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Global Medical REIT Announces Second Quarter 2024 Financial Results

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Global Medical REIT (NYSE: GMRE) announced its Q2 2024 financial results, reporting a net loss of $3.1 million, or $0.05 per diluted share, compared to net income of $11.8 million in Q2 2023. The results were impacted by a loss on the sale of an investment property and a previous gain on sales.

FFO for the quarter was $13.9 million, or $0.20 per share and unit, down from $14.7 million in Q2 2023. AFFO was $15.7 million, or $0.22 per share and unit, slightly down from $15.9 million in the prior year.

GMRE entered into a purchase agreement for a 15-property outpatient medical real estate portfolio worth $80.3 million, closing on five properties for $30.8 million in July. Portfolio occupancy was 96.2% by June 30, 2024.

Rental revenue decreased by 5.8% year-over-year to $34.2 million, with total expenses also reducing to $32.8 million from $35 million. Interest expense for the quarter was $7 million, down from $8.5 million. The company did not issue any shares under its ATM program in Q2 2024.

Global Medical REIT (NYSE: GMRE) ha annunciato i risultati finanziari per il secondo trimestre del 2024, riportando una perdita netta di 3,1 milioni di dollari, ossia 0,05 dollari per azione diluita, rispetto a un utile netto di 11,8 milioni di dollari nel secondo trimestre del 2023. I risultati sono stati influenzati da una perdita sulla vendita di una proprietà immobiliare e da un guadagno precedente sulle vendite.

FFO per il trimestre è stato di 13,9 milioni di dollari, ovvero 0,20 dollari per azione e unità, in calo rispetto ai 14,7 milioni di dollari nel secondo trimestre del 2023. AFFO è stato di 15,7 milioni di dollari, ossia 0,22 dollari per azione e unità, leggermente in calo rispetto ai 15,9 milioni di dollari dell'anno precedente.

GMRE ha stipulato un accordo di acquisto per un portafoglio immobiliare sanitario ambulatoriale di 15 proprietà del valore di 80,3 milioni di dollari, chiudendo su cinque proprietà per 30,8 milioni di dollari a luglio. L'occupazione del portafoglio era del 96,2% al 30 giugno 2024.

I ricavi da locazione sono diminuiti del 5,8% rispetto all'anno precedente, raggiungendo i 34,2 milioni di dollari, mentre le spese totali sono scese a 32,8 milioni di dollari rispetto ai 35 milioni. Le spese per interessi del trimestre sono state di 7 milioni di dollari, in calo rispetto agli 8,5 milioni. L'azienda non ha emesso azioni attraverso il suo programma ATM nel secondo trimestre del 2024.

Global Medical REIT (NYSE: GMRE) anunció sus resultados financieros del segundo trimestre de 2024, reportando una pérdida neta de 3,1 millones de dólares, o 0,05 dólares por acción diluida, en comparación con una ganancia neta de 11,8 millones de dólares en el segundo trimestre de 2023. Los resultados fueron afectados por una pérdida en la venta de una propiedad de inversión y una ganancia anterior en ventas.

FFO para el trimestre fue de 13,9 millones de dólares, o 0,20 dólares por acción y unidad, una disminución respecto a los 14,7 millones de dólares en el segundo trimestre de 2023. AFFO fue de 15,7 millones de dólares, o 0,22 dólares por acción y unidad, ligeramente por debajo de los 15,9 millones del año anterior.

GMRE celebró un acuerdo de compra para un portafolio inmobiliario médico ambulatorio de 15 propiedades valoradas en 80,3 millones de dólares, cerrando cinco propiedades por 30,8 millones de dólares en julio. La ocupación del portafolio era del 96,2% al 30 de junio de 2024.

Los ingresos por alquiler disminuyeron un 5,8% interanual a 34,2 millones de dólares, con gastos totales también reduciéndose a 32,8 millones de dólares desde 35 millones. Los gastos por intereses para el trimestre fueron de 7 millones de dólares, una disminución de los 8,5 millones. La empresa no emitió acciones bajo su programa ATM en el segundo trimestre de 2024.

Global Medical REIT (NYSE: GMRE)는 2024년 2분기 재무 결과를 발표했으며, 순손실 310만 달러, 또는 희석 주당 0.05달러를 기록했습니다. 이는 2023년 2분기 순이익 1180만 달러에 비해 감소한 수치입니다. 결과는 투자 재산의 매각 손실과 이전 매각에서의 수익폭에 의해 영향을 받았습니다.

FFO는 이번 분기 1390만 달러, 또는 주당 0.20달러로, 2023년 2분기 1470만 달러에서 감소했습니다. AFFO는 1570만 달러, 즉 주당 0.22달러로, 전년 대비 1590만 달러에서 약간 감소했습니다.

GMRE는 8030만 달러 가치의 15개 외래 의료 부동산 포트폴리오에 대한 구매 계약을 체결하였으며, 7월에 5개 부동산을 3080만 달러에 매입하였습니다. 포트폴리오 점유율은 2024년 6월 30일 기준 96.2%였습니다.

