08/05/2026 | Press release | Distributed by Public on 08/05/2026 06:31
MEDALIST DIVERSIFIED, INC.
UNAUDITED PRO FORMA CONSOLIDATED FINANCIAL STATEMENTS
Unaudited Pro Forma Consolidated Balance Sheet as of March 31, 2026
and
Unaudited Pro Forma Consolidated Statements of Operations for the
three months ended March 31, 2026 and the year ended December 31, 2025
Summary of Unaudited Pro Forma Consolidated Financial Statements
The following pro forma financial information is presented in accordance with Article 11 of Regulation S-X promulgated the United States Securities and Exchange Commission (the "SEC"). In accordance with Article 11 of Regulation S-X, certain unaudited financial information for the properties disposed of since December 31, 2025 that are not individually significant have also been presented.
On October 23, 2025, Medalist Diversified, Inc. (the "Company"), through its operating partnership, Medalist Diversified Holdings, LP (the "Operating Partnership"), and the Operating Partnership's wholly owned subsidiaries, completed the disposition of that certain tract of real property containing a building at 2106 Statesville Blvd., Salisbury, North Carolina (the "Salisbury Property") to an unaffiliated purchaser. The total sales price received for the Salisbury Property was $9,930,000. The net cash to the Company was approximately $4.45 million after payment of closing costs and repayment of approximately $5.145 million of debt.
On December 30, 2025, the Company, through the Operating Partnership and the Operating Partnership's wholly owned subsidiaries, completed the disposition of those certain tracts of real property at 2545 Scottsville Road, Bowling Green, Kentucky (the "Buffalo Wild Wings Property") and 376 Dan Tibbs Road NW, Huntsville, Alabama (the "United Rentals Property"), each containing a single building, to an unaffiliated purchaser. The total sales price received for the two properties was $5,299,500.
On February 13, 2026, the Company, through the Operating Partnership and the Operating Partnership's wholly owned subsidiaries, completed the disposition of that certain tract of real property containing three buildings at 1244 Executive Boulevard, Chesapeake, Virginia (the "Greenbrier Property") to an unaffiliated purchaser. The total sales price received for the Property was $11,000,000. The Company used $7,000,000 of the proceeds from the sale of the Greenbrier Property to repay a portion of the Wells Fargo Mortgage Facility that was cross collateralized by the Greenbrier Property.
On February 27, 2026, the Company through the Operating Partnership and the Operating Partnership's wholly owned subsidiaries, and PMI Parkway, LLC ("PMI"), a Delaware limited liability company not affiliated with the Company completed the disposition of that certain tract of real property containing two buildings at 2697 International Parkway, Virginia Beach, Virginia (the "Parkway Property") to an unaffiliated purchaser. The total sales price received for the Property was $7,825,000. The Company and PMI used $4,735,614 of the proceeds from the sale of the Parkway Property to fully repay the mortgage loan collateralized by the Parkway Property.
On March 30, 2026, the Company, through the Operating Partnership and the Operating Partnership's wholly owned subsidiaries, completed the disposition of that certain tract of real property containing eight buildings at 3940 East Franklin Boulevard in Gastonia, North Carolina (the "Franklin Square Property") to an unaffiliated purchaser. The total sales price received for the Franklin Square Property was $24,100,000. The Company used $12,954,175 of the proceeds from the sale of the Franklin Square Property to fully repay the mortgage loan collateralized by the Franklin Square Property.
On June 24, 2026, the Company, through the Operating Partnership and the Operating Partnership's wholly owned subsidiaries, completed the disposition of that certain tract of real property containing a single building at 3535 N. Central Avenue, Chicago, Illinois 60634 (the "Citibank Property"). The total sales price received for the Property was $2,150,000.
On July 31, 2026, the Company, through the Operating Partnership and the Operating Partnership's wholly owned subsidiaries, completed the disposition of that certain tract of real property containing three buildings at 201 N. Berkeley Boulevard, Gastonia, North Carolina (the "Ashley Plaza Property") to an unaffiliated purchaser. The total sales price received for the Ashley Plaza Property was $16,275,000. The Company used $10,113,493 of the proceeds from the sale of the Ashley Plaza Property to defease and retire its obligations under the mortgage loan collateralized by the Ashley Plaza Property.
Collectively, the seven disposition transactions are referenced herein as the "Dispositions."
On June 20, 2026, as a result of the sale of a majority of the class 1 beneficial interests in MDRR XXV DST 1 ("XXV DST 1"), the owner of that certain tract of real property containing a single building at 312 East Nine Mile Road, Pensacola, Florida 32514 (the "Tesla Pensacola Property"), the Company deconsolidated the XXV DST 1 entity and removed all assets and liabilities held by XXV DST 1 from its condensed consolidated financial statements (the "Deconsolidation"). The Company has received approximately $6,777,444 in net cash proceeds from the sale of 84.72% of the Class 1 beneficial interests in XXV DST 1.
