www.globalmedicalreit.com NYSE: GMRE Wake Forest Medical – Winston-Salem, NC Atrium Health – Winston-Salem, NC Third Quarter 2022 Earnings Supplemental Table of Contents | --- | --- | |-------------------------------------------------|-------| | | | | Table of Contents | | | Company Overview | 3-5 | | Select Quarterly Financial Data | 6 | | Business Summary | 7 | | ESG Summary | 8 | | Acquisitions | 9 | | Portfolio Summary | 10-11 | | Top 10 Tenants | 12-14 | | Debt and Hedging Summary | 15 | | Total Capita ...

[Report Information](index=1&type=section&id=Report%20Information) This section provides essential filing details, stock information, and outstanding share count for Global Medical REIT Inc - Global Medical REIT Inc. filed a Quarterly Report on Form 10-Q for the period ended June 30, 2022[1](index=1&type=chunk) Trading Information | Title of each class | Trading Symbol(s) | Name of each exchange on which registered | | :------------------ | :---------------- | :---------------------------------------- | | Common Stock, par value $0.001 per share | GMRE | NYSE | | Series A Preferred Stock, par value $0.001 per share | GMRE PrA | NYSE | - The number of shares of common stock outstanding at August 1, 2022, was **65,518,306**[5](index=5&type=chunk) [PART I FINANCIAL INFORMATION](index=2&type=section&id=PART%20I%20FINANCIAL%20INFORMATION) This section presents the unaudited consolidated financial statements and related notes, along with management's discussion and analysis of the company's financial performance [Item 1. Financial Statements (Unaudited)](index=3&type=section&id=Item%201.%20Financial%20Statements%20(Unaudited)) This chapter contains the company's unaudited consolidated financial statements for the periods ended June 30, 2022, and December 31, 2021, including balance sheets, statements of operations, comprehensive income, equity, and cash flows, along with related notes [Condensed Consolidated Balance Sheets](index=3&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) This table presents the company's financial position, detailing assets, liabilities, and equity as of June 30, 2022, and December 31, 2021 | Metric | June 30, 2022 (thousand USD) | December 31, 2021 (thousand USD) | | :-------------------------------- | :----------------------- | :----------------------- | | **Assets** | | | | Investment properties, net | 1,272,559 | 1,199,748 | | Cash and cash equivalents | 5,873 | 7,213 | | Restricted cash | 8,327 | 5,546 | | Derivative assets | 16,583 | 1,236 | | **Total assets** | **1,357,266** | **1,263,485** | | **Liabilities** | | | | Credit facility, net | 602,987 | 514,567 | | Notes payable, net | 56,687 | 57,162 | | Derivative liabilities | — | 7,790 | | **Total liabilities** | **708,157** | **625,908** | | **Equity** | | | | Total equity attributable to Global Medical REIT Inc. stockholders | 634,012 | 622,785 | | Non-controlling interests | 15,097 | 14,792 | | **Total equity** | **649,109** | **637,577** | | **Total liabilities and equity** | **1,357,266** | **1,263,485** | [Condensed Consolidated Statements of Operations](index=4&type=section&id=Condensed%20Consolidated%20Statements%20of%20Operations) This table details the company's revenues, expenses, and net income for the three and six months ended June 30, 2022, and 2021 | Metric (thousand USD) | Three Months Ended June 30, 2022 | Three Months Ended June 30, 2021 | Six Months Ended June 30, 2022 | Six Months Ended June 30, 2021 | | :----------------------------------- | :----------------------- | :----------------------- | :----------------------- | :----------------------- | | Rental revenue | 33,679 | 28,200 | 65,530 | 55,525 | | Other revenue | 18 | 61 | 42 | 85 | | **Total revenue** | **33,697** | **28,261** | **65,572** | **55,610** | | Total expenses | 29,863 | 24,097 | 57,453 | 48,123 | | **Net income** | **3,834** | **4,164** | **8,119** | **7,487** | | Net income attributable to common stockholders | 2,236 | 2,553 | 4,895 | 4,308 | | Net income per common share – basic and diluted | 0.03 | 0.04 | 0.07 | 0.08 | | Weighted average common shares outstanding – basic and diluted | 65,507 | 61,194 | 65,405 | 56,956 | [Condensed Consolidated Statements of Comprehensive Income](index=5&type=section&id=Condensed%20Consolidated%20Statements%20of%20Comprehensive%20Income) This table presents the company's net income and other comprehensive income components, leading to total comprehensive income for the three and six months ended June 30, 2022, and 2021 | Metric (thousand USD) | Three Months Ended June 30, 2022 | Three Months Ended June 30, 2021 | Six Months Ended June 30, 2022 | Six Months Ended June 30, 2021 | | :----------------------------------- | :----------------------- | :----------------------- | :----------------------- | :----------------------- | | Net income | 3,834 | 4,164 | 8,119 | 7,487 | | Other comprehensive income: | | | | | | Increase in fair value of interest rate swap agreements | 5,770 | 804 | 23,163 | 4,435 | | **Total other comprehensive income** | **5,770** | **804** | **23,163** | **4,435** | | **Comprehensive income** | **9,604** | **4,968** | **31,282** | **11,922** | | Comprehensive income attributable to common stockholders | 7,658 | 3,311 | 26,665 | 8,482 | [Condensed Consolidated Statements of Equity](index=6&type=section&id=Condensed%20Consolidated%20Statements%20of%20Equity) This section outlines changes in the company's equity, including net income, stock issuances, and dividend payments, for the periods presented - As of June 30, 2022, the company's total equity was **$649,109 thousand**, an increase from **$637,577 thousand** at December 31, 2021[18](index=18&type=chunk) - In the first half of 2022, net income was **$8,119 thousand**, net proceeds from common stock issuance were **$9,979 thousand**, and fair value changes in interest rate swaps increased accumulated other comprehensive income by **$23,163 thousand**[18](index=18&type=chunk) - During the first half of 2022, the company paid **$27,492 thousand** in dividends to common stockholders and **$2,911 thousand** to preferred stockholders[18](index=18&type=chunk) [Condensed Consolidated Statements of Cash Flows](index=8&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) This table summarizes the company's cash inflows and outflows from operating, investing, and financing activities for the six months ended June 