UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, DC 20549

FORM 10-Q


☑	QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended September 30, 2024


☐	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: 001-37815

Global Medical REIT Inc.

(Exact name of registrant as specified in its charter)


Maryland		46-4757266
(State or other jurisdiction of incorporation or organization)		(I.R.S. Employer Identification No.)

7373 Wisconsin Avenue, Suite 800 Bethesda, MD		20814
(Address of principal executive offices)		(Zip Code)

Registrant’s telephone number, including area code: (202) 524-6851

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:
Common Stock, par value $0.001 per share	GMRE	NYSE
Series A Preferred Stock, par value $0.001 per share	GMRE PrA	NYSE

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 Yes ◻ No

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). Yes þ No ◻

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.


Large accelerated filer	þ	Accelerated filer	☐
Non-accelerated filer	☐	Smaller reporting company	☐
		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 ☐ No ☑

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 November 5, 2024 was 66,803,348

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GLOBAL MEDICAL REIT INC.

Condensed Consolidated Balance Sheets

(unaudited and in thousands, except par values)


	As of
	September 30, 2024		December 31, 2023
Assets
Investment in real estate:
Land	$	168,110	$	164,315
Building		1,041,006		1,035,705
Site improvements		22,946		21,974
Tenant improvements		66,933		66,358
Acquired lease intangible assets		137,886		138,617
		1,436,881		1,426,969
Less: accumulated depreciation and amortization		(283,941)		(247,503)
Investment in real estate, net		1,152,940		1,179,466
Cash and cash equivalents		5,723		1,278
Restricted cash		2,066		5,446
Tenant receivables, net		8,122		6,762
Due from related parties		404		193
Escrow deposits		1,694		673
Deferred assets		27,685		27,132
Derivative asset		14,967		25,125
Goodwill		5,903		5,903
Other assets		23,091		15,722
Total assets	$	1,242,595	$	1,267,700

Liabilities and Equity
Liabilities:
Credit Facility, net of unamortized debt issuance costs of $5,418 and $7,067 at September 30, 2024 and December 31, 2023, respectively	$	614,382	$	585,333
Notes payable, net of unamortized debt issuance costs of $31 and $66 at September 30, 2024 and December 31, 2023, respectively		14,493		25,899
Accounts payable and accrued expenses		13,350		12,781
Dividends payable		16,534		16,134
Security deposits		3,222		3,688
Other liabilities		12,370		12,770
Acquired lease intangible liability, net		3,638		5,281
Total liabilities		677,989		661,886
Commitments and Contingencies
Equity:
Preferred stock, $0.001 par value, 10,000 shares authorized; 3,105 issued and outstanding at September 30, 2024 and December 31, 2023, respectively (liquidation preference of $77,625 at September 30, 2024 and December 31, 2023, respectively)		74,959		74,959
Common stock, $0.001 par value, 500,000 shares authorized; 66,803 shares and 65,565 shares issued and outstanding at September 30, 2024 and December 31, 2023, respectively		67		66
Additional paid-in capital		733,626		722,418
Accumulated deficit		(281,067)		(238,984)
Accumulated other comprehensive income		14,967		25,125
Total Global Medical REIT Inc. stockholders' equity		542,552		583,584
Noncontrolling interest		22,054		22,230
Total equity		564,606		605,814
Total liabilities and equity	$	1,242,595	$	1,267,700

The accompanying notes are an integral part of these unaudited condensed consolidated financial statements.

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GLOBAL MEDICAL REIT INC.

