each Class	Name of each Exchange on<br>Which Registered	Trading <br>Symbol(s)
Common Stock, $0.01 par value	Nasdaq Capital Market	MDRR
8.0% Series A Cumulative Redeemable Preferred Stock, $0.01 par value	Nasdaq Capital Market	MDRRP<br><br>​

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Item 2.02Results of Operations and Financial Condition

The information set forth in Item 7.01 with respect to the Financial Supplement is incorporated by reference into this Item 2.02.

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Item 7.01Regulation FD Disclosure

On November 13, 2023, Medalist Diversified REIT, Inc., a Maryland corporation (the “Company”) released its financial supplement for the three and nine months ended September 30, 2023 (the “Financial Supplement”). A copy of the Financial Supplement is furnished as Exhibit 99.1 to this Current Report on Form 8-K and is incorporated herein by reference and is also available on the “Investors” section of the Company’s website at www.medalistreit.com. In accordance with General Instruction B.2 of Form 8-K, the information in this Item 7.01 shall not be deemed to be “filed” for purposes of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), and shall not be incorporated by reference into any registration statement or other document filed under the Exchange Act or the Securities Act of 1933, as amended, except as shall be expressly set forth by specific reference in such filing.

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Item 9.01Financial Statements and Exhibits

(d) Exhibits

Exhibit Number	Description of Exhibit
99.1	Financial Supplement, dated November 13, 2023
104	Cover Page Interactive Data File (embedded within the Inline XBRL Document)

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SIGNATURE

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

	MEDALIST DIVERSIFIED REIT, INC.
Dated: November 13, 2023	By:	/s/ C. Brent Winn, Jr.
		C. Brent Winn, Jr.
		Chief Financial Officer

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​ Exhibit 99.1

Financial Supplement

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Table of Contents

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Definitions

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Condensed Consolidated Balance Sheets as of September 30, 2023 and December 31, 2022

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Condensed Consolidated Statements of Operations for the three and nine months ended September 30, 2023 and 2022

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Condensed Consolidated Statements of Cash Flows for the nine months ended September 30, 2023 and 2022

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Funds from Operations (FFO) and Adjusted Funds from Operations (AFFO) for the three and nine months ended September 30, 2023 and 2022

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NOI Reconciliations for the three and nine months ended September 30, 2023 and 2022

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Same Property NOI Reconciliation for the three and nine months ended September 30, 2023 and 2022

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EBITDA Reconciliations for the three and nine months ended September 30, 2023 and 2022

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Same Property Revenues

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Same Property Statistics – Retail and Flex Properties

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Weighted Average Lease Term

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Mortgage Loan Data

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Weighted Average Mortgage Payable Maturity

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Weighted Average Mortgage Payable Interest Rate

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Definitions

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Investors and analysts following the real estate industry utilize certain financial measures as supplemental performance measures, including net operating income ("NOI"), Same Property NOI, earnings before interest, taxes, depreciation and amortization for real estate ("EBITDA"), Funds from operations (“FFO”) and Adjusted FFO (“AFFO”).

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While we believe net income available to common stockholders, as defined by accounting principles generally accepted in the United States of America (“U.S. GAAP”), is the most appropriate measure, we consider NOI, Same Property NOI, EBITDA, and FFO and AFFO, given their wide use by and relevance to investors and analysts, appropriate supplemental performance measures. NOI provides a measure of rental operations, and does not include depreciation and amortization, interest expense and non-property specific expenses such as corporate-wide interest expense and general and administrative expenses. As used herein, we calculate the following non-U.S. GAAP measures as follows:

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• NOI from property operations is calculated as net loss, as defined by U.S. GAAP, plus preferred dividends, legal, accounting and other professional fees, corporate general and administrative expenses, depreciation, amortization of intangible assets and liabilities, net amortization of above and below market leases, interest expense, including amortization of financing costs, share based compensation expense, loss on impairment, impairment of assets held for sale, loss (gain) on disposition of investment properties, loss on extinguishment of debt, other income and other expenses. The components of NOI consist of recurring rental and reimbursement revenue, less real estate taxes and operating expenses, such as insurance, utilities, and repairs and maintenance. NOI presented in this financial supplement includes an adjustment to the Company’s net loss for amortization of above and below market leases and, as a result, varies from NOI presented in the Company’s Quarterly Report on Form 10-Q for the three and nine months ended September 30, 2023 and 2022.

