The following is a summary of the Global Medical REIT, Inc. (GMRE) Q3 2024 Earnings Call Transcript:
Financial Performance:
Net income for Q3 2024 was $1.8 million, a decrease from $3.1 million in Q3 2023.
FFO and AFFO per share saw a decrease from the previous year, attributed to the impact of cash basis tenants.
Total revenues for Q3 2024 declined by 3.5% to $34.3 million due to lower occupancy and the impact of tenants on cash basis accounting.
Business Progress:
Global Medical REIT successfully completed the acquisition of a 15 property portfolio of outpatient medical real estate for $80.3 million and announced a new acquisition under contract of a $70 million portfolio of medical outpatient facilities.
The company has entered new leases, such as a 15-year triple net lease with CHRISTUS Health at the Beaumont, Texas facility, replacing Steward Healthcare.
They issued 1.2 million shares at an average price of $9.95 per share, raising $12 million in gross proceeds and sold two medical facilities generating $12.1 million.
Opportunities:
Continued acquisitions show optimism in the medical real estate sector with current properties acquired at favorable cap rates of 8% and upcoming properties at 9%.
The acquisition market and rental from CHRISTUS Health at the Beaumont facility present growth avenues.
Risks:
The decrease in net income and FFO/AFFO as well as the decline in revenue due to impacts from cash basis tenants suggest potential financial instability or challenges in tenant management.
Tips: This article is generated by AI. The accuracy of the content can not be fully guaranteed. For more comprehensive details, please refer to the IR website. The article is only for investors' reference without any guidance or recommendation suggestions.
