Exhibit 99.2
Table of Contents
Years Ended December 31, 2021 and 2020
Definitions
Consolidated Balance Sheets as of December 31, 2021 and 2020
Consolidated Statements of Operations for the Years Ended December 31, 2021 and 2020
Consolidated Statements of Cash Flows for the Years Ended December 31, 2021 and 2020
Funds from Operations (FFO) and Adjusted Funds from Operations (AFFO) for the Years Ended December 31, 2021 and 2020
EBITDA Reconciliations – Years Ended December 31, 2021 and 2020
NOI Reconciliations – Years Ended December 31, 2021 and 2020
Same Property NOI Reconciliation
Same Property Statistics – Retail and Flex Properties
Same Property Statistics – Hotel Properties
Weighted Average Lease Term
Weighted Average Mortgage Payable Maturity
Weighted Average Mortgage Payable Interest Rate
Three Months Ended December 31, 2021 and 2020
Condensed Consolidated Statements of Operations for the Three Months Ended December 31, 2021 and 2020 (unaudited)
Funds from Operations (FFO) and Adjusted Funds from Operations (AFFO) for the Three Months Ended December 31, 2021 and 2020 (unaudited)
EBITDA Reconciliations – Three Months Ended December 31, 2021 and 2020 (unaudited)
NOI Reconciliations – Three Months Ended December 31, 2021 and 2021 (unaudited)
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 and realized gain on disposal of investment property.
• 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, loss on impairment, other income, net amortization of above and below market leases and realized gain on disposal of investment property. 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-K for the year ended December 31, 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, 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
Consolidated Balance Sheets
| | | December 31, | |
| | | 2021 | | | 2020 | |
| ASSETS | | | | | | | | |
| Investment properties, net | | $ | 69,407,915 | | | $ | 57,055,862 | |
| Cash | | | 4,370,405 | | | | 2,862,994 | |
| Restricted cash | | | 3,013,572 | | | | 2,233,934 | |
| Rent and other receivables, net of allowance of $13,010 and $4,693, as of December 31, 2021 and 2020, respectively | | | 466,141 | | | | 458,752 | |
| Assets held for sale | | | 9,846,208 | | | | 12,410,250 | |
| Unbilled rent | | | 872,322 | | | | 673,728 | |
| Intangible assets, net | | | 4,200,392 | | | | 3,256,362 | |
| Other assets | | | 370,133 | | | | 319,890 | |
| Total Assets | | $ | 92,547,088 | | | $ | 79,271,772 | |
| | | | | | | | | |
| LIABILITIES | | | | | | | | |
| Accounts payable and accrued liabilities | | $ | 1,307,257 | | | $ | 1,308,056 | |
| Intangible liabilities, net | | | 1,880,612 | | | | 1,022,497 | |
| Line of credit, short term, net | | | — | | | | 325,000 | |
| Notes payable | | | — | | | | 176,300 | |
| Convertible debentures, net | | | — | | | | 2,260,565 | |
| Mortgages payable, net | | | 54,517,822 | | | | 48,094,354 | |
| Mortgages payable, net, associated with assets held for sale | | | 7,615,368 | | | | 10,352,000 | |
| Mandatorily redeemable preferred stock, net | | | 4,227,640 | | | | 4,023,257 | |
| Total Liabilities | | $ | 69,548,699 | | | $ | 67,562,029 | |
| | | | | | | | | |
| EQUITY | | | | | | | | |
| Common stock, 16,052,617 and 4,803,445 shares issued and outstanding at December 31, 2021 and 2020, respectively | | $ | 160,526 | | | | 48,032 | |
| Additional paid-in capital | | | 49,645,426 | | | | 33,105,099 | |