The following unaudited pro forma consolidated financial statements and accompanying notes should be read in conjunction with the condensed consolidated balance sheet of Medalist Diversified, Inc. and Subsidiaries as of March 31, 2026 (unaudited), the condensed consolidated statement of operations of Medalist Diversified, Inc. and Subsidiaries for the three months ended March 31, 2026 (unaudited), and the audited consolidated statement of operations of Medalist Diversified, Inc. and Subsidiaries for the year ended December 31, 2025.
The following unaudited pro forma consolidated balance sheet as of March 31, 2026 has been prepared to give effect to the sale of the Citibank and the Ashley Plaza Properties, and the Deconsolidation of the XXV DST 1 entity as if these transactions had occurred on March 31, 2026.
The following unaudited pro forma consolidated statement of operations for the three months ended March 31, 2026 has been prepared to give effect to the sale of the Parkway, Greenbrier, Franklin Square, Citibank, and Ashley Plaza Properties, and the Deconsolidation of the XXV DST 1 entity as if these transactions had occurred on January 1, 2026.
The following unaudited pro forma consolidated statement of operations for year ended December 31, 2025 has been prepared to give effect to the to the sale of the Salisbury, Buffalo Wild Wings, United Rentals, Parkway, Greenbrier, Franklin Square, Citibank, and Ashley Plaza Properties, and the Deconsolidation of the XXV DST 1 entity, as if these transactions had occurred on January 1, 2025.
The Company has based the unaudited pro forma adjustments on available information and assumptions that it believes are reasonable. These unaudited pro forma consolidated financial statements are prepared for informational purposes only and are not necessarily indicative of future results or of actual results that would have been achieved had the Dispositions and the Deconsolidation had been consummated as of the date indicated.
Medalist Diversified, Inc.
Unaudited Pro Forma Consolidated Balance Sheet
As of March 31, 2026
|
Pro Forma Adjustments - Dispositions (b) |
||||||||||||||||||
|
Tesla Property - |
||||||||||||||||||
|
Sales of DST |
||||||||||||||||||
|
Interests and |
||||||||||||||||||
|
Historical |
Citibank |
Ashley Plaza |
Deconsolidation |
Pro Forma |
||||||||||||||
|
March 31, 2026 (a) |
Property |
Property |
(c) |
March 31, 2026 |
||||||||||||||
|
(Unaudited) |
(Unaudited) |
(Unaudited) |
(Unaudited) |
(Unaudited) |
||||||||||||||
|
ASSETS |
||||||||||||||||||
|
Investment properties, net |
$ |
25,448,825 |
$ |
- |
$ |
- |
$ |
- |
$ |
25,448,825 |
||||||||
|
Cash and cash equivalents |
8,604,528 |
2,077,057 |
(i) |
5,745,400 |
(i) |
6,777,444 |
(i) |
21,127,372 |
||||||||||
|
Restricted cash |
830,737 |
- |
- |
- |
830,737 |
|||||||||||||
|
Investment in marketable securities |
12,416,668 |
- |
- |
- |
12,416,668 |
|||||||||||||
|
Rent and other receivables, net of allowance |
323,688 |
- |
- |
- |
323,688 |
|||||||||||||
|
Assets held for sale |
15,375,555 |
(2,158,091) |
(ii) |
(11,736,710) |
(ii) |
(14,978,188) |
(ii) |
(11,339,343) |
||||||||||
|
Equity investment |
- |
- |
- |
1,312,047 |
(iii) |
1,312,047 |
||||||||||||
|
Unbilled rent |
619,952 |
(39,523) |
(iii) |
(231,733) |
(iii) |
(152,765) |
(iv) |
235,454 |
||||||||||
|
Intangible lease assets, net |
1,174,129 |
- |
- |
- |
1,174,129 |
|||||||||||||
|
Other intangible assets |
423,352 |
- |
- |
- |
423,352 |
|||||||||||||
|
Deferred tax assets, net |
2,550,596 |
- |
- |
- |
2,550,596 |
|||||||||||||
|
Other assets |
1,155,757 |
- |
(101,830) |
(iv) |
- |
1,053,927 |
||||||||||||
|
Total Assets |
$ |
68,923,787 |
$ |
(120,557) |
$ |
(6,324,873) |
$ |
(7,041,462) |
$ |
55,557,452 |
||||||||
|
LIABILITIES |
||||||||||||||||||
|
Accounts payable and accrued liabilities |
$ |
1,124,848 |
$ |
- |
$ |
- |
$ |
- |
$ |
1,124,848 |
||||||||
|
Liabilities associated with assets held for sale |
7,961,567 |
(71,091) |
(v) |
- |
(7,505,754) |
(v) |
455,813 |
|||||||||||
|
Intangible lease liabilities, net |
754,472 |
- |
(333,621) |
(v) |
- |
420,851 |
||||||||||||
|
Mortgages payable, net |
19,196,937 |
- |
(10,038,611) |
(v) |
- |
9,158,326 |
||||||||||||
|
Total Liabilities |
$ |
29,037,824 |
$ |
(71,091) |