임대 수익은 전년 대비 5.8% 감소한 3420만 달러에 이르렀고, 총 비용도 3500만 달러에서 3280만 달러로 줄었습니다. 분기 동안의 이자 비용은 700만 달러로 850만 달러에서 감소했습니다. 회사는 2024년 2분기에 ATM 프로그램을 통해 어떤 주식도 발행하지 않았습니다.

Global Medical REIT (NYSE: GMRE) a annoncé ses résultats financiers pour le deuxième trimestre 2024, signalant une perte nette de 3,1 millions de dollars, soit 0,05 dollar par action diluée, par rapport à un bénéfice net de 11,8 millions de dollars au deuxième trimestre 2023. Les résultats ont été affectés par une perte sur la vente d'un bien d'investissement et un gain précédent sur les ventes.

FFO pour le trimestre était de 13,9 millions de dollars, soit 0,20 dollar par action et unité, en baisse par rapport à 14,7 millions de dollars au deuxième trimestre 2023. AFFO s'élevait à 15,7 millions de dollars, soit 0,22 dollar par action et unité, légèrement en baisse par rapport à 15,9 millions de dollars l'année précédente.

GMRE a conclu un accord d'achat pour un portefeuille immobilier médical ambulatoire de 15 propriétés d'une valeur de 80,3 millions de dollars, fermant cinq propriétés pour 30,8 millions de dollars en juillet. Le taux d'occupation du portefeuille était de 96,2 % au 30 juin 2024.

Les revenus locatifs ont diminué de 5,8 % d'une année sur l'autre, atteignant 34,2 millions de dollars, tandis que les dépenses totales ont également diminué à 32,8 millions de dollars contre 35 millions. Les charges d'intérêts pour le trimestre s'élevaient à 7 millions de dollars, en baisse par rapport à 8,5 millions. L'entreprise n'a émis aucune action dans le cadre de son programme ATM au deuxième trimestre 2024.

Global Medical REIT (NYSE: GMRE) hat seine finanziellen Ergebnisse für das zweite Quartal 2024 bekannt gegeben und berichtet von einem Nettoverlust von 3,1 Millionen Dollar, oder 0,05 Dollar pro verwässerter Aktie, im Vergleich zu einem Nettogewinn von 11,8 Millionen Dollar im zweiten Quartal 2023. Die Ergebnisse wurden durch einen Verlust aus dem Verkauf einer Investitionsimmobilie und einen vorherigen Gewinn aus Verkäufen beeinträchtigt.

FFO für das Quartal betrug 13,9 Millionen Dollar, oder 0,20 Dollar pro Aktie und Einheit, ein Rückgang von 14,7 Millionen Dollar im zweiten Quartal 2023. AFFO betrug 15,7 Millionen Dollar, oder 0,22 Dollar pro Aktie und Einheit, leicht rückläufig von 15,9 Millionen Dollar im Vorjahr.

GMRE hat einen Kaufvertrag für ein Immobilienportfolio mit 15 ambulanten medizinischen Objekten im Wert von 80,3 Millionen Dollar abgeschlossen und im Juli fünf Objekte für 30,8 Millionen Dollar erworben. Die Belegungsrate des Portfolios betrug am 30. Juni 2024 96,2 %.

Die Mieteinnahmen sanken im Vergleich zum Vorjahr um 5,8 % auf 34,2 Millionen Dollar, während die Gesamtausgaben ebenfalls auf 32,8 Millionen Dollar von 35 Millionen Dollar gesenkt wurden. Die Zinsaufwendungen für das Quartal beliefen sich auf 7 Millionen Dollar, ein Rückgang von 8,5 Millionen Dollar. Das Unternehmen hat im zweiten Quartal 2024 keine Aktien im Rahmen seines ATM-Programms ausgegeben.

Positive
  • Completed $31 million in acquisitions of triple-net medical real estate.
  • Portfolio leased occupancy was 96.2% at June 30, 2024.
  • AFFO of $32.2 million for the first six months of 2024, up from $31.8 million in 2023.
  • Decrease in total expenses and interest expense year-over-year.
Negative
  • Net loss of $3.1 million in Q2 2024 compared to net income of $11.8 million in Q2 2023.
  • Rental revenue decreased by 5.8% year-over-year to $34.2 million.
  • FFO and AFFO both slightly down compared to prior year.
  • Impact from loss on sale of investment property and tenant issues at the Beaumont Facility.

Insights

Global Medical REIT's Q2 2024 results show a mixed performance. The company reported a net loss of $3.1 million, compared to a net income of $11.8 million in Q2 2023. However, this was largely due to a $3.4 million loss on property sale in 2024 versus a $12.8 million gain in 2023.

The company's core metrics remain relatively stable. FFO and AFFO per share decreased slightly year-over-year, from $0.21 to $0.20 and from $0.23 to $0.22 respectively. This suggests a marginal decline in operational performance.

