www.globalmedicalreit.com
NYSE: GMRE
Second Quarter 2019 Earnings Results and Operating Information
Three and Six Months Ended June 30, 2019
Table of Contents | ||||
Financial Highlights | 3 | |||
Financial Review | 4 | |||
Condensed Consolidated Balance Sheets | 5 | |||
Condensed Consolidated Statements of Operations | 6 | |||
Condensed Consolidated Statements of Cash Flows | 7 | |||
Reconciliation of Non‐GAAP Measures for Funds from Operations (FFO) and Adjusted Funds From Operations (AFFO) | 8 | |||
Portfolio Updates | 9 | |||
Operating Metrics | 10 | |||
Top 10 Tenant Profiles | 12 | |||
Real Estate Portfolio | 13 | |||
About Global Medical REIT Inc. (NYSE: GMRE) | 15 | |||
Disclosures | 16 | |||
Earnings Call and Webcast | ||||
Date | Thursday, August 8, 2019 | |||
Time | 9:00 a.m. Eastern Time | |||
Dial‐In | 1‐877‐407‐3948: Domestic / 201‐389‐0865: International / Reference: Global Medical REIT Inc. | |||
Webcast | Located on the "Investor Relations" section of the Company's website at | |||
http://investors.globalmedicalreit.com/or by clicking on the conference call link: | ||||
https://78449.themediaframe.com/dataconf/productusers/gmre/mediaframe/31513/indexl.html | ||||
Replay | An audio replay of the conference call will be posted on the Company's website. |
Forward‐Looking Statements
Certain statements contained herein may be considered "forward‐looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995, and it is the Company's intent that any such statements be protected by the safe harbor created thereby. These forward‐looking statements are identified by their use of terms and phrases such as "anticipate," "believe," "could," "estimate," "expect," "intend," "may," "should," "plan," "predict," "project," "will," "continue" and other similar terms and phrases, including references to assumptions and forecasts of future results. Except for historical information, the statements set forth herein including, but not limited to, any statements regarding our earnings, expected financial performance (including future cash flows associated with new tenants), future dividends or other financial items; any other statements concerning our plans, strategies, objectives and expectations for future operations, our pipeline of acquisition opportunities and expected acquisition activity, including the timing and/or successful completion of any acquisitions and expected rent receipts on these properties, and any statements regarding future economic conditions or performance are forward‐looking statements. These forward‐looking statements are based on our current expectations, estimates and assumptions and are subject to certain risks and uncertainties. Although the Company believes that the expectations, estimates and assumptions reflected in its forward‐looking statements are reasonable, actual results could differ materially from those projected or assumed in any of the Company's forward‐looking statements. Additional information concerning us and our business, including additional factors that could materially and adversely affect our financial results, include, without limitation, the risks described under Part I, Item 1A ‐ Risk Factors, in our Annual Report on Form 10‐K, our Quarterly Reports on Form 10‐Q, and in our other filings with the United States Securities and Exchange Commission ("SEC"). You are cautioned not to place undue reliance on forward‐looking statements. The Company does not intend, and undertakes no obligation, to update any forward‐looking statement.
2Q‐2019| Earnings Results and Operating Information | 2 |
Financial Highlights
A reconciliation of non‐GAAP financial measures for Funds from Operations and Adjusted Funds from Operations is included on page 8 within this document.
REVENUES AND OPERATING RESULTS
- Net income attributable to common stockholders for the three and six months ended June 30, 2019 totaled $0.9 million, or $0.03 per share, and $1.4 million, or $0.05 per share, respectively, compared to a net loss of $(0.1) million, or $(0.00) per share, and net income of $0.3 million, or $0.02 per share, respectively, for the three and six months ended June 30, 2018.
- Funds from Operations ("FFO") was unchanged at $0.18 per share for both the three months ended June 30, 2019 and 2018. For the six months ended June 30, 2019, FFO per share decreased to $0.35 per share compared to $0.36 per share for the comparable prior year period.
- Adjusted Funds from Operations ("AFFO") decreased to $0.18 per share for the three months ended June 30, 2019, from $0.20 per share in the comparable prior year period. For the six months ended June 30, 2019, AFFO per share decreased to $0.35 per share compared to $0.36 per share for the comparable prior year period.
- Rental revenue increased to $16.8 million for the three months ended June 30, 2019, from $13.2 million in the comparable prior year period. Rental revenue includes $1.1 million of expense recoveries recognized during the three months ended June 30, 2019 and $0.7 million from the same period in 2018. For the six months ended June 30, 2019, rental revenue increased to $32.0 million compared to $24.8 million for the comparable prior year period. Rental revenue includes $2.4 million of expense recoveries recognized during the six months ended June 30, 2019 and $1.7 million from the same period in 2018.
ACQUISITIONS
- Since January 1, 2019, the Company has completed 10 acquisitions, encompassing an aggregate of 415,419 leasable square feet for a total purchase price of $156.9 million with annualized base rent of $11.7 million at a weighted average cap rate of 7.4%. The Company's 2019 acquisitions are summarized on page 9 and included the following:
- During the six months ended June 30, 2019, six acquisitions, encompassing an aggregate 258,933 leasable square feet, for an aggregate purchase price of $114.6 million with annualized base rent of $8.4 million and a weighted average cap rate of 7.3%.
- To‐date during the third quarter of 2019, four acquisitions, encompassing an aggregate 156,486 leasable square feet, for an aggregate purchase price of $42.3 million with annualized base rent of $3.3 million and a weighted average cap rate of 7.7%.
CAPITAL RAISING AND DEBT
- Since January 1, 2019, the Company has raised $92.9 million of equity through a combination of common stock and OP unit issuances at an average offering price of $9.84 per share. The Company's 2019 equity issuances included the following:
- Issued 8.2 million shares of common stock in an underwritten public offering at a price of $9.75 per share, generating gross proceeds of $80.3 million;
- Issued 1.2 million shares of common stock through the Company's "At‐The‐Market" (ATM) offering program, including 0.3 million shares during the first quarter 2019, 0.1 million shares during the second quarter 2019, and 0.7 million shares to‐date during the third quarter of 2019, at an average offering price of $10.43 per share, generating gross proceeds of $12.0 million; and
- Issued 49 thousand OP units with a value of $0.5 million in connection with a medical facility acquisition.
- On April 15, 2019, the Company exercised $75 million of the $150 million accordion feature of its credit facility. The partial exercise of the accordion feature increased the term loan component of the credit facility from $100 million to $175 million and the total borrowing capacity under the credit facility to $425 million.
COMMON STOCK AND PREFERRED STOCK DIVIDENDS
- On June 13, 2019, the Board of Directors declared:
- a $0.20 per share cash dividend to common stockholders of record as of June 26, 2019, which was paid on July 11, 2019. This dividend represented the Company's second quarter 2019 dividend payment to its common stockholders; and
- a $0.46875 per share cash dividend to holders of record as of July 15, 2019 of its Series A Preferred Stock, which was paid on July 31, 2019. This dividend represented the Company's quarterly dividend on its Series A Preferred Stock for the period from April 30, 2019 through July 30, 2019.
