Medalist Diversified REIT, Inc.
For the period ended Jun 30, 2025. Filed Aug 7, 2025.
View on SEC.govAbout this filing
A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Jun 30, 2025 · Filed Aug 7, 2025
MDRR$10.39-1.5%Stored close · as of Nov 6, 2026
What changed in Management’s Discussion and Analysis?
Read the current filingPrevious report: 10-Q
Period ended 2025-03-31; filed 2025-05-08.
0001558370-25-006975
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsCurrent report: 10-Q
Period ended 2025-06-30; filed 2025-08-07.
0001558370-25-010758
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsThe baseline is this issuer’s latest earlier reporting period of the same form that was filed before the current report. A previous 10-Q is a different quarter, not a year-over-year comparison. Amendments are excluded.
Compared 129 previous paragraphs and 165 current paragraphs.
62 unchanged; 52 reworded; 34 added; 12 removed; 3 previous and 17 current paragraphs rearranged.
Tables are not compared: 59 previous and 68 current tables excluded. Dates, whitespace, punctuation and numbering changes are ignored; changes to financial figures remain significant.
A changed paragraph is not evidence that risk increased or decreased. An unchanged paragraph does not establish that risk stayed the same.
Added paragraphs (34)
Current report
Recent Highlights
Current report
On July 18, 2025, we, through a wholly-owned subsidiary, completed the acquisition of a Tesla service, sales and delivery facility consisting of a 45,461 square foot, single story building on 3.498 acres of land located at 312 E. 9 Mile Road, Pensacola, Florida (the “Tesla Pensacola Property”). The total purchase price paid for the Tesla Pensacola Property was $14,544,504 and was purchased from an unaffiliated seller. The acquisition was funded using a line of credit from Farmers and Merchants Bank of Long Beach in the amount of $14,700,000 (the “Farmers Line of Credit”).
Current report
We intend to contribute the Tesla Pensacola Property to a newly formed Delaware Statutory Trust (“DST”). Following the contribution, the Company plans to launch a program (the “DST Program”) to raise capital, through the Operating Partnership, through private placement offerings exempt from registration under the Securities Act of 1933, as amended (the “Securities Act”), by selling beneficial interests (the “DST Interests”) in specific DSTs holding real properties (the “DST Properties”). We expect that the DST Program will provide us with the opportunity to expand and diversify our capital-raising strategies by offering what we believe to be an attractive investment product for investors who may be seeking like-kind replacement properties to complete tax-deferred exchange transactions under Section 1031 of the Internal Revenue Code (the “Code”). We intend to use the net offering proceeds from the DST Program to make investments in accordance with our investment strategy and policies, reduce our borrowings, repay indebtedness, fund the repurchase of shares under our share repurchase plan and for other corporate purposes. In addition, we expect to generate fee-based income, such as acquisition fees, asset management fees, disposition fees, and financing coordination fees, among others, from the DST Program. However, there can be no assurance that we will be successful in our efforts to sell the DST Interests or to generate fee-based income. As of August 7, 2025, we have not initiated our efforts to raise gross offering proceeds through the DST Program.
Current report
Farmers Line of Credit
Current report
On July 18, 2025, we, through our wholly-owned subsidiaries, entered into the new Farmers Line of Credit in the amount of $14,700,000 in connection with the acquisition of the Tesla Pensacola Property as discussed above. On April 28, 2025, we terminated the prior $4,000,000 line of credit with Wells Fargo Bank, National Association, in anticipation of the Farmers Line of Credit.
Current report
As of June 30, 2025, the outstanding balance, monthly payment and unamortized loan issuance costs related to the Wells Fargo Mortgage Facility are allocated, for reporting purposes, among the Salisbury Marketplace Property, Lancer Center Property, and Greenbrier Business Center Property, based on each property's proportionate share of the total combined appraised value at the time the Wells Fargo Mortgage Facility was originated. The portions allocated to the Lancer Center Property and Greenbrier Property are reported in Mortgages payable, net, on our condensed consolidated balance sheets, while the portion allocated to the Salisbury Marketplace Property, representing the estimated paydown amount upon its anticipated sale, is included in mortgages payable, net, associated with assets held for sale on our condensed consolidated balance sheets.
Current report
We financed acquisitions of our assets held for sale through mortgages, which as of June 30, 2025, are recorded as mortgages payable, net, associated with assets held for sale, on our consolidated balance sheets, as follows:
Current report
Internal liquidity to fund operating needs is expected to be provided primarily by the rental receipts from our investment properties. The Farmers Line of Credit will not be a continuing source of liquidity for us. Upon repayment of the Farmers Line of Credit, no further advances will be available.
Current report
Potential Impact of Tariffs and Trade Restrictions on Tenants and Our Business
Current report
Total revenue was $2,465,173 for the three months ended June 30, 2025, an increase of $164,017 from the three months ended June 30, 2024. Increases in retail center property revenues due to leasing activity in our Franklin Square, Salisbury Marketplace and Ashley Plaza properties, which were offset by decreased revenues from continuing vacancies in the Lancer Center Property, and increased STNL property revenues resulting from the acquisition of the Buffalo Wild Wings Property and the United Rentals Property, were offset by slightly decreased flex center property revenues due to vacancies in our Brookfield Property.
Current report
Retail center property revenues were $1,613,945 for the three months ended June 30, 2025, a $74,153 increase from the three months ended June 30, 2024, Increased revenues from the Franklin Square, which is fully occupied as of June 30, 2025, the Ashley Plaza Property which is 99.0% leased as of June 30, 2025 and the Salisbury Marketplace Property from increased tenant CAM reimbursements, were offset by decreased revenues from continued vacancies at the Lancer Center Property.
Current report
Increased Adjusted Net Operating Income from the Salisbury Marketplace Property resulted from increased tenant CAM reimbursement revenues, offset by increased retail center operating expenses. Increased Adjusted Net Operating Income from the Franklin Square Property resulted from increased rent revenues due to full occupancy and a slight decrease in operating expenses and interest expense. Increased Adjusted Net Operating Income from the Ashley Plaza Property was a result of increased retail center property revenues resulting from new leasing activity and lower interest expense due to loan principal amortization, offset by increased retail center operating expenses. These increases in Adjusted Net Operating Income were slightly offset by an decrease in Adjusted Net Operating Income from the Lancer Center Property due to decreased retail center property revenues from continuing vacancies and increased retail center operating expenses.
Current report
Increased Adjusted Net Operating Income from the Greenbrier Business Center resulted from increased flex center property revenues due to strong leasing and renewal activity and decreased flex center property operating expenses. Decreased Adjusted Net Operating Income from the Brookfield Property resulted from decreased flex center property revenues due to a new vacancy, offset by
Current report
decreased flex center operating expenses. Decreased Adjusted Net Operating Income from the Parkway Property resulted from increased operating expenses and interest expense, offset by increased flex center property revenues from contractual rent escalations and new leases.
