Medalist Diversified, Inc 8-K, filed Mar 16, 2022
Medalist Diversified, Inc. (MDRR)
About this 8-K
Medalist Diversified, Inc filed this 8-K on March 16, 2022, reporting on events of March 15, 2022.
Items reported
- Item 2.02: Financial results
- Item 9.01: Financial statements and exhibits
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| ITEM 2.02 | RESULTS OF OPERATIONS AND FINANCIAL CONDITION. |
On March 15, 2022, Medalist Diversified REIT, Inc., a Maryland corporation (the “Company”) issued a press release announcing its financial results for the fiscal year ended December 31, 2021 (the “Press Release”) and a financial supplement including reconciliations to certain non-GAAP financial measures (the “Financial Supplement”). Copies of the Press Release and the Financial Supplement are furnished as Exhibit 99.1 and Exhibit 99.2, respectively, to this Current Report on Form 8-K and are hereby incorporated by reference herein. In accordance with General Instruction B.2 of Form 8-K, the information in this Item 2.02 shall not be deemed to be “filed” for purposes of the Securities Exchange Act of 1934, as amended, or 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.
| ITEM 9.01 | FINANCIAL STATEMENTS AND EXHIBITS. |
(d) Exhibits
| Exhibit No. | Description | |
| 99.1 | Press Release, dated March 15, 2022 | |
| 99.2 | Financial Supplement to Press Release, dated March 15, 2022 | |
| 104 | Cover Page Interactive Data File (embedded within the Inline XBRL Document) |
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: March 15, 2022 | By: | /s/ Thomas E. Messier |
| Thomas E. Messier | ||
| Chief Executive Officer, Chairman of the Board, Treasurer and Secretary | ||
Exhibit 99.1
MEDALIST DIVERSIFIED REIT, INC. REPORTS FOURTH QUARTER AND FULL YEAR 2021 RESULTS
RICHMOND, VA, March 15, 2022. Medalist Diversified REIT, Inc. (NASDAQ:MDRR), a Virginia-based real estate investment trust that specializes in acquiring, owning and managing commercial real estate in the Southeast region of the U.S., today reported financial results for the year ended December 31, 2021 and provided an update on its corporate activities. In addition, the Company released supplemental financial information about its fourth quarter financial results.
Key Highlights:
Year ended December 31, 2021
| · | Total revenues were $11.48 million, representing a 24% increase over revenues for 2020. |
| o | Same property revenues increased 11% year over year. |
| · | Net operating income increased 57% to $6.44 million, up from $4.09 million for 2020. |
| o | Same property NOI increased 31% year over year |
| · | Net loss attributable to common shareholders was $4.36 million, or $(0.33) per basic and diluted share, compared to a net loss attributable to common shareholders of $8.18 million, or $(1.74) per basic and diluted common share, for 2020, representing an improvement of $1.41 per basic and diluted common share. |
| · | EBITDA increased 378% to $4.54 million, up from $(1.63) million for the prior year. |
| · | Adjusted funds from operations (AFFO) was $332,514, up from ($982,764) in the prior year. |
| · | 77% year-over-year increase in the square footage of retail and flex properties, ending the year with seven properties encompassing 764,940 square feet, compared to 432,915 square feet as of the end of 2020. |
| · | Average occupancy rate for the Company’s seven retail and flex properties increased to 95.2% as of December 31, 2021, compared to 92.8% for the Company’s four retail and flex properties owned as of December 31, 2020. |
| · | 100% average occupancy rate for the Company’s 148-room hotel property for 2021, compared to 47.2% for 2020. |
Three months ended December 31, 2021 (unaudited)
| · | Total revenues were $2.78 million for fourth quarter 2021, representing a 16% increase over revenues for fourth quarter 2020. |
| · | EBITDA was $1.5 million, a $4.06 million increase over the fourth quarter 2020 EBITDA of ($2,544,507). |
| · | Net operating income was $1.8 million, a 58% increase over fourth quarter 2020 NOI of $1,133,817. |
“Our 2021 results demonstrate the underlying strength of the Company’s portfolio,” stated Thomas E. Messier, Chairman and Chief Executive Officer of the Company. “We are extremely pleased with the dramatic increase of our funds from operations as that is a key metric in measuring the performance of a REIT. Our strategy to further improve the position of our portfolio in 2021, by selling the Hampton Inn property, which closed in August 2021, and acquiring new cash-flowing properties with funds from our April 2021 common stock offering, is showing a positive impact on our financial results. Our 2022 strategy is to continue to grow by investing in properties that complement our current portfolio.”
Brent Winn, Chief Financial Offer of the Company, stated, “Our fourth quarter performance demonstrates our portfolio’s full recovery from COVID-19, with increased occupancy rates and strong leasing activity contributing to significantly improved financial results. Operating income for the quarter was $216,616, a significant improvement over the operating loss for the fourth quarter of 2020 of $3,634,076. Net operating income was $1,793,408 in the fourth quarter of 2021, an increase of 58% over the fourth quarter of 2020. Funds from operations (FFO) was $613,240 for the fourth quarter of 2021, up from ($148,972) in the fourth quarter of 2020. Adjusted funds from operations (AFFO) for the fourth quarter of 2021 was $419,619, an increase of $554,652 over the fourth quarter of 2020.”
The Company closed on three acquisitions in 2021. In May, the Company closed on the purchase of the Lancer Center Property, a 178,626 square foot retail property located in Lancaster, South Carolina. In August, the Company completed its acquisition of the Greenbrier Business Center Property, an 89,290 square foot mixed-use industrial/office property in Chesapeake, Virginia. On November 1, the Company closed on its acquisition of the Parkway Property, a 64,109 square foot flex-industrial property in Virginia Beach, Virginia. In addition, in August the Company sold its Hampton Inn Property, located in Greensboro, North Carolina.
As of December 31, 2021, the Company’s retail and flex property portfolio consisted of seven properties with 769,940 square feet with an average occupancy rate of 95.2% across the seven properties. As of December 31, 2021, the Company’s hotel portfolio consisted of one property with 148 rooms. The average occupancy of this hotel was 100% for the year ended December 31, 2021, due to the Company’s lease of the entire hotel to Clemson University.
