Breaking Down Global Medical REIT Inc. (GMRE) Financial Health: Key Insights for Investors

Are you evaluating the financial stability and growth potential of Global Medical REIT Inc. (GMRE)? Understanding the key financial insights from their 2024 performance is crucial for making informed investment decisions. Did you know that GMRE reported a net income of $1.4 million, or $0.02 per diluted share, in the fourth quarter of 2024, a notable improvement from the previous year? With acquisitions of medical real estate totaling $80.3 million at an 8.0% cap rate and a portfolio that is 96.4% occupied, generating an annualized base rent of $110 million, let's delve deeper into the numbers that define GMRE's financial health and what they mean for investors like you.

Global Medical REIT Inc. (GMRE) Revenue Analysis

Understanding Global Medical REIT Inc.'s (GMRE) revenue streams involves analyzing its primary revenue sources, year-over-year revenue growth, the contribution of different business segments, and any significant changes in these areas.

GMRE primarily generates revenue by acquiring healthcare facilities and leasing them to physician groups, regional, and national healthcare systems. As a net-lease medical real estate investment trust (REIT), the company's revenue is mainly derived from rental income from these leases. Mission Statement, Vision, & Core Values of Global Medical REIT Inc. (GMRE).

Here's a breakdown of revenue-related data for Global Medical REIT Inc. (GMRE):

• Primary Revenue Sources: Rental income from leasing healthcare facilities to physician groups and healthcare systems.
• Year-over-Year Revenue Growth Rate:
  • 2024: $138.76 million, a decrease of 1.62% compared to 2023.
  • 2023: $141.05 million, an increase of 2.74% compared to 2022.
  • 2022: $137.28 million, an increase of 18.41% compared to 2021.
  • 2021: $115.94 million, an increase of 23.69% compared to 2020.
  • 2020: $93.73 million, an increase of 32.53% compared to 2019.

The company's revenue for the year 2024 was $138.76 million, which is a 1.62% decrease compared to the revenue of $141.05 million in 2023.

As of December 31, 2024, the portfolio was 96.4% occupied, comprising 4.8 million leasable square feet with an annualized base rent of $110 million. The weighted average lease term for the company's portfolio was 5.6 years with weighted average annual rent escalations of 2.2%, and the portfolio rent coverage ratio was 4.5 times.

The tenant base, categorized by use, breaks down as follows:

• MOB (Medical Office Buildings): 72.8%
• IRF (Inpatient Rehabilitation Facilities): 15.4%
• Surgical Hospital: 3.7%
• Other: 8.3% (includes Office, LTACH, Acute Hospital, Behavioral Hospital, FSED, and Retail)

The top states contributing to the annualized base rent are:

• Texas: 16.2%
• Florida: 11.9%
• Ohio: 8.8%
• Pennsylvania: 6.6%
• Illinois: 6.3%
• Arizona: 6.1%
• Michigan: 5.3%
• Virginia: 4.3%
• California: 2.9%
• North Carolina: 1.0%
• Other: 30.6%

Significant changes in revenue streams may arise from strategic acquisitions and dispositions. For example, in 2024, GMRE acquired a 15-property portfolio for $80.3 million and completed seven dispositions generating $60.7 million in gross proceeds.

Here is a table summarizing Global Medical REIT's revenue from 2020-2024:

In Q4 2024, total revenue increased by 6.7% year-over-year to $35.2 million, primarily attributed to acquisitions made throughout the year.

Global Medical REIT Inc. (GMRE) Profitability Metrics

Analyzing Global Medical REIT Inc. (GMRE)'s financial health involves a close examination of its profitability metrics, which provide insights into the company's ability to generate earnings relative to its revenue, assets, and equity. Key metrics include gross profit, operating profit, and net profit margins. These metrics, tracked over time and compared against industry averages, reveal trends in profitability and operational efficiency.

For the fiscal year 2024, details on specific profit margins and operational efficiencies will give a clear picture of GMRE's financial performance. While exact figures for 2024 are not available yet, examining past performance and industry benchmarks can offer a reasonable expectation.

Typically, the evaluation includes:

• Gross Profit Margin: This indicates the efficiency of GMRE in managing its cost of revenue. It is calculated as (Gross Profit / Revenue) 100.
• Operating Profit Margin: This ratio measures the profit earned from core business operations before interest and taxes, calculated as (Operating Income / Revenue) 100.
• Net Profit Margin: Representing the percentage of revenue that translates into profit after all expenses, including interest and taxes, it is calculated as (Net Income / Revenue) 100.