30, 2022, and 2021 | Cash Flow Activities (thousand USD) | Six Months Ended June 30, 2022 | Six Months Ended June 30, 2021 | | :----------------------------------- | :----------------------- | :----------------------- | | Net cash provided by operating activities | 39,919 | 33,076 | | Net cash used in investing activities | (102,394) | (115,971) | | Net cash provided by financing activities | 63,916 | 84,512 | | Net increase in cash and cash equivalents and restricted cash | 1,441 | 1,617 | | Cash and cash equivalents and restricted cash at end of period | 14,200 | 12,370 | [Notes to the Unaudited Condensed Consolidated Financial Statements](index=9&type=section&id=Notes%20to%20the%20Unaudited%20Condensed%20Consolidated%20Financial%20Statements) This section provides detailed explanations and disclosures supporting the unaudited condensed consolidated financial statements [Note 1 – Organization](index=9&type=section&id=Note%201%20%E2%80%93%20Organization) This note describes Global Medical REIT Inc.'s corporate structure and primary business activities of acquiring and leasing specialized medical facilities - Global Medical REIT Inc. is a Maryland corporation focused on acquiring and leasing specialized medical facilities to healthcare systems and physician groups with leading market shares[29](index=29&type=chunk) - The company conducts its business and holds facilities through its Delaware limited partnership subsidiary, Global Medical REIT L.P., owning **93.97%** of the operating partnership interests as of June 30, 2022[29](index=29&type=chunk) [Note 2 – Summary of Significant Accounting Policies](index=9&type=section&id=Note%202%20%E2%80%93%20Summary%20of%20Significant%20Accounting%20Policies) This note outlines the key accounting principles and methods applied in preparing the financial statements, including asset acquisitions, revenue recognition, and derivative instruments - The company accounts for all facility acquisitions as asset acquisitions, as the vast majority of fair value is concentrated in a single or group of similar identifiable assets[35](index=35&type=chunk) - Primary revenue sources include rental income and expense reimbursements from lease arrangements, with fixed annual rent escalations recognized on a straight-line basis[37](index=37&type=chunk) Cash and Cash Equivalents and Restricted Cash | Metric (thousand USD) | June 30, 2022 | June 30, 2021 | | :-------------------- | :------------- | :------------- | | Cash and cash equivalents | 5,873 | 5,821 | | Restricted cash | 8,327 | 6,549 | | **Total cash and cash equivalents and restricted cash** | **14,200** | **12,370** | - As of June 30, 2022, the fair value of the company's interest rate swap derivative instruments was a **$16,583 thousand** asset, compared to a net liability of **$6,554 thousand** at December 31, 2021, primarily used to manage interest rate risk on floating-rate debt[46](index=46&type=chunk) - The company has elected to apply the hedge accounting practical expedients in ASU 2020-04 related to reference rate reform, addressing the transition from LIBOR to SOFR[53](index=53&type=chunk) [Note 3 – Property Portfolio](index=12&type=section&id=Note%203%20%E2%80%93%20Property%20Portfolio) This note details the company's property acquisition activities and commitments for capital improvements, along with a breakdown of lease intangible assets and liabilities - For the six months ended June 30, 2022, the company completed **9 acquisitions** with a total investment of **$101,562 thousand**, including land, buildings, site improvements, tenant improvements, and acquired lease intangibles[54](index=54&type=chunk)[56](index=56&type=chunk) - As of June 30, 2022, the company's total commitments and obligations for capital improvements on existing facilities amounted to approximately **$24,183 thousand**[58](index=58&type=chunk) Lease Intangible Assets and Liabilities | Lease Intangible Assets and Liabilities (thousand USD) | June 30, 2022 Net | December 31, 2021 Net | | :-------------------- | :---------------- | :---------------- | | Assets: | | | | In-place leases | 50,489 | 46,889 | | Above-market leases | 20,063 | 16,208 | | Leasing costs | 26,079 | 24,588 | | **Total assets** | **96,631** | **87,685** | | Liabilities: | | | | Below-market leases | 7,903 | 8,128 | [Note 4 – Credit Facility, Notes Payable and Derivative Instruments](index=15&type=section&id=Note%204%20%E2%80%93%20Credit%20Facility%2C%20Notes%20Payable%20and%20Derivative%20Instruments) This note provides details on the company's credit facility, notes payable, and derivative instruments used to manage interest rate risk - As of June 30, 2022, the company had a **$750 million** unsecured syndicated credit facility, comprising a **$350 million** term loan and a **$400 million** revolving credit facility, with a **$500 million** accordion feature[65](index=65&type=chunk) - In the first half of 2022, the company borrowed **$92.5 million** and repaid **$5 million** under its credit facility, resulting in net borrowings of **$87.5 million**[71](index=71&type=chunk) - The company has entered into interest rate swap agreements with a total notional amount of **$350 million** to hedge interest rate risk on its term loan and plans to transition LIBOR-based loans to SOFR-based loans[90](index=90&type=chunk) Notes Payable | Loan Type (thousand USD) | June 30, 2022 | December 31, 2021 | | :-------------------- | :------------- | :------------- | | Notes payable | 57,217 | 57,769 | | Less: Unamortized debt issuance costs | (530) | (607) | | **Notes payable, net** | **56,687** | **57,162** | - As of June 30, 2022, the weighted average interest rate on the company's debt was **3.14%** with a weighted average term of **3.79 years**, compared to **2.87%** and **4.28 years** respectively at December 31, 2021[96](index=96&type=chunk) [Note 5 – Equity](index=19&type=section&id=Note%205%20%E2%80%93%20Equity) This note details the company's equity structure, including preferred stock, common stock issuances, and operating partnership units - As of June 30, 2022, and December 31, 2021, the company had **3,105 shares** of Series A Cumulative Redeemable Preferred Stock issued and outstanding, with a liquidation preference of **$25 per share**[97](index=97&type=chunk) - In the first half of 2022, the company generated net proceeds of **$10,104 thousand** from the