On a positive note, GMRE completed $31 million in acquisitions in July, demonstrating continued growth. The company's portfolio remains strong with 96.2% occupancy and a weighted average lease term of 5.8 years. However, investors should monitor the situation with Steward Health Care, a tenant that filed for bankruptcy, representing 2.8% of annualized base rent.

GMRE's strategic moves in Q2 2024 reflect a cautious approach to portfolio management. The company entered into an agreement to acquire a 15-property portfolio for $80.3 million, with the first tranche of five properties closed in July for $30.8 million. This expansion aligns with their focus on outpatient medical real estate.

However, the company also sold properties in Mishawaka, Indiana and Panama City, Florida, indicating a willingness to divest underperforming assets. The Mishawaka sale resulted in a $3.4 million loss, but this proactive approach may benefit long-term portfolio quality.

GMRE's leverage ratio of 43.8% and weighted average interest rate of 3.89% on debt suggest a relatively conservative financial position. With $261 million in borrowing capacity, the company has flexibility for future acquisitions. The maintained quarterly dividend of $0.21 per share indicates stability, but investors should watch for any changes in dividend policy given the slight decline in FFO and AFFO per share.

GMRE's focus on outpatient medical real estate positions it well in the evolving healthcare landscape. The shift towards outpatient care is a long-term trend that could benefit the company's portfolio. The recent acquisitions of single-tenant, triple-net leased properties align with this strategy and could provide stable, long-term cash flows.

However, the Steward Health Care bankruptcy highlights potential risks in the healthcare real estate sector. While GMRE has received rent payments post-bankruptcy, this situation warrants close monitoring. The company's optimism about re-leasing the Beaumont Facility is positive, but uncertainties remain.

The portfolio's strong rent coverage ratio of 4.6 times indicates tenants' ability to meet lease obligations. However, the 2.2% weighted average annual rent escalations are relatively low in the current inflationary environment. This could limit organic growth and put pressure on GMRE to rely more heavily on acquisitions for expansion, potentially increasing risk if market conditions change.

Completes $31 million in Acquisitions of Single Tenant Triple Net Medical Real Estate in July

BETHESDA, Md.--(BUSINESS WIRE)-- Global Medical REIT Inc. (NYSE: GMRE) (the “Company” or “GMRE”), a net-lease medical real estate investment trust (REIT) that acquires healthcare facilities and leases those facilities to physician groups and regional and national healthcare systems, today announced financial results for the three and six months ended June 30, 2024 and other data.

Jeffrey M. Busch, Chairman, Chief Executive Officer and President stated, “During the second quarter, we continued to produce consistent results due to the quality of our portfolio and the reliability of our tenant base. On the acquisition front, during the quarter, we announced our executed purchase agreement for a 15-property portfolio of outpatient medical real estate for an aggregate purchase price of $80.3 million, and I’m pleased that in July we closed on the first tranche of this portfolio purchase, acquiring five properties for an aggregate purchase price of $30.8 million. We expect to complete the acquisition of the 10 remaining properties during the fourth quarter of 2024. Additionally, we continue to actively monitor the transaction market and remain disciplined in executing our acquisition strategy. With ample liquidity, we are well positioned to continue to pursue acquisitions that fit our portfolio quality and return criteria. I want to thank the entire team for their hard work and contributions to our results.”

Second Quarter 2024 Highlights

  • Net loss attributable to common stockholders was $3.1 million, or $0.05 per diluted share, as compared to net income attributable to common stockholders of $11.8 million, or $0.18 per diluted share, in the comparable prior year period. The results for the second quarter of 2024 include a loss on sale of an investment property of $3.4 million and the results for the second quarter of 2023 include a gain on sale of investment properties of $12.8 million.
  • Funds from Operations attributable to common stockholders and noncontrolling interest (“FFO”) of $13.9 million, or $0.20 per share and unit, as compared to $14.7 million, or $0.21 per share and unit, in the comparable prior year period.
  • Adjusted Funds from Operations attributable to common stockholders and noncontrolling interest (“AFFO”) of $15.7 million, or $0.22 per share and unit, as compared to $15.9 million, or $0.23 per share and unit, in the comparable prior year period.
  • In May 2024, we entered into a purchase agreement to acquire a 15-property portfolio of outpatient medical real estate for an aggregate purchase price of $80.3 million to be completed in two tranches.
  • In June 2024, based on its lease renewal expectations and outlook for finding a suitable replacement tenant, the Company sold its medical facility in Mishawaka, Indiana, receiving gross proceeds of $8.1 million, resulting in a loss on sale of $3.4 million.
  • Portfolio leased occupancy was 96.2% at June 30, 2024.

