Medalist Diversified REIT Provides Update on its Commercial and Hotel Properties
Medalist Diversified REIT, Inc. (Nasdaq:MDRR) (the “Company”), a Virginia-based real estate investment trust that specializes in acquiring, owning and managing value-add commercial real estate in the Mid-Atlantic and Southeast regions, is pleased to provide this property update.
Our company owns three retail properties and one flex center property in the Southeast. As of today, July 9, 2020, all of them are open and operating except for one tenant at the Ashely Plaza Property. Planet Fitness will remain closed until authorized to reopen by the North Carolina government but has paid its July rent in full. The following illustrates the occupancy rate for each property as of the date of this press release:
Hanover Square Shopping Center – Located in Mechanicsville, Virginia – 100% occupied
Ashley Plaza Shopping Center - Located in Goldsboro, North Carolina – 98% occupied
Franklin Square Shopping Center - Located in Gastonia, North Carolina – 83.3% occupied
Brookfield Flex/Industrial Center – Located in Greenville, North Carolina – 93% occupied
Overall, during the month of June we received 74% of contractual base rents. We have agreed to various rent deferrals and abatements with a few of our tenants and continue to work with other tenants on similar arrangements. We are in active discussions with our tenants to bring all accounts current in their contractual rents. There can be no assurance that all payment deferral plans will be consummated on the agreed-upon terms and/or if consummated, repaid as required by terms of the agreement.
Though the REIT’s hotel properties (the Hampton Inn and the Clemson Best Western Property) have experienced a reduction in occupancy rates due to COVID-19, we are pleased to announce that both hotels are open and operating. The Hampton Inn Property in Greensboro, North Carolina, has a current month to date occupancy rate of 57% but is trending positively with a current occupancy rate of 78% as of the date of this press release. We mainly attribute this growth in occupancy to a rolling 30-day contract with the City of Greensboro that provides shelter for government subsidized families in the area. The Clemson Best Western Plus Hotel in Clemson, South Carolina, has a current month to date occupancy rate of 24% but is trending positively with a current occupancy rate of 34% as of the date of this press release. We expect occupancy to increase at the Clemson Best Western if Clemson University opens on the announced date of August 14th, but we can provide no assurance that occupancy will actually increase and/or Clemson University opens on the date or terms expected at all.