SCHEDULE: Medalist REIT CEO Boosts Stake to 28.11%

Medalist Diversified REIT's CEO, Francis P. Kavanaugh, increased his beneficial ownership to 28.11% through recent stock purchases and an exchange of common stock for operating partnership units.

Summary

• Francis P. Kavanaugh, CEO of Medalist Diversified REIT, Inc., reported a beneficial ownership of 423,165 shares of Common Stock, representing 28.11% of the total outstanding shares.
• This percentage is based on 1,505,270 shares of Common Stock outstanding as of August 11, 2025, which includes 232,865 redeemable Operating Partnership (OP) Units as of that date and 160,000 OP Units redeemable on October 11, 2025.
• Between August 13, 2025, and August 27, 2025, Mr. Kavanaugh purchased an aggregate of 35,121 shares of Common Stock.
• On August 8, 2025, Mr. Kavanaugh exchanged 240,004 shares of Common Stock for 240,004 OP Units, which will become redeemable on August 8, 2026.
• Following the exchange, Mr. Kavanaugh directly and indirectly holds 388,044 OP Units redeemable for Common Stock within 60 days and no direct shares of Common Stock, prior to the subsequent purchases.

Sentiment

Score: 8

Explanation: The significant increase in beneficial ownership by the CEO, including direct stock purchases, indicates strong insider confidence and a positive outlook from management.

Positives

• The CEO, Francis P. Kavanaugh, increased his beneficial ownership in the company to 28.11%, signaling strong confidence in the company's future.
• Direct purchases of 35,121 shares of Common Stock by the CEO between August 13, 2025, and August 27, 2025, demonstrate a personal investment in the company's performance.

Future Outlook

No explicit forward-looking statements or guidance from the company were provided in this filing.

Industry Context

This filing, a Schedule 13D amendment, primarily details changes in beneficial ownership by an insider and does not provide broader industry context or trends.

Related Party Transactions

• Francis P. Kavanaugh, as CEO, exchanged 240,004 shares of Common Stock for 240,004 OP Units in the Operating Partnership, which is a related entity.
• OP Units held by BET Trust, of which Mr. Kavanaugh is trustee, are also part of his beneficial ownership.

Stakeholder Impact

• Shareholders: Increased insider ownership may be viewed positively, signaling management's belief in the company's value and potentially reducing agency costs.
• Management: The CEO's increased stake aligns his interests more closely with those of other shareholders.

Next Steps

• The 240,004 OP Units exchanged on August 8, 2025, will become redeemable on August 8, 2026.
• The 160,000 OP Units issued on October 11, 2024, will become redeemable on October 11, 2025.

Key Dates

Recommendation

The substantial increase in beneficial ownership by the CEO, Francis P. Kavanaugh, to 28.11% of the company, including recent direct purchases of common stock, signals strong insider confidence. This level of commitment from top management often precedes positive operational developments or reflects a belief that the stock is undervalued. While a Schedule 13D does not provide financial performance details, the CEO's actions suggest a favorable outlook, making the stock a potential 'buy' for investors seeking alignment with management's interests.

Keywords

Medalist Diversified REIT, REIT, Francis P. Kavanaugh, Insider Ownership, Schedule 13D, Common Stock, OP Units, Real Estate Investment Trust, Beneficial Ownership