8-K
Medalist Diversified, Inc. (MDRR)
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): August 9, 2022
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.) |
1051 E. Cary Street Suite 601
James Center Three
Richmond , VA , 23219
(Address of principal executive offices)
( 804 ) 344-4435
(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:s
☐ 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> |
ITEM 2.02RESULTS OF OPERATIONS AND FINANCIAL CONDITION.
On August 9, 2022, Medalist Diversified REIT, Inc., a Maryland corporation (the “Company”) issued a press release announcing its financial results for the quarterly period ended June 30, 2022 (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 9.01FINANCIAL STATEMENTS AND EXHIBITS.
(d) Exhibits
| Exhibit No. | Description |
|---|---|
| 99.1 | Press Release, dated August 9, 2022 |
| 99.2 | Financial Supplement to Press Release, dated August 9, 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: August 9, 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 SECOND QUARTER 2022 RESULTS
RICHMOND, VA, August 9, 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 three months ended June 30, 2022 and provided an update on its corporate activities. In addition, the Company released supplemental financial information about its first quarter financial results.
Key Highlights:
| ● | FFO increased by $2,196,302 to $671,346 for the six months ended June 30, 2022, compared to FFO of ($1,524,956) for the six months ended June 30, 2021. |
|---|
| ● | Net Operating Income (NOI) grew 1.9% to $1.61 million for the quarter ended June 30, 2022, compared to NOI of $1.58 million for the quarter ended June 30, 2021. |
|---|
| ● | Same Property NOI growth of 4.9% within the retail and flex property portfolio for the quarter ended June 30, 2022, compared to the quarter ended June 30, 2021. |
|---|
| ● | Completed the acquisition of Salisbury Marketplace in Salisbury, North Carolina for a gross purchase price of $10.05 million. Salisbury Marketplace is a 79,732 square foot retail center which is 89.9% leased and anchored by Food Lion, CitiTrends, and Family Dollar. The acquisition was financed by the recently completed corporate credit facility with Wells Fargo Bank. |
|---|
| ● | Completed a $20.1 million corporate credit facility with Wells Fargo Bank with $18.6 million in term debt exposure to provide funding for the acquisition of Salisbury Marketplace and to refinance mortgages on two of the Company’s existing properties, Lancer Center and the Greenbrier Business Center. The corporate credit facility also includes a $1.5 million line of credit, which the Company plans to use to fund future acquisitions. |
|---|
| ● | Leasing activity during the first six months of 2022 brings the occupancy of Medalist's properties (excluding the recently acquired Salisbury Marketplace property) to 97.1%, compared to 94.0% as of March 31, 2022. Including the Salisbury Marketplace property, the Company’s flex and retail property portfolio occupancy is 96.4%. |
|---|---|
| o | Nine new leases totaling 35,311 square feet for previously vacant space or to replace tenants with expiring leases |
| --- | --- |
| o | Eight lease renewals with existing tenants for a total of 34,659 square feet. |
| --- | --- |
| o | YTD leasing activity, as of June 30, 2022, represents 8.2% of total retail and flex portfolios. |
| --- | --- |
| ● | The Company paid its fourth consecutive quarterly common dividend of $0.02 per common share. |
|---|
“We are excited to deliver strong second quarter operating and financial results, highlighted by FFO growth of 119.4% and same-store NOI growth of 4.9% compared to the second quarter of 2021. Our core necessity-based tenant roster located in workforce communities is poised to outperform in both expansionary and recessionary economic environments. Throughout the pandemic, our retail and flex properties remained well-leased and experienced robust leasing activity in the first half of 2022. As we move through the remainder of the year, we plan to continue our focus on maximizing shareholder value through organic growth, improving our debt leverage, and distributions to shareholders,” stated Thomas E. Messier, Chairman and Chief Executive Officer of the Company.
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 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, net amortization of above and below market leases, loss on impairment, impairment of assets held for sale, loss on debt extinguishment, and other income. 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:
| | | | | | | | | | | | | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| | | Three Months Ended | | Six Months Ended | ||||||||
| | **** | June 30, | **** | June 30, | ||||||||
| | | 2022 | | 2021 | | 2022 | | 2021 | ||||
| | | (unaudited) | | (unaudited) | | (unaudited) | | (unaudited) | ||||
| Net Operating Income | | | | | | | | | | | | |
| Net Loss | $ | (1,007,939) | | $ | (640,824) | | $ | (1,988,322) | | $ | (2,948,566) | |
| Plus: Preferred dividends, including amortization of capitalized issuance costs | | 155,104 | | 150,530 | | 309,027 | | 299,979 | ||||
| Plus: Legal, accounting and other professional fees | | 368,546 | | 296,040 | | 828,415 | | 787,895 | ||||
| Plus: Corporate general and administrative expenses | | | 155,509 | | | 117,040 | | | 236,215 | | | 186,177 |
| Plus: Depreciation expense | | | 792,584 | | | 548,760 | | | 1,564,144 | | | 1,003,534 |
| Plus: Amortization of intangible assets | | | 329,871 | | | 221,617 | | | 713,508 | | | 420,076 |
| Plus: Interest expense, including amortization of capitalized loan issuance costs | | | 719,052 | | | 1,073,766 | | | 1,406,553 | | | 3,358,449 |
| Plus: Share based compensation expense | | | - | | | - | | | 233,100 | | | 149,981 |
| Plus: Loss on impairment | | - | | - | | 36,670 | | - | ||||
| Plus: Impairment of assets held for sale | | | - | | | - | | | 175,671 | | | - |
| Plus: Loss on extinguishment of debt | | | 169,675 | | | - | | | 169,675 | | | - |
| Less: Other income | | | (29,324) | | | (182,407) | | | (124,763) | | | (183,759) |
| Less: Net amortization of above and below market leases | | | (38,217) | | | 381 | | | (64,251) | | | 3,618 |
| Net Operating Income - NOI | | $ | 1,614,861 | | $ | 1,584,903 | | $ | 3,495,642 | | $ | 3,077,384 |
Same Property NOI
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. The following table reconciles same property retail and flex NOI, NOI of newly acquired retail and flex properties, same hotel property NOI, and NOI of disposed hotel properties with total NOI.
| | | | | | | | | | | | | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| | | Three Months Ended | | Six Months Ended | ||||||||
| | **** | June 30, | **** | June 30, | ||||||||
| | | 2022 | | 2021 | | 2022 | | 2021 | ||||
| | | (unaudited) | | (unaudited) | | (unaudited) | | (unaudited) | ||||
| Same Property Retail & Flex NOI Reconciliation | | | | | | | | | | | | |
| Same property retail & flex NOI | $ | 1,060,352 | | $ | 1,011,075 | | $ | 2,077,954 | | $ | 2,005,566 | |
| NOI of newly acquired retail & flex properties (1) | | 531,601 | | 115,699 | | 1,002,151 | | 115,699 | ||||
| Same hotel property NOI | | 22,908 | | 263,284 | | 415,537 | | 693,615 | ||||
| NOI of recently sold properties (2) | | | - | | | 194,845 | | | - | | | 262,504 |
| Total NOI (3) | | $ | 1,614,861 | | $ | 1,584,903 | | $ | 3,495,642 | | $ | 3,077,384 |
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, loss on impairment, impairment of assets held for sale and loss on debt extinguishment.
The following tables reflect net loss with a reconciliation to EBITDA, as computed in accordance with GAAP for the periods presented:
| | | | | | | | | | | | | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| | | Three Months Ended | | Six Months Ended | ||||||||
| | **** | June 30, | **** | June 30, | ||||||||
| | | 2022 | | 2021 | | 2022 | | 2021 | ||||
| | | (unaudited) | | (unaudited) | | (unaudited) | | (unaudited) | ||||
| EBITDA | | | | | | | | | | | | |
| Net Loss | $ | (1,007,939) | | $ | (640,824) | | $ | (1,988,322) | | $ | (2,948,566) | |
| Plus: Preferred dividends, including amortization of capitalized issuance costs | | 155,104 | | 150,530 | | 309,027 | | 299,979 | ||||
| Plus: Interest expense, including amortization of capitalized loan issuance costs | | 719,052 | | 1,073,766 | | 1,406,553 | | 3,358,449 | ||||
| Plus: Depreciation expense | | 792,584 | | 548,760 | | 1,564,144 | | 1,003,534 | ||||
| Plus: Amortization of intangible assets | | | 329,871 | | | 221,617 | | | 713,508 | | | 420,076 |
| Less: Net amortization of above and below market leases | | | (38,217) | | | 381 | | | (64,251) | | | 3,618 |
| Plus: Loss on impairment | | | - | | | - | | | 36,670 | | | - |
| Plus: Impairment of assets held for sale | | | - | | | - | | | 175,671 | | | - |
| Plus: Loss on extinguishment of debt | | | 169,675 | | | - | | | 169,675 | | | - |
| EBITDA | | $ | 1,120,130 | | $ | 1,354,230 | | $ | 2,322,675 | | $ | 2,137,090 |
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:
| | | | | | | | | | | | | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| | | Three Months Ended | | Six Months Ended | ||||||||
| | **** | June 30, | **** | June 30, | ||||||||
| | | 2022 | | 2021 | | 2022 | | 2021 | ||||
| Funds from operations | | | | | | | | | | | | |
| Net income (loss) | $ | (1,007,939) | | $ | (640,824) | | $ | (1,988,322) | | $ | (2,948,566) | |
| Depreciation of tangible real property assets | | 616,416 | | 436,661 | | 1,219,261 | | 802,387 | ||||
| Depreciation of tenant improvements | | 151,522 | | 96,483 | | 300,446 | | 170,819 | ||||
| Amortization of leasing commissions | | 24,646 | | 15,616 | | 44,437 | | 30,328 | ||||
| Amortization of intangible assets | | 329,871 | | 221,617 | | 713,508 | | 420,076 | ||||
| Loss on impairment | | - | | - | | 36,670 | | - | ||||
| Impairment of assets held for sale | | - | | - | | 175,671 | | - | ||||
| Loss on extinguishment of debt | | | 169,675 | | | - | | | 169,675 | | | - |
| Funds from operations | | $ | 284,191 | | $ | 129,553 | | $ | 671,346 | | $ | (1,524,956) |
| | | | | | | | | | | | | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| | | Three Months Ended | | Six Months Ended | ||||||||
| | **** | June 30, | **** | June 30, | ||||||||
| | | 2022 | | 2021 | | 2022 | | 2021 | ||||
| Adjusted funds from operations | | | | | | | | | | | | |
| Funds from operations | $ | 284,191 | | $ | 129,553 | | $ | 671,346 | | $ | (1,524,956) | |
| Amortization of above market leases | | 55,943 | | 59,984 | | 125,526 | | 113,597 | ||||
| Amortization of below market leases | | (94,160) | | (59,603) | | (189,777) | | (109,979) | ||||
| Straight line rent | | (43,529) | | (55,191) | | (58,450) | | (143,283) | ||||
| Capital expenditures | | | (126,644) | | | (51,202) | | | (492,703) | | (72,852) | |
| Increase in fair value of interest rate cap | | | (28,894) | | | 149 | | | (119,936) | | (11) | |
| Amortization of loan issuance costs | | | 25,499 | | | 16,398 | | | 53,617 | | 60,588 | |
| Amortization of preferred stock discount and offering costs | | | 55,104 | | | 50,530 | | | 109,027 | | 99,979 | |
| Amortization of convertible debenture discount, offering costs and beneficial conversion feature | | | — | | | 263,163 | | | — | | 1,718,487 | |
| Share-based compensation | | — | | — | | 233,100 | | 149,981 | ||||
| Bad debt expense | | 163 | | — | | 12,946 | | 3,196 | ||||
| Debt forgiveness | | | — | | | (176,300) | | | — | | (176,300) | |
| Adjusted Funds from operations (AFFO) | | $ | 127,673 | | $ | 177,481 | | $ | 344,696 | | $ | 118,447 |
Contact
Brent Winn
Medalist Diversified REIT, Inc.
