Medalist Diversified REIT, Inc. (MDRR): Business Model Canvas [Dec-2025 Updated]

You're looking to cut through the noise and see exactly how Medalist Diversified REIT, Inc. (MDRR) makes its money as of late 2025, right? Forget the fluff; as someone who's mapped out complex real estate structures for years, I've distilled their entire operation into the nine essential blocks, using their latest figures. Consider this: they are managing 12 developed properties, posted $2.47 million in revenue for Q2 2025, and are balancing public equity trading on NASDAQ with a private Delaware Statutory Trust (DST) offering for accredited investors seeking tax deferral. This dual-engine approach, supported by $43.5 million in mortgage debt and a $0.0675 quarterly dividend, is the core of their strategy. Dive into the table below to see the precise partnerships, activities, and revenue streams that drive this model.

Medalist Diversified REIT, Inc. (MDRR) - Canvas Business Model: Key Partnerships

You're looking at the external relationships Medalist Diversified REIT, Inc. (MDRR) relies on to execute its real estate investment strategy, especially for financing and specialized transactions. For instance, debt financing involves key lenders; as of November 7, 2025, one such relationship saw the DST enter a Loan Agreement with Pinnacle Bank for a loan amount of $7,710,000.00.

The overall debt structure is significant, with mortgages payable totaling $43.5 million as of Q2 2025. This highlights the reliance on external capital sources to acquire and hold the portfolio, which as of June 30, 2025, consisted of 12 developed properties.

The ecosystem also requires specialized third parties to handle the mechanics of real estate transactions and asset servicing. For example, property sales, like the $9.93 million sale of the Salisbury Marketplace Shopping Center, rely on these external parties for execution. The company also structures its offerings to partner with property owners seeking tax deferral, which necessitates working with qualified intermediaries for the Delaware Statutory Trust (DST) program.

Operational support is outsourced to various service providers, which is critical for maintaining asset value and tenant satisfaction across the portfolio of retail, flex-industrial, and single tenant net lease properties. These partnerships include:

• Real estate service providers for property management
• Real estate service providers for leasing activities
• Third-party commercial real estate (CRE) brokers for transactions
• Qualified intermediaries for 1031 exchange structuring

Furthermore, the unique structure involving digital assets requires a specific financial partner, evidenced by the existence of the taxable REIT subsidiary, Own Digital Treasury TRS, LLC, which is formed to acquire and hold digital assets, implying a partnership with a financial institution for custody or related services.

Finance: draft analysis of Q3 2025 debt maturity schedule by Monday.

Medalist Diversified REIT, Inc. (MDRR) - Canvas Business Model: Key Activities

You're looking at the core engine of Medalist Diversified REIT, Inc. (MDRR) right now-what they actually spend their time and capital doing to generate returns for shareholders. This is about the day-to-day execution that keeps the REIT structure intact and the cash flowing.

Active management and leasing of 12 developed properties.

Medalist Diversified REIT, Inc. focuses on managing a portfolio concentrated in the Southeastern U.S., specifically in markets like Virginia, North Carolina, South Carolina, Georgia, Florida, and Alabama. As of June 30, 2025, the Operating Partnership owned and operated a total of 12 developed properties, alongside three undeveloped parcels. This management activity includes leasing up vacant space and improving credit quality across the portfolio.

Here is the property breakdown as of the mid-year 2025 snapshot:

The company's focus is on value-add commercial real estate, including flex/industrial, retail, multi-family residential, and limited-service hotels.

Sponsoring Delaware Statutory Trusts (DSTs) via MDRR Sponsor TRS, LLC.

A key structural activity involves the use of its wholly owned subsidiary, MDRR Sponsor TRS, LLC. This entity was specifically formed to act as the sponsor for the Operating Partnership's Delaware statutory trust (DST) program. This function is critical for structuring tax-deferred exchanges for sellers of real estate.

Capital recycling, like the $9.93 million sale of Salisbury Marketplace.

The company actively engages in capital recycling-selling assets to redeploy capital into new investments or to strengthen the balance sheet. Medalist Diversified REIT closed the sale of the Salisbury Marketplace Shopping Center on October 23, 2025, for a total sales price of $9,930,000. The stated expectation was to use a portion of these proceeds to repay existing debt obligations. This asset disposition converted real estate into liquidity, with the proceeds earmarked to reduce leverage.

Maintaining REIT compliance to avoid corporate tax.