issuance of **598 thousand** shares of common stock at an average price of **$17.15 per share**[107](index=107&type=chunk) - As of June 30, 2022, there were **1,667 OP units** issued and outstanding, with a total value of **$8,480 thousand**[109](index=109&type=chunk) [Note 6 – Related Party Transactions](index=21&type=section&id=Note%206%20%E2%80%93%20Related%20Party%20Transactions) This note discloses transactions with related parties, specifically receivables from LTIP and OP unit holders - As of June 30, 2022, amounts due from related parties totaled **$337 thousand**, primarily consisting of reimbursable taxes paid on behalf of LTIP and OP unit holders[111](index=111&type=chunk) [Note 7 – Stock-Based Compensation](index=21&type=section&id=Note%207%20%E2%80%93%20Stock-Based%20Compensation) This note describes the company's stock-based compensation plans, including the 2016 Equity Incentive Plan and various LTIP awards - The 2016 Equity Incentive Plan aims to assist the company in recruiting and retaining employees, board members, and executives, with **1,108 shares** of common stock remaining available for grant as of June 30, 2022[112](index=112&type=chunk)[113](index=113&type=chunk) - In the first half of 2022, the company granted time-based LTIP units, including final awards from the 2019 Long-Term Incentive Plan (**163 units**), 2021 Annual Incentive Plan (**91 units**), 2022 Long-Term Incentive Plan (**75 units**), and annual awards for independent directors (**32 units**)[114](index=114&type=chunk) - The company also approved performance-based LTIP awards, including annual and long-term awards, with vesting contingent on specific performance metrics and service requirements[115](index=115&type=chunk) - For the first half of 2022, the company incurred **$2,576 thousand** in stock-based compensation expense, with an estimated **$6.9 million** of unrecognized compensation expense expected to be recognized over the next **1.9 years**[129](index=129&type=chunk)[130](index=130&type=chunk) [Note 8 – Leases](index=23&type=section&id=Note%208%20%E2%80%93%20Leases) This note provides details on the company's leasing activities as both a lessor and a lessee, including rental income and future lease obligations - As a lessor, the company leases facilities to tenants for fixed monthly payments, with leases classified as operating leases and an average remaining lease term of approximately **10 years**[134](index=134&type=chunk) Lease Revenue | Lease Revenue (thousand USD) | Three Months Ended June 30, 2022 | Three Months Ended June 30, 2021 | Six Months Ended June 30, 2022 | Six Months Ended June 30, 2021 | | :-------------------- | :----------------------- | :----------------------- | :----------------------- | :----------------------- | | Operating lease rental income | 33,679 | 28,200 | 65,530 | 55,525 | | Of which variable lease income | 1,920 | 1,534 | 3,867 | 2,908 | - As of June 30, 2022, the company's total future annual cash flows from non-cancelable operating leases amounted to **$829,298 thousand**[139](index=139&type=chunk) - As a lessee, the company has seven buildings located on land under operating ground leases, with a weighted average remaining term of approximately **40 years**, and an operating lease liability of **$3,112 thousand** as of June 30, 2022[140](index=140&type=chunk)[141](index=141&type=chunk) - In the first half of 2022, the company's rental income was derived from **114 facilities** leased to **228 tenants**, with no single tenant accounting for more than **10%** of the company's rental income[142](index=142&type=chunk) [Note 9 – Commitments and Contingencies](index=25&type=section&id=Note%209%20%E2%80%93%20Commitments%20and%20Contingencies) This note addresses the company's current legal and environmental commitments and contingencies - The company is not currently facing any material litigation, nor is it aware of any threatened litigation that could significantly adversely affect its financial condition, results of operations, or cash flows[143](index=143&type=chunk) - The company is unaware of any environmental liabilities at its properties that could materially impact its financial condition, results of operations, or cash flows[144](index=144&type=chunk) [Note 10 – Subsequent Events](index=25&type=section&id=Note%2010%20%E2%80%93%20Subsequent%20Events) This note discloses significant events that occurred after the reporting period, including credit facility revisions, new swap agreements, and property sales - On August 1, 2022, the company amended its credit facility to add a **$150 million** delayed draw term loan, extend the revolving credit facility maturity to August 2026, and convert all LIBOR-based loans to SOFR-based loans[145](index=145&type=chunk)[149](index=149&type=chunk) - On August 2, 2022, the company entered into a **$150 million** forward interest rate swap agreement, fixing the SOFR portion of the new term loan at **2.54%** until January 2028[147](index=147&type=chunk) - In July 2022, the company sold a medical office building in Germantown, Tennessee, for gross proceeds of **$17.9 million**, with an estimated gain of **$6.8 million**[148](index=148&type=chunk) [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=27&type=section&id=Item%202.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) This chapter provides management's narrative explanation of the company's financial condition, changes in financial condition, and results of operations, aiming to enhance understanding of financial information and provide insights into profitability and cash flow volatility [Special Note Regarding Forward-Looking Statements](index=27&type=section&id=Special%20Note%20Regarding%20Forward-Looking%20Statements) This section cautions readers that the report contains forward-looking statements, which are predictions about future events or trends and should not be relied upon as forecasts - This report contains "forward-looking statements" involving predictions about future events or trends, which should not be relied upon as forecasts of future events[151](index=151&type=chunk)[152](index=152&type=chunk) - Actual results may differ materially from forward-looking statements due to various factors, including tenant defaults, rising interest rates, acquisition difficulties, macroeconomic and geopolitical factors, COVID-19 impacts, ability to comply with debt