Six Month and Other 2024 Highlights

  • Net loss attributable to common stockholders was $2.4 million, or $0.04 per diluted share, as compared to net income attributable to common stockholders of $12.5 million, or $0.19 per diluted share, in the comparable prior year period. The results for the six-month period in 2024 include a loss on sale of an investment property of $3.4 million and the results for the six-month period in 2023 include a gain on sale of investment properties of $13.3 million.
  • FFO of $28.8 million, or $0.41 per share and unit, as compared to $29.8 million, or $0.43 per share and unit, in the comparable prior year period.
  • AFFO of $32.2 million, or $0.46 per share and unit, as compared to $31.8 million, or $0.45 per share and unit, in the comparable prior year period.
  • In July 2024, we completed the first tranche of the May purchase agreement acquiring five properties in the 15-property portfolio encompassing 94,494 leasable square feet for an aggregate purchase price of $30.8 million. These are fully occupied single tenant properties with aggregate annualized base rent of $2.5 million.
  • In July 2024, as part of our capital recycling plan, we sold a medical facility located in Panama City, Florida, receiving gross proceeds of $11.0 million. This property had a net book value of approximately $8.9 million at the time of sale.

Financial Results

Rental revenue for the second quarter 2024 decreased 5.8% year-over-year to $34.2 million, primarily reflecting the impact of the Company’s property dispositions that were completed during 2023 and the recognition of reserves for $0.8 million of rent primarily related to our tenant, Steward Health Care (“Steward”), at our facility in Beaumont, Texas (the “Beaumont Facility”) and the related write-off of $0.1 million of deferred rent.

Total expenses for the second quarter were $32.8 million, compared to $35.0 million for the comparable prior year period, primarily reflecting the impact of the Company’s property dispositions that were completed during 2023 and a reduction in interest expense discussed below.

Interest expense for the second quarter was $7.0 million, compared to $8.5 million for the comparable prior year period. This change reflects the impact of lower interest rates, due to lower leverage and the impact of our interest rate swaps, and lower average borrowings compared to the prior year period.

Net loss attributable to common stockholders for the second quarter totaled $3.1 million, or $0.05 per diluted share, compared to net income attributable to common stockholders of $11.8 million, or $0.18 per diluted share, in the comparable prior year period. The results for the second quarter of 2024 include a loss on the sale of an investment property of $3.4 million and the results for the second quarter of 2023 include a gain on sale of investment properties of $12.8 million.

The Company reported FFO of $13.9 million, or $0.20 per share and unit, and AFFO of $15.7 million, or $0.22 per share and unit, for the second quarter of 2024, compared to FFO of $14.7 million, or $0.21 per share and unit, and AFFO of $15.9 million, or $0.23 per share and unit, in the comparable prior year period.

Investment Activity

During the second quarter of 2024, the Company entered into a purchase agreement to acquire a 15-property portfolio of outpatient medical real estate for an aggregate purchase price of $80.3 million to be completed in two tranches. The properties are fully occupied and leased under triple-net or absolute triple-net leases.

In July 2024, the Company completed the first tranche of this acquisition acquiring five properties encompassing 94,494 leasable square feet for an aggregate purchase price of $30.8 million and with aggregate annualized base rent of $2.5 million. The acquisition of the remaining properties is expected to close in the fourth quarter of 2024. The Company’s obligation to close the second tranche of the acquisition is subject to certain customary terms and conditions, including due diligence reviews. Accordingly, there is no assurance that the Company will close on the second tranche of this acquisition on a timely basis, or at all.

In June 2024, the Company closed on the sale of its medical facility in Mishawaka, Indiana, receiving gross proceeds of $8.1 million, resulting in a loss of $3.4 million. The lease at this property was set to expire at the end of 2024 and the decision to dispose of the property was based on the Company’s lease renewal expectations and its outlook for finding a suitable replacement tenant. This property was part of a four-property portfolio the Company purchased in 2019.

In July 2024, as part of its capital recycling plan, the Company sold a medical facility located in Panama City, Florida, receiving gross proceeds of $11.0 million. This property had a net book value of approximately $8.9 million at the time of sale.

Portfolio Update

As of June 30, 2024, the Company’s portfolio was 96.2% occupied and comprised of 4.7 million leasable square feet with an annualized base rent of $106.0 million. As of June 30, 2024, the weighted average lease term for the Company’s portfolio was 5.8 years with weighted average annual rent escalations of 2.2%, and the Company’s portfolio rent coverage ratio was 4.6 times.

As previously disclosed, on May 6, 2024, Steward announced that it filed for Chapter 11 bankruptcy reorganization. At the time of the bankruptcy filing, Steward represented 2.8% of the Company’s annualized base rent, primarily related to the Beaumont Facility. Post-bankruptcy, the Company has received base rent payments on its leases with Steward for the months of June, July and August. The Company was actively pursuing re-leasing opportunities at the Beaumont Facility prior to the Steward bankruptcy announcement and is optimistic about its long-term prospects at this location. There can be no assurances that the Company will receive all amounts owed to it by Steward or that the Company will be able to successfully re-lease the Beaumont Facility.

Balance Sheet and Capital

At June 30, 2024, total debt outstanding, including outstanding borrowings on the credit facility and notes payable (both net of unamortized debt issuance costs), was $613.7 million and the Company’s leverage was 43.8%. As of June 30, 2024, the Company’s total debt carried a weighted average interest rate of 3.89% and a weighted average remaining term of 2.5 years.