About Medalist Diversified REIT
Medalist Diversified REIT Inc. is a Virginia-based real estate investment trust that specializes in acquiring, owning and managing commercial real estate in the Southeast region of the U.S. The Company’s strategy is to focus on commercial real estate which is expected to provide an attractive balance of risk and returns. Medalist utilizes a rigorous, consistent and replicable process for sourcing and conducting due diligence of acquisitions.
For more information on Medalist, including additional supplemental financial information, please visit the Company website at https://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 statements that are not historical, including statements regarding management’s intentions, beliefs, expectations, representations, plans or predictions of the future, and are typically identified by such words as “believe,” “expect,” “anticipate,” “intend,” “estimate,” “may,” “will,” “should” and “could.” Because such statements include risks, uncertainties and contingencies, actual results may differ materially from those expressed or implied by such forward looking statements. These forward-looking statements are based upon the Company’s present expectations, but these statements are not guaranteed to occur. Furthermore, the Company disclaims any obligation to publicly update or revise any forward-looking statement to reflect changes in underlying assumptions or factors, of new information, data or methods, future events or other changes. Investors should not place undue reliance upon forward-looking statements. For further discussion of the factors that could affect outcomes, please refer to the “Risk Factors” section of the prospectus dated June 21, 2021 and its accompanying prospectus supplement dated November 17, 2021, and in the Company’s subsequent annual and periodic reports and other documents filed with the SEC, copies of which are available on the SEC’s website, www.sec.gov.
Non-GAAP Financial Measures
The foregoing supplemental financial data includes certain non-GAAP financial measures that we believe are helpful in understanding our business and performance, as further described below. Our definition and calculation of these non-GAAP financial measures may differ from those of other REITs, and may, therefore, not be comparable.
NOI
While we believe net income (loss), as defined by accounting principles generally accepted in the United States of America (U.S. GAAP), is the most appropriate measure, we consider NOI, given its wide use by and relevance to investors and analysts, an appropriate supplemental performance measure. 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 NOI as follows:
NOI from property operations is calculated as net income (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, interest expense, including amortization of financing costs, share based compensation expense, loss on impairment, other income, net amortization of above and below market leases and realized gain on disposal of investment property. 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.
The following tables reflect net loss attributable to common shareholders with a reconciliation to NOI, as computed in accordance with GAAP for the periods presented:
| Year ended | ||||||||
| December 31, | ||||||||
| Net Operating Income | 2021 | 2020 | ||||||
| Net Loss | $ | (4,358,282 | ) | $ | (9,581,542 | ) | ||
| Plus: Preferred dividends, including amortization of capitalized issuance costs | 604,383 | 506,819 | ||||||
| Plus: Legal, accounting and other professional fees | 1,465,199 | 1,258,863 | ||||||
| Plus: Corporate general and administrative expenses | 654,137 | 300,641 | ||||||
| Plus: Depreciation expense | 2,415,139 | 3,067,556 | ||||||
| Plus: Amortization of intangible assets | 1,093,565 | 914,318 | ||||||
| Plus: Interest expense, including amortization of capitalized loan issuance costs | 4,929,872 | 3,453,807 | ||||||
| Plus: Share based compensation expense | 149,981 | 569,995 | ||||||
| Plus: Loss on impairment | - | 3,717,155 | ||||||
| Less: Other income | (361,469 | ) | (120,982 | ) | ||||
| Less (Plus): Net amortization of above and below market leases | (24,024 | ) | 6,142 | |||||
| Less: Realized gain on disposal of investment property | (124,641 | ) | - | |||||
| Net Operating Income - NOI | $ | 6,443,860 | $ | 4,092,772 | ||||
| Three Months Ended December 31, | ||||||||
| 2021 | 2020 | |||||||
| (Unaudited) | (Unaudited) | |||||||
| Net Operating Income | ||||||||
| Net Loss | $ | (534,250 | ) | $ | (4,608,877 | ) | ||
| Plus: Preferred dividends, including amortization of capitalized issuance costs | 152,767 | 148,388 | ||||||
| Plus: Legal, accounting and other professional fees | 365,318 | 245,151 | ||||||
| Plus: Corporate general and administrative expenses | 85,658 | 59,603 | ||||||
| Plus: Depreciation expense | 749,936 | 767,379 | ||||||
| Plus: Amortization of intangible assets | 397,554 | 198,468 | ||||||
| Plus: Interest expense, including amortization of capitalized loan issuance costs | 772,290 | 946,901 | ||||||
| Plus: Impairment on assets held for sale | - | 3,494,058 | ||||||
| Less: Other income | (174,191 | ) | (120,488 | ) | ||||
| Less: Net amortization of above and below market leases | (21,674 | ) | 3,234 | |||||
| Less: Realized gain on disposal of investment properties | - | - | ||||||
| Net Operating Income - NOI | $ | 1,793,408 | $ | 1,133,817 | ||||
EBITDA
EBITDA is net income (loss), 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 and realized gain on disposal of investment property.