Current report
The following table presents our operating expenses** **for the three months ended June 30, 2025 and 2024:
Current report
Total operating expenses were $2,196,601 for the three months ended June 30, 2025. Total expenses for the three months ended June 30, 2025 increased by $111,220 over the three months ended June 30, 2024, primarily due to increased legal, accounting and other professional fees, corporate general and administrative expenses, which increased primarily due to increased marketing and compensation expenses, and loss on impairment, offset by decreased bad debt expense and decreased depreciation and amortization expense.
Current report
Operating Income (Loss)
Current report
Operating income for the three months ended June 30, 2025 was $241,506, an increase of $25,731 from the operating income of $215,775 for the three months ended June 30, 2024. This increase was primarily a result of increased adjusted net operating income from our three operating segments, decreased bad debt expense and depreciation and amortization expense, offset by increased legal, accounting and other professional fees, corporate general and administrative expenses, loss on impairment, loss on extinguishment of debt
Current report
During the three months ended June 30, 2025, other income was $7,161, which consisted of interest income. This is a decrease of $8,950 from other income of $16,111 for the three months ended June 30, 2024, which also consisted of interest income.
Current report
During the three months ended June 30, 2025, other expense was $20,990 related to the fair value change of the interest rate cap. This is an increase of $13,790 from other expense of $7,200 for the three months ended June 30, 2024, which also consisted of the fair value change of the interest rate cap.
Current report
Six months ended June 30, 2025
Current report
Revenues
Current report
Adjusted Net Operating Income
Current report
Adjusted Net Operating Income from retail center properties was $1,541,332 for the six months ended June 30, 2025. Adjusted Net Operating Income for the six months ended June 30, 2025 decreased by $154,739 from the six months ended June 30, 2024, due to the sale of the Hanover Square Property, decreased Adjusted Net Operating Income from the Ashley Plaza Property, Lancer Center
Current report
The following tables present property operating revenues, operating expenses and interest expense for our flex center properties for the six months ended June 30, 2025 and 2024:
Current report
STNL property revenues were $337,438 for the six months ended June 30, 2025, a $185,354 increase from the six months ended June 30, 2024. Adjusted Net Operating Income from STNL properties was $306,829 for the six months ended June 30, 2025, an increase of $170,254 from the six months ended June 30, 2024. Revenues and Adjusted Net Operating Income increased due to the acquisition of the Buffalo Wild Wings Property and the United Rentals Property and owning the Citibank Property for the full six months ended June 30, 2025.
Current report
Operating Expenses
Current report
The following table presents our operating expenses** **for the six months ended June 30, 2025 and 2024:
Current report
Interest Expense
Current report
Interest expense was $1,131,856 and $1,600,108 for the six months ended June 30, 2025 and 2024, respectively, as follows:
Current report
Other Income
Current report
Other Expense
Current report
Net (Loss) Income
Current report
Net income for the six months ended June 30, 2025 decreased by $2,854,489 over the six months ended June 30, 2024, before adjustments for net (loss) income attributable to noncontrolling interests. After adjusting for noncontrolling interests, the net income attributable to our common stockholders for the six months ended June 30, 2025 decreased by $2,361,181 over the six months ended June 30, 2024.
Removed paragraphs (12)
Previous report
First Quarter 2025 Highlights
Previous report
Acquisition of the United Rentals Property
Previous report
On February 21, 2025, our company, through a wholly-owned subsidiary, completed its acquisition of the United Rentals Property. The purchase price for the United Rentals Property was $3,145,000 paid through the issuance of 251,600 OP Units at a price
Previous report
of $12.50 per OP Unit. Our company’s total investment was $3,187,446. Theseller of the United Rentals Property was Dionysus Investments, LLC, a company controlled and owned by Frank Kavanaugh, our company’s President and Chief Executive Officer and Chairman of the Board. The purchase price was determined by an independent, third-party appraisal obtained by our company. Pursuant to our company’s Related Person Transaction Policy (the “Related Person Transaction Policy”), our Board’s Audit Committee determined that the terms of the transaction were those that would normally be agreed upon in an arms-length transaction and approved this transaction.
Previous report
On January 24, 2025, our company, through a wholly-owned subsidiary, completed its acquisition of the Buffalo Wild Wings Property. The purchase price for the Buffalo Wild Wings Property was $2,620,000 paid through the issuance of 209,600 OP Units at a price of $12.50 per OP Unit. Our company’s total investment was $2,667,429. The seller of the Buffalo Wild Wings Property was CWS BET Seattle L.P. LLC, a company controlled and owned by Frank Kavanaugh, our company’s President and Chief Executive Officer and Chairman of the Board. Pursuant to the Related Person Transaction Policy, our Board’s Audit Committee determined that the terms of the transaction were those that would normally be agreed upon in an arms-length transaction and approved this transaction.
Previous report
Redemption of Mandatorily Redeemable Preferred Stock
Previous report
On November 25, 2024, our company completed a partial redemption of 140,000 shares of its mandatorily redeemable preferred stock. The redemption price was $25.00 per share, plus $0.05 per share of accrued dividends. Our company used proceeds from the private placement of OP Units (see below) and cash on hand to fund the $3,527,160 for the partial redemption and accrued dividends. On January 10, 2025, our company completed the redemption of the remaining 60,000 shares of its mandatorily redeemable preferred stock. The redemption price was $25.00 per share, plus $0.44 per share of accrued dividends. Our company used proceeds from the private placement of shares of the company’s common stock, $0.01 par value per share (the “Common Shares”) to fund the $1,526,500 for the final redemption and accrued dividends.
Previous report
Wells Fargo Line of Credit
Previous report
On June 13, 2022, our company, through its wholly-owned subsidiaries, entered into a loan agreement with Wells Fargo Bank, National Association for a $1,500,000 line of credit (the “Original Wells Fargo Line of Credit”). On October 2, 2024, our company, through its wholly-owned subsidiaries, entered into an amended and restated Revolving Line of Credit Note with Wells Fargo Bank, National Association that increased the line of credit from $1,500,000 to $4,000,000 (the “Expanded Wells Fargo Line of Credit”). Outstanding balances on the Expanded Wells Fargo Line of Credit will bear interest at a floating rate of 3.10% above Daily Simply SOFR. The Expanded Wells Fargo Line of Credit is secured by the Lancer Center Property, the Greenbrier Business Center Property, the Salisbury Marketplace Property and the Citibank Property, is unconditionally guaranteed by our company, and any outstanding balances will be due on the September 30, 2026 maturity date.
