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• Portfolio Occupancy: 96.4% with a weighted average lease term of 5.6 years.

• Net Income: $1.4 million or $0.02 per share for Q4 2024.

• FFO: $0.15 per share and unit, down $0.04 from prior year quarter.

• AFFO: $0.22 per share and unit, down $0.01 from prior year quarter.

• Total Revenue: $35.2 million for Q4 2024, a 6.7% increase from prior year.

• Total Expenses: $36.3 million for Q4 2024, up from $31.5 million in prior year quarter.

• G&A Expenses: $7.7 million for Q4 2024, primarily due to $3.2 million in CEO succession plan costs.

• Property Dispositions: Generated $40.5 million in gross proceeds with a $5.8 million gain.

• Gross Investment in Real Estate: $1.5 billion at the end of Q4 2024.

• Debt: $651 million total gross debt with a weighted average interest rate of 3.75%.

• 2025 AFFO Guidance: $0.89 to $0.93 per share and unit.

• Warning! GuruFocus has detected 9 Warning Signs with GMRE.

Release Date: February 28, 2025

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

• Global Medical REIT Inc (NYSE:GMRE) reported a high portfolio occupancy rate of 96.4% at the end of the fourth quarter.

• The company completed significant acquisitions, including a 15-property portfolio for $80.3 million and a five-property portfolio for $69.6 million, enhancing its asset base.

• GMRE successfully closed a joint venture with Heitman, maintaining a 12.5% ownership stake, which allows for strategic growth and capital access.

• The company achieved a net income attributable to common shareholders of $1.4 million in Q4 2024, a positive turnaround from a net loss in the same quarter of the previous year.

• GMRE's strategic asset recycling program generated $40.5 million in gross proceeds from property sales, resulting in a gain of $5.8 million, demonstrating effective portfolio management.

Negative Points

• Funds from operations (FFO) per share decreased to $0.15 in Q4 2024 from $0.19 in the prior year, primarily due to $3.2 million in severance-related costs.

• Adjusted funds from operations (AFFO) per share also saw a slight decline to $0.22 from $0.23 in the previous year.

• The company faced increased total expenses in Q4 2024, rising to $36.3 million from $31.5 million in the prior year, partly due to CEO succession plan costs.

• Prospect Medical Group, a tenant, filed for Chapter 11 bankruptcy, posing a risk to GMRE's revenue stream, as it represented 0.8% of total annualized base rent.

• GMRE's leverage ratio stood at 44.8%, with a weighted average interest rate of 3.75%, indicating a significant level of debt that could impact financial flexibility.