2Q‐2019| Earnings Results and Operating Information | 3 |
Financial Review
A reconciliation of non‐GAAP financial measures for Funds from Operations and Adjusted Funds from Operations is included on page 8 within this document.
CEO COMMENTARY
Jeffrey Busch, the Company's Chief Executive Officer, stated "We continued our impressive acquisition pace in the second quarter by closing on our IRF portfolio, and have since closed or placed under contract another nine properties, with an aggregate purchase price of $105 million." Mr. Busch continued, "We have now passed the three‐year mark since our IPO, and since our IPO, our portfolio has grown from $94 million to $764 million. Although we are very proud of our achievements since our IPO, we plan to continue to grow our portfolio by utilizing our proven acquisition sourcing and due diligence processes. As always, we appreciate the support of our stockholders during the last three years and look forward to continued success in the future."
THREE MONTHS ENDED JUNE 30, 2019
- Rental revenue for the three months ended June 30, 2019 increased to $16.8 million, compared to $13.2 million for the comparable prior year period. This increase was primarily the result of the Company's larger property portfolio compared to the prior year period. Rental revenue includes $1.1 million of expense recoveries recognized during the three months ended June 30, 2019 and $0.7 million from the same period in 2018.
- Total expenses for the three months ended June 30, 2019 were $14.4 million, compared to $11.9 million for the comparable prior year period. This increase was primarily the result of the Company's larger portfolio compared to the prior year period.
- General and administrative expenses decreased to $1.6 million for the three months ended June 30, 2019, compared to $1.8 million in the comparable prior year period. This decrease resulted primarily from a decrease in non‐cash LTIP compensation expense. LTIP compensation expense was $0.9 million for the three months ended June 30, 2019, compared to $1.1 million for the same period in 2018.
- Interest expense for the three months ended June 30, 2019 was $4.1 million, compared to $3.9 million for the comparable prior year period. This increase is primarily due to both higher average borrowings during the quarter compared to the same quarter last year, the proceeds of which were used to finance our property acquisitions, and higher interest rates.
SIX MONTHS ENDED JUNE 30, 2019
- Rental revenue for the six months ended June 30, 2019 increased to $32.0 million, compared to $24.8 million for the comparable prior year period. This increase was primarily the result of the Company's larger property portfolio compared to the prior year period. Rental revenue includes $2.4 million of expense recoveries recognized during the six months ended June 30, 2019 and $1.7 million from the same period in 2018.
- Total expenses for the six months ended June 30, 2019 were $27.6 million, compared to $21.5 million for the comparable prior year period. This increase was primarily the result of the Company's larger portfolio compared to the prior year period.
- General and administrative expenses increased to $3.2 million for the six months ended June 30, 2019, compared to $2.8 million in the comparable prior year period. This increase resulted from an increase in non‐cash LTIP compensation expense. LTIP compensation expense was $1.6 million for the six months ended June 30, 2019, compared to $1.2 million for the same period in 2018.
- Interest expense for the six months ended June 30, 2019 was $8.2 million, compared to $6.6 million for the comparable prior year period. This increase is primarily due to both higher average borrowings during the first six months of 2019 compared to the same period in 2018, the proceeds of which were used to finance our property acquisitions, and higher interest rates.
BALANCE SHEET SUMMARY
- Cash and cash equivalents were $3.2 million as of June 30, 2019, compared to $3.6 million as of December 31, 2018.
- Gross investment in real estate as of June 30, 2019 was $763.6 million, compared to $647.6 million as of December 31, 2018.
- Total debt, which includes outstanding borrowings on the credit facility and notes payable (both net of unamortized deferred financing costs), was $354.3 million as of June 30, 2019, compared to $315.0 million as of December 31, 2018.
- The weighted average interest rate and term of our debt was 4.14% and 3.68 years at June 30, 2019.
2Q‐2019| Earnings Results and Operating Information | 4 |
Condensed Consolidated Balance Sheets
(unaudited, dollars and shares in thousands, except par values)
As of | |||||||
June 30, | December 31, | ||||||
Assets | 2019 | 2018 | |||||
Investment in real estate: | |||||||
Land | $ | 76,831 | $ | 63,710 | |||
Building | 597,029 | 518,451 | |||||
Site improvements | 7,672 | 6,880 | |||||
Tenant improvements | 27,371 | 15,357 | |||||
Acquired lease intangible assets | 54,698 | 43,152 | |||||
763,601 | 647,550 | ||||||
Less: accumulated depreciation and amortization | (41,882) | (30,625) | |||||
Investment in real estate, net | 721,719 | 616,925 | |||||
Cash and cash equivalents | 3,216 | 3,631 | |||||
Restricted cash | 2,656 | 1,212 | |||||
Tenant receivables | 3,935 | 2,905 | |||||
Escrow deposits | 3,518 | 1,752 | |||||
Deferred assets | 11,831 | 9,352 | |||||
Other assets | 3,847 | 322 | |||||
Total assets | $ | 750,722 | $ | 636,099 | |||
Liabilities and Equity | |||||||
Liabilities: | |||||||
Credit facility, net of unamortized discount of $3,784 and $3,922 at June 30, 2019 and | $ | 315,691 | $ | 276,353 | |||
December 31, 2018, respectively | |||||||
Notes payable, net of unamortized discount of $733 and $799 at June 30, 2019 and | 38,652 | 38,654 | |||||
December 31, 2018, respectively | |||||||
Accounts payable and accrued expenses | 4,224 | 3,664 | |||||
Dividends payable | 9,081 | 6,981 | |||||
Security deposits and other | 5,881 | 4,152 | |||||
Due to related parties, net | 1,358 | 1,030 | |||||
Derivative liability | 9,083 | 3,487 | |||||
Other liability | 2,371 | ‐ | |||||
Acquired lease intangible liability, net | 2,778 | 2,028 | |||||
Total liabilities | 389,119 | 336,349 | |||||
Equity: | |||||||
Preferred stock, $0.001 par value, 10,000 shares authorized; 3,105 shares issued and | |||||||
outstanding at June 30, 2019 and December 31, 2018, respectively (liquidation | |||||||
preference of $77,625 at June 30, 2019 and December 31, 2018, respectively) | 74,959 | 74,959 | |||||
Common stock, $0.001 par value, 500,000 shares authorized; 34,653 and 25,944 shares | |||||||
issued and outstanding at June 30, 2019 and December 31, 2018, respectively | 35 | 26 | |||||
Additional paid‐in capital | 322,872 | 243,038 | |||||
Accumulated deficit | (57,397) | (45,007) | |||||
Accumulated other comprehensive loss | (9,293) | (3,721) | |||||
Total Global Medical REIT Inc. stockholders' equity | 331,176 | 269,295 | |||||
Noncontrolling interest | 30,427 | 30,455 | |||||
Total equity | 361,603 | 299,750 | |||||
