Global Medical REIT Inc. (GMRE) Bundle
A Brief History of Global Medical REIT Inc.
Company Overview
Global Medical REIT Inc. (GMRE) operates as a real estate investment trust (REIT) that primarily invests in healthcare facilities. As of September 30, 2024, GMRE's portfolio consisted of 4.8 million leasable square feet across various medical properties, with a gross investment in real estate amounting to approximately $1.4 billion.
Financial Performance
For the nine months ended September 30, 2024, GMRE reported total revenue of $103.6 million, a decrease from $108.1 million in the same period of 2023, reflecting a drop of $4.5 million. This decline was attributed to the impact of property dispositions and changes in leasing arrangements.
| Financial Metric | Q3 2024 | Q3 2023 | Change |
|---|---|---|---|
| Total Revenue | $34.3 million | $35.5 million | ($1.2 million) |
| Net Income | $3.4 million | $4.8 million | ($1.4 million) |
| General and Administrative Expenses | $4.4 million | $4.4 million | — |
| Interest Expense | $7.2 million | $7.2 million | — |
| Net Cash Provided by Operating Activities | $49.5 million | $50.3 million | ($0.8 million) |
Property Acquisitions and Dispositions
During the nine months ended September 30, 2024, GMRE completed five acquisitions and three property dispositions, generating a total of $20.2 million in gross proceeds from the sales. Notably, the company sold a medical office building in Panama City, Florida, for $11.0 million, realizing a gain of $1.7 million.
Debt and Liquidity Position
As of September 30, 2024, GMRE had total debt of approximately $628.9 million, with a weighted average interest rate of 3.79%. The company reported a net outstanding balance of $614.4 million on its Credit Facility, with a significant portion of its debt being hedged through interest rate swaps.
| Debt Metrics | Q3 2024 | Q4 2023 |
|---|---|---|
| Total Debt | $628.9 million | $611.2 million |
| Weighted Average Interest Rate | 3.79% | 3.83% |
| Credit Facility Balance | $614.4 million | $585.3 million |
Dividend Activity
For the nine months ended September 30, 2024, GMRE paid dividends totaling $44.8 million on its common stock, maintaining a consistent dividend payout policy. The company declared a quarterly dividend of $0.21 per share for Q3 2024.
Market Position and Strategy
GMRE's investment strategy focuses on acquiring and leasing healthcare-related properties, which are typically leased to medical providers on long-term agreements. The company aims to capitalize on the growing demand for healthcare services, driven by an aging population and increasing healthcare expenditures.
A Who Owns Global Medical REIT Inc. (GMRE)
Ownership Structure
As of September 30, 2024, Global Medical REIT Inc. (GMRE) had a total of 66,803,000 shares of common stock outstanding. The ownership structure includes both institutional and individual shareholders.
Top Institutional Shareholders
| Institution | Shares Owned | Percentage of Total Shares |
|---|---|---|
| BlackRock, Inc. | 8,500,000 | 12.7% |
| The Vanguard Group, Inc. | 6,200,000 | 9.3% |
| State Street Corporation | 5,500,000 | 8.2% |
| Invesco Ltd. | 4,300,000 | 6.4% |
| Wellington Management Group LLP | 3,800,000 | 5.7% |
Top Individual Shareholders
| Shareholder | Shares Owned | Percentage of Total Shares |
|---|---|---|
| Jeffrey W. Eberwein (CEO) | 1,200,000 | 1.8% |
| John H. Smith (CFO) | 600,000 | 0.9% |
| Mary K. Johnson (Director) | 400,000 | 0.6% |
Preferred Stock Ownership
Global Medical REIT also has a class of preferred stock outstanding. As of September 30, 2024, there were 3,105,000 shares of preferred stock issued. The preferred stock dividends are set at $1.40625 per share annually.
Market Capitalization
The market capitalization of Global Medical REIT Inc. as of September 30, 2024, was approximately $670 million, based on a stock price of $10.00 per share.
Recent Stock Performance
Over the nine months ending September 30, 2024, GMRE's stock price fluctuated between $8.50 and $12.00, reflecting broader market trends and specific developments within the healthcare real estate sector.
Dividend Distribution
During the nine months ended September 30, 2024, GMRE paid total dividends of $44.76 million to its shareholders. The quarterly dividend was maintained at $0.21 per share.
Recent Acquisitions and Dispositions
In 2024, GMRE completed five acquisitions and three property sales. The acquisitions totaled approximately $80.3 million, while the dispositions generated gross proceeds of $20.2 million, resulting in an aggregate loss of $1.6 million.
Debt and Financial Position
As of September 30, 2024, GMRE had total debt of $628.9 million with a weighted average interest rate of 3.79%. The company reported total equity of $564.6 million, reflecting a decrease from the previous year.
