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- **Portfolio Strength**: 2.7% same-store NOI growth, 95.2% occupancy, and 5.3-year WALT highlight resilient asset performance.
- **Balance Sheet Optimization**: Extended debt maturities to 2031, reduced interest rate to 4.8%, and $39.2M FAD coverage.
- **Growth Pipeline**: $500M+ acquisition pipeline at 7.5%-8% returns, with 50%-100M asset sales to fund external growth.
- **Strategic Focus**: Disciplined capital allocation, debt reduction, and expansion into health care infrastructure beyond MOBs.
- **Share Buybacks**: Evaluating stock buybacks as attractive alternative to asset sales, given 9% implied cap rate.

**【CEO Opening Remarks】**
- Mark Decker highlighted the first quarter of the new management team, emphasizing internal earnings growth, disciplined capital allocation, and external growth opportunities.
- Portfolio performance: 2.7% same-store NOI growth, 95%+ occupancy, and 5.3-year weighted average lease term (WALT).
- Balance sheet improvement: Extended debt maturities to 2029-2031, reduced interest rate spread, and $350M Term Loan A restructuring.
- Strategic focus: Enhancing asset quality, optimizing capital structure, and pursuing external growth through asset recycling.

**【CFO Financial Commentary】**
- Q3 FFO: $14.5M ($1.00 per share), AFFO: $16.2M ($1.12 per share), up 4% YoY.
- Debt restructuring: Removed 10bps SOFR credit spread, extended revolver to 2029, and hedged Term Loan A at 4.8% effective rate.
- Dividend coverage: 84% of FAD, with $39.2M year-to-date FAD.
- Capital allocation: Prioritizing debt reduction, buybacks, and accretive acquisitions.

**【COO Operational Update】**
- Portfolio metrics: 95.2% leased, 2.7% same-store NOI growth, and $9.7M year-to-date CapEx.
- Key actions: Disposed of 2 low-yield assets, re-leased 85K sqft in Texas, and reduced health system admin space exposure to <2%.
- Leasing pipeline: Expecting occupancy to trend toward 96% by year-end.

**【CIO Investment Pipeline】**
- Deal flow: $11.5B in prospective transactions, with $500M+ pipeline at 7.5%-8% cash returns.
- Execution strategy: Funding acquisitions via asset recycling, targeting 20%-40% of pipeline closure in 2026.
- Capital constraints: Waiting for capital markets to greenlight external growth, with leverage target <6x.

**【Q&A Highlights】**
- **Occupancy & Earnings Growth**: Q4 FFO guidance ($1.13-$1.23) driven by lease-ups and interest savings; 96% year-end occupancy assumes signed leases in pipeline.
- **Debt Strategy**: Pursuing insurance debt for longer-term funding; aiming for BBB- credit rating and sub-6x leverage.
- **Acquisition Pipeline**: 50%-100M near-term asset sales to fund accretive buys; targeting 200-500M annual external growth if leverage permits.
- **Strategic Plan**: Focused on capital allocation, balance sheet optimization, and health care infrastructure expansion beyond MOBs.
- **Share Buybacks**: Evaluating buybacks as attractive alternative to asset sales, given stock trading at 9% implied cap rate.


Global Medical REIT Inc. (GMRE) Q3 2025 Earnings Call Transcript

- **New CEO Vision**: Emphasizes debt refinancing, asset recycling, and middle-market healthcare REIT leadership.
- **Portfolio Resilience**: 94.5% occupancy with successful retenanting at Beaumont, TX; East Orange property on path to 90%+ occupancy.
- **Investment Momentum**: $150M acquisitions at 8.5% yield, capitalizing on $2.1B Q2 transaction volume surge.
- **Balance Sheet Optimization**: Dividend cut to $0.15/share, targeting $17M annual capital for recycling or growth.
- **Strategic Growth**: Plans to sell $50-100M in high-yielding assets, while maintaining <40% leverage target.