| Offering costs | | | (3,350,946 | ) | | | (2,992,357 | ) |
| Accumulated deficit | | | (24,981,346 | ) | | | (19,298,987 | ) |
| Total Stockholders' Equity | | | 21,473,660 | | | | 10,861,787 | |
| Noncontrolling interests - Hampton Inn Property | | | — | | | | (224,383 | ) |
| Noncontrolling interests - Hanover Square Property | | | 146,603 | | | | 189,784 | |
| Noncontrolling interests - Parkway Property | | | 500,209 | | | | — | |
| Noncontrolling interests - Operating Partnership | | | 877,917 | | | | 882,555 | |
| Total Equity | | $ | 22,998,389 | | | $ | 11,709,743 | |
| Total Liabilities and Equity | | $ | 92,547,088 | | | $ | 79,271,772 | |
Medalist Diversified REIT, Inc. and Subsidiaries
Consolidated Statements of Operations
| | | Year Ending December 31, | |
| | | 2021 | | | 2020 | |
| REVENUE | | | | | | | | |
| Retail center property revenues | | $ | 4,719,289 | | | $ | 4,284,779 | |
| Retail center property tenant reimbursements | | | 915,107 | | | | 867,371 | |
| Flex center property revenues | | | 934,230 | | | | 559,641 | |
| Flex center property tenant reimbursements | | | 268,592 | | | | 227,193 | |
| Hotel property room revenues | | | 4,590,372 | | | | 3,207,405 | |
| Hotel property other revenues | | | 44,959 | | | | 129,771 | |
| Total Revenue | | $ | 11,472,549 | | | $ | 9,276,160 | |
| | | | | | | | | |
| OPERATING EXPENSES | | | | | | | | |
| Retail center property operating expenses | | $ | 1,518,973 | | | $ | 1,362,532 | |
| Flex center property operating expenses | | | 343,717 | | | | 231,209 | |
| Hotel property operating expenses | | | 3,102,951 | | | | 3,164,646 | |
| Bad debt expense | | | 39,024 | | | | 431,143 | |
| Share based compensation expenses | | | 149,981 | | | | 569,995 | |
| Legal, accounting and other professional fees | | | 1,465,199 | | | | 1,258,863 | |
| Corporate general and administrative expenses | | | 654,137 | | | | 300,641 | |
| Loss on impairment | | | — | | | | 223,097 | |
| Impairment of assets held for sale | | | — | | | | 3,494,058 | |
| Depreciation and amortization | | | 3,508,704 | | | | 3,981,874 | |
| Total Operating Expenses | | | 10,782,686 | | | | 15,018,058 | |
| Gain on disposal of investment properties | | | 124,641 | | | | — | |
| Operating income (loss) | | | 814,504 | | | | (5,741,898 | ) |
| Interest expense | | | 5,534,255 | | | | 3,960,626 | |
| Net Loss from Operations | | | (4,719,751 | ) | | | (9,702,524 | ) |
| Other income | | | 361,469 | | | | 120,982 | |
| Net Loss | | | (4,358,282 | ) | | | (9,581,542 | ) |
| Less: Net income (loss) attributable to Hampton Inn Property noncontrolling interests | | | 14,651 | | | | (1,131,765 | ) |
| Less: Net loss attributable to Hanover Square Property noncontrolling interests | | | (8,781 | ) | | | (23,167 | ) |
| Less: Net loss attributable to Parkway Property noncontrolling interests | | | (3,791 | ) | | | — | |
| Less: Net income (loss) attributable to Operating Partnership noncontrolling interests | | | 3,903 | | | | (246,001 | ) |
| Net Loss Attributable to Medalist Common Shareholders | | $ | (4,364,264 | ) | | $ | (8,180,609 | ) |
| | | | | | | | | |
| Loss per share from operations - basic and diluted | | $ | (0.33 | ) | | $ | (1.74 | ) |
| | | | | | | | | |
| Weighted-average number of shares - basic and diluted | | | 13,092,937 | | | | 4,709,980 | |
| | | | | | | | | |