brent.winn@medalistprop.com
Exhibit 99.2
Financial Supplement
Table of Contents
Definitions
Condensed Consolidated Balance Sheets as of June 30, 2022 and December 31, 2022
Condensed Consolidated Statements of Operations for the three and six months ended June 30, 2022 and 2021
Condensed Consolidated Statements of Cash Flows for the six months ended June 30, 2022 and 2021
Funds from Operations (FFO) and Adjusted Funds from Operations (AFFO) for the three and six months ended June 30, 2022 and 2021
NOI Reconciliations – three and six months ended June 30, 2022 and 2021
Same Property NOI Reconciliation
EBITDA Reconciliations – three and six months ended June 30, 2022 and 2021
Same Property Revenues
Same Property Statistics – Retail and Flex Properties
Weighted Average Lease Term
Weighted Average Mortgage Payable Maturity
Weighted Average Mortgage Payable Interest Rate
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, loss on impairment, impairment of assets held for sale and loss on extinguishment of debt.
• 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, net amortization of above and below market leases, loss on impairment, impairment of assets held for sale, loss on extinguishment of debt, and other income. 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-Q for the three and six months ended June 30, 2022 and 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, 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 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
Condensed Consolidated Balance Sheets
| | | | | | | | |
|---|---|---|---|---|---|---|---|
| | **** | | June 30, 2022 | | | December 31, 2021 | **** |
| | | (Unaudited) | **** | | | ||
| ASSETS | | | | ||||
| Investment properties, net | | $ | 78,059,345 | | $ | 69,407,915 | |
| Cash | | 2,480,925 | | 4,370,405 | | ||
| Restricted cash | | | 3,297,038 | | | 3,013,572 | |
| Rent and other receivables, net of allowance of $18,219 and $13,010, as of June 30, 2022 and 2021, respectively | | 284,056 | | 466,141 | | ||
| Assets held for sale | | | 9,897,045 | | | 9,846,208 | |
| Unbilled rent | | 930,697 | | 872,322 | | ||
| Intangible assets, net | | 4,424,149 | | 4,200,392 | | ||
| Other assets | | 570,038 | | 370,133 | | ||
| Total Assets | | $ | 99,943,293 | | $ | 92,547,088 | |
| | | | | | | | |
| LIABILITIES | | | | | | ||
| Accounts payable and accrued liabilities | | $ | 1,954,385 | | $ | 1,307,257 | |
| Intangible liabilities, net | | 2,459,960 | | 1,880,612 | | ||
| Mortgages payable, net | | | 61,811,192 | | | 54,517,822 | |
| Mortgages payable, net, associated with assets held for sale | | | 7,615,368 | | | 7,615,368 | |
| Mandatorily redeemable preferred stock, net | | 4,336,667 | | 4,227,640 | | ||
| Total Liabilities | | $ | 78,177,572 | | $ | 69,548,699 | |
| | | | | | | | |
| EQUITY | | | | ||||
| Common stock, 17,439,947 and 16,052,617 shares issued and outstanding at June 30, 2022 and December 31, 2021, respectively) | | $ | 174,399 | | 160,524 | | |
| Additional paid-in capital | | 51,116,997 | | 49,645,428 | | ||
| Offering costs | | (3,350,946) | | (3,350,946) | | ||
| Accumulated deficit | | (27,650,766) | | (24,981,346) | | ||
| Total Stockholders' Equity | | 20,289,684 | | 21,473,660 | | ||
| Noncontrolling interests - Hampton Inn Property | | — | | — | | ||
| Noncontrolling interests - Hanover Square Property | | 137,156 | | 146,603 | | ||
| Noncontrolling interests - Parkway Property | | | 474,854 | | | 500,209 | |
| Noncontrolling interests - Operating Partnership | | 864,027 | | 877,917 | | ||
| Total Equity | | $ | 21,765,721 | | $ | 22,998,389 | |
| Total Liabilities and Equity | | $ | 99,943,293 | | $ | 92,547,088 | |
See notes to condensed consolidated financial statements
Medalist Diversified REIT, Inc. and Subsidiaries
Condensed Consolidated Statements of Operations
(Unaudited)
| | | | | | | | | | | | | | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| | | Three Months Ended | | Six Months Ended | | ||||||||
| | | June 30, | | June 30, | | ||||||||
| | **** | 2022 | **** | 2021 | **** | 2022 | **** | 2021 | **** | ||||
| | | | | | | | | | | | | | |
| REVENUE | | | | | | | |||||||
| Retail center property revenues | | $ | 1,623,207 | | $ | 1,361,349 | | $ | 3,148,292 | | $ | 2,554,990 | |
| Flex center property revenues | | | 609,843 | | | 183,594 | | | 1,223,233 | | | 366,421 | |
| Hotel property room revenues | | 356,076 | | 1,421,394 | | 1,118,276 | | 2,708,142 | | ||||
| Hotel property other revenues | | 6,775 | | 11,924 | | 10,064 | | 20,561 | | ||||
| Total Revenue | | $ | 2,595,901 | | $ | 2,978,261 | | $ | 5,499,865 | | $ | 5,650,114 | |
| | | | | | | | | | | | | | |