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• Same Property NOI is calculated as the NOI of all properties owned during the entire periods presented with the exclusion of any properties acquired or sold during the periods presented.

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• EBITDA is net income, as defined by U.S. GAAP, plus preferred dividends, interest expense, including amortization of financing costs, depreciation and amortization, net amortization of acquired above and below market lease revenue, loss on impairment, impairment of assets held for sale, loss (gain) on disposition of investment properties, and loss on extinguishment of debt.

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NOI, Same Property NOI, Same Property Revenues, and EBITDA, do not represent cash generated from operating activities in accordance with U.S. GAAP and are not necessarily indicative of cash available to fund cash needs, including the repayment of principal on debt, capital expenditures and payment of dividends and distributions. NOI, Same Property NOI, and EBITDA should not be considered as substitutes for net income applicable to common stockholders (calculated in accordance with U.S. GAAP) as a measure of results of operations or cash flows (calculated in accordance with U.S. GAAP) as a measure of liquidity. NOI, Same Property NOI, and Adjusted EBITDA, as currently calculated by us, may not be comparable to similarly titled, but variously calculated, measures of other REITs.

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FFO and AFFO, non-GAAP measures, are an alternative measure of operating performance, specifically as it relates to results of operations and liquidity. FFO is computed in accordance with standards established by the Board of Governors of the National Association of Real Estate Investment Trusts (“NAREIT”) in its March 1995 White Paper (as amended in November 1999, April 2002 and December 2018). As defined by NAREIT, FFO represents net income (computed in accordance with GAAP), excluding gains (or losses) from sales of property and losses on extinguishment of debt, plus real estate related depreciation and amortization (excluding amortization of loan origination costs and above and below market leases). In addition to FFO, AFFO, excludes non-cash items such as amortization of loans and above and below market leases, unbilled rent arising from applying straight line rent revenue recognition and share-based compensation expenses. Additionally, the impact of capital expenditures, including tenant improvement and leasing commissions, net of reimbursements of such expenditures by property escrow funds, is included in the calculation of AFFO. ​

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Medalist Diversified REIT, Inc. and Subsidiaries

Condensed Consolidated Balance Sheets

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​	​	​	​	​	​	​	​
​	****	​	September 30, 2023	​	​	December 31, 2022	****
​	​	(Unaudited)		****	​		​
ASSETS		​			​		​
Investment properties, net	​	$	74,875,809	​	$	76,514,952	​
Cash	​		3,015,859	​		3,922,136	​
Restricted cash	​	​	1,734,297	​	​	1,740,717	​
Rent and other receivables, net of allowance of $0 and $47,109, as of September 30, 2023 and December 31, 2022, respectively	​		94,782	​		402,434	​
Unbilled rent	​		1,097,570	​		1,022,153	​
Intangible assets, net	​		2,956,080	​		3,748,706	​
Other assets	​		647,268	​		564,306	​
Total Assets	​	$	84,421,665	​	$	87,915,404	​
​	​	​	​	​	​	​	​
LIABILITIES	​		​	​		​	​
Accounts payable and accrued liabilities	​	$	1,956,415	​	$	1,198,072	​
Intangible liabilities, net	​		1,946,772	​		2,234,113	​
Line of credit, short term, net	​		1,000,000	​		—	​
Mortgages payable, net	​	​	60,616,944	​	​	61,340,259	​
Mandatorily redeemable preferred stock, net	​		4,630,824	​		4,450,521	​
Total Liabilities	​	$	70,150,955	​	$	69,222,965	​
​	​	​	​	​	​	​	​
EQUITY	​			​			​
Common stock, 2,218,810 and 2,219,803 shares issued and outstanding at September 30, 2023 and December 31, 2022, respectively	​	$	22,188	​	$	22,198	​
Additional paid-in capital	​		51,514,209	​		51,519,198	​
Offering costs	​		(3,350,946)	​		(3,350,946)	​
Accumulated deficit	​		(35,341,200)	​		(30,939,020)	​
Total Stockholders' Equity	​		12,844,251	​		17,251,430	​
Noncontrolling interests - Hanover Square Property	​		109,944	​		127,426	​
Noncontrolling interests - Parkway Property	​	​	480,766	​	​	470,685	​
Noncontrolling interests - Operating Partnership	​		835,749	​		842,898	​
Total Equity	​	$	14,270,710	​	$	18,692,439	​
Total Liabilities and Equity	​	$	84,421,665	​	$	87,915,404	​

