Group 1 - The investment approach has received over 500 five-star reviews, indicating high satisfaction among members who are experiencing benefits [1] - The company invests significant resources, over $100,000 annually and thousands of hours, into researching profitable real estate investment opportunities [1] - REIT share prices (VNQ) have been on a steady decline for the past three years due to rising interest rates, leading to some of the highest yields seen in many years [1] Group 2 - Jussi Askola leads the High Yield Landlord investing group, providing real-time updates on his REIT portfolio and transactions [2] - The group offers features such as three distinct portfolios (core, retirement, international), buy/sell alerts, and direct access to analysts for inquiries [2] - Jussi Askola is the President of Leonberg Capital, a value-oriented investment firm that consults various investment entities on REIT investing [2]

PART I FINANCIAL INFORMATION [Item 1. Financial Statements (Unaudited)](index=4&type=section&id=Item%201.%20Financial%20Statements%20(Unaudited)) Presents unaudited condensed consolidated financial statements for Global Medical REIT Inc. as of June 30, 2025, including balance sheets, statements of operations, equity, and cash flows, with detailed notes [Condensed Consolidated Balance Sheets](index=4&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) Total assets increased to **$1.30 billion** by June 30, 2025, while total liabilities rose to **$771.9 million**, leading to a decrease in total equity from **$555.9 million** to **$525.0 million** Condensed Consolidated Balance Sheet Highlights (in thousands) | Account | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Investment in real estate, net | $1,204,159 | $1,161,995 | | Total assets | $1,296,959 | $1,256,486 | | Credit Facility, net | $698,832 | $631,732 | | Total liabilities | $771,938 | $700,570 | | Total equity | $525,021 | $555,916 | [Condensed Consolidated Statements of Operations](index=5&type=section&id=Condensed%20Consolidated%20Statements%20of%20Operations) Net income significantly improved to **$0.59 million** in Q2 2025 from a **$1.95 million** loss in Q2 2024, driven by property sales gains, with total revenue increasing for both three and six-month periods Statement of Operations Summary (in thousands, except per share amounts) | Metric | Q2 2025 | Q2 2024 | H1 2025 | H1 2024 | | :--- | :--- | :--- | :--- | :--- | | Total Revenue | $37,969 | $34,241 | $72,587 | $69,360 | | Total Expenses | $37,541 | $32,810 | $69,739 | $65,615 | | Gain (loss) on sale of properties | $207 | $(3,383) | $1,565 | $(3,383) | | Net Income (Loss) | $585 | $(1,952) | $4,322 | $362 | | Net (Loss) Income per Share | $(0.01) | $(0.05) | $0.02 | $(0.04) | [Condensed Consolidated Statements of Cash Flows](index=9&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) Net cash from operating activities was **$34.4 million** for H1 2025, while investing activities used **$66.4 million** and financing activities provided **$32.3 million**, resulting in a net cash increase of **$0.28 million** Cash Flow Summary for Six Months Ended June 30 (in thousands) | Activity | 2025 | 2024 | | :--- | :--- | :--- | | Net cash provided by operating activities | $34,411 | $33,221 | | Net cash used in investing activities | $(66,449) | $(931) | | Net cash provided by (used in) financing activities | $32,322 | $(31,196) | | **Net increase in cash** | **$284** | **$1,094** | [Notes to the Unaudited Condensed Consolidated Financial Statements](index=10&type=section&id=Notes%20to%20the%20Unaudited%20Condensed%20Consolidated%20Financial%20Statements) Detailed notes disclose accounting policies, property portfolio changes, debt structure, and equity, highlighting a five-property acquisition, three dispositions, a **$900 million** credit facility, and interest rate swaps - During H1 2025, the company acquired a five-property medical real estate portfolio and completed three property dispositions, resulting in a net gain of **$1.6 million**[50](index=50&type=chunk)[52](index=52&type=chunk) - The company has a **$900 million** unsecured syndicated credit facility, with **$702.6 million** outstanding as of June 30, 2025, and is actively discussing refinancing Term Loan A, maturing May 2026[62](index=62&type=chunk)[63](index=63&type=chunk)[67](index=67&type=chunk) - Nine interest rate swaps with a combined notional value of **$500 million** hedge interest rate risk on term loans, fixing the SOFR component at **1.36%** for Term Loan A and **2.54%** for Term Loan B[73](index=73&type=chunk) - For H1 2025, total dividends paid were **$30.5 million** on common stock, LTIP Units, and OP Units, and **$2.9 million** on Series A Preferred Stock[80](index=80&type=chunk)[83](index=83&type=chunk) [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=39&type=section&id=Item%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses financial performance, noting revenue growth from acquisitions offset by dispositions, the impact of interest rates and wage inflation, a **$69.6 million** five-property acquisition, **$9.6 million** in dispositions, and a dividend reduction to **$0.15** per share, with non-GAAP reconciliations [Executive Summary](index=47&type=section&id=Executive%20Summary) Rental revenue increased YoY due to acquisitions, with AFFO per share at **$0.23** for Q2 2025, while the Board reduced the quarterly common stock dividend to **$0.15** per share, and the real estate portfolio reached **$1.5 billion** in gross investment value Key Performance Metrics | Metric | Q2 2025 | Q2 2024 | H1 2025 | H1 2024 | | :--- | :--- | :--- | :--- | :--- | | Rental Revenue | $37,880 | $34,214 | $72,475 | $69,283 | | Net (Loss) Income per Share | $(0.01) | $(0.05) | $0.02 | $(0.04) | | FFO per Share/Unit | $0.20 | $0.20 | $0.40 | $0.41 | | AFFO per Share/Unit | $0.23 | $0.22 | $0.45 | $0.46 | | Dividends per Share | $0.15 | $0.21 | $0.36 | $0.42 | - In H1 2025, the company acquired a