THIRD QUARTER 2023 EARNINGS SUPPLEMENTAL www.globalmedicalreit.com NYSE: GMRE Atrium Health – Winston - Salem, NC
Forward - Looking Statements Certain statements contained herein may be considered “forward - looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995 , and it is the Company’s intent that any such statements be protected by the safe harbor created thereby . These forward - looking statements are identified by their use of terms and phrases such as "anticipate," "believe," "could," "estimate," "expect," "intend," "may," "should," "plan," "predict," "project," "will," "continue" and other similar terms and phrases, including references to assumptions and forecasts of future results . Except for historical information, the statements set forth herein including, but not limited to, any statements regarding our earnings, our liquidity, our tenants’ ability to pay rent to us, expected financial performance (including future cash flows associated with new tenants or the expansion of current properties), future dividends or other financial items ; any other statements concerning our plans, strategies, objectives and expectations for future operations and future portfolio occupancy rates, our pipeline of acquisition opportunities and expected acquisition activity, including the timing and/or successful completion of any acquisitions and expected rent receipts on these properties, our expected disposition activity, including the timing and/or successful completion of any dispositions and the expected use of proceeds therefrom, and any statements regarding future economic conditions or performance are forward - looking statements . These forward - looking statements are based on our current expectations, estimates and assumptions and are subject to certain risks and uncertainties . Although the Company believes that the expectations, estimates and assumptions reflected in its forward - looking statements are reasonable, actual results could differ materially from those projected or assumed in any of the Company’s forward - looking statements . Additional information concerning us and our business, including additional factors that could materially and adversely affect our financial results, include, without limitation, the risks described under Part I, Item 1 A - Risk Factors, in our Annual Report on Form 10 - K, our Quarterly Reports on Form 10 - Q, and in our other filings with the SEC . You are cautioned not to place undue reliance on forward - looking statements . The Company does not intend, and undertakes no obligation, to update any forward - looking statement . TABLE OF CONTENTS Company Overview 3 Select Quarterly Financial Data 6 Business Summary 7 Portfolio Summary 8 Key Tenants/Portfolio Lease Expiration Schedule 11 Debt and Hedging Summary 12 Total Capitalization and Equity Summary 14 ESG Summary 15 Condensed Consolidated Statements of Operations 16 Condensed Consolidated Balance Sheets 17 Condensed Consolidated Statements of Cash Flows 18 Non - GAAP Reconciliations 19 Reporting Definitions and Other Disclosures 20 Legent Hospital for Special Surgery – Plano, TX 3Q - 2023 | Earnings Supplemental 2
3 3Q - 2023 | Earnings Supplemental COMPANY OVERVIEW GLOBAL MEDICAL REIT INC. (GMRE) IS A NET - LEASE MEDICAL OFFICE REAL ESTATE INVESTMENT TRUST (REIT) THAT OWNS AND ACQUIRES HEALTHCARE FACILITIES AND LEASES THOSE FACILITIES TO PHYSICIAN GROUPS AND REGIONAL AND NATIONAL HEALTHCARE SYSTEMS. PORTFOLIO SNAPSHOT (as of September 30, 2023) Blue Sky Vision – Grand Rapids, MI Gross Investment in Real Estate (billions): $1.4 Number of Buildings: 185 Number of States: 34 Weighted Average Portfolio Cap Rate: 7.9% % of Health System or Other Affiliated Tenants: 89% Weighted Average Lease Term (years): 5.7 Leased Occupancy: 96.7% Portfolio Rent Coverage: 4.2x