Previous report
On April 28, 2025, our company terminated the Expanded Wells Fargo Line of Credit and Wells Fargo Bank agreed to release its security interest in the Citibank Property. Our company terminated the Expanded Wells Fargo Line of Credit in anticipation of a new credit relationship with a separate lender, which our company expects to announce during the second quarter of 2025. However, there can be no assurance that our company will be able to successfully complete this new credit relationship.
Previous report
Internal liquidity to fund operating needs are expected to be provided primarily by the rental receipts from our investment properties. As of March 31, 2025, we had $4,238,209 in cash and cash equivalents and $4 million in borrowing capacity under the Expanded Wells Fargo Line of Credit. However, on April 28, 2025, our company terminated the Expanded Wells Fargo Line of Credit in anticipation of a new credit relationship with a separate lender, which our company expects to announce during the second quarter of 2025. There can be no assurance that we will successfully complete this new credit arrangement, and failure to do so could adversely affect our liquidity.
Previous report
Decreased Adjusted Net Operating Income from the East Coast Wings Property resulted from increased exterior repair costs that were our company’s responsibility. Decreased Adjusted Net Operating Income from the T-Mobile property was a result of a slight increase in property operating expenses.
Reworded paragraphs (52)
Previous wording
Medalist Diversified REIT Inc. is a Maryland corporation formed on September 28, 2015. Beginning with our taxable year ended December 31, 2017, we believe that we have operated in a manner qualifying us as a real estate investment trust (“REIT”), and we have elected to be taxed as a REIT for federal income tax purposes. Our company serves as the general partner of Medalist Diversified Holdings, LP which was formed as a Delaware limited partnership on September 29, 2015.
Current wording
Medalist Diversified REIT, Inc. is a Maryland corporation formed on September 28, 2015. Beginning with our taxable year ended December 31, 2017, we believe that we have operated in a manner qualifying us as a real estate investment trust (“REIT”), and we have elected to be taxed as a REIT for federal income tax purposes. Medalist Diversified REIT, Inc. serves as the general partner of Medalist Diversified Holdings, LP which was formed as a Delaware limited partnership on September 29, 2015.
Previous wording
Our company was formed to acquire, reposition, renovate, lease and manage income-producing properties. Our current primary focus is on (i) managing our legacy portfolio consisting of retail and flex-industrial properties in secondary and tertiary markets in Virginia, North Carolina, and South Carolina, (ii) managing and expanding our STNL property portfolio in geographic markets across the United States and (iii) implementing a program by which our company will act as a sponsor of Delaware Statutory Trust (DST) investment offerings. We may also pursue, in an opportunistic manner, other real estate-related investments, including, among other things, equity or other ownership interests in entities that are the direct or indirect owners of real property, and indirect investments in
Current wording
We were formed to acquire, reposition, renovate, lease and manage income-producing properties. Our current primary focus is on (i) managing our legacy portfolio consisting of retail and flex-industrial properties in secondary and tertiary markets in Virginia, North Carolina, and South Carolina, (ii) managing and expanding our STNL property portfolio in geographic markets across the United States and (iii) implementing a program by which we will act as a sponsor of Delaware Statutory Trust (“DST”) investment offerings. We may also pursue, in an opportunistic manner, other real estate-related and non-real estate-related investments, including, among other things, equity or other ownership interests in entities that are the direct or indirect owners of real property, indirect investments in real property, such as those that may be obtained in a joint venture, and ownership of crypto assets. While these types of investments are not intended to be a primary focus, we may make such investments in our discretion.
Previous wording
In addition, as of March 31, 2025, our company also owned three undeveloped parcels which are currently being marketed for use as STNL properties including (i) an outparcel at our Lancer Center Property consisting of approximately 1.80 acres (the “Lancer Outparcel”), (ii) an outparcel at our Salisbury Marketplace Property consisting of approximately 1.20 acres (the “Salisbury Outparcel”) (the exact size of the Lancer Outparcel and Salisbury Outparcel will not be determined until a user is identified), and (iii) the Hanover Square Outparcel consisting of 0.86 acres located adjacent to the Hanover Square Shopping Center.
Current wording
In addition, as of June 30, 2025, we also owned three undeveloped parcels which are currently being marketed for use as STNL properties including (i) an outparcel at our Lancer Center Property consisting of approximately 1.80 acres (the “Lancer Outparcel”), (ii) an outparcel at our Salisbury Marketplace Property consisting of approximately 1.20 acres (the “Salisbury Outparcel”) (the exact size
Previous wording
Acquisition of the Buffalo Wild Wings Property
Current wording
Acquisition of the Tesla Pensacola Property, Commencement of DST Program
Previous wording
Our company has historically financed its acquisitions of its investment properties through mortgages. The following table is presented as of March 31, 2025.
Current wording
We have historically financed acquisitions of our investment properties through mortgages. The following table is presented as of June 30, 2025.
Previous wording
On October 28, 2021, our company entered into the Interest Rate Protection Transaction to limit our exposure to increases in interest rates on the variable rate mortgage loan on the Parkway Property. Under this agreement, our interest rate exposure is capped at 5.25% if USD 1-Month ICE LIBOR exceeds 3%. Effective on July 1, 2023, the interest rate index under the Interest Rate Protection Transaction automatically converted to SOFR. For the period from September 1, 2022 through March 31, 2025, the applicable index (LIBOR or SOFR), exceeded the 3% cap, and payments from the Interest Rate Protection Transaction reduced our company’s net interest expense. Payments to our company from the Interest Rate Protection Transaction are recorded as an offset to interest expense on our company’s condensed consolidated statements of operations for the three months ended March 31, 2025 and 2024, respectively.
Current wording
5.25% if USD 1-Month ICE LIBOR exceeds 3%. Effective on July 1, 2023, the interest rate index under the Interest Rate Protection Transaction automatically converted to SOFR. For the period from September 1, 2022 through June 30, 2025, the applicable index (LIBOR or SOFR), exceeded the 3% cap, and payments from the Interest Rate Protection Transaction reduced our net interest expense. Payments to us from the Interest Rate Protection Transaction are recorded as an offset to interest expense on our condensed consolidated statements of operations for the three and six months ended June 30, 2025 and 2024, respectively.
Previous wording
Principal components of our total revenues for our retail center properties, flex center properties and STNL revenues include base rents and tenant reimbursements. We accrue minimum (base) rent on a straight-line basis over the terms of the respective leases which results in an unbilled rent asset or deferred rent liability being recorded on the balance sheet. Certain lease agreements contain provisions that grant additional rents based on tenants’ sales volumes (contingent or percentage rent) which we recognize when the tenants achieve the specified targets as defined in their lease agreements. We periodically review the valuation of the asset/liability resulting from the straight-line accounting treatment of our leases in light of any changes in lease terms, financial condition or other factors concerning our tenants.
