Global Medical REIT Inc. Quarterly report pursuant to Section 13 or 15(d)

Quarterly report pursuant to Section 13 or 15(d)

Property Portfolio (Tables)

Property Portfolio (Tables)

6 Months Ended

Jun. 30, 2019

A rollforward of the gross investment in land, building and improvements as of June 30, 2019 resulting from these acquisitions as well as other tenant improvements and the implementation of ASC 842 is as follows:


					Site & Tenant		Acquired Lease		Gross Investment in
	Land		Building		Improvements		Intangibles		Real Estate
Balances as of December 31, 2018	$	63,710	$	518,451	$	22,237	$	43,152	$	647,550
Facility Acquired – Date Acquired:
Zachary – 2/28/19		-		3,336		512		835		4,683
Gilbert and Chandler – 3/19/19		4,616		11,643		-		-		16,259
Las Vegas – 4/15/19		2,479		15,277		2,449		2,297		22,502
Oklahoma Northwest – 4/15/19		2,364		19,501		3,187		3,155		28,207
Mishawaka – 4/15/19		1,924		10,084		1,872		2,223		16,103
Surprise – 4/15/19		1,738		18,737		4,347		3,860		28,682
ASC 842 Reclassification		-		-		-		(824)		(824)
Tenant improvements(1)		-		-		439		-		439
Total Additions(2):		13,121		78,578		12,806		11,546		116,051
Balances as of June 30, 2019	$	76,831	$	597,029	$	35,043	$	54,698	$	763,601

⁽¹⁾

Represents tenant improvements that were completed and placed in service during the six months ended June 30, 2019 related to the Sherman facility that was acquired in June 2017.

⁽²⁾

The Zachary facility acquisition included OP Units with a value of $506 that were issued as part of the total consideration for that transaction. Additionally, an aggregate of $897 of intangible liabilities were acquired from the acquisitions that occurred during the six months ended June 30, 2019, and in connection with the adoption of ASC 842, the Company reclassified $824 of favorable ground lease intangibles to other assets. Accordingly, the total addition to gross investment in real estate funded with cash was $115,472.

A rollforward of the gross investment in land, building and improvements as of June 30, 2018, resulting from these acquisitions is as follows:


					Site & Tenant		Acquired Lease		Gross Investment in
	Land		Building		Improvements		Intangibles		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		3,027		50,581		3,961		7,128		64,697
Total Additions(1):		12,629		102,428		5,933		9,512		130,502
Balances as of June 30, 2018	$	55,330	$	486,766	$	18,751	$	41,162	$	602,009

(1) The Belpre acquisition included $4,742 of OP Units issued as part of the total consideration. An aggregate of $886 of intangible liabilities were acquired from the acquisitions that occurred during the six months ended June 30, 2018, resulting in total gross investments funded using cash of $124,874.

Summary of Carrying amount of intangible assets and liabilities

The following is a summary of the carrying amount of intangible assets and liabilities as of the dates presented:


	As of June 30, 2019
			Accumulated
	Cost		Amortization		Net
Assets
In-place leases	$	29,036	$	(5,566)	$	23,470
Above market leases		9,550		(1,647)		7,903
Leasing costs		16,112		(2,431)		13,681
	$	54,698	$	(9,644)	$	45,054
Liabilities
Below market leases	$	3,233	$	(455)	$	2,778


	As of December 31, 2018
			Accumulated
	Cost		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

Summary of the acquired lease intangible amortization

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


	Three Months Ended				Six Months Ended
	June 30,				June 30,
	2019		2018		2019		2018
Amortization expense related to in-place leases	$	852	$	629	$	1,529	$	1,150
Amortization expense related to leasing costs	$	403	$	297	$	728	$	541
Decrease in rental revenue related to above market leases	$	279	$	229	$	552	$	380
Increase in rental revenue related to below market leases	$	89	$	54	$	147	$	96

Schedule of net amortization acquired lease intangible assets and liabilities

As of June 30, 2019, scheduled future aggregate net amortization of the acquired lease intangible assets and liabilities for each fiscal year ended December 31 is listed below:


	Net Decrease		Net Increase
	in Revenue		in Expenses
2019 (six months remaining)	$	(360)	$	2,584
2020		(721)		5,167
2021		(723)		4,552
2022		(725)		4,243
2023		(702)		3,962
Thereafter		(1,893)		16,643
Total	$	(5,124)	$	37,151

Zachary Facility [Member]

Schedule of tangible and intangible assets

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


Land and site improvements	$	103
Building and tenant improvements		3,745
In-place leases		305
Above-market lease intangibles		117
Leasing costs		413
Below-market lease intangibles		(34)
Total purchase price	$	4,649

Silvis facility [Member]

Schedule of tangible and intangible assets

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 tangible and intangible assets

. 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 tangible and intangible assets

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


Land and site improvements	$	4,000
Building and tenant improvements		53,569
In-place leases		2,666
Above market lease intangibles		2,494
Leasing costs		1,968
Below market lease intangibles		(646)
Total purchase price	$	64,051

IRF Portfolio [Member]

Schedule of tangible and intangible assets

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


					Oklahoma
	Las Vegas		Surprise		Northwest		Mishawaka
Land and site improvements	$	2,723	$	1,966	$	2,507	$	1,998
Building and tenant improvements		17,482		22,856		22,545		11,882
In-place leases		1,778		1,845		1,890		1,465
Above-market lease intangibles		—		938		367		236
Leasing costs		519		1,077		898		522
Below-market lease intangibles		(863)		—		—		—
Total purchase price	$	21,639	$	28,682	$	28,207	$	16,103