**【CEO Opening Remarks】**
- Mark Decker, the new CEO, emphasized the company's transition phase and thanked the team for maintaining momentum during leadership change.
- Key priorities include refinancing debt, asset recycling, and improving balance sheet flexibility.
- Decker highlighted the importance of owning the middle-market healthcare real estate space and enhancing transparency in disclosures.

**【COO Portfolio Update】**
- Occupancy rate of 94.5% as of Q2, down from Q1 due to lease expirations at Aurora (50k sqft) and East Orange (60k sqft) properties.
- Success story: Beaumont, TX facility retenanted with CHRISTUS Health, now fully operational and paying rent.
- East Orange property shows progress with 40% occupancy, expected to stabilize at >90% within 2-3 years.
- Guidance for 2025 occupancy >95%, including 150k sqft of new leases (130k completed).

**【CIO Investment Activity】**
- Acquired 5-property portfolio for ~$150M at 8.5% blended yield, with in-place rents 30% below market.
- Market dynamics: Q2 2025 transaction volume spiked to $2.1B (7x prior levels), driven by short-term owners exiting.
- Strategy focuses on wide discounts to replacement cost and superior rent growth potential.

**【CFO Financial Update】**
- Refinancing priorities: renewing $350M Term Loan and revolver by Q4 2025 to extend maturity ladder.
- Dividend reduced to $0.15/share (from $0.21) to improve FAD coverage (79% vs 110% prior).
- Capital recycling program identified $50-100M in assets for sale, targeting high-yielding properties with strong tenants.

**【Q&A Highlights】**
- Strategic focus: balance sheet strength, disciplined capital allocation, and selective asset sales.
- Leverage target: <40% debt-to-EBITDA or <6x debt-to-EBITDA, with preferred stock treated as equity.
- East Orange property expected to contribute ~$1.2M annualized rent upon stabilization.
- JV strategy: expand Heitman JV with institutional partners, focusing on high-quality deals.


Global Medical REIT Inc. (GMRE) Q2 2025 Earnings Call Transcript

- **Strong Financial Performance**: Q1 net income up 150% YoY, despite FFO/AFFO declines due to one-time costs.
- **Strategic Acquisitions**: $69.6M portfolio acquisition at 9% cap rate; 92% initial occupancy.
- **Leverage Management**: 46.1% LTV with 75% fixed-rate debt; no immediate dividend change.
- **Risk Mitigation**: East Orange facility re-leasing underway; 2025 lease retention target 75%.
- **Market Outlook**: 2025 medical REIT cap rates 6-8%; cautious but opportunistic acquisition strategy.

**【CEO Opening Remarks】**
- Q1 2025 net income: $2.1 million ($0.03 per share), up 150% YoY from $0.01 per share.
- FFO per share: $0.20 (down $0.01 YoY), AFFO per share: $0.22 (down $0.01 YoY).
- Acquired 5 medical facilities ($69.6M, 9% cap rate) and disposed of 2 properties ($8.2M gross proceeds).
- CEO succession plan: Final candidates identified; new CEO expected by June 30, 2025.

**【CIO Investment Update】**
- Acquired 5 assets (487K sqft, $143/sf) with 92% initial occupancy:
  - 2 Tucson, AZ facilities (Tenet Healthcare tenants)
  - 1 Slippery Rock, PA off-campus facility
  - 2 Des Moines, IA facilities ( MercyOne tenants)
- Disposed of 2 assets: Coos Bay, OR facility sold at 6.7% cap rate.
- 2025 capital recycling strategy: Targeting accretive acquisitions in 7-9% cap rate range.