As of August 5, 2024, the Company’s borrowing capacity under the credit facility was $261 million.

The Company did not issue any shares of common stock under its ATM program during the second quarter of 2024 or from July 1, 2024 through August 5, 2024.

Dividends

On June 6, 2024, the Board of Directors (the “Board”) declared a $0.21 per share cash dividend to common stockholders and unitholders of record as of June 21, 2024, which was paid on July 9, 2024, representing the Company’s second quarter 2024 dividend payment. The Board also declared a $0.46875 per share cash dividend to holders of record as of July 15, 2024 of the Company’s Series A Preferred Stock, which was paid on July 31, 2024. This dividend represented the Company’s quarterly dividend on its Series A Preferred Stock for the period from April 30, 2024 through July 30, 2024.

SUPPLEMENTAL INFORMATION

Details regarding these results can be found in the Company’s supplemental financial package available on the Investor Relations section of the Company’s website at http://investors.globalmedicalreit.com/.

CONFERENCE CALL AND WEBCAST INFORMATION

The Company will host a live webcast and conference call on Wednesday, August 7, 2024 at 9:00 a.m. Eastern Time. The webcast is located on the “Investor Relations” section of the Company’s website at http://investors.globalmedicalreit.com/.

To Participate via Telephone:
Dial in at least five minutes prior to start time and reference Global Medical REIT Inc.
Domestic: 1-877-704-4453
International: 1-201-389-0920

Replay:

An audio replay of the conference call will be posted on the Company’s website.

NON‐GAAP FINANCIAL MEASURES

General

Management considers certain non-GAAP financial measures to be useful supplemental measures of the Company's operating performance. For the Company, non-GAAP measures consist of Earnings Before Interest, Taxes, Depreciation and Amortization for Real Estate (“EBITDAre” and “Adjusted EBITDAre”), FFO and AFFO. A non-GAAP financial measure is generally defined as one that purports to measure financial performance, financial position or cash flows, but excludes or includes amounts that would not be so adjusted in the most comparable measure determined in accordance with GAAP. The Company reports non-GAAP financial measures because these measures are observed by management to also be among the most predominant measures used by the REIT industry and by industry analysts to evaluate REITs. For these reasons, management deems it appropriate to disclose and discuss these non-GAAP financial measures.

The non-GAAP financial measures presented herein are not necessarily identical to those presented by other real estate companies due to the fact that not all real estate companies use the same definitions. These measures should not be considered as alternatives to net income, as indicators of the Company's financial performance, or as alternatives to cash flow from operating activities as measures of the Company's liquidity, nor are these measures necessarily indicative of sufficient cash flow to fund all of the Company's needs. Management believes that in order to facilitate a clear understanding of the Company's historical consolidated operating results, these measures should be examined in conjunction with net income and cash flows from operations as presented elsewhere herein.

FFO and AFFO

FFO attributable to common stockholders and noncontrolling interest (“FFO”) and AFFO attributable to common stockholders and noncontrolling interest (“AFFO”) are non-GAAP financial measures within the meaning of the rules of the United States Securities and Exchange Commission (“SEC”). The Company considers FFO and AFFO to be important supplemental measures of its operating performance and believes FFO is frequently used by securities analysts, investors, and other interested parties in the evaluation of REITs, many of which present FFO when reporting their results. In accordance with the National Association of Real Estate Investment Trusts’ (“NAREIT”) definition, FFO means net income or loss computed in accordance with GAAP before noncontrolling interests of holders of OP units and LTIP units, excluding gains (or losses) from sales of property and extraordinary items, less preferred stock dividends, plus real estate-related depreciation and amortization (excluding amortization of debt issuance costs and the amortization of above and below market leases), and after adjustments for unconsolidated partnerships and joint ventures. Because FFO excludes real estate-related depreciation and amortization (other than amortization of debt issuance costs and above and below market lease amortization expense), the Company believes that FFO provides a performance measure that, when compared period-over-period, reflects the impact to operations from trends in occupancy rates, rental rates, operating costs, development activities and interest costs, providing perspective not immediately apparent from the closest GAAP measurement, net income or loss.

AFFO is a non-GAAP measure used by many investors and analysts to measure a real estate company’s operating performance by removing the effect of items that do not reflect ongoing property operations. Management calculates AFFO by modifying the NAREIT computation of FFO by adjusting it for certain cash and non-cash items and certain recurring and non-recurring items. For the Company these items include: (a) recurring acquisition and disposition costs, (b) loss on the extinguishment of debt, (c) recurring straight line deferred rental revenue, (d) recurring stock-based compensation expense, (e) recurring amortization of above and below market leases, (f) recurring amortization of debt issuance costs, and (g) other items.

Management believes that reporting AFFO in addition to FFO is a useful supplemental measure for the investment community to use when evaluating the operating performance of the Company on a comparative basis.

EBITDAre and Adjusted EBITDAre

We calculate EBITDAre in accordance with standards established by NAREIT and define EBITDAre as net income or loss computed in accordance with GAAP plus depreciation and amortization, interest expense, gain or loss on the sale of investment properties, and impairment loss, as applicable.