$ |
(10,372,232) |
$ |
(7,505,754) |
$ |
11,159,838 |
||||||||
|
EQUITY |
||||||||||||||||||
|
Common stock |
$ |
14,285 |
$ |
- |
$ |
- |
$ |
- |
$ |
14,285 |
||||||||
|
Additional paid-in capital |
55,940,486 |
- |
- |
- |
55,940,486 |
|||||||||||||
|
Offering costs |
(3,782,521) |
- |
- |
- |
(3,782,521) |
|||||||||||||
|
Accumulated deficit |
(29,869,847) |
(49,466) |
(vi) |
4,047,359 |
(vi) |
464,292 |
(vi) |
(25,358,196) |
||||||||||
|
Total Stockholders' Equity |
22,302,403 |
(49,466) |
4,047,359 |
464,292 |
26,814,054 |
|||||||||||||
|
Noncontrolling interests - Parkway Property |
8,490 |
- |
- |
- |
8,490 |
|||||||||||||
|
Noncontrolling interests - DST Entities |
2,136,562 |
- |
- |
- |
2,136,562 |
|||||||||||||
|
Noncontrolling interests - Operating Partnership |
15,438,508 |
- |
- |
- |
15,438,508 |
|||||||||||||
|
Total Equity |
$ |
39,885,963 |
$ |
(49,466) |
$ |
4,047,359 |
$ |
464,292 |
$ |
44,397,614 |
||||||||
|
Total Liabilities and Equity |
$ |
68,923,787 |
$ |
(120,557) |
$ |
(6,324,873) |
$ |
(7,041,462) |
$ |
55,557,452 |
||||||||
See notes to unaudited pro forma consolidated financial statements
MEDALIST DIVERSIFIED, INC.
UNAUDITED PRO FORMA CONSOLIDATED BALANCE SHEET
AS OF MARCH 31, 2026
Notes to unaudited pro forma consolidated balance sheet as of March 31, 2026
| (a) | Historical financial information was derived from the condensed consolidated balance sheet of the Company as of March 31, 2026 (unaudited). |
| (b) | Adjustments to give effect to the sale of the Citibank and Ashley Plaza Properties as if each disposition had occurred on March 31, 2026. |
| (i) | Represents net cash proceeds to the Company from the sale of the respective properties after payment of closing costs and repayment of debt, if applicable. |
| (ii) | Represents book value of the asset group disposed of at closing, including land, site improvements, building and tenant improvements, and lease intangibles, including leasing commissions, leases in place, above market leases, and legal and marketing costs associated with replacing existing leases. |
| (iii) | Represents the write-off of unbilled rent resulting from recording rent revenue on a straight line basis. |
| (iv) | Represents book value of the roof warranty that was part of the asset group transferred to the purchaser at closing. |
| (ii) | Represents the mortgages held for sale and intangible liabilities held for sale that were retired at closing. For the Ashley Plaza Property, mortgages and intangible liabilities had not been reclassified to held for sale status as of March 31, 2026. |
| (v) | Represents the gain on sale recorded at closing, offset by loss on extinguishment of debt related to the unamortized loan issuance costs related to the debt that was repaid at closing. |
​
| (c) | Represents the impact of the deconsolidation of the XXV DST 1 entity resulting from the sale of a majority of the Class 1 beneficial ownership interests in the XXV DST 1 entity as if the deconsolidation had occurred on March 31, 2026. |
| (i) | The Company has received approximately $6,777,444 in net cash proceeds from the sale of 84.72% of the Class 1 beneficial interests in XXV DST 1. |
| (ii) | Represents the book value of the assets, including land, site improvements, building and tenant improvements, and lease intangibles, including leasing commissions, leases in place, above market leases, and legal and marketing costs associated with replacing existing leases, removed from the Company's condensed consolidated balance sheet as a result of the deconsolidation of the XXV DST 1 entity. |
| (iii) | Represents the fair market value of the Company's remaining 15.28% beneficial ownership in the XXV DST 1 entity. |
| (iv) | Represents the amount of unbilled rent resulting from recording rent revenue on a straight line basis removed from the Company's condensed consolidated balance sheet as a result of the deconsolidation of the XXV DST 1 entity. |
| (v) | Represents the mortgages held for sale and intangible liabilities held for sale removed from the Company's condensed consolidated balance sheet as a result of the deconsolidation of the XXV DST 1 entity. |
| (vi) | Represents the revenues recognized as a result of the deconsolidation. |
Medalist Diversified, Inc.