covenants, declining rents or increasing vacancies, and changes in healthcare laws and policies[152](index=152&type=chunk)[157](index=157&type=chunk) [Objective of MD&A](index=28&type=section&id=Objective%20of%20MD%26A) This section explains that the MD&A aims to provide a narrative explanation of the financial statements, offering management's perspective and insights into the company's profitability and cash flow quality - The MD&A aims to provide a narrative explanation of the financial statements, enabling investors to view the company from management's perspective, enhancing overall financial disclosure, and offering information on the quality and potential volatility of the company's earnings and cash flows[158](index=158&type=chunk) [Overview](index=28&type=section&id=Overview) This section provides a high-level description of Global Medical REIT Inc. as an internally managed REIT operating through medical facility acquisitions and leases, utilizing an UPREIT structure - Global Medical REIT Inc. is an internally managed REIT operating by acquiring medical facilities and leasing them to physician groups and regional/national healthcare systems[156](index=156&type=chunk) - The company employs an UPREIT structure, owning **93.97%** of the common operating partnership units (OP units) of its operating partnership as of June 30, 2022[156](index=156&type=chunk) - Company revenue primarily derives from rent and operating expense reimbursements, with most leases being medium-to-long-term triple-net leases containing contractual rent escalation clauses[159](index=159&type=chunk) [Business Overview and Strategy](index=29&type=section&id=Business%20Overview%20and%20Strategy) This section outlines the company's business strategy of investing in medical office buildings and other decentralized healthcare facilities, focusing on serving an aging population - The company's business strategy involves investing in medical office buildings and other decentralized healthcare service facilities, particularly in secondary markets and major market suburbs, to serve the needs of an aging population[160](index=160&type=chunk)[166](index=166&type=chunk) - The company also pursues opportunistic acquisitions, including certain acute care hospitals, long-term acute care facilities, healthcare system corporate offices, and behavioral and mental health facilities[166](index=166&type=chunk) - The company's investment portfolio includes both single-tenant triple-net lease properties and multi-tenant gross or modified gross lease structured properties[161](index=161&type=chunk) [Corporate Sustainability and Social Responsibility](index=29&type=section&id=Corporate%20Sustainability%20and%20Social%20Responsibility) This section highlights the company's commitment to environmental sustainability, social responsibility, and strong governance practices, overseen by a dedicated ESG committee - The company integrates environmental sustainability, social responsibility, and robust governance practices into its business, with a Board-level ESG Committee overseeing ESG strategy and policies[162](index=162&type=chunk)[163](index=163&type=chunk) - Through tenant outreach and data collection, the company continuously improves and expands its corporate sustainability efforts, submitting its 2021 GRESB Assessment report on July 1, 2022[164](index=164&type=chunk) - In 2021, the company launched a successful rideshare pilot program providing medical facility transportation in the Phoenix metropolitan area, with plans to continue and expand the program in 2022[165](index=165&type=chunk) [Climate Change](index=30&type=section&id=Climate%20Change) This section addresses the company's approach to climate change, including monitoring climate risks, assessing carbon emissions, and exploring mitigation strategies - The company takes climate change and its associated risks seriously and has begun monitoring climate risk factors across its portfolio[167](index=167&type=chunk) - During the acquisition due diligence phase, the company utilizes third-party engineering consultants for utility and energy audits, collecting energy consumption data to assess facility carbon emission levels[167](index=167&type=chunk) - The company is exploring methods to mitigate climate risks in its acquisition strategy and actively seeks ways to incorporate renewable energy and reduce energy usage through proactive asset management to lessen climate impact[167](index=167&type=chunk) [Impact of COVID-19](index=30&type=section&id=Impact%20of%20COVID-19) This section discusses the ongoing impact of the COVID-19 BA.5 variant on the company's and its tenants' operations and the uncertainty of future effects - The continued spread of the COVID-19 BA.5 variant has prolonged the pandemic, leading to a surge in infections and ongoing disruptions to the operations of the company, its tenants, and consultants[168](index=168&type=chunk) - While the company has managed these disruptions to date, it cannot predict the future impact of the current BA.5 variant and potential future variants on its tenants and business[168](index=168&type=chunk) [Executive Summary](index=30&type=section&id=Executive%20Summary) This section provides a high-level overview of key financial and operational metrics for the company, including revenue, expenses, and portfolio details | Metric | Three Months Ended June 30, 2022 | Three Months Ended June 30, 2021 | Six Months Ended June 30, 2022 | Six Months Ended June 30, 2021 | | :----------------------------------- | :----------------------- | :----------------------- | :----------------------- | :----------------------- | | Rental revenue (thousand USD) | 33,679 | 28,200 | 65,530 | 55,525 | | Depreciation and amortization expense (thousand USD) | 14,036 | 11,427 | 27,215 | 22,280 | | Interest expense (thousand USD) | 5,401 | 5,020 | 10,202 | 10,057 | | Net income per common share | 0.03 | 0.04 | 0.07 | 0.08 | | FFO per share/unit | 0.24 | 0.22 | 0.47 | 0.44 | | AFFO per share/unit | 0.25 | 0.23 | 0.49 | 0.47 | | Dividends per common share | 0.21 | 0.205 | 0.42 | 0.41 | | Weighted average common shares outstanding | 65,507 | 61,194 | 65,405 | 56,956 | | Weighted average OP units outstanding | 1,668 | 1,753 | 1,670 | 1,759 | | Weighted average LTIP units outstanding | 2,523 | 2,166 | 2,410 | 1,990 | | Total weighted average shares and units outstanding | 69,698 | 65,113 | 69,485 | 60,705 | | Metric (thousand USD) | June 30, 2022 | December 31, 2021 | | :-------------------- | :------------- | :------------- | | Investment properties, gross | 1,444,565 | 1,343,003 | | Total debt, net | 659,674 | 571,729 | | Weighted average interest rate | 3.14 % | 2.87 % | | Total equity (including non-controlling interests) | 649,109 | 637,577 | | Net rentable area (square feet) | 4,681,725 | 4,343,467 | [Our Properties](index=31&type=section&id=Our%20Properties) This section details the company's property acquisition activities and the composition of its investment portfolio as of June 30, 2022 - In the first half of 2022, the company completed **9 acquisitions** totaling **335,907 square feet** of rentable area, with a total contractual purchase price of **$98.1 million** and total annualized base rent of **$6.9 million**[172](index=172&type=chunk) - As of June 30, 2022, the company's portfolio comprised **114 facilities** with a total rentable area of **4.7 million square feet**, total annualized base rent of **$109.1 million**, and a gross real estate investment of **$1.4 billion**[172](index=172&type=chunk) [Capital Raising Activity](index=31&type=section&id=Capital%20Raising%20Activity) This section summarizes the company's equity capital raising efforts, including the launch of its 2022 ATM program and proceeds from common stock issuances - In March 2022, the company launched its 2022 ATM program, allowing for the periodic issuance and sale of up to **$300 million** of common stock[173](index=173&type=chunk) - In the first half of 2022, the company generated gross proceeds of **$10.3 million** from the issuance of **600 thousand** shares of common stock at an average price of **$17.15 per share**[174](index=174&type=chunk) [Debt Activity](index=31&type=section&id=Debt%20Activity) This section details the company's debt-related activities, including borrowings and repayments under its credit facility - In the first half of 2022, the company borrowed **$92.5 million** and repaid **$5.0 million** under its credit facility, resulting in net borrowings of **$87.5 million**[175](index=175&type=chunk) - As of June 30, 2022, the net balance of the credit facility was **$603.0 million**; as of August 1, 2022, unused borrowing capacity under the revolving credit facility was **$123.3 million**[175](index=175&type=chunk) [Recent Developments](index=31&type=section&id=Recent%20Developments) This section highlights key events occurring after the reporting period, such as credit facility amendments, new swap agreements, property sales, and pending acquisitions - On August 1, 2022, the company amended its credit facility to add a **$150 million** delayed draw term loan, extend the revolving credit facility maturity to August 2026, and convert all LIBOR-based loans to SOFR-based loans[176](index=176&type=chunk)[178](index=178&type=chunk) - On August 2, 2022, the company entered into a **$150 million** forward interest rate swap agreement, fixing the SOFR portion of the new term loan at **2.54%** until January 2028[177](index=177&type=chunk) - In July 2022, the company sold a medical office building in Germantown, Tennessee, for gross proceeds of **$17.9 million**, with an estimated gain of **$6.8 million**[180](index=180&type=chunk) - As of August 1, 2022, the company had **four acquisitions** under contract with a total purchase price of approximately **$49.8 million**[181](index=181&type=chunk) [Trends Which May Influence Our Results of Operations](index=32&type=section&id=Trends%20Which%20May%20Influence%20Our%20Results%20of%20Operations) This section discusses both positive and negative trends that could impact the company's future operating results, including demographic shifts, interest rate changes, and market competition - Positive trends include an aging population (rapid growth in the 65+ demographic), a continued shift towards outpatient care, and consolidation among physician practice groups and hospitals[183](index=183&type=chunk) - Negative trends include a rising interest rate environment (Federal Funds Rate increased three times, anticipated further SOFR increases potentially leading to an approximate **$2.6 million** annual increase in interest expense), increased competition for acquisition opportunities, the ongoing impact of the COVID-19 pandemic, and changes in third-party reimbursement methods and policies[183](index=183&type=chunk)[187](index=187&type=chunk) [Critical Accounting Estimates](index=33&type=section&id=Critical%20Accounting%20Estimates) This section explains that management's application of GAAP requires judgment, estimates, and assumptions, which are regularly re-evaluated and could impact financial statement presentation - Management's application of GAAP accounting policies requires judgment, including making estimates and assumptions based on the best available information, experience, and reasonable assumptions[185](index=185&type=chunk) - If judgments or interpretations of facts and circumstances differ from actual results, it could lead to a different presentation of financial statements, with estimates and assumptions regularly re-evaluated by the company[185](index=185&type=chunk) [Consolidated Results of Operations](index=33&type=section&id=Consolidated%20Results%20of%20Operations) This section analyzes the company's revenue and expense changes for the three and six months ended June 30, 2022, compared to the same periods in 2021, primarily driven by portfolio expansion [Three Months Ended June 30, 2022 Compared to Three Months Ended June 30, 2021](index=34&type=section&id=Three%20Months%20Ended%20June%2030%2C%202022%20Compared%20to%20Three%20Months%20Ended%20June%2030%2C%202021) This section compares the company's financial performance for the three months ended June 30, 2022, against the same period in 2021, highlighting changes in revenue, expenses, and net income | Metric (thousand USD) | Three Months Ended June 30, 2022 | Three Months Ended June 30, 2021 | Change | | :-------------------- | :----------------------- | :----------------------- | :------- | | Total revenue | 33,697 | 28,261 | 5,436 | | Operating expenses | 6,000 | 3,303 | 2,697 | | Depreciation expense | 9,898 | 8,292 | 1,606 | | Amortization expense | 4,138 | 3,135 | 1,003 | | Interest expense | 5,401 | 5,020 | 381 | | Net income | 3,834 | 4,164 | (330) | - Total revenue increased by **$5.4 million**, primarily due to rental income from facilities acquired after June 30, 2021[189](index=189&type=chunk) - Operating expenses increased by **$2.7 million**, mainly due to higher reimbursable property operating expenses[191](index=191&type=chunk) - Net income decreased by **$0.4 million**, despite increased revenue, due to higher operating, depreciation, amortization, and interest expenses[197](index=197&type=chunk) [Six Months Ended June 30, 2022 Compared to Six Months Ended June 30, 2021](index=35&type=section&id=Six%20Months%20Ended%20June%2030%2C%202022%20Compared%20to%20Six%20Months%20Ended%20June%2030%2C%202021) This section compares the company's financial performance for the six months ended June 30, 2022, against the same period in 2021, detailing changes in revenue, expenses, and net income | Metric (thousand USD) | Six Months Ended June 30, 2022 | Six Months Ended June 30, 2021 | Change | | :-------------------- | :----------------------- | :----------------------- | :------- | | Total revenue | 65,572 | 55,610 | 9,962 | | Operating expenses | 11,372 | 6,991 | 4,381 | | Depreciation expense | 19,300 | 16,140 | 3,160 | | Amortization expense | 7,915 | 6,140 | 1,775 | | Interest expense | 10,202 | 10,057 | 145 | | Net income | 8,119 | 7,487 | 632 | - Total revenue increased by **$10.0 million**, primarily due to rental income from facilities acquired after June 30, 2021[199](index=199&type=chunk) - Operating expenses increased by **$4.4 million**, mainly due to higher reimbursable property operating expenses[202](index=202&type=chunk) - Net income increased by **$0.6 million**, driven by revenue growth, partially offset by increased operating, depreciation, and amortization expenses[207](index=207&type=chunk) [Assets and Liabilities](index=36&type=section&id=Assets%20and%20Liabilities) This section provides an overview of the company's balance sheet, highlighting key assets like investment properties and changes in cash and total liabilities - As of June 30, 2022, the company's primary asset was investment properties, net, at **$1.3 billion**, with liquid assets mainly comprising cash and cash equivalents and restricted cash totaling **$14.2 million**[208](index=208&type=chunk) - Cash and cash equivalents and restricted cash balances increased to **$14.2 million**, driven by credit facility borrowings, net proceeds from ATM equity offerings, and net cash provided by operating activities, partially offset by real estate acquisitions and dividend payments[209](index=209&type=chunk)[210](index=210&type=chunk) - Total liabilities increased to **$708.2 million**, primarily due to higher outstanding net borrowings, partially offset by a decrease in derivative liabilities[210](index=210&type=chunk) [Liquidity and Capital Resources](index=37&type=section&id=Liquidity%20and%20Capital%20Resources) This section discusses the company's short-term and long-term liquidity needs and its strategies for meeting these requirements through various funding sources - Short-term liquidity needs include debt interest and principal payments, general and administrative expenses, property operating expenses, property acquisitions, dividend distributions, and capital and tenant improvements[211](index=211&type=chunk)[218](index=218&type=chunk) - Long-term liquidity needs primarily encompass acquisitions, property capital and tenant improvements, scheduled debt maturities, general and administrative expenses, operating expenses, and distributions[212](index=212&type=chunk) - The company expects to meet its short-term and long-term liquidity needs through operating cash flows, debt financing, equity securities offerings, OP unit issuances, and property dispositions and recapitalization transactions[213](index=213&type=chunk) - As of August 1, 2022, the company had **$273.3 million** in unutilized borrowing capacity under its credit facility, including **$123.3 million** under the revolving credit facility and **$150 million** from the new term loan[219](index=219&type=chunk) - The company has entered into interest rate swap agreements to manage interest rate risk and plans to convert LIBOR-based swap agreements to SOFR-based swap agreements[222](index=222&type=chunk)[226](index=226&type=chunk) [Non-GAAP Financial Measures](index=39&type=section&id=Non-GAAP%20Financial%20Measures) This section defines and presents non-GAAP financial measures such as FFO, AFFO, EBITDAre, and Adjusted EBITDAre, which management uses to assess operational performance and debt service capacity [Funds from Operations and Adjusted Funds from Operations](index=39&type=section&id=Funds%20from%20Operations%20and%20Adjusted%20Funds%20from%20Operations) This section defines FFO and AFFO as non-GAAP metrics considered important by management for evaluating the company's operating performance - FFO (Funds from Operations) and AFFO (Adjusted Funds from Operations) are non-GAAP financial measures considered by management as important supplemental indicators of the company's operating performance[233](index=233&type=chunk)[236](index=236&type=chunk) FFO and AFFO | Metric | Three Months Ended June 30, 2022 | Three Months Ended June 30, 2021 | Six Months Ended June 30, 2022 | Six Months Ended June 30, 2021 | | :----------------------------------- | :----------------------- | :----------------------- | :----------------------- | :----------------------- | | Net income (thousand USD) | 3,834 | 4,164 | 8,119 | 7,487 | | FFO (thousand USD) | 16,387 | 14,108 | 32,368 | 26,801 | | AFFO (thousand USD) | 17,563 | 14,998 | 34,390 | 28,553 | | FFO per share/unit | 0.24 | 0.22 | 0.47 | 0.44 | | AFFO per share/unit | 0.25 | 0.23 | 0.49 | 0.47 | [Earnings Before Interest, Taxes, Depreciation and Amortization for Real Estate (EBITDAre and Adjusted EBITDAre)](index=40&type=section&id=Earnings%20Before%20Interest%2C%20Taxes%2C%20Depreciation%20and%20Amortization%20for%20Real%20Estate%20(EBITDAre%20and%20Adjusted%20EBITDAre)) This section presents EBITDAre and Adjusted EBITDAre as key metrics for evaluating the company's core operating performance and debt service capacity - EBITDAre and Adjusted EBITDAre are important metrics used to evaluate and compare the company's core operating performance and debt service capacity[238](index=238&type=chunk) EBITDAre and Adjusted EBITDAre | Metric | Three Months Ended June 