Total liabilities and equity | $ | 750,722 | $ | 636,099 |
2Q‐2019| Earnings Results and Operating Information | 5 |
Condensed Consolidated Statements of Operations
(unaudited, dollars and shares in thousands, except per share amounts)
Three Months Ended | Six Months Ended | ||||||||||||||
June 30, | June 30, | ||||||||||||||
2019 | 2018 | 2019 | 2018 | ||||||||||||
Revenue | |||||||||||||||
Rental revenue (1) | $ | 16,835 | $ | 13,240 | $ | 31,976 | $ | 24,796 | |||||||
Other income | 45 | 9 | 104 | 18 | |||||||||||
Total revenue | 16,880 | 13,249 | 32,080 | 24,814 | |||||||||||
Expenses | |||||||||||||||
General and administrative | 1,640 | 1,768 | 3,246 | 2,774 | |||||||||||
Operating expenses | 1,143 | 680 | 2,466 | 1,784 | |||||||||||
Management fees - related party | 1,584 | 1,095 | 2,918 | 2,176 | |||||||||||
Depreciation expense | 4,608 | 3,445 | 8,475 | 6,351 | |||||||||||
Amortization expense | 1,255 | 926 | 2,257 | 1,691 | |||||||||||
Interest expense | 4,132 | 3,942 | 8,157 | 6,627 | |||||||||||
Preacquisition fees | 56 | 9 | 56 | 126 | |||||||||||
Total expenses | 14,418 | 11,865 | 27,575 | 21,529 | |||||||||||
Net income | $ | 2,462 | $ | 1,384 | $ | 4,505 | $ | 3,285 | |||||||
Less: Preferred stock dividends | (1,455) | (1,455) | (2,911) | (2,911) | |||||||||||
Less: Net (income) loss attributable to noncontrolling interest | (103) | 7 | (162) | (28) | |||||||||||
Net income (loss) attributable to common stockholders | $ | 904 | $ | (64) | $ | 1,432 | $ | 346 | |||||||
Net income attributable to common stockholders per share - | |||||||||||||||
basic and diluted | $ | 0.03 | $ | (0.00) | $ | 0.05 | $ | 0.02 | |||||||
Weighted average shares outstanding - basic and diluted | 34,559 | 21,631 | 30,990 | 21,631 |
- Rental Revenue includes expense recoveries related to tenant reimbursement of real estate taxes, insurance, and certain other operating expenses of $1.1 million and $0.7 million for the three months ended June 30, 2019 and 2018, respectively, and $2.4 million and $1.7 million for the six months ended June 30, 2019 and 2018, respectively.
2Q‐2019| Earnings Results and Operating Information | 6 |
Condensed Consolidated Statements of Cash Flows
(unaudited and in thousands)
Six Months Ended June 30, | |||||
2019 | 2018 | ||||
Operating activities | $ | ||||
Net income | 4,505 | $ | 3,285 | ||
Adjustments to reconcile net income to net cash provided by operating activities: | |||||
Depreciation expense | 8,475 | 6,351 | |||
Amortization of acquired lease intangible assets | 2,257 | 1,691 | |||
Amortization of above market leases, net | 405 | 294 | |||
Amortization of deferred financing costs and other | 651 | 983 | |||
Stock‐based compensation expense | 1,625 | 1,237 | |||
Other | 70 | 46 | |||
Changes in operating assets and liabilities: | |||||
Tenant receivables | (1,030) | (635) | |||
Deferred assets | (2,479) | (2,635) | |||
Other assets | 37 | 97 | |||
Accounts payable and accrued expenses | (22) | 1,254 | |||
Security deposits and other | 1,729 | 2,924 | |||
Accrued management fees due to related party | 441 | 31 | |||
Net cash provided by operating activities | 16,664 | 14,923 | |||
Investing activities | |||||
Purchase of land, buildings, and other tangible and intangible assets and liabilities | (115,472) | (124,874) | |||
Escrow deposits for purchase of properties | (1,622) | (298) | |||
Loan to related parties | (113) | (80) | |||
Capital expenditures on existing real estate investments | (193) | (437) | |||
Preacquisition costs for purchase of properties | (74) | 118 | |||
Net cash used in investing activities | (117,474) | (125,571) | |||
Financing activities | |||||
Net proceeds received from common equity offerings | 79,651 | ‐ | |||
Escrow deposits required by third party lenders | (144) | (144) | |||
Borrowings from related parties | ‐ | ‐ | |||
Repayment of note payable | (68) | ‐ | |||
Proceeds from Credit Facility | 103,800 | 129,950 | |||
Repayment of Credit Facility | (64,600) | (6,500) | |||
Payments of deferred financing costs | (422) | (1,123) | |||
Redemption of LTIP Units | ‐ | (263) | |||
Dividends paid to common stockholders, and OP Unit and LTIP Unit holders | (13,467) | (9,288) | |||
Dividends paid to preferred stockholders | (2,911) | (2,911) | |||
Net cash provided by financing activities | 101,839 | 109,721 | |||
Net increase (decrease) in cash and cash equivalents and restricted cash | 1,029 | (927) | |||
Cash and cash equivalents and restricted cash-beginning of period | $ | 4,843 | 7,114 | ||
Cash and cash equivalents and restricted cash-end of period | 5,872 | $ | 6,187 |
2Q‐2019| Earnings Results and Operating Information | 7 |
Reconciliation of Funds from Operations (FFO) & Adjusted Funds from Operations (AFFO)
(unaudited, dollars and shares in thousands)
Non‐GAAP Financial Measures
FFO and AFFO are non‐GAAP financial measures within the meaning of the rules of the SEC. The Company considers FFO and AFFO to be important supplemental measures of its operating performance and believes FFO is frequently used by securities analysts, investors, and other interested parties in the evaluation of REITs, many of which present FFO when reporting their results. In accordance with the National Association of Real Estate Investment Trusts' ("NAREIT") definition, FFO means net income or loss computed in accordance with GAAP before noncontrolling interests of holders of OP units and LTIP units, excluding gains (or losses) from sales of property and extraordinary items, less preferred stock dividends, plus real estate‐related depreciation and amortization (excluding amortization of deferred financing costs and above‐market lease amortization expense), and after adjustments for unconsolidated partnerships and joint ventures. Because FFO excludes real estate‐related depreciation and amortization (other than amortization of deferred financing costs and above market lease amortization expense), the Company believes that FFO provides a performance measure that, when compared period‐over‐period, reflects the impact to operations from trends in occupancy rates, rental rates, operating costs, development activities and interest costs, providing perspective not immediately apparent from the closest GAAP measurement, net income or loss.
AFFO is a non‐GAAP measure used by many investors and analysts to measure a real estate company's operating performance by removing the effect of items that do not reflect ongoing property operations. Management calculates AFFO by modifying the NAREIT computation of FFO by adjusting it for certain cash and non‐cash items and certain recurring and non‐recurring items. For the Company these items include: (a) recurring acquisition and disposition costs, (b) loss on the extinguishment of debt, (c) recurring straight line deferred rental revenue, (d) recurring stock‐based compensation expense, (e) recurring amortization of above market leases, (f) deferred financing costs, (g) recurring capital expenditures, (h) recurring lease commissions, (i) recurring tenant improvements, and (j) other items.
