MDRR - Earnings call transcript Q4 2019 | Medalist Diversified REIT, Inc.

Due to licensing restrictions, you must log in to view earnings call transcripts.

Operator

Good morning. Welcome to Medalist Diversified REIT Fourth Quarter and Fiscal Year 2019 Earnings Call and Update. On March 4th, the company issued a press release that provided an overview of its results. Today's conference is being recorded and will be available online. [Operator Instructions]

Harbor we future to constitute of expectations, for of begins, various everyone forward-looking XXXX. call Private purposes about the remarks plans Safe the would Reform remind like that statements Securities Before Litigation under Act provisions and prospects may those filing Medalists that indicated described the forward-looking company's including the and these to SEC. results that are subject risks actual cautious risk differ with to statements uncertainties cause materially from in only as made Xth, on this speak Monday, conference Any today's forward-looking March of call XXXX. statements date, And these Medalist after events that does any not intend to occur forward-looking or us see would today's of reflect date. statements to circumstances

With the Messier. call that CEO, turn Tim like Please and I to over go to would Chairman ahead.

Tim Messier

call. Good And morning, on Hey. everyone. thanks for the getting

-- call. we an is said, Moore earnings As are this

will with attractive a to In quarter, the our property some great of our However, by properties. a Carolina, and size portfolio three great fourth company already in Center, Clemson, other three listing assets. time. Greenville, flex the of attached very of company South this I hotel fundamentals start in the South at Carolina the attractive we doubled of Shopping

fourth six earnings revenues properties us. we in and quarter creating So for a had

call. it turn that you questions have to then to we'll along. will say And regarding move I this I'd like ask that our access earnings with that me to [Brent], need any about we over talk and as after we to

XXX-XXX-XXXX. Brent? me on may You call

Brent

Good morning.

As of off Tim bigger picture some like mentioned, to start items. with kind major

XXst, by six $XX XXXX, XXXX size December to from our portfolio doubled assets our which During quarter over properties assets. of the fourth three million increase

three to million which due that three was that to fourth all the increased properties quarter and revenues During the and during the our quarter. fourth XX.X% had of fourth closed $X.X acquisitions benefit the XXXX we over quarter, the

non-recurring primarily and fourth the quarter, on a based impairment. loss in non-cash also decrease items a share we expenses During saw compensation

$X.X a quarter December compared the was ended for quarter loss million net XXst, for XXXX. $XXX,XXX to Our the

As a depreciation non-cash very items. have REIT, we heavy and amortization

primarily for we forward flow net see talking we adjusted stronger going about non-cash but items, be forward. when losses So going will will start cash to those

a This which supplemental we into FFO financial is use. that measure leads a

XXXX, $XXX,XXX over quarter quarter $X.XX increased fourth per ended to This AFFO share. our $XXX,XXX is by XXXX. the December the XX, common fourth During a

loss prior For is of year. the our a and million costs. full of expenses million amortization year, non-recurring $X.X to net Again, compared this $X.X depreciation function and heavy was

$XXX,XXX operations and significantly as Our substantially increased -- from in AFFO XXXX $X over looking fourth the quarter $XXX,XXX our to also our said at negative I funds our increase. FFO, quarter AFFO million in from increased but XXXX, fourth positive

not X% to which in primary the we or are higher do add them know; year. the in tertiary plans properties to southeast date X% We to we future close accretive markets and our don't REIT. forward, in to the much significantly create for the We the in the prediction yet. southeast. for more close in we cap a the buying a closing secondary of when flow two a will half going they will plan near to of properties So one be term, but cash have first to of cities have -- the grow Don't rates yields expect

up that earnings. With questions our open I it will regarding for

Operator

Instructions] [Operator

Zakur [Ben from is question with Capital]. first Eligius Our Please proceed.