Current wording
provisions that grant additional rents based on tenants’ sales volumes (contingent or percentage rent) which we recognize when the tenants achieve the specified targets as defined in their lease agreements. We periodically review the valuation of the asset/liability resulting from the straight-line accounting treatment of our leases in light of any changes in lease terms, financial condition or other factors concerning our tenants.
Previous wording
The adoption of Accounting Standards Update (“ASU”) 2017-01,Business Combinations (Topic 805), as discussed in Note 2, “Summary of Significant Accounting Policies” of the condensed consolidated financial statements included in this report, has impacted our accounting framework for the acquisition of investment properties. Upon acquisition of investment properties, our company estimates the fair value of acquired tangible assets (consisting of land, buildings and improvements, and furniture, fixtures and equipment) and identified intangible assets and liabilities, including in-place leases, above- and below-market leases, tenant relationships and assumed debt based on evaluation of information and estimates available at that date. Fair values for these assets are not directly observable and estimates are based on comparable market data and other information which is subjective in nature, including estimated cash flow projections that utilize appropriate discount and capitalization rates and available market information.
Current wording
The adoption of Accounting Standards Update (“ASU”) 2017-01,Business Combinations (Topic 805), as discussed in Note 2, “Summary of Significant Accounting Policies” of the condensed consolidated financial statements included in this report, has impacted our accounting framework for the acquisition of investment properties. Upon acquisition of investment properties, we estimate the fair value of acquired tangible assets (consisting of land, buildings and improvements, and furniture, fixtures and equipment) and identified intangible assets and liabilities, including in-place leases, above- and below-market leases, tenant relationships and assumed debt based on evaluation of information and estimates available at that date. Fair values for these assets are not directly observable and estimates are based on comparable market data and other information which is subjective in nature, including estimated cash flow projections that utilize appropriate discount and capitalization rates and available market information.
Previous wording
We periodically review investment properties for impairment on a property-by-property basis to identify any events or changes in circumstances that indicate that the carrying value of investment properties may not be recoverable. These circumstances include, but are not limited to, declines in the property’s cash flows, occupancy and fair market value. If any such events or changes in circumstances are identified, we perform a formal impairment analysis. We measure any impairment of investment property when the estimated undiscounted operating income before depreciation and amortization, is less than the carrying value of the property. To the extent impairment has occurred, we charge to income the excess of carrying value of the property over its estimated fair value. We estimate fair value using data such as operating income, estimated capitalization rates or multiples, leasing prospects and local market information. Our company also reviews its intangible assets for impairment whenever events or changes in circumstances indicate that the carrying value of its intangible assets may not be recoverable, but at least annually.
Current wording
We periodically review investment properties for impairment on a property-by-property basis to identify any events or changes in circumstances that indicate that the carrying value of investment properties may not be recoverable. These circumstances include, but are not limited to, declines in the property’s cash flows, occupancy and fair market value. If any such events or changes in circumstances are identified, we perform a formal impairment analysis. We measure any impairment of investment property when the estimated undiscounted operating income before depreciation and amortization, is less than the carrying value of the property. To the extent impairment has occurred, we charge to income the excess of carrying value of the property over its estimated fair value. We estimate fair value using data such as operating income, estimated capitalization rates or multiples, leasing prospects and local market information. We also review our intangible assets for impairment whenever events or changes in circumstances indicate that the carrying value of our intangible assets may not be recoverable, but at least annually.
Previous wording
Evaluation of Our Company’s Ability to Continue as a Going Concern
Current wording
Evaluation of Our Ability to Continue as a Going Concern
Previous wording
Under the accounting guidance related to the presentation of financial statements, our company is required to evaluate, on a quarterly basis, whether or not the entity’s current financial condition, including its sources of liquidity at the date that the condensed consolidated financial statements are issued, will enable the entity to meet its obligations as they come due arising within one year of the date of the issuance of our company’s condensed consolidated financial statements and to make a determination as to whether or not it is probable, under the application of this accounting guidance, that the entity will be able to continue as a going concern. Our company’s condensed consolidated financial statements have been presented on a going concern basis, which contemplates the realization of assets and the satisfaction of liabilities in the normal course of business. In applying applicable accounting guidance, management considered our company’s current financial condition and liquidity sources, including current funds available, forecasted future cash flows and our company’s obligations due over the next twelve months, as well as our company’s recurring business operating expenses.
Current wording
of this accounting guidance, that we will be able to continue as a going concern. Our condensed consolidated financial statements have been presented on a going concern basis, which contemplates the realization of assets and the satisfaction of liabilities in the normal course of business. In applying applicable accounting guidance, management considered our current financial condition and liquidity sources, including current funds available, forecasted future cash flows and our obligations due over the next twelve months, as well as our recurring business operating expenses.
Previous wording
We have concluded that it is probable that we will be able to meet our obligations arising within one year of the date of issuance of these condensed consolidated financial statements within the parameters set forth in the accounting guidance. For additional information regarding our company’s liquidity, see Note 5 – Loans Payable and Note 8 – Commitments and Contingencies in the notes to our company’s condensed consolidated financial statements.
Current wording
We have concluded that it is probable that we will be able to meet our obligations arising within one year of the date of issuance of these condensed consolidated financial statements within the parameters set forth in the accounting guidance. For additional information regarding our liquidity, see Note 5 – Loans Payable and Note 8 – Commitments and Contingencies in the notes to our condensed consolidated financial statements.
Previous wording
At March 31, 2025, our consolidated cash and restricted cash on hand totaled $4,238,209 compared to consolidated cash on hand of $6,072,736 at December 31, 2024. Cash from operating activities, investing activities and financing activities for the three months ended March 31, 2025 are as follows:
Current wording
At June 30, 2025, our consolidated cash and restricted cash on hand totaled $3,637,782 compared to consolidated cash on hand of $6,072,736 at December 31, 2024. Cash from operating activities, investing activities and financing activities for the three and six months ended June 30, 2025 are as follows:
Previous wording
During the three months ended March 31, 2025, our cash provided by operating activities was $459,972 compared to cash provided by operating activities of $492,441 for the three months ended March 31, 2024, a decrease in cash provided by operating activities of $32,469.
Current wording
During the six months ended June 30, 2025, our cash provided by operating activities was $704,098 compared to cash provided by operating activities of $1,271,084 for the six months ended June 30, 2024, a decrease in cash provided by operating activities of $566,986.