We define Adjusted EBITDAre as EBITDAre plus loss on extinguishment of debt, non-cash stock compensation expense, non-cash intangible amortization related to above and below market leases, preacquisition expense and other normalizing items. Management considers EBITDAre and Adjusted EBITDAre important measures because they provide additional information to allow management, investors, and our current and potential creditors to evaluate and compare our core operating results and our ability to service debt.

RENT COVERAGE RATIO

For purposes of calculating our portfolio weighted-average EBITDARM coverage ratio (“Rent Coverage Ratio”), we excluded credit-rated tenants or their subsidiaries for which financial statements were either not available or not sufficiently detailed. These ratios are based on the latest available information only. Most tenant financial statements are unaudited and we have not independently verified any tenant financial information (audited or unaudited) and, therefore, we cannot assure you that such information is accurate or complete. Certain other tenants (approximately 17% of our portfolio) are excluded from the calculation due to (i) lack of available financial information or (ii) small tenant size. Additionally, included within 17% of non-reporting tenants is Pipeline Healthcare, LLC, which (i) was sold to Heights Healthcare in October 2023 and is being operated under new management and (ii) occupies our only acute-care hospital asset, which is not one of our core asset classes. Additionally, our Rent Coverage Ratio adds back physician distributions and compensation. Management believes all adjustments are reasonable and necessary.

ANNUALIZED BASE RENT

Annualized base rent represents monthly base rent for June 2024, multiplied by 12 (or base rent net of annualized expenses for properties with gross leases). Accordingly, this methodology produces an annualized amount as of a point in time but does not take into account future (i) contractual rental rate increases, (ii) leasing activity or (iii) lease expirations. Additionally, leases that are accounted for on a cash-collected basis are not included in annualized base rent.

CAPITALIZATION RATE

The capitalization rate (“cap rate”) for an acquisition is calculated by dividing current Annualized Base Rent by contractual purchase price. For the portfolio capitalization rate, certain adjustments, including for subsequent capital invested, are made to the contractual purchase price.

FORWARD-LOOKING STATEMENTS

Certain statements contained herein may be considered “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995, and it is the Company’s intent that any such statements be protected by the safe harbor created thereby. These forward-looking statements are identified by their use of terms and phrases such as "anticipate," "believe," "could," "estimate," "expect," "intend," "may," "should," "plan," "predict," "project," "will," "continue" and other similar terms and phrases, including references to assumptions and forecasts of future results. Except for historical information, the statements set forth herein including, but not limited to, any statements regarding our earnings, our liquidity, our tenants’ ability to pay rent to us, expected financial performance (including future cash flows associated with new tenants or the expansion of current properties), future dividends or other financial items; any other statements concerning our plans, strategies, objectives and expectations for future operations and future portfolio occupancy rates, our pipeline of acquisition opportunities and expected acquisition activity, including the timing and/or successful completion of any acquisitions and expected rent receipts on these properties, our expected disposition activity, including the timing and/or successful completion of any dispositions and the expected use of proceeds therefrom, and any statements regarding future economic conditions or performance are forward-looking statements. These forward-looking statements are based on our current expectations, estimates and assumptions and are subject to certain risks and uncertainties. Although the Company believes that the expectations, estimates and assumptions reflected in its forward-looking statements are reasonable, actual results could differ materially from those projected or assumed in any of the Company’s forward-looking statements. Additional information concerning us and our business, including additional factors that could materially and adversely affect our financial results, include, without limitation, the risks described under Part I, Item 1A - Risk Factors, in our Annual Report on Form 10-K, our Quarterly Reports on Form 10-Q, and in our other filings with the SEC. You are cautioned not to place undue reliance on forward-looking statements. The Company does not intend, and undertakes no obligation, to update any forward-looking statement.

 

GLOBAL MEDICAL REIT INC.
Condensed Consolidated Balance Sheets
(unaudited, and in thousands, except par values)

 

 

 

As of

 

 

June 30,
2024

 

December 31,
2023

Assets

 

 

 

 

 

 

Investment in real estate:

 

 

 

 

 

 

Land

 

$

162,391

 

$

164,315

Building

 

 

1,028,539

 

 

1,035,705

Site improvements

 

 

21,960

 

 

21,974

Tenant improvements

 

 

66,004

 

 

66,358

Acquired lease intangible assets

 

 

136,394

 

 

138,617

 

 

 

1,415,288

 

 

1,426,969

Less: accumulated depreciation and amortization

 

 

(271,764)

 

 

(247,503)

Investment in real estate, net

 

 

1,143,524

 

 

1,179,466

Cash and cash equivalents

 

 

4,978

 

 

1,278

Restricted cash

 

 

2,840

 

 

5,446

Tenant receivables, net

 

 

8,073

 

 

6,762

Due from related parties

 

 

410

 

 

193

Escrow deposits

 

 

925

 

 

673

Deferred assets

 

 

28,360

 

 