| OPERATING EXPENSES | | | | | | ||||||||
| Retail center property operating expenses | | $ | 442,047 | | $ | 353,834 | | $ | 892,172 | | $ | 681,764 | |
| Flex center property operating expenses | | | 160,670 | | | 64,716 | | | 322,051 | | | 118,804 | |
| Hotel property operating expenses | | 339,943 | | 975,189 | | 712,803 | | 1,772,584 | | ||||
| Bad debt expense | | | 163 | | | — | | | 12,946 | | | 3,196 | |
| Share based compensation expenses | | — | | — | | 233,100 | | 149,981 | | ||||
| Legal, accounting and other professional fees | | 368,546 | | 296,040 | | 828,415 | | 787,895 | | ||||
| Corporate general and administrative expenses | | 155,509 | | 117,040 | | 236,215 | | 186,177 | | ||||
| Loss on impairment | | — | | — | | 36,670 | | — | | ||||
| Impairment of assets held for sale | | | — | | | — | | | 175,671 | | | — | |
| Loss on extinguishment of debt | | | 169,675 | | | — | | | 169,675 | | | — | |
| Depreciation and amortization | | 1,122,455 | | | 770,377 | | 2,277,652 | | | 1,423,610 | | ||
| Total Operating Expenses | | **** | 2,759,008 | | **** | 2,577,196 | | **** | 5,897,370 | | **** | 5,124,011 | |
| Operating (loss) income | | **** | (163,107) | | **** | 401,065 | | **** | (397,505) | | **** | 526,103 | |
| Interest expense | | 874,156 | | 1,224,296 | | 1,715,580 | | 3,658,428 | | ||||
| Net Loss from Operations | | **** | (1,037,263) | | **** | (823,231) | | **** | (2,113,085) | | **** | (3,132,325) | |
| Other income | | 29,324 | | 182,407 | | 124,763 | | 183,759 | | ||||
| Net Loss | | **** | (1,007,939) | | **** | (640,824) | | **** | (1,988,322) | | **** | (2,948,566) | |
| Less: Net income attributable to Hampton Inn Property noncontrolling interests | | — | | 43,493 | | — | | 18,255 | | ||||
| Less: Net income (loss) attributable to Hanover Square Property noncontrolling interests | | | 7,272 | | | (2,787) | | | 6,953 | | | (9,807) | |
| Less: Net income attributable to Parkway Property noncontrolling interests | | 4,052 | | — | | 14,245 | | — | | ||||
| Less: Net (loss) income attributable to Operating Partnership noncontrolling interests | | (4,376) | | 1,433 | | (5,349) | | 3,473 | | ||||
| Net Loss Attributable to Medalist Common Shareholders | | $ | (1,014,887) | | $ | (682,963) | | $ | (2,004,171) | | $ | (2,960,487) | |
| | | | | | | | | | | | | | |
| Loss per share from operations - basic and diluted | | $ | (0.06) | | $ | (0.05) | | $ | (0.12) | | $ | (0.29) | |
| | | | | | | | | | | | | | |
| Weighted-average number of shares - basic and diluted | | 17,439,947 | | 14,410,149 | | 16,738,510 | | 10,133,257 | | ||||
| | | | | | | | | | | | | | |
| Dividends paid per common share | | $ | 0.02 | | $ | — | | $ | 0.04 | | $ | — | |
See notes to condensed consolidated financial statements
Medalist Diversified REIT, Inc. and Subsidiaries
Condensed Consolidated Statements of Cash Flows
(Unaudited)
| | | | | | | |
|---|---|---|---|---|---|---|
| | | Six months ended June 30, | ||||
| | **** | 2022 | **** | 2021 | ||
| CASH FLOWS FROM OPERATING ACTIVITIES | | | | | | |
| | | | | | | |
| Net Loss | | $ | (1,988,322) | | $ | (2,948,566) |
| | | | | | | |
| Adjustments to reconcile consolidated net loss to net cash flows from operating activities | | | | | ||
| Depreciation | | 1,564,144 | | 1,003,534 | ||
| Amortization | | 713,508 | | 420,076 | ||
| Loan cost amortization | | 53,617 | | 60,588 | ||
| Mandatorily redeemable preferred stock issuance cost and discount amortization | | | 109,027 | | | 99,979 |
| Convertible debenture issuance cost, discount and beneficial conversion feature amortization | | | — | | | 1,718,487 |
| Above (below) market lease amortization, net | | (64,251) | | 3,618 | ||
| Bad debt expense | | | 12,946 | | | 3,196 |
| Note payable forgiveness | | | — | | | (176,300) |
| Share-based compensation | | | 233,100 | | | 149,981 |
| Impairment of assets held for sale | | 175,671 | | — | ||
| Loss on impairment | | | 36,670 | | | — |
| Loss on extinguishment of debt | | | 169,675 | | | — |
| | | | | | | |
| Changes in assets and liabilities | | | | | ||
| Rent and other receivables, net | | 169,139 | | 67,645 | ||
| Unbilled rent | | (58,375) | | (143,283) | ||
| Other assets | | (199,905) | | 87,897 | ||
| Accounts payable and accrued liabilities | | 647,128 | | 647,341 | ||
| Net cash flows from operating activities | | 1,573,772 | | 994,193 | ||
| | | | | | | |
| CASH FLOWS FROM INVESTING ACTIVITIES | | | | | ||
| | | | | | | |
| Investment property acquisitions | | (10,279,714) | | (10,205,385) | ||
| Capital expenditures | | | (492,704) | | | (72,852) |
| Net cash flows from investing activities | | (10,772,418) | | (10,278,237) | ||
