KAVANAUGH FRANK → Medalist Diversified REIT, Inc. MDRR

Item 4 of the Schedule 13D is hereby amended to add the following The Shares reported herein held by the Reporting Person were acquired as described in Item 3 of this Amendment No. 3. The Reporting Person holds such Shares for investment purposes, subject to the following. The Reporting Person is the Issuer's President and Chief Executive Officer and a member of the Issuer's Board of Directors (the "Board"). In those capacities, the Reporting Person is involved in making investment decisions in constructing the Issuer's real estate portfolio and providing related portfolio management services, in accordance with the Issuer's investment guidelines, policies, objectives and limitations, and subject to oversight by the Board. Additionally, in such capacities, the Reporting Person may have influence over the corporate activities of the Issuer, including activities which may relate to items described in subparagraphs (a) through (j) of Item 4 of the Schedule 13D. As described in more detail in Item 6 below, the Reporting Person, directly and indirectly, holds OP Units and LTIP Units of the Operating Partnership, which, pursuant to the terms of the Limited Partnership Agreement, are redeemable for either cash or Shares, in the Operating Partnership's sole discretion, provided that such units have been outstanding for at least one year (or such lesser time as determined by the Issuer, as general partner of the Operating Partnership, in its sole discretion). The information in Item 6 of this Schedule 13D is incorporated herein by reference.