27,132

Derivative asset

 

 

27,672

 

 

25,125

Goodwill

 

 

5,903

 

 

5,903

Other assets

 

 

18,530

 

 

15,722

Total assets

 

$

1,241,215

 

$

1,267,700

 

 

 

 

 

 

 

Liabilities and Equity

 

 

 

 

 

 

Liabilities:

 

 

 

 

 

 

Credit Facility, net of unamortized debt issuance costs of $5,968 and $7,067 at

June 30, 2024 and December 31, 2023, respectively

 

$

 

599,032

 

$

585,333

Notes payable, net of unamortized debt issuance costs of $40 and $66 at

June 30, 2024 and December 31, 2023, respectively

 

 

 

14,638

 

 

25,899

Accounts payable and accrued expenses

 

 

11,962

 

 

12,781

Dividends payable

 

 

16,280

 

 

16,134

Security deposits

 

 

3,973

 

 

3,688

Other liabilities

 

 

12,809

 

 

12,770

Acquired lease intangible liability, net

 

 

4,149

 

 

5,281

Total liabilities

 

 

662,843

 

 

661,886

Commitments and Contingencies

 

 

 

 

 

 

Equity:

 

 

 

 

 

 

Preferred stock, $0.001 par value, 10,000 shares authorized; 3,105 issued and outstanding at June 30, 2024 and December 31, 2023, respectively (liquidation preference of $77,625 at June 30, 2024 and December 31, 2023, respectively)

 

 

74,959

 

 

74,959

Common stock, $0.001 par value, 500,000 shares authorized; 65,588 shares and 65,565 shares issued and outstanding at June 30, 2024 and December 31, 2023, respectively

 

 

66

 

 

66

Additional paid-in capital

 

 

722,627

 

 

722,418

Accumulated deficit

 

 

(268,885)

 

 

(238,984)

Accumulated other comprehensive income

 

 

27,672

 

 

25,125

Total Global Medical REIT Inc. stockholders' equity

 

 

556,439

 

 

583,584

Noncontrolling interest

 

 

21,933

 

 

22,230

Total equity

 

 

578,372

 

 

605,814

Total liabilities and equity

 

$

1,241,215

 

$

1,267,700

 

GLOBAL MEDICAL REIT INC.
Condensed Consolidated Statements of Operations
(unaudited, and in thousands, except per share amounts)

 

 

 

Three Months Ended

June 30,

 

Six Months Ended

June 30,

 

 

2024

 

2023

 

2024

 

2023

Revenue

 

 

 

 

 

 

 

 

 

 

 

 

Rental revenue

 

$

34,214

 

$

36,317

 

$

69,283

 

$

72,517

Other income

 

 

27

 

 

34

 

 

77

 

 

64

Total revenue

 

 

34,241

 

 

36,351

 

 

69,360

 

 

72,581

 

 

 

 

 

 

 

 

 

 

 

 

 

Expenses

 

 

 

 

 

 

 

 

 

 

 

 

General and administrative

 

 

4,589

 

 

4,462

 

 

9,035

 

 

8,266

Operating expenses

 

 

7,236

 

 

7,223

 

 

14,619

 

 

14,759

Depreciation expense

 

 

10,127

 

 

10,468

 

 

20,240

 

 

20,962

Amortization expense

 

 

3,866

 

 

4,337

 

 

7,838

 

 

8,732

Interest expense

 

 

6,992

 

 

8,468

 

 

13,883

 

 

16,739

Preacquisition expense

 

 

 

 

2

 

 

 

 

44

Total expenses

 

 

32,810

 

 

34,960

 

 

65,615

 

 

69,502

 

 

 

 

 

 

 

 

 

 

 

 

 

Income before (loss) gain on sale of investment properties

 

 

1,431

 

 

1,391

 

 

3,745

 

 

3,079

(Loss) gain on sale of investment properties

 

 

(3,383)

 

 

12,786

 

 

(3,383)

 

 

13,271

 

 

 

 

 

 

 

 

 

 

 

 

 

Net (loss) income

 

$

(1,952)

 

$

14,177

 

$

362

 

$

16,350

Less: Preferred stock dividends

 

 

(1,455)

 

 

(1,455)

 

 

(2,911)

 

 

(2,911)

Less: Net loss (income) attributable to noncontrolling interest

 

 

260

 

 

(902)

 

 

195

 

 

(947)

Net (loss) income attributable to common stockholders

 

$

(3,147)

 

$

11,820

 

$

(2,354)

 

$

12,492

 

 

 

 

 

 

 

 

 

 

 

 

Net (loss) income attributable to common stockholders per share – basic and diluted

 

$

(0.05)

$

0.18

$

(0.04)

$

0.19

 

 

 

 

 

 

 

 

 

 

 

 

 

Weighted average shares outstanding – basic and diluted

 

 

65,588

 

 

65,544

 

 

65,580

 

 

65,534

 

Global Medical REIT Inc.
Reconciliation of Net Income to FFO and AFFO
(unaudited, and in thousands, except per share and unit amounts)

