Global Medical REIT Inc (GMRE, Financial) released its financial results for the third quarter of 2023 on November 6, 2023. The company reported a slight increase in rental revenue to $35.5 million, reflecting its acquisition activity during the comparable prior year period and the performance of its portfolio, partially offset by the impact of property dispositions.
Financial Highlights
Total expenses for the third quarter increased modestly to $33.0 million, primarily reflecting higher operating and general and administrative expenses. Net income attributable to common stockholders for the third quarter totaled $3.1 million, or $0.05 per diluted share, compared to $8.1 million, or $0.12 per diluted share, in the comparable prior year period.
The company reported Funds From Operations (FFO) of $15.3 million, or $0.22 per share and unit, and Adjusted Funds From Operations (AFFO) of $16.5 million, or $0.23 per share and unit, for the third quarter of 2023.
Investment Activity and Portfolio Update
During the third quarter of 2023, GMRE completed the sale of a medical office building located in North Charleston, South Carolina, at a cap rate of 5.3%, receiving gross proceeds of $10.1 million, resulting in a gain of $2.3 million. As of September 30, 2023, the company’s portfolio was 96.7% occupied and comprised of 4.7 million leasable square feet with an annualized base rent of $111.4 million.
Balance Sheet and Dividends
As of September 30, 2023, total debt outstanding was $617.6 million and the company’s leverage was 44.2%. The company’s total debt carried a weighted average interest rate of 3.78% and a weighted average remaining term of 3.1 years. On September 8, 2023, the Board of Directors declared a $0.21 per share cash dividend to common stockholders and unitholders of record as of September 22, 2023.
Looking Ahead
Jeffrey M. Busch, Chairman, Chief Executive Officer and President of GMRE, stated,
During the third quarter, we continued to produce consistent results highlighting the high quality of our portfolio and the stability of our tenant base...Looking ahead to the remainder of the year, we will continue to remain prudent as the transaction market evolves, and with our sufficient liquidity we are well-prepared to seize acquisition opportunities when spreads become attractive to support accretive growth.”
Explore the complete 8-K earnings release (here) from Global Medical REIT Inc for further details.
