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Global Medical REIT (GMRE)
NYSE:GMRE
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Global Medical REIT
(NYSE:GMRE)
Rating:56Neutral
Price Target:
$6.50
▲(2.36%Upside)
Positive Factors
Acquisitions
The company completed acquisitions of properties at a favorable cap rate and conducted profitable dispositions, resulting in a gain.
Investments
The company concentrates its investments mostly in outpatient facilities, inpatient rehabilitation facilities and medical office buildings, which are essential services with steady demand.
Joint Venture
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.
Negative Factors
Dividend Payout
The dividend payout ratio is challenging at 113%, indicating potential financial strain.
Leverage
GMRE's leverage remains high with net debt+prefs/EBITDA of 7.8x, limiting financial flexibility.
Occupancy
The company's occupancy is down 80 basis points quarter-over-quarter.
Global Medical REIT (GMRE) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$460.65M
Dividend Yield13.23%
Average Volume (3M)686.16K
Price to Earnings (P/E)202.9
Beta (1Y)0.74
Revenue Growth-1.66%
EPS Growth-86.24%
CountryUS
Employees26
SectorReal Estate
Sector Strength70
IndustryREIT - Healthcare Facilities
Share Statistics
EPS (TTM)0.03
Shares Outstanding66,878,730
10 Day Avg. Volume624,854
30 Day Avg. Volume686,158
Financial Highlights & Ratios
PEG Ratio-6.97
Price to Book (P/B)0.82
Price to Sales (P/S)0.00
P/FCF Ratio26.15
Enterprise Value/Market Cap0.91
Enterprise Value/Revenue0.76
Enterprise Value/Gross Profit3.85
Enterprise Value/Ebitda1.15
Forecast
1Y Price Target
$9.13Price Target Upside43.78% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering7
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 makes money by acquiring healthcare real estate properties and leasing them to healthcare operators, such as hospitals, medical groups, and specialty care providers. The company's primary source of revenue is the rental income generated from these leases, which are typically structured as triple-net leases. This means that tenants are responsible for paying property taxes, insurance, and maintenance costs, providing GMRE with predictable and stable income streams. Additionally, GMRE may engage in property development or redevelopment projects to enhance the value of its portfolio. The company may also benefit from strategic partnerships and acquisitions that allow it to expand its portfolio and increase its rental income.
Global Medical REIT Earnings Call Summary
Earnings Call Date:May 07, 2025
(Q1-2025)
| % Change Since: -17.43%|
Next Earnings Date:Jul 30, 2025
Earnings Call Sentiment Neutral
The earnings call presented a mixed sentiment. While the company achieved strategic acquisitions and a significant increase in net income, it faced challenges such as decreased total revenues, the impact of Prospect Medical Group's bankruptcy, and a decline in FFO and AFFO. The ongoing CEO succession plan and successful property sales were positive aspects, but the negative elements balanced out the highlights.Q1-2025 Updates
Positive Updates
Strong Portfolio Performance
Portfolio occupancy was 95.6% with a weighted average lease term of 5.6 years and a portfolio average rent coverage ratio of 4.4x.
Net Income Increase
Net income attributable to common shareholders increased to $2.1 million or $0.03 per share from $800,000 or $0.01 per share in the first quarter of 2024.
Strategic Acquisitions
Closed a five-property portfolio acquisition for $69.6 million at a 9% cap rate, significantly below replacement cost, demonstrating strategic alignment and growth.
Successful Dispositions
Completed the sale of two medical properties, generating aggregate gross proceeds of $8.2 million with an aggregate gain of $1.4 million.
CEO Succession Plan Progress
The transition plan for a new CEO is on track, with a candidate expected to be in place by June 30, 2025.
Negative Updates
Decrease in Total Revenues
Total revenues decreased by approximately 1.4% compared to the prior year quarter, totaling $34.6 million.
Prospect Medical Group Bankruptcy
Prospect Medical Group filed for Chapter 11 bankruptcy, impacting leases related to three healthcare facilities, with $2.4 million of outstanding lease payments.
Decline in FFO and AFFO
FFO attributable to common shareholders and non-controlling interest was $0.20 per share and unit, down $0.01 from the prior year quarter. AFFO was $0.22 per share and unit, also down $0.01 from the prior year quarter.
Higher Operating Expenses
Operating expenses for the first quarter of 2025 were $7.6 million compared to $7.4 million in the prior year quarter.
