MDRR shares jump 10.19% premarket as CEO exchanges shares for partnership units to maintain REIT compliance and plans additional stock purchases.

Medalist Diversified REIT (NASDAQ:MDRR) surged 10.19% in premarket trading following the announcement that its CEO, Francis P. Kavanaugh, exchanged 2,405 shares for partnership units in Medalist Diversified Holdings, LP. The transaction, approved by the Audit Committee and Board, aims to ensure compliance with REIT ownership concentration rules, preserving the company’s tax-advantaged status. Post-exchange, Mr. Kavanaugh plans to repurchase additional shares, signaling confidence in the stock and potentially boosting investor sentiment. The move aligns with strategic efforts to maintain REIT qualification and optimize capital structure, while recent asset sales and dividend declarations further underscore operational discipline. These developments collectively reinforced positive market perception, driving the premarket rally.