SCHEDULE 13D: Finley Family and ALF Entities Disclose Significant Stake in Medalist Diversified REIT, Inc.

Alfred Lee Finley, Susan Finley, and ALF Operating Partners, Ltd. have filed a Schedule 13D, revealing a combined beneficial ownership of up to 12.1% of Medalist Diversified REIT, Inc.'s common stock for investment purposes.

Summary

• Alfred Lee Finley, Susan Finley, and ALF Operating Partners, Ltd. (collectively, 'Reporting Persons') have filed a Schedule 13D indicating their beneficial ownership in Medalist Diversified REIT, Inc.
• Alfred Lee Finley is deemed the beneficial owner of an aggregate of 165,099 shares of Common Stock, representing approximately 12.1% of the outstanding shares.
• Susan Finley is deemed the beneficial owner of an aggregate of 157,810 shares of Common Stock, representing approximately 11.6% of the outstanding shares.
• ALF Operating Partners, Ltd. beneficially owns 7,810 shares of Common Stock, constituting approximately 0.6% of the outstanding shares.
• ALF Acquisitions Company, LLC, as the general partner of ALF Operating Partners, Ltd., is also deemed a beneficial owner of 7,810 shares.
• The shares are held through various means: 8,849 shares by Alfred Lee Finley individually or through ALF Operating Partners, Ltd., 1,560 shares by Susan Finley individually, and 156,250 shares jointly by Alfred Lee Finley and Susan Finley.
• The total consideration for these holdings amounts to $2,552,881.23 from personal funds of Lee and Susan Finley, and $134,086.94 from working capital of ALF Operating Partners, Ltd.
• The Reporting Persons acquired and continue to hold the Common Stock for investment purposes.

Sentiment

Score: 5

Explanation: The document is a factual disclosure of beneficial ownership and investment intent, providing no explicit positive or negative sentiment regarding the company's performance or outlook beyond the act of investment itself.

Positives

• A significant stake (12.1%) by a group of investors could signal confidence in the Issuer's long-term prospects.
• The filing clarifies the ownership structure and intent of a major shareholder group.

Risks

• The Reporting Persons state they may sell all or a portion of their Common Stock depending on market conditions, which could exert downward pressure on the stock price if a large block is sold.
• The filing indicates the possibility of future purchases, which could also impact market dynamics.

Future Outlook

The Reporting Persons intend to hold their Common Stock for investment purposes. They may, depending on market conditions and other factors, sell all or a portion of their holdings, or purchase additional Common Stock, either on the open market or in private transactions.

Management Comments

• Alfred Lee Finley serves as the President of ALF Acquisitions Company, LLC, which is the general partner of ALF Operating Partners, Ltd.
• Susan Finley's principal occupation is serving as the President of SNF, Inc., a fire truck manufacturer.
• Alfred Lee Finley received 1,039 shares of Common Stock on January 28, 2025, as a grant from the board of directors under the Issuer's 2018 Equity Incentive Plan for his service on the board.

Industry Context

This filing reflects a significant ownership position taken by a group of investors in a publicly traded Real Estate Investment Trust (REIT). Such filings are common and provide transparency regarding large shareholder activities, which can influence market perception and potentially strategic direction within the REIT sector.

Corporate Governance

Related Party Transactions

• Alfred Lee Finley and Susan Finley hold 156,250 shares as joint tenants.
• Alfred Lee Finley, as the sole member and President of ALF Acquisitions Company, LLC, exercises control over shares held by ALF Operating Partners, Ltd., where ALF Acquisitions Company, LLC serves as the general partner.

Stakeholder Impact

• Shareholders: The disclosure of a significant ownership stake by a group of investors may influence market perception and potentially the stock price.
• Management: The presence of a large, active investor group could lead to increased engagement or scrutiny regarding corporate strategy and performance.

Next Steps

• The Reporting Persons may sell or purchase additional shares of Common Stock in the future, based on market conditions and their investment decisions.

Key Dates

Keywords

Medalist Diversified REIT, Schedule 13D, Beneficial Ownership, REIT, Common Stock, Investment, Shareholder, SEC Filing, Corporate Governance