| | | | | | | |
| CASH FLOWS FROM FINANCING ACTIVITIES | | | ||||
| | | | | | | |
| Dividends and distributions paid | | (729,790) | | (12,000) | ||
| Repayment of line of credit, short term | | | — | | | (325,000) |
| Proceeds from mortgages payable, net | | | 18,477,304 | | | 6,421,870 |
| Repayment of mortgages payable | | | (11,407,226) | | | (266,270) |
| Proceeds from sale of convertible debentures, net of capitalized offering costs | | — | | 1,305,000 | ||
| Proceeds from sales of common stock, net of capitalized offering costs | | | 1,538,887 | | | 10,853,605 |
| Repurchases of common stock, including costs and fees | | (286,543) | | — | ||
| Net cash flows from financing activities | | 7,592,632 | | 17,977,205 | ||
| | | | | | | |
| INCREASE IN CASH, CASH EQUIVALENTS AND RESTRICTED CASH | | (1,606,014) | | 8,693,161 | ||
| CASH, CASH EQUIVALENTS AND RESTRICTED CASH, beginning of period | | 7,383,977 | | 5,096,928 | ||
| CASH, CASH EQUIVALENTS AND RESTRICTED CASH, end of period | | $ | 5,777,963 | | $ | 13,790,089 |
| | | | | | | |
| CASH AND CASH EQUIVALENTS, end of period, shown in consolidated balance sheets | | | 2,480,925 | | | 10,868,459 |
| RESTRICTED CASH including assets restricted for capital and operating reserves and tenant deposits, end of period, shown in consolidated balance sheets | | | 3,297,038 | | | 2,921,630 |
| CASH, CASH EQUIVALENTS AND RESTRICTED CASH, end of period shown in the consolidated statements of cash flows | | $ | 5,777,963 | | $ | 13,790,089 |
| | | | | | | |
| Supplemental Disclosures and Non-Cash Activities: | | | | | ||
| | | | | | | |
| Other cash transactions: | | | ||||
| Interest paid | | $ | 1,515,037 | | $ | 1,779,775 |
| | | | | | | |
| 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 |
See notes to condensed consolidated financial statements
Medalist Diversified REIT
Funds from Operations and Adjusted Funds from Operations
For the Three and Six Months Ended June 30, 2022 and 2021
(Unaudited)
| | | | | | | | | | | | | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| | | Three Months Ended | | Six Months Ended | ||||||||
| | **** | June 30, | **** | June 30, | ||||||||
| | | 2022 | | 2021 | | 2022 | | 2021 | ||||
| Funds from operations | | | | | | | | | | | | |
| Net income (loss) | $ | (1,007,939) | | $ | (640,824) | | $ | (1,988,322) | | $ | (2,948,566) | |
| Depreciation of tangible real property assets | | 616,416 | | 436,661 | | 1,219,261 | | 802,387 | ||||
| Depreciation of tenant improvements | | 151,522 | | 96,483 | | 300,446 | | 170,819 | ||||
| Amortization of leasing commissions | | 24,646 | | 15,616 | | 44,437 | | 30,328 | ||||
| Amortization of intangible assets | | 329,871 | | 221,617 | | 713,508 | | 420,076 | ||||
| Loss on impairment | | - | | - | | 36,670 | | - | ||||
| Impairment of assets held for sale | | - | | - | | 175,671 | | - | ||||
| Loss on extinguishment of debt | | | 169,675 | | | - | | | 169,675 | | | - |
| Funds from operations | | $ | 284,191 | | $ | 129,553 | | $ | 671,346 | | $ | (1,524,956) |
| | | | | | | | | | | | | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| | | Three Months Ended | | Six Months Ended | ||||||||
| | **** | June 30, | **** | June 30, | ||||||||
| | | 2022 | | 2021 | | 2022 | | 2021 | ||||
| Adjusted funds from operations | | | | | | | | | | | | |
| Funds from operations | $ | 284,191 | | $ | 129,553 | | $ | 671,346 | | $ | (1,524,956) | |
| Amortization of above market leases | | 55,943 | | 59,984 | | 125,526 | | 113,597 | ||||
| Amortization of below market leases | | (94,160) | | (59,603) | | (189,777) | | (109,979) | ||||
| Straight line rent | | (43,529) | | (55,191) | | (58,450) | | (143,283) | ||||
| Capital expenditures | | | (126,644) | | | (51,202) | | | (492,703) | | (72,852) | |
| Increase in fair value of interest rate cap | | | (28,894) | | | 149 | | | (119,936) | | (11) | |
| Amortization of loan issuance costs | | | 25,499 | | | 16,398 | | | 53,617 | | 60,588 | |
| Amortization of preferred stock discount and offering costs | | | 55,104 | | | 50,530 | | | 109,027 | | 99,979 | |
| Amortization of convertible debenture discount, offering costs and beneficial conversion feature | | | — | | | 263,163 | | | — | | 1,718,487 | |
| Share-based compensation | | — | | — | | 233,100 | | 149,981 | ||||
| Bad debt expense | | 163 | | — | | 12,946 | | 3,196 | ||||
| Debt forgiveness | | | — | | | (176,300) | | | — | | (176,300) | |
| Adjusted Funds from operations (AFFO) | | $ | 127,673 | | $ | 177,481 | | $ | 344,696 | | $ | 118,447 |
NOI Reconciliation
| | | | | | | | | | | | | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| | | Three Months Ended | | Six Months Ended | ||||||||