3Q - 2023 | Earnings Supplemental 4 Jeffrey Busch Chairman, Chief Executive Officer and President Robert Kiernan Chief Financial Officer and Treasurer Alfonzo Leon Chief Investment Officer Danica Holley Chief Operating Officer Jamie Barber General Counsel and Corporate Secretary Board of Directors Jeffrey Busch Chairman, Chief Executive Officer and President Henry Cole Lead Independent Director, Compensation Committee Chair, Audit Committee Member Paula Crowley Audit Committee Member, ESG Committee Member, Compensation Committee Member Matthew Cypher, Ph.D. ESG Committee Chair, Nominating and Corporate Governance Committee Member Ronald Marston Nominating and Corporate Governance Committee Chair, Compensation Committee Member Lori Wittman Audit Committee Chair, Nominating and Corporate Governance Committee Member, ESG Committee Member Zhang Huiqi Director INDEPENDENT DIRECTORS 71% BOARD % OF WOMEN AND HISTORICALLY UNDERREPRESENTED MINORITIES COMPANY OVERVIEW 43% Executive Officers
3Q - 2023 | Earnings Supplemental 5 COMPANY OVERVIEW Corporate Headquarters Global Medical REIT Inc. 7373 Wisconsin Avenue, Suite 800 Bethesda, MD 20814 Phone: 202.524.6851 www.globalmedicalreit.com Stock Exchange New York Stock Exchange Ticker: GMRE Investor Relations Stephen Swett Phone: 203.682.8377 Email: firstname.lastname@example.org Independent Registered Public Accounting Firm Deloitte & Touche LLP McLean, VA Corporate and REIT Tax Counsel Vinson & Elkins LLP Daniel LeBey , Corporate Partner Christopher Mangin , REIT Tax Partner Transfer Agent American Stock Transfer & Trust Company Phone: 800.937.5449 Cobalt Rehabilitation Hospital – Surprise, AZ Firm Name Baird Wes Golladay BMO Juan Sanabria B. Riley Securities Bryan Maher Colliers Securities Barry Oxford Compass Point Merrill Ross JMP Securities Aaron Hecht Janney Robert Stevenson KeyBanc Austin Wurschmidt Stifel Stephen Manaker Sell - Side Analyst Coverage
3Q - 2023 | Earnings Supplemental *See page 19 for Non - GAAP reconciliations 6 (unaudited, and in thousands, except per share and unit amounts) SELECT QUARTERLY FINANCIAL DATA September 30, June 30, March 31, December 31, September 30, As of Period End (Unless Otherwise Specified) 2023 2023 2023 2022 2022 Market capitalization (common and OP) $608,247 $619,096 $612,165 $636,914 $572,416 Market price per share – common $8.97 $9.13 $9.11 $9.48 $8.52 Common shares and OP units outstanding 67,809 67,809 67,197 67,185 67,185 Preferred equity $74,959 $74,959 $74,959 $74,959 $74,959 Common equity $536,488 $544,599 $537,795 $558,025 $573,707 Noncontrolling interest $22,201 $21,834 $15,721 $16,081 $15,918 Total equity $633,648 $641,392 $628,475 $649,065 $664,584 Investment in real estate, gross $1,425,006 $1,431,369 $1,481,273 $1,484,177 $1,482,492 Borrowings: Credit facility - revolver, gross $68,400 $76,143 $143,500 $145,700 $144,700 Credit facility - term loan A, gross $350,000 $350,000 $350,000 $350,000 $350,000 Credit facility - term loan B, gross $150,000 $150,000 $150,000 $150,000 $150,000 Notes payable, gross $57,160 $57,496 $57,780 $58,124 $58,409 Weighted average interest rate (for quarter) 3.98% 4.09% 4.27% 4.07% 3.65% Debt covenants: Leverage ratio (as defined in Credit Facility) 44.2% 44.5% 47.4% 47.6% 47.6% Fixed charge coverage ratio for quarter (1.50x minimum) 2.76 2.80 2.88 3.15 3.41 September 30, June 30, March 31, December 31, September 30, Three Months Ended 2023 2023 2023 2022 2022 Rental revenue $35,487 $36,317 $36,199 $36,290 $35,347 Interest expense $7,170 $8,468 $8,271 $8,064 $6,963 G&A expenses $4,367 $4,462 $3,804 $4,051 $3,961 Depreciation and amortization expense $14,195 $14,805 $14,889 $15,093 $14,415 Operating expenses $7,231 $7,223 $7,536 $7,138 $6,679 Total expenses $32,963 $34,960 $34,542 $34,458 $32,130 Gain on sale of investment properties $2,289 $12,786 $485 - $6,753 Net income attributable to common stockholders $3,138 $11,820 $673 $369 $8,057 Net income per share $0.05 $0.18 $0.01 $0.01 $0.12 Wtd. avg. basic and diluted common shares (GAAP) 65,565 65,544 65,525 65,518 65,518 FFO* $15,250 $14,710 $15,094 $15,457 $16,208 FFO per share and unit* $0.22 $0.21 $0.22 $0.22 $0.23 AFFO* $16,541 $15,868 $15,953 $16,522 $17,133 AFFO per share and unit* $0.23 $0.23 $0.23 $0.24 $0.25 Wtd. avg. common shares, OP and LTIP units 70,566 70,434 69,830 69,725 69,725