30, 2022 | Three Months Ended June 30, 2021 | Six Months Ended June 30, 2022 | Six Months Ended June 30, 2021 | | :-------------------- | :----------------------- | :----------------------- | :----------------------- | :----------------------- | | Net income (thousand USD) | 3,834 | 4,164 | 8,119 | 7,487 | | EBITDAre (thousand USD) | 23,271 | 20,611 | 45,536 | 39,824 | | Adjusted EBITDAre (thousand USD) | 24,965 | 22,370 | 48,756 | 43,424 | [Item 3. Quantitative and Qualitative Disclosures About Market Risk](index=41&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) This chapter discloses the company's market risks, primarily interest rate risk, and outlines strategies for managing these risks, including the use of derivative financial instruments - The company's primary risk is interest rate risk, stemming from debt used to acquire medical facilities, including borrowings under its credit facility[240](index=240&type=chunk)[241](index=241&type=chunk) - As of June 30, 2022, the company had **$260.1 million** in unhedged floating-rate borrowings; a **100 basis point** increase in LIBOR would decrease the company's cash flow by approximately **$2.6 million** annually, while a **100 basis point** decrease would increase cash flow by approximately **$2.6 million** annually[242](index=242&type=chunk) - The company's interest rate risk management objectives are to limit the impact of interest rate changes on earnings and cash flows and to reduce overall borrowing costs, potentially through fixed or floating rate borrowings and the use of derivative financial instruments like interest rate swaps and caps[243](index=243&type=chunk)[244](index=244&type=chunk) [Item 4. Controls and Procedures](index=41&type=section&id=Item%204.%20Controls%20and%20Procedures) This chapter reports on the effectiveness of the company's disclosure controls and procedures and any changes in internal financial reporting controls - As of June 30, 2022, the company's Chief Executive Officer and Chief Financial Officer evaluated and concluded that the company's disclosure controls and procedures were effective[246](index=246&type=chunk) - Management does not expect that disclosure controls and procedures or internal controls will prevent all errors and fraud, as control systems can only provide reasonable, not absolute, assurance[247](index=247&type=chunk) - There were no changes in the company's internal control over financial reporting during the most recent fiscal quarter that materially affected, or are reasonably likely to materially affect, internal control over financial reporting[249](index=249&type=chunk) [PART II OTHER INFORMATION](index=42&type=section&id=PART%20II%20OTHER%20INFORMATION) This section includes disclosures on legal proceedings, risk factors, equity sales, defaults, and other miscellaneous information [Item 1. Legal Proceedings](index=42&type=section&id=Item%201.%20Legal%20Proceedings) This chapter states that the company is not currently involved in any material legal proceedings and is unaware of any legal threats that could significantly adversely affect its financial condition or results of operations - The company is not currently involved in any pending legal proceedings or litigation, nor is it aware of any governmental agency considering litigation against the company or its properties that could materially adversely affect its financial condition or results of operations[251](index=251&type=chunk) [Item 1A. Risk Factors](index=42&type=section&id=Item%201A.%20Risk%20Factors) This chapter indicates that there have been no material changes to the risk factors disclosed in the company's annual report on Form 10-K filed on December 31, 2021, for the six months ended June 30, 2022 - For the six months ended June 30, 2022, there have been no material changes to the risk factors disclosed in the company's annual report on Form 10-K filed on December 31, 2021[252](index=252&type=chunk) [Item 2. Unregistered Sales of Equity Securities and Use of Proceeds](index=42&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) This chapter states that the company has no unregistered sales of equity securities or use of proceeds to report - No unregistered sales of equity securities and use of proceeds to report[253](index=253&type=chunk) [Item 3. Defaults Upon Senior Securities](index=42&type=section&id=Item%203.%20Defaults%20Upon%20Senior%20Securities) This chapter states that the company has no defaults upon senior securities to report - No defaults upon senior securities[254](index=254&type=chunk) [Item 4. Mine Safety Disclosures](index=42&type=section&id=Item%204.%20Mine%20Safety%20Disclosures) This chapter states that mine safety disclosures are not applicable to the company - Mine safety disclosures are not applicable[255](index=255&type=chunk) [Item 5. Other Information](index=42&type=section&id=Item%205.%20Other%20Information) This chapter states that the company has no other information to report - No other information[256](index=256&type=chunk) [Item 6. Exhibits](index=42&type=section&id=Item%206.%20Exhibits) This chapter lists the exhibits filed with the Form 10-Q report, including company articles, stock certificates, executive certifications, and XBRL data files - Exhibits include articles of incorporation, amended articles of incorporation, specimen common and preferred stock certificates, CEO and CFO certifications, and Inline XBRL data files[257](index=257&type=chunk)[259](index=259&type=chunk) [Signatures](index=44&type=section&id=Signatures) This chapter contains the signatures of Jeffrey M. Busch, CEO, and Robert J. Kiernan, CFO, certifying the submission of this report - The report was signed by Jeffrey M. Busch, Chief Executive Officer, and Robert J. Kiernan, Chief Financial Officer of Global Medical REIT Inc. on August 5, 2022[264](index=264&type=chunk)[265](index=265&type=chunk)

Global Medical REIT, Inc. (NYSE:GMRE) Q2 2022 Earnings Conference Call August 4, 2022 9:00 AM ET Company Participants Stephen Swett - ICR Jeffery Busch - Chairman, President & CEO Alfonzo Leon - CIO Robert Kiernan - CFO & Treasurer Conference Call Participants Austin Wurschmidt - KeyBanc Capital Markets Connor Siversky - Berenberg Aaron Hecht - JMP Securities Operator Greetings, and welcome to the Global Medical REIT Second Quarter 2022 Earnings Conference Call. [Operator Instructions]. As a reminder, this ...