Unaudited Pro Forma Consolidated Statement of Operations
For the three months ended March 31, 2026
|
Pro Forma Adjustments - Dispositions (b) |
|||||||||||||||||||||||||||||
|
Historical |
Tesla Property |
||||||||||||||||||||||||||||
|
Three Months |
Sales of DST |
Pro Forma |
|||||||||||||||||||||||||||
|
Ended |
Interests and |
Three Months |
|||||||||||||||||||||||||||
|
March 31, 2026 |
Parkway |
Greenbrier |
Franklin Square |
Citibank |
Ashley Plaza |
Deconsolidation |
Ended |
||||||||||||||||||||||
|
(a) |
Property |
Property |
Property |
Property |
Property |
(c) |
March 31, 2026 |
||||||||||||||||||||||
|
(unaudited) |
(unaudited) |
(unaudited) |
(unaudited) |
(unaudited) |
(unaudited) |
(unaudited) |
(unaudited) |
||||||||||||||||||||||
|
REVENUE |
|||||||||||||||||||||||||||||
|
Investment property revenues |
$ |
2,159,265 |
$ |
(140,928) |
(i) |
$ |
(140,091) |
(i) |
$ |
(635,357) |
(i) |
$ |
(37,700) |
(i) |
$ |
(439,253) |
(i) |
$ |
(264,974) |
(i) |
$ |
500,962 |
|||||||
|
Total Revenue |
$ |
2,159,265 |
$ |
(140,928) |
$ |
(140,091) |
$ |
(635,357) |
$ |
(37,700) |
$ |
(439,253) |
$ |
(264,974) |
$ |
500,962 |
|||||||||||||
|
OPERATING EXPENSES |
|||||||||||||||||||||||||||||
|
Investment property operating expenses |
$ |
641,264 |
$ |
(53,860) |
(ii) |
$ |
(37,823) |
(ii) |
$ |
(191,762) |
(ii) |
$ |
- |
$ |
(144,350) |
(ii) |
$ |
(110) |
(ii) |
$ |
213,359 |
||||||||
|
DST sponsorship program expenses |
222,896 |
- |
- |
- |
- |
- |
- |
222,896 |
|||||||||||||||||||||
|
Share based compensation expenses |
224,220 |
- |
- |
- |
- |
- |
- |
224,220 |
|||||||||||||||||||||
|
Legal, accounting and other professional fees |
415,779 |
- |
- |
- |
- |
- |
- |
415,779 |
|||||||||||||||||||||
|
Corporate general and administrative expenses |
348,189 |
- |
- |
- |
- |
- |
- |
348,189 |
|||||||||||||||||||||
|
Depreciation and amortization |
488,770 |
- |
- |
(59,271) |
(iii) |
(20,178) |
(iii) |
(166,211) |
(iii) |
- |
(iii) |
243,110 |
|||||||||||||||||
|
Total Operating Expenses |
2,341,118 |
(53,860) |
(37,823) |
(251,033) |
(20,178) |
(310,561) |
(110) |
1,667,553 |
|||||||||||||||||||||
|
Gain on disposal of investment properties |
12,850,227 |
(1,040,870) |
(iv) |
(4,228,612) |
(iv) |
(7,580,745) |
(iv) |
- |
- |
- |
- |
||||||||||||||||||
|
Loss on extinguishment of debt |
(372,340) |
64,320 |
(v) |
112,203 |
(v) |
195,817 |
(v) |
- |
- |
- |
- |
||||||||||||||||||
|
Operating Income (Loss) |
12,296,034 |
(1,063,618) |
(4,218,677) |
(7,769,252) |
(17,522) |
(128,692) |
(264,864) |
(1,166,591) |
|||||||||||||||||||||
|
Interest expense |
456,095 |
(37,845) |
(vi) |
(39,414) |
(vi) |
(83,419) |
(vi) |
- |
(99,977) |
(vi) |
(96,375) |
(iv) |
99,065 |
||||||||||||||||
|
Net Income (Loss) from Operations |
11,839,939 |
(1,025,773) |
(4,179,263) |
(7,685,833) |
(17,522) |
(28,715) |
(168,489) |
(1,265,656) |
|||||||||||||||||||||
|
Other income |
275,815 |
- |
- |
- |
- |
- |
(34,441) |
(v) |
241,374 |
||||||||||||||||||||
|
Other expense |
(71,627) |
7,224 |
(vii) |
- |
- |
- |
- |
- |
(64,403) |
||||||||||||||||||||
|
Net Income (Loss) before Income Taxes |
12,044,127 |
(1,018,549) |
(4,179,263) |
(7,685,833) |
(17,522) |
(28,715) |
(202,930) |
(1,088,685) |
|||||||||||||||||||||
|
Income tax benefit |
2,078,642 |
- |
- |
- |
- |
- |
- |
2,078,642 |
|||||||||||||||||||||
|
Net Income (Loss) |
14,122,769 |
(1,018,549) |
(4,179,263) |
(7,685,833) |
(17,522) |
(28,715) |
(202,930) |
989,957 |
|||||||||||||||||||||
|
Less: Net income attributable to Parkway Property noncontrolling interests |
183,338 |
(183,338) |
(viii) |
- |
- |
- |
- |
- |
- |
||||||||||||||||||||
|
Less: Net income attributable to DST Entities |
43,827 |
- |
- |
- |
- |
- |
(43,827) |
(vi) |
- |
||||||||||||||||||||
|
Less: Net income attributable to Operating Partnership noncontrolling interests |
4,928,795 |
(322,558) |
(ix) |
(1,614,031) |
(ix) |
(2,968,269) |
(ix) |
(6,767) |
(ix) |
(11,090) |
(ix) |
(61,446) |
(vii) |
(55,366) |