3Q - 2023 | Earnings Supplemental 7 THIRD QUARTER 2023 OPERATING SUMMARY • Net income attributable to common stockholders was $3.1 million, or $0.05 per diluted share, as compared to $8.1 million, or $0.12 per diluted share, in the comparable prior year period. • Funds from Operations (“FFO”) of $15.3 million, or $0.22 per share and unit, as compared to $16.2 million, or $0.23 per share and unit, in the comparable prior year period. • Adjusted Funds from Operations (“AFFO”) of $16.5 million, or $0.23 per share and unit, as compared to $17.1 million, or $0.25 per share and unit, in the comparable prior year period. • Total revenue increased slightly to $35.5 million as compared to $35.4 million in the comparable prior year period. COMMON AND PREFERRED DIVIDENDS • On September 8, 2023, the Board of Directors (the “Board”) declared a: • $0.21 per share cash dividend to common stockholders and unitholders of record as of September 22, 2023, which was paid on October 10, 2023; and • $0.46875 per share cash dividend to holders of record as of October 15, 2023, of the Company’s Series A Preferred Stock, which was paid on October 31, 2023. INVESTMENT ACTIVITY • In August 2023, sold a MOB in North Charleston, South Carolina, receiving gross proceeds of $10.1 million and resulting in a gain of $2.3 million. CAPITAL MARKETS AND DEBT ACTIVITY • Leverage was 44.2 % as of September 30 , 2023. • As of November 6, 2023, we had unutilized borrowing capacity under the Credit Facility of $318 million. • We did not issue any shares of common stock under our ATM program during the third quarter of 2023 or from October 1, 2023 through November 6, 2023. BUSINESS SUMMARY
3Q - 2023 | Earnings Supplemental 8 PORTFOLIO SUMMARY (as of September 30, 2023) PORTFOLIO STATISTICS TENANT COMPOSITION * See page 21 for disclosures regarding the Company’s rent coverage calculation Texas Digestive Disease Consultants – Ft. Worth, TX Indiana Eye Clinic – Greenwood, IN Gross Investment in Real Estate (in billions) $1.4 Total Buildings 185 Total Leasable Square Feet (in millions) 4.7 Total Tenants 268 Leased Occupancy 96.7% Total Annualized Base Rent (ABR) (in millions) $111.4 Portfolio Rent Coverage* 4.2x Weighted Average Cap Rate 7.9% Weighted Average Lease Term (years) 5.7 Weighted Average Rent Escalations 2.1% % of ABR Not-for-profit healthcare system 33% For-profit healthcare system 29% Other affiliated healthcare groups 27% Total 89%
3Q - 2023 | Earnings Supplemental 9 PORTFOLIO SUMMARY (as of September 30, 2023) LEASE TYPE RENT COVERAGE* * See page 21 for disclosures regarding the Company’s rent coverage calculation 1) Includes surgical hospitals, long - term acute care hospitals (LTACH) and behavioral hospitals. cCare – San Marcos, CA Hialeah Medical Plaza – Hialeah, FL % of ABR Triple-net 54% Absolute-net 37% Modified gross 7% Gross 2% Asset Type % of ABR Ratio MOB 16% 5.7x MOB/ASC 13% 4.1x Inpatient Rehab (IRF) 17% 3.5x Specialty Hospital (1) 6% 2.4x Total/Weighted Average 52% 4.2x Tenants Not Included Large/Credit Rated Tenants 32% N/A Not Reported 16% N/A
3Q - 2023 | Earnings Supplemental 10 PORTFOLIO SUMMARY (as of September 30, 2023) Mercy Rehab Hospital – Oklahoma City, OK MOB 70% IRF 18% Surgical Hospital 4% Other 8% BUILDING TYPE BY ABR TX 18% FL 10% OH 8% PA 7% AZ 6% IL 6% All Others 45% LOCATION BY ABR Multi - Speciality 37% IRF 18% Opthamology 7% Oncology 4% Gastro 4% All Others 30% SPECIALTY BY ABR Health System 35% Physician Clinic 32% Post - Acute Care 21% Physician Surgical 7% All Others 5% PROVIDER TYPE BY ABR
3Q - 2023 | Earnings Supplemental 11 KEY TENANTS/PORTFOLIO LEASE EXPIRATION SCHEDULE Asset Type % of Portfolio ABR LifePoint Health operates 62 community hospital campuses,morethan50rehabilitationandbehavioral healthhospitalsandmorethan200additionalsitesof care, including managed acute rehabilitation units, outpatient centers and post-acute care facilities. IRF 6.9% Encompass Health (NYSE: EHC) is the largest owner and operator of inpatient rehabilitation hospitals in the United States, with a national footprint that includes 153 hospitals in 36 states and Puerto Rico. IRF 6.6% MHS is the largest health system in the Parkersburg- Marietta-ViennaMSAanddelivershealthcareservicesin southeast Ohio. MHS operates the 199-bed Marietta MemorialHospitalandtwocriticalaccesshospitals,nine outpatient care centers, 26 medical staff offices, and clinical care delivery locations. MOB 5.0% BasedinCharlotte,NorthCarolina,andformedfromthe combination of Advocate Aurora Health and Atrium Health,Advocateservesnearly6millionpatientsannually andisthefifth-largestnonprofitintegratedhealthsystem in the nation. With revenues of more than $27 billion, the newlycombinedorganizationcomprisesmorethan1,000 sites of care and 