The following tables reflect net loss with a reconciliation to EBITDA, as computed in accordance with GAAP for the periods presented:
| Year ended | ||||||||
| December 31 | ||||||||
| 2021 | 2020 | |||||||
| Net Loss | $ | (4,358,282 | ) | $ | (9,581,542 | ) | ||
| Plus: Preferred dividends, including amortization of capitalized issuance costs | 604,383 | 506,819 | ||||||
| Plus: Interest expense, including amortization of capitalized loan issuance costs | 4,929,872 | 3,453,807 | ||||||
| Plus: Depreciation expense | 2,415,139 | 3,067,556 | ||||||
| Plus: Amortization of intangible assets | 1,093,565 | 914,318 | ||||||
| Less (Plus): Net amortization of above and below market leases | (24,024 | ) | 6,142 | |||||
| Less: Realized gain on disposal of investment property | (124,641 | ) | - | |||||
| EBITDA | $ | 4,536,012 | $ | (1,632,900 | ) | |||
| Three Months Ended December 31, | ||||||||
| 2021 | 2020 | |||||||
| (Unaudited) | (Unaudited) | |||||||
| EBITDA | ||||||||
| Net Loss | $ | (534,250 | ) | $ | (4,608,877 | ) | ||
| Plus: Preferred dividends, including amortization of capitalized issuance costs | 152,767 | 148,388 | ||||||
| Plus: Interest expense, including amortization of capitalized loan issuance costs | 772,290 | 946,901 | ||||||
| Plus: Depreciation expense | 749,936 | 767,379 | ||||||
| Plus: Amortization of intangible assets | 397,554 | 198,468 | ||||||
| Less: Net amortization of above and below market leases | (21,674 | ) | 3,234 | |||||
| EBITDA | $ | 1,516,623 | $ | (2,544,507 | ) | |||
FFO and AFFO
Funds from operations (“FFO”), a non-GAAP measure, is 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, plus real estate related depreciation and amortization (excluding amortization of loan origination costs and above and below market leases) and after adjustments for unconsolidated partnerships and joint ventures. In addition to FFO, Adjusted 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.
The following tables reflect net loss with a reconciliation to FFO and AFFO for the periods presented:
| Year ended | ||||||||
| December 31, | ||||||||
| 2021 | 2020 | |||||||
| Funds from operations | ||||||||
| Net Loss | $ | (4,358,282 | ) | $ | (9,581,542 | ) | ||
| Depreciation of tangible real property assets | 1,912,353 | 2,705,017 | ||||||
| Depreciation of tenant improvements | 437,372 | 312,961 | ||||||
| Amortization of tenant inducements | - | 7,100 | ||||||
| Amortization of leasing commissions | 65,414 | 49,578 | ||||||
| Amortization of intangible assets | 1,093,565 | 914,318 | ||||||
| Loss on impairment | - | 223,097 | ||||||
| Impairment of assets held for sale | - | 3,494,058 | ||||||
| Gain on sale of investment properties | (124,641 | ) | - | |||||
| Funds from operations | $ | (974,219 | ) | $ | (1,875,413 | ) | ||
| Adjusted funds from operations | ||||||||
| Funds from operations | $ | (974,219 | ) | $ | (1,875,413 | ) | ||
| Amortization of above market leases | 250,504 | 221,390 | ||||||
| Amortization of below market leases | (274,528 | ) | (215,248 | ) | ||||
| Straight line rent | (198,594 | ) | (244,003 | ) | ||||
| Capital expenditures | (536,685 | ) | (226,640 | ) | ||||
| Decrease in fair value of interest rate cap | 27,281 | 12,124 | ||||||
| Amortization of loan issuance costs | 103,180 | 279,951 | ||||||
| Amortization of preferred stock discount and offering costs | 204,383 | 162,375 | ||||||
| Amortization of convertible debenture discount, offering costs and beneficial conversion feature | 1,718,487 | - | ||||||
| Share-based compensation | 149,981 | 569,995 | ||||||
| Write off unbilled rent | - | 31,162 | ||||||
| Bad debt expense | 39,024 | 431,143 | ||||||
| Debt forgiveness | (176,300 | ) | (129,600 | ) | ||||
| Adjusted funds from operations (AFFO) | $ | 332,514 | $ | (982,764 | ) | |||
| Three Months Ended December 31, | ||||||||
| 2021 | 2020 | |||||||
| (Unaudited) | (Unaudited) | |||||||
| Funds from operations | ||||||||
| Net loss | $ | (534,250 | ) | $ | (4,608,877 | ) | ||
| Depreciation of tangible real property assets | 587,125 | 677,864 | ||||||
| Depreciation of tenant improvements | 144,737 | 74,334 | ||||||
| Amortization of leasing commissions | 18,074 | 15,181 | ||||||
| Amortization of intangible assets | 397,554 | 198,468 | ||||||
| Impairment of assets held for sale | - | 3,494,058 | ||||||
| Funds from operations | $ | 613,240 | $ | (148,972 | ) | |||
| Adjusted funds from operations | ||||||||
| Funds from operations | $ | 613,240 | $ | (148,972 | ) | |||
| Amortization of above market leases | 69,701 | 53,613 | ||||||
| Amortization of below market leases | (91,375 | ) | (50,379 | ) | ||||
| Straight line rent | (33,617 | ) | (43,809 | ) | ||||
| Capital expenditures | (253,667 | ) | (24,078 | ) | ||||
| Decrease in fair value of interest rate cap | 27,091 | 10,301 | ||||||
| Amortization of loan issuance costs | 22,469 | 52,829 | ||||||
| Amortization of preferred stock discount and offering costs | 52,767 | 48,388 | ||||||
| Bad debt expense | 13,010 | 96,674 | ||||||
| Debt forgiveness | - | (129,600 | ) | |||||
| Adjusted funds from operations (AFFO) | $ | 419,619 | $ | (135,033 | ) | |||
Contact
Dave Gentry
RedChip Companies
407-491-4498
Exhibit 99.2
Table of Contents
Years Ended December 31, 2021 and 2020
Definitions
Consolidated Balance Sheets as of December 31, 2021 and 2020
Consolidated Statements of Operations for the Years Ended December 31, 2021 and 2020
Consolidated Statements of Cash Flows for the Years Ended December 31, 2021 and 2020
Funds from Operations (FFO) and Adjusted Funds from Operations (AFFO) for the Years Ended December 31, 2021 and 2020
EBITDA Reconciliations – Years Ended December 31, 2021 and 2020
NOI Reconciliations – Years Ended December 31, 2021 and 2020
Same Property NOI Reconciliation
Same Property Statistics – Retail and Flex Properties
Same Property Statistics – Hotel Properties
Weighted Average Lease Term
Weighted Average Mortgage Payable Maturity
Weighted Average Mortgage Payable Interest Rate
Three Months Ended December 31, 2021 and 2020
Condensed Consolidated Statements of Operations for the Three Months Ended December 31, 2021 and 2020 (unaudited)
Funds from Operations (FFO) and Adjusted Funds from Operations (AFFO) for the Three Months Ended December 31, 2021 and 2020 (unaudited)
EBITDA Reconciliations – Three Months Ended December 31, 2021 and 2020 (unaudited)
NOI Reconciliations – Three Months Ended December 31, 2021 and 2021 (unaudited)
Definitions
Investors and analysts following the real estate industry utilize certain financial measures as supplemental performance measures, including net operating income ("NOI"), Same Property NOI, and earnings before interest, taxes, depreciation and amortization for real estate ("EBITDA").
