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Global Medical REIT (GMRE)
NYSE:GMRE
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Global Medical REIT
(NYSE:GMRE)
56Neutral
Positive Factors
Financial Performance
Adjusted AFFO (FAD) came in above the Street expectations.
Joint Ventures
The company formed a new venture with Heitman, focusing on achieving cash-on-cash returns through a core-plus investment strategy, enabling GMRE to expand its acquisition pipeline without taking on additional balance sheet risk while earning ancillary fees from managing the assets.
Tenant Management
The most positive development was the announcement of a replacement tenant for a hospital that was formerly leased by Steward Healthcare, which removes an overhang.
Negative Factors
Capital Markets
Analyst remains at a Market Perform rating as capital markets remain a challenge for the company.
Expense Management
Expenses were up 15% from the same period last year due to the cost of the CEO succession plan.
Stock Valuation
Valuation discounted to peers but appropriate at this time, as shares of GMRE are trading below the company's historical average.
Global Medical REIT (GMRE) vs. S&P 500 (SPY)
Market Cap
$540.20M
Dividend Yield11.23%
Average Volume (3M)610.14K
Price to Earnings (P/E)608.1
Beta (1Y)0.72
Revenue Growth-0.43%
EPS Growth-94.73%
CountryUS
Employees26
SectorReal Estate
Sector Strength79
IndustryREIT - Healthcare Facilities
Share Statistics
EPS (TTM)0.01
Shares Outstanding66,878,730
10 Day Avg. Volume851,497
30 Day Avg. Volume610,140
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)4.04
Price to Cash Flow (P/CF)6.80
P/FCF Ratio0.00
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$10.40Price Target Upside38.85% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering6
Global Medical REIT Business Overview & Revenue Model
Company DescriptionGlobal Medical REIT Inc. is net-lease medical office REIT that acquires purpose-built specialized healthcare facilities and leases those facilities to strong healthcare systems and physician groups with leading market share.
How the Company Makes MoneyGlobal Medical REIT generates revenue primarily through rental income from its portfolio of healthcare properties. The company leases its facilities to various healthcare operators, such as hospitals and clinics, under long-term, triple-net lease agreements. These leases ensure that tenants cover most operating expenses, including property taxes, insurance, and maintenance costs, providing GMRE with a stable and predictable cash flow. Additionally, GMRE may enhance revenue through strategic acquisitions of high-quality medical properties, which can increase its asset base and rental income. The company's financial performance is also supported by its ability to maintain strong relationships with healthcare providers and its expertise in identifying lucrative investment opportunities within the healthcare real estate market.
Global Medical REIT Financial Statement Overview
Summary
Global Medical REIT demonstrates strong revenue growth and operational efficiency, evidenced by high gross and EBIT margins. The balance sheet shows a robust equity base and no debt, enhancing financial stability. Cash flow metrics highlight strong cash generation. However, low net profit and return on equity suggest areas for improvement in profitability.Income Statement
Global Medical REIT has shown a consistent increase in total revenue over the years, indicating growth in its operations. The Gross Profit Margin is strong at 99.88%, reflecting efficient cost management. However, the Net Profit Margin is low at 0.58%, suggesting high operating and non-operating expenses. The EBIT and EBITDA margins are robust at 78.94%, showing operational efficiency.72
Positive
Balance Sheet
The company has a solid equity base, with an Equity Ratio of 42.52%, indicating a strong reliance on equity financing. The absence of debt in the latest year is a positive sign, reducing financial risk. However, Return on Equity is low at 0.15%, indicating limited returns to shareholders.60
Neutral
Cash Flow
The Operating Cash Flow to Net Income Ratio is high at 86.36, showing strong cash generation relative to net income. Free Cash Flow has grown significantly, indicating improved liquidity and the ability to reinvest in the business. The Free Cash Flow to Net Income Ratio is also favorable at 86.36.68
Positive
| Breakdown | ||||
| Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|
| Income Statement | Total Revenue | |||
| 138.78M | 140.93M | 137.28M | 115.94M | 93.73M | Gross Profit |
| 138.63M | 54.72M | 112.09M | 100.45M | 82.86M | EBIT |
| 109.53M | 37.94M | 38.83M | 37.12M | 16.55M | EBITDA |
| 91.47M | 111.67M | 96.49M | 84.00M | 53.00M | Net Income Common Stockholders |
| 6.63M | 20.61M | -5.23M | -2.07M | -20.61M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 6.82M | 26.40M | 4.02M | 7.21M | 5.51M | Total Assets |
| 1.26B | 1.27B | 1.39B | 1.26B | 1.10B | Total Debt |
| 653.59M | 618.91M | 694.12M | 571.73M | 586.58M | Net Debt |
| 646.78M | 616.80M | 690.10M | 564.52M | 581.07M | Total Liabilities |
| 700.57M | 661.89M | 744.20M | 625.91M | 643.15M | Stockholders Equity |
| 534.13M | 583.58M | 632.98M | 622.78M | 444.81M |
| Cash Flow | Free Cash Flow | |||
| 70.05M | 58.39M | -79.66M | -132.69M | -184.27M | Operating Cash Flow |
| 70.05M | 68.44M | 76.54M | 68.97M | 34.52M | Investing Cash Flow |
| -45.94M | 67.62M | -137.25M | -194.66M | -223.67M | Financing Cash Flow |
| -21.89M | -143.79M | 62.41M | 127.70M | 192.72M |
Global Medical REIT Technical Analysis
Negative
7.49
Price Trends
8.15
Negative
7.99
Negative
8.38
Negative
Market Momentum
-0.28
Positive
41.96
Neutral
68.53
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GMRE, the sentiment is Negative. The current price of 7.49 is below the 20-day moving average (MA) of 7.88, below the 50-day MA of 8.15, and below the 200-day MA of 8.38, indicating a bearish trend. The MACD of -0.28 indicates Positive momentum. The RSI at 41.96 is Neutral, neither overbought nor oversold. The STOCH value of 68.53 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for GMRE.