67 hospitals. MOB 3.7% TrinityHealthisoneofthelargestnot-for-profit,Catholic healthcaresystemsinthenation,with88hospitals,135 continuing care locations, the second largest PACE programinthecountry,136urgentcarelocationsand many other health and well-being services. MOB 3.2% Leasable % of Total Leasable % of Total Year # of Leases Square Feet Square Feet ABR ABR 2023 21 71,990 1.5% $1,004 0.9% 2024 72 709,252 14.9% $15,958 14.3% 2025 50 404,440 8.5% $9,517 8.5% 2026 66 510,874 10.8% $11,159 10.0% 2027 43 462,083 9.7% $12,106 10.9% 2028 29 322,774 6.8% $8,383 7.5% 2029 23 471,454 9.9% $11,511 10.3% 2030 28 398,927 8.4% $9,868 8.9% 2031 15 307,239 6.5% $6,843 6.1% 2032 7 80,310 1.7% $2,510 2.3% Thereafter 43 850,369 17.9% $22,556 20.2% Total Leased SF 397 4,589,712 96.7% $111,415 100.0% Current Vacancy 157,624 3.3% Total Leasable SF 4,747,336 100.0% Lease Expiration Schedule (ABR in thousands)
3Q - 2023 | Earnings Supplemental 12 DEBT AND HEDGING SUMMARY (1) Credit spread of 1.35% is based on the Company’s overall leverage ratio (as defined in the credit facility agreement) being b etw een 40% and 45% at the end of the third quarter of 2023. Pursuant to the credit facility agreement, at each reporting date the credit spread wi ll increase or decrease based on the Company’s overall leverage ratio. In addition to the credit spread we also pay 10 bps related to the transition fro m LIBOR to secured overnight financing rate (SOFR). The Revolver has two Company - controlled, six - month extension options. If the Company exercise s those options, the maturity date of the Revolver would be August 2027. (2) Rates reflect the effect of the Company’s interest rate swaps. See table on next page for a detailed descriptions of the Com pan y’s interest rate swaps. Consists of the fixed base rate plus a credit spread of 1.30% based on a leverage ratio of between 40% and 45 % under our credit facility agreement, plus 10 bps related to the transition from LIBOR to SOFR and is calculated using 365/360 method. Debt Balance Rate Type Interest Rate Maturity (in thousands) Unsecured Credit Facility: Revolver: $68,400 Floating SOFR + 1.35% (1) 8/1/2026 (1) Term Loan A: $350,000 Fixed 2.95% (2) May-26 Term Loan B: $150,000 Fixed 4.00% (2) February-28 Other: Cantor Loan: $31,018 Fixed 5.22% April-26 Rosedale Loan: $13,663 Fixed 3.85% July-25 Dumfries Loan: $11,111 Fixed 4.68% June-24 Toledo Loan: $1,368 Fixed 5.00% July-33 Total/Weighted Average: $625,560 3.78% 3.1 years Debt Detail (as of September 30, 2023) Fixed 89% Floating 11% FIXED AND FLOATING RATE DEBT Debt Statistics As of September 30, 2023 Total Gross Debt (in thousands): $625,560 Fixed Rate Debt-to-Total Debt: 89% Weighted Average Interest Rate 3.78% Weighted Average Maturity (Years): 3.1 Leverage Ratio 44.2% Fixed Charge Coverage Ratio 2.76
3Q - 2023 | Earnings Supplemental 13 DEBT AND HEDGING SUMMARY (1) Consists of a total of ten current interest rates swaps and three forward starting interest rate swaps whereby we pay (or wil l p ay) the fixed base rate listed in the table above and receive the one - month SOFR, which is the reference rate for the outstanding loans in our credit fa cility. (2) Consists of the fixed base rate plus a credit spread of 1.30% based on a leverage ratio of between 40% and 45% under our cred it facility agreement, plus 10 bps related to the transition from LIBOR to SOFR and is calculated using 365/360 method. Citrus Valley Medical Associates – Corona, CA Notional Term Term Loan A - $350,000 current – 8/2024 Fixed base rate: 1.50% Effective interest rate: 2.95% (2) 8/2024 – 4/2026 Fixed base rate: 1.36% Effective interest rate: 2.80% (2) Term Loan B - $150,000 Current – 2/2028 Fixed base rate: 2.54% Effective interest rate: 4.00% (2) Interest Rate Swap Detail (as of September 30, 2023) (1) Weighted Average Interest Rates