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See notes to condensed consolidated financial statements

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Medalist Diversified REIT, Inc. and Subsidiaries

Condensed Consolidated Statements of Operations

(Unaudited)

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​	​	​	​	​	​	​	​	​	​	​	​	​	​
​	​	Three Months Ended					​	Nine Months Ended					​
​	​	September 30,					​	September 30,					​
​	****	2023		****	2022		****	2023		****	2022		****
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REVENUE		​			​			​			​		​
Retail center property revenues	​	$	1,930,494	​	$	1,850,797	​	$	5,725,942	​	$	4,999,089	​
Flex center property revenues	​	​	658,246	​	​	610,967	​	​	1,839,675	​	​	1,834,200	​
Hotel property room revenues	​		—	​		376,560	​		—	​		1,494,836	​
Hotel property other revenues	​		—	​		2,749	​		—	​		12,813	​
Total Revenue	​	$	2,588,740	​	$	2,841,073	​	$	7,565,617	​	$	8,340,938	​
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OPERATING EXPENSES	​			​			​		​	​	​	​	​
Retail center property operating expenses	​	$	466,828	​	$	491,889	​	$	1,512,776	​	$	1,384,061	​
Flex center property operating expenses	​	​	180,164	​	​	189,720	​	​	535,065	​	​	511,771	​
Hotel property operating expenses	​		—	​		589,311	​		—	​		1,302,114	​
Bad debt expense	​	​	5,669	​	​	—	​	​	49,868	​	​	12,946	​
Share based compensation expenses	​		—	​		—	​		—	​		233,100	​
Legal, accounting and other professional fees	​		237,562	​		284,463	​		1,228,262	​		1,112,878	​
Corporate general and administrative expenses	​		162,649	​		99,323	​		364,868	​		335,538	​
Management restructuring expenses	​	​	1,452,904	​	​	—	​	​	1,846,329	​	​	—	​
Loss on impairment	​		—	​		—	​		50,859	​		36,670	​
Impairment of assets held for sale	​	​	—	​	​	—	​	​	—	​	​	175,671	​
Other expense	​		—	​		227,164	​		—	​		227,164	​
Depreciation and amortization	​		1,149,664	​	​	1,231,513	​		3,459,262	​	​	3,509,165	​
Total Operating Expenses	​	****	3,655,440	​	****	3,113,383	​	****	9,047,289	​	****	8,841,078	​
Loss on disposal of investment property	​	​	—	​	​	(389,471)	​	​	—	​	​	(389,471)	​
Loss on extinguishment of debt	​	​	—	​	​	(219,532)	​	​	—	​	​	(389,207)	​
Operating loss	​	****	(1,066,700)	​	****	(881,313)	​	****	(1,481,672)	​	****	(1,278,818)	​
Interest expense	​		900,182	​		989,255	​		2,612,642	​		2,704,835	​
Net Loss from Operations	​	****	(1,966,882)	​	****	(1,870,568)	​	****	(4,094,314)	​	****	(3,983,653)	​
Other income	​		20,522	​		126,434	​		52,249	​		251,197	​
Net Loss	​	****	(1,946,360)	​	****	(1,744,134)	​	****	(4,042,065)	​	****	(3,732,456)	​
Less: Net (loss) income attributable to Hanover Square Property noncontrolling interests	​	​	(225)	​	​	8,468	​	​	(1,482)	​	​	15,421	​
Less: Net income attributable to Parkway Property noncontrolling interests	​		2,199	​		16,782	​		10,081	​		31,027	​
Less: Net income (loss) attributable to Operating Partnership noncontrolling interests	​		493	​		(14,926)	​		(2,878)	​		(20,275)	​
Net Loss Attributable to Medalist Common Shareholders	​	$	(1,948,827)	​	$	(1,754,458)	​	$	(4,047,786)	​	$	(3,758,629)	​
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Loss per share from operations - basic and diluted	​	$	(0.88)	​	$	(0.80)	​	$	(1.82)	​	$	(1.77)	​
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Weighted-average number of shares - basic and diluted	​		2,218,810	​		2,179,993	​		2,219,262	​		2,121,540	​
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Dividends paid per common share	​	$	—	​	$	0.16	​	$	0.16	​	$	0.48	​