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, and EBITDA, 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:
• 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 and realized gain on disposal of investment property.
• 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, interest expense, including amortization of financing costs, share based compensation expense, loss on impairment, other income, net amortization of above and below market leases and realized gain on disposal of investment property. 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 Annual Report on Form 10-K for the year ended December 31, 2021.
• 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.
NOI, Same Property NOI, 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 shareholders (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.
FFO and AFFO Funds from operations (“FFO”), a non-GAAP measure, is 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, plus real estate related depreciation and amortization (excluding amortization of loan origination costs and above and below market leases) and after adjustments for unconsolidated partnerships and joint ventures. In addition to FFO, Adjusted 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.
Medalist Diversified REIT, Inc. and Subsidiaries
Consolidated Balance Sheets
| December 31, | ||||||||
| 2021 | 2020 | |||||||
| ASSETS | ||||||||
| Investment properties, net | $ | 69,407,915 | $ | 57,055,862 | ||||
| Cash | 4,370,405 | 2,862,994 | ||||||
| Restricted cash | 3,013,572 | 2,233,934 | ||||||
| Rent and other receivables, net of allowance of $13,010 and $4,693, as of December 31, 2021 and 2020, respectively | 466,141 | 458,752 | ||||||
| Assets held for sale | 9,846,208 | 12,410,250 | ||||||
| Unbilled rent | 872,322 | 673,728 | ||||||
| Intangible assets, net | 4,200,392 | 3,256,362 | ||||||
| Other assets | 370,133 | 319,890 | ||||||
| Total Assets | $ | 92,547,088 | $ | 79,271,772 | ||||
| LIABILITIES | ||||||||
| Accounts payable and accrued liabilities | $ | 1,307,257 | $ | 1,308,056 | ||||
| Intangible liabilities, net | 1,880,612 | 1,022,497 | ||||||
| Line of credit, short term, net | — | 325,000 | ||||||
| Notes payable | — | 176,300 | ||||||
| Convertible debentures, net | — | 2,260,565 | ||||||
| Mortgages payable, net | 54,517,822 | 48,094,354 | ||||||
| Mortgages payable, net, associated with assets held for sale | 7,615,368 | 10,352,000 | ||||||
| Mandatorily redeemable preferred stock, net | 4,227,640 | 4,023,257 | ||||||
| Total Liabilities | $ | 69,548,699 | $ | 67,562,029 | ||||
| EQUITY | ||||||||
| Common stock, 16,052,617 and 4,803,445 shares issued and outstanding at December 31, 2021 and 2020, respectively | $ | 160,526 | 48,032 | |||||
| Additional paid-in capital | 49,645,426 | 33,105,099 | ||||||
| Offering costs | (3,350,946 | ) | (2,992,357 | ) | ||||
| Accumulated deficit | (24,981,346 | ) | (19,298,987 | ) | ||||
| Total Stockholders' Equity | 21,473,660 | 10,861,787 | ||||||
| Noncontrolling interests - Hampton Inn Property | — | (224,383 | ) | |||||
| Noncontrolling interests - Hanover Square Property | 146,603 | 189,784 | ||||||
| Noncontrolling interests - Parkway Property | 500,209 | — | ||||||
| Noncontrolling interests - Operating Partnership | 877,917 | 882,555 | ||||||
| Total Equity | $ | 22,998,389 | $ | 11,709,743 | ||||
| Total Liabilities and Equity | $ | 92,547,088 | $ | 79,271,772 | ||||
Medalist Diversified REIT, Inc. and Subsidiaries
Consolidated Statements of Operations
| Year Ending December 31, | ||||||||
| 2021 | 2020 | |||||||
| REVENUE | ||||||||
| Retail center property revenues | $ | 4,719,289 | $ | 4,284,779 | ||||
| Retail center property tenant reimbursements | 915,107 | 867,371 | ||||||
| Flex center property revenues | 934,230 | 559,641 | ||||||
| Flex center property tenant reimbursements | 268,592 | 227,193 | ||||||
| Hotel property room revenues | 4,590,372 | 3,207,405 | ||||||
| Hotel property other revenues | 44,959 | 129,771 | ||||||
| Total Revenue | $ | 11,472,549 | $ | 9,276,160 | ||||
| OPERATING EXPENSES | ||||||||
| Retail center property operating expenses | $ | 1,518,973 | $ | 1,362,532 | ||||
| Flex center property operating expenses | 343,717 | 231,209 | ||||||
| Hotel property operating expenses | 3,102,951 | 3,164,646 | ||||||
| Bad debt expense | 39,024 | 431,143 | ||||||
| Share based compensation expenses | 149,981 | 569,995 | ||||||
| Legal, accounting and other professional fees | 1,465,199 | 1,258,863 | ||||||
| Corporate general and administrative expenses | 654,137 | 300,641 | ||||||
| Loss on impairment | — | 223,097 | ||||||
| Impairment of assets held for sale | — | 3,494,058 | ||||||
| Depreciation and amortization | 3,508,704 | 3,981,874 | ||||||
| Total Operating Expenses | 10,782,686 | 15,018,058 | ||||||
| Gain on disposal of investment properties | 124,641 | — | ||||||
| Operating income (loss) | 814,504 | (5,741,898 | ) | |||||
| Interest expense | 5,534,255 | 3,960,626 | ||||||
