Global Medical REIT extends loan maturities, increases debt term to 4.4 years

BETHESDA, Md. - Global Medical REIT Inc. (NYSE:GMRE), a healthcare REIT with a market capitalization of $423 million and an attractive 9.67% dividend yield according to InvestingPro, has restructured its debt through an amended and restated credit facility that extends the maturities of its borrowings, the company announced Wednesday.

The amended facility extends the initial maturity date of the existing $400 million revolver component to October 2029, with two six-month extension options that could push the maturity to October 2030. This debt restructuring comes at a crucial time, as InvestingPro data shows the company maintains a debt-to-equity ratio of 1.7, while its current ratio of 1.32 indicates sufficient liquidity to meet short-term obligations.

Additionally, the company has divided its existing $350 million Term Loan A into three separate term loans: a $100 million loan maturing in October 2029, a $100 million loan maturing in October 2030, and a $150 million loan maturing in April 2031.

The restructuring has increased the weighted average term of the company’s debt from 1.3 years to 4.4 years. The credit facility’s pricing grid, $150 million Term Loan B that matures in February 2028, and $500 million accordion remain unchanged.

GMRE also entered into $350 million of forward starting interest rate swaps to fully hedge the SOFR component of the three Term Loan A tranches through their respective maturities. The effective interest rates for these loans range from 4.75% to 4.84%, based on a leverage ratio between 45% and 50%.

The company’s existing $350 million Term Loan A fixed rate SOFR swaps remain in place, resulting in an all-in fixed interest rate of 2.85% on this debt through April 2026.

JPMorgan Chase Bank, BMO Capital Markets Corp., Wells Fargo Securities, Citizens Bank, Huntington National Bank and Truist Securities served as joint lead arrangers and book runners for the facility.

Global Medical REIT is a net-lease medical REIT that acquires healthcare facilities and leases them to physician groups and healthcare systems, according to the company’s press release statement. With annual revenue of $141.9 million and currently trading near its 52-week low, InvestingPro analysis suggests the stock is undervalued relative to its Fair Value. For deeper insights into GMRE’s valuation and 10+ additional ProTips, investors can access the comprehensive Pro Research Report available on InvestingPro.

In other recent news, Global Medical REIT reported its second-quarter 2025 financial results, showcasing a mixed performance. The company achieved a revenue of $37.9 million, exceeding analyst forecasts of $35.39 million, which represents a 7.09% positive surprise. However, earnings per share (EPS) fell short, coming in at -$0.01 compared to the expected $0.01. Core funds from operations (FFO) were reported at $0.20 per share, aligning with both consensus and Citizens estimates. Despite higher general and administrative costs, the company managed to beat expectations on net operating income (NOI). Additionally, Global Medical REIT announced a $50 million stock repurchase program and a one-for-five reverse stock split. Analyst Aaron Hecht from Citizens JMP maintained a Market Perform rating on the company’s stock following these developments. These recent updates provide investors with a comprehensive view of the company’s current financial standing and strategic actions.

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