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See notes to condensed consolidated financial statements

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Medalist Diversified REIT, Inc. and Subsidiaries

Condensed Consolidated Statements of Cash Flows

(Unaudited**)**

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​	​	​	​	​	​	​
​	​	Nine months ended September 30,
​	****	2023		****	2022
CASH FLOWS FROM OPERATING ACTIVITIES	​	​	​	​	​	​
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Net Loss	​	$	(4,042,065)	​	$	(3,732,456)
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Adjustments to reconcile consolidated net loss to net cash flows from operating activities	​		​	​		​
Depreciation	​		2,768,969	​		2,471,365
Amortization	​		690,293	​		1,037,800
Loan cost amortization	​		80,967	​		80,607
Mandatorily redeemable preferred stock issuance cost and discount amortization	​	​	180,303	​		165,338
Above (below) market lease amortization, net	​		(211,904)	​		(146,068)
Bad debt expense	​	​	49,868	​		12,946
Share-based compensation	​	​	—	​		233,100
Impairment of assets held for sale	​		—	​		175,671
Loss on impairment	​	​	50,859	​		36,670
Loss on extinguishment of debt	​	​	—	​		389,207
Loss on disposal of investment property	​		—	​		389,471
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Changes in assets and liabilities	​		​	​	​	​
Rent and other receivables, net	​		257,784	​		211,376
Unbilled rent	​		(84,852)	​		(112,767)
Other assets	​		(82,962)	​		(147,130)
Accounts payable and accrued liabilities	​		758,343	​		608,351
Net cash flows from operating activities	​		415,603	​		1,673,481
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CASH FLOWS FROM INVESTING ACTIVITIES	​		​	​		​
​	​	​	​	​	​	​
Investment property acquisitions	​		—	​		(10,279,714)
Capital expenditures	​	​	(1,144,354)	​	​	(651,653)
Cash received from disposal of investment properties	​		—	​		2,011,462
Net cash flows from investing activities	​		(1,144,354)	​		(8,919,905)
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CASH FLOWS FROM FINANCING ACTIVITIES	​			​
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Dividends and distributions paid	​		(374,665)	​		(1,116,660)
Cash paid for lender fees associated with Clemson Best Western sale	​	​	—	​		(84,900)
Proceeds from line of credit, short term	​	​	1,000,000	​		—
Proceeds from mortgages payable, net	​	​	—	​		18,477,304
Repayment of mortgages payable	​	​	(804,282)	​		(11,692,557)
Proceeds from sales of common stock, net of capitalized offering costs	​	​	—	​		1,538,887
Repurchases of common stock, including costs and fees	​		—	​		(286,543)
Retire fractional shares resulting from reverse stock split	​	​	(4,999)	​		—
Net cash flows from financing activities	​		(183,946)	​		6,835,531
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DECREASE IN CASH, CASH EQUIVALENTS AND RESTRICTED CASH	​		(912,697)	​		(410,893)
CASH, CASH EQUIVALENTS AND RESTRICTED CASH, beginning of period	​		5,662,853	​		7,383,977
CASH, CASH EQUIVALENTS AND RESTRICTED CASH, end of period	​	$	4,750,156	​	$	6,973,084
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CASH AND CASH EQUIVALENTS, end of period, shown in condensed consolidated balance sheets	​	​	3,015,859	​	​	4,863,963
RESTRICTED CASH including assets restricted for capital and operating reserves and tenant deposits, end of period, shown in condensed consolidated balance sheets	​	​	1,734,297	​	​	2,109,121
CASH, CASH EQUIVALENTS AND RESTRICTED CASH, end of period shown in the condensed consolidated statements of cash flows	​	$	4,750,156	​	$	6,973,084
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Supplemental Disclosures and Non-Cash Activities:	​		​	​		​
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Other cash transactions:	​			​
Interest paid	​	$	2,148,248	​	$	2,508,654
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Non-cash transactions:	​		​	​
Release of restricted cash related to sale of Clemson Best Western Property	​	$	—	​	$	1,455,777
Capital expenditures accrued	​	$	—	​	$	269,246

