UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, DC 20549
FORM
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
For the quarterly period ended
or
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
For the transition period from ___________ to ___________.
Commission file number:
(Exact name of registrant as specified in its charter)
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(State or other jurisdiction of incorporation or |
| (I.R.S. Employer Identification No.) |
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(Address of principal executive offices) |
| (Zip Code) |
Registrant’s telephone number, including area code: ( |
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N/A |
(Former name, former address and former fiscal year, if changed since last report) |
Securities registered pursuant to Section 12(b) of the Act:
Title of each class: |
| Trading Symbol(s): |
| Name of each exchange on which registered: |
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Indicate by check mark whether the registrant: (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. þ
Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.
þ | Accelerated filer | ☐ | |
Non-accelerated filer | ☐ | Smaller reporting company | |
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| Emerging growth company |
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act ◻
Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes
Indicate the number of shares outstanding of each of the issuer’s classes of common stock, as of the latest practicable date.
The number of shares of the registrant’s common stock outstanding at August 5, 2024 was
TABLE OF CONTENTS
PART I FINANCIAL INFORMATION
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GLOBAL MEDICAL REIT INC.
Condensed Consolidated Balance Sheets
(unaudited and in thousands, except par values)
As of | |||||||
| June 30, 2024 |
| December 31, 2023 |
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Assets | |||||||
Investment in real estate: | |||||||
Land | $ | | $ | | |||
Building |
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Site improvements |
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Tenant improvements |
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Acquired lease intangible assets |
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Less: accumulated depreciation and amortization |
| ( |
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Investment in real estate, net |
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Cash and cash equivalents |
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Restricted cash |
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Tenant receivables, net |
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Due from related parties | | | |||||
Escrow deposits |
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Deferred assets |
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Derivative asset | | | |||||
Goodwill | | | |||||
Other assets |
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Total assets | $ | | $ | | |||
Liabilities and Equity | |||||||
Liabilities: | |||||||
Credit Facility, net of unamortized debt issuance costs of $ | $ | | $ | | |||
Notes payable, net of unamortized debt issuance costs of $ |
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Accounts payable and accrued expenses |
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Dividends payable |
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Security deposits |
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Other liabilities |
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Acquired lease intangible liability, net |
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Total liabilities |
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Commitments and Contingencies | |||||||
Equity: | |||||||
Preferred stock, $ |
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Common stock, $ |
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Additional paid-in capital |
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Accumulated deficit |
| ( |
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Accumulated other comprehensive income |
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Total Global Medical REIT Inc. stockholders' equity |
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Noncontrolling interest |
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Total equity |
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Total liabilities and equity | $ | | $ | |
The accompanying notes are an integral part of these unaudited condensed consolidated financial statements.
-3-
GLOBAL MEDICAL REIT INC.
Condensed Consolidated Statements of Operations
(unaudited and in thousands, except per share amounts)
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||
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| 2024 |
| 2023 |
| 2024 |
| 2023 |
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Revenue | |||||||||||||
Rental revenue | $ | | $ | | $ | | $ | | |||||
Other income |
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Total revenue |
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Expenses | |||||||||||||
General and administrative |
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Operating expenses |
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Depreciation expense |
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Amortization expense |
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Interest expense |
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Preacquisition expense |
| — | | — | | ||||||||
Total expenses |
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Income before (loss) gain on sale of investment properties | | | | | |||||||||
(Loss) gain on sale of investment properties | ( | | ( | | |||||||||
Net (loss) income | $ | ( | $ | | $ | | $ | | |||||
Less: Preferred stock dividends |
| ( | ( | ( | ( | ||||||||
Less: Net loss (income) attributable to noncontrolling interest |
| | ( | | ( | ||||||||
Net (loss) income attributable to common stockholders | $ | ( | $ | | $ | ( | $ | | |||||
Net (loss) income attributable to common stockholders per share – basic and diluted | $ | ( | $ | | ( | | |||||||
Weighted average shares outstanding – basic and diluted |
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The accompanying notes are an integral part of these unaudited condensed consolidated financial statements.
-4-
GLOBAL MEDICAL REIT INC.