To provide a more concrete understanding, let's consider a hypothetical scenario based on previous trends and industry averages. Please note that these numbers are purely illustrative and do not reflect actual 2024 data:

Analyzing these metrics over several periods would help identify whether GMRE's profitability is improving, declining, or remaining stable. A comparison against the industry average would further reveal how well GMRE is performing relative to its peers. For instance, if the industry average net profit margin is 25%, a 20% margin for GMRE might suggest areas for improvement in cost management or revenue generation.

Operational efficiency is another critical aspect. Investors should assess how well GMRE manages its costs and how this impacts its gross margin trends. Effective cost management and increasing gross margins typically indicate strong operational performance, contributing positively to overall profitability. Access additional information about the company's goals and strategic direction: Mission Statement, Vision, & Core Values of Global Medical REIT Inc. (GMRE).

Global Medical REIT Inc. (GMRE) Debt vs. Equity Structure

Understanding Global Medical REIT Inc.'s (GMRE) financial health requires a close look at its debt and equity structure. This involves assessing the levels of debt the company carries, comparing its debt-to-equity ratio against industry benchmarks, and analyzing any recent financing activities. This analysis provides insights into how GMRE funds its growth and manages its financial leverage. For an overview of GMRE's investors, see: Exploring Global Medical REIT Inc. (GMRE) Investor Profile: Who’s Buying and Why?

Here's a detailed breakdown:

Overview of Debt Levels:

As of December 31, 2023, Global Medical REIT Inc. (GMRE) reported the following debt figures:

• Total debt outstanding: $831.2 million
• This includes:
• Senior unsecured notes: $400.0 million
• Mortgage debt: $431.2 million

These figures provide a snapshot of the company's overall debt obligations, which are crucial for assessing its financial risk and stability.

Debt-to-Equity Ratio:

As of December 31, 2023, GMRE's debt-to-equity ratio stands at approximately 1.79. This ratio is calculated by dividing total liabilities by shareholders' equity. A ratio of 1.79 suggests that GMRE relies more on debt financing compared to equity. When evaluating this number, it is crucial to compare it against the industry average for REITs, which typically operate with higher leverage due to the nature of their business model. According to New York University (NYU) Stern School of Business, the average debt/equity ratio for REITs can vary, but it generally falls within the range of 1.0 to 2.0.

Recent Debt and Financing Activities:

Key activities in 2023 included:

• February 2023: GMRE issued $100 million in aggregate principal amount of 7.50% Series A Cumulative Redeemable Preferred Stock.
• April 2023: GMRE completed a $75 million private placement of senior unsecured notes due 2028.
• May 2023: GMRE amended and restated its unsecured credit agreement, increasing the total borrowing capacity to $600 million.

Balancing Debt and Equity:

GMRE strategically uses a mix of debt and equity to fund its operations and growth. While debt financing can provide leverage and potentially higher returns, it also increases financial risk. Equity financing, on the other hand, dilutes ownership but reduces the company's reliance on debt.

Here's a look at GMRE's financing structure as of December 31, 2023, based on the data available:

Global Medical REIT Inc. (GMRE) actively manages its debt and equity to maintain financial flexibility and support its strategic objectives. Recent financing activities reflect a proactive approach to capital management, ensuring the company can meet its obligations and invest in future growth opportunities.

Global Medical REIT Inc. (GMRE) Liquidity and Solvency

Analyzing Global Medical REIT Inc.'s (GMRE) financial health involves a close examination of its liquidity and solvency positions. These metrics provide insights into the company's ability to meet its short-term and long-term obligations, which is crucial for investors assessing the stability and potential risks associated with the REIT.

Assessing Global Medical REIT Inc.'s (GMRE) Liquidity:

Liquidity ratios offer a snapshot of Global Medical REIT Inc.'s (GMRE) capacity to cover its immediate liabilities with its current assets. Here's a breakdown of key liquidity measures:

• Current Ratio: The current ratio, calculated by dividing current assets by current liabilities, indicates whether Global Medical REIT Inc. (GMRE) has enough short-term assets to cover its short-term debts. A ratio of greater than 1 suggests that the company has sufficient liquidity.
• Quick Ratio: The quick ratio, also known as the acid-test ratio, is a more conservative measure of liquidity. It excludes inventory from current assets to provide a clearer picture of Global Medical REIT Inc.'s (GMRE) ability to meet its short-term obligations with its most liquid assets.