www.globalmedicalreit.com NYSE: GMRE Second Quarter 2022 Earnings Supplemental Three and Six Months Ended June 30, 2022 Corporate Information and Analyst Coverage Executive Team Jeffrey Busch Chief Executive Officer, Chairman and President Alfonzo Leon Chief Investment Officer Danica Holley Chief Operating Officer Bob Kiernan Chief Financial Officer and Treasurer Jamie Barber General Counsel and Corporate Secretary Board of Directors Jeffrey Busch Chief Executive Officer, Chairman and President Henry Cole L ...

NIMBLE. TENACIOUS. DISCIPLINED. Investor Presentation June 2022 Our goal is to deliver attractive, risk-adjusted returns by investing in quality healthcare assets. | --- | --- | |-------------------------------------------|-----------------------------------------------| | | | | | As a primarily net-leased medical office real | | estate investment trust (REIT), we target | | | | properties operated by profitable healthcare | | | systems or physician groups that are at the | | local communities. | forefront ...

Company Overview - The company focuses on investing in net-leased medical office real estate properties operated by profitable healthcare systems or physician groups[2] - The company has a high-quality portfolio with diversification across tenants/operators and markets[4] - The company has acquired over $1.3 billion since IPO, including $189 million in 2021 and $75 million year-to-date[4] - The company's leverage ratio is 43.7% as of March 31, 2022, with $157 million of available capacity[4] Financial Highlights - The company has $1.4 billion in real estate gross investments[7] - The company's market capitalization is $1.1 billion[7] - The company's weighted average cap rate is 7.8%[7] - The company's dividend yield is 5.1%[7] Portfolio Metrics - The company's net leasable area is 4.4 million square feet[9] - The company has 171 buildings and 201 tenants[9] - The company's portfolio occupancy is 97%[9] - The company's rent coverage is 5.0x[9]

www.globalmedicalreit.com NYSE: GMRE First Quarter 2022 Earnings Supplemental Three Months Ended March 31, 2022 Corporate Information and Analyst Coverage Executive Team Jeffrey Busch Chief Executive Officer, Chairman and President Alfonzo Leon Chief Investment Officer Danica Holley Chief Operating Officer Bob Kiernan Chief Financial Officer and Treasurer Jamie Barber General Counsel and Corporate Secretary Board of Directors Jeffrey Busch Chief Executive Officer, Chairman and President Henry Cole Lead Inde ...

Global Medical REIT Inc. (NYSE:GMRE) Q1 2022 Earnings Conference Call May 5, 2022 9:00 AM ET Company Participants Steve Swett - Investor Relations Jeff Busch - Chief Executive Officer Alfonzo Leon - Chief Investment Officer Bob Kiernan - Chief Financial Officer Conference Call Participants Bryan Maher - B. Riley FBR Austin Wurschmidt - KeyBanc Capital Markets Connor Siversky - Berenberg Rob Stevenson - Janney Valeria Zimina - BMO Capital Markets Operator Good day, and welcome to Global Medical REIT First Qu ...

Global Medical REIT Inc. (NYSE:GMRE) Q4 2021 Earnings Conference Call March 1, 2022 9:00 AM ET Company Participants Steve Swett - Investor Relations Jeff Busch - Chief Executive Officer Alfonzo Leon - Chief Investment Officer Bob Kiernan - Chief Financial Officer Conference Call Participants Barry Oxford - Colliers Securities Rob Stevenson - Janney Montgomery Scott Jordan Sadler - KeyBanc Capital Markets Bryan Maher - B. Riley Securities Operator Greetings, and welcome to the Global Medical REIT's Fourth Qu ...

www.globalmedicalreit.com NYSE: GMRE Fourth Quarter 2021 Earnings Supplemental Three and Twelve Months Ended December 31, 2021 Corporate Information and Analyst Coverage Executive Team Jeffrey Busch Chief Executive Officer, Chairman and President Alfonzo Leon Chief Investment Officer Danica Holley Chief Operating Officer Bob Kiernan Chief Financial Officer and Treasurer Jamie Barber General Counsel and Corporate Secretary Board of Directors Jeffrey Busch Chief Executive Officer, Chairman and President Henry ...