Cash flow conversion is hindered by significant maintenance capital expenditures, such as the $631.8K outflow in 2025Q3, which frequently results in negative AFFO and precarious dividend coverage.
Medalist Diversified REIT, Inc. (MDRR) cash flow statement — 11-year operating, investing & financing cash flows
| Metric | TTM | Dec'25 | Dec'24 | Dec'23 | Dec'22 | Dec'21 | Dec'20 | Dec'19 | Dec'18 | Dec'17 | Dec'16 | Dec'15 |
|---|
| Cash from Operations | 639.26K | 1.53M | 1.8M | 104.01K | 1.19M | 832.61K | -1.68M | 805.69K | -450.77K | -43.85K | 82.71K | 99.5K |
| Operating CF Growth % | 549.31% | -14.78% | 1626.84% | -91.29% | 43.48% | 149.42% | -309.13% | 278.74% | -928.04% | -153.01% | -16.88% | - |
| Operating CF / Revenue % | 6.67% | 14.72% | 18.45% | 1.01% | 10.77% | 7.26% | -18.16% | 9.73% | -6.84% | -2.54% | - | - |
| Net Income | 7.68M | -1.94M | 744.33K | -4.57M | -4.73M | -4.36M | -9.58M | -3.8M | -2.99M | -968.55K | -46.25K | -567.34K |
| Depreciation & Amortization | 2.21M | 3.21M | 3.66M | 4.57M | 4.48M | 3.51M | 3.98M | 2.77M | 2.04M | 743.15K | 44.43K | 0 |
| Stock-Based Compensation | 224.22K | 397.18K | 277.5K | 0 | 483.1K | 149.98K | 570K | 61.6K | 790.34K | 0 | 0 | 0 |
| Other Non-Cash Items | -12.16M | 592.2K | -2.36M | 226.26K | 1.4M | 2M | 575.44K | 1.32M | 314.33K | 49.23K | -44.43K | 0 |
| Working Capital Changes | -758.21K | -729.09K | -521.53K | -125.13K | -436.41K | -207.9K | -1.25M | 457.57K | -755.82K | 132.32K | 128.96K | 666.85K |
| Cash from Investing | -4.36M | -6.98M | 2.06M | -1.48M | -9.32M | -19.14M | -414.36K | -34.93M | -5.15M | -23.92M | 0 | 0 |
| Acquisitions (Net) | 0 | 0 | 0 | 0 | 10.28M | -20.75M | 0 | 0 | -3.66M | 2.3M | 0 | 0 |
| Purchase of Investments | -20.42M | -14.71M | 0 | 0 | -10.28M | 124.64K | 0 | 0 | 0 | -24.31M | 0 | 0 |
| Sale of Investments | 9.53M | 9.53M | 0 | 0 | 421.1K | -124.64K | 0 | 0 | 568.56K | 593.45K | 0 | 0 |
| Other Investing | 7.85M | -337.93K | 2.96M | 0 | -8.72M | 2.14M | 0 | -32.79M | -4.17M | -23.72M | 0 | 0 |
| Cash from Financing | 7.51M | 3.51M | -1.6M | -474.14K | 6.4M | 20.6M | 5.12M | 32.08M | 6.67M | 24.23M | -82.75K | -99K |
| Dividends Paid | -1.89M | -602.21K | -787.03K | -354.39K | -1.19M | -642.11K | -562.54K | -2.44M | -1.21M | -422.69K | 0 | 0 |
| Common Dividends | -1.73M | 0 | -787.03K | -354.39K | -1.19M | -642.11K | -562.54K | -2.44M | -1.21M | -422.69K | 0 | 0 |
| Debt Issuance (Net) | -352.41K | 1000K | -1000K | -1000K | 1000K | 1000K | 1000K | 1000K | 123.21K | 1000K | 0 | 0 |
| Share Repurchases | 0 | -1.64M | -125.69K | -5K | -286.54K | 0 | -6.79M | 0 | 0 | 0 | -82.75K | 0 |
| Other Financing | 406.46K | -239.79K | -46.01K | 970.73K | -205.65K | -5.2K | -5.81M | 0 | 7.63M | 12.23M | -82.75K | -99K |
| Net Change in Cash | 3.79M | -1.94M | 2.26M | -1.85M | -1.72M | 2.29M | 3.02M | -2.05M | 1.06M | 262.92K | -44 | 504 |
| Exchange Rate Effect | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Cash at Beginning | 9.44M | 6.07M | 3.81M | 5.66M | 7.38M | 5.1M | 2.07M | 4.12M | 263K | 82 | 126 | 0 |
| Cash at End | 7.43M | 4.13M | 6.07M | 3.81M | 5.66M | 7.38M | 5.1M | 2.07M | 1.33M | 263K | 82 | 504 |
| Free Cash Flow | -674.48K | 76.99K | 893.74K | -1.38M | 175.32K | 295.93K | -2.1M | -1.33M | -1.44M | -251.85K | 82.71K | 99.5K |
| FCF Growth % | -647.2% | -91.39% | 164.81% | -886.61% | -40.76% | 114.1% | -57.84% | 7.46% | -470.66% | -404.5% | -16.88% | - |
| FCF / Revenue % | -7.04% | 0.74% | 9.18% | -13.42% | 1.58% | 2.58% | -22.63% | -16.07% | -21.81% | -14.6% | - | - |
Quick answers to the most common questions about buying MDRR stock.