| Net Loss from Operations | (4,719,751 | ) | (9,702,524 | ) | ||||
| Other income | 361,469 | 120,982 | ||||||
| Net Loss | (4,358,282 | ) | (9,581,542 | ) | ||||
| Less: Net income (loss) attributable to Hampton Inn Property noncontrolling interests | 14,651 | (1,131,765 | ) | |||||
| Less: Net loss attributable to Hanover Square Property noncontrolling interests | (8,781 | ) | (23,167 | ) | ||||
| Less: Net loss attributable to Parkway Property noncontrolling interests | (3,791 | ) | — | |||||
| Less: Net income (loss) attributable to Operating Partnership noncontrolling interests | 3,903 | (246,001 | ) | |||||
| Net Loss Attributable to Medalist Common Shareholders | $ | (4,364,264 | ) | $ | (8,180,609 | ) | ||
| Loss per share from operations - basic and diluted | $ | (0.33 | ) | $ | (1.74 | ) | ||
| Weighted-average number of shares - basic and diluted | 13,092,937 | 4,709,980 | ||||||
| Dividends paid per common share | $ | 0.04 | $ | 0.125 | ||||
Medalist Diversified REIT, Inc. and Subsidiaries
Consolidated Statements of Cash Flows
| Year ended December 31, | ||||||||
| 2021 | 2020 | |||||||
| CASH FLOWS FROM OPERATING ACTIVITIES | ||||||||
| Net Loss | $ | (4,358,282 | ) | $ | (9,581,542 | ) | ||
| Adjustments to reconcile consolidated net loss to net cash flows from operating activities | ||||||||
| Depreciation | 2,415,139 | 3,067,556 | ||||||
| Amortization | 1,093,565 | 914,318 | ||||||
| Loan cost amortization | 103,180 | 279,951 | ||||||
| Mandatorily redeemable preferred stock issuance cost and discount amortization | 204,383 | 162,375 | ||||||
| Convertible debenture issuance cost, discount and beneficial conversion feature amortization | 1,718,487 | 119,870 | ||||||
| Amortization of tenant inducements | — | 7,100 | ||||||
| Above (below) market lease amortization, net | (24,024 | ) | 6,142 | |||||
| Bad debt expense | 39,024 | 431,143 | ||||||
| Note payable forgiveness | (176,300 | ) | (129,600 | ) | ||||
| Share-based compensation | 149,981 | 569,995 | ||||||
| Impairment of assets held for sale | — | 3,494,058 | ||||||
| Loss on impairment | — | 223,097 | ||||||
| Gain on sale of investment property | (124,641 | ) | — | |||||
| Changes in assets and liabilities | ||||||||
| Rent and other receivables, net | (46,413 | ) | (740,513 | ) | ||||
| Unbilled rent | (198,594 | ) | (212,840 | ) | ||||
| Other assets | (50,243 | ) | (38,955 | ) | ||||
| Accounts payable and accrued liabilities | 87,351 | (257,089 | ) | |||||
| Net cash flows from operating activities | 832,613 | (1,684,934 | ) | |||||
| CASH FLOWS FROM INVESTING ACTIVITIES | ||||||||
| Investment property acquisitions, net of cash acquired and assumed debt | (20,750,571 | ) | — | |||||
| Capital expenditures | (536,685 | ) | (414,361 | ) | ||||
| Cash received from disposal of investment properties | 2,144,529 | — | ||||||
| Net cash flows from investing activities | (19,142,727 | ) | (414,361 | ) | ||||
| CASH FLOWS FROM FINANCING ACTIVITIES | ||||||||
| Dividends and distributions paid | (1,151,304 | ) | (917,733 | ) | ||||
| Investment of noncontrolling interests | 504,000 | — | ||||||
| Proceeds from line of credit, short term, net | — | 550,000 | ||||||
| Repayment of line of credit, short term | (325,000 | ) | (2,225,000 | ) | ||||
| Repayment of related party notes payable, short term | — | (852,000 | ) | |||||
| Proceeds from notes payable | — | 305,900 | ||||||
| Proceeds from mortgages payable, net | 24,377,886 | 1,938,697 | ||||||
| Repayment of mortgages payable | (14,914,830 | ) | (463,196 | ) | ||||
| Proceeds from sale of mandatorily preferred stock, net of capitalized offering costs | — | 3,860,882 | ||||||
| Proceeds from sale of convertible debentures, net of capitalized offering costs | 1,305,000 | 2,926,483 | ||||||
| Proceeds from sales of common stock, net of capitalized offering costs | 10,801,411 | — | ||||||
| Net cash flows from financing activities | 20,597,163 | 5,124,033 | ||||||
| INCREASE IN CASH, CASH EQUIVALENTS AND RESTRICTED CASH | 2,287,049 | 3,024,738 | ||||||
| CASH, CASH EQUIVALENTS AND RESTRICTED CASH, beginning of period | 5,096,928 | 2,072,190 | ||||||
| CASH, CASH EQUIVALENTS AND RESTRICTED CASH, end of period | $ | 7,383,977 | $ | 5,096,928 | ||||
| CASH AND CASH EQUIVALENTS, end of period, shown in consolidated balance sheets | 4,370,405 | 2,862,994 | ||||||
| RESTRICTED CASH including assets restricted for capital and operating reserves and tenant deposits, end of period, shown in consolidated balance sheets | 3,013,572 | 2,233,934 | ||||||
| CASH, CASH EQUIVALENTS AND RESTRICTED CASH, end of period shown in the consolidated statements of cash flows | $ | 7,383,977 | $ | 5,096,928 | ||||
| Supplemental Disclosures and Non-Cash Activities: | ||||||||
| Other cash transactions: | ||||||||
| Interest paid | $ | 4,065,121 | $ | 3,276,544 | ||||
| Non-cash transactions: | ||||||||
| Conversion of convertible debentures and accrued interest to common stock | $ | 5,058,788 | $ | — | ||||
| Transfer of investment properties, net to assets held for sale, net | 9,683,555 | — | ||||||
