Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-K ☑ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended December 31, 2024 Or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from _____________ to _____________ Commission File Number: 001-37815 Global Medical REIT Inc. (Exact name of registrant as specified in its charter) | Maryland ...

Global Medical REIT Inc. (NYSE:GMRE) Q4 2024 Earnings Conference Call February 28, 2025 9:00 AM ET Company Participants Stephen Swett - Investor Relations Jeff Busch - Chief Executive Officer Alfonzo Leon - Chief Investment Officer Bob Kiernan - Chief Financial Officer Conference Call Participants Juan Sanabria - BMO Capital Markets Austin Wurschmidt - KeyBanc Capital Markets Gaurav Mehta - Alliance Global Partners Wes Golladay - Baird Rob Stevenson - Janney Montgomery Scott Operator Greetings, and welcome ...

Atrium Health – Winston-Salem, NC FOURTH QUARTER 2024 EARNINGS SUPPLEMENTAL www.globalmedicalreit.com NYSE: GMRE TABLE OF CONTENTS Legent Hospital for Special Surgery – Plano, TX | Company Overview | 3 | | --- | --- | | Select Quarterly Financial Data | 6 | | Business Summary | 7 | | Acquisitions / Dispositions | 8 | | Portfolio Summary | 9 | | Key Tenants | 12 | | Debt and Hedging Summary | 13 | | Total Capitalization and Equity | 15 | | Summary | | | Sustainability Summary | 16 | | Condensed Consolidated ...

Financial Performance - Net income attributable to common stockholders for Q4 2024 was $1.4 million, or $0.02 per diluted share, compared to a net loss of $0.8 million, or $0.01 per diluted share in Q4 2023[5]. - Total revenue for Q4 2024 was $35,157, an increase of 6.3% compared to $32,962 in Q4 2023[47]. - Net income for the twelve months ended December 31, 2024, was $6,692, a decrease of 69.2% from $21,734 in 2023[49]. - The company reported a gain on the sale of investment properties of $5,765 in Q4 2024, compared to no gain in Q4 2023[49]. - Adjusted EBITDAre for Q4 2024 was $25,095, an increase of 4.1% compared to $24,110 in Q4 2023[51]. Funds from Operations - Funds from Operations (FFO) for Q4 2024 was $11.1 million, or $0.15 per share, down from $13.3 million, or $0.19 per share in the prior year[11]. - Funds from Operations (FFO) attributable to common stockholders for Q4 2024 was $11,051, down from $13,307 in Q4 2023, representing a decrease of 16.9%[49]. - Adjusted Funds from Operations (AFFO) for the full year 2024 was $15.8 million, or $0.22 per share, compared to $15.9 million, or $0.23 per share in 2023[7]. - The company provided 2025 AFFO guidance of $0.89 to $0.93 per share[23]. Acquisitions and Investments - The company completed the acquisition of a 15-property portfolio for $80.3 million, with an annualized base rent of $6.4 million[12]. - The company entered into a joint venture with Heitman, generating $35.2 million in gross proceeds from the sale of two assets[15]. Portfolio and Occupancy - The portfolio leased occupancy was 96.4% as of December 31, 2024, with an annualized base rent of $110 million[17]. - The annualized base rent methodology produces an annualized amount as of a point in time but does not account for future contractual rental rate increases, leasing activity, or lease expirations[38]. Debt and Equity - Total debt outstanding as of December 31, 2024, was $646.1 million, with a leverage ratio of 44.8%[19]. - The company’s total liabilities increased to $700,570,000 in 2024 from $661,886,000 in 2023[42]. - The company’s total equity decreased to $555,916,000 in 2024 from $605,814,000 in 2023[42]. - The company raised $12 million through the issuance of 1.2 million shares at an average price of $9.95 per share during 2024[20]. Cash and Dividends - A cash dividend of $0.21 per share was declared for Q1 2025, payable on April 9, 2025[21]. - Cash and cash equivalents increased to $6,815,000 in 2024 from $1,278,000 in 2023[42]. Other Financial Metrics - The company's accumulated deficit increased to $(293,736,000) in 2024 from $(238,984,000) in 2023[42]. - The weighted average shares outstanding for basic and diluted shares increased to 66,838 in Q4 2024 from 65,565 in Q4 2023[49]. - The company incurred transaction expenses of $155 in Q4 2024, compared to $44 in Q4 2023[49].