|||||||||||||||
|
Net Income Attributable to Medalist Common Shareholders |
$ |
8,966,809 |
$ |
(512,653) |
$ |
(2,565,232) |
$ |
(4,717,564) |
$ |
(10,755) |
$ |
(17,625) |
$ |
(97,657) |
$ |
1,045,323 |
|||||||||||||
|
Income per share from operations - basic |
$ |
7.01 |
$ |
0.82 |
|||||||||||||||||||||||||
|
Weighted-average number of shares - basic |
1,279,523 |
1,279,523 |
|||||||||||||||||||||||||||
|
Income per share from operations - diluted |
$ |
4.85 |
0.69 |
||||||||||||||||||||||||||
|
Weighted-average number of shares - diluted |
1,848,135 |
1,848,135 |
|||||||||||||||||||||||||||
|
Dividends paid per common share |
$ |
0.0675 |
$ |
0.0675 |
|||||||||||||||||||||||||
​
See notes to unaudited pro forma consolidated financial statements
MEDALIST DIVERSIFIED, INC.
UNAUDITED PRO FORMA CONSOLIDATED STATEMENT OF OPERATIONS
FOR THE THREE MONTHS ENDED MARCH 31, 2026
Notes to unaudited pro forma consolidated statement of operations for the three months ended March 31, 2026
| (a) | Historical financial information was derived from the condensed consolidated statement of operations of the Company for the three months ended March 31, 2026 (unaudited). |
| (b) | Adjustments to give effect to the sale of the Parkway, Greenbrier, Franklin Square, Citibank and Ashley Plaza Properties as if the dispositions had occurred on January 1, 2026. |
| (i) | Represents the investment property revenues recognized during the three months ended March 31, 2026. Investment property revenues include rent, common area maintenance ("CAM") revenues, and percentage rent. Rent revenues are presented on a straight-line basis. |
| (ii) | Represents the investment property operating expenses incurred during the three months ended March 31, 2026. |
| (iii) | Represents the depreciation and amortization expenses recorded during the three months ended March 31, 2026. |
| (iv) | Represents the gain on disposition of investment properties recorded during the three months ended March 31, 2026. |
| (v) | Represents the loss on extinguishment of debt recorded during the three months ended March 31, 2026. |
| (vi) | Represents the interest expense incurred on the related mortgages recorded during the three months ended March 31, 2026. |
| (vii) | Represents the other expense recorded during the three months ended March 31, 2026. |
| (viii) | Represents the noncontrolling owner's 18.0% share of the Parkway Property's net income recorded for the three months ended March 31, 2026. |
| (ix) | Represents the Operating Partnership's pro forma 38.62% weighted average noncontrolling ownership interest's share of the net income recorded for the three months ended March 31, 2026. |
| (c) | Represents the impact of the deconsolidation of the XXV DST 1 entity resulting from the sale of a majority of the Class 1 beneficial ownership interests in the XXV DST 1 entity as if the deconsolidation had occurred on January 1, 2026. |
| (i) | Represents the investment property revenues recognized during the three months ended March 31, 2026. For the XXV DST 1 entity, investment property revenues include only rent revenues, which are presented on a straight-line basis. |
| (ii) | Represents the investment property operating expenses incurred during the three months ended March 31, 2026. |
| (iii) | Under ASC 360, depreciation and amortization on assets held for sale is not recorded. |
| (iv) | Represents the interest expense incurred on the related mortgages recorded during the three months ended March 31, 2026. |
| (v) | Represents the other income recorded during the three months ended March 31, 2026. |
| (vi) | Represents the noncontrolling owner's 21.6% share of the XXV DST 1 entity's net income recorded for the three months ended March 31, 2026. |
| (vii) | Represents the Operating Partnership's pro forma 38.62% weighted average noncontrolling ownership interest's share of the net income recorded for the three months ended March 31, 2026. |
Medalist Diversified, Inc.
