Medalist Diversified REIT, Inc. reported its financial results for the third quarter and the nine months ended September 30, 2024, highlighting significant changes in revenue, profitability, and strategic developments compared to the previous fiscal period.

For Q3 2024, total revenue decreased to $2.34 million from $2.59 million in Q3 2023, primarily due to a reduction in retail center property revenues, which fell by $308,292. The sale of the Hanover Square Shopping Center on March 13, 2024, contributed to this decline, as it generated $327,348 in revenue during the same period in 2023. However, revenues from flex center properties increased by $18,508, and single-tenant net lease (STNL) properties saw a notable rise of $37,969, bolstered by the newly acquired Citibank Property.

Operating expenses for Q3 2024 were significantly reduced to $2.03 million from $3.66 million in Q3 2023, leading to an operating income of $303,272, a substantial improvement from an operating loss of $1.07 million in the prior year. This increase in operating income was attributed to decreased management restructuring expenses and lower depreciation and amortization costs.

Despite the operational improvements, the company reported a net loss of $517,949 for Q3 2024, an improvement from a net loss of $1.95 million in Q3 2023. The net loss attributable to common stockholders also decreased to $526,996 from $1.95 million year-over-year. For the nine months ended September 30, 2024, the company achieved net income of $916,278, a significant turnaround from a net loss of $4.04 million in the same period in 2023.

Strategically, Medalist completed several key transactions, including the acquisition of a 16% interest in the Hanover Square Outparcel for $98,411 and the Citibank Property for $2.4 million, which was financed through the issuance of Operating Partnership Units. The company also sold the Hanover Square Shopping Center for $13 million, resulting in a gain of $2.82 million.

As of September 30, 2024, total stockholders' equity increased to $16.47 million from $13.73 million at the end of 2023. The company reported cash and cash equivalents of $4.97 million, up from $3.81 million at the end of the previous fiscal year. Additionally, the company has announced plans to redeem 140,000 shares of its mandatorily redeemable preferred stock on November 25, 2024, using proceeds from a recent private placement and cash on hand.

Overall, Medalist Diversified REIT's financial performance reflects a strategic shift towards internal management and a focus on enhancing operational efficiency, despite challenges in revenue generation from certain property segments.