Global Medical REIT(US:GMRE)2025-11-05 21:07Financial Performance - Rental revenue for the three months ended September 30, 2025, was $37,036,000, an increase of 5.4% from $34,175,000 in the same period of 2024[164]. - Net income attributable to common stockholders per share for the three months ended September 30, 2025, was $(0.45), compared to $0.14 in the same period of 2024[164]. - Total revenue for Q3 2025 was $37.2 million, an increase of $2.9 million (8.5%) from $34.3 million in Q3 2024, primarily due to acquisitions[185]. - Net loss for Q3 2025 was $5.1 million, a decrease of $8.5 million from net income of $3.4 million in Q3 2024[197]. - Total revenue for the nine months ended September 30, 2025 was $109.8 million, an increase of $6.2 million (6.0%) from $103.6 million in the same period in 2024[200]. - Funds from Operations (FFO) attributable to common stockholders increased to $14,530 thousand in Q3 2025, up from $13,731 thousand in Q3 2024, representing a growth of 5.8%[248]. - Adjusted EBITDAre for the three months ended September 30, 2025, was $25,714 thousand, compared to $24,002 thousand for the same period in 2024, reflecting a year-over-year increase of 7.1%[251]. Debt and Liquidity - Total debt as of September 30, 2025, was $709,635,000, an increase from $646,131,000 as of December 31, 2024[166]. - The weighted average interest rate on total debt increased to 4.06% as of September 30, 2025, compared to 3.75% as of December 31, 2024[166]. - The company has unutilized borrowing capacity under the revolver component of the Credit Facility of $171 million as of November 3, 2025[174]. - The company entered into an Amended and Restated Credit Facility on October 8, 2025, consisting of a $350 million Term Loan A, a $150 million Term Loan B, and a $400 million Revolver[225]. - The weighted average term of the company's debt, including the drawn Revolver component, was 4.4 years as of the closing of the Amended and Restated Credit Facility[230]. - The company expects to satisfy its liquidity needs through cash flow from operations, debt financing, and sales of additional equity securities[219]. Acquisitions and Investments - The company completed the acquisition of a five-property portfolio for a total purchase price of $69.6 million, with an aggregate of 486,598 leasable square feet and annualized base rent of $6.3 million[168][169]. - The company has an interest in an unconsolidated joint venture that owns two healthcare facilities[151]. - The company’s strategy includes investing in healthcare properties that provide attractive returns relative to the cost of capital[148]. Expenses and Impairments - General and administrative expenses for Q3 2025 were $4.9 million, up $0.5 million (11.4%) from $4.4 million in Q3 2024, mainly due to increased corporate expenses[186]. - Operating expenses for Q3 2025 were $8.2 million, an increase of $0.8 million (10.8%) from $7.4 million in Q3 2024, driven by acquisitions[187]. - Depreciation expense for Q3 2025 was $11.2 million, up $1.2 million (12.0%) from $10.0 million in Q3 2024, reflecting the impact of acquisitions[189]. - Interest expense for Q3 2025 was $8.2 million, an increase of $1.0 million (13.9%) from $7.2 million in Q3 2024, due to higher borrowings and interest rates[191]. - The company recognized an impairment loss of $6.3 million related to its Aurora, Illinois facility during the nine months ended September 30, 2025[171]. - The company reported an impairment of investment property amounting to $6,281 thousand for the three months ended September 30, 2025, with no such impairment recorded in the same period of 2024[248]. Shareholder Returns - The quarterly dividend was reduced from $1.05 per share to $0.75 per share effective May 28, 2025[165]. - The Board reduced the quarterly common stock dividend from $1.05 per share to $0.75 per share on a split-adjusted basis to strengthen the balance sheet and support future growth[216]. - The company entered into a $350 million common stock repurchase program approved in August 2025, with no shares repurchased during the nine months ended September 30, 2025[173]. Market and Economic Conditions - The U.S. Federal Reserve lowered the Federal Funds Rate to a target range of 3.75% to 4.00% in October 2025, with the 10-Year U.S. Treasury yield at 4.15%[158]. - Healthcare wage inflation remains a concern, with increased labor costs due to reliance on higher-cost contract nursing labor[161]. Sustainability and Corporate Governance - The company is committed to sustainability and has a Board committee overseeing its sustainability efforts[152].