Condensed Consolidated Statements of Operations

(unaudited and in thousands, except per share amounts)


	Three Months Ended September 30,				Nine Months Ended September 30,
	2024		2023		2024		2023

Revenue
Rental revenue	$	34,175	$	35,487	$	103,458	$	108,003
Other income		89		20		166		85
Total revenue		34,264		35,507		103,624		108,088

Expenses
General and administrative		4,381		4,367		13,416		12,633
Operating expenses		7,437		7,231		22,056		21,989
Depreciation expense		9,993		10,100		30,233		31,062
Amortization expense		3,649		4,095		11,487		12,828
Interest expense		7,236		7,170		21,119		23,909
Preacquisition expense		—		—		—		44
Total expenses		32,696		32,963		98,311		102,465

Income before gain (loss) on sale of investment properties		1,568		2,544		5,313		5,623
Gain (loss) on sale of investment properties		1,823		2,289		(1,560)		15,560

Net income	$	3,391	$	4,833	$	3,753	$	21,183
Less: Preferred stock dividends		(1,455)		(1,455)		(4,366)		(4,366)
Less: Net (income) loss attributable to noncontrolling interest		(145)		(240)		50		(1,187)
Net income (loss) attributable to common stockholders	$	1,791	$	3,138	$	(563)	$	15,630

Net income (loss) attributable to common stockholders per share – basic and diluted	$	0.03	$	0.05	$	(0.01)	$	0.24

Weighted average shares outstanding – basic and diluted		65,737		65,565		65,633		65,545

The accompanying notes are an integral part of these unaudited condensed consolidated financial statements.

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GLOBAL MEDICAL REIT INC.

Condensed Consolidated Statements of Comprehensive (Loss) Income

(unaudited and in thousands)


	Three Months Ended September 30,				Nine Months Ended September 30,
	2024		2023		2024		2023

Net income	$	3,391	$	4,833	$	3,753	$	21,183
Other comprehensive (loss) income :
(Decrease) increase in fair value of interest rate swap agreements		(12,705)		2,520		(10,158)		3,705
Total other comprehensive (loss) income		(12,705)		2,520		(10,158)		3,705
Comprehensive (loss) income		(9,314)		7,353		(6,405)		24,888
Less: Preferred stock dividends		(1,455)		(1,455)		(4,366)		(4,366)
Less: Comprehensive loss (income) attributable to noncontrolling interest		807		(418)		817		(1,440)
Comprehensive (loss) income attributable to common stockholders	$	(9,962)	$	5,480	$	(9,954)	$	19,082

The accompanying notes are an integral part of these unaudited condensed consolidated financial statements.

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GLOBAL MEDICAL REIT INC.

Condensed Consolidated Statements of Equity

(unaudited and in thousands, except per share amounts)

For the Nine Months Ended September 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	65,565	$	66	3,105	$	74,959	$	722,418	$	(238,984)	$	25,125	$	583,584	$	22,230	$	605,814
Net income (loss)	—		—	—		—		—		3,803		—		3,803		(50)		3,753
Issuance of shares of common stock, net	1,204		1	—		—		10,895		—		—		10,896		—		10,896
LTIP Units redeemed for common stock	34		—	—		—		313		—		—		313		(313)		—
Change in fair value of interest rate swap agreements	—		—	—		—		—		—		(10,158)		(10,158)		—		(10,158)
Stock-based compensation expense	—		—	—		—		—		—		—		—		3,826		3,826
Dividends to common stockholders ($0.63 per share)	—		—	—		—		—		(41,520)		—		(41,520)		—		(41,520)
Dividends to preferred stockholders ($1.40625 per share)	—		—	—		—		—		(4,366)		—		(4,366)		—		(4,366)
Dividends to noncontrolling interest	—		—	—		—		—		—		—		—		(3,639)		(3,639)
Balances, September 30, 2024	66,803	$	67	3,105	$	74,959	$	733,626	$	(281,067)	$	14,967	$	542,552	$	22,054	$	564,606

For the Three Months Ended September 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, June 30, 2024	65,588	$	66	3,105	$	74,959	$	722,627	$	(268,885)	$	27,672	$	556,439	$	21,933	$	578,372
Net income	—		—	—		—		—		3,246		—		3,246		145		3,391
Issuance of shares of common stock, net	1,204		1	—		—		10,895		—		—		10,896		—		10,896
LTIP Units redeemed for common stock	11		—	—		—		104		—		—		104		(104)		—
Change in fair value of interest rate swap agreements	—		—	—		—		—		—		(12,705)		(12,705)		—		(12,705)
Stock-based compensation expense	—		—	—		—		—		—		—		—		1,274		1,274
Dividends to common stockholders ($0.21 per share)	—		—	—		—		—		(13,973)		—		(13,973)		—		(13,973)
Dividends to preferred stockholders ($0.46875 per share)	—		—	—		—		—		(1,455)		—		(1,455)		—		(1,455)
Dividends to noncontrolling interest	—		—	—		—		—		—		—		—		(1,194)		(1,194)
Balances, September 30, 2024	66,803	$	67	3,105	$	74,959	$	733,626	$	(281,067)	$	14,967	$	542,552	$	22,054	$	564,606

The accompanying notes are an integral part of these unaudited condensed consolidated financial statements.