Management believes that reporting AFFO in addition to FFO is a useful supplemental measure for the investment community to use when evaluating the operating performance of the Company on a comparative basis. The Company's FFO and AFFO computations may not be comparable to FFO and AFFO reported by other REITs that do not compute FFO in accordance with the NAREIT definition, that interpret the NAREIT definition differently than the Company does, or that compute FFO and AFFO in a different manner.
Three Months Ended | Six Months Ended | |||||||||||
June 30, | June 30, | |||||||||||
2019 | 2018 | 2019 | 2018 | |||||||||
Net income | $ | 2,462 | $ | 1,384 | $ | 4,505 | $ | 3,285 | ||||
Less: Preferred stock dividends | (1,455) | (1,455) | (2,911) | (2,911) | ||||||||
Depreciation and amortization expense | 5,863 | 4,371 | 10,732 | 8,042 | ||||||||
FFO | $ | 6,870 | $ | 4,300 | $ | 12,326 | $ | 8,416 | ||||
Amortization of above market leases, net (1) | 191 | 181 | 405 | 294 | ||||||||
Straight line deferred rental revenue | (1,472) | (1,382) | (2,838) | (2,554) | ||||||||
Stock‐based compensation expense | 854 | 1,055 | 1,625 | 1,237 | ||||||||
Amortization of deferred financing costs and other | 337 | 553 | 650 | 983 | ||||||||
Preacquisition fees | 56 | 9 | 56 | 126 | ||||||||
AFFO | $ | 6,836 | $ | 4,716 | $ | 12,224 | $ | 8,502 | ||||
Net Income attributable to common stockholders per share - basic and diluted | $ | 0.03 | $ | (0.00) | $ | 0.05 | $ | 0.02 | ||||
FFO per Share | $ | 0.18 | $ | 0.18 | $ | 0.35 | $ | 0.36 | ||||
AFFO per Share | $ | 0.18 | $ | 0.20 | $ | 0.35 | $ | 0.36 | ||||
Reconciliation of Weighted Average Shares and Units Outstanding: | ||||||||||||
Weighted Average Common Shares | 34,559 | 21,631 | 30,990 | 21,631 | ||||||||
Weighted Average OP Units | 3,143 | 1,736 | 3,144 | 1,492 | ||||||||
Weighted Average LTIP Units | 785 | 584 | 719 | 512 | ||||||||
Weighted Average Shares and Units Outstanding ‐ basic and diluted | 38,487 | 23,951 | 34,853 | 23,635 |
- The Company adopted the 2018 NAREIT FFO White Paper Restatement during the first quarter of 2019. Accordingly, amortization of above market leases is no longer included as a reconciling item in determining FFO.
2Q‐2019| Earnings Results and Operating Information | 8 |
Portfolio Updates | |
(as of June 30, 2019 unless otherwise stated) | |
Total Buildings | 91 |
Total Square Feet | 2,337,848 |
Total Tenants | 56 |
Occupancy | 100% |
Total Annualized Cash Rent (in thousands) | $58,977 |
Weighted Average Cap Rate | 7.8% |
Weighted Average Lease Term (years) | 9.3 |
Weighted Average Rent Escalations | 2.2% |
2019 Completed Acquisitions
Since January 1, 2019, the Company has completed 10 acquisitions, encompassing an aggregate 415,419 leasable square feet for a total purchase price of $156.9 million with annualized base rent of $11.7 million at a weighted average cap rate of 7.4%.
Purchase | Annualized | ||||||||
Leasable | Price(1) | Base Rent(2) | Capitalization | ||||||
Date | Property | City, State | Square Feet | (in thousands) | (in thousands) | Rate(3) | |||
2/28/2019 | AMG Specialty Hospital | Zachary, LA | 12,424 | $ | 4,500 | $ | 409 | 9.1% | |
3/19/2019 | East Valley Gastro | Chandler, AZ | 39,305 | 16,100 | 1,176 | 7.3% | |||
First Quarter Total | 51,729 | $ | 20,600 | $ | 1,585 | 7.7% | |||
4/15/2019 | Encompass Health Rehabilitation Hospital of Desert Canyon Las Vegas, NV | 53,260 | $ | 21,500 | $ | 1,504 | 7.0% | ||
4/15/2019 | Cobalt Rehabilitation Hospital of Surprise | Surprise, AZ | 54,575 | 28,500 | 1,971 | 6.9% | |||
4/15/2019 | Saint Joseph Rehabilitation Institute | Mishawaka, IN | 45,920 | 16,000 | 1,464 | 9.2% | |||
4/15/2019 | Mercy Rehabilitation Hospital Oklahoma City | Oklahoma City, OK | 53,449 | 28,000 | 1,872 | 6.7% | |||
Second Quarter Total | 207,204 | $ | 94,000 | $ | 6,811 | 7.2% | |||
First Half 2019 Total/Weighted Average | 258,933 | $ | 114,600 | $ | 8,396 | 7.3% | |||
7/12/2019 | cCare | San Marcos, CA | 20,230 | $ | 11,850 | $ | 864 | 7.3% | |
8/1/2019 | East Lansing Portfolio ‐ 1st Closing | Lansing, MI | 42,317 | 11,045 | 860 | 7.8% | |||
8/5/2019 | Bannockburn Medical Office | Bannockburn, IL | 43,939 | 6,900 | 520 | 7.5% | |||
8/6/2019 | Advocate Dreyer | Aurora, IL | 50,000 | 12,500 | 1,019 | 8.2% | |||
Third Quarter To‐Date Total | 156,486 | $ | 42,295 | $ | 3,263 | 7.7% | |||
2019 To‐Date Total/Weighted Average | 415,419 | $ | 156,895 | $ | 11,660 | 7.4% |
- Represents contractual purchase price.
- June 2019 base rent or month of acquisition base rent (or estimated NOI for East Lansing and Bannockburn properties), multiplied by 12.
- Capitalization rates are calculated based on current lease terms and do not give effect to future rent escalations.
Properties Under Contract
Summary information about properties under contract is presented in the table below:
Purchase | Annualized | ||||||
Leasable | Price(1) | Base Rent(2) | Capitalization | ||||
Property | City, State | Square Feet | (in thousands) | (in thousands) | Rate(3) | ||
Mission Health | Livonia, MI | 61,121 | $ | 10,500 | $ | 861 | 8.2% |
Arizona Center for Digestive Disease | Gilbert, AZ | 14,052 | 5,500 | 388 | 7.1% | ||
East Lansing Portfolio ‐ 2nd Closing | Lansing, MI | 25,548 | 5,100 | 403 | 7.9% | ||
MedExpress | Morgantown, WV | 25,000 | 7,825 | 600 | 7.7% | ||
Steward Surgical Hospital | Beaumont, TX | 84,675 | 33,600 | 2,547 | 7.6% | ||
Total Under Contract | 210,396 | $ | 62,525 | $ | 4,799 | 7.7% |
We are currently in the due diligence period for our properties under contract. If we identify problems with one or more of these properties or the operator of the property during our due diligence review, we may not close the transaction on a timely basis or we may terminate the purchase agreement and not close the transaction.
