Medalist REIT shareholders demand change after net losses for two years

Highlights financial losses of Medalist REIT (MDRR). All information presented is verifiable through MDRR's 2022 10K fillings. It introduces a shareholder campaign started by Jon S. Wheeler to replace three independent board members. Reviews the operating losses for MDRR of $9 million for 2021 and 2022. Reports current management compensation for Thomas E. Messier and William R. Elliott - outlines their compensation of $6,885,029 and an additional termination fee of $2,628,147, all reported in the company's 2022 10K filings.

VIRGINIA BEACH, Va., April 10, 2023 /PRNewswire-PRWeb/ -- Shareholders of Medalist Diversified REIT, Inc. (the "Company" or "Medalist"), are demanding change and calling out the failures of the company's management team and board of directors. They seek to replace three current board members - Neil Farmer, Charles Pearson and Timothy O'Brien - to protect shareholder interest.

MDRR's management, Thomas E. Messier and William R. Elliott, have received compensation of $6,885,029 since the company's inception and have now secured a termination fee that adds another $2,628,147 to their compensation. This concerns shareholders, given MDRR has never been profitable, and its performance continues to decline. In fact, the company posted over ($ 9,000,000) of net losses in 2022 and 2021 ($4,732,214 and $4,358,282, respectively) according to annual financial statements.

With declines in AFFO (Adjusted Funds from Operations) and revenues, alongside increasing operating expenses and net losses, MDRR has been struggling to keep itself upright. All while MDRR's performance continues to deteriorate:

• AFFO: $241,024 in 2022
• Revenues: $11,091,325 in 2022 (versus $11,473,549 in 2021)
• Operating Expenses: $11,694,648 in 2022 (up from $10,772,686 in 2021)
• Net Loss: ($4,732,214) in 2022 (increased from ($4,358,282) loss in 2021)

To add to shareholder concerns, termination agreements were approved by the board that allows management to collect millions. The termination fee, as outlined in the current 10K, is calculated as three times the 2022 Asset Management Fee and stands at a staggering $2,628,147.

REIT investor Jon S. Wheeler and other shareholders are calling for the appointment of an independent board of directors emphasizing transparency, accountability, and effective and sound decision-making.

"As a shareholder, I have spoken with other unhappy equity holders, specifically to three shareholders who represent 25% of the outstanding equity. They, like me, support a reconstitution of the existing board. Management receiving over $9,000,000 in compensation is inappropriate in a company that has lost more than ($9,090,496) and had a share price decline from $10.00 to $0.82 per share."

For more information:

Jon S. Wheeler
Founder & Former Chairman & CEO
Wheeler Real Estate Investment Trust as Traded on NASDAQ

To contact Jon S. Wheeler, please email or call at jon@wrei.net or (757) 621-2873. To learn more or access shareholder letters, visit http://www.mdrrshareholder.com/.

About Medalist Diversified REIT, Inc. (MDRR) is a Maryland corporation formed in 2015 that went public in 2018, with a focus on acquiring, repositioning, renovating, leasing, and managing income-producing properties across the southeastern United States. The company's primary investments include commercial and hotel properties.

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For media inquiries, contact:
Lindsey Chastain
At Large PR
Lindsey.chastain@atlargeproutreach.com

Media Contact

Lindsey Chastain, At Large PR, (918) 578-9122, lindsey.chastain@atlargeproutreach.com

Jon S. Wheeler, Wheeler Real Estate Investment Trust as Traded on NASDAQ, (757) 621-2873, jon@wrei.net

SOURCE Medalist REIT