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]

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]

Financial Performance - Net income attributable to common stockholders was $2.1 million, or $0.03 per diluted share, compared to $0.8 million, or $0.01 per diluted share, in the prior year period[24] - Funds from operations (FFO) attributable to common stockholders and noncontrolling interest was $14.8 million, or $0.20 per share and unit, compared to $14.9 million, or $0.21 per share and unit, in the prior year period[24] - Adjusted funds from operations (AFFO) attributable to common stockholders and noncontrolling interest was $16.0 million, or $0.22 per share and unit, compared to $16.5 million, or $0.23 per share and unit, in the prior year period[24] - Rental revenue was $34.595 million, compared to $35.069 million in the same period last year[20, 66] Portfolio and Investment Activities - The company completed acquisitions of five properties for $69.6 million with an annualized base rent of $6.3 million, reflecting a 9.0% cap rate[24, 25] - Disposed of two medical facilities for $8.2 million, resulting in a gain of $1.4 million; the cap rate on the sale of the occupied facility was 6.7%[24, 26] - Gross investment in real estate totals $1.5 billion, comprising 191 buildings across 35 states with a leased occupancy of 95.6%[11, 29] - Total annualized base rent (ABR) is $113.4 million with a weighted average cap rate of 7.9%[29] Capital Structure and Debt - Leverage was 46.1% as of March 31, 2025[24, 46] - Total gross debt was $681.361 million with a weighted average interest rate of 3.84%[46] - Borrowing capacity under the credit facility was $187 million as of May 6, 2025[24] - Fixed-rate debt accounts for 75% of total debt[46]

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)