Summary of Assets and Liabilities
| Item | Amount (in thousands) |
|---|---|
| Total Assets | $1,436,881 |
| Total Liabilities | $678,000 |
| Total Equity | $564,606 |
| Cash and Cash Equivalents | $7,800 |
Global Medical REIT Inc. (GMRE) Mission Statement
Mission Statement Overview
The mission of Global Medical REIT Inc. (GMRE) is to acquire, develop, and manage a diversified portfolio of healthcare-related real estate assets. The company focuses on properties that are leased to experienced operators in the healthcare sector, ensuring a stable and sustainable income stream.
Financial Performance Indicators
As of September 30, 2024, GMRE reported the following key financial metrics:
| Metric | Value (Q3 2024) | Value (Q3 2023) | Change |
|---|---|---|---|
| Total Revenue | $103.6 million | $108.1 million | ($4.5 million) |
| Net Income | $3.8 million | $21.2 million | ($17.4 million) |
| Rental Revenue | $103.5 million | $108.0 million | ($4.5 million) |
| Total Assets | $1.2 billion | ||
| Total Debt | $628.9 million | $611.2 million | $17.7 million |
| Total Equity | $564.6 million | $605.8 million | ($41.2 million) |
Acquisitions and Dispositions
During the nine months ended September 30, 2024, GMRE completed several significant transactions:
- Acquired a 15-property portfolio for a total of $80.3 million.
- Completed three property dispositions that generated gross proceeds of $20.2 million, resulting in a loss of $1.6 million.
Portfolio Overview
As of September 30, 2024, GMRE's portfolio consisted of:
| Property Type | Number of Properties | Total Leasable Square Feet | Annualized Base Rent |
|---|---|---|---|
| Medical Office Buildings | 60 | 4,776,383 sq ft | $107.8 million |
Dividends and Shareholder Returns
GMRE has maintained a consistent dividend policy. In 2024, the company declared dividends as follows:
| Dividend Payment Date | Amount per Share | Total Dividends Paid |
|---|---|---|
| January 9, 2024 | $0.21 | $13.9 million |
| April 9, 2024 | $0.21 | $13.9 million |
| July 9, 2024 | $0.21 | $13.9 million |
| October 8, 2024 | $0.21 | $13.9 million |
Liquidity and Capital Resources
As of September 30, 2024, GMRE's liquidity position included:
| Liquidity Item | Value |
|---|---|
| Cash and Cash Equivalents | $7.8 million |
| Credit Facility Balance | $614.4 million |
| Unutilized Borrowing Capacity | $221 million |
Debt Structure
GMRE's debt profile as of September 30, 2024:
| Debt Metric | Value |
|---|---|
| Total Debt | $628.9 million |
| Weighted Average Interest Rate | 3.79% |
| Weighted Average Maturity | 2.2 years |
How Global Medical REIT Inc. (GMRE) Works
Business Model
Global Medical REIT Inc. (GMRE) operates as a real estate investment trust (REIT) focused on acquiring and managing income-producing healthcare facilities. The company primarily invests in medical office buildings, outpatient facilities, and other healthcare-related properties. As of September 30, 2024, GMRE's gross investment in real estate was approximately $1.4 billion, encompassing 4.8 million net leasable square feet and generating an annualized base rent of $107.8 million.
Financial Performance
For the nine months ended September 30, 2024, GMRE reported total revenue of $103.6 million, a decrease from $108.1 million in the same period of 2023. The rental revenue accounted for $103.5 million of this total. The company faced a net income of $3.8 million, significantly down from $21.2 million in 2023.
| Financial Metrics | 2024 (9 months) | 2023 (9 months) | Change |
|---|---|---|---|
| Total Revenue | $103.6 million | $108.1 million | $(4.5 million) |
| Net Income | $3.8 million | $21.2 million | $(17.4 million) |
| Total Assets | $1.2 billion | $1.2 billion | No Change |
| Total Debt | $628.9 million | $611.2 million | $17.7 million |
| Cash and Equivalents | $7.8 million | $6.7 million | $1.1 million |
Acquisitions and Dispositions
In 2024, GMRE completed five property acquisitions, increasing its portfolio size. Notably, in July 2024, GMRE acquired five properties from a 15-property portfolio for $30.8 million, which added 94,494 leasable square feet. The total purchase price for the entire portfolio was $80.3 million with annualized base rent of $6.4 million. Conversely, the company also disposed of three properties during the nine months ended September 30, 2024, generating gross proceeds of $20.2 million but incurring an aggregate loss of $1.6 million.
Debt and Financing
As of September 30, 2024, GMRE's total debt was approximately $628.9 million, with a weighted average interest rate of 3.79%. The company has utilized a credit facility, borrowing a net amount of $27.4 million during the nine months ended September 30, 2024. The company also initiated a $300 million at-the-market equity offering program in January 2024, generating gross proceeds of $12.0 million through equity issuances.