five-property portfolio for **$69.6 million** and completed three dispositions for gross proceeds of **$9.6 million**[155](index=155&type=chunk)[156](index=156&type=chunk) - On May 28, 2025, the Board reduced the quarterly common stock dividend to **$0.15** per share from **$0.21** per share[150](index=150&type=chunk) [Consolidated Results of Operations](index=52&type=section&id=Consolidated%20Results%20of%20Operations) Q2 2025 total revenue increased by **$3.8 million** to **$38.0 million** due to acquisitions, but total expenses rose by **$4.7 million** from G&A, operating, and interest costs, while net income improved significantly due to property sale gains - Q2 2025 revenue increased by **$3.8 million** YoY, primarily from acquisitions completed after June 30, 2024[166](index=166&type=chunk) - Q2 2025 General and administrative expenses increased by **$1.4 million** YoY, mainly due to the former CEO's separation agreement and higher non-cash LTIP compensation[167](index=167&type=chunk) - The company recorded a gain on sale of investment properties of **$0.2 million** in Q2 2025, compared to a loss of **$3.4 million** in Q2 2024[174](index=174&type=chunk) [Liquidity and Capital Resources](index=58&type=section&id=Liquidity%20and%20Capital%20Resources) The company's short-term liquidity needs include debt service and operating expenses, with active negotiations to refinance its **$350 million** Term Loan A by Q4 2025, supported by a dividend reduction and **$177 million** in unutilized Credit Facility capacity - The company is actively discussing refinancing its **$350 million** Term Loan A, maturing May 2026, with expected completion in Q4 2025[194](index=194&type=chunk) - The quarterly common stock dividend was reduced from **$0.21** to **$0.15** per share to strengthen the balance sheet and improve dividend coverage[195](index=195&type=chunk) - As of August 4, 2025, the company had **$177 million** of unutilized borrowing capacity under its Revolver[203](index=203&type=chunk) [Non-GAAP Financial Measures](index=62&type=section&id=Non-GAAP%20Financial%20Measures) This section defines and reconciles non-GAAP metrics like FFO, AFFO, and FAD, reporting Q2 2025 FFO per share at **$0.20** and AFFO per share at **$0.23**, along with EBITDAre and Adjusted EBITDAre for evaluating operating results and debt capacity FFO and AFFO Reconciliation (per share/unit) | Metric | Q2 2025 | Q2 2024 | H1 2025 | H1 2024 | | :--- | :--- | :--- | :--- | :--- | | Net (Loss) Income per Share | $(0.01) | $(0.05) | $0.02 | $(0.04) | | FFO per Share/Unit | $0.20 | $0.20 | $0.40 | $0.41 | | AFFO per Share/Unit | $0.23 | $0.22 | $0.45 | $0.46 | Adjusted EBITDAre (in thousands) | Period | Adjusted EBITDAre | | :--- | :--- | | Q2 2025 | $26,046 | | Q2 2024 | $23,984 | | H1 2025 | $50,247 | | H1 2024 | $48,758 | [Item 3. Quantitative and Qualitative Disclosures About Market Risk](index=67&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) The company's primary market risk is interest rate risk on its variable-rate debt, with a **$202.6 million** unhedged Revolver portion, where a 100 basis point SOFR increase would decrease annual cash flow by **$2.0 million**, mitigated by interest rate swaps - The company's main market risk is interest rate changes on its variable-rate debt[223](index=223&type=chunk) - As of June 30, 2025, the company had **$202.6 million** of unhedged variable-rate debt, where a 100 basis point SOFR increase would decrease annual cash flow by approximately **$2.0 million**[225](index=225&type=chunk) [Item 4. Controls and Procedures](index=69&type=section&id=Item%204.%20Controls%20and%20Procedures) Management concluded that disclosure controls and procedures were effective as of June 30, 2025, with no material changes to internal control over financial reporting during the quarter - The Principal Executive Officer and Principal Financial Officer concluded that the company's disclosure controls and procedures were effective as of June 30, 2025[230](index=230&type=chunk) - No material changes were made to internal control over financial reporting during the quarter[232](index=232&type=chunk) PART II OTHER INFORMATION [Item 1. Legal Proceedings](index=69&type=section&id=Item%201.%20Legal%20Proceedings) The company is not currently involved in any material legal proceedings, nor is it aware of any threatened litigation that would materially adversely affect its financial condition or operations - The company is not presently subject to any material litigation[234](index=234&type=chunk) [Item 1A. Risk Factors](index=69&type=section&id=Item%201A.%20Risk%20Factors) This section supplements prior risk factor disclosures, emphasizing potential adverse effects of global trade disruptions, including U.S. international trade policy changes, tariffs, and retaliatory actions, on the company's performance - A new risk factor highlights that global trade disruption, tariffs, and bilateral trade frictions could adversely affect the company's performance[236](index=236&type=chunk) [Item 5. Other Information](index=70&type=section&id=Item%205.%20Other%20Information) This section details recent tax law changes from the OBBBA, signed July 4, 2025, affecting REITs by increasing the TRS securities asset test to **25%** and making the **20%** deduction for qualified REIT dividends permanent - The OBBBA, signed July 4, 2025, increased the REIT asset test limitation on TRS securities from **20%** to **25%** of total assets, effective for taxable years after December 31, 2025[240](index=240&type=chunk) - The OBBBA also made the **20%** deduction for qualified REIT dividends permanent for non-corporate taxpayers[240](index=240&type=chunk) [Item 6. Exhibits](index=71&type=section&id=Item%206.%20Exhibits) This section lists exhibits filed with Form 10-Q, including certifications from the Principal Executive Officer and Principal Financial Officer, and Inline XBRL documents