Medalist Diversified REIT, Inc. has elected to be taxed as a real estate investment trust for federal income tax purposes, a status it has maintained since the taxable year ended December 31, 2017. Maintaining this status requires adherence to strict distribution and asset tests. The company declared a quarterly cash dividend of $0.0675 per share, payable on October 13, 2025, to shareholders of record as of October 9, 2025. This commitment to distribution is central to the REIT structure.

The latest reported TTM Revenue was $10.10M, with the quarter ending September 30, 2025, showing revenue of $2.79M. The Annual Sales for 2024 were reported as $9,740 K. The annualized dividend is listed as $0.27 per share.

Acquiring new single tenant net lease (STNL) properties.

The portfolio composition as of June 30, 2025, shows that five of the 12 developed properties are Single Tenant Net Lease (STNL) properties. This indicates that sourcing and integrating new STNL acquisitions is a defined part of the investment strategy, complementing their focus on retail and flex/industrial assets. The company has a line of credit of $1.5 million available from a 2022 financing transaction, which it planned to use for future acquisitions.

Here are some key financial metrics as of late 2025:

• Market Capitalization: Approximately $15 M or $14,628 K.
• Last Quarter Net Income (Q3 2025): $-400 K.
• Earnings Per Share ttm: $-1.34.
• Total Debt / Equity (MRQ): 150.94%.
• Dividend Payout Ratio: 19.43%.

Finance: draft 13-week cash view by Friday.

Medalist Diversified REIT, Inc. (MDRR) - Canvas Business Model: Key Resources

You're looking at the core assets Medalist Diversified REIT, Inc. (MDRR) uses to execute its strategy. These aren't just line items; they are the tangible and structural foundations supporting the business model.

The physical assets are concentrated in the Southeast U.S., primarily in secondary and tertiary markets across Virginia, North Carolina, South Carolina, Georgia, Florida, and Alabama. The company focuses on commercial properties, including flex-industrial and retail, and single-tenant net lease assets. The structure is designed to facilitate capital access and tax-efficient transactions through its UPREIT structure.

Here's a look at the portfolio composition and key financial metrics as of mid-to-late 2025:

The property portfolio breakdown as of June 30, 2025, shows the mix of asset types held through the Operating Partnership:

• Retail Center Properties: 4
• Flex Center Properties: 3
• Single Tenant Net Lease (STNL) Properties: 5
• Undeveloped Parcels: 3

The organizational structure relies heavily on the relationship between the REIT and its subsidiary, Medalist Diversified Holdings, LP. The REIT acts as the sole general partner. This structure is key for executing UPREIT transactions (721 exchanges) where property owners can trade property for Operating Partnership (OP) Units.

Key structural and management components include:

• Operating Partnership: Medalist Diversified Holdings, LP, formed September 29, 2015.
• Equity Access: Public listing on NASDAQ under ticker MDRR.
• External Advisor: The REIT is externally managed by Medalist Fund Manager, Inc..
• Executive Leadership: Francis P. Kavanaugh serves as President and Chief Executive Officer. Charles Brent Winn Jr. is the Chief Financial Officer.
• Management Experience: The leadership team brings deep real estate and finance backgrounds, with the CEO having over 30+ years of restructuring expertise.

The company also utilizes specialized subsidiaries, including two Taxable REIT Subsidiaries (TRS) as of June 30, 2025: Own Digital Treasury TRS, LLC, and MDRR Sponsor TRS, LLC, which supports the Delaware Statutory Trust (DST) program.

Medalist Diversified REIT, Inc. (MDRR) - Canvas Business Model: Value Propositions

Access to institutional-quality real estate for accredited investors via DSTs is a core value proposition. Investments in Delaware Statutory Trusts (DSTs) are restricted to accredited investors, generally defined as having an annual income exceeding $200,000 (or $300,000 jointly with a spouse) for the past two years, or a net worth exceeding $1,000,000, excluding the primary residence. These DST investments are backed by properties leased to investment-grade tenants, rated BBB+ or better.

Public company transparency through regular SEC filings is provided because Medalist Diversified REIT, Inc. is publicly traded on NASDAQ under MDRR. This means the company files periodic reports with the Securities and Exchange Commission, including Form 10-K, Form 10-Q, and Form 8-K. You can review these filings at www.sec.gov by searching for MDRR.

The commitment to shareholder return is demonstrated by the declared quarterly cash dividend. The most recent declared amount was $0.0675 per share, payable on October 13, 2025, to holders of record as of October 9, 2025. This translates to an annual dividend of $0.27 per share.

Medalist Diversified REIT, Inc. offers a diversified portfolio across commercial property types. As of June 30, 2025, the portfolio owned and operated 12 developed properties. This diversification is segmented into:

• Retail Center Properties: 4 properties.
• Flex Center Properties: 3 properties.
• Single Tenant Net Lease (STNL) properties: 5 properties.