| | **** | June 30, | **** | June 30, | ||||||||
| | | 2022 | | 2021 | | 2022 | | 2021 | ||||
| | | (unaudited) | | (unaudited) | | (unaudited) | | (unaudited) | ||||
| Net Operating Income | | | | | | | | | | | | |
| Net Loss | $ | (1,007,939) | | $ | (640,824) | | $ | (1,988,322) | | $ | (2,948,566) | |
| Plus: Preferred dividends, including amortization of capitalized issuance costs | | 155,104 | | 150,530 | | 309,027 | | 299,979 | ||||
| Plus: Legal, accounting and other professional fees | | 368,546 | | 296,040 | | 828,415 | | 787,895 | ||||
| Plus: Corporate general and administrative expenses | | | 155,509 | | | 117,040 | | | 236,215 | | | 186,177 |
| Plus: Depreciation expense | | | 792,584 | | | 548,760 | | | 1,564,144 | | | 1,003,534 |
| Plus: Amortization of intangible assets | | | 329,871 | | | 221,617 | | | 713,508 | | | 420,076 |
| Plus: Interest expense, including amortization of capitalized loan issuance costs | | | 719,052 | | | 1,073,766 | | | 1,406,553 | | | 3,358,449 |
| Plus: Share based compensation expense | | | - | | | - | | | 233,100 | | | 149,981 |
| Plus: Loss on impairment | | - | | - | | 36,670 | | - | ||||
| Plus: Impairment of assets held for sale | | | - | | | - | | | 175,671 | | | - |
| Plus: Loss on extinguishment of debt | | | 169,675 | | | - | | | 169,675 | | | - |
| Less: Other income | | | (29,324) | | | (182,407) | | | (124,763) | | | (183,759) |
| Less: Net amortization of above and below market leases | | | (38,217) | | | 381 | | | (64,251) | | | 3,618 |
| Net Operating Income - NOI | | $ | 1,614,861 | | $ | 1,584,903 | | $ | 3,495,642 | | $ | 3,077,384 |
| | | | | | | | | | | | | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| | | Three Months Ended | | Six Months Ended | ||||||||
| | **** | June 30, | **** | June 30, | ||||||||
| | | 2022 | | 2021 | | 2022 | | 2021 | ||||
| | | (unaudited) | | (unaudited) | | (unaudited) | | (unaudited) | ||||
| Components of Net Operating Income | | | | | | | | | | | | |
| Revenues: | | | | | | | | | | | | |
| Retail and flex property rental revenues (1) | | $ | 1,846,080 | | $ | 1,294,967 | | $ | 3,621,696 | | $ | 2,448,201 |
| Retail and flex property tenant reimbursement revenues | | 348,753 | | 250,357 | | 685,578 | | 476,828 | ||||
| Hotel property revenues | | | 362,851 | | | 1,433,318 | | | 1,128,340 | | | 2,728,703 |
| Total revenues | | | 2,557,684 | | | 2,978,642 | | | 5,435,614 | | | 5,653,732 |
| | | | | | | | | | | | | |
| Operating expenses: | | | | | | | | | | | | |
| Retail and flex property operating expenses | | | 602,717 | | | 418,550 | | | 1,214,223 | | | 800,568 |
| Hotel property operating expenses | | 339,943 | | 975,189 | | 712,803 | | 1,772,584 | ||||
| Bad debt expense | | | 163 | | | - | | | 12,946 | | | 3,196 |
| Total operating expenses | | | 942,823 | | | 1,393,739 | | | 1,939,972 | | | 2,576,348 |
| | | | | | | | | | | | | |
| Net Operating Income - NOI | | $ | 1,614,861 | | $ | 1,584,903 | | $ | 3,495,642 | | $ | 3,077,384 |
| (1) | Excludes amortization of above and below market leases. |
|---|
Same Property NOI Reconciliation
| | | | | | | | | | | | | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| | | Three Months Ended | | Six Months Ended | ||||||||
| | **** | June 30, | **** | June 30, | ||||||||
| | | 2022 | | 2021 | | 2022 | | 2021 | ||||
| | | (unaudited) | | (unaudited) | | (unaudited) | | (unaudited) | ||||
| All Properties | | | | | | | | | | | | |
| Same property NOI | $ | 1,083,260 | | $ | 1,274,359 | | $ | 2,493,491 | | $ | 2,699,181 | |
| NOI of acquired properties (1) | | 531,601 | | 115,699 | | 1,002,151 | | 115,699 | ||||
| NOI of disposed properties (2) | | | - | | | 194,845 | | | - | | | 262,504 |
| Total NOI (3) | | $ | 1,614,861 | | $ | 1,584,903 | | $ | 3,495,642 | | $ | 3,077,384 |
| (1) | Lancer Center, Greenbrier Business Center, Parkway and Salisbury Marketplace |
|---|---|
| (2) | Greensboro Hampton Inn |
| --- | --- |
| (3) | Excludes net amortization of above and below market leases. |
| --- | --- |
| | | | | | | | | | | | | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| | | Three Months Ended | | Six Months Ended | ||||||||
| | **** | June 30, | **** | June 30, | ||||||||
| | | 2022 | | 2021 | | 2022 | | 2021 | ||||
| | | (unaudited) | | (unaudited) | | (unaudited) | | (unaudited) | ||||
| Retail Properties | | | | | | | | | | | | |
| Same retail property NOI | $ | 925,113 | | $ | 891,619 | | $ | 1,803,973 | | $ | 1,756,792 | |
| NOI of acquired retail properties (1) | | 241,186 | | 115,699 | | 426,862 | | 115,699 | ||||
