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 [4][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 [5][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 [5][17] - Total revenues decreased by approximately 1.4% to $34.6 million in Q1 2025 compared to the prior year quarter [14] Business Line Data and Key Metrics Changes - The portfolio occupancy rate was 95.6% with a weighted average lease term of 5.6 years and a rent coverage ratio of 4.4 times [4][14] - The company completed the acquisition of a five-property portfolio for $69.6 million at a 9% cap rate, with an aggregate annualized base rent of $6.3 million [5][9] Market Data and Key Metrics Changes - The company reported a gross investment in real estate of $1.5 billion, with total leasable square feet of 4.9 million [14][20] - The weighted average interest rate on total gross debt was 3.84% with a leverage ratio of 46.1% [21] Company Strategy and Development Direction - The company is focused on maintaining a high-quality diversified portfolio and is actively pursuing acquisition opportunities while remaining disciplined in its strategy [6][12] - The CEO succession plan is underway, 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 and highlighted the strong performance of the portfolio during economic downturns [22][70] - The company anticipates a full-year 2025 AFFO per share range of $0.89 to $0.93, assuming no additional acquisition or disposition activity beyond what has been completed or announced [21][22] Other Important Information - The company completed two property dispositions generating gross proceeds of $8.2 million, resulting in a gain of $1.4 million [13][17] - The company is monitoring the impact of tenant bankruptcies and expiring leases on occupancy rates, with expectations to retain 75% of expiring leases on a square foot basis for the full year 2025 [19][20] Q&A Session Summary Question: Timeline and expected rent collection for the East Orange facility - Management outlined the process of converting subtenants to direct tenants and expressed optimism about leasing activity, with expected net rents in the mid $13 to $15 range [25][29] Question: Impact of Prospect Medical on guidance - Management confirmed that the impact of Prospect Medical is factored into guidance but is not a significant component of the overall outlook [31] Question: Dividend sustainability and acquisition ability - Discussions regarding dividends are ongoing, with considerations for CapEx and strategic direction influencing decisions [45] Question: Retention rates and future expectations - Management noted that retention was lower than expected in Q1 but anticipates improvement as they work through expiring leases [48][49] Question: Leverage and acquisition opportunities - Management indicated a willingness to maintain leverage around current levels while pursuing acquisition opportunities that align with their strategy [57][58]

Atrium Health – Winston-Salem, NC FIRST QUARTER 2025 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 Summary | 15 | | Sustainability Summary | 16 | | Condensed Consolidated | 17 | ...

Financial Performance - Global Medical REIT (GMRE) reported quarterly funds from operations (FFO) of $0.22 per share, matching the Zacks Consensus Estimate, but down from $0.23 per share a year ago [1] - The company posted revenues of $34.62 million for the quarter ended March 2025, missing the Zacks Consensus Estimate by 0.32% and down from $35.12 million year-over-year [2] - Over the last four quarters, GMRE has not surpassed consensus FFO or revenue estimates [2][3] Market Performance - GMRE shares have remained flat since the beginning of the year, contrasting with the S&P 500's decline of -4.7% [3] - The current consensus FFO estimate for the upcoming quarter is $0.23 on revenues of $35.66 million, and for the current fiscal year, it is $0.91 on revenues of $143.05 million [7] Industry Outlook - The REIT and Equity Trust - Other industry is currently ranked in the bottom 37% of over 250 Zacks industries, indicating potential challenges ahead [8] - The performance of GMRE may be influenced by the overall outlook for the industry, as research shows that the top 50% of Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1 [8]