Ownership and Structure - As of September 30, 2024, the company owned 92.51% of the outstanding common operating partnership units of its Operating Partnership[122]. Revenue and Income - The company derives revenues primarily from rental and operating expense reimbursement payments, with most leases being medium to long-term triple net leases[123]. - Total revenue for the three months ended September 30, 2024, was $34.3 million, a decrease of $1.2 million compared to $35.5 million in the same period in 2023[155]. - Rental revenue for the three months ended September 30, 2024, was $34.175 million, down from $35.487 million in 2023, representing a decrease of approximately 3.7%[157]. - Net income for the three months ended September 30, 2024, was $3.391 million, compared to $4.833 million in the same period in 2023, a decrease of 29.9%[157]. - Total revenue for the nine months ended September 30, 2024 was $103.6 million, a decrease of $4.5 million compared to $108.1 million for the same period in 2023[169]. - Net income for the three months ended September 30, 2024, was $3.4 million, down from $4.8 million for the same period in 2023, a decrease of $1.4 million[167]. Funds from Operations - FFO attributable to common stockholders for the three months ended September 30, 2024, was $0.19 per share, down from $0.22 per share in 2023[1]. - AFFO attributable to common stockholders for the three months ended September 30, 2024, was $0.22 per share, compared to $0.23 per share in 2023[1]. - Funds from operations (FFO) attributable to common stockholders for the three months ended September 30, 2024 was $13.7 million, compared to $15.3 million for the same period in 2023[200]. - Adjusted funds from operations (AFFO) attributable to common stockholders for the three months ended September 30, 2024 was $15.3 million, compared to $16.5 million for the same period in 2023[203]. Debt and Financing - As of September 30, 2024, total debt was $628.875 million, with a weighted average interest rate of 3.79%[139]. - During the nine months ended September 30, 2024, the company borrowed $82.8 million under the Credit Facility, resulting in a net amount borrowed of $27.4 million[145]. - Net borrowings on the Credit Facility increased total liabilities to $678.0 million as of September 30, 2024, compared to $661.9 million as of December 31, 2023[182]. - The weighted average interest rate of debt for the nine months ended September 30, 2024 was 3.93%, down from 4.22% for the same period in 2023[175]. - As of September 30, 2024, total fixed debt amounted to $514.5 million with a weighted average interest rate of 3.18%[194]. - The company had unutilized borrowing capacity under the Credit Facility of $221 million as of November 5, 2024[190]. - The company complied with all financial and non-financial covenants under the Credit Facility as of September 30, 2024[192]. - The maximum consolidated unsecured leverage ratio required under the Credit Facility is less than 60%[192]. - The weighted average maturity of the company's fixed debt was 2.1 years as of September 30, 2024[194]. Operating Expenses - Operating expenses for the three months ended September 30, 2024 were $7.4 million, an increase of $0.2 million compared to $7.2 million for the same period in 2023[159]. - General and administrative expenses for the nine months ended September 30, 2024 were $13.4 million, an increase of $0.8 million from $12.6 million in the same period in 2023[170]. - Interest expense for the nine months ended September 30, 2024 was $21.1 million, a decrease of $2.8 million from $23.9 million in the same period in 2023[174]. - Interest expense for the three months ended September 30, 2024, was $7.236 million, slightly higher than $7.170 million in the same period last year, indicating an increase of approximately 0.9%[205]. Acquisitions and Investments - The company completed the acquisition of a 15-property portfolio for a total purchase price of $80.3 million, with an aggregate annualized base rent of $6.4 million[141]. - The company completed five acquisitions and three property sales during the nine months ended September 30, 2024[180]. - The company reported a total investment in real estate of $1.436 billion as of September 30, 2024, with 4.8 million net leasable square feet[140]. Cash Flow - Net cash provided by operating activities for the nine months ended September 30, 2024 was $49.5 million, a decrease from $50.3 million in the same period of 2023[195]. - Net cash used in investing activities for the nine months ended September 30, 2024 was $26.4 million, compared to net cash provided of $70.7 million in the same period of 2023[196]. - Net cash used in financing activities for the nine months ended September 30, 2024 was $22.0 million, down from $127.9 million in the same period of 2023[197]. Economic Environment - The Federal Reserve increased the target range for the Federal Funds Rate from 0.25% – 0.50% in early 2022 to 5.25% – 5.50% as of August 2024, impacting borrowing costs[132]. - In September 2024, the Federal Reserve lowered the target range for the Federal Funds Rate by 0.50% to 4.75% - 5.00%, marking the first rate reduction in four years[133]. - The one-month term Secured Overnight Financing Rate (SOFR) decreased to 4.85% as of September 30, 2024, following the Fed's rate cut[134]. - Healthcare wage inflation remains a concern, with increased labor costs for healthcare systems due to reliance on higher-cost contract nursing labor[136]. Corporate Strategy and Sustainability - The company’s strategy includes investing in off-campus medical outpatient buildings and small to mid-sized healthcare facilities in secondary markets[124]. - The company is focused on corporate sustainability and social responsibility, integrating ESG practices into its operations[126]. - The company continues to explore ways to mitigate climate risk in its acquisition strategy and asset management[130]. - The company aims to provide stockholders with reliable dividends and stock price appreciation through its investment strategy[124]. Risk Management and Controls - The company maintains effective disclosure controls and procedures as of September 30, 2024, ensuring timely reporting of required information[212]. - There were no changes to the internal control over financial reporting during the most recently completed fiscal quarter that materially affected its effectiveness[214]. - The company is not involved in any pending legal proceedings that would materially affect its financial condition or results of operations[215]. - Management does not expect that the disclosure controls and procedures will prevent all errors and fraud, acknowledging inherent limitations in control systems[213]. - The company may enter into additional derivative financial instruments to mitigate interest rate risk on future borrowings, without engaging in speculative transactions[210]. Interest Rate Sensitivity - As of September 30, 2024, the company had $119.8 million of unhedged borrowings outstanding under the Revolver, with a variable interest rate of 4.85%[208]. - If SOFR increases by 100 basis points, the company's cash flow would decrease by approximately $1.2 million annually, while a decrease of 100 basis points would increase cash flow by the same amount[208].

