Global Medical REIT Inc (NYSE:GMRE) announced a slight increase in rental revenue for the third quarter of 2023, reaching $35.5 million. This growth was primarily driven by acquisition activity, portfolio performance, and three dispositions that took place throughout the year. One of these dispositions included the sale of a medical office building in North Charleston, South Carolina, which brought in gross proceeds of $10.1 million and resulted in a gain of $2.3 million at a cap rate of 5.3%.
On the other hand, the company reported a decline in net income for common stockholders, which fell to $3.1 million or $0.05 per diluted share from $8.1 million or $0.12 per diluted share in the same quarter of the previous year.
As of September 30, 2023, GMRE's portfolio was 96.7% occupied, covering 4.7 million leasable square feet with an annualized base rent of $111.4 million.
Total expenses for the third quarter rose to $33 million due to higher operating and administrative costs. Despite this increase in expenses, the company reported Funds from Operations (FFO) at $15.3 million or $0.22 per share and unit, and Adjusted Funds From Operations (AFFO) at $16.5 million or $0.23 per share and unit.
InvestingPro Insights
The InvestingPro data and tips indicate a positive outlook for Global Medical REIT Inc. (GMRE). The company's market cap stands at $625.2 million, with a P/E ratio of 28.81, indicating that it may be undervalued compared to its earnings growth. The company's revenue growth in the last twelve months as of Q2 2023 is 14.61%, with a gross profit margin of 99.81%, showing strong profitability.
The InvestingPro Tips highlight the company's high earnings quality, with free cash flow exceeding net income, and a high shareholder yield. It's also noted that GMRE is trading at a low P/E ratio relative to near-term earnings growth, and has seen a significant return over the last week. This, coupled with the fact that the company pays a significant dividend to shareholders, makes it an attractive investment.
For those interested in more detailed insights, InvestingPro offers an additional five tips related to GMRE. These tips, along with the ones mentioned in this article, can provide a more comprehensive understanding of the company's financial health and investment potential.
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