Global Medical REIT Inc. Annual report pursuant to Section 13 and 15(d)

Annual report pursuant to Section 13 and 15(d)

Property Portfolio (Tables)

Property Portfolio (Tables)

12 Months Ended

Dec. 31, 2018

Property, Plant and Equipment [Table Text Block]

A rollforward of the gross investment in land, building and improvements as of December 31, 2018, resulting from these acquisitions is as follows:

	Land			Building			Site & Tenant Improvements		Acquired Lease Intangibles		Gross Investment in Real Estate
Balances as of January 1, 2018	$	42,701		$	384,338		$	12,818	$	31,650	$	471,507
Facility Acquired – Date Acquired:
Moline / Silvis – 1/24/18		-			4,895			1,216		989		7,100
Freemont – 2/9/18		162			8,335			-		-		8,497
Gainesville – 2/23/18		625			9,885			-		-		10,510
Dallas – 3/1/18		6,272			17,012			-		-		23,284
Orlando – 3/22/18		2,543			11,720			756		1,395		16,414
Belpre – 4/19/18		3,025			50,526			3,966		7,166		64,683
McAllen – 7/3/18		1,099			4,296			-		-		5,395
Derby – 8/3/18		412			2,496			243		453		3,604
Bountiful – 10/12/18		720			4,185			-		-		4,905
Cincinnati – 10/30/18		1,745			1,336			553		492		4,126
Melbourne – 11/16/18		645			5,950			117		1,007		7,719
Southern IL – 11/30/18		1,830			12,660			-		-		14,490
Vernon – 12/19/18		1,166			9,929			-		-		11,095
Corona – 12/31/18		1,601			14,689			-		-		16,290
Tenant improvements (1)		-			-			2,568		-		2,568
Total Additions (2) :		21,845			157,914			9,419		11,502		200,680
Disposition of Great Bend – 12/20/18		(836	)		(23,801	)		-		-		(24,637	)
Balances as of December 31, 2018	$	63,710		$	518,451		$	22,237	$	43,152	$	647,550

(1)

Represents tenant improvements that were completed and placed in service during the year ended December 31, 2018 related to the Silvis and Sherman facilities that were acquired in January 2018 and June 2017, respectively. Of the $2,568, there were $2,535 of costs recorded as construction-in-process within the “Other Assets” line item in the Company’s Consolidated Balance Sheet when incurred and reclassified to investment in real estate once completed, and $33 of costs that were incurred and paid in cash and recorded directly as tenant improvements.

(2)

The Belpre, Southern IL, and Corona acquisitions included an aggregate of $16,362 of OP Units issued as part of the total consideration for those transactions. As indicated in footnote (1) above, $2,535 of completed construction-in-process costs were reclassified to investment in real estate during the year ended December 31, 2018. Additionally, an aggregate of $946 of intangible liabilities were acquired from the acquisitions that occurred during the year ended December 31, 2018. Accordingly, the total addition to gross investment in real estate funded with cash was $180,837.

A rollforward of the gross investment in land, building and improvements as of December 31, 2017, resulting from these acquisitions is as follows:

	Land		Building		Site & Tenant Improvements		Acquired Lease Intangibles		Gross Investment in Real Estate
Balances as of January 1, 2017	$	17,786	$	179,253	$	2,651	$	7,187	$	206,877
Facility Acquired – Date Acquired:
Cape Coral – 1/10/17		352		7,017		-		-		7,369
Lewisburg – 1/12/17		471		5,819		505		505		7,300
Las Cruces – 2/1/17		396		4,618		-		-		5,014
Prescott – 2/9/17		791		3,821		-		-		4,612
Clermont – 3/1/17		-		4,361		206		868		5,435
Sandusky – 3/10/17		409		3,998		-		-		4,407
Great Bend – 3/31/17		837		23,801		-		-		24,638
Oklahoma City – 3/31/17		2,087		37,714		1,876		7,823		49,500
Sandusky – 4/21/17		98		978		-		-		1,076
Brockport – 6/27/17		413		6,885		492		1,295		9,085
Flower Mound – 6/27/17		581		2,922		382		407		4,292
Sherman facility – 6/30/17		1,601		25,011		-		-		26,612
Sandusky facility – 8/15/17		56		1,215		-		-		1,271
Lubbock facility – 8/18/17		1,303		5,042		947		908		8,200
Germantown – 8/30/17		2,700		8,078		657		4,505		15,940
Austin – 9/25/17		6,958		28,508		1,373		3,811		40,650
Fort Worth – 11/10/17		1,487		3,334		643		786		6,250
Albertville – 11/10/17		866		3,486		1,246		1,202		6,800
Moline – 11/10/17		722		8,175		1,194		1,916		12,007
Lee’s Summit – 12/18/17		428		2,426		646		437		3,937
Amarillo – 12/20/17		1,437		7,254		-		-		8,691
Wyomissing – 12/21/17		487		5,250		-		-		5,737
Saint George – 12/22/17		435		5,372		-		-		5,807
Total Additions (1) :		24,915		205,085		10,167		24,463		264,630
Balances as of December 31, 2017	$	42,701	$	384,338	$	12,818	$	31,650	$	471,507

(1)