Financial Data and Key Metrics Changes - The company reported its third quarter 2024 earnings, with specific financial metrics to be discussed in detail during the call [2][3]. Business Line Data and Key Metrics Changes - Detailed performance metrics for each business line will be provided in the subsequent sections of the call [2][3]. Market Data and Key Metrics Changes - Market performance and metrics will be addressed as part of the overall financial discussion [2][3]. Company Strategy and Development Direction and Industry Competition - The company will outline its strategic initiatives and competitive positioning within the industry during the call [2][3]. Management's Comments on Operating Environment and Future Outlook - Management will provide insights on the current operating environment and future outlook, highlighting any potential challenges and opportunities [2][3]. Other Important Information - The company emphasizes the use of forward-looking statements and the associated risks, which will be elaborated upon during the call [3][4]. Q&A Session All Questions and Answers Question: What are the expectations for revenue growth in the upcoming quarters? - Management will address revenue growth expectations and any relevant factors influencing these projections during the Q&A session [2][3]. Question: How is the company positioning itself against competitors? - The response will include strategic insights on competitive positioning and market differentiation [2][3]. Question: What are the anticipated challenges in the current market environment? - Management will discuss potential challenges and how the company plans to navigate them [2][3].

Core Viewpoint - Global Medical REIT (GMRE) reported quarterly funds from operations (FFO) of $0.22 per share, missing the Zacks Consensus Estimate of $0.23 per share, representing a -4.35% surprise [1] Financial Performance - The company posted revenues of $34.26 million for the quarter ended September 2024, missing the Zacks Consensus Estimate by 1.77%, compared to year-ago revenues of $35.51 million [2] - Over the last four quarters, GMRE has not surpassed consensus FFO or revenue estimates [2] Stock Performance - GMRE shares have declined approximately 16.9% since the beginning of the year, while the S&P 500 has gained 21.2% [3] - The current consensus FFO estimate for the coming quarter is $0.23 on revenues of $35.65 million, and for the current fiscal year, it is $0.92 on revenues of $139.89 million [7] Industry Outlook - The Zacks Industry Rank for REIT and Equity Trust - Other is currently in the top 24% of over 250 Zacks industries, indicating a favorable outlook compared to the bottom 50% [8]

