Global Medical REIT (GMRE) AI Stock Analysis

• Market Cap: $549.33M
• Dividend Yield: 10.33%
• Average Volume (3M): 684.66K
• Price to Earnings (P/E): 109.4
• Beta (1Y): 0.73
• Revenue Growth: 0.90%
• EPS Growth: N/A
• Country: US
• Employees: 26
• Sector: Real Estate
• Sector Strength: 53
• Industry: REIT - Healthcare Facilities
• EPS (TTM): -0.01
• Shares Outstanding: 66,878,730
• 10 Day Avg. Volume: 701,296
• 30 Day Avg. Volume: 684,659
• PEG Ratio: -0.81
• Price to Book (P/B): 0.95
• Price to Sales (P/S): 3.68
• P/FCF Ratio: -20.30
• Enterprise Value/Market Cap: 2.34
• Enterprise Value/Revenue: 9.30
• Enterprise Value/Gross Profit: 11.83
• Enterprise Value/Ebitda: 13.80
• 1Y Price Target: $7.75
• Price Target Upside: 2.65% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 4

• Rating: 64 Neutral
• Price Target: $7.50 ▼(-0.66% Downside)

Global Medical REIT's overall score is driven by strong financial performance and strategic growth initiatives highlighted in the earnings call. However, high P/E ratio and dividend reduction pose valuation concerns. Technical indicators suggest neutral momentum, balancing the overall assessment.

Positive Factors

Investment Strategy

The company formed a new venture with Heitman, which focuses 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.

Leadership

GMRE announced it has appointed Mark Decker as CEO - a positive for shares.

Valuation

The company shares are trading attractively compared to the other healthcare REITs given that the company deserves at least a group average multiple.

Negative Factors

Dividend Policy

The board has already cleared the deck on the dividend with a cut of 29%.

Leverage

GMRE's leverage remains high with net debt+prefs/EBITDA of 7.8x, limiting financial flexibility.

Occupancy

There are concerns about upcoming leasing risks and opportunities due to a decrease in occupancy.

Global Medical REIT Business Overview & Revenue Model

Company Description

Global Medical REIT (GMRE) is a real estate investment trust (REIT) focused on acquiring and managing purpose-built medical facilities that are leased to healthcare providers throughout the United States. The company primarily invests in outpatient facilities, surgical centers, and other types of healthcare properties that are critical to delivering medical services. GMRE aims to provide a stable income stream for its investors by focusing on properties that are essential to the healthcare sector, thereby capitalizing on the growing demand for accessible medical care.

How the Company Makes Money

Global Medical REIT generates revenue primarily through lease agreements with healthcare providers who occupy its medical facilities. The company enters into long-term leases, often with built-in rent escalations, providing a stable and predictable income stream. Key revenue streams include rental income from these leases and potential additional revenue from property management services. GMRE may also benefit from partnerships with healthcare systems and providers, which can enhance its portfolio and occupancy rates. The company's focus on essential healthcare properties helps mitigate risks associated with economic downturns, as demand for medical services tends to remain stable regardless of broader economic conditions.

Global Medical REIT Financial Statement Overview

Summary

Global Medical REIT shows strong revenue growth and operational efficiency with high gross and EBIT margins. The balance sheet is stable with no debt, enhancing financial stability. However, low net profit and return on equity indicate room 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.

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.

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.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	137.96M	138.41M	140.93M	137.28M	115.94M	93.73M
Gross Profit	108.48M	109.16M	112.85M	112.09M	100.45M	82.86M
EBITDA	92.98M	91.47M	111.64M	96.49M	84.00M	53.00M
Net Income	7.94M	6.63M	20.61M	-5.23M	-2.07M	-20.61M
Balance Sheet
Total Assets	1.27B	1.26B	1.27B	1.39B	1.26B	1.10B
Cash, Cash Equivalents and Short-Term Investments	5.41M	6.82M	26.40M	4.02M	7.21M	5.51M
Total Debt	692.17M	653.59M	618.91M	694.12M	571.73M	586.58M
Total Liabilities	731.45M	700.57M	661.89M	744.20M	625.91M	643.15M
Stockholders Equity	517.35M	534.13M	583.58M	632.98M	622.78M	444.81M
Cash Flow
Free Cash Flow	16.16M	-25.07M	58.39M	-79.66M	-132.69M	-184.27M
Operating Cash Flow	68.03M	70.05M	68.44M	76.54M	68.97M	34.52M
Investing Cash Flow	-70.14M	-45.94M	67.62M	-137.25M	-194.66M	-223.67M
Financing Cash Flow	1.90M	-21.89M	-143.79M	62.41M	127.70M	192.72M

Global Medical REIT Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 7.55
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GMRE, the sentiment is Positive. The current price of 7.55 is above the 20-day moving average (MA) of 7.10, above the 50-day MA of 7.03, and above the 200-day MA of 7.35, indicating a bullish trend. The MACD of 0.19 indicates Negative momentum. The RSI at 65.08 is Neutral, neither overbought nor oversold. The STOCH value of 82.24 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for GMRE.

Global Medical REIT Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
STRW	72 Outperform	$157.73M	19.95	51.91%	4.53%	24.72%	30.05%
SILA	71 Outperform	$1.38B	35.15	2.71%	6.28%	0.43%	58.57%
GMRE	64 Neutral	$549.33M	109.36	1.94%	10.33%	0.90%	―
Sector *	63 Neutral	$7.02B	13.41	-0.50%	6.86%	4.08%	-25.24%
UHT	63 Neutral	$568.15M	31.31	10.08%	7.11%	0.14%	-0.76%
DHC	59 Neutral	$939.10M	―	-14.32%	0.97%	4.29%	18.89%
CHCT	54 Neutral	$441.10M	―	-2.22%	12.06%	2.96%	-877.53%

Global Medical REIT Corporate Events

Global Medical REIT Appoints New CEO Mark O. Decker

On June 20, 2025, Global Medical REIT announced the transition of Jeffrey M. Busch from his role as Chief Executive Officer and President, effective June 23, 2025. Mark O. Decker, Jr. was appointed as the new CEO and President, bringing extensive experience in real estate investment and management. This leadership change is part of the company’s strategic efforts to enhance shareholder value and guide portfolio management and growth initiatives.

Global Medical REIT Reduces Quarterly Dividend to $0.15

On May 28, 2025, Global Medical REIT announced a reduction in its quarterly cash dividend from $0.21 to $0.15 per share, effective for stockholders of record as of June 20, 2025, and payable on July 9, 2025. This strategic move aims to position the company for future growth by enhancing balance sheet flexibility and generating additional free cash flow to reduce leverage and improve capital costs, while ensuring a well-covered dividend for investors.