- Represents contractual purchase price.
- Base rent (or estimated NOI for Mission Health and East Lansing properties) when placed under contract, multiplied by 12.
- Capitalization rates are calculated based on current lease terms and do not give effect to future rent escalations.
2Q‐2019| Earnings Results and Operating Information | 9 |
Operating Metrics
(as of June 30, 2019 unless otherwise stated)
Lease Expiration Schedule (% of Leased SF) and Annualized Base Rent (ABR)
($ in thousands)
Number of | Leased | % of Total | ||||
Year | Leases | Square Feet | Leased SF | ABR | % of Total ABR | |
2019 | 0 | ͞ | ͞ | $ | ͞ | ͞ |
2020 | 1 | 2,750 | 0.1% | $ | 61 | 0.1% |
2021 | 3 | 159,338 | 6.8% | $ | 3,931 | 6.7% |
2022 | 2 | 19,736 | 0.8% | $ | 651 | 1.1% |
2023 | 8 | 129,795 | 5.6% | $ | 3,781 | 6.4% |
2024 | 14 | 198,681 | 8.5% | $ | 6,239 | 10.6% |
2025 | 3 | 61,561 | 2.6% | $ | 1,630 | 2.8% |
2026 | 11 | 305,371 | 13.1% | $ | 5,805 | 9.8% |
2027 | 9 | 292,849 | 12.5% | $ | 8,763 | 14.9% |
2028 | 3 | 64,570 | 2.8% | $ | 1,519 | 2.6% |
2029 | 6 | 168,450 | 7.2% | $ | 4,942 | 8.4% |
2030+ | 29 | 932,667 | 40.0% | $ | 21,655 | 36.6% |
Total Leased | 89 | 2,335,768 | 100.0% | $ | 58,977 | 100.0% |
Tenant Affiliation or Property Location | ||
Category | By Rent | |
(A) | On Campus or Adjacent | 25% |
(B) | Health System Affiliated | 49% |
(C) | On Campus or Affiliated | 57% |
(D) | Rehab Hospital / LTACH | 34% |
(E) | Retail Center | 25% |
(F) | Medical Office Park | 24% |
(G) | National Surgical Operator | 13% |
(A), (B), (D), (E) or (F) | 95% | |
Tenant Credit Strength By Asset Type | Rent | |
% of | Coverage | |
Category | ||
ABR | Ratio | |
Inpatient Rehab Facility (IRF) | 30.55% | 3.52x |
Surgical Hospital (SH) | 6.13% | 5.13x |
Long‐term Acute Care Hospital (LTACH) | 3.77% | 3.67x |
TOTAL/WEIGHTED AVERAGE | 40.45% | 3.78x |
Medical Office Building (MOB) | 17.67% | 6.50x |
MOB/Ambulatory Surgery Center (ASC) | 11.84% | 6.79x |
TOTAL/WEIGHTED AVERAGE | 29.51% | 6.62x |
All Tenants Calculated for Rent Coverage | 69.96% | 4.97x |
Large/Credit Tenants Not Calculated | 20.20% | N/A |
Other Tenants Not Available | 9.84% | N/A |
See page 16 for additional information
2Q‐2019| Earnings Results and Operating Information | 10 |
Operating Metrics | ||
(as of June 30, 2019 unless otherwise stated) | ||
Asset Types | Top 10 States | |
% of Annualized Base Rent(1) | % of Annualized Base Rent (1) | |
54.1% | 11.8% | |
19.9% | 10.5% |
9.3% | ||||
1.3% | ||||
3.8% | ||||
3.9% | 17.9% | 9.1% | ||
6.5% | 30.5% | 6.7% | ||
3.1% | ||||
3.2% | 4.3% | 4.4% |
MOB Total | 54.1% | Texas | 19.9% |
Ohio | 11.8% | ||
MOB | 29.5% | ||
Pennsylvania | 10.5% | ||
MOB/ASC | 17.5% | ||
Oklahoma | 9.3% | ||
MOB/Imaging | 7.1% | ||
Arizona | 9.1% | ||
IRF | 30.5% | Florida | 6.7% |
Surgical Hospital | 6.5% | Illinois | 4.4% |
Tennessee | 4.3% | ||
Acute Hospital | 3.9% | ||
Nevada | 3.2% | ||
LTACH | 3.8% | ||
Nebraska | 3.1% | ||
Office | 1.3% | Other | 17.9% |
Top 10 Tenants
% of Annualized Base Rent (1)
11.9%
8.7% | 8.4% | |||||||||
6.1% | ||||||||||
4.4% | 3.9% | 3.3% | 3.1% | 3.0% | 2.6% | |||||
Encompass Memorial Health Kindred Health | OCOM | Carrus Hospital | Pipeline Health Curahealth | Select Medical | Prospect Health | Orlando Health | ||||
(1) Monthly base rent as of June 30, 2019 multiplied by 12 | ||||||||||
2Q‐2019| Earnings Results and Operating Information | 11 | |||||||||
Top 10 Tenant Profiles
(as of June 30, 2019 unless otherwise stated)
Encompass Health (Ba3) (NYSE: EHC), headquartered in Birmingham, AL is a national leader in integrated healthcare services offering both facility‐based and home‐based patient care through its network of inpatient rehabilitation hospitals, home health agencies and hospice agencies. With a national footprint that spans 130 hospitals and 278 home health & hospice locations in 36 states and Puerto Rico, Encompass Health is committed to delivering high‐quality, cost‐effective care across the post‐acute continuum. Encompass Health is ranked as one of Fortune's 100 Best Companies to Work For, as well as Modern Healthcare's Best Places to Work.
Marietta Memorial Health System (MMH), (BB‐) is headquartered in Marietta, OH, and is the largest health system in the Parkersburg‐ Marietta‐Vienna MSA. The largest employer in Washington County, MMH comprises (i) two hospitals, Marietta Memorial Hospital (154‐bed) and Selby General Hospital (25‐bed) critical access hospital; (ii) the Belpre Campus; (iii) ten clinic outpatient service sites; and (iv) five imaging locations, and has over 2,500 employees and 211 accredited physicians.
Oklahoma Center for Orthopedic & Multi‐Specialty Surgery, LLC (OCOM) is based Oklahoma City, OK and affiliated with USPI and INTEGRIS, and is a leading hospital for orthopedic specialists. OCOM operates a surgical hospital with nine operating rooms and a physical therapy department, an ancillary surgery center, and multiple imaging centers in throughout Oklahoma City.