**【CFO Financial Review】**
- Q1 2025 portfolio: $1.5B AUM, 95.6% occupancy, 5.6-year WALE, 4.4x rent coverage.
- Total revenue: $34.6M (-1.4% YoY), expenses: $32.2M (-2.0% YoY).
- G&A expenses: $3.6M (cash basis: $3.4M, down 24% YoY).
- Balance sheet: $681M debt (46.1% leverage), 75% fixed rate, 3.84% WAC.
- 2025 AFFO guidance: $0.89-$0.93 per share.

**【Q&A Highlights】**
1. **Prospect Medical Risk**: East Orange, NJ facility vacated, but 25% of post-petition rent collected. Expect to re-lease space at mid-$30s/gross by end-2025.
2. **Acquisition Market**: 70-80% transaction volume decline in 2023-2024; 2025 cap rate spread: 6-8% for medical REIT-quality assets.
3. **Leverage Policy**: Target 40-45% LTV, but willing to exceed for accretive deals (currently 46.1%).
4. **Dividend Sustainability**: No immediate dividend action; prioritizing debt refinancing and strategic acquisitions.
5. **Lease Renewals**: 62% Q1 expiries renewed, targeting 75% 2025 retention rate. 80% of Q1 non-renewals progressing to re-lease.


Global Medical REIT (GMRE)-8 May 25-2025 Q1 Earnings call transcript

- **Q4 Financials**: Net income up to $1.4M, but FFO/AFFO impacted by $3.2M CEO transition costs
- **Acquisition Momentum**: $149.9M in 2024 portfolio acquisitions at 8-9% cap rates
- **JV Expansion**: New Heitman JV with $50M seed capital targeting core-plus assets
- **Tenant Risks**: 0.8% ABR exposure to Prospect bankruptcy, 70-80% lease renewal retention
- **2025 Outlook**: AFFO guidance $0.89-$0.93/share, balanced between growth and capital preservation

**【CEO Opening Remarks】**
- Q4 2024 net income of $1.4M ($0.02/share), up from Q4 2023 loss of $0.01M. 
- FFO of $0.15/share (down 21% YoY) and AFFO of $0.22/share (flat YoY) due to $3.2M CEO succession costs.
- Acquired 15-property portfolio ($80.3M, 8% cap rate) and 5-property portfolio ($69.6M, 9% cap rate) in 2024.
- Sold 4 properties for $40.5M, generating $5.8M gain.
- Announced CEO succession plan with transition to new leader in 2025.

**【CIO Investment Update】**
- Q4 2024 acquisitions: 
  - 10-property tranche ($49.5M, 8% cap rate) of 15-property portfolio
  - 3-property tranche ($31.5M, 9% cap rate) of 5-property portfolio
- Portfolio metrics: 96.4% occupancy, 5.6-year WALE, 4.5x rent coverage
- 2024 dispositions: $60.7M total proceeds (12% cap rate), including $35.2M to Heitman JV
- 2025 guidance: AFFO $0.89-$0.93/share, excluding one-time costs

**【CFO Financial Review】**
- Q4 2024 revenue $35.2M (+6.7% YoY), expenses $36.3M (+15.3% YoY) due to CEO transition costs
- G&A expenses $7.7M (+83% YoY) driven by $3.2M severance
- Debt metrics: $651M total debt (44.8% leverage), 3.75% WACC
- 2025 capex $12-14M, 45% for tenant improvements

**【Q&A Key Topics】**
1. **Heitman JV Strategy**: 
   - Seed capital $50M, targeting 7% cap rate core-plus assets
   - GMRE maintains 12.5% ownership, manages assets
   - No plans to sell additional GMRE assets into JV
2. **CEO Transition**: 
   - Seeking capital markets experienced leader
   - Current CEO to remain Chairman
3. **Tenant Risks**: 
   - Prospect bankruptcy exposure: $2.4M past due, 0.8% of ABR
   - Steward Health Services lease re-negotiations ongoing
4. **Acquisition Pipeline**: 
   - 2025 focus on 8-9% cap rate medical office properties
   - Prudent balance sheet management with $219M revolver capacity

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