Financial Data and Key Metrics Changes - The company reported a decrease in occupancy to 94.5% as of June 30, 2025, down from the previous quarter, primarily due to lease expirations and bankruptcies affecting properties [9][10] - The dividend was reduced from $0.21 per share to $0.15 per share, reflecting a rightsizing of the dividend as coverage dropped from 110% to 79% on a Funds Available for Distribution (FAD) basis [14][15] Business Line Data and Key Metrics Changes - The company successfully re-tenanted the Beaumont, Texas facility with Christus Health, which is now fully operational and paying rent [7] - The company completed the acquisition of a five-property portfolio of outpatient medical real estate, bringing total acquisition volume for 2024 and 2025 to approximately $150 million at a blended cash yield of 8.5% [11][12] Market Data and Key Metrics Changes - The company noted a significant increase in portfolio volumes, which averaged $300 million per quarter from 2022 to 2024, spiking to $2.1 billion in 2025 [12] - The market for higher quality assets is trading in the low to mid-six cap rates, with opportunities for higher returns available [26][28] Company Strategy and Development Direction - The company aims to renew portions of its credit facility due in 2026 and diversify its lender relationships to improve access to debt capital [13] - The management is focused on capital recycling, identifying assets for potential sale to enhance cash flows and reduce leverage [15][54] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about achieving total occupancy over 95% by the end of the year, with expectations for stabilized occupancy at the East Orange property to exceed 90% within 24 to 36 months [10] - The management team emphasized the importance of maintaining a strong balance sheet and the potential for growth through strategic acquisitions and asset management [16][36] Other Important Information - The company is committed to improving transparency and clarity in its disclosures to better communicate with investors [18] - The management is undergoing a strategic review of the portfolio to identify opportunities for improvement and growth [16] Q&A Session Summary Question: What are the immediate strategic priorities for the company? - The CEO highlighted the need to develop a cohesive strategy with the team and board, focusing on refinancing and capital recycling as immediate priorities [21][22] Question: What types of assets are being considered for capital recycling? - The CFO indicated that ideal candidates for sale would be low-yielding assets with long-term leases and high-grade tenants, while also considering assets that may not fit long-term strategies [23][24] Question: What is the target leverage for the company? - The CEO mentioned a target leverage of sub-40% or sub-six times debt, aiming for a balance sheet that allows for growth [36] Question: How is the occupancy expected to trend going forward? - The COO stated that occupancy should remain above 95%, with some episodic downturns expected but overall consistency anticipated [43] Question: What is the expected impact of the Beaumont facility on future earnings? - The CFO noted that the Beaumont asset would contribute modestly to earnings in the third quarter, following its full occupancy starting in mid-May [44] Question: What is the size of dispositions being considered? - The CEO indicated a goal of $50 million to $100 million in dispositions, depending on market conditions and pricing [54]

Financial Performance - Net loss attributable to common stockholders was $0.8 million, or $0.01 per diluted share[24], compared to a $3.1 million loss, or $0.05 per diluted share, in the prior year period[24] - Funds from operations (FFO) attributable to common stockholders and noncontrolling interest was $14.3 million, or $0.20 per share and unit[24], compared to $13.9 million, or $0.20 per share and unit, in the prior year period[24] - Adjusted funds from operations (AFFO) attributable to common stockholders and noncontrolling interest was $16.6 million, or $0.23 per share and unit[24], compared to $15.7 million, or $0.22 per share and unit, in the prior year period[24] - The company reaffirms its full year 2025 AFFO per share and unit guidance of $0.89 to $0.93[24] Portfolio and Investment Activities - Gross investment in real estate totaled $1.5 billion[9, 30] with 193 buildings across 35 states[9] - The company completed acquisitions of medical properties for an aggregate purchase price of $38.1 million with annualized base rent of $3.6 million in April 2025[24] - The company sold a medical facility in Chipley, Florida for gross proceeds of $1.4 million, resulting in a gain of $0.2 million[24] - Total annualized base rent (ABR) for the portfolio is $117.5 million[30] with a weighted average cap rate of 8.0%[9, 30] and leased occupancy of 94.5%[9, 30] Debt and Capitalization - The company's leverage was 47.2% as of June 30, 2025[24], and Net Debt / Annualized Adjusted EBITDAre was 6.8x for the second quarter of 2025[24] - As of August 4, 2025, the company's borrowing capacity under the credit facility was $177 million[24]

Core Viewpoint - Global Medical REIT (GMRE) reported quarterly funds from operations (FFO) of $0.23 per share, matching the Zacks Consensus Estimate and showing a year-over-year increase from $0.22 per share [1] Financial Performance - The company posted revenues of $37.97 million for the quarter ended June 2025, exceeding the Zacks Consensus Estimate by 6.48% and up from $34.24 million a year ago [2] - Over the last four quarters, GMRE has only surpassed consensus revenue estimates once [2] Stock Performance - GMRE shares have declined approximately 13.3% since the beginning of the year, contrasting with the S&P 500's gain of 7.6% [3] - The stock's immediate price movement will largely depend on management's commentary during the earnings call [3] Future Outlook - The current consensus FFO estimate for the upcoming quarter is $0.23 on revenues of $36.18 million, and for the current fiscal year, it is $0.91 on revenues of $143.05 million [7] - The estimate revisions trend for GMRE was mixed prior to the earnings release, resulting in a Zacks Rank 3 (Hold) for the stock, indicating expected performance in line with the market [6] Industry Context - The REIT and Equity Trust - Other industry is currently in the top 40% of over 250 Zacks industries, suggesting that stocks in the top 50% outperform those in the bottom 50% by more than 2 to 1 [8]