Analysis of Working Capital Trends:

Monitoring Global Medical REIT Inc.'s (GMRE) working capital trends—the difference between its current assets and current liabilities—can reveal important insights into its operational efficiency and short-term financial health. A positive working capital balance indicates that a company has enough liquid assets to cover its short-term liabilities. Declining working capital could signal potential liquidity issues, while increasing working capital might indicate improved operational efficiency or excess liquid assets.

Cash Flow Statements Overview:

A review of Global Medical REIT Inc.'s (GMRE) cash flow statements is essential for understanding the sources and uses of cash. The cash flow statement is divided into three main sections:

• Operating Activities: This section shows the cash generated or used from Global Medical REIT Inc.'s (GMRE) core business operations. Positive cash flow from operations is a healthy sign, indicating that the company is generating enough cash from its primary activities to cover its expenses.
• Investing Activities: This section includes cash flows related to the purchase and sale of long-term assets, such as property, plant, and equipment (PP&E). These activities can provide insights into Global Medical REIT Inc.'s (GMRE) growth strategy and capital expenditures.
• Financing Activities: This section details cash flows related to debt, equity, and dividends. Analyzing this section can reveal how Global Medical REIT Inc. (GMRE) is funding its operations and returning value to shareholders.

Potential Liquidity Concerns or Strengths:

Based on the analysis of liquidity ratios, working capital trends, and cash flow statements, it’s possible to identify potential liquidity concerns or strengths for Global Medical REIT Inc. (GMRE). Factors that could indicate liquidity concerns include:

• A declining current or quick ratio.
• Negative or declining working capital.
• Negative cash flow from operations.
• High levels of debt or upcoming debt maturities.

Conversely, strengths might include:

• A strong current or quick ratio.
• Positive and growing working capital.
• Positive cash flow from operations.
• A manageable debt load and staggered debt maturities.

For further insights into Global Medical REIT Inc. (GMRE), consider reading: Exploring Global Medical REIT Inc. (GMRE) Investor Profile: Who’s Buying and Why?

Global Medical REIT Inc. (GMRE) Valuation Analysis

Determining whether Global Medical REIT Inc. (GMRE) is overvalued or undervalued involves analyzing several key financial metrics and market indicators. These include price-to-earnings (P/E), price-to-book (P/B), and enterprise value-to-EBITDA (EV/EBITDA) ratios, stock price trends, dividend yield and payout ratios, and analyst consensus.

Currently, comprehensive real-time data for 2024 P/E ratios for REITs can be challenging to obtain due to variations in reporting and the forward-looking nature of earnings estimates. Instead, investors often rely on Funds From Operations (FFO) and Adjusted Funds From Operations (AFFO) to assess a REIT's profitability. Similarly, precise, up-to-date P/B ratios require the most recent financial filings, which may lag. For illustrative purposes, we can examine historical trends and industry averages to provide context.

Stock price trends provide a visual representation of market sentiment. Over the past 12 months, fluctuations in GMRE's stock price would reflect broader market conditions, as well as company-specific events. Recent data indicates:

• On April 18, 2025, GMRE's stock closed at $7.70, experiencing a decrease of $0.04 (0.52%) from the previous day.
• The 52-week high was $9.84, and the 52-week low was $6.65, showing considerable volatility over the year.

Dividend yield and payout ratios are crucial for income-seeking investors. As of recent reports:

• GMRE's dividend yield is approximately 9.87%.
• The most recent dividend payment was $0.20 per share.
• The annual dividend payout is $0.80 per share.

It’s important to note that while a high dividend yield can be attractive, investors should also scrutinize the REIT’s financial health to ensure the dividend is sustainable.

Analyst consensus provides a summarized view of professional opinions on the stock. Based on the latest data available:

• The consensus rating for GMRE is 'Hold.'
• The average price target is $8.00.

These ratings and price targets reflect analysts' expectations for the stock's performance, considering factors like earnings forecasts, industry trends, and company-specific developments.

To consolidate this information, consider the following table which summarizes key valuation metrics (illustrative based on available data):

Investors should also consider qualitative factors, such as the strength of GMRE's property portfolio, its tenant mix, and its management's strategic direction. These elements, combined with quantitative analysis, provide a holistic view of GMRE's valuation.

Dive deeper into understanding the investor landscape of Global Medical REIT Inc. (GMRE): Exploring Global Medical REIT Inc. (GMRE) Investor Profile: Who’s Buying and Why?

Global Medical REIT Inc. (GMRE) Risk Factors

Investing in Global Medical REIT Inc. (GMRE) involves navigating a landscape of both internal and external risk factors that could significantly impact its financial health. These risks range from industry-specific challenges to broader market conditions.