Previous wording
Cash flows from operating activities has two components. The first component consists of net operating (loss) income adjusted for non-cash operating activities. During the three months ended March 31, 2025, operating activities adjusted for non-cash items resulted in net cash provided by operating activities of $389,549. During the three months ended March 31, 2024, operating activities adjusted for non-cash items resulted in net cash provided in operating activities of $493,480. The decrease of $103,931 in cash flows from operating activities for the three months ended March 31, 2025 was primarily the result of reduced net operating income from our investment properties resulting from the sale of the Hanover Square Property on March 13, 2024 and increased corporate general and administrative expenses.
Current wording
Cash flows from operating activities has two components. The first component consists of net operating (loss) income adjusted for non-cash operating activities. During the six months ended June 30, 2025, operating activities adjusted for non-cash items resulted in net cash provided by operating activities of $950,746. During the six months ended June 30, 2024, operating activities adjusted for non-cash items resulted in net cash provided in operating activities of $1,021,497. The decrease of $70,751 in cash flows from operating activities for the six months ended June 30, 2025 was primarily the result of increased corporate general and administrative expenses and legal, professional and other fees, offset by increased net operating income from our investment properties.
Previous wording
The second component consists of changes in assets and liabilities. Increases in assets and decreases in liabilities result in cash used in operations. Decreases in assets and increases in liabilities result in cash provided by operations. During the three months ended March 31, 2025, net changes in asset and liability accounts resulted in $70,423 in cash provided in operations. During the three months ended March 31, 2024, net changes in asset and liability accounts resulted in $1,039 in cash used in operations. This increase of $71,462 in cash provided in operations resulting from changes in assets and liabilities is a result of increased changes in rent and other receivables, net, of $34,651, increased changes in other assets of $10,320 and increased changes in accounts payable and accrued liabilities of $87,386, offset by decreased changes in unbilled rent of $60,895.
Current wording
The second component consists of changes in assets and liabilities. Increases in assets and decreases in liabilities result in cash used in operations. Decreases in assets and increases in liabilities result in cash provided by operations. During the six months ended June 30, 2025, net changes in asset and liability accounts resulted in $246,648 in cash used in operations. During the six months ended June 30, 2024, net changes in asset and liability accounts resulted in $249,587 in cash provided in operations. This increase of $496,235 in cash used in operations resulting from changes in assets and liabilities is a result of increased changes in rent and other receivables, net, of $15,485, increased changes in other assets of $592,495, and increased changes in unbilled rent of $23,166, all of which used cash, offset by increased accounts payable and accrued liabilities of $103,941, which is a source of cash.
Previous wording
The net of (i) the $103,931 decrease in cash provided by operations from the first category and (ii) the $71,462 increase in cash provided by operations from the second category results in a total decrease of cash provided in operations of $32,469 for the three months ended March 31, 2025.
Current wording
The net of (i) the $70,751 decrease in cash provided by operations from the first category and (ii) the $496,235 decrease in cash provided by operations from the second category results in a total decrease of cash provided in operations of $566,986 for the six months ended June 30, 2025.
Previous wording
Management believes that separately evaluating these two components of our company’s cash provided by operating activities provides management with additional insight into this GAAP measure. Management believes that separating changes in assets and liabilities, the second component, from net operating (loss) income adjusted for non-cash operating activities, the first component, is a meaningful measure of our company’s operating performance, along with adjusted net operating income and adjusted funds from operations, presented below.
Current wording
Management believes that separately evaluating these two components of our cash provided by operating activities provides management with additional insight into this GAAP measure. Management believes that separating changes in assets and liabilities, the second component, from net operating (loss) income adjusted for non-cash operating activities, the first component, is a meaningful measure of our operating performance, along with adjusted net operating income and adjusted funds from operations, presented below.
Previous wording
During the three months ended March 31, 2025, our cash used by investing activities was $227,464, compared to cash provided in investing activities of $2,738,142 during the three months ended March 31, 2024, a decrease in cash provided by investing activities of $2,965,606.
Current wording
During the six months ended June 30, 2025, our cash used by investing activities was $708,098, compared to cash provided in investing activities of $2,605,078 during the six months ended June 30, 2024, a decrease in cash provided by investing activities of $3,313,176.
Previous wording
During the three months ended March 31, 2025, cash used by investing activities consisted of $137,589 in capitalized expenditures, including $29,235 in building improvements, $63,354 in leasing commissions and $45,000 in tenant improvements and $89,875 in investment property acquisitions for closing costs related to the Buffalo Wild Wings Property and United Rentals Property acquisitions. During the three months ended March 31, 2024, cash provided by investing activities consisted of $3,110,149 in cash received from the disposal of the Hanover Square Shopping Center Property, offset by cash used in investing activities consisting of $145,345 in investment property acquisitions, including $100,891 in cash paid for the acquisition of the noncontrolling owner’s 16% interest in the Hanover Square Outparcel and $44,454 paid in cash for closing costs related to the Citibank Property acquisition, and $226,662 in capitalized expenditures, including $29,124 in building improvements, $2,300 in site improvements, $54,963 in leasing commissions and $140,275 in tenant improvements.
Current wording
During the six months ended June 30, 2025, cash used by investing activities consisted of $563,219 in capitalized expenditures, including $152,604 in building improvements, $126,011 in leasing commissions and $267,140 in tenant improvements, $89,875 in investment property acquisitions for closing costs related to the Buffalo Wild Wings Property and United Rentals Property acquisitions, and $55,004 for the purchase of crypto assets. During the six months ended June 30, 2024, cash provided by investing activities consisted of $3,110,149 in cash received from the disposal of the Hanover Square Shopping Center Property, offset by cash used in investing activities consisting of $145,345 in investment property acquisitions, including $100,891 in cash paid for the acquisition of the noncontrolling owner’s 16% interest in the Hanover Square Outparcel and $44,454 paid in cash for closing costs related to the Citibank Property acquisition, and $359,726 in capitalized expenditures, including $68,500 in building improvements, $2,300 in site improvements, $80,329 in leasing commissions, $178,952 in capitalized tenant improvements, and $29,645 in capitalized tenant improvements considered to be lease incentives.
Previous wording
The non-cash investing activity for the three months ended March 31, 2025, that did not affect our cash provided by investing activities was the issuance of $5,765,000 of OP Units, $2,620,000 of OP Units for the acquisitions of the Buffalo Wild Wings Property and $3,145,000 of OP Units for the United Rentals Property. The non-cash investing activity for the three months ended March 31, 2024, that did not affect our cash provided by investing activities, was the issuance of $2,400,000 of OP Units for the acquisition of the Citibank Property.