| Dividends paid per common share | | $ | 0.04 | | | $ | 0.125 | |
Medalist Diversified REIT, Inc. and Subsidiaries
Consolidated Statements of Cash Flows
| | | Year ended December 31, | |
| | | 2021 | | | 2020 | |
| CASH FLOWS FROM OPERATING ACTIVITIES | | | | | | | | |
| | | | | | | | | |
| Net Loss | | $ | (4,358,282 | ) | | $ | (9,581,542 | ) |
| | | | | | | | | |
| Adjustments to reconcile consolidated net loss to net cash flows from operating activities | | | | | | | | |
| Depreciation | | | 2,415,139 | | | | 3,067,556 | |
| Amortization | | | 1,093,565 | | | | 914,318 | |
| Loan cost amortization | | | 103,180 | | | | 279,951 | |
| Mandatorily redeemable preferred stock issuance cost and discount amortization | | | 204,383 | | | | 162,375 | |
| Convertible debenture issuance cost, discount and beneficial conversion feature amortization | | | 1,718,487 | | | | 119,870 | |
| Amortization of tenant inducements | | | — | | | | 7,100 | |
| Above (below) market lease amortization, net | | | (24,024 | ) | | | 6,142 | |
| Bad debt expense | | | 39,024 | | | | 431,143 | |
| Note payable forgiveness | | | (176,300 | ) | | | (129,600 | ) |
| Share-based compensation | | | 149,981 | | | | 569,995 | |
| Impairment of assets held for sale | | | — | | | | 3,494,058 | |
| Loss on impairment | | | — | | | | 223,097 | |
| Gain on sale of investment property | | | (124,641 | ) | | | — | |
| | | | | | | | | |
| Changes in assets and liabilities | | | | | | | | |
| Rent and other receivables, net | | | (46,413 | ) | | | (740,513 | ) |
| Unbilled rent | | | (198,594 | ) | | | (212,840 | ) |
| Other assets | | | (50,243 | ) | | | (38,955 | ) |
| Accounts payable and accrued liabilities | | | 87,351 | | | | (257,089 | ) |
| Net cash flows from operating activities | | | 832,613 | | | | (1,684,934 | ) |
| | | | | | | | | |
| CASH FLOWS FROM INVESTING ACTIVITIES | | | | | | | | |
| | | | | | | | | |
| Investment property acquisitions, net of cash acquired and assumed debt | | | (20,750,571 | ) | | | — | |
| Capital expenditures | | | (536,685 | ) | | | (414,361 | ) |
| Cash received from disposal of investment properties | | | 2,144,529 | | | | — | |
| Net cash flows from investing activities | | | (19,142,727 | ) | | | (414,361 | ) |
| | | | | | | | | |
| CASH FLOWS FROM FINANCING ACTIVITIES | | | | | | | | |
| | | | | | | | | |
| Dividends and distributions paid | | | (1,151,304 | ) | | | (917,733 | ) |
| Investment of noncontrolling interests | | | 504,000 | | | | — | |
| Proceeds from line of credit, short term, net | | | — | | | | 550,000 | |
| Repayment of line of credit, short term | | | (325,000 | ) | | | (2,225,000 | ) |
| Repayment of related party notes payable, short term | | | — | | | | (852,000 | ) |
| Proceeds from notes payable | | | — | | | | 305,900 | |
| Proceeds from mortgages payable, net | | | 24,377,886 | | | | 1,938,697 | |
| Repayment of mortgages payable | | | (14,914,830 | ) | | | (463,196 | ) |
| Proceeds from sale of mandatorily preferred stock, net of capitalized offering costs | | | — | | | | 3,860,882 | |
| Proceeds from sale of convertible debentures, net of capitalized offering costs | | | 1,305,000 | | | | 2,926,483 | |
| Proceeds from sales of common stock, net of capitalized offering costs | | | 10,801,411 | | | | — | |
| Net cash flows from financing activities | | | 20,597,163 | | | | 5,124,033 | |
| | | | | | | | | |
