Global Medical REIT Inc. has released its investor presentation for November 2024, revealing its recent business activities and financial performance.
The company has made significant acquisitions in the year-to-date (YTD) 2024, totaling $80.3 million, consisting of 15 properties with 254,220 leasable square feet at an 8.0% weighted average capitalization rate. Additionally, it has five properties under contract with an aggregate purchase price of $69.6 million, at a weighted average capitalization rate of 9.0%, expected to close in two tranches during the first half of 2025.
In terms of dispositions, the company has sold three properties, receiving aggregate gross proceeds of $20.2 million. Notably, the company signed a new, 15-year, triple-net lease with an affiliate of CHRISTUS Health in Beaumont, TX, with $2.9 million of annual base rent for the first lease year and 2.5% annual rent increases thereafter.
The company issued 1.2 million shares of common stock through the ATM during the third quarter of 2024 at an average price of $9.95 per share, resulting in $12 million of gross proceeds.
As of September 30, 2024, the company's investments in real estate gross $1.4 billion, with a market cap of $0.6 billion. The weighted average capitalization rate stands at 7.7%, and the dividend yield is at 9.4%.
The company's real estate portfolio includes 187 buildings with 96.1% occupancy, totaling 4.8 million net leasable area (SF). The weighted average lease term is 5.6, and the weighted average rent escalations are at 2.2%.
In terms of its investment strategy, the company focuses on bedroom communities, secondary markets with favorable demand drivers, and decentralized trends. It emphasizes stringent underwriting and due diligence to uncover high retention/patient-centric acquisition opportunities, sustainable cash flows, and attractive lease coverage ratios.
The investor presentation also highlights the company's commitment to corporate responsibility, with initiatives to improve energy consumption, carbon emissions, and efficiency. The board of directors formed a committee for the oversight of corporate sustainability issues and conducted an employee engagement survey to capture information on employee engagement and work satisfaction.
Moreover, the company's liquidity profile reveals $221 million in unutilized revolver capacity as of November 13, 2024. Its total gross debt stands at $634 million, with 81% fixed-rate debt-to-total debt and a weighted average interest rate of 3.79%.
The company's leadership team comprises individuals with extensive experience in healthcare, real estate development, management, investment, financial accounting, reporting, and SEC compliance.
As a result of these announcements, the company's shares have moved -0.5% on the market, and are now trading at a price of $8.63. For the full picture, make sure to review Global Medical REIT's 8-K report.