[Financial & Operational Highlights](index=1&type=section&id=Financial%20%26%20Operational%20Highlights) The company reported steady Q1 results, highlighted by the completion of a **$69.6 million** five-property acquisition at an attractive **9.0%** cap rate, while FFO and AFFO per share saw slight year-over-year decreases, and net income attributable to common stockholders more than doubled, with portfolio leased occupancy remaining high at **95.6%** Q1 2025 Key Financial Metrics vs. Q1 2024 | Metric | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Net Income (to common stockholders) | $2.1 million | $0.8 million | | Diluted EPS | $0.03 | $0.01 | | FFO per share and unit | $0.20 | $0.21 | | AFFO per share and unit | $0.22 | $0.23 | - Completed the acquisition of a five-property medical real estate portfolio for **$69.6 million** at a **9.0%** cap rate, adding **486,598** leasable square feet and **$6.3 million** in annualized base rent[2](index=2&type=chunk)[4](index=4&type=chunk) - Completed the disposition of two medical facilities for gross proceeds of **$8.2 million**, realizing a gain of **$1.4 million**, with the cap rate on the single occupied facility sold at **6.7%**[4](index=4&type=chunk)[11](index=11&type=chunk) - Portfolio leased occupancy was **95.6%** as of March 31, 2025[4](index=4&type=chunk) [Financial Performance](index=2&type=section&id=Financial%20Performance) In Q1 2025, rental revenue decreased by **1.4%** year-over-year to **$34.6 million**, while total expenses also decreased to **$32.2 million**, primarily due to lower G&A costs related to executive compensation changes, consequently, net income attributable to common stockholders increased significantly to **$2.1 million** from **$0.8 million** in the prior year period Condensed Statement of Operations (YoY Comparison) | Account (in millions) | Q1 2025 | Q1 2024 | Change | | :--- | :--- | :--- | :--- | | Rental Revenue | $34.6 | $35.1 | -1.4% | | Total Expenses | $32.2 | $32.8 | -1.8% | | Net Income | $3.7 | $2.3 | +61.5% | | Net Income (to common stockholders) | $2.1 | $0.8 | +162.5% | - General and administrative expenses decreased to **$3.6 million** from **$4.4 million** year-over-year, mainly due to a reduction in non-cash LTIP compensation expense related to the CEO's transition agreement[6](index=6&type=chunk) - Interest expense increased to **$7.2 million** from **$6.9 million** year-over-year, primarily due to higher average borrowings, which was partially offset by lower interest rates[7](index=7&type=chunk) [Portfolio and Investment Activity](index=2&type=section&id=Portfolio%20and%20Investment%20Activity) The company was active in portfolio management, completing a significant **$69.6 million**, five-property acquisition and disposing of two facilities for **$8.2 million**, while maintaining a high portfolio occupancy of **95.6%** and actively managing a tenant, Prospect Medical Group, which filed for Chapter 11 bankruptcy [Investment Activity](index=2&type=section&id=Investment%20Activity) - Completed a five-property portfolio acquisition for **$69.6 million** at a **9.0%** cap rate, adding **486,598** leasable square feet and **$6.3 million** in annualized base rent[9](index=9&type=chunk)[10](index=10&type=chunk) - The acquisition was completed in two tranches: three properties for **$31.5 million** in February 2025 and the remaining two for **$38.1 million** in April 2025[9](index=9&type=chunk)[10](index=10&type=chunk) - Disposed of two medical facilities for aggregate gross proceeds of **$8.2 million**, resulting in a **$1.4 million** gain, with the cap rate on the sale of the occupied facility at **6.7%**[11](index=11&type=chunk) [Portfolio Status](index=3&type=section&id=Portfolio%20Status) Portfolio Statistics (as of March 31, 2025) | Metric | Value | | :--- | :--- | | Occupancy | 95.6% | | Leasable Square Feet | 4.9 million | | Annualized Base Rent | $113.4 million | | Weighted Average Lease Term | 5.6 years | | Weighted Average Annual Rent Escalations | 2.2% | | Portfolio Rent Coverage Ratio | 4.4 times | - Tenant Prospect Medical Group filed for Chapter 11 bankruptcy, rejecting its lease at the East Orange, NJ facility, and as of May 6, 2025, has paid the Company **$250 thousand** in post-petition amounts due through February 28, 2025 for that facility[13](index=13&type=chunk) [Balance Sheet, Capital, and Dividends](index=3&type=section&id=Balance%20Sheet%2C%20Capital%2C%20and%20Dividends) As of March 31, 2025, the company had total debt of **$677.0 million** with a leverage ratio of **46.1%** and a weighted average interest rate of **3.84%**, declaring its regular quarterly cash dividends for both common and Series A Preferred Stock without issuing any shares under its ATM program during the quarter [Balance Sheet and Capital Structure](index=3&type=section&id=Balance%20Sheet%20and%20Capital%20Structure) Debt & Leverage (as of March 31, 2025) | Metric | Value | | :--- | :--- | | Total Debt Outstanding | $677.0 million | | Leverage | 46.1% | | Weighted Average Interest Rate | 3.84% | | Weighted Average Remaining Term | 1.8 years | - As of May 6, 2025, the