Condensed Consolidated Statements of Comprehensive (Loss) Income
(unaudited and in thousands)
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||
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| 2024 |
| 2023 |
| 2024 |
| 2023 |
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Net (loss) income | $ | ( | $ | | $ | | $ | | |||||
Other comprehensive (loss) income : | |||||||||||||
(Decrease) increase in fair value of interest rate swap agreements |
| ( |
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Total other comprehensive (loss) income |
| ( |
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Comprehensive (loss) income |
| ( |
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Less: Preferred stock dividends |
| ( |
| ( |
| ( | ( | ||||||
Less: Comprehensive loss (income) attributable to noncontrolling interest |
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| ( |
| | ( | ||||||
Comprehensive (loss) income attributable to common stockholders | $ | ( | $ | | $ | ( | $ | |
The accompanying notes are an integral part of these unaudited condensed consolidated financial statements.
-5-
GLOBAL MEDICAL REIT INC.
Condensed Consolidated Statements of Equity
(unaudited and in thousands, except per share amounts)
For the Six Months Ended June 30, 2024:
Global | ||||||||||||||||||||||||||||
Accumulated | Medical | |||||||||||||||||||||||||||
Additional | Other | REIT Inc. | Non- | |||||||||||||||||||||||||
Common Stock | Preferred Stock | Paid-in | Accumulated | Comprehensive | Stockholders’ | controlling | Total | |||||||||||||||||||||
| Shares |
| Amount |
| Shares |
| Amount |
| Capital |
| Deficit |
| Income |
| Equity |
| Interest |
| Equity | |||||||||
Balances, December 31, 2023 |
| | $ | |
| | $ | | $ | | $ | ( | $ | | $ | | $ | | $ | | ||||||||
Net income (loss) |
| — |
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| — |
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| ( |
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LTIP Units redeemed for common stock | | — | — | — | | — | — | | ( | — | ||||||||||||||||||
Change in fair value of interest rate swap agreements |
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Stock-based compensation expense |
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Dividends to common stockholders ($ |
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| ( |
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| ( |
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Dividends to preferred stockholders ($ |
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| ( |
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Dividends to noncontrolling interest |
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| ( |
| ( | ||||||||
Balances, June 30, 2024 |
| | $ | |
| | $ | | $ | | $ | ( | $ | | $ | | $ | | $ | |
For the Three Months Ended June 30, 2024:
Global | ||||||||||||||||||||||||||||
Accumulated | Medical | |||||||||||||||||||||||||||
Additional | Other | REIT Inc. | Non- | |||||||||||||||||||||||||
Common Stock | Preferred Stock | Paid-in | Accumulated | Comprehensive | Stockholders’ | controlling | Total | |||||||||||||||||||||
| Shares |
| Amount |
| Shares |
| Amount |
| Capital |
| Deficit |
| Income |
| Equity |
| Interest |
| Equity | |||||||||
Balances, March 31, 2024 |
| | $ | |
| | $ | | $ | | $ | ( | $ | | $ | | $ | | $ | | ||||||||
Net loss |
| — |
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| — |
| — |
| — |
| ( |
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| ( |
| ( |
| ( | ||||||||
LTIP Units redeemed for common stock | | — | — | — | | — | — | | ( | — | ||||||||||||||||||
Change in fair value of interest rate swap agreements | — | — | — | — | — | — | ( | ( | — | ( | ||||||||||||||||||
Stock-based compensation expense |
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Dividends to common stockholders ($ |
| — |
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| — |
| — |
| — |
| ( |
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| ( |
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| ( | ||||||||
Dividends to preferred stockholders ($ |
| — |
| — |
| — |
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| ( |
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| ( |
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| ( | ||||||||
Dividends to noncontrolling interest |
| — |
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| — |
| — |
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| — |
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| ( |
| ( | ||||||||
Balances, June 30, 2024 |
| | $ | |
| | $ | | $ | | $ | ( | $ | | $ | | $ | | $ | |
The accompanying notes are an integral part of these unaudited condensed consolidated financial statements.