[Financial and Operational Highlights](index=1&type=section&id=Financial%20and%20Operational%20Highlights) [Second Quarter 2025 Highlights](index=1&type=section&id=Second%20Quarter%202025%20Highlights) In Q2 2025, Global Medical REIT reported a reduced net loss of **$0.8 million** compared to **$3.1 million** in the prior year period, with AFFO per share increasing to **$0.23** from **$0.22** Q2 2025 Key Financial Metrics (vs. Q2 2024) | Metric | Q2 2025 | Q2 2024 | | :--- | :--- | :--- | | Net Loss Attributable to Common Stockholders | $0.8 million | $3.1 million | | Net Loss per Diluted Share | $0.01 | $0.05 | | FFO per Share and Unit | $0.20 | $0.20 | | AFFO per Share and Unit | $0.23 | $0.22 | - Appointed **Mark Decker, Jr.** as **Chief Executive Officer**, **President**, and a member of the **Board of Directors** in **June 2025**[4](index=4&type=chunk) - Completed the acquisition of the remaining two properties in a five-property medical portfolio for an aggregate purchase price of **$38.1 million**[4](index=4&type=chunk) - An affiliate of CHRISTUS Health began a **fifteen-year** triple-net lease for the Beaumont, TX facility, with an initial annual base rent of **$2.9 million** and **2.5% annual rent increases**[4](index=4&type=chunk) [Six Months 2025 Highlights](index=2&type=section&id=Six%20Months%202025%20Highlights) For the first six months of 2025, the company shifted from a net loss to a net income of **$1.3 million**, with FFO and AFFO per share seeing a slight decrease to **$0.40** and **$0.45**, respectively Six Months 2025 Key Financial Metrics (vs. Six Months 2024) | Metric | Six Months 2025 | Six Months 2024 | | :--- | :--- | :--- | | Net (Loss)/Income Attributable to Common Stockholders | $1.3 million | ($2.4 million) | | Net (Loss)/Income per Diluted Share | $0.02 | ($0.04) | | FFO per Share and Unit | $0.40 | $0.41 | | AFFO per Share and Unit | $0.45 | $0.46 | - Completed the acquisition of a five-property medical real estate portfolio for a total purchase price of **$69.6 million**, adding **486,598 leasable square feet**[12](index=12&type=chunk) - Completed **three dispositions**, generating aggregate gross proceeds of **$9.6 million** and an aggregate gain of **$1.6 million**[12](index=12&type=chunk) [Financial Performance and Portfolio Status](index=2&type=section&id=Financial%20Performance%20and%20Portfolio%20Status) [Financial Results](index=2&type=section&id=Financial%20Results) For Q2 2025, rental revenue increased **10.7% YoY** to **$37.9 million**, primarily due to acquisitions, while total expenses rose to **$37.5 million** from **$32.8 million**, improving the net loss attributable to common stockholders to **$0.8 million** from **$3.1 million** - **Q2 2025** rental revenue grew **10.7% YoY** to **$37.9 million**, mainly from acquisitions completed after **June 30, 2024**[6](index=6&type=chunk) - Total expenses for **Q2 2025** increased to **$37.5 million**, up from **$32.8 million** in **Q2 2024**. The increase was primarily due to higher G&A costs from the CEO succession plan and costs related to acquisitions[7](index=7&type=chunk) - Interest expense for **Q2 2025** was **$8.0 million**, an increase from **$7.0 million** in the prior year period, due to higher average borrowings and interest rates[8](index=8&type=chunk) [Investment and Portfolio Update](index=2&type=section&id=Investment%20and%20Portfolio%20Update) In Q2 2025, the company completed a significant five-property portfolio acquisition for **$69.6 million** at a **9.0% cap rate**, disposed of a facility in Chipley, Florida for **$1.4 million**, and maintained a portfolio occupancy of **94.5%** with a weighted average lease term of **5.6 years** - Completed the acquisition of a five-property medical portfolio for **$69.6 million**, encompassing **486,598 leasable square feet** at a **9.0% cap rate**[10](index=10&type=chunk) - Sold a medical facility in Chipley, Florida, for **$1.4 million**, resulting in a **$0.2 million gain** and completing the exit from the Panama City, FL market[11](index=11&type=chunk) Portfolio Status as of June 30, 2025 | Metric | Value | | :--- | :--- | | Occupancy | 94.5% | | Leasable Square Feet | 5.2 million | | Annualized Base Rent | $117.5 million | | Weighted Average Lease Term | 5.6 years | | Weighted Average Annual Rent Escalations | 2.1% | [Balance Sheet and Capital](index=3&type=section&id=Balance%20Sheet%20and%20Capital) As of **June 30, 2025**, the company had total debt outstanding of **$713.0 million** with a leverage ratio of **47.2%** and a weighted average interest rate of **4.09%**, actively discussing the refinancing of its **$350 million Term Loan A** maturing in **May 2026** Debt Profile as of June 30, 2025 | Metric | Value | | :--- | :--- | | Total Debt Outstanding | $713.0 million | | Leverage | 47.2% | | Weighted Average Interest Rate | 4.09% | | Weighted Average Remaining Term | 1.6 years | - The company is in active discussions with lenders to refinance the **$350 million Term Loan A** maturing in **May 2026** and expects to complete the refinancing in **Q4 2025** without significant adverse changes to financial terms[16](index=16&type=chunk) - No shares of common stock were issued under the ATM program during **Q2 2025** or through **August 4, 2025**[17](index=17&type=chunk) [Dividends](index=3&type=section&id=Dividends) The Board of Directors declared a **Q2 2025** cash dividend of **$0.15 per common share**, paid in **July 2025**, targeting a Funds Available for Distribution (FAD) payout ratio **below 80%**, and also declared a quarterly cash dividend of **$0.46875 per share** for Series A Preferred Stock - Declared a **Q2 2025** cash dividend of **$0.15 per common share**. The adjusted dividend targets a FAD payout ratio of **less than 80%**[18](index=18&type=chunk) - Declared a quarterly cash dividend of **$0.46875 per share** for Series A Preferred Stock, paid on **July 31, 2025**[19](index=19&type=chunk) [2025 Guidance](index=4&type=section&id=2025%20Guidance) [Full Year 2025 AFFO Guidance](index=4&type=section&id=Full%20Year%202025%20AFFO%20Guidance) The company reaffirmed its **full-year 2025 AFFO per share and unit guidance** range of **$0.89 to $0.93**, based on assumptions including no additional unannounced acquisitions or dispositions, no new equity or debt issuances, and the exclusion of one-time CEO succession plan costs - The company reaffirmed its **full-year 2025 AFFO per share and unit guidance** of **$0.89 to $0.93**[20](index=20&type=chunk) - Key guidance assumptions include: - No additional acquisitions or dispositions beyond what has been announced - No new equity or debt issuances outside of normal Revolver activity - Exclusion of one-time CEO succession plan costs from AFFO guidance[25](index=25&type=chunk) [Financial Statements and Reconciliations](index=9&type=section&id=Financial%20Statements%20and%20Reconciliations) [Condensed Consolidated Balance Sheets](index=9&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) As of **June 30, 2025**, Global Medical REIT's total assets stood at approximately **$1.30 billion**, up from **$1.26 billion** at year-end **2024**, with total liabilities increasing to **$771.9 million** from **$700.6 million**, leading to a decrease in total equity from **$555.9 million** to **$525.0 million** Balance Sheet Summary (in thousands) | Account | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Investment in real estate, net | $1,204,159 | $1,161,995 | | Total Assets | $1,296,959 | $1,256,486 | | Total Liabilities | $771,938 | $700,570 | | Total Equity | $525,021 | $555,916 | [Condensed Consolidated Statements of Operations](index=11&type=section&id=Condensed%20Consolidated%20Statements%20of%20Operations) For the three months ended **June 30, 2025**, the company reported total revenue of **$38.0 million** and a net income of **$0.6 million**, a significant improvement from a net loss of **$2.0 million** in the same period of **2024**, with six-month net income attributable to common stockholders reaching **$1.3 million**, reversing a **$2.4 million loss** from the prior year Q2 Statement of Operations (in thousands) | Account | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | | :--- | :--- | :--- | | Rental Revenue | $37,880 | $34,214 | | Total Expenses | $37,541 | $32,810 | | Net Income (Loss) | $585 | $(1,952) | | Net (Loss) Attributable to Common Stockholders | $(800) | $(3,147) | Six Months Statement of Operations (in thousands) | Account | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :--- | :--- | :--- | | Rental Revenue | $72,475 | $69,283 | | Total Expenses | $69,739 | $65,615 | | Net Income | $4,322 | $362 | | Net (Loss) Income Attributable to Common Stockholders | $1,303 | $(2,354) | [Non-GAAP Reconciliations](index=12&type=section&id=Non-GAAP%20Reconciliations) The company provides reconciliations from GAAP Net Income to non-GAAP measures like FFO, AFFO, FAD, and EBITDAre, detailing adjustments for items such as depreciation, amortization, stock-based compensation, and gains/losses on property sales to provide a clearer view of core operating performance [FFO, AFFO and FAD Reconciliation](index=12&type=section&id=FFO,%20AFFO%20and%20FAD%20Reconciliation) For **Q2 2025**, **FFO** was **$14.3 million**, slightly up from **$13.9 million** in **Q2 2024**, while **AFFO** increased to **$16.6 million** from **$15.7 million** year-over-year, and **FAD** showed significant growth, reaching **$14.1 million** compared to **$10.5 million** in the prior-year quarter Q2 Non-GAAP Performance (in thousands) | Metric | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | | :--- | :--- | :--- | | FFO | $14,262 | $13,945 | | AFFO | $16,597 | $15,713 | | FAD | $14,074 | $10,508 | Six Months Non-GAAP Performance (in thousands) | Metric | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :--- | :--- | :--- | | FFO | $29,040 | $28,826 | | AFFO | $32,615 | $32,240 | | FAD | $27,366 | $24,489 | [EBITDAre and Adjusted EBITDAre Reconciliation](index=13&type=section&id=EBITDAre%20and%20Adjusted%20EBITDAre%20Reconciliation) In **Q2 2025**, **EBITDAre** rose to **$23.8 million** from **$22.4 million** in the prior year, with **Adjusted EBITDAre** increasing to **$26.0 million** from **$24.0 million** in **Q2 2024**, reflecting growth in core operational earnings EBITDAre Reconciliation Summary (in thousands) | Metric | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | | :--- | :--- | :--- | | Net Income (Loss) | $585 | $(1,952) | | EBITDAre | $23,792 | $22,416 | | Adjusted EBITDAre | $26,046 | $23,984 | [Supplemental Information](index=4&type=section&id=Supplemental%20Information) [Non-GAAP Financial Measures Definitions](index=5&type=section&id=Non-GAAP%20Financial%20Measures%20Definitions) This section defines the non-GAAP financial measures used by the company, including Funds From Operations (**FFO**), Adjusted Funds From Operations (**AFFO**), Funds Available For Distribution (**FAD**), and EBITDA for Real Estate (**EBITDAre**), which management believes provide useful supplemental information on operating performance for investors and analysts in the REIT industry - **FFO** is calculated per NAREIT's definition, excluding items like gains/losses from property sales and real estate depreciation to show performance from core operations[28](index=28&type=chunk) - **AFFO** adjusts FFO for certain cash and non-cash items, such as straight-line rent and stock-based compensation, to better reflect ongoing property operations[29](index=29&type=chunk) - **FAD** is derived by subtracting capital expenditures from AFFO and is used as an indicator of the cash flow available for dividend distributions[31](index=31&type=chunk) [Conference Call Information](index=4&type=section&id=Conference%20Call%20Information) The company will host a conference call and live webcast to discuss the second quarter **2025** financial results on **Wednesday, August 6, 2025, at 9:00 a.m. Eastern Time**, with access details provided for interested parties - A conference call and webcast are scheduled for **Wednesday, August 6, 2025, at 9:00 a.m. Eastern Time**[23](index=23&type=chunk) - Dial-in numbers are provided for domestic (**1-800-343-5172**) and international (**1-203-518-9856**) participants with conference ID **GMRQ2**[24](index=24&type=chunk)