Current wording
The non-cash investing activity for the six months ended June 30, 2025, that did not affect our cash provided by investing activities was the issuance of $5,765,000 of OP Units, $2,620,000 of OP Units for the acquisitions of the Buffalo Wild Wings Property and $3,145,000 of OP Units for the United Rentals Property, the transfer of $8,951,336 of investment properties, net, to assets held for sale, the transfer of $481,568 of intangible assets, net, to assets held for sale, the transfer of $476,656 of intangible liabilities, net, to liabilities held for sale and $87,017 of capital expenditures accrued as of June 30, 2025. The non-cash investing activity for the six months ended June 30, 2024, that did not affect our cash provided by investing activities, was the issuance of $2,400,000 of OP Units for the acquisition of the Citibank Property.
Previous wording
During the three months ended March 31, 2025, our cash used by financing activities was $2,067,035 compared to cash used by financing activities of $1,903,754 during the three months ended March 31, 2024, an increase in cash used by financing activities of $163,281. During the three months ended March 31, 2025, our cash used by financing activities consisted of $1,500,000 for the final redemption of our company’s mandatorily redeemable preferred stock, $274,737 in principal payments for our company’s mortgages, $123,459 in dividends and distributions, $106,624 to repurchase Common Shares, and $62,215 in offering costs paid related to the common stock offering. During the three months ended March 31, 2024, our cash used by financing activities consisted of $1,000,000 to repay the line of credit, short term, $331,215 in principal payments for our company’s mortgages, $510,950 in dividends and distributions and $61,589 for the Operating Partnership Unit redemption.
Current wording
During the six months ended June 30, 2025, our cash used by financing activities was $2,430,954 compared to cash used by financing activities of $2,221,225 during the six months ended June 30, 2024, an increase in cash used by financing activities of $209,729. During the six months ended June 30, 2025 our cash used by financing activities consisted of $1,500,000 for the final redemption of our mandatorily redeemable preferred stock, $507,597 in principal payments for our mortgages, $282,569 in dividends and distributions, and $140,788 to repurchase Common Shares. During the six months ended June 30, 2024, our cash used by financing activities consisted of $1,000,000 to repay the line of credit, short term, $533,894 in principal payments for our mortgages, $610,105 in dividends and distributions and $77,226 for the Operating Partnership Unit redemption.
Previous wording
Liquidity for general operating needs and our company’s investment properties is generally provided by the rental receipts from our retail properties, flex center properties and STNL properties, if any. We expect to provide any liquidity for growth (acquisition of new investment properties) by raising additional investment capital. In addition, our company continually reviews and evaluates its outstanding mortgages payable for refinancing opportunities. While some of our mortgages payable are not pre-payable, some mortgages payable may present opportunities for refinancing.
Current wording
Liquidity for general operating needs and our investment properties is generally provided by the rental receipts from our retail properties, flex center properties and STNL properties, if any. We expect to provide any liquidity for growth (acquisition of new investment properties) by raising additional investment capital. In addition, we continually review and evaluate our outstanding mortgages payable for refinancing opportunities. While some of our mortgages payable are not pre-payable, some mortgages payable may present opportunities for refinancing.
Previous wording
The primary, non-operating liquidity needs of our company are $150,874 to pay the dividends to common stockholders and distributions to OP Unit holders that were declared on April 3, 2025 and payable April 22, 2025 to holders of record on April 17, 2025, and $813,032 in principal payments due on its mortgages payable during the remaining nine months ending December 31, 2025. In addition to liquidity required to fund these dividends and principal payments, we may also incur some level of capital expenditures for our existing properties that cannot be passed on to our tenants. Our company plans to pay these obligations through a combination of cash on hand, potential dispositions and operating cash.
Current wording
Our primary, non-operating liquidity needs are $149,919 to pay the dividends to common stockholders and distributions to OP Unit holders that were declared on June 26, 2025 and payable July 16, 2025 to holders of record on July 11, 2025, $542,381 in principal payments due on its mortgages payable during the remaining six months ending December 31, 2025 and $14,544,504 for the acquisition of the Tesla Pensacola Property, which closed on July 18, 2025. In addition to liquidity required to fund these dividends and principal payments, we may also incur some level of capital expenditures for our existing properties that cannot be passed on to our tenants. We plan to pay these obligations through a combination of cash on hand, potential dispositions and operating cash.
Previous wording
To meet these future liquidity needs, our company has the following resources:
Current wording
To meet these future liquidity needs, we have the following resources:
Previous wording
Rental revenues from our investment properties are our only source of income and are directly affected by a number of factors, including occupancy rates, lease structures, and tenant credit quality, as well as broader economic and policy developments that affect consumer sentiment. Our company’s revenues can be significantly impacted by trends in consumer spending, interest rates, and market confidence, all of which shape demand for our tenants’ goods and services and, in turn, for occupancy in our investment properties.
Current wording
Rental revenues from our investment properties are our only source of income and are directly affected by a number of factors, including occupancy rates, lease structures, and tenant credit quality, as well as broader economic and policy developments that affect consumer sentiment. Our revenues can be significantly impacted by trends in consumer spending, interest rates, and market confidence, all of which shape demand for our tenants’ goods and services and, in turn, for occupancy in our investment properties.
Previous wording
Our company establishes operating segments at the property level and aggregates individual properties into reportable segments based on product types in which we have investments. During the three months ended March 31, 2025 and 2024, our reportable segments consisted of retail center properties, flex center properties and STNL properties. We base our evaluation of our results of operations on the net operating income adjusted for interest expense of each reportable segment and, in some cases, of each property.
Current wording
We establish operating segments at the property level and aggregates individual properties into reportable segments based on product types in which we have investments. During the three and six months ended June 30, 2025 and 2024, our reportable segments consisted of retail center properties, flex center properties and STNL properties. We base our evaluation of our results of operations on the net operating income adjusted for interest expense of each reportable segment and, in some cases, of each property.
Previous wording
Net operating income (“NOI”) is a non-GAAP financial measure and is not considered a measure of operating results or cash flows from operations under GAAP. NOI is calculated by deducting operating expenses from operating revenues. NOI reflects occupancy levels, rental rate increases or decreases, and the recoverability of operating expenses. NOI, as our company calculates it, may not be directly comparable to similarly titled, but differently calculated, measures for other REITs.
Current wording
Net operating income (“NOI”) is a non-GAAP financial measure and is not considered a measure of operating results or cash flows from operations under GAAP. NOI is calculated by deducting operating expenses from operating revenues. NOI reflects occupancy levels, rental rate increases or decreases, and the recoverability of operating expenses. NOI, as we calculate it, may not be directly comparable to similarly titled, but differently calculated, measures for other REITs.
Previous wording
Because Adjusted Net Operating Income consists of only revenues, operating expenses, and interest expense directly related to our company’s real estate rental operations, management believes that the use of Adjusted Net Operating Income to evaluate the financial performance of its operating segments and individual investment properties is a useful tool that can assist in the comparison of the operating performance of our real estate assets between periods, or as compared to other companies and other investment opportunities we may consider from time to time. Management uses Adjusted Net Operating Income as a supplemental measure to evaluate our business because there are certain limitations associated with using GAAP net income alone as the primary measure of our operating performance.