| Total retail property NOI (2) | | $ | 1,166,299 | | $ | 1,007,318 | | $ | 2,230,835 | | $ | 1,872,491 |
| (1) | Lancer Center and Salisbury Marketplace |
|---|---|
| (2) | Excludes net amortization of above and below market leases. |
| --- | --- |
| | | | | | | | | | | | | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| | | Three Months Ended | | Six Months Ended | ||||||||
| | **** | June 30, | **** | June 30, | ||||||||
| | | 2022 | | 2021 | | 2022 | | 2021 | ||||
| | | (unaudited) | | (unaudited) | | (unaudited) | | (unaudited) | ||||
| Flex Properties | | | | | | | | | | | | |
| Same flex property NOI | $ | 135,239 | | $ | 119,456 | | $ | 273,981 | | $ | 248,774 | |
| NOI of acquired flex properties (1) | | 290,415 | | - | | 575,289 | | - | ||||
| Total flex property NOI (2) | | $ | 425,654 | | $ | 119,456 | | $ | 849,270 | | $ | 248,774 |
| (1) | Greenbrier Business Center and Parkway |
|---|---|
| (2) | Excludes net amortization of above and below market leases. |
| --- | --- |
| | | | | | | | | | | | | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| | | Three Months Ended | | Six Months Ended | ||||||||
| | **** | June 30, | **** | June 30, | ||||||||
| | | 2022 | | 2021 | | 2022 | | 2021 | ||||
| | | (unaudited) | | (unaudited) | | (unaudited) | | (unaudited) | ||||
| Hotel Properties | | | | | | | | | | | | |
| Same hotel property NOI | $ | 22,908 | | $ | 263,284 | | $ | 415,537 | | $ | 693,615 | |
| NOI of disposed hotel properties (1) | | | - | | | 194,845 | | | - | | | 262,504 |
| Total hotel property NOI | | $ | 22,908 | | $ | 458,129 | | $ | 415,537 | | $ | 956,119 |
| (1) | Greensboro Hampton Inn |
|---|
| | | | | | | | | | | | | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| | | Three Months Ended | | Six Months Ended |
| | **** | June 30, | **** | June 30, | ||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| | | 2022 | | 2021 | | 2022 | | 2021 | ||||
| | | (unaudited) | | (unaudited) | | (unaudited) | | (unaudited) | ||||
| Same Property Retail & Flex NOI Reconciliation | | | | | | | | | | | | |
| Same property retail & flex NOI | $ | 1,060,352 | | $ | 1,011,075 | | $ | 2,077,954 | | $ | 2,005,566 | |
| NOI of newly acquired retail & flex properties (1) | | 531,601 | | 115,699 | | 1,002,151 | | 115,699 | ||||
| Same hotel property NOI | | 22,908 | | 263,284 | | 415,537 | | 693,615 | ||||
| NOI of recently sold properties (2) | | | - | | | 194,845 | | | - | | | 262,504 |
| Total NOI (3) | | $ | 1,614,861 | | $ | 1,584,903 | | $ | 3,495,642 | | $ | 3,077,384 |
| (1) | Lancer Center, Greenbrier Business Center, Parkway and Salisbury Marketplace |
|---|---|
| (2) | Greensboro Hampton Inn |
| --- | --- |
| (3) | Excludes net amortization of above and below market leases. |
| --- | --- |
EBITDA Reconciliation
| | | | | | | | | | | | | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| | | Three Months Ended | | Six Months Ended | ||||||||
| | **** | June 30, | **** | June 30, | ||||||||
| | | 2022 | | 2021 | | 2022 | | 2021 | ||||
| | | (unaudited) | | (unaudited) | | (unaudited) | | (unaudited) | ||||
| EBITDA | | | | | | | | | | | | |
| Net Loss | $ | (1,007,939) | | $ | (640,824) | | $ | (1,988,322) | | $ | (2,948,566) | |
| Plus: Preferred dividends, including amortization of capitalized issuance costs | | 155,104 | | 150,530 | | 309,027 | | 299,979 | ||||
| Plus: Interest expense, including amortization of capitalized loan issuance costs | | 719,052 | | 1,073,766 | | 1,406,553 | | 3,358,449 | ||||
| Plus: Depreciation expense | | 792,584 | | 548,760 | | 1,564,144 | | 1,003,534 | ||||
| Plus: Amortization of intangible assets | | | 329,871 | | | 221,617 | | | 713,508 | | | 420,076 |
| Less: Net amortization of above and below market leases | | | (38,217) | | | 381 | | | (64,251) | | | 3,618 |
| Plus: Loss on impairment | | | - | | | - | | | 36,670 | | | - |
| Plus: Impairment of assets held for sale | | | - | | | - | | | 175,671 | | | - |
| Plus: Loss on extinguishment of debt | | | 169,675 | | | - | | | 169,675 | | | - |
| EBITDA | | $ | 1,120,130 | | $ | 1,354,230 | | $ | 2,322,675 | | $ | 2,137,090 |
Same Property Revenues
| | | | | | | | | | | | |
|---|---|---|---|---|---|---|---|---|---|---|---|
| | | Six Months Ended | | | |||||||
| | **** | June 30, | **** | | |||||||
| | | 2022 | | 2021 | | | | | |||
| | | (unaudited) | | (unaudited) | | Change () | | Change (%) | |||
| All Properties | | | | | | | | | | | |
| Same property revenues | $ | 4,012,696 | | $ | 4,167,331 | | | | (3.7)% | ||
| Revenues of acquired properties (1) | | 1,487,169 | | 1,482,783 | | | | ||||
| Total revenues (3) | | $ | 5,499,865 | | $ | 5,650,114 | | | | (2.7)% |
All values are in US Dollars.