The company also held 3 undeveloped parcels as of that date.

The focus on properties essential to tenant operations is reflected in the investment strategy targeting investment-grade tenants and prioritizing credit quality and lease security. Furthermore, executive compensation figures are publicly disclosed, showing the Chairman of the Board, President, Chief Executive Officer, Secretary and Treasurer, Francis P. Kavanaugh, had a reported salary of $265.00K.

Here's a quick look at some key financial and operational metrics:

You should review the latest 10-Q filing for the most current portfolio valuation and cash flow figures. Finance: draft 13-week cash view by Friday.

Medalist Diversified REIT, Inc. (MDRR) - Canvas Business Model: Customer Relationships

You're looking at how Medalist Diversified REIT, Inc. (MDRR) manages its different customer groups as of late 2025. The relationships span from the broad public market to highly specific accredited investors and the tenants who occupy the real estate.

Transactional relationship with public common stock investors

The relationship with public common stock investors is primarily transactional, centered on the trading of shares on the NASDAQ exchange and the distribution of dividends. As of the close on December 4, 2025, the stock price was $13.57. The Current Market Cap was reported as $27.76M as of November 12, 2025. The REIT declared a quarterly cash dividend of $0.0675/share, payable to shareholders on October 13, 2025. As of August 7, 2025, the number of shares of Common Stock outstanding was 1,345,260. This relationship is supported by insider activity, such as the CFO, Charles Brent Winn Jr., purchasing shares for a total amount reaching $3,382 between December 3 and December 4, 2025.

Here is a snapshot of the public investor relationship metrics:

Consultative, managed relationship with accredited DST investors

For accredited investors, Medalist Diversified REIT, Inc. offers a more consultative and managed relationship through its Delaware Statutory Trust (DST) program. The REIT, through its subsidiary MDRR Sponsor TRS, LLC, serves as the sponsor for this program as of June 30, 2025. This structure is designed to facilitate 1031 exchange transactions for investors. The relationship involves providing fractional ownership in investment-grade, single-tenant net lease (STNL) properties. Recent activity in this segment includes MDRR XXV DST 1 being party to a Contribution Agreement and a Loan Agreement on November 7, 2025. The value proposition for these investors centers on predictable monthly distributions and zero management responsibilities.

• Investment structure offers 100% tax deferral via 1031 exchange.
• Distributions are provided monthly from institutional assets.
• Properties are leased to investment-grade tenants (BBB+ or better).
• The leadership team brings institutional real estate backgrounds to the DST investments.

Direct, long-term leasing relationships with commercial tenants

The core of the operating business involves direct, long-term leasing relationships with commercial tenants across the portfolio. As of June 30, 2025, Medalist Diversified REIT, Inc. owned and operated 12 developed properties. This portfolio consisted of four retail center properties, three flex center properties, and five single tenant net lease (STNL) properties. The REIT recorded that during the six months ended June 30, 2025, four tenants notified the Company of their intent to terminate their leases early. The Investment property, net on the balance sheet stood at $59.9 million as of June 30, 2025. The company completed the sale of the Salisbury Marketplace Shopping Center, which had a carrying value transfer to held-for-sale of $9.4 million as of June 30, 2025, and was sold for $9.93 million.

The property portfolio composition as of mid-2025:

Investor Relations team for shareholder communication

Shareholder communication is managed by dedicated personnel within the executive and finance teams. Kevin Egan is listed as a Company Contact for Investor Relations. Deron Colby Esq. serves as the Director of Strategic Finance and Investor Relations. The CEO, Francis P. Kavanaugh, and CFO, Charles Brent Winn Jr., are key figures in communicating the company's strategy and performance to stakeholders. The CEO was noted for purchasing common stock on November 14, 2025.

Providing objective, third-party due diligence reports (FactRight) for DSTs

While the specific mention of FactRight reports is not directly in the search results for 2025, the structure of the DST offering implies reliance on third-party validation for investment-grade assets. The DST program focuses on investment-grade tenants (BBB+ or better). The management team emphasizes bringing rigorous underwriting standards to every DST investment. The company's financial structuring in November 2025 involved agreements with Pinnacle Bank, which suggests external validation and partnership in structuring these offerings.

Medalist Diversified REIT, Inc. (MDRR) - Canvas Business Model: Channels

You're looking at how Medalist Diversified REIT, Inc. (MDRR) gets its offerings and information out to the world. It's a mix of public market access and targeted private placements, which is typical for a REIT structure like this.