UnidentifiedAnalyst

that results, might both a to a of guess have and the definitely underlying business your just out looking quarter questions your congratulations off, the XXXX? kind outlook the you and two also now guys maybe my quarter pretty view then and nice into and Could what fourth jump hotels. taking for I for Thanks seasonality guys. as factors you and metrics. turn of kind own expectations in around talk and strong but on about kick the I morning, played how Good

TimMessier

These past is December business in have lower. the owned limited we in and group the that now -- seasonality a and and lower is we where hotels and November travel would sometimes travel usually own service Sure. in January,

always allow we for to have that. So

seasonality and the some two in hotels have December. We November in

We to are quarter up our first years second quarter. significantly both the I activities and pick revenues said the pick should trips and located and in the there quarter. certainly second expect into revenue into in In up the going situations, other group are see we where fourth like and hotels

UnidentifiedAnalyst

change tell? in to you the then of still too quickly And staying I, could to on or coronavirus you. notwithstanding any early potential about. topic just the hotels. seen that real change yet is demand of talking the Have Got or kind you're attributable seasonality be it

TimMessier

seen not have other checked result rooms as seen we of with really are managers We've every demand have any hotel our that. with that a an change day yet. problems And not We that booking in basis. any on

UnidentifiedAnalyst

had How high there to leases XXXX. were shaping some in lease conversations set tenants just, Are with how On those far? schedule, you believe updates thus you there from that are Understood. that provide? expire are expiration out your any a level I could

TimMessier

tenants We usually six their wait active to not before months are yet. -- expirations. till We prior they current

leasing arrangements, our We usually a to until prior we agents maturity. six tenant that's so handle use And but outside strategy. months to leasing wait our

UnidentifiedAnalyst

there some the types think Could started on be centers? half. I flavor pipeline? a trip but you sticking like the foray companies' first know retails market maybe to about the always that talk think at southeast, looking looking big or in your you in anything at? maybe of assets talking are of guys closing is you assets kind want guys maybe are you you you the about touching you then what get will be Just more might a for do And with do deployment into multifamily you'll do Understood. the

TimMessier

is feet area there's road Chesapeake, our in in flex expensive Well, The Boulevard In we in where auto economic took line. Bill of activity. a Newport News one a main and multifamily; a multifamily. XX,XXX shopping News. have a properties a right great on The radar center square a a it's Warwick we love are Chesapeake Virginia Newport, purchasing now. lot in or strategy little zone property other properties, acres two heavily on true there Virginia on of traveled located

UnidentifiedAnalyst

that that towards are favorable. touching costs everyone's all home just events, think back obviously of then of continue And or rush on patience viewing deploying And to kind I'm I to get bringing mind How the debt is back the the current coronavirus. capital? very asking because which you

So is there's history than in recent some it's the in better been debt still ultra long-term cheap, uncertainty. opportunity now. probably But to lock also some right

little just to trying see out that going markets? or the and debt low properties maybe to how in you the a bit at think take now be more cost still advantage of are do you with So you're and looking to lock trying really cautious guys and you're wait plays everything right

TimMessier

very [free for we assets. face shopping around shopping a XX cheap to very, I I now asset] hotels, right or get could X We would we've think multifamily numbers debt. say Yes. question property and the seen years X% on now neighborhood it's center, all latest I center, X.XX right a fixed, X.XX mean flex X.X most way sub on

basketball southeast. are coronavirus hand-wringing in week. have is going Coast on the We the on. seen still this a not regarding still Activities lot tournament Atlantic Conference, The of for for ACC

which Greensboro Furniture that is one in Mart a We Hampton Inn benefit will area has there. a our no is huge the event canceled that have

about So seen worried in of we area haven't as real our any the coronavirus yet.

crossed our that So And fingers my keep we opinion. can in we're in if very regard want. fortunate we

UnidentifiedAnalyst

filing Great. that Well, I again when I XX-K look just comes there. the out and listen, want say the to to appreciate reviewing congratulations. clarity forward

I the you've assembling. think of kind certainly sequential the has value the earnings jump of been in properties showing

Operator

with from Wheeler next Investments. John Wheeler is proceed. Estate question Real Our Please

JohnWheeler

It's couple to touch I How morning? John well. y'all doing guys. online ask morning, Tim? telephone as offline Want like this Could number, questions you Good and your a that Wheeler. had repeat base; to I'd

TimMessier

Sure. XXX-XXX-XXXX.