| Transfer of mortgages payable, net to mortgages payable associated with assets held for sale, net | 7,592,931 | — | ||||||
| Assumption of mortgage debt, net | 4,481,600 | — | ||||||
| Forgiveness of note payable | 176,300 | 129,600 | ||||||
| Exchange for 7.55 percent of the noncontrolling interest in the Hampton Inn Property | — | 867,000 | ||||||
| Exchange for 3.00 percent of the noncontrolling interest in the Hampton Inn Property | — | 1,021,960 | ||||||
| Issuance of operating partnership interests in exchange for 3.45 percent of the noncontrolling | ||||||||
| interest in the Hampton Inn Property | — | 375,400 | ||||||
| Conversion of operating partnership units to common shares | — | 123,000 | ||||||
Medalist Diversified REIT
Funds from Operations and Adjusted Funds from Operations
For the year ended December 31, 2021 and 2020
| Year ended | ||||||||
| December 31, | ||||||||
| 2021 | 2020 | |||||||
| Funds from operations | ||||||||
| Net Loss | $ | (4,358,282 | ) | $ | (9,581,542 | ) | ||
| Depreciation of tangible real property assets | 1,912,353 | 2,705,017 | ||||||
| Depreciation of tenant improvements | 437,372 | 312,961 | ||||||
| Amortization of tenant inducements | - | 7,100 | ||||||
| Amortization of leasing commissions | 65,414 | 49,578 | ||||||
| Amortization of intangible assets | 1,093,565 | 914,318 | ||||||
| Loss on impairment | - | 223,097 | ||||||
| Impairment of assets held for sale | - | 3,494,058 | ||||||
| Gain on sale of investment properties | (124,641 | ) | - | |||||
| Funds from operations | $ | (974,219 | ) | $ | (1,875,413 | ) | ||
| Adjusted funds from operations | ||||||||
| Funds from operations | $ | (974,219 | ) | $ | (1,875,413 | ) | ||
| Amortization of above market leases | 250,504 | 221,390 | ||||||
| Amortization of below market leases | (274,528 | ) | (215,248 | ) | ||||
| Straight line rent | (198,594 | ) | (244,003 | ) | ||||
| Capital expenditures | (536,685 | ) | (226,640 | ) | ||||
| Decrease in fair value of interest rate cap | 27,281 | 12,124 | ||||||
| Amortization of loan issuance costs | 103,180 | 279,951 | ||||||
| Amortization of preferred stock discount and offering costs | 204,383 | 162,375 | ||||||
| Amortization of convertible debenture discount, offering costs and beneficial conversion feature | 1,718,487 | - | ||||||
| Share-based compensation | 149,981 | 569,995 | ||||||
| Write off unbilled rent | - | 31,162 | ||||||
| Bad debt expense | 39,024 | 431,143 | ||||||
| Debt forgiveness | (176,300 | ) | (129,600 | ) | ||||
| Adjusted funds from operations (AFFO) | $ | 332,514 | $ | (982,764 | ) | |||
EBITDA Reconciliation
| Year ended | ||||||||
| December 31 | ||||||||
| 2021 | 2020 | |||||||
| Net Loss | $ | (4,358,282 | ) | $ | (9,581,542 | ) | ||
| Plus: Preferred dividends, including amortization of capitalized issuance costs | 604,383 | 506,819 | ||||||
| Plus: Interest expense, including amortization of capitalized loan issuance costs | 4,929,872 | 3,453,807 | ||||||
| Plus: Depreciation expense | 2,415,139 | 3,067,556 | ||||||
| Plus: Amortization of intangible assets | 1,093,565 | 914,318 | ||||||
| (Less) Plus: Net amortization of above and below market leases | (24,024 | ) | 6,142 | |||||
| Less: Realized gain on disposal of investment property | (124,641 | ) | - | |||||
| EBITDA | $ | 4,536,012 | $ | (1,632,900 | ) | |||
NOI Reconciliation
| Year ended | ||||||||
| December 31, | ||||||||
| Net Operating Income | 2021 | 2020 | ||||||
| Net Loss | $ | (4,358,282 | ) | $ | (9,581,542 | ) | ||
| Plus: Preferred dividends, including amortization of capitalized issuance costs | 604,383 | 506,819 | ||||||
| Plus: Legal, accounting and other professional fees | 1,465,199 | 1,258,863 | ||||||
| Plus: Corporate general and administrative expenses | 654,137 | 300,641 | ||||||
| Plus: Depreciation expense | 2,415,139 | 3,067,556 | ||||||
| Plus: Amortization of intangible assets | 1,093,565 | 914,318 | ||||||
| Plus: Interest expense, including amortization of capitalized loan issuance costs | 4,929,872 | 3,453,807 | ||||||
| Plus: Share based compensation expense | 149,981 | 569,995 | ||||||
| Plus: Loss on impairment | - | 3,717,155 | ||||||
| Less: Other income | (361,469 | ) | (120,982 | ) | ||||
| (Less) Plus: Net amortization of above and below market leases | (24,024 | ) | 6,142 | |||||
| Less: Realized gain on disposal of investment property | (124,641 | ) | - | |||||
| Net Operating Income - NOI | $ | 6,443,860 | $ | 4,092,772 | ||||
| Year ended | ||||||||
| December 31, | ||||||||
| 2021 | 2020 | |||||||
| Components of Net Operating Income | ||||||||
| Revenues: | ||||||||
| Retail and flex property rental revenues (1) | $ | 5,629,495 | $ | 4,850,562 | ||||
| Retail and flex property tenant reimbursement revenues | 1,183,699 | 1,094,564 | ||||||
| Hotel property revenues | 4,635,331 | 3,337,176 | ||||||
| Total revenues | 11,448,525 | 9,282,302 | ||||||
| Operating expenses: | ||||||||