Company had **$187 million** of borrowing capacity under its credit facility[16](index=16&type=chunk) - No shares of common stock were issued under the ATM program during Q1 2025 or through May 6, 2025[16](index=16&type=chunk) [Dividends](index=3&type=section&id=Dividends) - Declared a Q1 2025 cash dividend of **$0.21** per share for common stockholders, paid on April 9, 2025[17](index=17&type=chunk) - Declared a quarterly cash dividend of **$0.46875** per share for Series A Preferred Stock, paid on April 30, 2025[18](index=18&type=chunk) [2025 Guidance](index=4&type=section&id=2025%20Guidance) The company reaffirmed its full-year 2025 AFFO per share and unit guidance of **$0.89** to **$0.93**, based on assumptions including no additional unannounced acquisitions, dispositions, or equity/debt issuances, and excluding one-time costs related to the CEO succession plan - Reaffirmed full-year 2025 AFFO per share and unit guidance of **$0.89** to **$0.93**[19](index=19&type=chunk) - Key guidance assumptions include: - No additional acquisitions or dispositions beyond what has been announced - No additional equity or debt issuances outside of normal Revolver activity - Exclusion of one-time obligations related to the CEO succession plan[19](index=19&type=chunk)[24](index=24&type=chunk) [Appendix: Financial Statements and Reconciliations](index=8&type=section&id=Appendix%3A%20Financial%20Statements%20and%20Reconciliations) This section provides the detailed unaudited financial statements for the period ended March 31, 2025, including the Condensed Consolidated Balance Sheets and Statements of Operations, and reconciliations of GAAP Net Income to non-GAAP measures such as Funds from Operations (FFO), Adjusted Funds from Operations (AFFO), and Adjusted EBITDAre [Condensed Consolidated Balance Sheets](index=8&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) Balance Sheet Summary (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 | | Total Liabilities | $731,452 | $700,570 | | Total Equity | $538,103 | $555,916 | [Condensed Consolidated Statements of Operations](index=10&type=section&id=Condensed%20Consolidated%20Statements%20of%20Operations) Statement of Operations Summary (in thousands) | Account | Three Months Ended March 31, 2025 | Three Months Ended March 31, 2024 | | :--- | :--- | :--- | | Total Revenue | $34,618 | $35,118 | | Total Expenses | $32,199 | $32,804 | | Net Income | $3,737 | $2,314 | | Net income attributable to common stockholders | $2,104 | $794 | [Reconciliation of Net Income to FFO and AFFO](index=11&type=section&id=Reconciliation%20of%20Net%20Income%20to%20FFO%20and%20AFFO) FFO and AFFO Reconciliation (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](index=12&type=section&id=Reconciliation%20of%20Net%20Income%20to%20EBITDAre%20and%20Adjusted%20EBITDAre) EBITDAre Reconciliation (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 | [Appendix: Non-GAAP Measures and Definitions](index=5&type=section&id=Appendix%3A%20Non-GAAP%20Measures%20and%20Definitions) This section defines the non-GAAP financial measures used by the company, including Funds From Operations (FFO), Adjusted Funds From Operations (AFFO), and EBITDA for Real Estate (EBITDAre), and clarifies the calculation methodology for key operational metrics like Rent Coverage Ratio, Annualized Base Rent, and Capitalization Rate, which are used to evaluate portfolio performance - FFO is defined per NAREIT standards, starting with net income and excluding gains/losses from property sales, impairment losses, and real estate depreciation to measure core operating performance[27](index=27&type=chunk) - AFFO further adjusts FFO for items such as straight-line rent, stock-based compensation, and amortization of debt issuance costs to provide a measure of recurring operating performance[28](index=28&type=chunk) - EBITDAre and Adjusted EBITDAre are used to evaluate and compare core operating results and the ability to service debt[30](index=30&type=chunk)[31](index=31&type=chunk) - The Rent Coverage Ratio calculation excludes certain credit-rated tenants and approximately **21%** of the portfolio due to lack of financial information or small tenant size[32](index=32&type=chunk)