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See notes to condensed consolidated financial statements ​

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Medalist Diversified REIT

Funds from Operations and Adjusted Funds from Operations

For the three and nine months ended September 30, 2023 and 2022

(Unaudited)

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​	​	​	​	​	​	​	​	​	​	​	​	​
​	​	Three Months Ended					​	Nine Months Ended
​	****	September 30,					****	September 30,
​	​	2023		​	2022		​	2023		​	2022
Funds from operations	​	​	​	​	​	​	​	​	​	​	​	​
Net loss		$	(1,946,360)	​	$	(1,744,134)	​	$	(4,042,065)	​	$	(3,732,456)
Depreciation of tangible real property assets	​		680,938	​		671,167	​		2,036,048	​		1,890,428
Depreciation of tenant improvements	​		211,706	​		209,112	​		624,762	​		509,558
Amortization of leasing commissions	​		40,733	​		26,942	​		108,159	​		71,379
Amortization of intangible assets	​		216,287	​		324,292	​		690,293	​		1,037,800
Loss on disposal of investment property	​	​	—	​	​	389,471	​	​	—	​	​	389,471
Loss on impairment	​		-	​		—	​		50,859	​		36,670
Impairment of assets held for sale	​		—	​		—	​		—	​		175,671
Loss on extinguishment of debt	​	​	—	​	​	219,532	​	​	—	​	​	389,207
Funds from operations	​	$	(796,696)	​	$	96,382	​	$	(531,944)	​	$	767,728

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​	​	​	​	​	​	​	​	​	​	​	​	​
​	​	Three Months Ended					​	Nine Months Ended
​	****	September 30,					****	September 30,
​	​	2023		​	2022		​	2023		​	2022
Adjusted funds from operations	​	​	​	​	​	​	​	​	​	​	​	​
Funds from operations		$	(796,696)	​	$	96,382	​	$	(531,944)	​	$	767,728
Amortization of above market leases	​		23,717	​		33,862	​		75,437	​		159,388
Amortization of below market leases	​		(88,586)	​		(115,679)	​		(287,341)	​		(305,456)
Straight line rent	​		(10,393)	​		(54,392)	​		(84,852)	​		(112,842)
Capital expenditures	​	​	(313,395)	​	​	(158,949)	​	​	(1,144,354)	​		(651,653)
Increase in fair value of interest rate cap	​	​	(12,337)	​	​	(126,127)	​	​	(24,674)	​		(246,063)
Amortization of loan issuance costs	​	​	26,989	​	​	26,990	​	​	80,967	​		80,607
Amortization of preferred stock discount and offering costs	​	​	61,408	​	​	56,311	​	​	180,303	​		165,338
Share-based compensation	​		—	​		—	​		—	​		233,100
Bad debt expense	​		5,669	​		—	​		49,868	​		12,946
Adjusted Funds from operations (AFFO)	​	$	(1,103,624)	​	$	(241,602)	​	$	(1,686,590)	​	$	103,093