3Q - 2023 | Earnings Supplemental 14 TOTAL CAPITALIZATION AND EQUITY SUMMARY (unaudited, and in thousands, except per share data) (1) Based on the closing price of the Company’s common stock on September 30, 2023, of $8.97 per share. (2) LTIPs are issued as equity compensation to the Company’s directors and employees and, as such, have no capital value associated to them. (1) Calculated by dividing the aggregate dividends received for the trailing four quarters by the Company’s closing stock price o n September 30, 2023 of $8.97 per share. Total Capitalization As of September 30, 2023 Total Debt $625,560 Preferred Stock $74,959 Common Stock (1) $588,118 OP Units (2,244 units) (1) $20,129 Vested LTIP Units (2,270 units) (2) $— Total Capitalization $1,308,766 $608,247 $74,959 $625,560 $0 $200,000 $400,000 $600,000 $800,000 $1,000,000 $1,200,000 $1,400,000 Total Capitalization Common Stock, OP Units and LTIP Units Preferred Stock Total Debt Stock Shares Dividend Rate/Yield Liquidation Preference Optional Redemption Period Series A Cumulative Preferred Stock, $0.001 par value per share 3,105 7.50% $25 per share Began on 9/15/2022 Common Stock, $0.001 par value per share 65,565 9.36% (1) N/A N/A Equity Detail Record Date Payment Date Dividend (per share) 1/15/2023 1/31/2023 $0.46875 4/15/2023 5/1/2023 $0.46875 7/15/2023 7/31/2023 $0.46875 10/15/2023 10/31/2023 $0.46875 Total: $1.87500 Preferred Dividends Record Date Payment Date Dividend (per share) 12/22/2022 1/9/2023 $0.21 3/24/2023 4/11/2023 $0.21 6/23/2023 7/11/2023 $0.21 9/22/2023 10/10/2023 $0.21 Total: $0.84 Common Dividends
3Q - 2023 | Earnings Supplemental 15 ESG SUMMARY We take climate change and the risks associated with climate change seriously — both physical and transitional . We utilized Moody’s 427 Risk Management platform to help us identify and measure the potential climate risk exposure for our properties . The analysis summarizes the climate change - related risks, groups them by onset potential, and identifies opportunities for risk mitigation . We utilize the ENERGY STAR platform to collect and track our energy consumption data and have identified properties that are strong candidates for the ENERGY STAR certificate program . In 2022 , we earned an ENERGY STAR certification for our Select Medical facility in Omaha, Nebraska, which scored 99 , and for our Brown Clinic facility in Watertown, South Dakota, which attained a score of 84 . We prioritize energy efficiency and sustainability when evaluating investment opportunities . We utilize utility and energy audits that are performed by third - party engineering consultants during the due diligence phase of our acquisitions . The energy consumption data that we collect is used to assess our facilities’ carbon emission levels . We improved our overall GRESB score from 46 in 2022 to 54 for 2023 . The scores reflect activity for the previous year . Since we began receiving a GRESB Assessment score in 2021 , we have improved our score by 12 points . In the 2023 GRESB public disclosure assessment, GMRE ranked 4 th of 10 in peer group . Fostering a resilient posture is essential to our business and we continue to explore methods to assess our climate - related risks and mitigate the impacts . For example, according to the 2023 GRESB assessment report for the risk management sector, GMRE received a score of 4 . 25 / 5 while the benchmark score was 3 . 97 / 5 . In the performance sector of the Risk Assessment, GMRE received a score of 6 . 46 / 9 while the benchmark average was 5 . 66 / 9 . In the second quarter we published our 2022 corporate sustainability report, which can be found at https : //www . globalmedicalreit . com/about/corporate - responsibility/ . ENVIRONMENTAL SOCIAL Our Board continues to lead our social and governance efforts . With its diverse composition, our Board is a strong example of inclusive leadership with a composition of 43 % women and individuals from underrepresented groups . • Our Board has been recognized by “Women on Boards” and our executive team reflects our demographically diverse staff . • Our commitment to employee engagement remains a high - priority, as we continue to make accommodations for health, safety, and work - life balance . With this commitment in mind, and with the compensation committee of the Board’s leadership, we conducted an employee survey that covered a comprehensive range of subjects related to our employees’ attitudes about our work culture, compensation components, as well as demographic and identification data . GOVERNANCE • The Board formed a standing ESG committee that oversees the Company’s environmental, social, governance and resilience efforts . • GMRE is a member of the National Association of Corporate Directors .
