Medalist Diversified, Inc. (NASDAQ: MDRR)

Medalist Diversified, Inc. is a real estate focused company that acquires, repositions, renovates, leases and manages income producing properties. Through its operating partnership, Medalist Diversified Holdings, L. P., the firm owns a diversified portfolio of retail, flex/industrial and single tenant net lease assets. In addition to direct property ownership, the company has launched a Delaware Statutory Trust (DST) sponsorship program that raises capital through private placements by selling beneficial interests in DSTs that hold specific real estate holdings. The firm also holds a modest position in cryptocurrency assets as part of its investment strategy.

The company generates revenue primarily from two streams. First, it collects rental income from tenants occupying its owned properties across the retail, flex/industrial and single tenant net lease sectors. Second, it earns fee income from its DST sponsorship activities, including structuring, marketing and placing DST interests with investors, for which it receives sponsorship and placement fees. While the firm’s cryptocurrency holdings are not a core revenue source, any appreciation in those assets contributes to overall returns.

As of December 31, 2025, the company organized its operations into three reportable segments based on property type. The company operates through the following segments.

• Retail Center Properties: This segment includes three retail properties leased to various retailers, providing steady rental income from consumer facing businesses.

• Flex Center Properties: This segment comprises three flex/industrial buildings that accommodate light manufacturing, warehousing and office uses, generating income from diverse industrial tenants.

• STNL Properties: This segment consists of four single tenant net lease properties, highlighted by the Tesla Pensacola Property, which is leased to Tesla under a net lease arrangement delivering predictable long term cash flows.

The firm operates in a highly competitive real estate investment landscape, facing rivalry from REITs, DST sponsors, specialty finance companies, banks, mortgage lenders, insurance firms, institutional investors and other private equity groups that pursue similar property acquisitions and sponsorship opportunities. Many of these competitors possess greater financial resources, lower cost of capital and more extensive experience in DST structuring, which can constrain Medalist Diversified’s ability to win deals on price alone. However, the company differentiates itself by concentrating on net lease assets with investment grade tenants in growth markets and by leveraging its internal DST platform to offer tailored investment products that aim to deliver risk adjusted returns to investors.

The company’s property portfolio serves a range of tenants including retail stores, industrial and office users, and single corporate occupants such as Tesla, which occupies the Tesla Pensacola Property under a net lease. In addition, the DST program targets accredited individual investors and institutional participants seeking exposure to real estate through private placements.