| (1) | Lancer Center, Greenbrier Business Center, Parkway and Salisbury Marketplace |
|---|---|
| (2) | Greensboro Hampton Inn |
| --- | --- |
| (3) | Includes net amortization of above and below market leases. |
| --- | --- |
| | | | | | | | | | | | |
|---|---|---|---|---|---|---|---|---|---|---|---|
| | | Six Months Ended | | | |||||||
| | **** | June 30, | **** | | |||||||
| | | 2022 | | 2021 | | | | | |||
| | | (unaudited) | | (unaudited) | | Change () | | Change (%) | |||
| Retail Properties | | | | | | | | | | | |
| Same retail property revenues | $ | 2,488,401 | | $ | 2,400,160 | | | | 3.7% | ||
| Revenues of acquired retail properties (1) | | 659,891 | | 154,830 | | | | ||||
| Total retail property revenues (2) | | $ | 3,148,292 | | $ | 2,554,990 | | | | 23.2% |
All values are in US Dollars.
| (1) | Lancer Center and Salisbury Marketplace |
|---|---|
| (2) | Includes net amortization of above and below market leases. |
| --- | --- |
| | | | | | | | | | | | |
|---|---|---|---|---|---|---|---|---|---|---|---|
| | | Six Months Ended | | | |||||||
| | **** | June 30, | **** | | |||||||
| | | 2022 | | 2021 | | | | | |||
| | | (unaudited) | | (unaudited) | | Change () | | Change (%) | |||
| Flex Properties | | | | | | | | | | | |
| Same flex property revenues | $ | 395,955 | | $ | 366,421 | | | | 8.1% | ||
| Revenues of acquired flex properties (1) | | 827,278 | | - | | | | ||||
| Total flex property revenues (2) | | $ | 1,223,233 | | $ | 366,421 | | | | 233.8% |
All values are in US Dollars.
| (1) | Greenbrier Business Center and Parkway | ||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|
| (2) | Includes net amortization of above and below market leases. | ||||||||||
| --- | --- | ||||||||||
| | | | | | | | | | | | |
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
| | | Six Months Ended | | | |||||||
| | **** | June 30, | **** | | |||||||
| | | 2022 | | 2021 | | | | | |||
| | | (unaudited) | | (unaudited) | | Change () | | Change (%) | |||
| Hotel Properties | | | | | | | | | | | |
| Same hotel property revenues | $ | 1,128,340 | | $ | 1,400,750 | | | | (19.4)% | ||
| Revenues of disposed hotel properties (1) | | | - | | | 1,327,953 | | | | | |
| Total hotel property revenues | | $ | 1,128,340 | | $ | 2,728,703 | | | | (58.6)% |
All values are in US Dollars.
| (1) | Greensboro Hampton Inn |
|---|
Same Property Statistics – Retail and Flex Properties
Total Retail and Flex Properties
| | | | | | | | | | | | | | | | | | | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| | **** | Number of Properties | **** | Total Square Feet | **** | Percent Leased | ||||||||||||
| | | As of June 30, | | As of June 30, | | As of June 30, | ||||||||||||
| | | 2022 | | 2021 | | 2022 | | 2021 | | 2022 | | 2021 | ||||||
| Retail | | 5 | | | 4 | | | 633,013 | | | 553,281 | | | 97.3% | | | 94.6% | |
| Flex | | | 3 | | | 1 | | | 218,269 | | | 64,880 | | | 93.9% | | | 93.8% |
| Total | | | 8 | | | 5 | | | 851,282 | | | 618,161 | | | 96.4% | | | 94.5% |
Retail and Flex - Same Properties
| | | | | | | | | | | | | | | | | | | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| | **** | Number of Properties | **** | Total Square Feet | **** | Percent Leased | ||||||||||||
| | | As of June 30, | | As of June 30, | | As of June 30, | ||||||||||||
| | | 2022 | | 2021 | | 2022 | | 2021 | | 2022 | | 2021 | ||||||
| Retail | | 4 | | | 4 | | | 553,281 | | | 553,281 | | | 98.3% | | | 94.6% | |
| Flex | | | 1 | | | 1 | | | 64,880 | | | 64,880 | | | 100.0% | | | 93.8% |
| Total | | | 5 | | | 5 | | | 618,161 | | | 618,161 | | | 98.5% | | | 94.5% |
Weighted Average Lease Term
| | | | |
|---|---|---|---|
| Retail Properties | **** | | |
| Ashley Plaza | | | 6.08 |
| Franklin Square | | | 4.97 |
| Hanover Square, LLC | | 3.99 | |
| Lancer Center | | | 3.88 |
| Salisbury Marketplace | | | 5.92 |
| Retail Property Average | | | 4.95 |
| | | | |
| Flex Properties | | | |
| Brookfield | | | 3.20 |
| Greenbrier Business Center | | | 2.08 |
| Parkway | | | 1.65 |
| Flex Property Average | | | 2.29 |
| | | | |
| Retail and Flex Property Average | | | 4.27 |
Weighted Average Debt Data
| | | | | | | | | | |
|---|---|---|---|---|---|---|---|---|---|
| Weighted Average Mortgage Maturity (Years) | **** | | | | | | | | 5.89 |
| | | | | | | | | | |
| Weighted Average Mortgage Payable Interest Rate | | | | | | | | | 4.4% |