 

 

 

 

Three Months Ended
June 30,

 

Six Months Ended
June 30,

 

 

2024

 

2023

 

2024

 

2023

 

 

 

Net (loss) income

 

$

(1,952)

 

$

14,177

 

$

362

 

$

16,350

Less: Preferred stock dividends

 

 

(1,455)

 

 

(1,455)

 

 

(2,911)

 

 

(2,911)

Depreciation and amortization expense

 

 

13,969

 

 

14,774

 

 

27,992

 

 

29,635

Loss (gain) on sale of investment properties

 

 

3,383

 

 

(12,786)

 

 

3,383

 

 

(13,271)

FFO attributable to common stockholders and noncontrolling interest

 

$

13,945

 

$

14,710

 

$

28,826

 

$

29,803

Amortization of above market leases, net

 

 

249

 

 

287

 

 

500

 

 

578

Straight line deferred rental revenue

 

 

(363)

 

 

(879)

 

 

(763)

 

 

(1,642)

Stock-based compensation expense

 

 

1,319

 

 

1,147

 

 

2,552

 

 

1,835

Amortization of debt issuance costs and other

 

 

563

 

 

601

 

 

1,125

 

 

1,202

Preacquisition expense

 

 

 

 

2

 

 

 

 

44

AFFO attributable to common stockholders and noncontrolling interest

 

$

15,713

 

$

15,868

 

$

32,240

 

$

31,820

 

 

 

 

 

 

 

 

 

 

 

 

 

Net (loss) income attributable to common stockholders per share – basic and diluted

 

$

(0.05)

 

$

0.18

 

$

(0.04)

 

$

0.19

FFO attributable to common stockholders and noncontrolling interest per share and unit

 

$

0.20

 

$

0.21

 

$

0.41

 

$

0.43

AFFO attributable to common stockholders and noncontrolling interest per share and unit

 

$

0.22

 

$

0.23

 

$

0.46

 

$

0.45

 

 

 

 

 

 

 

 

 

 

 

 

 

Weighted Average Shares and Units Outstanding – basic and diluted

 

 

70,982

 

 

70,434

 

 

70,844

 

 

70,119

 

 

 

 

 

 

 

 

 

 

 

 

 

Weighted Average Shares and Units Outstanding:

 

 

 

 

 

 

 

 

 

 

 

 

Weighted Average Common Shares

 

 

65,588

 

 

65,544

 

 

65,580

 

 

65,534

Weighted Average OP Units

 

 

2,244

 

 

2,143

 

 

2,244

 

 

1,907

Weighted Average LTIP Units

 

 

3,150

 

 

2,747

 

 

3,020

 

 

2,678

Weighted Average Shares and Units Outstanding – basic and diluted

 

 

70,982

 

 

70,434

 

 

70,844

 

 

70,119

 

Global Medical REIT Inc.
Reconciliation of Net Income to EBITDAre and Adjusted EBITDAre
(unaudited, and in thousands)

 

 

Three Months Ended

June 30,

 

Six Months Ended

June 30,

 

2024

 

2023

 

2024

 

2023

 

 

Net (loss) income

$

(1,952)

 

$

14,177

 

$

362

 

$

16,350

Interest expense

 

6,992

 

 

8,468

 

 

13,883

 

 

16,739

Depreciation and amortization expense

 

13,993

 

 

14,805

 

 

28,078

 

 

29,694

Loss (gain) on sale of investment properties

 

3,383

 

 

(12,786)

 

 

3,383

 

 

(13,271)

EBITDAre

$

22,416

 

$

24,664

 

$

45,706

 

$

49,512

Stock-based compensation expense

 

1,319

 

 

1,147

 

 

2,552

 

 

1,835

Amortization of above market leases, net

 

249

 

 

287

 

 

500

 

 

578

Preacquisition expense

 

 

 

2

 

 

 

 

44

Adjusted EBITDAre

$

23,984

 

$

26,100

 

$

48,758

 

$

51,969

 

Investor Relations Contact:

Stephen Swett

stephen.swett@icrinc.com

203.682.8377

Source: Global Medical REIT Inc.

FAQ

What were the Q2 2024 financial results for GMRE?

GMRE reported a net loss of $3.1 million, or $0.05 per diluted share, compared to net income of $11.8 million in Q2 2023.

How much did GMRE acquire in medical real estate in July 2024?

GMRE completed $31 million in acquisitions of single tenant triple-net medical real estate in July 2024.

What was the portfolio leased occupancy for GMRE as of June 30, 2024?

As of June 30, 2024, GMRE's portfolio was 96.2% occupied.

How did GMRE's rental revenue perform in Q2 2024?

GMRE's rental revenue decreased by 5.8% year-over-year to $34.2 million in Q2 2024.

What were GMRE's FFO and AFFO for Q2 2024?

GMRE reported FFO of $13.9 million, or $0.20 per share and unit, and AFFO of $15.7 million, or $0.22 per share and unit for Q2 2024.

Global Medical REIT Inc.

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