Global Medical REIT Risk Analysis
Global Medical REIT disclosed 66 risk factors in its most recent earnings report. Global Medical REIT reported the most risks in the “Finance & Corporate” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Global Medical REIT Peers Comparison
Overall Rating
UnderperformOutperform
Sector (59)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
74 Outperform | $1.48B | 35.44 | 2.86% | 3.00% | -0.10% | 78.83% | |
62 Neutral | $531.59M | 27.62 | 10.11% | 7.63% | 3.60% | 24.76% | |
60 Neutral | $453.43M | ― | -1.21% | 11.59% | 2.61% | -221.50% | |
59 Neutral | $2.71B | 11.52 | 0.08% | 8691.97% | 5.56% | -16.56% | |
56 Neutral | $540.20M | 608.13 | 1.19% | 11.23% | -0.43% | -94.73% | |
54 Neutral | $542.78M | ― | -17.24% | 1.78% | 6.04% | -25.79% | |
52 Neutral | $134.42M | 19.08 | 31.90% | 4.92% | 17.29% | 47.33% |
* Real Estate Sector Average
Performance Comparison
GMRE
Global Medical REIT
7.49
0.03
0.40%
DHC
Diversified Healthcare Trust
2.23
-0.17
-7.08%
CHCT
Community Healthcare
15.95
-7.45
-31.84%
UHT
Universal Health Realty Income
38.16
6.97
22.35%
STRW
Strawberry Fields REIT Inc
11.03
2.73
32.89%
SILA
Sila Realty Trust, Inc.
25.64
7.36
40.26%
Global Medical REIT Earnings Call Summary
Earnings Call Date: Feb 27, 2025 | % Change Since: -9.54% | Next Earnings Date: May 7, 2025
Earnings Call Sentiment Neutral
The call highlighted strong portfolio performance with significant acquisitions and successful joint venture formation, but also noted challenges such as a reduction in FFO due to severance costs, a major tenant bankruptcy, and increased expenses. Despite the positive achievements, these challenges cannot be overlooked.Highlights
Strong Portfolio Performance
Portfolio occupancy was 96.4% with a weighted average lease term of 5.6 years and a rent coverage ratio of 4.5 times.
Significant Acquisition Activity
Completed the acquisition of a 15-property portfolio for $80.3 million and entered into another purchase agreement for five properties for $69.6 million at a 9% cap rate.
Successful Dispositions
Generated $40.5 million in gross proceeds from the sale of four medical facilities, resulting in a gain of $5.8 million.
Heitman Joint Venture
Formed a joint venture with Heitman, contributing two properties and maintaining a 12.5% ownership stake.
Revenue Growth
Total revenues for Q4 2024 increased by 6.7% compared to the prior year, reaching $35.2 million.
Lowlights
Reduction in FFO
FFO attributable to common stockholders and non-controlling interest decreased from $13.3 million to $11.1 million in Q4 2024, primarily due to $3.2 million in severance-related costs.
Prospect Medical Group Bankruptcy
Prospect Medical Group filed for Chapter 11, impacting approximately $2.4 million in outstanding lease payments.
Increase in G&A Expenses
G&A expenses increased to $7.7 million in Q4 2024 from $4.2 million in the prior year, mainly due to the CEO succession plan costs.
Impairment Loss
Recognized a $1.7 million impairment loss related to the Derby, Kansas facility.
Company Guidance
During Global Medical REIT's fourth quarter 2024 earnings call, the company provided several key financial metrics and strategic updates. The portfolio maintained a high occupancy rate of 96.4% with a weighted average lease term of 5.6 years and a rent coverage ratio of 4.5 times. The net income attributable to common shareholders for the quarter was $1.4 million, or $0.02 per share, a turnaround from a net loss in the same quarter of the previous year. Funds from operations (FFO) and adjusted funds from operations (AFFO) per share were $0.15 and $0.22, respectively, reflecting impacts from $3.2 million in severance-related costs. The company completed acquisitions totaling $80.3 million at an 8% cap rate and $69.6 million at a 9% cap rate. Dispositions generated $40.5 million in gross proceeds with a gain of $5.8 million. The balance sheet showed gross real estate investments of $1.5 billion and total gross debt of $651 million, with 79% being fixed-rate. The 2025 AFFO per share is projected to be between $0.89 and $0.93, excluding one-time CEO succession expenses. The guidance assumes no further acquisition or disposition activity beyond what has already been announced.Global Medical REIT Corporate Events
Executive/Board Changes
Global Medical REIT Announces Leadership Transition Plan
Neutral
Jan 8, 2025
Global Medical REIT announced the transition of Jeffrey Busch from his role as CEO while maintaining his position as non-executive Chairman of the Board. The company is conducting a search for a new CEO to lead the company forward, with Lori Wittman appointed as lead independent director to help guide this transition, ensuring continued value for stakeholders.
Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.