Financial Performance - Net income attributable to common stockholders for Q3 2024 was $1.8 million, or $0.03 per diluted share, down from $3.1 million, or $0.05 per diluted share in Q3 2023[4] - Total revenue for the three months ended September 30, 2024, was $34,264, a decrease of 3.5% from $35,507 in the same period of 2023[32] - Net income attributable to common stockholders for the three months ended September 30, 2024, was $1,791, a decrease of 42.9% from $3,138 in the same period of 2023[32] - Net income for the three months ended September 2024 was $3,391,000, a decrease of 29.9% compared to $4,833,000 for the same period in 2023[33] - FFO attributable to common stockholders for the three months ended September 2024 was $13,731,000, down 10.0% from $15,250,000 in the prior year[33] - AFFO attributable to common stockholders for the three months ended September 2024 was $15,345,000, a decrease of 7.2% compared to $16,541,000 in the same quarter of 2023[33] Revenue and Occupancy - Rental revenue for Q3 2024 decreased by 3.7% year-over-year to $34.2 million, primarily due to changes in the Company's portfolio and reduced occupancy[6] - Rental revenue for the nine months ended September 30, 2024, was $103,458, down 4.9% from $108,003 in the same period of 2023[32] - Portfolio leased occupancy was 96.1% as of September 30, 2024, with an annualized base rent of $107.8 million across 4.8 million leasable square feet[14] Acquisitions and Dispositions - The Company completed $80.3 million in acquisitions of single tenant triple net medical real estate year-to-date, with an annualized base rent of $6.4 million across 254,220 leasable square feet[3] - The Company sold two medical facilities in Q3 2024, generating gross proceeds of $12.1 million, resulting in a total loss of $1.6 million on these dispositions[12] - In October 2024, the Company entered into a purchase agreement to acquire a five-property portfolio for $69.6 million at a cap rate of 9.0%[13] Debt and Liabilities - Total debt outstanding as of September 30, 2024, was $628.9 million, with a leverage ratio of 44.1% and a weighted average interest rate of 3.79%[15] - Total liabilities increased to $677,989 as of September 30, 2024, from $661,886 as of December 31, 2023[31] Cash and Assets - Cash and cash equivalents increased to $5,723 as of September 30, 2024, from $1,278 as of December 31, 2023[30] - The company's total assets as of September 30, 2024, were $1,242,595, a decrease from $1,267,700 as of December 31, 2023[30] Expenses - The company reported a depreciation expense of $30,233 for the nine months ended September 30, 2024, compared to $31,062 in the same period of 2023[32] - Interest expense for the three months ended September 2024 was $7,236,000, slightly up from $7,170,000 in the prior year[34] - Depreciation and amortization expense for the three months ended September 2024 was $13,642,000, a decrease from $14,195,000 in the same period of 2023[34] Dividends - The Board declared a cash dividend of $0.21 per share to common stockholders for Q3 2024, paid on October 8, 2024[17] Key Metrics - Management considers EBITDAre and Adjusted EBITDAre important measures for evaluating core operating results and debt servicing ability[25] - The Rent Coverage Ratio calculation excluded approximately 19% of the portfolio due to lack of available financial information or small tenant size[26] - The capitalization rate for acquisitions is calculated by dividing current Annualized Base Rent by contractual purchase price[28] - The weighted average shares and units outstanding for the three months ended September 2024 was 71,151,000, an increase from 70,566,000 in the prior year[33] - Preferred stock dividends remained constant at $1,455,000 for both the three months ended September 2024 and 2023[33]

Core Viewpoint - Investors should consider Global Medical REIT (GMRE) and CubeSmart (CUBE) for potential value opportunities in the REIT and Equity Trust - Other sector [1] Group 1: Zacks Rank and Earnings Outlook - GMRE has a Zacks Rank of 2 (Buy), indicating a positive earnings outlook, while CUBE has a Zacks Rank of 3 (Hold) [3] - The Zacks Rank focuses on companies with positive earnings estimate revisions, suggesting GMRE is likely experiencing a more favorable earnings outlook [3] Group 2: Valuation Metrics - GMRE has a forward P/E ratio of 10.07, significantly lower than CUBE's forward P/E of 18.86 [5] - GMRE's PEG ratio is 1.26, while CUBE's PEG ratio is much higher at 9.11, indicating GMRE may be undervalued relative to its growth expectations [5] - GMRE's P/B ratio stands at 1.20, compared to CUBE's P/B of 4.02, further supporting GMRE's valuation advantage [6] Group 3: Value Grades - GMRE has earned a Value grade of B, while CUBE has received a Value grade of F, highlighting GMRE's superior valuation metrics [6] - Overall, GMRE is positioned as the better value option based on its solid earnings outlook and favorable valuation figures [7]

Core Viewpoint - Investors in the REIT and Equity Trust - Other sector should consider Global Medical REIT (GMRE) and COPT Defense (CDP) as potential value opportunities [1] Valuation Metrics - GMRE has a forward P/E ratio of 10.80, while CDP has a forward P/E of 11.85 [5] - GMRE's PEG ratio is 1.35, indicating a better expected earnings growth rate compared to CDP's PEG ratio of 2.64 [5] - GMRE's P/B ratio is 1.29, compared to CDP's P/B of 2.24, suggesting GMRE is more undervalued relative to its book value [6] Investment Grades - Both GMRE and CDP currently hold a Zacks Rank of 2 (Buy), indicating a positive earnings outlook due to favorable analyst estimate revisions [3] - GMRE has a Value grade of B, while CDP has a Value grade of C, suggesting GMRE is the superior value option based on valuation metrics [6]