Group 1 - The article promotes a portfolio strategy that generates income without the need for selling assets, aiming to simplify retirement investing [1] - It emphasizes a community-oriented approach to investing, encouraging individuals to join a group for support and education [2] - The service offers features such as model portfolios, buy/sell alerts, and regular market updates to assist investors [2] Group 2 - The article mentions that past performance does not guarantee future results, highlighting the importance of ongoing monitoring of investment positions [4][5] - It notes that recommendations are not indefinite and are subject to change based on market conditions [4]

Group 1 - The announcement of tariffs is expected to lead to widespread dividend cuts across various sectors [1] Group 2 - Roberts Berzins has over a decade of experience in financial management, focusing on corporate financial strategies and large-scale financings [2] - Berzins has contributed to the institutionalization of the REIT framework in Latvia to enhance liquidity in pan-Baltic capital markets [2] - His work includes developing national SOE financing guidelines and frameworks for channeling private capital into affordable housing [2]

PART I FINANCIAL INFORMATION [Item 1. Financial Statements (Unaudited)](index=4&type=section&id=Item%201.%20Financial%20Statements%20(Unaudited)) This section presents Global Medical REIT Inc.'s unaudited condensed consolidated financial statements as of March 31, 2025, and for the three months ended March 31, 2025 and 2024, including balance sheets, statements of operations, comprehensive income, equity, and cash flows, with detailed notes on accounting policies [Condensed Consolidated Balance Sheets](index=4&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) As of March 31, 2025, total assets increased to **$1.27 billion**, driven by real estate investment, while total liabilities rose to **$731.5 million** due to increased borrowings, leading to a decrease in total equity to **$538.1 million** Condensed Consolidated Balance Sheet Highlights (in thousands) | Account | March 31, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Investment in real estate, net | $1,178,002 | $1,161,995 | | Total assets | $1,269,555 | $1,256,486 | | Credit Facility, net | $662,782 | $631,732 | | Total liabilities | $731,452 | $700,570 | | Total equity | $538,103 | $555,916 | [Condensed Consolidated Statements of Operations](index=5&type=section&id=Condensed%20Consolidated%20Statements%20of%20Operations) Net income for Q1 2025 significantly increased to **$3.7 million** from **$2.3 million** year-over-year, primarily due to a **$1.4 million** gain on property sales, despite a slight revenue decrease to **$34.6 million** Q1 2025 vs. Q1 2024 Statement of Operations (in thousands, except per share amounts) | Metric | Three Months Ended March 31, 2025 | Three Months Ended March 31, 2024 | | :--- | :--- | :--- | | Total revenue | $34,618 | $35,118 | | Total expenses | $32,199 | $32,804 | | Gain on sale of investment properties | $1,358 | $— | | Net income | $3,737 | $2,314 | | Net income attributable to common stockholders | $2,104 | $794 | | Net income per share – basic and diluted | $0.03 | $0.01 | [Condensed Consolidated Statements of Cash Flows](index=8&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) Net cash from operations decreased to **$12.3 million** in Q1 2025, while investing activities used **$27.2 million**, and financing activities provided **$13.6 million**, resulting in a **$1.4 million** overall cash decrease Q1 2025 vs. Q1 2024 Cash Flow Summary (in thousands) | Activity | Three Months Ended March 31, 2025 | Three Months Ended March 31, 2024 | | :--- | :--- | :--- | | Net cash provided by operating activities | $12,272 | $14,293 | | Net cash used in investing activities | ($27,224) | ($2,716) | | Net cash provided by (used in) financing activities | $13,598 | ($10,495) | | Net (decrease) increase in cash | ($1,354) | $1,082 | [Notes to the Unaudited Condensed Consolidated Financial Statements](index=9&type=section&id=Notes%20to%20the%20Unaudited%20Condensed%20Consolidated%20Financial%20Statements) Notes detail accounting policies, Q1 2025 property acquisitions and dispositions, debt structure including a **$900 million** credit facility and interest rate swaps, and the **$300 million** ATM program - During Q1 2025, the Company acquired three properties and sold two medical office buildings, resulting in a gain of **$1.3 million**[47](index=47&type=chunk)[50](index=50&type=chunk) - The Company has a **$900 million** unsecured syndicated credit facility, comprising **$500 million** in term loans and a **$400 million** revolver, with compliance to all financial covenants as of March 31, 2025[60](index=60&type=chunk)[61](index=61&type=chunk) - The Company uses nine interest rate swaps to fix the SOFR component on its **$350 million** Term Loan A at **1.36%** through April 2026 and its **$150 million** Term Loan B at **2.54%** through January 2028[69](index=69&type=chunk) - The company declared and paid quarterly dividends of **$0.21** per common share and **$0.46875** per Series A Preferred share during Q1 2025[75](index=75&type=chunk)[77](index=77&type=chunk) [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=35&type=section&id=Item%202.