JohnWheeler

the like of the SEC I financials XXXX, three on of agree all it looking My thank and six. again from quarter just that right, Congratulations $X.XX you're assuming and was doubling on paying fourth you annualized it. an previous website only be size out it question number quarter. more the looks annualized appreciate $X.XX a based I earned some the the is was at portfolio the may in paying with of first quarters that offline again $X.XX, you upon if you're four and times caller. would the but you. to I fourth question, share

that get your more paying you're comment do like I'd question XX% because you're than earning. pretty to aggressive. about is out when my a it seems math on the So And that on you what

that address For you're if earning and $X.XXX, could if out you're example, paying first question? $X.XX you

TimMessier

they If hotels two the over to November been in year covering they The perform do way close issues December. had through normally we've our covering seasonality the and dividend. very the or Sure.

JohnWheeler

you you basis. if could use a So as quarter's that you bridge quarterly think fourth could benchmark you on a metric, XX% bridge that results

for So QX year? QX over last

TimMessier

over to today. year with financials - QX QX last has the QX do nothing

JohnWheeler

sorry. you statement talking earned what report QX when I'm about your incentive based I'm no. XXXX - Oh, about talk I'm -- on was of you if

TimMessier

were our QX. in covering expect the them be QX, we we better. perform better QX hotels dividend to It perform closer than if QX much should to because in to we expect

of quarters. either over are close couple very we So to getting covering or

JohnWheeler

NASDAQ, and traditionally, in Okay. traditionally market the I retail discounts that REITs your That's you the you hotels, but mentioned this REIT I office warehouse, you good and to about hear. or heard know Tell only not are me and morning diversified apartments. market diversified

individually product types with type three four that different financials then did those would different combined? consolidated you Are you be a each that product internally on currently property If running and types. statement have

TimMessier

real this estate out in correct. Bill strategy Elliott's experience born of That's the is Look, space. commercial

multifamily retail, Our large comprised property property build limited industrial, of malls. neighborhood is those four shopping real necessity And to strategy service portfolio estate and types. types hotels, four workforce reflect a not

JohnWheeler

Okay.

TimMessier

since as equity managed we have private a and REIT. company property not owned started and We that

JohnWheeler

you. Thank Okay.

the the estate and my publicly high So REITs, XX-week about at today. the where is externally is real like management. tell discounted like down XX%. you're traded When where stock it trust, managed externally company when look It investment stock I versus diversified investment as experience trusts was me is looks the is managed estate you're discounted. real a When external they're a

If weeks you versus ago look today. at XX

external management. So if could you address

TimMessier

Yes. John. I'll that address offline,

We'll that. talk my back me about call number. could on You

Our that's question. back strong. wants that If fundamentals diversified REIT call may the their to us because you discount option. are But very on me we're

JohnWheeler

Good. I Okay. will.

have comments I hold I'll some there answers and you'll transparent stockholder being Okay. I me. sure will be more I'm my think that questions hardliner because direct a need with

TimMessier

Absolutely. Sure.

Q&A of End

Operator

back turn remarks. additional With the would over more closing to in Mr. the conference to I queue, further no like Messier for questions

Tim Messier

on call morning. getting the for everyone this thanks Again,

as we happy to the We along. future. with are we very We to very properties plan move We're about excited our add Again, plan grow. earnings.

We this the we have us. strong And we're being team people happy morning. of very thank working now. you And with extremely is on where company for

Operator

does much Ladies conclude for that our your participation. and conference Have for day. you Thank so a today. wonderful gentlemen,

You may disconnect. now

Medalist Diversified REIT (MDRR) 9 Mar 202019 Q4 Earnings call transcript