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NOI Reconciliation

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​	​	​	​	​	​	​	​	​	​	​	​	​
​	​	Three Months Ended					​	Nine Months Ended
​	****	September 30,					****	September 30,
​	​	2023		​	2022		​	2023		​	2022
​	​	(Unaudited)		​	(Unaudited)		​	(Unaudited)		​	(Unaudited)
Net Operating Income	​	​	​	​	​	​	​	​	​	​	​	​
Net Loss		$	(1,946,360)	​	$	(1,744,134)	​	$	(4,042,065)	​	$	(3,732,456)
Plus: Preferred dividends, including amortization of capitalized issuance costs	​		161,408	​		156,311	​		480,303	​		465,338
Plus: Legal, accounting and other professional fees	​		237,562	​		284,463	​		1,228,262	​		1,112,878
Plus: Corporate general and administrative expenses	​	​	162,649	​	​	99,323	​	​	364,868	​		335,538
Plus: Depreciation expense	​	​	933,377	​	​	907,221	​	​	2,768,969	​		2,471,365
Plus: Amortization of intangible assets	​	​	216,287	​	​	324,292	​	​	690,293	​		1,037,800
Less: Net amortization of above and below market leases	​	​	(64,869)	​	​	(81,817)	​	​	(211,904)	​		(146,068)
Plus: Interest expense, including amortization of capitalized loan issuance costs	​	​	738,774	​	​	832,944	​	​	2,132,339	​		2,239,497
Plus: Share based compensation expense	​	​	—	​	​	—	​	​	—	​		233,100
Plus: Loss on impairment	​		—	​		—	​		50,859	​		36,670
Plus: Impairment of assets held for sale	​	​	—	​	​	—	​	​	—	​		175,671
Plus: Loss on extinguishment of debt	​	​	—	​	​	219,532	​	​	—	​		389,207
Less: Other loss	​	​	(20,522)	​	​	(126,434)	​	​	(52,249)	​		(251,197)
Plus: Other expense	​	​	—	​	​	227,164	​	​	—	​		227,164
Plus: Management restructuring expense	​	​	1,452,904	​	​	—	​	​	1,846,329	​		—
Plus: Loss on disposal of investment property	​	​	—	​	​	389,471	​	​	—	​		389,471
Net Operating Income - NOI	​	$	1,871,210	​	$	1,488,336	​	$	5,256,004	​	$	4,983,978

​

​

​	​	​	​	​	​	​	​	​	​	​	​	​
​	​	Three Months Ended					​	Nine Months Ended
​	****	September 30,					****	September 30,
​	​	2023		​	2022		​	2023		​	2022
​	​	(Unaudited)		​	(Unaudited)		​	(Unaudited)		​	(Unaudited)
Components of Net Operating Income	​	​	​	​	​	​	​	​	​	​	​	​
Revenues:		​	​	​	​	​	​	​	​	​	​	​
Retail and flex property rental revenues (1)	​	$	2,092,289	​	$	2,036,487	​	$	6,146,567	​	$	5,658,183
Retail and flex property tenant reimbursement revenues	​		431,582	​		343,460	​		1,207,146	​		1,029,038
Hotel property revenues	​	​	—	​	​	379,309	​	​	—	​	​	1,507,649
Total revenues	​	​	2,523,871	​	​	2,759,256	​	​	7,353,713	​	​	8,194,870
​	​	​	​	​	​	​	​	​	​	​	​	​
Operating expenses:	​	​	​	​	​	​	​	​	​	​	​	​
Retail and flex property operating expenses	​	​	646,992	​	​	681,609	​	​	2,047,841	​	​	1,895,832
Hotel property operating expenses	​		—	​	​	589,311	​	​	—	​	​	1,302,114
Bad debt expense	​	​	5,669	​	​	-	​	​	49,868	​	​	12,946
Total operating expenses	​	​	652,661	​	​	1,270,920	​	​	2,097,709	​	​	3,210,892
​	​	​	​	​	​	​	​	​	​	​	​	​
Net Operating Income - NOI	​	$	1,871,210	​	$	1,488,336	​	$	5,256,004	​	$	4,983,978

​

(1)	Excludes amortization of above and below market leases.

​

​ ​

​

​

​

Same Property NOI Reconciliation

​

​	​	​	​	​	​	​	​	​	​	​	​	​
​	​	Three Months Ended					​	Nine Months Ended
​	****	September 30,					****	September 30,
​	​	2023		​	2022		​	2023		​	2022
​	​	(Unaudited)		​	(Unaudited)		​	(Unaudited)		​	(Unaudited)
All Properties	​	​	​	​	​	​	​	​	​	​	​	​
Same property NOI		$	1,696,031	​	$	1,527,325	​	$	4,791,334	​	$	4,573,186
NOI of acquired properties (1)	​		175,179	​		171,013	​		464,670	​		205,257
NOI of disposed properties (2)	​	​	—	​	​	(210,002)	​	​	—	​	​	205,535
Total NOI (3)	​	$	1,871,210	​	$	1,488,336	​	$	5,256,004	​	$	4,983,978

​

(1)	Salisbury Marketplace
(2)	Clemson Hotel
---	---
(3)	Excludes net amortization of above and below market leases.
---	---

