BETHESDA, Md.--(BUSINESS WIRE)--Global Medical REIT Inc. (NYSE: GMRE) (the “Company” or “GMRE”), a net-lease medical office real estate investment trust (REIT) that acquires purpose-built healthcare facilities and leases those facilities to strong healthcare systems and physician groups with leading market share, provided a business update on activities completed in the fourth quarter of 2020.
Jeff Busch, Chairman and Chief Executive Officer, stated, “2020 was a highly productive year for Global Medical REIT. Our business model was tested amidst a global pandemic and proved to be resilient. We finished the year strong by completing $80 million of acquisitions in the fourth quarter to reach $226 million for the year. We look forward to delivering growth and value to our shareholders in 2021 and beyond.”
During the fourth quarter of 2020, the Company completed eight acquisitions, encompassing an aggregate 231,502 square feet, for an aggregate purchase price of $79.8 million at a weighted average cap rate of 7.3%. For the full year 2020, the Company completed $226.5 million of acquisitions at a 7.8% weighted average cap rate.
During the fourth quarter of 2020, the Company extended leases representing 7.1% of its annualized base rent (ABR) for a weighted average additional term of 9.2 years. Included in these amounts are:
- new 10-year leases with the Company’s largest tenant Encompass Health for its 79,000 square foot facility located in Mechanicsburg, PA and its 70,000 square foot facility in Altoona, PA; and
- an eight-year lease extension with its Mercy Rehabilitation Hospital tenant (a Kindred Healthcare joint venture) at its 53,000 square foot facility located in Oklahoma City, OK.
These lease extensions (i) reduce the Company’s 2021 expiring lease exposure to approximately 0.4% of its ABR from 5.1% of ABR as of September 30, 2020, and (ii) increased the Company’s weighted average lease term from 7.8 years as of September 30, 2020 to 8.2 years as of December 31, 2020.
Participation in 23rd Annual ICR Conference and Stifel 2021 Virtual Seniors Housing & Healthcare Real Estate Conference
The Company today announced that Jeffrey Busch, Chief Executive Officer, Chairman & President, Alfonzo Leon, Chief Investment Officer, and Robert Kiernan, Chief Financial Officer, will participate virtually in a fireside chat at the 23rd Annual ICR Conference on Monday, January 11, 2021.
The fireside chat is scheduled to begin at 10:30 am Eastern time. A link to the live webcast of the discussion will be available through the IR Calendar section of the Company’s website, https://investors.globalmedicalreit.com/news-events/ir-calendar. An archive of the webcast will be available shortly after the respective discussion at the same location for 90 days.
On Tuesday, January 19, Jeffrey Busch will participate in a panel discussion titled “MOB / Life Science Panel: Is COVID Changing Anything?” at the Stifel 2021 Virtual Seniors Housing & Healthcare Real Estate Conference.
The panel’s scheduled start time will be posted to the Company’s website next week. A link to the live webcast of the discussion will be available through the IR Calendar section of the Company’s website, https://investors.globalmedicalreit.com/news-events/ir-calendar. An archive of the webcast will be available shortly after the respective discussion at the same location for 90 days.
About Global Medical REIT Inc.
Global Medical REIT is a net-lease medical office REIT that acquires purpose-built specialized healthcare facilities and leases those facilities to strong healthcare systems and physician groups with leading market share. Additional information on GMRE can be obtained on its website at www.globalmedicalreit.com.
This press release contains statements that are “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements may be identified by the use of words such as “anticipate”, “believe”, “expect”, “estimate”, “plan”, “outlook”, and “project” and other similar expressions that predict or indicate future events or trends or that are not statements of historical matters. Forward-looking statements should not be read as a guarantee of future performance or results and will not necessarily be accurate indications of the times at, or by, which such performance or results will be achieved. Forward-looking statements are based on information available at the time those statements are made and/or management’s good faith belief as of that time with respect to future events. These forward-looking statements are subject to various risks and uncertainties, not all of which are known to the Company and many of which are beyond the Company’s control, which could cause actual performance or results to differ materially from those expressed in or suggested by the forward-looking statements. These risks and uncertainties are described in greater detail in the “Risk Factors” section of the Company’s Annual Report on Form 10-K for the year ended December 31, 2019, which was filed with the SEC on March 3, 2020, and elsewhere in the reports the Company has filed with the SEC. Unless legally required, the Company disclaims any obligation to update any forward-looking statements, whether as a result of new information, future events or otherwise. The Company undertakes no obligation to update these statements after the date of this release.