NASDAQ Capital Market for Common Stock Trading (MDRR)

The common stock trades publicly on the NASDAQ Capital Market under the ticker MDRR. This is the primary channel for public equity investment and liquidity for shareholders. The structure allows for price discovery and public reporting requirements that feed into other channels, like investor information distribution.

Here are some key figures related to this channel as of late 2025 data points:

The trading channel is supported by the company's financial health, which includes Total Cash (MRQ) of $1.94M and Cash from Operations (TTM) of $2.66M.

Private Placement Offerings for Delaware Statutory Trusts (DSTs)

Medalist Diversified REIT, Inc. uses its subsidiary, MDRR Sponsor TRS, LLC, to sponsor Delaware Statutory Trusts (DSTs) as a channel for 1031 exchange investors. These are private placement offerings, meaning they are restricted to accredited investors only. The focus here is on institutional-quality assets with investment-grade tenants.

The channel emphasizes transparency by linking DST offerings to the public company's filings. For example, a current offering, the Tesla Service Center DST, is backed by a property leased to Tesla, Inc., which has an S&P Credit Rating of BBB and reported $97.7B in 2024 Revenue. The total consideration for that specific property was $10,000,000.

Key characteristics of this distribution channel include:

• Investment-grade tenants rated BBB+ or better.
• Offerings are available only to investors meeting the accredited standard (e.g., net worth exceeding $1,000,000 excluding primary residence).
• The structure is designed for 1031 exchange tax deferral.
• The REIT sponsors the DST through its subsidiary, MDRR Sponsor TRS, LLC.

Direct Leasing and Property Management for Commercial Tenants

This is the core operational channel for generating rental income from the underlying assets. As of June 30, 2025, Medalist Diversified REIT, Inc. owned and operated 12 developed properties. The leasing activity is segmented across different property types.

The property mix channeled through direct leasing and management includes:

• Four retail center properties.
• Three flex center properties.
• Five single tenant net lease ("STNL") properties.

The company also holds three undeveloped parcels, which represent potential future leasing inventory. The leasing strategy focuses on commercial properties, including flex/industrial, neighborhood shopping centers, and STNL assets.

Corporate Website and SEC Filings for Investor Information

Information dissemination to the broader investor base relies on the corporate website, www.medalistreit.com, and mandatory regulatory filings. This channel ensures compliance and provides the public data that supports the DST channel's transparency claims.

The required public disclosures channeled through the SEC include:

• Form 10-Q (Quarterly Report), such as the one filed November 6, 2025.
• Form 8-K (Current Report) for material events.
• Form 10-K/A (Amended Annual Report).

The company is classified as a Non-accelerated filer and a Smaller reporting company as of its June 30, 2025 filing status. Contact for investor relations is listed via phone as (949) 415-6633.

Medalist Diversified REIT, Inc. (MDRR) - Canvas Business Model: Customer Segments

You're looking at the different groups Medalist Diversified REIT, Inc. (MDRR) serves, which is key to understanding where their cash flow comes from and where they focus their capital deployment efforts.

The customer base for Medalist Diversified REIT, Inc. (MDRR) is segmented across equity holders, debt/partnership interest holders, and the commercial tenants who occupy their real estate assets. As of late 2025, the structure shows a clear focus on both public market capital and direct property income.

The primary groups are:

• Public equity investors seeking dividend income and capital appreciation.
• Accredited investors utilizing 1031 exchanges for tax deferral.
• Middle-market companies as long-term commercial tenants.
• Institutional investors holding Operating Partnership (OP) Units.

For the public equity investors, the commitment to a dividend is a core part of the value proposition. The dividend metrics as of the third quarter of 2025 reflect this focus:

The Operating Partnership (OP) Unit holders represent a distinct investor class, often including insiders and those involved in property contributions. The structure of the Operating Partnership, Medalist Diversified Holdings, LP, is central to the UPREIT structure. For the six months ended June 30, 2025, the allocation to noncontrolling unit holders was significant:

The commercial tenants are the source of the REIT's operating revenue. Medalist Diversified REIT, Inc. (MDRR) owns a portfolio focused on specific commercial property types. This segment is crucial for generating the rental income that supports the dividend.

The property portfolio composition as of June 30, 2025, shows the direct customer base:

• Total Developed Properties Owned: 12
• Retail Center Properties: 4
• Flex Center Properties: 3
• Single Tenant Net Lease (STNL) Properties: 5

The financial scale of the property holdings directly impacts the tenant base size. Investment property, net, as reported in Q2 2025, stood at $59.9 million. The company has also been actively managing its asset base, completing the sale of the Salisbury Marketplace Shopping Center for $9.93 million.