Kindred Healthcare, LLC is a healthcare services company based in Louisville, KY with annual revenues of approximately $3.3 billion. At December 31, 2018, Kindred through its subsidiaries had approximately 35,700 employees providing healthcare services in 1,789 locations in 45 states, including 74 long‐term acute care hospitals, 22 inpatient rehabilitation hospitals, 11 sub‐acute units, 96 inpatient rehabilitation units (hospital‐based) and contract rehabilitation service businesses which served 1,586 non‐affiliated sites of service. Kindred is ranked as one of Fortune magazine's Most Admired Healthcare Companies for nine years.
Carrus Hospital is located in Sherman, TX and provides acute rehabilitative care and long term acute care. Accredited with The Joint Commission's Gold Seal of Approval, Carrus Hospital serves Sherman, Durant, Denison, Gainesville, Denton, McKinney, Plano, Bonham, Lewisville, Carrollton, Fort Worth, Dallas, Oklahoma City and beyond.
Pipeline Health is a privately‐held, community‐based hospital ownership and management company based in Los Angeles. The principals of Pipeline Health have more than 250 years of collective experience in clinical medicine, finance, hospital operations and acquisitions. Pipeline's growing business, through its affiliates, includes: Emergent Medical Associates, a leading provider of ER serving 20+ hospital sites and 900,000 patients annually; Integrated Anesthesia Medical Group, with 100 providers performing 15,000 procedures annually; Avanti Hospitals, a Los Angeles health system with four hospitals, 400+ beds and 55,000 ER visits annually; Cloudbreak, a telemedicine company with 75,000 monthly encounters in 700 hospitals; Pacific Healthworks, a physician practice management company; Benchmark Hospitalists; four community hospitals in Chicago and Dallas, and a recent addition of 22 freestanding EDs upon a merger with Adeptus Health.
Curahealth is a growing national platform currently consisted of 12 long‐term acute care (LTAC) hospitals under the brand of Curahealth Hospitals and six inpatient rehabilitation facilities (IRF) under the brand of Cobalt Rehabilitation. The platform is a portfolio company sponsored by Nautic Partners, a middle‐market private equity group focused on three specialties including healthcare. Nautic currently invests in six healthcare companies including Curahealth and had previously invested in and exited from 14 healthcare companies including Reliant Hospital Partners, an IRF operator that was later sold to Encompass.
Select Medical (B1) is headquartered in Mechanicsburg, PA and one of the largest operators of critical illness recovery hospitals (previously referred to as long term acute care hospitals), rehabilitation hospitals (previously referred to as inpatient rehabilitation facilities), outpatient rehabilitation clinics, and occupational health centers in the U.S. based on the number of facilities. As of December 31, 2018, Select Medical operated 96 critical illness recovery hospitals in 27 states, 26 rehabilitation hospitals in 11 states, and 1,662 outpatient rehabilitation clinics in 41 states. Select Medical's joint venture subsidiary Concentra operated 524 occupational health centers in 41 states.
Prospect Medical Holdings (B3) was Established in 1996, and has grown into a significant provider of coordinated regional healthcare services in Southern California, Connecticut, New Jersey, Pennsylvania, Rhode Island and South Central Texas. In addition to their medical groups, they own 20 acute and behavioral hospitals that are located in diverse areas within Southern California, Connecticut, New Jersey, Pennsylvania, Rhode Island and South Central Texas and maintain competitive market positions in the areas they serve. All of their facilities aim to provide a comprehensive range of services tailored to their specific communities, including partnerships with other hospitals, physicians and health plans.
Orlando Health (A2) is based in Central Florida, Orlando and is a $3.8 billion not‐for‐profit healthcare organization and a community‐based network of hospitals, physician practices and outpatient care centers across Central Florida. The organization is home to the area's only Level One Trauma Centers for adults and pediatrics and is a statutory teaching hospital system that offers both specialty and community hospitals. More than 3,000 physicians have privileges across the system, which is also one of the area's largest employers with more than 23,000 employees who serve nearly 155,000 inpatients, more than 3 million outpatients, and more than 10,000 international patients each year. Additionally, Orlando Health provides more than $345 million in support of community health needs.
2Q‐2019| Earnings Results and Operating Information | 12 |
Real Estate Portfolio
(as of June 30, 2019, see page 16 for footnotes)
Net | Annualized | Annualized | |||||
# of | Leasable | Lease Years | Rent (1) | Rent Per | |||
Property | Location | Bldgs | Facility Type | Square Feet | Remaining | ($ in 000's) Square Foot (1) | |
Mercy Rehabilitation Hospital Oklahoma City | Oklahoma City, OK | 1 | IRF | 53,449 | 8.3 | $1,872 | $35.02 |
Saint Joseph Rehabilitation Institute | Mishawaka, IN | 1 | IRF | 45,920 | 5.5 | $1,464 | $31.89 |
Cobalt Rehabilitation Hospital of Surprise | Surprise, AZ | 1 | IRF | 54,575 | 11.5 | $1,971 | $36.12 |
Encompass Health Rehabilitation Hospital of Desert Canyon | Las Vegas, NV | 1 | IRF | 53,260 | 5.9 | $1,504 | $28.24 |
East Valley Gastroenterology & Hepatology Associates | Chandler, AZ | 3 | MOB/ASC | 39,305 | 10.8 | $1,176 | $29.93 |
AMG Specialty Hospital | Zachary, LA | 1 | LTACH | 12,424 | 17.0 | $409 | $32.91 |
Citrus Valley Medical Associates | Corona, CA | 1 | MOB | 41,803 | 11.5 | $1,204 | $28.80 |
Prospect Medical | Vernon, CT | 2 | MOB/Dialysis/ | 58,550 | 12.2 | $774 | $13.22 |
Administrative | |||||||
Heartland Women's Healthcare | Southern IL | 6 | MOB | 64,966 | 10.3 | $1,158 | $17.82 |
Cancer Center of Brevard | Melbourne, FL | 1 | Cancer Center | 19,074 | 4.0 | $625 | $32.78 |
TriHealth | Cincinnati, OH | 1 | MOB | 18,820 | 6.6 | $313 | $16.64 |
Foot and Ankle Specialists | Bountiful, UT | 1 | MOB | 22,335 | 14.3 | $380 | $17.00 |
Rock Surgery Center | Derby, KS | 1 | ASC | 16,704 | 7.9 | $255 | $15.25 |
Valley ENT | McAllen, TX | 1 | MOB | 30,811 | 10.2 | $439 | $14.25 |
Memorial Health System | Belpre, OH | 4 | MOB/Img/ | 155,600 | 9.8 | $5,112 | $32.85 |
ER/ASC | |||||||
Orlando Health | Orlando, FL | 5 | MOB | 59,644 | 4.7 | $1,248 | $20.92 |
City Hospital at White Rock | Dallas, TX | 1 | Acute Hospital | 236,314 | 18.7 | $2,289 | $9.69 |
Gainesville Eye | Gainesville, GA | 1 | MOB/ASC | 34,020 | 10.7 | $792 | $23.28 |
