Global Medical REIT Q2 2025 slides: rental revenue climbs amid strategic acquisitions

Global Medical REIT Inc . (NYSE:GMRE) released its second quarter 2025 earnings supplemental presentation, highlighting improved financial performance and continued portfolio expansion in the healthcare real estate sector. The company reported rental revenue of $37.9 million for Q2 2025, up from $34.2 million in the same period last year, while maintaining a high occupancy rate of 94.5% across its diversified portfolio of medical facilities.

Quarterly Performance Highlights

For the second quarter of 2025, Global Medical (TASE:BLWV) REIT reported a net loss attributable to common stockholders of $0.8 million, or $0.01 per diluted share, which represents a significant improvement from the $3.1 million loss reported in Q2 2024. Funds from Operations (FFO) reached $14.3 million ($0.20 per share and unit), while Adjusted Funds from Operations (AFFO) totaled $16.6 million ($0.23 per share and unit).

"Our high-quality diversified portfolio continues to produce steady results," noted the company in its presentation, which is reflected in the quarterly financial data showing consistent improvement in key metrics over the past year.

The company’s financial performance shows a positive trajectory when viewed across recent quarters:

This performance comes after a challenging first quarter where the company reported revenue of $34.6 million, which missed analyst expectations of $35.34 million despite an EPS beat. The second quarter results suggest a recovery in revenue generation, potentially alleviating some investor concerns that led to a 6.13% stock price decline following the Q1 earnings release.

Portfolio and Acquisition Strategy

Global Medical REIT continues to execute its growth strategy through strategic acquisitions. In Q2 2025, the company completed the acquisition of the remaining two properties of a five-property medical portfolio worth $38.1 million, generating annualized base rent of $3.6 million. Additionally, the company sold a medical facility in Chipley, Florida for $1.4 million, resulting in a gain of $0.2 million.

The company’s portfolio as of June 30, 2025, comprises 193 buildings across 35 states with a gross investment in real estate of $1.5 billion. The portfolio maintains a weighted average cap rate of 8.0% and a weighted average lease term of 5.6 years.

The geographic diversification of the portfolio is illustrated in the following map:

The company’s acquisition strategy has focused on properties with strong yields, as evidenced by the weighted average cap rate of 9.0% for 2025 acquisitions to date:

Portfolio Composition and Tenant Base

Global Medical REIT’s portfolio is predominantly composed of Medical Office Buildings (MOBs), which account for 72% of annualized base rent, followed by Inpatient Rehabilitation Facilities (IRFs) at 17%. Geographically, the portfolio has concentrations in Texas (17%), Florida (11%), and Ohio (8%), providing diversification across multiple healthcare markets.

The portfolio summary reveals a strong tenant base with 90% of tenants being health system or affiliated healthcare groups:

The company’s tenant composition is further broken down by building type, location, and specialty, showing a well-diversified portfolio across various healthcare segments:

Key tenants include major healthcare providers such as LifePoint Health (6.9% of portfolio ABR), Encompass Health (NYSE:EHC) (6.3%), Memorial Health System (5.1%), Trinity Health (4.4%), and TeamHealth (2.8%), providing stability to the company’s revenue stream.

Financial Position and Debt Structure

As of June 30, 2025, Global Medical REIT reported total gross debt of $716.8 million with a leverage ratio of 47.2%. The company maintains a balanced debt profile with 72% fixed-rate debt and 28% floating-rate debt, and a weighted average interest rate of 4.09%.

The debt structure and maturity schedule are detailed in the following summary:

The company’s financial statements show a solid balance sheet with total assets of $1.3 billion and total equity of $525 million as of June 30, 2025:

Cash flow from operations reached $34.4 million for the first six months of 2025, compared to $33.2 million for the same period in 2024, demonstrating the company’s ability to generate consistent cash flow from its portfolio.

Forward-Looking Statements

Global Medical REIT reaffirmed its full-year 2025 AFFO per share and unit guidance of $0.89 to $0.93, consistent with previous guidance provided in the first quarter. The company also noted that on July 31, it fully repaid the Rosedale loan using borrowings from its revolving credit facility.

The company’s non-GAAP reconciliations provide additional insight into its financial performance metrics:

Global Medical REIT’s stock closed at $6.81 on August 5, 2025, up 0.9% from the previous close, but still trading closer to its 52-week low of $6.06 than its high of $10.46. This suggests that despite the improved quarterly performance, investors remain cautious about the company’s prospects in the current economic environment.

The company’s focus on healthcare real estate, high occupancy rates, and diversified tenant base position it to navigate the challenges in the commercial real estate market, though rising interest rates and healthcare industry dynamics will continue to influence its performance in the coming quarters.

Full presentation:

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