​

​	​	​	​	​	​	​	​	​	​	​	​	​
​	​	Three Months Ended					​	Nine Months Ended
​	****	September 30,					****	September 30,
​	​	2023		​	2022		​	2023		​	2022
​	​	(Unaudited)		​	(Unaudited)		​	(Unaudited)		​	(Unaudited)
Retail Properties	​	​	​	​	​	​	​	​	​	​	​	​
Same retail property NOI		$	1,232,324	​	$	1,129,797	​	$	3,554,564	​	$	3,326,388
NOI of acquired retail properties (1)	​		175,179	​		171,013	​		464,670	​		205,257
Total retail property NOI (2)	​	$	1,407,503	​	$	1,300,810	​	$	4,019,234	​	$	3,531,645

​

(1)	Salisbury Marketplace
(2)	Excludes net amortization of above and below market leases.
---	---

​

​	​	​	​	​	​	​	​	​	​	​	​	​
​	​	Three Months Ended					​	Nine Months Ended
​	****	September 30,					****	September 30,
​	​	2023		​	2022		​	2023		​	2022
​	​	(Unaudited)		​	(Unaudited)		​	(Unaudited)		​	(Unaudited)
Flex Properties	​	​	​	​	​	​	​	​	​	​	​	​
Same flex property NOI		$	463,707	​	$	397,528	​	$	1,236,770	​	$	1,246,798
Total flex property NOI (1)	​	$	463,707	​	$	397,528	​	$	1,236,770	​	$	1,246,798

​

(1)	Excludes net amortization of above and below market leases.

​

​	​	​	​	​	​	​	​	​	​	​	​	​
​	​	Three Months Ended					​	Nine Months Ended
​	****	September 30,					****	September 30,
​	​	2023		​	2022		​	2023		​	2022
​	​	(Unaudited)		​	(Unaudited)		​	(Unaudited)		​	(Unaudited)
Hotel Properties	​	​	​	​	​	​	​	​	​	​	​	​
NOI of disposed hotel properties (1)	​	$	—	​	$	(210,002)	​	$	—	​	$	205,535
Total hotel property NOI	​	$	—	​	$	(210,002)	​	$	—	​	$	205,535

​

(1)	Clemson Hotel

​

​

​

​

​ ​

​

​

​

EBITDA Reconciliation

​

​	​	​	​	​	​	​	​	​	​	​	​	​
​	​	Three Months Ended					​	Nine Months Ended
​	****	September 30,					****	September 30,
​	​	2023		​	2022		​	2023		​	2022
​	​	(Unaudited)		​	(Unaudited)		​	(Unaudited)		​	(Unaudited)
EBITDA	​	​	​	​	​	​	​	​	​	​	​	​
Net Loss		$	(1,946,360)	​	$	(1,744,134)	​	$	(4,042,065)	​	$	(3,732,456)
Plus: Preferred dividends, including amortization of capitalized issuance costs	​		161,408	​		156,311	​		480,303	​		465,338
Plus: Interest expense, including amortization of capitalized loan issuance costs	​		738,774	​		832,944	​		2,132,339	​		2,239,497
Plus: Depreciation expense	​		933,377	​		907,221	​		2,768,969	​		2,471,365
Plus: Amortization of intangible assets	​	​	216,287	​		324,292	​	​	690,293	​		1,037,800
Less: Net amortization of above and below market leases	​	​	(64,869)	​		(81,817)	​	​	(211,904)	​		(146,068)
Plus: Realized loss on disposal of investment properties	​	​	—	​		389,471	​	​	—	​		389,471
Plus: Loss on impairment	​	​	—	​		—	​	​	50,859	​		36,670
Plus: Impairment of assets held for sale	​	​	—	​		—	​	​	—	​		175,671
Plus: Loss on extinguishment of debt	​	​	—	​		219,532	​	​	—	​		389,207
EBITDA	​	$	38,617	​	$	1,003,820	​	$	1,868,794	​	$	3,326,495

​

Same Property Revenues

​

​	​	​	​	​	​	​	​	​	​	​	​
​	​	Nine Months Ended					​	​
​	****	September 30,					****	​
​	​	2023		​	2022		​	​	​	​
​	​	(Unaudited)		​	(Unaudited)		​	Change ()	​	Change (%)
All Properties	​	​	​	​	​	​	​	​	​	​	​
Same property revenues		$	6,835,063	​	$	6,543,398	​		​	​	4.5%
Revenues of acquired properties (1)	​		730,554	​		289,891	​		​		​
Revenues of disposed properties (2)	​	​	—	​	​	1,507,649	​	​	​	​	​
Total revenues (3)	​	$	7,565,617	​	$	8,340,938	​		​	​	(9.3)%

All values are in US Dollars.

