Medalist Diversified REIT, Inc. Concludes Strategic Alternatives Process With Potential Asset Sale and Expected Transition to Internalized Management

Medalist Diversified REIT, Inc. (NASDAQ: MDRR) (the "Company" or "Medalist"), a Virginia-based real estate investment trust that specializes in acquiring, owning and managing commercial real estate in the Southeast region of the U.S., announced today that the Special Committee (the "Special Committee”) of the Company’s Board of Directors (the “Board”) has completed its exploration of strategic alternatives.

Upon the recommendation of the Special Committee, the Board has approved the Company’s negotiation of the sale of its interests in four properties from the Company's portfolio. Consummation of the sale is subject to negotiation of, and entry into, definitive agreements and related loan assumptions, and there can be no assurance as to the sales prices or other terms of the sales, or the timing of any of the sales, or whether such sales will occur. Further information about this potential transaction will be disclosed, as appropriate.

Simultaneously, the Company announced that it is exploring diverse opportunities that might include mergers, investments, or other strategic combinations, with a focused objective of enhancing shareholder value.

In line with these strategic shifts, Medalist has commenced discussions with its external manager as to an internalization of the Company’s management. If completed, the internalization would be expected to lead to streamlined operations, reduced costs, and increased agility, while also fostering a closer alignment between management's interests and those of the Company’s shareholders. The transition to an internal management structure, if completed, would result in changes in several key leadership roles. Medalist is committed to a smooth transition process and ensuring continuity of leadership, with the primary focus on preserving and enhancing shareholder value. Consummation of an internalization is subject to negotiation of, and entry into, definitive agreements, and there can be no assurance as to the timing or terms of the internalization. Further information about this transaction will be disclosed, as appropriate.

Recognizing the need for financial stability during this transitional phase, the Board has approved the temporary suspension of dividends on the Company’s outstanding common stock and preferred stock for at least the next six months.

The Board extends its gratitude to shareholders for their patience and feedback throughout this process. As the Company ventures into this significant period of change, the Board reaffirms its commitment to enhancing shareholder value and improving company performance.