Northern Ohio Medical Specialists | Fremont, OH | 1 | MOB | 25,893 | 10.6 | $624 | $24.09 |
Fresenius Kidney Care | Moline, IL | 2 | MOB | 27,173 | 11.8 | $548 | $20.17 |
Zion Eye Institute | St. George, UT | 1 | MOB/ASC | 16,000 | 10.5 | $408 | $25.50 |
Respiratory Specialists | Wyomissing, PA | 1 | MOB | 17,598 | 8.5 | $413 | $23.46 |
Amarillo Bone & Joint Clinic | Amarillo, TX | 1 | MOB | 23,298 | 10.5 | $606 | $26.01 |
Kansas City Cardiology | Lee's Summit, MO | 1 | MOB | 12,180 | 5.5 | $280 | $23.03 |
Texas Digestive | Fort Worth, TX | 1 | MOB | 18,084 | 9.0 | $442 | $24.45 |
Albertville Medical Building | Albertville, MN | 1 | MOB | 21,486 | 9.5 | $489 | $22.78 |
Heartland Clinic | Moline, IL | 1 | MOB/ASC | 34,020 | 14.0 | $910 | $26.76 |
Central Texas Rehabilitation Clinic | Austin, TX | 1 | IRF | 59,258 | 7.8 | $3,060 | $51.64 |
Conrad Pearson Clinic | Germantown, TN | 1 | MOB/ASC | 33,777 | 4.9 | $1,518 | $44.94 |
Cardiologists of Lubbock | Lubbock, TX | 1 | MOB | 27,280 | 10.2 | $612 | $22.44 |
Carrus Specialty Hospital | Sherman, TX | 1 | IRF/LTACH | 69,352(4) | 18.0 | $2,620 | $37.77 |
Lonestar Endoscopy | Flower Mound, TX | 1 | ASC | 10,062 | 7.3 | $300 | $29.82 |
Tenant/Guarantor (2)
Kindred/ Mercy
Trinity
Curahealth
Encompass Health
East Valley
Gastroenterology &
Hepatology
Associates/ USPI
AMG Specialty
Hospital
Citrus Valley Medical
Associates
Prospect ECHN /
Prospect Medical
Holdings, Inc.
Heartland Women's
Healthcare / USA
OBGYN Management
Brevard Radiation
Oncology / Vantage
Oncology
TriHealth
Foot and Ankle
Specialists of Utah /
physician guaranty
Rock Surgery
Center/Rock Medical
Assets
Valley ENT
Marietta Memorial
Orlando Health
Pipeline East Dallas
SCP Eyecare Services
Northern Ohio
Medical Specialists
Quad City
Nephrology/Fresenius
Medical Care Holdings
Zion Eye Institute
Berks Respiratory
Amarillo Bone & Joint
Clinic
Kansas City
Cardiology
Texas Digestive
Disease Consultants
Stellis Health
Heartland Clinic
CTRH, LLC / Kindred
Health
Urology Center of the
South/Physician
guarantees
Lubbock Heart
Hospital/Surgery
Partners, Inc.
SDB Partners, LLC
Lonestar Endoscopy
Center, LLC
2Q‐2019| Earnings Results and Operating Information | 13 |
Real Estate Portfolio
(as of June 30, 2019, see page 16 for footnotes)
Annualized | Annualized | |||||||
Net Leasable | Lease Years | Rent (1) | Rent Per | |||||
Property | Location | # of Bldgs | Facility Type | Square Feet | Remaining | ($ in 000's) | Square Foot (1) | Tenant/Guarantor (2) |
Unity Family Medicine | Brockport, NY | 1 | MOB | 29,497 | 11.4 | $621 | $21.04 | Unity Hospital of |
Rochester | ||||||||
Oklahoma Center for Orthopedic & Multi‐ | Oklahoma City, OK | 3 | Surgical Hospital/ | 97,406 | 13.8 | $3,617 | $37.13 | OCOM/INTEGRIS; USPI; |
Specialty Surgery | Physical Therapy/ASC | physician guaranty | ||||||
Orlando Health, Southlake | ||||||||
Southlake Heart & Vascular Institute | Clermont, FL | 1 | MOB | 18,152 | 3.4 | $380 | $20.93 | Hospital, Vascular |
Specialists of Central | ||||||||
Florida | ||||||||
Thumb Butte Medical Center | Prescott, AZ | 1 | MOB | 12,000 | 7.7 | $382 | $31.83 | Thumb Butte Medical |
Center/Physician Guaranty | ||||||||
Las Cruces Orthopedic | Las Cruces, NM | 1 | MOB | 15,761 | 9.6 | $369 | $23.41 | Las Cruces Orthopedic |
Associates | ||||||||
Geisinger Specialty Care | Lewisburg, PA | 1 | MOB/Img | 28,480 | 3.8 | $552 | $19.38 | Geisinger Health |
Southwest Florida Neurological & Rehab | Cape Coral, FL | 1 | MOB | 25,814 | 7.6 | $551 | $21.33 | Southwest Florida |
Neurosurgical Associates | ||||||||
Encompass Mechanicsburg | Mechanicsburg, PA | 1 | IRF | 78,836 | 1.9 | $1,962 | $24.89 | Encompass |
Encompass Altoona | Altoona, PA | 1 | IRF | 70,007 | 1.9 | $1,747 | $24.96 | Encompass |
Encompass Mesa | Mesa, AZ | 1 | IRF | 51,903 | 5.3 | $1,815 | $34.97 | Encompass |
Piedmont Healthcare | Ellijay, GA | 3 | MOB | 44,162 | 7.0 | $375 | $8.49 | Piedmont Mountainside |
Hospital, Inc. | ||||||||
Carson Medical Group Clinic | Carson City, NV | 2 | MOB | 20,632 | 4.3 | $365 | $17.69 | Carson Medical Group |
Northern Ohio Medical Specialists | Sandusky, OH | 8 | MOB | 55,760 | 8.3 | $885 | $15.87 | Northern Ohio Medical |
Specialists | ||||||||
Brown Clinic | Watertown, SD | 3 | MOB/Img | 48,132 | 12.3 | $736 | $15.29 | Brown Clinic |
East Orange General Hospital | East Orange, NJ | 1 | MOB | 60,442 | 7.3 | $981 | $16.23 | Prospect Medical Holdings, |
Inc. | ||||||||
Berks Physicians & Surgeons | Wyomissing, PA | 1 | MOB | 17,000 | 7.1 | $463 | $27.23 | Berks Eye Physicians & |
Surgeons | ||||||||
Berks Eye Surgery Center | Wyomissing, PA | 1 | ASC | 6,500 | 7.1 | $248 | $38.12 | Berkshire Eye |
Marina Towers, LLC/First | ||||||||
Marina Towers | Melbourne, FL | 1 | MOB/Img | 75,899 | 6.8 | $1,149 | $15.14 | Choice Healthcare |
Solutions, Inc. | ||||||||
Surgical Institute of | ||||||||
Surgical Institute of Michigan | Detroit, MI | 1 | MOB/ASC | 15,018 | 6.8 | $409 | $27.25 | Michigan/Surgical |
Management Professionals | ||||||||
Star Medical Center (3) | Plano, TX | 1 | Surgical Hospital | 24,000 | 16.6 | $1,343 | $55.95 | Star Medical Center/Lumin |
Health | ||||||||
Gastro One | Memphis, TN | 6 | MOB/ASC | 52,266 | 8.5 | $1,346 | $25.75 | Gastroenterology Center |
of the MidSouth | ||||||||
Associates Surgery | ||||||||
Associates in Ophthalmology | West Mifflin, PA | 1 | MOB/ASC | 27,193 | 11.2 | $799 | $29.39 | Centers, LLC, Associates in |
Ophthalmology, Ltd. | ||||||||
Orthopedic Surgery Center | ||||||||
Orthopedic Surgery Center of Asheville | Asheville, NC | 1 | ASC | 8,840 | 2.7 | $252 | $28.52 | of Ashville/Surgery |
Partners | ||||||||
Select Specialty Hospital - | ||||||||
Select Medical Hospital | Omaha, NE | 1 | LTACH | 41,113 | 4.1 | $1,815 | $44.16 | Omaha, Inc./Select |
Medical Corporation | ||||||||
Total Portfolio/Average | 91 | 2,337,848 | 9.4 | $58,977 | $25.23 | |||
2Q‐2019| Earnings Results and Operating Information | 14 |
About GMRE
Global Medical REIT Inc. (the "Company") is net‐lease medical office real estate investment trust (REIT) that acquires purpose‐built specialized healthcare facilities and leases those facilities to strong healthcare systems and physician groups with leading market share. The Company's real estate portfolio is comprised of 91 purpose‐built healthcare buildings, which are primarily leased on a triple‐net basis and contains 2.3 million net leasable square feet. These assets are concentrated in secondary and tertiary markets across the United States. The Company's management team has significant healthcare, real estate and REIT experience and has long‐established relationships with a wide range of healthcare providers.
