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Global Medical REIT (GMRE)
NYSE:GMRE
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Global Medical REIT
(NYSE:GMRE)
Rating:57Neutral
Price Target:
$7.00
▲( 11.64% 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 Ventures
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
Capital Markets
Analyst remains at a Market Perform rating as capital markets remain a challenge for the company.
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.
Global Medical REIT (GMRE) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$479.51M
Dividend Yield12.71%
Average Volume (3M)605.72K
Price to Earnings (P/E)211.2
Beta (1Y)0.70
Revenue Growth-1.66%
EPS Growth-86.24%
CountryUS
Employees26
SectorReal Estate
Sector Strength56
IndustryREIT - Healthcare Facilities
Share Statistics
EPS (TTM)0.03
Shares Outstanding66,878,730
10 Day Avg. Volume716,085
30 Day Avg. Volume605,720
Financial Highlights & Ratios
PEG Ratio2.77
Price to Book (P/B)0.85
Price to Sales (P/S)0.00
P/FCF Ratio28.19
Enterprise Value/Market Cap2.30
Enterprise Value/Revenue1.90
Enterprise Value/Gross Profit10.64
Enterprise Value/Ebitda2.78
Forecast
1Y Price Target
$10.04Price Target Upside60.13% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering8
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 shows strong revenue growth and operational efficiency with high gross and EBIT margins. The balance sheet is robust with a solid equity base and no recent debt, enhancing stability. Strong cash flow generation is evident, but profitability is hampered by low net profit and return on equity.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 | |||
| 138.41M | 140.93M | 137.28M | 115.94M | 93.73M | Gross Profit |
| 109.16M | 54.72M | 112.09M | 100.45M | 82.86M | EBIT |
| 32.68M | 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 | |||
| -25.07M | 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
6.27
Price Trends
7.71
Negative
7.81
Negative
8.22
Negative
Market Momentum
-0.33
Positive
23.64
Positive
5.88
Positive
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 6.27 is below the 20-day moving average (MA) of 7.24, below the 50-day MA of 7.71, and below the 200-day MA of 8.22, indicating a bearish trend. The MACD of -0.33 indicates Positive momentum. The RSI at 23.64 is Positive, neither overbought nor oversold. The STOCH value of 5.88 is Positive, 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 3 New Risks
1.
Interest rate swaps related to our $350 million term loan ("Term Loan A") are set to expire in April 2026. If we enter into new interest rate swaps to hedge the interest rate risk related to Term Loan A, the swap rate for any new interest rate swaps may be significantly higher than our current swaps, which could cause a material increase in our borrowing costs, which could, among other things, increase our cost of capital and decrease our earnings, liquidity, cash available to make distributions to our stockholders and the trading price of our common and preferred stock. Q4, 2024
2.
Our use of joint ventures may limit our returns on and our flexibility with jointly owned investments. Q4, 2024
3.
Artificial intelligence and other machine learning techniques could increase competitive, operational, legal and regulatory risks to our business in ways that we cannot predict. Q4, 2024
Global Medical REIT Peers Comparison
Overall Rating
UnderperformOutperform
Sector (60)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
71 Outperform | $1.43B | 40.93 | 2.39% | 4.59% | -1.88% | 46.76% | |
66 Neutral | $551.01M | 29.44 | 10.15% | 7.42% | 0.95% | 15.07% | |
64 Neutral | $470.41M | ― | -1.67% | 11.17% | 1.33% | -149.80% | |
60 Neutral | $2.82B | 10.38 | 0.33% | 8508.19% | 5.98% | -17.49% | |
58 Neutral | $788.89M | ― | -13.96% | 1.22% | 5.33% | 10.68% | |
57 Neutral | $479.51M | 211.18 | 1.45% | 12.71% | -1.66% | -86.24% | |
53 Neutral | $131.17M | 17.89 | 36.40% | 5.12% | 22.41% | 37.88% |
* Real Estate Sector Average
Performance Comparison
GMRE
Global Medical REIT
6.27
-1.60
-20.33%
DHC
Diversified Healthcare Trust
3.14
0.88
38.94%
CHCT
Community Healthcare
16.07
-4.58
-22.18%
UHT
Universal Health Realty Income
38.36
4.07
11.87%
STRW
Strawberry Fields REIT Inc
10.20
0.57
5.92%
SILA
Sila Realty Trust, Inc.
24.95
8.07
47.81%
Global Medical REIT Earnings Call Summary
Earnings Call Date:May 07, 2025
(Q1-2025)
| % Change Since: -18.47%|
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 Corporate Events
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
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.