The Lubbock and Moline facility acquisitions included an aggregate of approximately $11,300 of OP Units issued as part of the total consideration. Additionally, an aggregate of $1,110 of intangible liabilities were acquired from the acquisitions that occurred during the year ended December 31, 2017, resulting in total gross investments funded using cash of $252,220

Schedule of Acquired Finite-Lived Intangible Assets by Major Class [Table Text Block]

The following is a summary of the carrying amount of intangible assets and liabilities as of December 31, 2018 and 2017:

	As of December 31, 2018
	Cost		Accumulated Amortization			Net
Assets
In-place leases	$	21,753	$	(4,037	)	$	17,716
Above market ground lease		707		(28	)		679
Above market leases		8,009		(1,096	)		6,913
Leasing costs		12,683		(1,703	)		10,980
	$	43,152	$	(6,864	)	$	36,288
Liability
Below market leases	$	2,336	$	(308	)	$	2,028

	As of December 31, 2017
	Cost		Accumulated Amortization			Net
Assets
In-place leases	$	17,061	$	(1,577	)	$	15,484
Above market ground lease		488		(6	)		482
Above market leases		4,625		(220	)		4,405
Leasing costs		9,476		(538	)		8,938
	$	31,650	$	(2,341	)	$	29,309
Liability
Below market leases	$	1,389	$	(98	)	$	1,291

Finite-lived Intangible Assets Amortization Expense [Table Text Block]

The following is a summary of the acquired lease intangible amortization:

	Year Ended December 31,
	2018			2017			2016
Amortization expense related to in-place leases	$	2,460		$	1,542		$	35
Amortization expense related to leasing costs	$	1,165		$	530		$	7
Decrease in rental revenue related to above market ground lease	$	22		$	6		$	-
Decrease in rental revenue related to above market leases	$	876		$	220		$	-
Increase in rental revenue related to below market leases	$	(210	)	$	(97	)	$	(1	)

Schedule of Finite-Lived Intangible Assets, Future Amortization Expense [Table Text Block]

Future aggregate net amortization of the acquired lease intangible assets and liabilities as of December 31, 2018, is as follows:

	Net Decrease in Revenue			Increase in Expense
2019	$	(772	)	$	3,885
2020		(721	)		3,831
2021		(724	)		3,217
2022		(725	)		2,908
2023		(703	)		2,626
Thereafter		(1,919	)		12,229
Total	$	(5,564	)	$	28,696

Business Acquisition, Pro Forma Information [Table Text Block]

The businesses acquired in 2017 and 2016 that were accounted for as business combinations were included in our results of operations from the dates of acquisition. The following table provides summary unaudited pro forma information as if the Company’s acquisitions during the years ended December 31, 2017 and 2016 that were accounted for as business combinations had occurred as of January 1, 2016:

	Year Ended December 31,
	2017		2016
	(unaudited)

Revenue	$	38,140	$	28,559
Net income (loss)	$	1,828	$	(1,191	)
Net income (loss) attributable to common stockholders	$	41	$	(1,191	)
Income (loss) attributable to common stockholders per share – basic and diluted	$	-	$	(0.13	)
Weighted average shares outstanding – basic and diluted	$	19,617	$	9,302

Silvis Facilities [Member]

Schedule of Recognized Identified Assets Acquired and Liabilities Assumed [Table Text Block]

The aggregate purchase price for the Moline/Silvis facilities was $6.9 million. The following table presents the details of the tangible and intangible assets acquired and liabilities assumed for this acquisition:

Site improvements	$	249
Building and tenant improvements		5,862
In-place leases		343
Above market ground lease intangibles		219
Leasing costs		427
Below market lease intangibles		(229	)
Total purchase price	$	6,871

Orlando Facilities [Member]

Schedule of Recognized Identified Assets Acquired and Liabilities Assumed [Table Text Block]

The following table presents the details of the tangible and intangible assets acquired and liabilities assumed:

Land and site improvements	$	3,075
Building and tenant improvements		11,944
In-place leases		808
Above market lease intangibles		229
Leasing costs		358
Below market lease intangibles		(10	)
Total purchase price	$	16,404

Belpre Portfolio [Member]

Schedule of Recognized Identified Assets Acquired and Liabilities Assumed [Table Text Block]

The following table presents the details of the tangible and intangible assets acquired and liabilities assumed:

Land and site improvements	$	3,997
Building and tenant improvements		53,520
In-place leases		2,660
Above market lease intangibles		2,527
Leasing costs		1,979
Below market lease intangibles		(632	)
Total purchase price	$	64,051

Derby Facility [Member]

Schedule of Recognized Identified Assets Acquired and Liabilities Assumed [Table Text Block]

The following table presents the details of the tangible and intangible assets acquired and liabilities assumed:

Land and site improvements	$	566
Building and tenant improvements		2,585
In-place leases		299
Leasing costs		154
Below market lease intangibles		(23	)
Total purchase price	$	3,581

Cincinnati Facility [Member]

Schedule of Recognized Identified Assets Acquired and Liabilities Assumed [Table Text Block]

The following table presents the details of the tangible and intangible assets acquired and liabilities assumed:

Land and site improvements	$	1,824
Building and tenant improvements		1,810
In-place leases		236
Above market lease intangibles		131
Leasing costs		125
Below market lease intangibles		(52	)
Total purchase price	$	4,074

Lewisburg facility [Member]

Schedule of Recognized Identified Assets Acquired and Liabilities Assumed [Table Text Block]