3Q - 2023 | Earnings Supplemental 16 CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (unaudited, and in thousands, except per share amounts) 2023 2022 2023 2022 Revenue Rental revenue $35,487 $35,347 $108,003 $100,877 Other income 20 59 85 100 Total revenue 35,507 35,406 108,088 100,977 Expenses General and administrative 4,367 3,961 12,633 12,494 Operating expenses 7,231 6,679 21,989 18,050 Depreciation expense 10,100 10,128 31,062 29,428 Amortization expense 4,095 4,287 12,828 12,202 Interest expense 7,170 6,963 23,909 17,166 Preacquisition expense — 112 44 242 Total expenses 32,963 32,130 102,465 89,582 Income before gain on sale of investment properties 2,544 3,276 5,623 11,395 Gain on sale of investment properties 2,289 6,753 15,560 6,753 Net income $4,833 $10,029 $21,183 $18,148 Less: Preferred stock dividends (1,455) (1,455) (4,366) (4,366) Less: Net income attributable to noncontrolling interest (240) (517) (1,187) (830) Net income attributable to common stockholders $3,138 $8,057 $15,630 $12,952 Net income attributable to common stockholders per share - basic and diluted $0.05 $0.12 $0.24 $0.20 Weighted average shares outstanding – basic and diluted 65,565 65,518 65,545 65,443 Three Months Ended September 30, Nine Months Ended September 30,
3Q - 2023 | Earnings Supplemental 17 CONDENSED CONSOLIDATED BALANCE SHEETS (unaudited, and in thousands) September 30, 2023 December 31, 2022 Assets Investment in real estate: June 30, 2023+B5:B22 Land $164,315 $168,308 Building 1,034,822 1,079,781 Site improvements 21,480 22,024 Tenant improvements 65,772 65,987 Acquired lease intangible assets 138,617 148,077 1,425,006 1,484,177 Less: accumulated depreciation and amortization (232,518) (198,218) Investment in real estate, net 1,192,488 1,285,959 Cash and cash equivalents 1,281 4,016 Restricted cash 6,331 10,439 Tenant receivables, net 7,527 8,040 Due from related parties 289 200 Escrow deposits 9,861 7,833 Deferred assets 26,748 29,616 Derivative asset 38,379 34,705 Goodwill 5,903 5,903 Other assets 13,713 6,550 Total assets $1,302,520 $1,393,261 Liabilities and Equity Liabilities: Credit Facility, net $560,783 $636,447 Notes payable, net 56,823 57,672 Accounts payable and accrued expenses 13,300 13,819 Dividends payable 16,055 15,821 Security deposits 3,913 5,461 Other liabilities 12,138 7,363 Acquired lease intangible liability, net 5,860 7,613 Total liabilities 668,872 744,196 Equity: Preferred stock ($77,625 liquidation preference) 74,959 74,959 Common stock 66 66 Additional paid-in capital 722,418 721,991 Accumulated deficit (224,375) (198,706) Accumulated other comprehensive income 38,379 34,674 Total Global Medical REIT Inc. stockholders' equity 611,447 632,984 Noncontrolling interest 22,201 16,081 Total equity 633,648 649,065 Total liabilities and equity $1,302,520 $1,393,261 As of
3Q - 2023 | Earnings Supplemental 18 CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (unaudited, and in thousands) 2023 2022 Operating activities Net income $21,183 $18,148 Adjustments to reconcile net income to net cash provided by operating activities: Depreciation expense 31,062 29,428 Amortization of acquired lease intangible assets 12,718 12,136 Amortization of above market leases, net 812 735 Amortization of debt issuance costs and other 1,795 1,600 Stock-based compensation expense 3,020 3,615 Capitalized preacquisition and other costs charged to expense 155 344 Gain on sale of investment properties (15,560) (6,753) Other 285 68 Changes in operating assets and liabilities: Tenant receivables 513 (1,312) Deferred assets (2,478) (3,390) Other assets and liabilities (787) (810) Accounts payable and accrued expenses (855) 3,560 Security deposits (1,548) 864 Net cash provided by operating activities 50,315 58,233 Investing activities Purchase of land, buildings, and other tangible and intangible assets and liabilities (442) (150,592) Net proceeds from sale of investment properties 77,929 17,889 Escrow deposits for purchase of properties — (302) Advances made to related parties (89) (174) Payment received on loan made to a tenant — 1,000 Capital expenditures on existing real estate investments (5,778) (3,663) Leasing Commissions (890) — Net cash provided by (used in) investing activities 70,730 (135,842) Financing activities Net proceeds received from common equity offerings — 9,979 Escrow deposits required by third party lenders (1,038) (1,401) Repayment of notes payable (964) (873) Proceeds from Credit Facility 38,100 127,100 Repayment of Credit Facility (115,400) (5,000) Payment of debt issuance costs (13) (3,215) Dividends paid to common stockholders, and OP Unit and LTIP Unit holders (44,207) (43,779) Dividends paid to preferred stockholders (4,366) (4,366) Net cash (used in) provided by financing activities (127,888) 78,445 Net (decrease) increase in cash and cash equivalents and restricted cash (6,843) 836 Cash and cash equivalents and restricted cash—beginning of period 14,455 12,759 Cash and cash equivalents and restricted cash—end of period $7,612 $13,595 Nine Months Ended September 30,