Unaudited Pro Forma Consolidated Statement of Operations
For the year ended December 31, 2025
|
Pro Forma Adjustments - Dispositions (b) |
|||||||||||||||||||||||
|
Historical |
Buffalo |
United |
|||||||||||||||||||||
|
Year Ended |
Salisbury |
Wild Wings |
Rentals |
Parkway |
Greenbrier |
||||||||||||||||||
|
December 31, 2025 |
Property |
Property |
Property |
Property |
Property |
||||||||||||||||||
|
(a) |
Disposition |
Disposition |
Disposition |
Disposition |
Disposition |
||||||||||||||||||
|
(unaudited) |
(unaudited) |
(unaudited) |
(unaudited) |
(unaudited) |
|||||||||||||||||||
|
REVENUE |
|||||||||||||||||||||||
|
Investment property revenues |
$ |
10,396,618 |
$ |
(767,676) |
(i) |
$ |
(129,616) |
(i) |
$ |
(164,623) |
(i) |
$ |
(871,771) |
(i) |
$ |
(1,103,839) |
(i) |
||||||
|
Total Revenue |
$ |
10,396,618 |
$ |
(767,676) |
$ |
(129,616) |
$ |
(164,623) |
$ |
(871,771) |
$ |
(1,103,839) |
|||||||||||
|
OPERATING EXPENSES |
|||||||||||||||||||||||
|
Investment property operating expenses |
$ |
2,778,232 |
$ |
(207,159) |
(ii) |
$ |
- |
$ |
- |
$ |
(234,480) |
(ii) |
$ |
(238,139) |
(ii) |
||||||||
|
Bad debt expense |
2,382 |
(1,061) |
(iii) |
- |
- |
(161) |
(iii) |
(1,160) |
(iii) |
||||||||||||||
|
Share based compensation expenses |
397,182 |
- |
- |
- |
- |
- |
|||||||||||||||||
|
Legal, accounting and other professional fees |
1,594,707 |
- |
- |
- |
- |
- |
|||||||||||||||||
|
Corporate general and administrative expenses |
1,283,334 |
- |
- |
- |
- |
- |
|||||||||||||||||
|
Loss on impairment |
74,328 |
- |
(iv) |
- |
- |
- |
(3,400) |
(iv) |
|||||||||||||||
|
Impairment of assets held for sale |
662,394 |
- |
(v) |
(160,789) |
(v) |
(381,605) |
(v) |
- |
- |
||||||||||||||
|
Depreciation and amortization |
3,347,577 |
(281,485) |
(vi) |
(64,169) |
(vi) |
(101,032) |
(vi) |
(284,563) |
(vi) |
(206,664) |
(vi) |
||||||||||||
|
Total Operating Expenses |
10,140,136 |
(489,705) |
(224,958) |
(482,637) |
(519,204) |
(449,363) |
|||||||||||||||||
|
Gain (loss) on disposal of investment properties |
731,439 |
(841,278) |
(vii) |
52,760 |
(vii) |
57,079 |
(vii) |
- |
- |
||||||||||||||
|
Loss on redemption of mandatorily redeemable preferred stock |
(9,375) |
- |
- |
- |
- |
- |
|||||||||||||||||
|
Loss on extinguishment of debt |
(430,644) |
51,081 |
(viii) |
- |
- |
- |
- |
||||||||||||||||
|
Operating Income (Loss) |
547,902 |
(1,068,168) |
148,102 |
375,093 |
(352,567) |
(654,476) |
|||||||||||||||||
|
Interest expense |
2,620,396 |
(208,497) |
(ix) |
- |
- |
(256,639) |
(ix) |
(246,882) |
(ix) |
||||||||||||||
|
Net (Loss) Income from Operations |
(2,072,494) |
(859,671) |
148,102 |
375,093 |
(95,928) |
(407,594) |
|||||||||||||||||
|
Other income |
361,498 |
- |
(x) |
- |
- |
- |
- |
||||||||||||||||
|
Other expense |
(224,777) |
- |
- |
- |
90,166 |
- |
|||||||||||||||||
|
Net (Loss) Income |
(1,935,773) |
(859,671) |
148,102 |
375,093 |
(5,762) |
(407,594) |
|||||||||||||||||
|
Less: Net income attributable to Parkway Property noncontrolling interests |
1,036 |
- |
(xi) |
- |
- |
(1,036) |
(xi) |
- |
|||||||||||||||
|
Less: Net income (loss) attributable to Operating Partnership noncontrolling interests |
452,028 |
(387,798) |
(xii) |
66,809 |
(xii) |
169,204 |
(xii) |
(2,132) |
(xii) |
(183,866) |
(xii) |
||||||||||||
|
Net (Loss) Income Attributable to Medalist Common Shareholders |
$ |
(2,388,837) |
$ |
(471,873) |
$ |
81,293 |
$ |
205,889 |
$ |
(2,594) |
$ |
(223,728) |
|||||||||||
|
Loss per share from operations - basic and diluted |
$ |
(2.118) |
|||||||||||||||||||||
|
Weighted-average number of shares - basic and diluted |
1,127,768 |
||||||||||||||||||||||
|
Dividends paid per common share |
$ |
0.17 |
|||||||||||||||||||||
See notes to unaudited pro forma consolidated financial statements
Continued on following page
Medalist Diversified, Inc.