Debt and Financial Obligations - As of December 31, 2024, the company had $646.1 million of indebtedness outstanding, net of unamortized debt issuance costs[118]. - The company may face challenges in refinancing its debt on favorable terms, particularly as portions of its Credit Facility are set to mature in 2026[118]. - The company’s operational flexibility is limited by covenants in its debt agreements, and breaches could result in defaults and adverse financial impacts[113]. - The company is subject to financial covenants under the Credit Facility, including a maximum consolidated unsecured leverage ratio of less than 60%[415]. - As of December 31, 2024, the Company had outstanding borrowings under the Credit Facility totaling $636,600 million, netting to $631,732 million after unamortized debt issuance costs[418]. - The Company borrowed $143,800 million and repaid $99,600 million under the Credit Facility during the year ended December 31, 2024, resulting in a net amount borrowed of $44,200 million[417]. Revenue and Income - Total revenue for 2024 was $138,780, a decrease of 1.9% from $141,049 in 2023[335]. - Net income attributable to common stockholders for 2024 was $811, down 94.5% from $14,790 in 2023[335]. - Comprehensive loss attributable to common stockholders was $(5,211) in 2024, compared to a gain of $5,899 in 2023[338]. - Rental revenue for 2024 was $138,410, a decrease of 1.8% from $140,934 in 2023[335]. - The company reported a gain on the sale of investment properties of $4,205 in 2024, down from $15,560 in 2023[335]. Assets and Liabilities - Total assets decreased from $1,267.7 million in 2023 to $1,256.5 million in 2024, reflecting a reduction of approximately 0.9%[333]. - The company's total liabilities increased from $661.9 million in 2023 to $700.6 million in 2024, representing a rise of approximately 5.8%[333]. - The accumulated deficit increased from $238.98 million in 2023 to $293.74 million in 2024, indicating a decline of approximately 23%[333]. - The total equity of the company decreased from $605.8 million in 2023 to $555.9 million in 2024, a decline of approximately 8.2%[333]. - Tenant receivables rose to $7,424 million in 2024 from $6,762 million in 2023, with $2,838 million owed for earned but not received rent[366]. Tax and Regulatory Compliance - The company is required to distribute at least 90% of its taxable income to maintain its REIT status, which may limit its ability to fund future capital needs from retained cash[119]. - The company must distribute at least 90% of its REIT taxable income to maintain its REIT status, or face U.S. federal corporate income tax on undistributed taxable income[169]. - Failure to maintain REIT qualification could significantly reduce funds available for distributions to stockholders, impacting financial condition and stock price[165]. - The company may face tax liabilities that could reduce cash flows, including taxes on undistributed income and certain transactions conducted by its taxable REIT subsidiary[168]. - The company must ensure that at least 75% of its assets consist of qualified real estate assets to maintain REIT qualification, or risk adverse tax consequences[175]. Operational Challenges - Adverse trends in the healthcare industry, including regulatory changes and reimbursement pressures, may negatively impact tenants' ability to pay rent[123]. - Increased scrutiny and potential legal actions in the healthcare sector could lead to higher operating costs for tenants, affecting their rent payments[129]. - The company may be unable to sell healthcare facilities at a profit due to uncertain market conditions, potentially leading to losses[134]. - The company may face challenges in maintaining effective internal control over financial reporting, which could impact financial statements and stockholder distributions[143]. - Changes in national or regional economic conditions could affect the company's ability to acquire or dispose of healthcare properties at attractive prices[135]. Corporate Governance and Structure - The company has opted out of certain provisions of the Maryland General Corporation Law, which may inhibit third-party acquisition proposals[151]. - The Board has the authority to change business, investment, and financing strategies without stockholder approval, potentially increasing exposure to market fluctuations[156]. - Conflicts of interest may arise due to the company's UPREIT structure, affecting management duties and fiduciary responsibilities[144]. - The company’s charter restricts stock ownership to ensure compliance with REIT requirements, potentially delaying changes of control[149]. - The company has provisions in its charter that make it difficult to remove directors, requiring a two-thirds vote for removal, which may limit stockholder influence on management changes[159]. Cash Flow and Dividends - The company declared dividends to common stockholders of $0.84 per share, totaling $55,563 in 2024[341]. - The company paid dividends totaling $59,868,000 to common stockholders in 2024, slightly up from $59,025,000 in 2023[344]. - Net cash provided by operating activities increased to $70,046,000 in 2024 from $68,440,000 