Company Guidance
During the Global Medical REIT first quarter 2025 earnings call, the company provided several key metrics and guidance for the fiscal year. Portfolio occupancy was reported at 95.6% with a weighted average lease term of 5.6 years and an average rent coverage ratio of 4.4x. Net income attributable to common shareholders was $2.1 million, or $0.03 per share, compared to $800,000, or $0.01 per share, in the same quarter the previous year. The Funds from Operations (FFO) per share and unit was $0.20, while Adjusted Funds from Operations (AFFO) was $0.22 per share and unit, both marking a $0.01 decrease from the prior year. The company's 2025 guidance reaffirmed an AFFO per share and unit range of $0.89 to $0.93, with no assumptions for additional acquisitions or dispositions beyond what has been completed or announced. Additionally, the guidance excludes one-time expenses related to the CEO succession plan. The company completed the acquisition of a five-property portfolio for $69.6 million at a 9% cap rate and disposed of two medical properties for $8.2 million, resulting in a $1.4 million gain. Future plans include carefully considering further acquisition opportunities while maintaining leverage within a targeted range of 40% to 45%.Global Medical REIT Financial Statement Overview
Summary
Global Medical REIT shows strong revenue growth with high gross profit and EBIT margins, indicating operational efficiency. However, low net profit margin and return on equity suggest profitability challenges. The balance sheet is stable with no debt, and cash flow is strong, enhancing liquidity.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 | |||||
| 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 | EBIT |
| 33.09M | 32.68M | 37.86M | 38.83M | 37.12M | 16.55M | EBITDA |
| 92.98M | 91.47M | 111.64M | 96.49M | 84.00M | 53.00M | Net Income Common Stockholders |
| 7.94M | 6.63M | 20.61M | -5.23M | -2.07M | -20.61M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | ||||
| 1.84M | 6.82M | 26.40M | 4.02M | 7.21M | 5.51M | Total Assets |
| 656.69M | 1.26B | 1.27B | 1.39B | 1.26B | 1.10B | Total Debt |
| 258.64M | 653.59M | 618.91M | 694.12M | 571.73M | 586.58M | Net Debt |
| 256.80M | 646.78M | 616.80M | 690.10M | 564.52M | 581.07M | Total Liabilities |
| 286.13M | 700.57M | 661.89M | 744.20M | 625.91M | 643.15M | Stockholders Equity |
| 340.22M | 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
Neutral
6.35
Price Trends
6.91
Negative
7.57
Negative
8.00
Negative
Market Momentum
-0.18
Negative
41.23
Neutral
32.78
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GMRE, the sentiment is Neutral. The current price of 6.35 is above the 20-day moving average (MA) of 6.31, below the 50-day MA of 6.91, and below the 200-day MA of 8.00, indicating a neutral trend. The MACD of -0.18 indicates Negative momentum. The RSI at 41.23 is Neutral, neither overbought nor oversold. The STOCH value of 32.78 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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 (61)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
69 Neutral | $570.82M | 30.49 | 10.15% | 7.13% | 0.95% | 15.07% | |
68 Neutral | $890.22M | ― | -13.96% | 1.08% | 5.33% | 10.68% | |
68 Neutral | $473.52M | ― | -1.67% | 11.20% | 1.33% | -149.80% | |
68 Neutral | $135.03M | 18.41 | 36.40% | 5.07% | 22.41% | 37.88% | |
66 Neutral | $1.33B | 38.04 | 2.46% | 6.65% | -2.94% | 46.24% | |
61 Neutral | $2.84B | 10.85 | 0.42% | 9.90% | 5.94% | -21.26% | |
56 Neutral | $460.65M | 202.88 | 1.45% | 13.23% | -1.66% | -86.24% |
* Real Estate Sector Average
Performance Comparison
GMRE
Global Medical REIT
6.35
-1.85
-22.56%
DHC
Diversified Healthcare Trust
3.69
1.11
43.02%
CHCT
Community Healthcare
16.79
-4.09
-19.59%
UHT
Universal Health Realty Income
41.21
4.62
12.63%
STRW
Strawberry Fields REIT Inc
11.04
0.56
5.34%
SILA
Sila Realty Trust, Inc.
24.05
4.22
21.28%
Global Medical REIT Corporate Events
DividendsBusiness Operations and Strategy
Global Medical REIT Reduces Quarterly Dividend to $0.15
Negative
May 28, 2025
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.
The most recent analyst rating on (GMRE) stock is a Buy with a $11.75 price target. To see the full list of analyst forecasts on Global Medical REIT stock, see the GMRE Stock Forecast page.
Executive/Board ChangesShareholder MeetingsBusiness Operations and Strategy
Global Medical REIT Holds Annual Stockholder Meeting
Neutral
May 15, 2025
On May 14, 2025, Global Medical REIT Inc. conducted its annual meeting where stockholders elected seven directors to the board, approved executive compensation, and ratified Deloitte & Touche LLP as the accounting firm for 2025. These decisions reflect the company’s ongoing governance and operational strategies, potentially impacting its market positioning and stakeholder confidence.
The most recent analyst rating on (GMRE) stock is a Buy with a $11.75 price target. To see the full list of analyst forecasts on Global Medical REIT stock, see the GMRE Stock Forecast page.
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
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.