What is Medalist Diversified REIT Probability of Financial Distress (%)?
Probability of Financial Distress (%) measures the probability that a company will go bankrupt in the upcoming year given its current financial position. A higher ratio indicates a larger probability of bankruptcy for the company, while a lower ratio indicates a healthier fundamental. As of today, Medalist Diversified REIT's Probability of Financial Distress (%) is 0.07%.
Like the Altman Z-Score, the PFD measures a company's bankruptcy risk. However, the main drawback of the Z-score is it does not apply to banks and insurance companies. According to Investopedia, the concept of "working capital" does not apply to banks and insurance companies, as financial institutions do not have typical current assets or current liabilities like inventories or accounts payable.
Competitive Comparison of Medalist Diversified REIT's Probability of Financial Distress (%)
For the REIT - Diversified subindustry, Medalist Diversified REIT's Probability of Financial Distress (%), along with its competitors' market caps and Probability of Financial Distress (%) data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Medalist Diversified REIT's Probability of Financial Distress (%) Distribution in the REITs Industry
For the REITs industry and Real Estate sector, Medalist Diversified REIT's Probability of Financial Distress (%) distribution charts can be found below:
* The bar in red indicates where Medalist Diversified REIT's Probability of Financial Distress (%) falls into.
Medalist Diversified REIT Probability of Financial Distress (%) Calculation
Probability of Financial Distress (%) (PFD) was developed by John Campbell, Jens Hilscher and Jan Szilagyi in their Search of Distress Risk. It measures the probability that a company will go bankrupt within the next 12 months given its current financial position.
The Probability of Financial Distress (%) was obtained by a logit probability model based on eight explanatory variables. The logit formula to compute the probability of financial distress (LPFD) is given below:
| LPFD | = | -20.12 * NIMTAAVG | + | 1.60 * TLMTA | - | 7.88 * EXRETAVG | + | 1.55 * SIGMA | - | 0.005 * RSIZE | - | 2.27 * CASHMTA | + | 0.070 * MB | - | 0.09 * PRICE | - | 8.87 |
| = | -7.27 |
The Probability of Financial Distress (%) (PFD) was then obtianed by:
| PFD | = | 1 | / | (1 + e^(-LPFD)) | * | 100% |
| = | 0.07% |
The eight explanatory variables are:
1. NIMTAAVG = Net Income to Market Total Assets
*Note that for companies reported quarterly, geometrically declining weighted quarterly Net Income data in latest four quarters are used.
2. TLMTA = Total liabilities to Market Total Assets
3. CASHMTA = Cash to Market Total Assets
For non-financial companies, CASHMTA is measured as:
4. EXRETAVG = Excess Return compared to the S&P 500
EXRETAVG is the weighted excess return compared to the S&P 500 in past 12 month. Geometrically declining weights are imposed on the monthly excess return to reflect lagged information. The weight is halved each quarter.
5. SIGMA = Standard Deviation of Daily Returns
For sigma, we use the annualized standard deviation of a company's returns over the past 92 days (or 63 trading days).
6. RSIZE = Relative Size
| RSIZE | = | log (Market Cap | / | Total Market Cap of S&P 500 companies) |
7. MB = Market to Adjusted Book Equity Ratio
8. PRICE
PRICE is measured as the log of the stock price, capped at log(15).
Medalist Diversified REIT Business Description
Traded in Other Exchanges
N/A
Address
P. O. Box 8436, Richmond, VA, USA, 23226
Medalist Diversified REIT Inc is engaged in the acquisition, reposition, renovation, leasing, and managing of income-producing properties with a focus on commercial properties, including flex-industrial and retail properties, multi-family residential properties, and hotel properties. The company operates as a UPREIT and owns properties through its subsidiary, Medalist Diversified Holdings, LP. Its principal objectives include sourcing value-added Investments in markets in which it maintains deep industry relationships and local market knowledge and the creation of value for stockholders by utilizing its relationships and local knowledge of commercial real estate investment, management, and disposition.
Executives
| Benjamin Ore |
other: Senior Accountant |
12215 HAMPTON VALLEY TURN, CHESTERFIELD VA 23832 |
| Winn Charles Brent Jr. |
officer: Chief Financial Officer |
9601 CRAGMONT DRIVE, RICHMOND VA 23229 |
| Frank Kavanaugh |
director, 10 percent owner |
3419 VIA LIDO, SUITE 470, NEWPORT BEACH CA 92663 |
| Timothy Patrick O'brien |
director |
7504 HACKAMORE DRIVE, POTOMAC MD 20854 |
| Neil P Farmer |
director |
7 SHADOW LANE, RICHMOND VA 23229 |
| Emanuel D Neuman |
director |
C/O MEDALIST DIVERSIFIED REIT, INC., PO BOX 8436, RICHAMOND VA 23226 |
| David Lunin |
director |
C/O MEDALIST DIVERSIFIED REIT, INC., PO BOX 8436, RICHMOND VA 23226 |
| Elliott Colin |
other: Vice President |
2915 MONUMENT AVE., RICHMOND VA 23221 |
| Alfred Lee Finley |
10 percent owner |
2800 GOLDEN TRIANGLE BLVD, FORT WORTH TX 76177 |
| Thomas E Messier |
director, officer: See Remarks |
11 S. 12TH STREET, SUITE 401, RICHMOND VA 23219 |
| Alf Operating Partners, Ltd. |
10 percent owner |
2800 GOLDEN TRIANGLE BLVD, FORT WORTH TX 76177 |
| Susan Finley |
10 percent owner |
2800 GOLDEN TRIANGLE BLVD, FORT WORTH TX 76177 |
| Alf Acquisitions Company, Llc |
10 percent owner |
2800 GOLDEN TRIANGLE BLVD, FORT WORTH TX 76177 |
| Bitnile Holdings, Inc. |
10 percent owner |
11411 SOUTHERN HIGHLANDS PARKWAY, SUITE 240, LAS VEGAS NV 89141 |
| Dianna Raedle |
director |
240 CENTRAL PARK SOUTH, APT 6B, NEW YORK NY 10019 |
Medalist Diversified REIT Headlines
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