Global Medical REIT(US:GMRE)2021-03-04 17:05Financial Data and Key Metrics Changes - The company reported a 14.3% year-over-year growth in quarterly AFFO per share to $0.24 and a 17% increase in annual AFFO per share to $0.88 [11][31] - Total revenue for Q4 2020 increased by 22% year-over-year to $24.9 million, while total revenue for the year grew approximately 33% to $93.7 million [24][30] - The company ended the year with a portfolio occupancy of 99.1% and a weighted average base rent of $23.71 per square foot [23][32] Business Line Data and Key Metrics Changes - The company completed $226 million in acquisitions during 2020, comprising over 915,000 leasable square feet at a 7.8% weighted average cap rate [16][20] - In Q4 2020, the company purchased approximately $80 million of high-quality off-campus medical properties at a 7.3% weighted average cap rate [15] Market Data and Key Metrics Changes - The company reported a 4.8 times rent coverage from tenants and a weighted average lease term increase to 8.2 years [23] - Deal flow appears to have returned to pre-COVID levels, with expectations for 2021 acquisitions between $175 million to $225 million at an average cap rate range of 7% to 8% [20] Company Strategy and Development Direction - The company aims to expand its portfolio by exploring new product categories, including mental health facilities and multiple tenant medical office buildings [65] - The management internalization was completed, which is expected to enhance operational efficiency and reduce reliance on external advisors [26] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the portfolio's resilience despite the challenges posed by the COVID-19 pandemic, highlighting strong tenant performance and collection rates [22][66] - The company anticipates a stable G&A expense range for 2021, reflecting a full year of being internally managed [35] Other Important Information - The company achieved a milestone of over $1 billion in real estate investments [11] - As of the end of 2020, the gross investment in real estate was nearly $1.15 billion, an increase of 26.2% from the previous year [32] Q&A Session Summary Question: What is the outlook for G&A and operating expenses in 2021? - Management indicated that G&A and operating expenses combined were about $7 million in Q4, with expectations for a similar range moving forward [38][40] Question: What is the status of the Marina Towers and Rock Surgery assets? - Management confirmed that Marina Towers is in bankruptcy but expects to recover rent, while Rock Surgery is a smaller asset with minimal impact [41][46] Question: How does the company view the dialysis center market? - The dialysis market is described as liquid and attractive, with the company focusing on properties with multiple tenants to enhance yield [52] Question: What is the strategy regarding ATM issuances? - The company is using ATM issuances opportunistically to finance acquisitions and maintain flexibility [55] Question: Are there opportunities for permanent financing? - Management is open to permanent financing options but noted that options are limited due to the company's growth mode [59] Question: What is the approach to capital allocation and scaling acquisitions? - The company is testing different types of products to expand its acquisitions while maintaining a core acquisition strategy of around $200 million annually [65]