| INCREASE IN CASH, CASH EQUIVALENTS AND RESTRICTED CASH | | | 2,287,049 | | | | 3,024,738 | |
| CASH, CASH EQUIVALENTS AND RESTRICTED CASH, beginning of period | | | 5,096,928 | | | | 2,072,190 | |
| CASH, CASH EQUIVALENTS AND RESTRICTED CASH, end of period | | $ | 7,383,977 | | | $ | 5,096,928 | |
| | | | | | | | | |
| CASH AND CASH EQUIVALENTS, end of period, shown in consolidated balance sheets | | | 4,370,405 | | | | 2,862,994 | |
| RESTRICTED CASH including assets restricted for capital and operating reserves and tenant deposits, end of period, shown in consolidated balance sheets | | | 3,013,572 | | | | 2,233,934 | |
| CASH, CASH EQUIVALENTS AND RESTRICTED CASH, end of period shown in the consolidated statements of cash flows | | $ | 7,383,977 | | | $ | 5,096,928 | |
| | | | | | | | | |
| Supplemental Disclosures and Non-Cash Activities: | | | | | | | | |
| | | | | | | | | |
| Other cash transactions: | | | | | | | | |
| Interest paid | | $ | 4,065,121 | | | $ | 3,276,544 | |
| | | | | | | | | |
| 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 | | | | — | |
| Assumption of mortgage debt, net | | | 4,481,600 | | | | — | |
| Forgiveness of note payable | | | 176,300 | | | | 129,600 | |
| Exchange for 7.55 percent of the noncontrolling interest in the Hampton Inn Property | | | — | | | | 867,000 | |
| Exchange for 3.00 percent of the noncontrolling interest in the Hampton Inn Property | | | — | | | | 1,021,960 | |
| Issuance of operating partnership interests in exchange for 3.45 percent of the noncontrolling | | | | | | | | |
| interest in the Hampton Inn Property | | | — | | | | 375,400 | |
| Conversion of operating partnership units to common shares | | | — | | | | 123,000 | |
Medalist Diversified REIT
Funds from Operations and Adjusted Funds from Operations
For the year ended December 31, 2021 and 2020
| | | Year ended | |
| | | December 31, | |
| | | 2021 | | | 2020 | |
| Funds from operations | | | | | | | | |
| Net Loss | | $ | (4,358,282 | ) | | $ | (9,581,542 | ) |
| Depreciation of tangible real property assets | | | 1,912,353 | | | | 2,705,017 | |
| Depreciation of tenant improvements | | | 437,372 | | | | 312,961 | |
| Amortization of tenant inducements | | | - | | | | 7,100 | |
| Amortization of leasing commissions | | | 65,414 | | | | 49,578 | |
| Amortization of intangible assets | | | 1,093,565 | | | | 914,318 | |
| Loss on impairment | | | - | | | | 223,097 | |
| Impairment of assets held for sale | | | - | | | | 3,494,058 | |
| Gain on sale of investment properties | | | (124,641 | ) | | | - | |
| Funds from operations | | $ | (974,219 | ) | | $ | (1,875,413 | ) |
| | | | | | | | | |
| Adjusted funds from operations | | | | | | | | |
| Funds from operations | | $ | (974,219 | ) | | $ | (1,875,413 | ) |
| Amortization of above market leases | | | 250,504 | | | | 221,390 | |
| Amortization of below market leases | | | (274,528 | ) | | | (215,248 | ) |
| Straight line rent | | | (198,594 | ) | | | (244,003 | ) |
| Capital expenditures | | | (536,685 | ) | | | (226,640 | ) |
| Decrease in fair value of interest rate cap | | | 27,281 | | | | 12,124 | |
| Amortization of loan issuance costs | | | 103,180 | | | | 279,951 | |
| Amortization of preferred stock discount and offering costs | | | 204,383 | | | | 162,375 | |
| Amortization of convertible debenture discount, offering costs and beneficial conversion feature | | | 1,718,487 | | | | - | |