Unaudited Pro Forma Consolidated Statement of Operations
For the year ended December 31, 2025
Continued from preceding page
|
Pro Forma Adjustments - Dispositions (b) (continued) |
||||||||||||||||||
|
Tesla Property - |
||||||||||||||||||
|
Franklin |
Ashley |
Sales of DST |
||||||||||||||||
|
Square |
Citibank |
Plaza |
Interests and |
Pro Forma |
||||||||||||||
|
Property |
Property |
Property |
Deconsolidation |
Year Ended |
||||||||||||||
|
Disposition |
Disposition |
Disposition |
(c) |
December 31, 2025 |
||||||||||||||
|
(unaudited) |
(unaudited) |
(unaudited) |
(unaudited) |
(unaudited) |
||||||||||||||
|
REVENUE |
||||||||||||||||||
|
Investment property revenues |
$ |
(2,634,259) |
(i) |
$ |
(150,796) |
(i) |
$ |
(1,922,729) |
(i) |
$ |
(158,525) |
(i) |
$ |
2,492,784 |
||||
|
Total Revenue |
$ |
(2,634,259) |
$ |
(150,796) |
$ |
(1,922,729) |
$ |
(158,525) |
$ |
2,492,784 |
||||||||
|
OPERATING EXPENSES |
||||||||||||||||||
|
Investment property operating expenses |
$ |
(648,597) |
(ii) |
$ |
- |
$ |
(596,885) |
(ii) |
$ |
(544) |
(ii) |
$ |
852,428 |
|||||
|
Bad debt expense |
- |
- |
- |
- |
- |
|||||||||||||
|
Share based compensation expenses |
- |
- |
- |
- |
397,182 |
|||||||||||||
|
Legal, accounting and other professional fees |
- |
- |
- |
- |
1,594,707 |
|||||||||||||
|
Corporate general and administrative expenses |
- |
- |
- |
- |
1,283,334 |
|||||||||||||
|
Loss on impairment |
(56,957) |
(iv) |
- |
(5,700) |
(iv) |
- |
8,271 |
|||||||||||
|
Impairment of assets held for sale |
- |
- |
- |
- |
120,000 |
|||||||||||||
|
Depreciation and amortization |
(678,496) |
(vi) |
(80,715) |
(vi) |
(657,770) |
(vi) |
- |
(iii) |
992,683 |
|||||||||
|
Total Operating Expenses |
(1,384,050) |
(80,715) |
(1,260,355) |
(544) |
5,248,605 |
|||||||||||||
|
Gain (loss) on disposal of investment properties |
- |
- |
- |
- |
- |
|||||||||||||
|
Loss on redemption of mandatorily redeemable preferred stock |
- |
- |
- |
- |
(9,375) |
|||||||||||||
|
Loss on extinguishment of debt |
- |
- |
- |
379,563 |
(iv) |
- |
||||||||||||
|
Operating Income (Loss) |
(1,250,209) |
(70,081) |
(662,374) |
221,582 |
(2,765,196) |
|||||||||||||
|
Interest expense |
(535,041) |
(ix) |
- |
(410,934) |
(ix) |
(58,896) |
(v) |
903,507 |
||||||||||
|
Net (Loss) Income from Operations |
(715,168) |
(70,081) |
(251,440) |
280,478 |
(3,668,703) |
|||||||||||||
|
Other income |
(320,670) |
(x) |
- |
- |
(242) |
(vi) |
40,586 |
|||||||||||
|
Other expense |
- |
- |
- |
90,585 |
(vii) |
(44,026) |
||||||||||||
|
Net (Loss) Income |
(1,035,838) |
(70,081) |
(251,440) |
370,821 |
(3,672,143) |
|||||||||||||
|
Less: Net income attributable to Parkway Property noncontrolling interests |
- |
- |
- |
- |
- |
|||||||||||||
|
Less: Net income (loss) attributable to Operating Partnership noncontrolling interests |
(467,267) |
(xii) |
(31,614) |
(xii) |
(113,425) |
(xii) |
167,277 |
(viii) |
(330,781) |
|||||||||
|
Net (Loss) Income Attributable to Medalist Common Shareholders |
$ |
(568,571) |
$ |
(38,467) |
$ |
(138,015) |
$ |
203,544 |
$ |
(3,341,362) |
||||||||
|
Loss per share from operations - basic and diluted |
$ |
(2.96) |
||||||||||||||||
|
Weighted-average number of shares - basic and diluted |
1,127,768 |
|||||||||||||||||
|
Dividends paid per common share |
$ |
0.17 |
||||||||||||||||
See notes to unaudited pro forma consolidated financial statements
MEDALIST DIVERSIFIED, INC.