Here's a breakdown of key risks:

• Industry Competition: The healthcare REIT sector is competitive. GMRE faces competition from other REITs, healthcare facility operators, and investors seeking similar assets. Increased competition could lead to lower occupancy rates or rental income if GMRE struggles to attract and retain tenants.
• Regulatory Changes: The healthcare industry is heavily regulated. Changes in regulations, such as those affecting healthcare reimbursement rates or environmental regulations, could adversely affect the operations and profitability of GMRE's tenants, potentially impacting their ability to pay rent.
• Market Conditions: Economic downturns, rising interest rates, and changes in the real estate market can all impact GMRE's financial performance. For instance, rising interest rates could increase GMRE's borrowing costs, reducing profitability.
• Tenant Concentration: GMRE's financial stability is tied to the financial health of its tenants. A significant portion of GMRE's revenue may come from a small number of tenants. The bankruptcy or financial distress of a major tenant could significantly impact GMRE's rental income and overall financial condition.
• Operational Risks: These include risks related to property management, such as maintaining occupancy rates, managing operating expenses, and ensuring compliance with regulations. Failure to effectively manage these operational aspects could negatively impact GMRE's financial performance.
• Financial Risks: GMRE relies on debt financing to fund acquisitions and operations. The availability and cost of debt financing can fluctuate, impacting GMRE's ability to grow and maintain profitability. Additionally, GMRE's dividend policy could be affected by its financial performance and capital needs.
• Strategic Risks: These involve risks related to GMRE's investment strategy and portfolio management. Poor investment decisions, such as acquiring properties at inflated prices or failing to diversify its portfolio, could negatively impact GMRE's financial health.

Mitigation strategies or plans may include:

• Diversifying the tenant base to reduce reliance on any single tenant.
• Actively managing lease expirations and renewals to maintain occupancy rates.
• Implementing cost-control measures to improve operational efficiency.
• Maintaining a strong balance sheet with access to multiple sources of capital.
• Carefully evaluating potential acquisitions to ensure they align with GMRE's investment strategy and risk tolerance.

For more insights into Global Medical REIT Inc. (GMRE) and its investors, check out: Exploring Global Medical REIT Inc. (GMRE) Investor Profile: Who’s Buying and Why?

Global Medical REIT Inc. (GMRE) Growth Opportunities

Global Medical REIT Inc. (GMRE) faces a landscape of both opportunities and challenges as it navigates the healthcare real estate market. Understanding the key growth drivers, potential revenue projections, strategic initiatives, and competitive advantages is crucial for investors assessing the company's future.

Key growth drivers for Global Medical REIT Inc. (GMRE) include:

• Strategic Acquisitions: Expanding the portfolio through targeted acquisitions of medical facilities in growing markets.
• Market Expansion: Identifying and capitalizing on opportunities in underserved or high-growth healthcare markets.
• Tenant Relationships: Strengthening relationships with existing tenants and attracting new, high-quality tenants to maintain occupancy rates and rental income.
• Capital Management: Optimizing the balance sheet through strategic financing and capital allocation decisions.

Analyzing the competitive landscape, Global Medical REIT Inc. (GMRE) possesses several competitive advantages:

• Specialized Focus: A dedicated focus on medical properties allows for specialized expertise and tailored solutions for healthcare tenants.
• Diversified Portfolio: A diversified portfolio across different geographic locations and medical specialties reduces concentration risk.
• Experienced Management Team: An experienced management team with a proven track record in healthcare real estate.

While specific future revenue growth projections and earnings estimates require access to proprietary financial models, investors can monitor the following indicators to gauge the company's performance:

• Occupancy Rates: Maintaining high occupancy rates in existing properties.
• Rental Rate Growth: Achieving rental rate growth through lease renewals and new leases.
• Acquisition Activity: Successfully acquiring and integrating new properties into the portfolio.
• Funds From Operations (FFO): Monitoring FFO, a key metric for REITs, to assess profitability and cash flow generation.

Strategic initiatives and partnerships that may drive future growth include:

• Joint Ventures: Collaborating with healthcare providers or developers on new projects.
• Property Development: Developing new medical facilities to meet growing demand.
• Sustainability Initiatives: Implementing sustainability initiatives to attract tenants and reduce operating costs.

Here's a look at some key financial data from Global Medical REIT Inc.'s recent performance. Please note that this is for illustrative purposes, and the latest official filings should always be consulted for investment decisions.

Explore further insights into the company's investor base: Exploring Global Medical REIT Inc. (GMRE) Investor Profile: Who’s Buying and Why?