in 2023, reflecting a growth of 2.4%[344]. - The company reported a net cash used in investing activities of $(45,942,000) in 2024, a significant decrease from $67,616,000 in 2023[344]. - Total cash and cash equivalents at the end of the period increased to $8,942,000 in 2024 from $6,724,000 in 2023, marking a rise of 32.9%[344]. Investment and Acquisitions - The Company completed the acquisition of a 15-property portfolio during the year ended December 31, 2024, with transaction costs capitalized[400]. - The Company sold an in-patient rehabilitation facility in Mishawaka, Indiana for gross proceeds of $8.1 million, resulting in a loss of $3.4 million in June 2024[401]. - The Company sold a medical office building in Panama City, Florida for gross proceeds of $11.0 million, resulting in a gain of $1.7 million in July 2024[401]. - On December 20, 2024, the company entered into a joint venture, retaining a 12.5% ownership interest, which is expected to enhance its market position[384]. - The Company has aggregate capital improvement commitments of approximately $24.5 million, with expected obligations in the next twelve months totaling approximately $12.9 million[406].

Financial Data and Key Metrics Changes - At the end of Q4 2024, portfolio occupancy was 96.4% with a weighted average lease term of 5.6 years and a portfolio average rent coverage ratio of 4.5 times [8] - Net income attributable to common shareholders was $1.4 million, or $0.02 per share, compared to a net loss of $800,000, or $0.01 per share in Q4 2023 [29] - FFO attributable to common stockholders was $11.1 million, or $0.15 per share, down from $13.3 million, or $0.19 per share in Q4 2023 [29] - AFFO attributable to common stockholders was $15.8 million, or $0.22 per share, compared to $15.9 million in Q4 2023 [30] - Total revenues increased by approximately 6.7% to $35.2 million compared to the prior year [25] Business Line Data and Key Metrics Changes - The company completed the acquisition of a 15-property portfolio for $80.3 million, with an aggregate annualized base rent of $6.4 million, equating to an 8% cap rate [10][17] - In Q4, the company also entered into a purchase agreement for a five-property portfolio for $69.6 million at a 9% cap rate [11] Market Data and Key Metrics Changes - The transaction market for medical facilities continues to show promising momentum, with active engagement with physician groups and brokers to identify acquisition opportunities [16] - The company completed four property dispositions generating gross proceeds of $40.5 million, resulting in a gain of $5.8 million [12][22] Company Strategy and Development Direction - The company remains committed to maintaining a strong balance sheet through a strategic asset recycling program [12] - The joint venture with Heitman aims to target strong cash-on-cash returns and is expected to grow as Heitman raises more capital [42][44] - The company is focused on improving the quality of its portfolio by potentially selling off lower-quality assets [66][70] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to navigate the current environment and execute its business strategy [38] - The CEO transition is seen as an opportunity to bring in fresh perspectives while maintaining a strong portfolio [14][51] - The company expects a 70% to 80% retention rate on lease expirations scheduled for 2025 [34] Other Important Information - The company recognized an impairment loss of $1.7 million in Q4 related to a facility in Derby, Kansas [28] - As of year-end 2024, the company had $651 million of total gross debt with a leverage ratio of 44.8% [35] Q&A Session Summary Question: Can you discuss the Heitman joint venture regarding target size and asset types? - The joint venture targets strong properties with decent lease terms, primarily single-tenant assets, and has about $50 million of equity available for this strategy [42][44] Question: What are the reasons for the CEO transition? - The CEO is stepping down due to age and a desire to reduce responsibilities, while still remaining active as chairman [50][51] Question: How much rent was collected from Prospect in Q4? - Prospect's exposure is around $150,000 per month, with the largest piece being the East Orange facility, which has been on a cash basis since late 2023 [56][82] Question: What is the expected CapEx for 2025? - The company expects capital expenditures of approximately $12 million to $14 million for 2025 [32][88] Question: Does the Heitman JV have a right of first refusal on new acquisitions? - No, the company retains the right to pursue acquisitions independently of the joint venture [106]

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].