| Retail and flex property operating expenses | 1,862,690 | 1,593,741 | ||||||
| Hotel property operating expenses | 3,102,951 | 3,164,646 | ||||||
| Bad debt expense | 39,024 | 431,143 | ||||||
| Total operating expenses | 5,004,665 | 5,189,530 | ||||||
| Net Operating Income - NOI | $ | 6,443,860 | $ | 4,092,772 | ||||
| (1) | Excludes amortization of above and below market leases. |
Same Property NOI Reconciliation
| For the year ended | ||||||||||||||||
| December 31, | ||||||||||||||||
| 2021 | 2020 | Change ($) | Change (%) | |||||||||||||
| Revenues | ||||||||||||||||
| Same Property NOI | $ | 5,356,593 | $ | 4,089,774 | $ | 1,266,819 | 31 | % | ||||||||
| NOI of properties purchased subsequent to December 31, 2020 (1) | 847,635 | - | 847,635 | |||||||||||||
| NOI of properties sold subsequent to December 31, 2020 (2) | 239,632 | 2,998 | 236,634 | |||||||||||||
| Total NOI | $ | 6,443,860 | $ | 4,092,772 | $ | 2,351,088 | 57 | % | ||||||||
| (1) | Lancer Center, Greenbrier Business Center and Parkway |
| (2) | Greensboro Hampton Inn |
Same Property Statistics – Retail and Flex Properties
Total Retail and Flex Properties
| Number of Properties | Total Square Feet | Occupancy | ||||||||||||||||||||||
| As of December 31, | As of December 31, | As of December 31, | ||||||||||||||||||||||
| 2021 | 2020 | 2021 | 2020 | 2021 | 2020 | |||||||||||||||||||
| Retail | 4 | 3 | 546,661 | 368,035 | 95.4 | % | 92.7 | % | ||||||||||||||||
| Flex | 3 | 1 | 218,279 | 64,880 | 94.6 | % | 93.8 | % | ||||||||||||||||
| Total | 7 | 4 | 764,940 | 432,915 | 95.2 | % | 92.8 | % | ||||||||||||||||
Retail and Flex - Same Properties
| Number of Properties | Total Square Feet | Occupancy | ||||||||||||||||||||||
| As of December 31, | As of December 31, | As of December 31, | ||||||||||||||||||||||
| 2021 | 2020 | 2021 | 2020 | 2021 | 2020 | |||||||||||||||||||
| Retail (3) | 3 | 3 | 368,035 | 368,035 | 93.1 | % | 92.7 | % | ||||||||||||||||
| Flex (1) | 1 | 1 | 64,880 | 64,880 | 100.0 | % | 93.8 | % | ||||||||||||||||
| Total (4) | 4 | 4 | 432,915 | 432,915 | 94.2 | % | 92.8 | % | ||||||||||||||||
Same Property Statistics – Hotel Properties
Total Hotel Properties
| Number of Properties | Total Rooms | Occupancy | ||||||||||||||||||||||
| As of December 31, | As of December 31, | As of December 31, | ||||||||||||||||||||||
| 2021 | 2020 | 2021 | 2020 | 2021 | 2020 | |||||||||||||||||||
| Hotel | 1 | 2 | 148 | 272 | 90.4 | % | 46.2 | % | ||||||||||||||||
Hotel Same Properties
| Number of Properties | Total Rooms | Occupancy | ||||||||||||||||||||||
| As of December 31, | As of December 31, | As of December 31, | ||||||||||||||||||||||
| 2021 | 2020 | 2021 | 2020 | 2021 | 2020 | |||||||||||||||||||
| Hotel | 1 | 1 | 148 | 148 | 100.0 | % | 47.2 | % | ||||||||||||||||
Weighted Average Lease Term
| Retail Properties | ||||
| Ashley Plaza | 6.49 | |||
| Franklin Square | 3.90 | |||
| Hanover Square | 3.29 | |||
| Lancer Center | 4.22 | |||
| Retail Property Average | 4.88 | |||
| Flex Properties | ||||
| Brookfield | 3.70 | |||
| Greenbrier Business Center | 1.50 | |||
| Parkway | 2.02 | |||
| Flex Property Average | 2.31 | |||
| Retail and Flex Property Average | 4.00 |
Weighted Average Debt Data
| Weighted Average Mortgage Maturity (Years) | 6.33 | |||
| Weighted Average Mortgage Payable Interest Rate | 4.2 | % |
Medalist Diversified REIT
Condensed Consolidated Statements of Operations
For the three months ended December 31, 2021 and 2020
| Three Months Ended December 31, | ||||||||
| 2021 | 2020 | |||||||
| (Unaudited) | (Unaudited) | |||||||
| REVENUE | ||||||||
| Retail center property revenues | $ | 1,277,726 | $ | 994,058 | ||||
| Retail center property tenant reimbursements | 307,461 | 205,145 | ||||||
| Flex center property revenues | 447,543 | 139,704 | ||||||
| Flex center property tenant reimbursements | 125,272 | 59,369 | ||||||
| Hotel property room revenues | 619,824 | 974,906 | ||||||
| Hotel property other revenues | 6,466 | 23,567 | ||||||
| Total Revenue | $ | 2,784,292 | $ | 2,396,749 | ||||
| OPERATING EXPENSES | ||||||||
| Retail center property operating expenses | $ | 439,959 | $ | 329,363 | ||||
| Flex center property operating expenses | 146,868 | 74,894 | ||||||
| Hotel property operating expenses | 369,373 | 765,235 | ||||||
| Bad debt expense | 13,010 | 96,674 | ||||||
| Legal, accounting and other professional fees | 365,318 | 245,151 | ||||||
| Corporate general and administrative expenses | 85,658 | 59,603 | ||||||
| Impairment of assets held for sale | - | 3,494,058 | ||||||
| Depreciation and amortization | 1,147,490 | 965,847 | ||||||
| Total Operating Expenses | 2,567,676 | 6,030,825 | ||||||
| Operating (loss) income | 216,616 | (3,634,076 | ) | |||||
| Interest expense | 925,057 | 1,095,289 | ||||||
| Net Loss from Operations | (708,441 | ) | (4,729,365 | ) | ||||
| Other income | 174,191 | 120,488 | ||||||
| Net Loss | (534,250 | ) | (4,608,877 | ) | ||||
| Less: Net loss attributable to Hampton Inn Property noncontrolling interests | (5,194 | ) | (873,066 | ) | ||||