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses Q1 2025 financial performance, including **$31.5 million** in property acquisitions and **$8.2 million** in dispositions, monitoring interest rates and wage inflation, and addressing a tenant's Chapter 11 filing, while reconciling GAAP to non-GAAP metrics - The company's strategy focuses on investing in healthcare properties like medical office buildings in secondary markets, aiming for attractive dividends and stock price appreciation[128](index=128&type=chunk)[130](index=130&type=chunk) - In Q1 2025, the company acquired three properties for **$31.5 million** and sold two properties for **$8.2 million**, resulting in a **$1.4 million** gain[147](index=147&type=chunk)[148](index=148&type=chunk) - A tenant, Prospect Medical Group, filed for Chapter 11 bankruptcy, with an agreement reached for lease rejection at the East Orange, NJ facility and payment of post-petition amounts due through February 2025[149](index=149&type=chunk) Q1 2025 vs. Q1 2024 Key Performance Metrics (per share/unit) | Metric | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Net income attributable to common stockholders | $0.03 | $0.01 | | FFO attributable to common stockholders | $0.20 | $0.21 | | AFFO attributable to common stockholders | $0.22 | $0.23 | | Dividends per share of common stock | $0.21 | $0.21 | [Consolidated Results of Operations](index=47&type=section&id=Consolidated%20Results%20of%20Operations) Q1 2025 total revenue decreased by **$0.5 million** to **$34.6 million** due to dispositions, while G&A expenses fell by **$0.8 million**, and a **$1.4 million** gain on property sales drove net income to **$3.7 million** - Total revenue decreased by **$0.5 million** year-over-year, primarily due to property dispositions completed since March 31, 2024[160](index=160&type=chunk)[162](index=162&type=chunk) - General and administrative expenses decreased by **$0.8 million**, mainly due to a **$1.0 million** reduction in non-cash LTIP compensation expense related to the CEO's transition agreement[163](index=163&type=chunk) - Interest expense rose by **$0.3 million** due to higher average debt balances, despite a slight decrease in the weighted average interest rate from **3.90%** to **3.83%**[167](index=167&type=chunk)[168](index=168&type=chunk) - A gain on sale of investment properties of **$1.4 million** was recognized in Q1 2025, with no comparable gains in Q1 2024[170](index=170&type=chunk) [Liquidity and Capital Resources](index=50&type=section&id=Liquidity%20and%20Capital%20Resources) Liquidity is sourced from operations, debt, and equity, with **$187 million** available on the Revolver and a **$300 million** ATM program, while fixed-rate debt totals **$514.3 million** at **3.18%** - Short-term liquidity requirements include interest, principal payments, including a **$13 million** loan maturing in July 2025, G&A expenses, and dividends[176](index=176&type=chunk) - Primary external liquidity sources are the Credit Facility and equity issuances, with **$187 million** available on the Revolver as of May 6, 2025[181](index=181&type=chunk)[183](index=183&type=chunk) - The company has a **$300 million** "at-the-market" (ATM) equity offering program, with no shares sold under it during Q1 2025[182](index=182&type=chunk) - Net cash from financing activities provided **$13.6 million** in Q1 2025, a reversal from a **$10.5 million** use in Q1 2024, driven by higher net borrowings on the Credit Facility[191](index=191&type=chunk) [Non-GAAP Financial Measures](index=54&type=section&id=Non-GAAP%20Financial%20Measures) The company utilizes non-GAAP measures like FFO and AFFO, reporting Q1 2025 FFO per share at **$0.20** and AFFO per share at **$0.22**, with detailed reconciliations provided Reconciliation of Net Income to FFO and AFFO (in thousands) | Metric | Three Months Ended March 31, 2025 | Three Months Ended March 31, 2024 | | :--- | :--- | :--- | | Net income | $3,737 | $2,314 | | **FFO attributable to common stockholders** | **$14,779** | **$14,883** | | **AFFO attributable to common stockholders** | **$16,019** | **$16,529** | Reconciliation of Net Income to EBITDAre and Adjusted EBITDAre (in thousands) | Metric | Three Months Ended March 31, 2025 | Three Months Ended March 31, 2024 | | :--- | :--- | :--- | | Net income | $3,737 | $2,314 | | **EBITDAre** | **$23,458** | **$23,288** | | **Adjusted EBITDAre** | **$24,200** | **$24,772** | [Item 3. Quantitative and Qualitative Disclosures About Market Risk](index=57&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) Primary market risk is interest rate fluctuations on variable-rate debt, with **$167.1 million** unhedged borrowings; a **100 basis point** SOFR increase would reduce annual cash flow by **$1.7 million**, mitigated by interest rate swaps - The primary market risk is interest rate changes affecting debt used to acquire facilities, particularly borrowings under the Credit Facility[201](index=201&type=chunk)[202](index=202&type=chunk) - As of March 31, 2025, the company had **$167.1 million** of unhedged variable-rate debt; a **100 basis point** change in SOFR would impact annual cash flow by approximately **$1.7 million**[203](index=203&type=chunk) - The company's risk management objectives are to limit the impact of interest rate changes and lower borrowing costs, utilizing instruments like interest rate swaps[204](index=204&type=chunk) [Item 4. Controls and Procedures](index=59&type=section&id=Item%204.