Current wording
Because Adjusted Net Operating Income consists of only revenues, operating expenses, and interest expense directly related to our real estate rental operations, management believes that the use of Adjusted Net Operating Income to evaluate the financial performance of its operating segments and individual investment properties is a useful tool that can assist in the comparison of the operating performance of our real estate assets between periods, or as compared to other companies and other investment opportunities we may consider from time to time. Management uses Adjusted Net Operating Income as a supplemental measure to evaluate our business because there are certain limitations associated with using GAAP net income alone as the primary measure of our operating performance.
Previous wording
Adjusted Net Operating Income from retail center properties was $699,951 for the three months ended March 31, 2025. Adjusted Net Operating Income for the three months ended March 31, 2025 decreased by $219,315 from the three months ended March 31, 2024, due to the sale of the Hanover Square Property, decreased Adjusted Net Operating Income from the Ashley Plaza Property, Lancer Center Property and the Salisbury Marketplace Property, which decreases were slightly offset by increased Adjusted Net Operating Income from the Franklin Square Property.
Current wording
Adjusted Net Operating Income from retail center properties was $841,380 for the three months ended June 30, 2025. Adjusted Net Operating Income for the three months ended June 30, 2025 increased by $64,575 from the three months ended June 30, 2024, due to increased Adjusted Net Operating Income from the Ashley Plaza Property, Franklin Square Property and the Salisbury Marketplace Property, which were slightly offset by decreased Adjusted Net Operating Income from the Franklin Square Property.
Previous wording
Adjusted Net Operating Income from STNL properties was $126,703 for the three months ended March 31, 2025. Adjusted Net Operating Income for the three months ended March 31, 2025 increased by $76,456 over the three months ended March 31, 2024 due to increased Adjusted Net Operating Income from the acquisitions of the Citibank and United Rentals Properties, offset by decreased Adjusted Net Operating Income from the East Coast Wings Property and T-Mobile Property.
Current wording
Adjusted Net Operating Income from our flex center properties was $331,425 for the three months ended June 30, 2025. Adjusted Net Operating Income for the three months ended June 30, 2025 increased by $9,055 from the three months ended June 30, 2024 due to increased Adjusted Net Operating Income from the Greenbrier Business Center Property, offset by decreased Adjusted Net Operating Income from the Brookfield Property and Parkway Property.
Previous wording
STNL property revenues were $148,630 for the three months ended March 31, 2025, a $90,675 increase from the three months ended March 31, 2024. Revenues increased due to the acquisition of the Buffalo Wild Wings Property and the United Rentals Property, owning the Citibank Property for the full three months ending March 31, 2025, and slight increases in common area maintenance revenues from the T-Mobile Property.
Current wording
STNL property revenues were $188,808 for the three months ended June 30, 2025, a $94,679 increase from the three months ended June 30, 2024. Adjusted Net Operating Income from STNL properties was $180,126 for the three months ended June 30, 2025, an increase of $93,798 over the three months ended June 30, 2024. STNL property revenues and Adjusted Net Operating Income increased due to the acquisition of the Buffalo Wild Wings Property and the United Rentals Property, owning the Citibank Property for the full the three months ended June 30, 2025.
Previous wording
Interest expense was $573,016 and $876,748 for the three months ended March 31, 2025 and 2024, respectively, as follows:
Current wording
Interest expense was $558,840 and $723,360 for the three months ended June 30, 2025 and 2024, respectively, as follows:
Previous wording
Total interest expense for the three months ended March 31, 2025 decreased by $303,732 over the three months ended March 31, 2024. This decrease was primarily a result of decreased interest of $129,248 from the sale of the Hanover Square Shopping Center Property and the redemption of the mandatorily redeemable preferred stock. Non cash interest expense, above, includes non-cash amortization of discounts and capitalized issuance costs related to the mandatorily redeemable preferred stock. See Note 5 of the accompanying notes to the unaudited condensed consolidated financial statements.
Current wording
Total interest expense for the three months ended June 30, 2025 decreased by $164,520 over the three months ended June 30, 2024. This decrease was primarily a result of decreased interest expense due to the redemption of the mandatorily redeemable preferred stock. Non cash interest expense, above, includes non-cash amortization of discounts and capitalized issuance costs related to the mandatorily redeemable preferred stock. See Note 5 of the accompanying notes to the unaudited condensed consolidated financial statements.
Previous wording
Net loss was $1,026,884 for the three months ended March 31, 2025, before adjustments for net loss attributable to noncontrolling interests. After adjusting for noncontrolling interests, the net loss attributable to our common stockholders was $1,006,826.
Current wording
Net loss was $331,163 for the three months ended June 30, 2025, before adjustments for net loss attributable to noncontrolling interests. After adjusting for noncontrolling interests, the net loss attributable to our common stockholders was $456,444.
Previous wording
Net income for the three months ended March 31, 2025 decreased by $2,959,785 over the three months ended March 31, 2024, before adjustments for net (loss) income attributable to noncontrolling interests. After adjusting for noncontrolling interests, the net income attributable to our common stockholders for the three months ended March 31, 2025 decreased by $2,346,224 over the three months ended March 31, 2024.
Current wording
Net loss for the three months ended June 30, 2025, decreased by $167,511 over the three months ended June 30, 2024, before adjustments for net (loss) income attributable to noncontrolling interests. After adjusting for noncontrolling interests, the net income attributable to our common stockholders for the three months ended June 30, 2025 decreased by $65,258 over the three months ended June 30, 2024.
Previous wording
Total revenue was $2,321,640 for the three months ended March 31, 2025, a decrease of $249,999 from the three months ended March 31, 2024. Decreases in retail center property revenues from the sale of the Hanover Square Shopping Center and increased vacancies in the Lancer Center Property and the Salisbury Marketplace Property were partially offset by increased STNL property revenues resulting from the acquisition of the Buffalo Wild Wings Property and the United Rentals Property and slightly increased flex center property revenues.
Current wording
Total revenue was $4,786,813 for the six months ended June 30, 2025, a decrease of $85,982 from the six months ended June 30, 2024. Decreases in retail center property revenues from the sale of the Hanover Square Shopping Center and increased vacancies in the Lancer Center Property, were partially offset by increases in flex center property revenues from the Parkway and Greenbrier Business Center properties, and STNL property revenues resulting from the acquisition of the Buffalo Wild Wings Property and the United Rentals Property.