​

(1)	Salisbury Marketplace
(2)	Clemson Hotel
---	---
(3)	Includes net amortization of above and below market leases.
---	---

​

​	​	​	​	​	​	​	​	​	​	​	​
​	​	Nine Months Ended					​	​
​	****	September 30,					****	​
​	​	2023		​	2022		​	​	​	​
​	​	(Unaudited)		​	(Unaudited)		​	Change ()	​	Change (%)
Retail Properties	​	​	​	​	​	​	​	​	​	​	​
Same retail property revenues		$	4,995,388	​	$	4,709,198	​		​	​	6.1%
Revenues of acquired retail properties (1)	​		730,554	​		289,891	​		​		​
Total retail property revenues (2)	​	$	5,725,942	​	$	4,999,089	​		​	​	14.5%

All values are in US Dollars.

​

(1)	Salisbury Marketplace
(2)	Includes net amortization of above and below market leases.
---	---

​

​	​	​	​	​	​	​	​	​	​	​	​
​	​	Nine Months Ended					​	​
​	****	September 30,					****	​
​	​	2023		​	2022		​	​	​	​
​	​	(Unaudited)		​	(Unaudited)		​	Change ()	​	Change (%)
Flex Properties	​	​	​	​	​	​	​	​	​	​	​
Same flex property revenues		$	1,839,675	​	$	1,834,200	​		​	​	0.3%
Total flex property revenues (1)	​	$	1,839,675	​	$	1,834,200	​		​	​	0.3%

All values are in US Dollars.

​

(1)	Includes net amortization of above and below market leases.

​

​

​

​

​

​	​	​	​	​	​	​	​	​	​	​	​
​	​	Nine Months Ended					​	​
​	****	September 30,					****	​
​	​	2023		​	2022		​	​	​	​
​	​	(Unaudited)		​	(Unaudited)		​	Change ()	​	Change (%)
Hotel Property	​	​	​	​	​	​	​	​	​	​	​
Revenues of disposed hotel properties (1)	​	$	—	​	$	1,507,649	​		​	$	(100.0)%
Total hotel property revenues	​	$	—	​	$	1,507,649	​		​	​	(100.0)%

All values are in US Dollars.

​

(1)	Clemson Hotel

​

​

​

​

Property Statistics – Retail and Flex Properties

​

Total Retail and Flex Properties

​

​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​
​	****	Number of Properties					****	Total Square Feet					****	Percent Leased
​	​	As of September 30,					​	As of September 30,					​	As of September 30,
​	​	2023		​	2022		​	2023		​	2022		​	2023		​	2022
Retail		​	5	​	​	5	​	​	633,013	​	​	633,013	​	​	96.9%	​	​	94.8%
Flex	​	​	3	​	​	3	​	​	218,269	​	​	218,269	​	​	99.2%	​	​	94.6%
Total	​	​	8	​	​	8	​	​	851,282	​	​	851,282	​	​	97.5%	​	​	96.5%

​

​

​

​

​ ​

​

​

​

Weighted Average Lease Term

​

​	​	​	​
Retail Properties	****	​	​
Ashley Plaza	​	​	6.33
Franklin Square	​	​	3.97
Hanover Square		​	4.03
Lancer Center	​	​	5.12
Salisbury Marketplace	​	​	6.05
Retail Property Average	​	​	5.18
​	​	​	​
Flex Properties	​	​	​
Brookfield	​	​	3.06
Greenbrier Business Center	​	​	2.25
Parkway	​	​	2.30
Flex Property Average	​	​	2.50
​	​	​	​
Retail and Flex Property Average	​	​	4.50

​

​

​

​

​

Mortgage Loan Data

​

​	​	​	​
Weighted Average Mortgage Maturity (Years)	****	​	5.73
​	​	​	​
Weighted Average Mortgage Payable Interest Rate	​	​	4.5%

​ ​