UNAUDITED PRO FORMA CONSOLIDATED STATEMENT OF OPERATIONS
FOR THE YEAR ENDED DECEMBER 31, 2025
Notes to unaudited pro forma consolidated statement of operations for the year ended December 31, 2025
| (a) | Historical financial information was derived from the consolidated statement of operations of the Company for the year ended December 31, 2025. |
| (b) | Adjustments to give effect to the sale of the Salisbury, Buffalo Wild Wings, United Rentals, Parkway, Greenbrier, Franklin Square, Citibank and Ashley Plaza Properties as if the dispositions had occurred on January 1, 2025. |
| (i) | Represents the investment property revenues recognized during the year ended December 31, 2025. Investment property revenues include rent, CAM revenues, and percentage rent. Rent revenues are presented on a straight-line basis. |
| (ii) | Represents the investment property operating expenses incurred during the year ended December 31, 2025. |
| (iii) | Represents the bad debt expense recorded during the year ended December 31, 2025. |
| (iv) | Represents the loss on impairment recorded during the year ended December 31, 2025. |
| (v) | Represents the impairment of assets held for sale recorded during the year ended December 31, 2025. |
| (vi) | Represents the depreciation and amortization expenses recorded during the year ended December 31, 2025. |
| (vii) | Represents the gain (loss) on disposition of investment properties recorded during the year ended December 31, 2025. |
| (viii) | Represents the loss on extinguishment of debt recorded during the year ended December 31, 2025. |
| (ix) | Represents the interest expense incurred on the related mortgages recorded during the year ended December 31, 2025. |
| (x) | Represents the other income recorded during the year ended December 31, 2025. |
| (xi) | Represents the noncontrolling owner's 18.0% share of the Parkway Property's net income recorded for the year ended December 31, 2025. |
| (xii) | Represents the Operating Partnership's pro forma 45.11% weighted average noncontrolling ownership interest's share of the net income (loss) recorded for the year ended December 31, 2025. |
| (c) | Represents the impact of the deconsolidation of the XXV DST 1 entity resulting from the sale of a majority of the Class 1 beneficial ownership interests in the XXV DST 1 entity as if the deconsolidation had occurred on January 1, 2025. |
| (i) | Represents the investment property revenues recognized during the year ended December 31, 2025. For the XXV DST 1 entity, investment property revenues include only rent revenues, which are presented on a straight-line basis. |
| (ii) | Represents the investment property operating expenses incurred during the year ended December 31, 2025. |
| (iii) | Under ASC 360, depreciation and amortization on assets held for sale is not recorded. |
| (iv) | Represents the loss on extinguishment of debt recorded during the year ended December 31, 2025 resulting from the repayment of the Farmers and Merchants line of credit. |
| (v) | During the year ended December 31, 2025, interest expense includes interest paid on (1) the acquisition line of credit ("ALOC") which financed the acquisition of the Tesla Property from July 18, 2025, the acquisition |
| date, through November 7, 2025 and (2) the mortgage payable which refinanced the ALOC from November 7, 2025 through December 31, 2025. |
| (vi) | Represents the other income recorded during the year ended December 31, 2025. |
| (vii) | Represents the other expense recorded during the year ended December 31, 2025. |
| (viii) | Represents the Operating Partnership's pro forma 45.11% weighted average noncontrolling ownership interest's share of the net income (loss) recorded for the year ended December 31, 2025. |