Previous wording
Retail center property revenues were $1,492,447 for the three months ended March 31, 2025, a $357,170 decrease from the three months ended March 31, 2024, primarily due to the sale of the Hanover Square Shopping Center Property and decreased revenues from the Lancer Center Property and the Salisbury Marketplace Property due to increased vacancies. Increased revenues from the Franklin Square Property, which resulted from full occupancy, slightly offset these decreases.
Current wording
Retail center property revenues were $3,106,392 for the six months ended June 30, 2025, a $283,017 decrease from the six months ended June 30, 2024, primarily due to decreased revenues resulting from the sale of the Hanover Square Shopping Center Property and a continuing vacancy in the Lancer Center Property. These decreased revenues were offset by increased revenues from the Franklin Square Property, which resulted from full occupancy, and the Salisbury Marketplace Property due to new leasing activity.
Previous wording
Decreased Adjusted Net Operating Income from the Lancer Center Property and Salisbury Marketplace Property resulted from a decline in cash revenues due to decreased occupancy and an increase in operating expenses, which included heating, ventilation and air conditioning (“HVAC”) repairs at the Lancer Center Property, plumbing repairs at the Salisbury Marketplace Property, and snow removal expenses at each property. Decreased Adjusted Net Operating Income from the Ashley Plaza Property was a result of increased operating expenses due to a major plumbing repair. These decreases in Adjusted Net Operating Income were slightly offset by an increase in Adjusted Net Operating Income from the Franklin Square Property due to slightly increased cash revenues from new leases and contractual rent escalations and a decrease in operating expenses due to reduced repair and maintenance expenses.
Current wording
Decreased Adjusted Net Operating Income from the Lancer Center Property resulted from a decline in retail center property revenues due to a continuing vacancy and an increase in operating expenses. Decreased Adjusted Net Operating Income from the Ashley Plaza and Salisbury Marketplace properties were primarily a result of increased operating expenses. These decreases in Adjusted Net Operating Income were slightly offset by an increase in Adjusted Net Operating Income from the Franklin Square Property due to increased retail center property revenues from new leases and contractual rent escalations and a decrease in operating expenses.
Previous wording
Flex center property revenues were $680,563 for the three months ended March 31, 2025, an increase of $16,496 from the three months ended March 31, 2024. Increased revenues at the Greenbrier Business Center Property and Parkway Property from increased occupancy were partially offset by decreased revenues from the Brookfield Property due to a new vacancy.
Current wording
Flex center property revenues were $1,342,983 for the six months ended June 30, 2025, an increase of $11,681 from the six months ended June 30, 2024. Increased revenues at the Greenbrier Business Center Property and Parkway Property from increased occupancy were partially offset by decreased revenues from the Brookfield Property due to a vacancy.
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Rearranged current paragraphs (17)
Current report — wording carried from elsewhere
of the Lancer Outparcel and Salisbury Outparcel will not be determined until a user is identified), and (iii) the Hanover Square Outparcel consisting of 0.86 acres located adjacent to the Hanover Square Shopping Center.
Current report — wording carried from elsewhere
On October 28, 2021, we entered into the Interest Rate Protection Transaction to limit our exposure to increases in interest rates on the variable rate mortgage loan on the Parkway Property. Under this agreement, our interest rate exposure is capped at
Current report — wording carried from elsewhere
Principal components of our total revenues for our retail center properties, flex center properties and STNL revenues include base rents and tenant reimbursements. We accrue minimum (base) rent on a straight-line basis over the terms of the respective leases which results in an unbilled rent asset or deferred rent liability being recorded on the balance sheet. Certain lease agreements contain
Current report — wording carried from elsewhere
Under the accounting guidance related to the presentation of financial statements, we are required to evaluate, on a quarterly basis, whether or not our current financial condition, including our sources of liquidity at the date that the condensed consolidated financial statements are issued, will enable us to meet our obligations as they come due arising within one year of the date of the issuance of our condensed consolidated financial statements and to make a determination as to whether or not it is probable, under the application
Current report — wording carried from elsewhere
Flex center property revenues were $662,420 for the three months ended June 30, 2025, a decrease of $4,815 from the three months ended June 30, 2024. Increased revenues at the Greenbrier Business Center Property and Parkway Property from increased occupancy were partially offset by decreased revenues from the Brookfield Property due to a continuing vacancy.
Current report — wording carried from elsewhere
Revenues for the six months ended June 30, 2025 and 2024 are as follows:
Current report — wording carried from elsewhere
Adjusted Net Operating Income is a non-GAAP financial measure and is not considered a measure of operating results or cash flows from operations under GAAP.
Current report — wording carried from elsewhere
Please see below for the reconciliation of revenue and Adjusted Net Operating Income for each property.
Current report — wording carried from elsewhere
Retail Center Property Revenues and Adjusted Net Operating Income
Current report — wording carried from elsewhere
The following tables present property revenues, operating expenses and interest expense for our retail center properties for the six months ended June 30, 2025 and 2024:
Current report — wording carried from elsewhere
Property and the Salisbury Marketplace Property, which decreases were slightly offset by increased Adjusted Net Operating Income from the Franklin Square Property.
Current report — wording carried from elsewhere
Flex Center Property Revenues and Adjusted Net Operating Income
Current report — wording carried from elsewhere
STNL Property Revenues and Adjusted Net Operating Income
Current report — wording carried from elsewhere
The following tables present property operating revenues, operating expenses and interest expense for our STNL center properties for the six months ended June 30, 2025 and 2024:
Current report — wording carried from elsewhere
Total interest expense for the six months ended June 30, 2025 decreased by $468,252 over the six months ended June 30, 2024. This decrease was primarily a result of decreased interest from the sale of the Hanover Square Shopping Center Property and the redemption of the mandatorily redeemable preferred stock. Non cash interest expense, above, includes non-cash amortization of
Current report — wording carried from elsewhere
discounts and capitalized issuance costs related to the mandatorily redeemable preferred stock. See Note 5 of the accompanying notes to the unaudited condensed consolidated financial statements.
Current report — wording carried from elsewhere
Net loss was $1,420,262 for the six months ended June 30, 2025, before adjustments for net loss attributable to noncontrolling interests. After adjusting for noncontrolling interests, the net loss attributable to our common stockholders was $1,525,485.
Rearranged previous paragraphs (3)
Previous report — wording carried elsewhere
real property, such as those that may be obtained in a joint venture. While these types of investments are not intended to be a primary focus, we may make such investments in our discretion.
Previous report — wording carried elsewhere
interests. This allows our company to use FFO as a tool to measure the overall performance of its investment properties, as a whole, not just the portion of the investment properties controlled by our company’s common stockholders.
Previous report — wording carried elsewhere
a useful supplemental measure for the investing community to use in comparing us to other REITs as many REITs provide some form of adjusted or modified FFO. However, there can be no assurance that AFFO presented by us is comparable to the adjusted or modified FFO of other REITs.