Accredited investors and those using 1031 exchanges are served through the structure that allows for the issuance of OP Units, often in connection with property contributions, which is a common mechanism for tax-deferred exchanges into the REIT structure. The mention of a Delaware statutory trust (DST) program sponsorship further points to catering to investors seeking specific tax-advantaged real estate investment vehicles.

Medalist Diversified REIT, Inc. (MDRR) - Canvas Business Model: Cost Structure

You're looking at the cost side of the Medalist Diversified REIT, Inc. (MDRR) operation as of mid-2025. For a REIT, the cost structure is heavily weighted toward property-level expenses and the cost of capital. Here's the quick math on the major outflows for the second quarter of 2025, based on their reported results.

The primary recurring costs are tied directly to owning and operating the portfolio, which as of June 30, 2025, consisted of 12 developed properties, including retail, flex, and single-tenant net lease (STNL) assets.

The cost structure is clearly dominated by the day-to-day running of the properties. Property operating expenses were $2.20 million in Q2 2025. That's the cost of keeping the lights on, paying property taxes, insurance, and routine maintenance across the retail, flex, and STNL segments.

Financing costs are the next big piece. Interest expense on mortgages payable for Q2 2025 settled at $0.56 million. It's good to see that figure drop by 23% compared to the prior year, which helps the bottom line, even if the overall net loss widened year-to-date due to the lack of a large property sale gain seen in 1H 2024.

For property upkeep, Medalist Diversified REIT, Inc. funded $0.56 million of CapEx during the quarter, a direct cash outlay for maintenance and improvements. Separately, the accrued capital expenditures on the balance sheet as of June 30, 2025, stood at $87,017.

When mapping out the full structure, you need to account for the corporate layer and the specialized program costs, even if the exact dollar amounts aren't broken out in the same line item for the quarter. These are structural costs that support the business model:

• General and administrative (G&A) costs for corporate overhead.
• Costs related to DST program sponsorship and compliance.

The G&A component is a fixed-cost element of being a publicly-traded REIT, covering executive salaries, SEC compliance, and back-office functions. You saw total expenses for the three months ended September 30, 2025, increase primarily due to higher legal, accounting, and other professional fees, which fall under this G&A umbrella. The DST program costs are embedded within the operations of MDRR Sponsor TRS, LLC, which is the entity formed to serve as the sponsor for the Delaware Statutory Trust (DST) program. These costs cover the institutional-quality PPMs (Private Placement Memorandums) and FactRight verification expenses necessary to support that specific revenue stream.

Medalist Diversified REIT, Inc. (MDRR) - Canvas Business Model: Revenue Streams

You're looking at how Medalist Diversified REIT, Inc. (MDRR) brings in the cash, which is key for any REIT analysis. Honestly, the top line shows some movement in 2025. For the second quarter of 2025, the reported revenue hit \$2.47 million, which represented a 7.1% year-over-year increase. Things kept moving, because by the third quarter of 2025, revenue was up to \$2.79 million, showing growth of 19.23% over the prior year's third quarter. The trailing twelve months revenue, as of that late 2025 check, stood at \$10.10 million. That's the baseline we work from.

The biggest chunk of that comes from the core business: rental income from the diversified portfolio of commercial properties. As of June 30, 2025, Medalist Diversified REIT, Inc. owned and operated a specific mix of assets through its Operating Partnership. This forms the foundation of the recurring revenue stream you need to track.

• Four retail center properties.
• Three flex center properties.
• Five single tenant net lease (STNL) properties.
• Three undeveloped parcels.

Next up, we look at the less predictable, but still important, revenue components. Gains from the sale of investment properties, often called capital recycling, are a factor. To give you context, the first half of 2025 saw a net loss of $\$(1.53)$ million, partly because the prior year's first half benefited from a \$2.8 million property-sale gain. Also, you need to account for fees and income generated from the Delaware Statutory Trust (DST) sponsorship program, which is managed through one of their subsidiaries.

Here's a quick snapshot of the reported revenue performance we have for 2025 so far:

Finally, don't forget the newer, specialized revenue channels. Medalist Diversified REIT, Inc. operates Own Digital Treasury TRS, LLC, which was formed specifically to acquire and hold digital assets. While I don't have the exact 2025 income figure for that subsidiary yet, its existence signals a planned diversification in potential income sources beyond traditional real estate rents and DST fees. That's a definite area to watch for the next report.