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Medalist Diversified, Inc. filed its quarterly report on Form 10-Q with the SEC on November 13, 2026, covering the three and nine months ended September 30, 2026, disclosing significant gains from property disposals and a major shift in its balance sheet composition.

Key Highlights

  • Net income attributable to common stockholders was $13,193,086 for the nine months ended September 30, 2026, compared to a net loss of $1,921,433 for the same period in 2025, according to the filing.
  • Gain on disposal of investment properties totaled $21,194,206 for the nine months ended September 30, 2026, with $8,409,186 recognized in the third quarter alone.
  • Investment in marketable securities stood at $19,857,960 as of September 30, 2026, compared to zero at December 31, 2025, reflecting a new asset category on the balance sheet.
  • Total assets declined to $52,292,638 at September 30, 2026 from $77,739,611 at December 31, 2025, as investment properties, net fell from $41,187,188 to $7,930,051.
  • Mortgages payable, net decreased sharply to $4,720,412 from $32,828,863 at December 31, 2025, the filing reported.
  • Basic and diluted earnings per share were $2.85 for the three months ended September 30, 2026, and $8.79 for the nine-month period, versus losses of $0.33 and $1.47 in the respective prior-year periods.
  • Shares outstanding increased to 1,628,500 at September 30, 2026 from 1,110,000 at December 31, 2025, with common stock trading on NASDAQ:MDRR.

Property Sales Drive Medalist Diversified's Balance Sheet Transformation Through Q3 2026

According to the filing, Medalist Diversified, Inc. (NASDAQ:MDRR) reported total revenue of $690,163 for the three months ended September 30, 2026, down from $2,786,241 in the same quarter of 2025. For the nine-month period, total revenue was $4,657,850 compared to $7,573,054 a year earlier. The filing attributes a portion of 2026 revenue to a new line item, DST sponsorship program revenues, which contributed $467,292 for the nine months ended September 30, 2026, with no comparable figure in 2025.

The company disclosed that operating income for the nine months ended September 30, 2026 reached $18,399,894, a reversal from an operating loss of $1,832,381 in the prior-year period. This was driven primarily by a gain on disposal of investment properties of $21,194,206. Total operating expenses for the nine-month period were $6,027,186, up from $7,468,322 in 2025, with DST sponsorship program expenses of $916,002 representing a new cost category in 2026. The filing also reported a loss on extinguishment of debt of $546,789 for the nine months ended September 30, 2026.

The balance sheet as of September 30, 2026 reflects the effect of property disposals. Assets held for sale fell to $11,546,750 from $28,299,993 at December 31, 2025, while liabilities associated with assets held for sale dropped to $65,041 from $19,002,311. Total stockholders' equity attributable to Medalist common stockholders rose to $28,552,416 from $9,429,110 at year-end 2025, with accumulated deficit narrowing to $25,849,917 from $38,761,731. The filing stated that 1,628,500 shares of common stock were outstanding as of November 10, 2026. Dividends paid per common share were $0.2025 for the nine months ended September 30, 2026, compared to $0.2000 for the same period in 2025.

What Was Disclosed

Medalist Diversified, Inc. disclosed its unaudited condensed consolidated financial results for the three and nine months ended September 30, 2026, showing large gains from property disposals, a reduced mortgage load, new DST sponsorship program activity, and a new investment in marketable securities totaling $19,857,960.