3Q - 2023 | Earnings Supplemental 19 NON - GAAP RECONCILIATIONS (unaudited, and in thousands, except per share and unit amounts) *See page 20 and 21 for definitions of FFO, AFFO, EBITDAre and Adjusted EBITDAre SEP 30, JUN 30, MAR 31, DEC 31, SEP 30, FFO and AFFO 2023 2023 2023 2022 2022 Net income $4,833 $14,177 $2,173 $1,848 $10,029 Less: Preferred stock dividends (1,455) (1,455) (1,455) (1,455) (1,455) Depreciation and amortization expense 14,161 14,774 14,861 15,064 14,387 Gain on sale of investment properties (2,289) (12,786) (485) — (6,753) FFO $15,250 $14,710 $15,094 $15,457 $16,208 Amortization of above market leases, net 234 287 291 292 221 Straight line deferred rental revenue (721) (879) (763) (1,006) (1,018) Stock-based compensation expense 1,185 1,147 688 1,066 1,039 Amortization of debt issuance costs and other 593 601 601 601 571 Preacquisition expense — 2 42 112 112 AFFO $16,541 $15,868 $15,953 $16,522 $17,133 Net income attributable to common stockholders per share – basic and diluted $0.05 $0.18 $0.01 $0.01 $0.12 FFO per share and unit $0.22 $0.21 $0.22 $0.22 $0.23 AFFO per share and unit $0.23 $0.23 $0.23 $0.24 $0.25 Wtd Average Common Shares, OP and LTIP Units outstanding: Common shares 65,565 65,544 65,525 65,518 65,518 OP units 2,244 2,134 1,667 1,668 1,668 LTIP units 2,757 2,747 2,638 2,539 2,539 Wtd Average Common Shares, OP and LTIP Units Outstanding - basic and diluted 70,566 70,434 69,830 69,725 69,725 SEP 30, JUN 30, MAR 31, DEC 31, SEP 30, EBITDAre and Adjusted EBITDAre 2023 2023 2023 2022 2022 Net income $4,833 $14,177 $2,173 $1,848 $10,029 Interest expense 7,170 8,468 8,271 8,064 6,963 Depreciation and amortization expense 14,195 14,805 14,889 15,093 14,415 Gain on sale of investment properties (2,289) (12,786) (485) — (6,753) EBITDAre $23,909 $24,664 $24,848 $25,005 $24,654 Stock-based compensation expense 1,185 1,147 688 1,066 1,039 Amortization of above market leases, net 234 287 291 292 221 Preacquisition expense — 2 42 112 112 Adjusted EBITDAre $25,328 $26,100 $25,869 $26,475 $26,026 Three Months Ended Three Months Ended
3Q - 2023 | Earnings Supplemental 20 REPORTING DEFINITIONS AND OTHER DISCLOSURES Annualized Base Rent Annualized base rent represents monthly base rent for September 2023, multiplied by 12 (or base rent net of annualized expenses for properties with gross leases). Accordingly, this methodology produces an annualized amount as of a point in time but does not take into account future ( i ) contractual rental rate increases, (ii) leasing activity or (iii) lease expirations. Additionally, leases that are accounted for on a cash - collected basis are not included in annualized base rent. Capitalization Rate The capitalization rate (“Cap Rate”) for an acquisition is calculated by dividing current Annualized Base Rent by contractual purchase price. For the portfolio capitalization rate, certain adjustments, including for subsequent capital invested, are made to the contractual purchase price. Earnings Before Interest, Taxes, Depreciation and Amortization for Real Estate (“ EBITDAre ” and “Adjusted EBITDAre ”) We calculate EBITDAre in accordance with standards established by NAREIT and define EBITDAre as net income or loss computed in accordance with GAAP plus depreciation and amortization, interest expense, gain or loss on the sale of investment properties, and impairment loss, as applicable. We define Adjusted EBITDAre as EBITDAre plus non - cash stock compensation expense, non - cash intangible amortization related to above and below market leases, preacquisition expense and other normalizing items. Management considers EBITDAre and Adjusted EBITDAre important measures because they provide additional information to allow management, investors, and our current and potential creditors to evaluate and compare our core operating results and our ability to service debt. Funds from Operations and Adjusted Funds from Operations Funds from operations (“FFO”) and adjusted funds from operations (“AFFO”) are non - GAAP financial measures within the meaning of the rules of the SEC. The Company considers FFO and AFFO to be important supplemental measures of its operating performance and believes FFO is frequently used by securities analysts, investors, and other interested parties in the evaluation of REITs, many of which present FFO when reporting their results. In accordance with the National Association of Real Estate Investment Trusts’ (“NAREIT”) definition, FFO means net income or loss computed in accordance with GAAP before noncontrolling interests of holders of OP units and LTIP units, excluding gains (or losses) from sales of property and extraordinary items, less preferred stock dividends, plus real estate - related depreciation and amortization (excluding amortization of debt issuance costs and the amortization of above and below market leases), and after adjustments for unconsolidated partnerships and joint ventures. Because FFO excludes real estate - related depreciation and amortization (other than amortization of debt issuance costs and above and below market lease amortization expense), the Company believes that FFO provides a performance measure that, when compared period - over - period, reflects the impact to operations from trends in occupancy rates, rental rates, operating costs, development