| Share-based compensation | | | 149,981 | | | | 569,995 | |
| Write off unbilled rent | | | - | | | | 31,162 | |
| Bad debt expense | | | 39,024 | | | | 431,143 | |
| Debt forgiveness | | | (176,300 | ) | | | (129,600 | ) |
| Adjusted funds from operations (AFFO) | | $ | 332,514 | | | $ | (982,764 | ) |
EBITDA Reconciliation
| | | Year ended | |
| | | December 31 | |
| | | 2021 | | | 2020 | |
| Net Loss | | $ | (4,358,282 | ) | | $ | (9,581,542 | ) |
| Plus: Preferred dividends, including amortization of capitalized issuance costs | | | 604,383 | | | | 506,819 | |
| Plus: Interest expense, including amortization of capitalized loan issuance costs | | | 4,929,872 | | | | 3,453,807 | |
| Plus: Depreciation expense | | | 2,415,139 | | | | 3,067,556 | |
| Plus: Amortization of intangible assets | | | 1,093,565 | | | | 914,318 | |
| (Less) Plus: Net amortization of above and below market leases | | | (24,024 | ) | | | 6,142 | |
| Less: Realized gain on disposal of investment property | | | (124,641 | ) | | | - | |
| EBITDA | | $ | 4,536,012 | | | $ | (1,632,900 | ) |
NOI Reconciliation
| | | Year ended | |
| | | December 31, | |
| Net Operating Income | | 2021 | | | 2020 | |
| Net Loss | | $ | (4,358,282 | ) | | $ | (9,581,542 | ) |
| Plus: Preferred dividends, including amortization of capitalized issuance costs | | | 604,383 | | | | 506,819 | |
| Plus: Legal, accounting and other professional fees | | | 1,465,199 | | | | 1,258,863 | |
| Plus: Corporate general and administrative expenses | | | 654,137 | | | | 300,641 | |
| Plus: Depreciation expense | | | 2,415,139 | | | | 3,067,556 | |
| Plus: Amortization of intangible assets | | | 1,093,565 | | | | 914,318 | |
| Plus: Interest expense, including amortization of capitalized loan issuance costs | | | 4,929,872 | | | | 3,453,807 | |
| Plus: Share based compensation expense | | | 149,981 | | | | 569,995 | |
| Plus: Loss on impairment | | | - | | | | 3,717,155 | |
| Less: Other income | | | (361,469 | ) | | | (120,982 | ) |
| (Less) Plus: Net amortization of above and below market leases | | | (24,024 | ) | | | 6,142 | |
| Less: Realized gain on disposal of investment property | | | (124,641 | ) | | | - | |
| Net Operating Income - NOI | | $ | 6,443,860 | | | $ | 4,092,772 | |
| | | Year ended | |
| | | December 31, | |
| | | 2021 | | | 2020 | |
| Components of Net Operating Income | | | | | | | | |
| Revenues: | | | | | | | | |
| Retail and flex property rental revenues (1) | | $ | 5,629,495 | | | $ | 4,850,562 | |
| Retail and flex property tenant reimbursement revenues | | | 1,183,699 | | | | 1,094,564 | |
| Hotel property revenues | | | 4,635,331 | | | | 3,337,176 | |
| Total revenues | | | 11,448,525 | | | | 9,282,302 | |
| | | | | | | | | |
| Operating expenses: | | | | | | | | |
| Retail and flex property operating expenses | | | 1,862,690 | | | | 1,593,741 | |
| Hotel property operating expenses | | | 3,102,951 | | | | 3,164,646 | |
| Bad debt expense | | | 39,024 | | | | 431,143 | |
| Total operating expenses | | | 5,004,665 | | | | 5,189,530 | |
| | | | | | | | | |
| Net Operating Income - NOI | | $ | 6,443,860 | | | $ | 4,092,772 | |
| (1) | Excludes amortization of above and below market leases. |
Same Property NOI Reconciliation
| | | For the year ended | | | | | | | |
| | | December 31, | | | | | | | |
| | | 2021 | | | 2020 | | | Change ($) | | | Change (%) | |
| Revenues | | | | | | | | | | | | | | | | |