Executive Team
Jeffrey Busch | Chief Executive Officer, Chairman and President |
Alfonzo Leon | Chief Investment Officer |
Danica Holley | Chief Operating Officer |
Bob Kiernan | Chief Financial Officer |
Jamie Barber | General Counsel and Corporate Secretary |
Allen Webb | Senior VP, SEC Reporting and Technical Accounting |
Board of Directors | |
Jeffrey Busch | Chief Executive Officer, Chairman and President |
Henry Cole | Lead Independent Director |
Paula Crowley | Director |
Matthew Cypher | Investment Committee Chair |
Zhang Huiqi | Director |
Zhang Jingguo | Director |
Ronald Marston | Nominating and Corporate Governance Committee Chair |
Dr. Roscoe Moore | Compensation Committee Chair |
Lori Wittman | Audit Committee Chair |
Sell‐Side Coverage
Firm | Name | Phone | |
Baird | Drew T. Babin | dbabin@rwbaird.com | 610.238.6634 |
B. Riley FBR | Bryan Maher | bmaher@brileyfbr.com | 646.885.5423 |
D.A. Davidson | Barry Oxford Jr., CFA | boxford@dadco.com | 212.240.9871 |
Janney | Robert Stevenson | robstevenson@janney.com | 646.448.3028 |
Stifel | Chad Vanacore | vanacorec@stifel.com | 518.587.2581 |
The equity analysts listed above have published research material on the Company and are listed as covering the Company. Any opinions, estimates, or forecasts regarding the Company's performance made by these analysts do not represent the opinions, estimates, or forecasts of the Company or its management and do not by its reference above imply its endorsement of or concurrence with any information, conclusions or recommendations made by any of such analysts. Interested persons may obtain copies of analysts' reports on their own - we do not distribute these reports. Several of these firms may, from time to time, own our stock and/or hold other long or short positions on our stock, and may provide compensated services to us.
2Q‐2019| Earnings Results and Operating Information | 15 |
Disclosures
(as of June 30, 2019)
Rent Coverage Ratio (see page 10)
For purposes of calculating our portfolio weighted‐average EBITDARM coverage ratio ("Rent Coverage Ratio"), we excluded medical office buildings and other non‐hospital tenants that are themselves credit rated or are subsidiaries of credit‐rated health systems. These ratios are based on latest available information only. Most tenant financial statements are unaudited and we have not independently verified any tenant financial information (audited or unaudited) and, therefore, we cannot assure you that such information is accurate or complete. Certain tenants (approximately 10% of our portfolio) are excluded from the calculation due to lack of available financial information or, with respect to our City Hospital at White Rock acquisition, a lack of relevant operating history with a new tenant operator. Additionally, certain components of our Rent Coverage Ratio include management assumptions to adjust for differences in tenant businesses, accounting and reporting practices, including, but not limited to, adjustments (i) for non‐cash charges, (ii) for physician distributions and compensation, (iii) for differences in fiscal year, (iv) for changes in financial statement presentation and (v) for straight‐line rent. Management believes that all adjustments are reasonable and necessary.
Real Estate Portfolio (see pages 13 and 14)
Data as of June 30, 2019.
- Monthly base rent at June 30, 2019 multiplied by 12. Accordingly, this methodology produces an annualized amount as of a point in time but does not take into account future contractual rental rate increases.
- Certain lease guarantees are for less than 100% of the contractual rental payments.
- Carrus Specialty Hospital does not include 12,000 square feet of shell space.
Additional Information
The information in this document should be read in conjunction with the Company's Annual Report on Form 10‐K, Quarterly Reports on Form 10‐Q, Current Reports on Form 8‐K, and other information filed with, or furnished to, the SEC. You can access the Company's reports and amendments to those reports filed or furnished to the SEC pursuant to Section 13(a) or 15(d) of the Exchange Act in the "Investor Relations" section on the Company's website (www.globalmedicalreit.com) under "SEC Filings" as soon as reasonably practicable after they are filed with, or furnished to, the SEC. The information on or connected to the Company's website is not, and shall not be deemed to be, a part of, or incorporated into, this Earnings Results and Operating Information Package. You also can review these SEC filings and other information by accessing the SEC's website at http://www.sec.gov.
Certain information contained in this package, including, but not limited to, information contained in our Top 10 tenant profiles is derived from publicly‐available third‐party sources. The Company has not independently verified this information and there can be no assurance that such information is accurate or complete.
2Q‐2019| Earnings Results and Operating Information | Reporting Definitions and Disclosures | 16 |
www.globalmedicalreit.com
NYSE: GMRE
Investor Contact
Mary Jensen
maryj@globalmedicalreit.com
202.524.6869 - Office
310.526.1707 - Cell
2 Bethesda Metro Center, Suite 440 | Bethesda, MD 20814
(202) 524‐6851
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Global Medical REIT Inc. published this content on 07 August 2019 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 07 August 2019 21:24:05 UTC