Market Overview

Medalist Diversified REIT Prices $4.6 Million Underwritten Public Offering of Series A Preferred Stock

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Medalist Diversified REIT, Inc. (NASDAQ:MDRR) (the "Company"), a Virginia-based real estate investment trust that specializes in acquiring, owning and managing value-add commercial real estate in the Mid-Atlantic and Southeast regions, announced today the pricing of its underwritten public offering with gross proceeds to the Company expected to be $4,600,000 before deducting underwriting discounts, commissions, and expenses. The proposed offering equates to 200,000 shares of the Company's 8.0% Series A Cumulative Redeemable Preferred Stock, liquidation preference of $25.00 per share, at a public offering price of $23.00 per share. The Company has applied to list the Series A Preferred Stock on the Nasdaq Capital Market under the symbol "MDRRP." The offering is expected to close on or about February 19, 2020, subject to customary closing conditions. The Company intends to use the net proceeds from the offering to acquire additional properties, for working capital, for general corporate purposes, and to repay outstanding debt. In addition, a portion of the net proceeds from the offering in an amount equal to the first four quarterly dividends of the Series A Preferred Stock will be placed into an irrevocable escrow account with such funds to be released to the holders of Series A Preferred Stock upon the declaration of such dividends.

The Company has granted the underwriters a 45-day option to purchase up to an additional 15% of the number of shares of Series A Preferred Stock offered in the public offering to cover overallotments, if any.

Aegis Capital Corp. is acting as sole bookrunner for the offering and Maxim Group LLC is serving as the Company's financial advisor.

The offering of these securities will be made only by means of a prospectus. A registration statement relating to these securities has been declared effective by the Securities and Exchange Commission. This press release does not constitute an offer to sell or the solicitation of an offer to buy, nor shall there be any sale of these securities in any state or jurisdiction in which such offer, solicitation, or sale would be unlawful prior to registration or qualification under the securities laws of any such state or jurisdiction.

Electronic copies of the final prospectus, when available, may be obtained by contacting Aegis Capital Corp., Attention: Syndicate Department, 810 7th Avenue, 18th floor, New York, NY 10019, by email at syndicate@aegiscap.com, or by telephone at (212) 813-1010. Before investing in this offering, interested parties should read in its entirety the prospectus which provides more information about the Company and such offering. The final prospectus, when it is available, may also be obtained on the Securities and Exchange Commission's Web site at www.sec.gov.

About Medalist Diversified REIT

Medalist Diversified REIT Inc. is a Virginia-based real estate investment trust that specializes in acquiring, owning and managing value-add commercial real estate in the Mid-Atlantic and Southeast regions. The Company's strategy is to focus on value-add and opportunistic commercial real estate which is expected to provide an attractive balance of risk and returns. Medalist utilizes a rigorous, consistent and replicable process for sourcing and conducting due diligence of acquisitions. The Company seeks to maximize operating performance of current properties by utilizing a hands-on approach to property management while monitoring the middle market real estate markets in the southeast for acquisition opportunities and disposal of properties as considered appropriate. For more information on Medalist, please visit the Company website at https://www.medalistreit.com.

Safe Harbor Disclosure

This press release contains statements that are "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995, Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, and other federal securities laws. Forward looking statements are statements that are not historical, including statements regarding management's intentions, beliefs, expectations, representations, plans or predictions of the future, and are typically identified by such words as "believe," "expect," "anticipate," "intend," "estimate," "may," "will," "should" and "could." Because such statements include risks, uncertainties and contingencies, actual results may differ materially from those expressed or implied by such forward looking statements. These forward-looking statements are based upon the Company's present expectations, but these statements are not guaranteed to occur, including, without limitation, with respect to the completion of the public offering on the terms described or at all. For example, the fact that this offering has priced may imply that the offering will close, but the closing is subject to certain conditions customary in transactions of this type and may be delayed or may not occur at all. In addition, the underwriters' option to purchase additional shares may imply that this option will be exercised; however, the underwriters are not under any obligation to exercise this option, or any portion of it, and may not do so. Furthermore, the Company disclaims any obligation to publicly update or revise any forward-looking statement to reflect changes in underlying assumptions or factors, of new information, data or methods, future events or other changes. Investors should not place undue reliance upon forward-looking statements. For further discussion of the factors that could affect outcomes, please refer to the "Risk Factors" section of the prospectus, and in the Company's annual and periodic reports and other documents filed with the SEC, copies of which are available on the SEC's website, www.sec.gov.

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