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GLOBAL MEDICAL REIT INC.

Condensed Consolidated Statements of Equity - Continued

(unaudited and in thousands, except per share amounts)

For the Nine Months Ended September 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, December 31, 2022	65,518	$	66	3,105	$	74,959	$	721,991	$	(198,706)	$	34,674	$	632,984	$	16,081	$	649,065
Net income	—		—	—		—		—		19,996		—		19,996		1,187		21,183
LTIP Units redeemed for common stock	47		—	—		—		427		—		—		427		(427)		—
OP Units issued for a property acquisition	—		—	—		—		—		—		—		—		5,482		5,482
Change in fair value of interest rate swap agreements	—		—	—		—		—		—		3,705		3,705		—		3,705
Stock-based compensation expense	—		—	—		—		—		—		—		—		3,020		3,020
Dividends to common stockholders ($0.63 per share)	—		—	—		—		—		(41,299)		—		(41,299)		—		(41,299)
Dividends to preferred stockholders ($1.40625 per share)	—		—	—		—		—		(4,366)		—		(4,366)		—		(4,366)
Dividends to noncontrolling interest	—		—	—		—		—		—		—		—		(3,142)		(3,142)
Balances, September 30, 2023	65,565	$	66	3,105	$	74,959	$	722,418	$	(224,375)	$	38,379	$	611,447	$	22,201	$	633,648

For the Three Months Ended September 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, June 30, 2023	65,565	$	66	3,105	$	74,959	$	722,418	$	(213,744)	$	35,859	$	619,558	$	21,834	$	641,392
Net income	—		—	—		—		—		4,593		—		4,593		240		4,833
Change in fair value of interest rate swap agreements	—		—	—		—		—		—		2,520		2,520		—		2,520
Stock-based compensation expense	—		—	—		—		—		—		—		—		1,185		1,185
Dividends to common stockholders ($0.21 per share)	—		—	—		—		—		(13,769)		—		(13,769)		—		(13,769)
Dividends to preferred stockholders ($0.46875 per share)	—		—	—		—		—		(1,455)		—		(1,455)		—		(1,455)
Dividends to noncontrolling interest	—		—	—		—		—		—		—		—		(1,058)		(1,058)
Balances, September 30, 2023	65,565	$	66	3,105	$	74,959	$	722,418	$	(224,375)	$	38,379	$	611,447	$	22,201	$	633,648




Item 1.	Financial Statements (Unaudited)
	Condensed Consolidated Balance Sheets – September 30, 2024 and December 31, 2023	3
	Condensed Consolidated Statements of Operations – Three and Nine Months Ended September 30, 2024 and 2023	4
	Condensed Consolidated Statements of Comprehensive (Loss) Income – Three and Nine Months Ended September 30, 2024 and 2023	5
	Condensed Consolidated Statements of Equity – Three and Nine Months Ended September 30, 2024 and 2023	6
	Condensed Consolidated Statements of Cash Flows – Nine Months Ended September 30, 2024 and 2023	8
	Notes to the Unaudited Condensed Consolidated Financial Statements	9

Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	25

Item 3.	Quantitative and Qualitative Disclosures About Market Risk	40

Item 4.	Controls and Procedures	41

PART II OTHER INFORMATION

Item 1.	Legal Proceedings	41

Item 1A.	Risk Factors	41

Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	41

Item 3.	Defaults Upon Senior Securities	41

Item 4.	Mine Safety Disclosures	41

Item 5.	Other Information	42

Item 6.	Exhibits	43

Signatures		44