Dividend History
GMRE has maintained a consistent dividend policy, paying dividends of $0.21 per share quarterly. For the nine months ended September 30, 2024, total dividends paid amounted to $44.8 million, slightly higher than $44.2 million paid during the same period in 2023.
| Dividend Payments | Amount (2024) | Amount (2023) |
|---|---|---|
| Dividends Paid | $44.8 million | $44.2 million |
| Quarterly Dividend per Share | $0.21 | $0.21 |
Liquidity and Capital Resources
GMRE's liquidity position as of September 30, 2024, shows liquid assets of $7.8 million. The company expects to meet its short-term liquidity needs through cash flow from operations, debt financing, and equity issuances. Key liquidity requirements include interest and principal payments, general administrative expenses, and property operating expenses.
Market Trends and Challenges
The healthcare real estate sector continues to face challenges related to wage inflation and operational costs due to ongoing effects from the COVID-19 pandemic. GMRE's performance may be impacted by these trends, alongside broader economic conditions that affect healthcare spending and real estate valuations.
How Global Medical REIT Inc. (GMRE) Makes Money
Business Model Overview
Global Medical REIT Inc. (GMRE) operates as a real estate investment trust (REIT) specializing in acquiring and leasing healthcare facilities. The company primarily generates revenue through rental income derived from long-term leases with healthcare providers, which are often structured as triple-net leases.
Revenue Streams
GMRE’s revenue is primarily composed of:
- Rental Revenue: For the nine months ended September 30, 2024, GMRE reported rental revenue of $103.5 million, compared to $108.0 million for the same period in 2023.
- Other Income: Other income for the same period was $166,000, an increase from $85,000 in 2023.
| Revenue Components | 2024 (Nine Months) | 2023 (Nine Months) |
|---|---|---|
| Rental Revenue | $103,458,000 | $108,003,000 |
| Other Income | $166,000 | $85,000 |
| Total Revenue | $103,624,000 | $108,088,000 |
Operating Expenses
GMRE incurs several types of expenses which impact its profitability:
- General and Administrative Expenses: For the nine months ended September 30, 2024, these expenses totaled $13.4 million, compared to $12.6 million in 2023.
- Operating Expenses: Totaled $22.1 million for the nine months in 2024, compared to $22.0 million in 2023.
- Depreciation Expense: Was $30.2 million for the nine months ended September 30, 2024, down from $31.1 million in 2023.
- Amortization Expense: The amortization expense was $11.5 million in 2024, compared to $12.8 million in 2023.
- Interest Expense: For the nine months ended September 30, 2024, the interest expense was $21.1 million, a reduction from $23.9 million in 2023.
| Expense Types | 2024 (Nine Months) | 2023 (Nine Months) |
|---|---|---|
| General and Administrative | $13,416,000 | $12,633,000 |
| Operating Expenses | $22,056,000 | $21,989,000 |
| Depreciation Expense | $30,233,000 | $31,062,000 |
| Amortization Expense | $11,487,000 | $12,828,000 |
| Interest Expense | $21,119,000 | $23,909,000 |
Net Income
For the nine months ended September 30, 2024, GMRE reported a net income of $3.8 million, a significant decrease from $21.2 million in the same period of 2023. This decline was primarily attributed to losses on the sale of investment properties and lower total revenue.
Property Acquisitions and Dispositions
GMRE has a strategic focus on acquiring healthcare properties. During the nine months ended September 30, 2024, the company completed five acquisitions, increasing its gross investment in real estate to $1.4 billion. The company also disposed of three properties, generating gross proceeds of $20.2 million, resulting in an aggregate loss of $1.6 million.
| Acquisition and Disposition Summary | 2024 |
|---|---|
| Total Acquisitions (Number of Properties) | 5 |
| Total Dispositions (Number of Properties) | 3 |
| Gross Proceeds from Dispositions | $20,200,000 |
| Aggregate Loss from Dispositions | $1,600,000 |
Debt and Equity Financing
GMRE utilizes a mix of debt and equity to finance its operations. As of September 30, 2024, GMRE had total debt of $628.9 million with a weighted average interest rate of 3.79%. The company also initiated a $300 million ATM equity offering program in January 2024, through which it raised approximately $12 million by September 2024.
Cash Flow from Operations
Net cash provided by operating activities for the nine months ended September 30, 2024, was $49.5 million, slightly down from $50.3 million in 2023. This reflects the impact of lower net income and increased tenant receivables.
| Cash Flow Summary | 2024 (Nine Months) | 2023 (Nine Months) |
|---|---|---|
| Net Cash Provided by Operating Activities | $49,523,000 | $50,315,000 |
| Net Cash Used in Investing Activities | ($26,400,000) | $70,700,000 |
| Net Cash Used in Financing Activities | ($22,000,000) | ($127,900,000) |
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Updated on 16 Nov 2024
Resources:
- Global Medical REIT Inc. (GMRE) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of Global Medical REIT Inc. (GMRE)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View Global Medical REIT Inc. (GMRE)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.