Medalist Diversified REIT, Inc. (MDRR) generated $1.5M in net cash from operating activities in 2025. This reflects the cash generated directly from core business operations.
Medalist Diversified REIT, Inc. (MDRR) generated $0.1M in free cash flow in 2025. Free cash flow is the cash left over after capital expenditures, which can be used to pay dividends, repurchase shares, or pay down debt.
Medalist Diversified REIT, Inc. (MDRR) spent $1.5M on capital expenditures in 2025. CapEx represents the cash invested in physical assets like property, plant, and equipment to maintain or grow the business.
In 2025, Medalist Diversified REIT, Inc. (MDRR) returned $0.6M to shareholders via cash dividends and spent $1.6M on share repurchases. This shows the company's commitment to returning capital to its equity investors.
Key Metrics
Top Statement Risk
Insufficient Scale and Liquidity
Metrics are mathematically derived from official filings.
Dividend Coverage Remains Highly Precarious
As reported in quarterly financial filings, MDRR's AFFO frequently fails to cover dividend distributions, with the 2025Q4 period showing a negative AFFO of $109.7K against dividend payments of $160.7K, suggesting that the current payout policy is not supported by recurring property-level cash flow generation.
The recurring inability to generate positive AFFO indicates that the company is effectively paying dividends out of capital rather than operational earnings. Investors should monitor the dividend payout ratio closely, as the persistent shortfall suggests that the current distribution level may be unsustainable without further dilutive financing or asset sales.
Maintenance Capex Erodes Operational Cash
Based on the provided cash flow data, maintenance capital expenditures, including tenant improvements and leasing commissions, consistently consume a significant portion of FFO, as evidenced by the $631.8K in capital outflows during 2025Q3 which directly contributed to a negative AFFO of $259.1K for that period.
The high ratio of capital expenditures relative to FFO suggests that the company's fragmented portfolio requires constant reinvestment to maintain occupancy. This ongoing capital intensity appears to be a structural drag on the company's ability to reach a self-funding state, as these recurring costs are essential to preserving the underlying asset value.
FFO Masks Underlying Cash Deficits
According to the historical data, the divergence between GAAP Net Income and FFO is substantial, with 2026Q1 showing $9.0M in Net Income compared to $9.5M in FFO, a discrepancy that warrants investigation into whether non-cash gains are artificially inflating the company's perceived earnings power.
The reliance on FFO as a primary performance metric may obscure the reality of the company's cash-burning status, particularly when AFFO consistently trends lower than FFO. This suggests that the depreciation add-backs used to calculate FFO do not fully account for the actual cash costs required to keep the properties operational and competitive.
Operating Cash Flow Volatility Persists
As indicated by the quarterly cash flow statements, the conversion of GAAP operating cash flow to FFO is highly inconsistent, with OCF swinging from a negative $741.1K in 2025Q4 to a positive $1.6M in 2025Q3, highlighting the extreme sensitivity of the company's cash position to timing differences.
This volatility in operating cash flow suggests that the company's working capital management is either inefficient or subject to the lumpy nature of its diversified asset base. The lack of a stable conversion trend makes it difficult to forecast future liquidity, leaving the company vulnerable to short-term cash crunches.