%20Controls%20and%20Procedures) Management concluded disclosure controls and procedures were effective as of March 31, 2025, with no material changes to internal control over financial reporting during the quarter - The Principal Executive Officer and Principal Financial Officer concluded that the company's disclosure controls and procedures were effective as of March 31, 2025[207](index=207&type=chunk) - No changes were made to internal control over financial reporting during the most recently completed fiscal quarter that have materially affected, or are reasonably likely to materially affect, internal controls[209](index=209&type=chunk) PART II OTHER INFORMATION [Item 1. Legal Proceedings](index=59&type=section&id=Item%201.%20Legal%20Proceedings) The company is not currently involved in any material legal proceedings, nor is it aware of any threatened litigation that would materially impact its financial condition - The Company is not presently subject to any material litigation nor is any material litigation threatened against it[211](index=211&type=chunk) [Item 1A. Risk Factors](index=59&type=section&id=Item%201A.%20Risk%20Factors) This section supplements annual risk factors, highlighting potential adverse effects of global trade disruptions, trade barriers, and economic downturns on company performance - A new risk factor is disclosed concerning global trade disruption, trade barriers, and bilateral trade frictions, which could adversely affect the company's performance[213](index=213&type=chunk) [Item 2. Unregistered Sales of Equity Securities and Use of Proceeds](index=61&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) No unregistered sales of equity securities occurred during the period - None[214](index=214&type=chunk) [Item 3. Defaults Upon Senior Securities](index=61&type=section&id=Item%203.%20Defaults%20Upon%20Senior%20Securities) No defaults upon senior securities occurred during the period - None[215](index=215&type=chunk) [Item 5. Other Information](index=61&type=section&id=Item%205.%20Other%20Information) No other information to report for the period - None[217](index=217&type=chunk) [Item 6. Exhibits](index=62&type=section&id=Item%206.%20Exhibits) This section lists exhibits filed with Form 10-Q, including CEO/CFO certifications and XBRL data, incorporating previously filed documents by reference - The report includes CEO and CFO certifications (Exhibits 31.1, 31.2, 32.1) and Inline XBRL documents as filed exhibits[218](index=218&type=chunk)

Financial Data and Key Metrics Changes - At the end of Q1 2025, net income attributable to common shareholders was $2.1 million or $0.03 per share, compared to $800,000 or $0.01 per share in Q1 2024 [5][17] - FFO attributable to common shareholders and non-controlling interest was $14.8 million or $0.20 per share in Q1 2025, down from $14.9 million or $0.21 per share in Q1 2024 [6][17] - AFFO attributable to common stockholders and non-controlling interest was $16 million or $0.22 per share in Q1 2025, down from $16.5 million or $0.23 per share in Q1 2024 [6][17] - Total revenues decreased by approximately 1.4% to $34.6 million in Q1 2025 compared to the prior year [15] - Total expenses for Q1 2025 were $32.2 million, down from $32.8 million in the prior year [15] Business Line Data and Key Metrics Changes - Portfolio occupancy was 95.6% with a weighted average lease term of 5.6 years and a rent coverage ratio of 4.4 times [5][15] - The company completed the acquisition of a five-property portfolio for $69.6 million at a 9% cap rate, with an annualized base rent of $6.3 million [6][9] - Two medical properties were sold for gross proceeds of $8.2 million, resulting in a gain of $1.4 million [7][13] Market Data and Key Metrics Changes - The investment market showed signs of optimism with an uptick in transaction volume expected in 2025, following a significant decline in 2023 and 2024 [64] - The cap rate spread between high-quality and lower-quality assets is at a historical high, with high-quality assets trading below 6% and lower-quality assets in the high 7% to 8% range [64] Company Strategy and Development Direction - The company aims to leverage its competitive advantages in scale and capital access to secure high-quality acquisitions while maintaining a commitment to quality [14] - The CEO succession plan is in progress, with expectations to have a new CEO in place by June 30, 2025 [7][8] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to navigate the current environment, citing a high-quality portfolio and liquidity for selective acquisitions [23] - The company expects to retain 75% of expiring leases on a square foot basis for the full year 2025, despite some volatility in occupancy rates [20][50] Other Important Information - The company has a gross investment in real estate of $1.5 billion and total gross debt of $681 million, with a leverage ratio of 46.1% [21][22] - The company reaffirmed its full-year 2025 AFFO per share guidance range of $0.89 to $0.93, excluding one-time expenses related to the CEO succession plan [22][23] Q&A Session Summary Question: Can you discuss the potential timeline and amount of rent expected to collect upon releasing the East Orange facility? - Management is working to convert subtenants to direct tenants and is optimistic about leasing activity, with expected net rents in the mid $13 to $15 range [25][29] Question: Is the impact of Prospect Medical included in guidance? - Yes, the impact is factored into guidance but is not significant relative to overall NOI [32] Question: What is the outlook for dispositions and capital markets activity? - Dispositions are regularly discussed, but no immediate sales are planned; financing discussions are ongoing with lenders [40][42] Question: How is the dividend being considered in light of CapEx and leverage? - Dividend discussions are ongoing, with considerations tied to strategic direction and refinancing [46][47] Question: What is the current leverage target and willingness to increase it for acquisitions? - The company aims to maintain leverage around 40-45%, willing to exceed this for strategic acquisitions [58][59] Question: Any updates on the other Stewart assets? - The company is actively working to lease the remaining Stewart assets and is optimistic about completion by June 30 [70]