Global Medical REIT – $1.4B Real Estate Investments & 9.0% Dividend Yield

Global Medical REIT Investor Presentation June 2024

Global Medical REIT is focused on attaining earnings growth and dividend stability through maximizing the investment spread in healthcare real estate assets. The company's strategies include primarily investing in off-campus, outpatient medical facilities, and post-acute, in-patient medical facilities.

As of March 31, 2024, the company had made investments of $1.4 billion in real estate, with a gross market cap of $0.6 billion. The weighted average cap rate was 7.9% and the dividend yield was 9.0% based on the closing price of the company's common stock on May 31, 2024.

The company's high-performing real estate portfolio comprised 185 buildings with 268 tenants, boasting a 96.4% occupancy rate. Additionally, the net leasable area stood at 4.8 million square feet.

When it comes to lease terms, the weighted average lease term was 5.8, with a rent coverage of 4.8 times and weighted average rent escalations of 2.2%.

Notable investments in the future of healthcare included properties like Encompass in Mesa, AZ, Southlake Heart & Vascular Institute in Clermont, FL, Mission Health in Livonia, MI, and Legent Hospital for Special Surgery in Plano, TX.

The company's approach involved longer-term leases, annual rent escalations, bedroom communities, and secondary markets with favorable demand drivers. Global Medical REIT is positioned to benefit from decentralization trends, high retention/patient-centric acquisition opportunities, and sustainable cash flows.

From a financial perspective, the company maintained a predominantly fixed-rate debt profile with access to multiple capital sources. As of May 31, 2024, the unutilized revolver capacity was $280 million, and the weighted average interest rate was 3.85% with a weighted average maturity of 2.7 years.

The leadership team at Global Medical REIT boasts extensive experience in healthcare, real estate development, management, investment, financial accounting, and real estate finance.

The company is committed to corporate responsibility, with efforts focused on improving energy consumption, carbon emissions, and efficiency, as well as maintaining a highly skilled and diverse board.

It's important to note that Global Medical REIT's forward-looking statements are based on current expectations, estimates, and assumptions and are subject to certain risks and uncertainties. The company has also provided disclosures regarding rent coverage ratio and other matters, urging caution in placing undue reliance on forward-looking statements.

The market has reacted to these announcements by moving the company's shares -0.6% to a price of $9.25. If you want to know more, read the company's complete 8-K report here.

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