| Less: Net income (loss) attributable to Hanover Square Property noncontrolling interests | 5,617 | (3,061 | ) | |||||
| Less: Net loss attributable to Parkway Property noncontrolling interests | (3,791 | ) | - | |||||
| Less: Net income (loss) attributable to Operating Partnership noncontrolling interests | 880 | (133,951 | ) | |||||
| Net Loss Attributable to Medalist Common Shareholders | $ | (531,762 | ) | $ | (3,598,799 | ) | ||
| Loss per share from operations - basic and diluted | $ | (0.03 | ) | $ | (0.75 | ) | ||
| Weighted-average number of shares - basic and diluted | 16,052,617 | 4,803,445 | ||||||
| Dividends paid per common share | $ | 0.02 | $ | - | ||||
Medalist Diversified REIT
Funds from Operations and Adjusted Funds from Operations
For the three months ended December 31, 2021 and 2020
| Three Months Ended December 31, | ||||||||
| 2021 | 2020 | |||||||
| (Unaudited) | (Unaudited) | |||||||
| Funds from operations | ||||||||
| Net loss | $ | (534,250 | ) | $ | (4,608,877 | ) | ||
| Depreciation of tangible real property assets | 587,125 | 677,864 | ||||||
| Depreciation of tenant improvements | 144,737 | 74,334 | ||||||
| Amortization of leasing commissions | 18,074 | 15,181 | ||||||
| Amortization of intangible assets | 397,554 | 198,468 | ||||||
| Impairment of assets held for sale | - | 3,494,058 | ||||||
| Funds from operations | $ | 613,240 | $ | (148,972 | ) | |||
| Adjusted funds from operations | ||||||||
| Funds from operations | $ | 613,240 | $ | (148,972 | ) | |||
| Amortization of above market leases | 69,701 | 53,613 | ||||||
| Amortization of below market leases | (91,375 | ) | (50,379 | ) | ||||
| Straight line rent | (33,617 | ) | (43,809 | ) | ||||
| Capital expenditures | (253,667 | ) | (24,078 | ) | ||||
| Decrease in fair value of interest rate cap | 27,091 | 10,301 | ||||||
| Amortization of loan issuance costs | 22,469 | 52,829 | ||||||
| Amortization of preferred stock discount and offering costs | 52,767 | 48,388 | ||||||
| Bad debt expense | 13,010 | 96,674 | ||||||
| Debt forgiveness | - | (129,600 | ) | |||||
| Adjusted funds from operations (AFFO) | $ | 419,619 | $ | (135,033 | ) | |||
Medalist Diversified REIT
EBITDA Reconciliation to Net Loss
For the three months ended December 31, 2021 and 2020
| Three Months Ended December 31, | ||||||||
| 2021 | 2020 | |||||||
| (Unaudited) | (Unaudited) | |||||||
| EBITDA | ||||||||
| Net Loss | $ | (534,250 | ) | $ | (4,608,877 | ) | ||
| Plus: Preferred dividends, including amortization of capitalized issuance costs | 152,767 | 148,388 | ||||||
| Plus: Interest expense, including amortization of capitalized loan issuance costs | 772,290 | 946,901 | ||||||
| Plus: Depreciation expense | 749,936 | 767,379 | ||||||
| Plus: Amortization of intangible assets | 397,554 | 198,468 | ||||||
| Less: Net amortization of above and below market leases | (21,674 | ) | 3,234 | |||||
| EBITDA | $ | 1,516,623 | $ | (2,544,507 | ) | |||
Medalist Diversified REIT
Net Operating Income Reconciliation to Net Loss
For the three months ended December 31, 2021 and 2020
| Three Months Ended December 31, | ||||||||
| 2021 | 2020 | |||||||
| (Unaudited) | (Unaudited) | |||||||
| Net Operating Income | ||||||||
| Net Loss | $ | (534,250 | ) | $ | (4,608,877 | ) | ||
| Plus: Preferred dividends, including amortization of capitalized issuance costs | 152,767 | 148,388 | ||||||
| Plus: Legal, accounting and other professional fees | 365,318 | 245,151 | ||||||
| Plus: Corporate general and administrative expenses | 85,658 | 59,603 | ||||||
| Plus: Depreciation expense | 749,936 | 767,379 | ||||||
| Plus: Amortization of intangible assets | 397,554 | 198,468 | ||||||
| Plus: Interest expense, including amortization of capitalized loan issuance costs | 772,290 | 946,901 | ||||||
| Plus: Impairment on assets held for sale | - | 3,494,058 | ||||||
| Less: Other income | (174,191 | ) | (120,488 | ) | ||||
| Less: Net amortization of above and below market leases | (21,674 | ) | 3,234 | |||||
| Less: Realized gain on disposal of investment properties | - | - | ||||||
| Net Operating Income - NOI | $ | 1,793,408 | $ | 1,133,817 | ||||
| Three Months Ended December 31, | ||||||||
| 2021 | 2020 | |||||||
| (Unaudited) | (Unaudited) | |||||||
| Components of Net Operating Income | ||||||||
| Revenues: | ||||||||
| Retail and flex property rental revenues (1) | $ | 1,703,595 | $ | 1,136,996 | ||||
| Retail and flex property tenant reimbursement revenues | 432,733 | 264,514 | ||||||
| Hotel property revenues | 626,290 | 998,473 | ||||||
| Total revenues | 2,762,618 | 2,399,983 | ||||||
| Operating expenses: | ||||||||
| Retail and flex property operating expenses | 586,827 | 404,257 | ||||||
| Hotel property operating expenses | 369,373 | 765,235 | ||||||
| Bad debt expense | 13,010 | 96,674 | ||||||
| Total operating expenses | 969,210 | 1,266,166 | ||||||
| Net Operating Income - NOI | $ | 1,793,408 | $ | 1,133,817 | ||||
| (1) | Excludes amortization of above and below market leases. |