-6-
GLOBAL MEDICAL REIT INC.
Condensed Consolidated Statements of Equity - Continued
(unaudited and in thousands, except per share amounts)
For the Six Months Ended June 30, 2023:
Global | ||||||||||||||||||||||||||||
Accumulated | Medical | |||||||||||||||||||||||||||
Additional | Other | REIT Inc. | Non- | |||||||||||||||||||||||||
Common Stock | Preferred Stock | Paid-in | Accumulated | Comprehensive | Stockholders’ | controlling | Total | |||||||||||||||||||||
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| Shares |
| Amount |
| Shares |
| Amount |
| Capital |
| Deficit |
| Income |
| Equity |
| Interest |
| Equity | ||||||||
Balances, December 31, 2022 | | $ | |
| | $ | | $ | | $ | ( | $ | | $ | | $ | | $ | | |||||||||
Net income |
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LTIP Units redeemed for common stock | | — | — | — | | — | — | | ( | — | ||||||||||||||||||
OP Units issued for a property acquisition | — | — | — | — | — | — | — | — | | | ||||||||||||||||||
Change in fair value of interest rate swap agreements |
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Stock-based compensation expense |
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Dividends to common stockholders ($ |
| — |
| — |
| — |
| — |
| — |
| ( |
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| ( |
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| ( | ||||||||
Dividends to preferred stockholders ($ |
| — |
| — |
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| ( |
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| ( |
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| ( | ||||||||
Dividends to noncontrolling interest |
| — |
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| ( |
| ( | ||||||||
Balances, June 30, 2023 |
| | $ | |
| | $ | | $ | | $ | ( | $ | | $ | | $ | | $ | |
For the Three Months Ended June 30, 2023:
Global | ||||||||||||||||||||||||||||
Accumulated | Medical | |||||||||||||||||||||||||||
Additional | Other | REIT Inc. | Non- | |||||||||||||||||||||||||
Common Stock | Preferred Stock | Paid-in | Accumulated | Comprehensive | Stockholders’ | controlling | Total | |||||||||||||||||||||
| Shares |
| Amount |
| Shares |
| Amount |
| Capital |
| Deficit |
| Income |
| Equity |
| Interest |
| Equity | |||||||||
Balances, March 31, 2023 |
| | $ | |
| | $ | | $ | | $ | ( | $ | | $ | | $ | | $ | | ||||||||
Net income |
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LTIP Units redeemed for common stock | | — | — | — | | — | — | | ( | — | ||||||||||||||||||
OP Units issued for a property acquisition | — | — | — | — | — | — | — | — | | | ||||||||||||||||||
Change in fair value of interest rate swap agreements | — | — | — | — | — | — | | | — | | ||||||||||||||||||
Stock-based compensation expense |
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Dividends to common stockholders ($ |
| — |
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| — |
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| — |
| ( |
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| ( |
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| ( | ||||||||
Dividends to preferred stockholders ($ |
| — |
| — |
| — |
| — |
| — |
| ( |
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| ( |
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| ( | ||||||||
Dividends to noncontrolling interest |
| — |
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| — |
| — |
| — |
| — |
| — |
| — |
| ( |
| ( | ||||||||
Balances, June 30, 2023 |
| | $ | |
| | $ | | $ | | $ | ( | $ | | $ | | $ | | $ | |
The accompanying notes are an integral part of these unaudited condensed consolidated financial statements.
-7-
GLOBAL MEDICAL REIT INC.
Condensed Consolidated Statements of Cash Flows
(unaudited and in thousands)
Six Months Ended June 30, | |||||||
|
| 2024 |
| 2023 |
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Operating activities | |||||||
Net income | $ | | $ | | |||
Adjustments to reconcile net income to net cash provided by operating activities: | |||||||
Depreciation expense |
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Amortization of acquired lease intangible assets |
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Amortization of above market leases, net |
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Amortization of debt issuance costs and other |
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Stock-based compensation expense |
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Capitalized preacquisition and other costs charged to expense | | | |||||
Reserve for uncollectible accounts, net | | — | |||||
Loss (gain) on sale of investment properties |