activities and interest costs, providing perspective not immediately apparent from the closest GAAP measurement, net income or loss. AFFO is a non - GAAP measure used by many investors and analysts to measure a real estate company’s operating performance by removing the effect of items that do not reflect ongoing property operations. Management calculates AFFO by modifying the NAREIT computation of FFO by adjusting it for certain cash and non - cash items and certain recurring and non - recurring items. For the Company these items include recurring acquisition and disposition costs, loss on the extinguishment of debt, recurring straight line deferred rental revenue, recurring stock - based compensation expense, recurring amortization of above and below market leases, recurring amortization of debt issuance costs, recurring lease commissions, and other items. Management believes that reporting AFFO in addition to FFO is a useful supplemental measure for the investment community to use when evaluating the operating performance of the Company on a comparative basis.
3Q - 2023 | Earnings Supplemental 21 REPORTING DEFINITIONS AND OTHER DISCLOSURES Rent Coverage Ratio For purposes of calculating our portfolio weighted - average EBITDARM coverage ratio (“Rent Coverage Ratio”), we excluded credit - rated tenants or their subsidiaries for which financial statements were either not available or not sufficiently detailed. These ratios are based on the latest available information only. Most tenant financial statements are unaudited and we have not independently verified any tenant financial information (audited or unaudited) and, therefore, we cannot assure you that such information is accurate or complete. Certain other tenants (approximately 16% of our portfolio) are excluded from the calculation due to (i) lack of available financial information or (ii) small tenant size. Additionally, included within 16% of non - reporting tenants is Pipeline Healthcare, LLC, which was sold to Heights Healthcare in October 2023 and is being operated under new management. Additionally, our Rent Coverage Ratio adds back physician distributions and compensation. Management believes all adjustments are reasonable and necessary. Other Disclosures Non - GAAP Financial Measures Management considers certain non - GAAP financial measures to be useful supplemental measures of the Company's operating performance. For the Company, non - GAAP measures consist of EBITDAre , Adjusted EBITDAre , FFO and AFFO. A non - GAAP financial measure is generally defined as one that purports to measure financial performance, financial position or cash flows, but excludes or includes amounts that would not be so adjusted in the most comparable measure determined in accordance with GAAP. The Company reports non - GAAP financial measures because these measures are observed by management to also be among the most predominant measures used by the REIT industry and by industry analysts to evaluate REITs. For these reasons, management deems it appropriate to disclose and discuss these non - GAAP financial measures. The non - GAAP financial measures presented herein are not necessarily identical to those presented by other real estate companies due to the fact that not all real estate companies use the same definitions. These measures should not be considered as alternatives to net income, as indicators of the Company's financial performance, or as alternatives to cash flow from operating activities as measures of the Company's liquidity, nor are these measures necessarily indicative of sufficient cash flow to fund all of the Company's needs. Management believes that in order to facilitate a clear understanding of the Company's historical consolidated operating results, these measures should be examined in conjunction with net income and cash flows from operations as presented elsewhere herein. Additional Information The information in this document should be read in conjunction with the Company’s Annual Report on Form 10 - K, Quarterly Reports on Form 10 - Q, Current Reports on Form 8 - K, and other information filed with, or furnished to, the SEC. You can access the Company’s reports and amendments to those reports filed or furnished to the SEC pursuant to Section 13(a) or 15(d) of the Exchange Act in the “Investor Relations” section on the Company’s website (www.globalmedicalreit.com) under “SEC Filings” as soon as reasonably practicable after they are filed with, or furnished to, the SEC. The information on or connected to the Company’s website is not, and shall not be deemed to be, a part of, or incorporated into, this Earnings Supplemental. You also can review these SEC filings and other information by accessing the SEC’s website at http://www.sec.gov . Certain information contained in this package, including, but not limited to, information contained in our Top 10 tenant profiles is derived from publicly - available third - party sources. The Company has not independently verified this information and there can be no assurance that such information is accurate or complete.
INVESTOR RELATIONS globalmedicalreit.com NYSE: GMRE Stephen Swett 203.682.8377 email@example.com