| Same Property NOI | | $ | 5,356,593 | | | $ | 4,089,774 | | | $ | 1,266,819 | | | | 31 | % |
| NOI of properties purchased subsequent to December 31, 2020 (1) | | | 847,635 | | | | - | | | | 847,635 | | | | | |
| NOI of properties sold subsequent to December 31, 2020 (2) | | | 239,632 | | | | 2,998 | | | | 236,634 | | | | | |
| Total NOI | | $ | 6,443,860 | | | $ | 4,092,772 | | | $ | 2,351,088 | | | | 57 | % |
| (1) | Lancer Center, Greenbrier Business Center and Parkway |
| (2) | Greensboro Hampton Inn |
Same Property Statistics – Retail and Flex Properties
Total Retail and Flex Properties
| | | Number of Properties | | | Total Square Feet | | | Occupancy | |
| | | As of December 31, | | | As of December 31, | | | As of December 31, | |
| | | 2021 | | | 2020 | | | 2021 | | | 2020 | | | 2021 | | | 2020 | |
| Retail | | | 4 | | | | 3 | | | | 546,661 | | | | 368,035 | | | | 95.4 | % | | | 92.7 | % |
| Flex | | | 3 | | | | 1 | | | | 218,279 | | | | 64,880 | | | | 94.6 | % | | | 93.8 | % |
| Total | | | 7 | | | | 4 | | | | 764,940 | | | | 432,915 | | | | 95.2 | % | | | 92.8 | % |
Retail and Flex - Same Properties
| | | Number of Properties | | | Total Square Feet | | | Occupancy | |
| | | As of December 31, | | | As of December 31, | | | As of December 31, | |
| | | 2021 | | | 2020 | | | 2021 | | | 2020 | | | 2021 | | | 2020 | |
| Retail (3) | | | 3 | | | | 3 | | | | 368,035 | | | | 368,035 | | | | 93.1 | % | | | 92.7 | % |
| Flex (1) | | | 1 | | | | 1 | | | | 64,880 | | | | 64,880 | | | | 100.0 | % | | | 93.8 | % |
| Total (4) | | | 4 | | | | 4 | | | | 432,915 | | | | 432,915 | | | | 94.2 | % | | | 92.8 | % |
Same Property Statistics – Hotel Properties
Total Hotel Properties
| | | Number of Properties | | | Total Rooms | | | Occupancy | |
| | | As of December 31, | | | As of December 31, | | | As of December 31, | |
| | | 2021 | | | 2020 | | | 2021 | | | 2020 | | | 2021 | | | 2020 | |
| Hotel | | | 1 | | | | 2 | | | | 148 | | | | 272 | | | | 90.4 | % | | | 46.2 | % |
Hotel Same Properties
| | | Number of Properties | | | Total Rooms | | | Occupancy | |
| | | As of December 31, | | | As of December 31, | | | As of December 31, | |
| | | 2021 | | | 2020 | | | 2021 | | | 2020 | | | 2021 | | | 2020 | |
| Hotel | | | 1 | | | | 1 | | | | 148 | | | | 148 | | | | 100.0 | % | | | 47.2 | % |
Weighted Average Lease Term
| Retail Properties | | | | |
| Ashley Plaza | | | 6.49 | |
| Franklin Square | | | 3.90 | |
| Hanover Square | | | 3.29 | |
| Lancer Center | | | 4.22 | |
| Retail Property Average | | | 4.88 | |
| | | | | |
| Flex Properties | | | | |
| Brookfield | | | 3.70 | |
| Greenbrier Business Center | | | 1.50 | |
| Parkway | | | 2.02 | |
| Flex Property Average | | | 2.31 | |
| | | | | |
| Retail and Flex Property Average | | | 4.00 | |
Weighted Average Debt Data
| Weighted Average Mortgage Maturity (Years) | | | 6.33 | |
| | | | | |
| Weighted Average Mortgage Payable Interest Rate | | | 4.2 | % |
Medalist Diversified REIT
Condensed Consolidated Statements of Operations
For the three months ended December 31, 2021 and 2020
| | | Three Months Ended
December 31, | |
| | | 2021 | | | 2020 | |
| | | (Unaudited) | | | (Unaudited) | |
| REVENUE | | | | | | | | |
| Retail center property revenues | | $ | 1,277,726 | | | $ | 994,058 | |
| Retail center property tenant reimbursements | | | 307,461 | | | | 205,145 | |
