Global Medical REIT(GMRE) - 2025 Q2 - Quarterly Results

Financial and Operational Highlights Second Quarter 2025 Highlights 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] - Completed the acquisition of the remaining two properties in a five-property medical portfolio for an aggregate purchase price of $38.1 million[4] - 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] Six Months 2025 Highlights 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] - Completed three dispositions, generating aggregate gross proceeds of $9.6 million and an aggregate gain of $1.6 million[12] Financial Performance and Portfolio Status Financial Results 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] - 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] - 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] Investment and Portfolio Update 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] - 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] 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 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] - No shares of common stock were issued under the ATM program during Q2 2025 or through August 4, 2025[17] 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] - Declared a quarterly cash dividend of $0.46875 per share for Series A Preferred Stock, paid on July 31, 2025[19] 2025 Guidance Full Year 2025 AFFO Guidance 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] - 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] Financial Statements and Reconciliations Condensed Consolidated Balance Sheets 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 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 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 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 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 Non-GAAP Financial Measures Definitions 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] - 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] - FAD is derived by subtracting capital expenditures from AFFO and is used as an indicator of the cash flow available for dividend distributions[31] Conference Call Information 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] - Dial-in numbers are provided for domestic (1-800-343-5172) and international (1-203-518-9856) participants with conference ID GMRQ2[24]