| Flex center property revenues | | | 447,543 | | | | 139,704 | |
| Flex center property tenant reimbursements | | | 125,272 | | | | 59,369 | |
| Hotel property room revenues | | | 619,824 | | | | 974,906 | |
| Hotel property other revenues | | | 6,466 | | | | 23,567 | |
| Total Revenue | | $ | 2,784,292 | | | $ | 2,396,749 | |
| | | | | | | | | |
| OPERATING EXPENSES | | | | | | | | |
| Retail center property operating expenses | | $ | 439,959 | | | $ | 329,363 | |
| Flex center property operating expenses | | | 146,868 | | | | 74,894 | |
| Hotel property operating expenses | | | 369,373 | | | | 765,235 | |
| Bad debt expense | | | 13,010 | | | | 96,674 | |
| Legal, accounting and other professional fees | | | 365,318 | | | | 245,151 | |
| Corporate general and administrative expenses | | | 85,658 | | | | 59,603 | |
| Impairment of assets held for sale | | | - | | | | 3,494,058 | |
| Depreciation and amortization | | | 1,147,490 | | | | 965,847 | |
| Total Operating Expenses | | | 2,567,676 | | | | 6,030,825 | |
| Operating (loss) income | | | 216,616 | | | | (3,634,076 | ) |
| Interest expense | | | 925,057 | | | | 1,095,289 | |
| Net Loss from Operations | | | (708,441 | ) | | | (4,729,365 | ) |
| Other income | | | 174,191 | | | | 120,488 | |
| Net Loss | | | (534,250 | ) | | | (4,608,877 | ) |
| Less: Net loss attributable to Hampton Inn Property noncontrolling interests | | | (5,194 | ) | | | (873,066 | ) |
| Less: Net income (loss) attributable to Hanover Square Property noncontrolling interests | | | 5,617 | | | | (3,061 | ) |
| Less: Net loss attributable to Parkway Property noncontrolling interests | | | (3,791 | ) | | | - | |
| Less: Net income (loss) attributable to Operating Partnership noncontrolling interests | | | 880 | | | | (133,951 | ) |
| Net Loss Attributable to Medalist Common Shareholders | | $ | (531,762 | ) | | $ | (3,598,799 | ) |
| | | | | | | | | |
| Loss per share from operations - basic and diluted | | $ | (0.03 | ) | | $ | (0.75 | ) |
| | | | | | | | | |
| Weighted-average number of shares - basic and diluted | | | 16,052,617 | | | | 4,803,445 | |
| | | | | | | | | |
| Dividends paid per common share | | $ | 0.02 | | | $ | - | |
Medalist Diversified REIT
Funds from Operations and Adjusted Funds from Operations
For the three months ended December 31, 2021 and 2020
| | | Three Months Ended
December 31, | |
| | | 2021 | | | 2020 | |
| | | (Unaudited) | | | (Unaudited) | |
| Funds from operations | | | | | | | | |
| Net loss | | $ | (534,250 | ) | | $ | (4,608,877 | ) |
| Depreciation of tangible real property assets | | | 587,125 | | | | 677,864 | |
| Depreciation of tenant improvements | | | 144,737 | | | | 74,334 | |
| Amortization of leasing commissions | | | 18,074 | | | | 15,181 | |
| Amortization of intangible assets | | | 397,554 | | | | 198,468 | |
| Impairment of assets held for sale | | | - | | | | 3,494,058 | |
| Funds from operations | | $ | 613,240 | | | $ | (148,972 | ) |
| | | | | | | | | |
| Adjusted funds from operations | | | | | | | | |
| Funds from operations | | $ | 613,240 | | | $ | (148,972 | ) |
| Amortization of above market leases | | | 69,701 | | | | 53,613 | |
| Amortization of below market leases | | | (91,375 | ) | | | (50,379 | ) |
| Straight line rent | | | (33,617 | ) | | | (43,809 | ) |
| Capital expenditures | | | (253,667 | ) | | | (24,078 | ) |
| Decrease in fair value of interest rate cap | | | 27,091 | | | | 10,301 | |
| Amortization of loan issuance costs | | | 22,469 | | | | 52,829 | |
| Amortization of preferred stock discount and offering costs | | | 52,767 | | | | 48,388 | |
| Bad debt expense | | | 13,010 | | | | 96,674 | |
| Debt forgiveness | | | - | | | | (129,600 | ) |
| Adjusted funds from operations (AFFO) | | $ | 419,619 | | | $ | (135,033 | ) |
Medalist Diversified REIT
EBITDA Reconciliation to Net Loss
For the three months ended December 31, 2021 and 2020
| | | Three Months Ended
December 31, | |
| | | 2021 | | | 2020 | |
| | | (Unaudited) | | | (Unaudited) | |
| EBITDA | | | | | | | | |
| Net Loss | | $ | (534,250 | ) | | $ | (4,608,877 | ) |
| Plus: Preferred dividends, including amortization of capitalized issuance costs | | | 152,767 | | | | 148,388 | |
| Plus: Interest expense, including amortization of capitalized loan issuance costs | | | 772,290 | | | | 946,901 | |
| Plus: Depreciation expense | | | 749,936 | | | | 767,379 | |
| Plus: Amortization of intangible assets | | | 397,554 | | | | 198,468 | |
| Less: Net amortization of above and below market leases | | | (21,674 | ) | | | 3,234 | |
| EBITDA | | $ | 1,516,623 | | | $ | (2,544,507 | ) |
Medalist Diversified REIT
Net Operating Income Reconciliation to Net Loss
For the three months ended December 31, 2021 and 2020
| | | Three Months Ended
December 31, | |
| | | 2021 | | | 2020 | |
| | | (Unaudited) | | | (Unaudited) | |
| Net Operating Income | | | | | | | | |
| Net Loss | | $ | (534,250 | ) | | $ | (4,608,877 | ) |
| Plus: Preferred dividends, including amortization of capitalized issuance costs | | | 152,767 | | | | 148,388 | |
| Plus: Legal, accounting and other professional fees | | | 365,318 | | | | 245,151 | |
| Plus: Corporate general and administrative expenses | | | 85,658 | | | | 59,603 | |
| Plus: Depreciation expense | | | 749,936 | | | | 767,379 | |
| Plus: Amortization of intangible assets | | | 397,554 | | | | 198,468 | |
| Plus: Interest expense, including amortization of capitalized loan issuance costs | | | 772,290 | | | | 946,901 | |
| Plus: Impairment on assets held for sale | | | - | | | | 3,494,058 | |
| Less: Other income | | | (174,191 | ) | | | (120,488 | ) |
| Less: Net amortization of above and below market leases | | | (21,674 | ) | | | 3,234 | |
| Less: Realized gain on disposal of investment properties | | | - | | | | - | |
| Net Operating Income - NOI | | $ | 1,793,408 | | | $ | 1,133,817 | |
| | | Three Months Ended
December 31, | |
| | | 2021 | | | 2020 | |
| | | (Unaudited) | | | (Unaudited) | |
| Components of Net Operating Income | | | | | | | | |
| Revenues: | | | | | | | | |
| Retail and flex property rental revenues (1) | | $ | 1,703,595 | | | $ | 1,136,996 | |
| Retail and flex property tenant reimbursement revenues | | | 432,733 | | | | 264,514 | |
| Hotel property revenues | | | 626,290 | | | | 998,473 | |
| Total revenues | | | 2,762,618 | | | | 2,399,983 | |
| | | | | | | | | |
| Operating expenses: | | | | | | | | |
| Retail and flex property operating expenses | | | 586,827 | | | | 404,257 | |
| Hotel property operating expenses | | | 369,373 | | | | 765,235 | |
| Bad debt expense | | | 13,010 | | | | 96,674 | |
| Total operating expenses | | | 969,210 | | | | 1,266,166 | |
| Net Operating Income - NOI | | $ | 1,793,408 | | | $ | 1,133,817 | |
| (1) | Excludes amortization of above and below market leases. |
