Executive Summary

Q3 2025 was operationally solid but optically noisy: revenue rose 8.4% YoY to $37.0M on acquisitions, while a $6.3M impairment on an unoccupied Aurora, IL administrative facility swung GAAP EPS to a loss of $0.45; FFO/share rose 4% YoY to $1.00 and AFFO/share rose 4% YoY to $1.12 .
Guidance narrowed: FY25 AFFO/share tightened to $4.50–$4.60 (from $4.45–$4.65), effectively maintaining the midpoint; management reiterated disciplined external growth tied to asset recycling and cost of capital .
Balance sheet de-risking advanced: the revolver maturity was extended to Oct-2029 (two 6-month options to 2030), Term Loan A was split into three tranches maturing 2029–2031, the 10 bps SOFR CSA was removed, and forward-starting swaps fix Term Loan A’s SOFR component at ~4.75–4.84% effective rates from May 2026 .
Setup into Q4: Same-store cash NOI grew 2.7% YoY; portfolio occupancy improved to 95.2% and management targets ~96% by year-end; CFO highlighted dividend coverage (FAD payout ~84% YTD) and expects incremental tailwinds from refinancing mechanics and rate curve .

What Went Well and What Went Wrong

What Went Well
- Same-store performance and leasing: Same-store cash NOI +2.7% YoY; occupancy reached 95.2% with a 5.3-year WALT and 2.1% annual rent escalators; management expects ~96% occupancy by year-end, citing positive releasing outcomes and constrained new supply .
- Balance sheet terming-out and hedging: Recast revolver to 2029 (options to 2030); Term Loan A extended/split with forward-starting swaps fixing effective rates near 4.75–4.84% (SOFR + 145 bps) beginning May 2026; 10 bps SOFR CSA removed .
- FFO/AFFO growth: Per-share FFO rose to $1.00 and AFFO to $1.12, both +4% YoY; rental revenue increased 8.4% YoY on acquisitions .
- Management tone: New CEO emphasized value creation via internal growth, disciplined capital allocation, and capital markets acumen; argued shares imply a “substantial discount” to fair value of assets given 95% occupancy, 5+ year WALT, and repeatable 2.7% same-store NOI growth .
What Went Wrong
- GAAP optics: A $6.3M impairment on the vacated Aurora administrative facility (sold in the quarter) drove a GAAP net loss of $6.0M and EPS of $(0.45), obscuring underlying FFO/AFFO strength .
- Modest revenue shortfall vs consensus: Total revenue of $37.2M came in below S&P Global consensus of ~$38.15M*; prior quarter was a revenue beat, underscoring some variability in quarterly timing/mix [GetEstimates].
- Elevated leverage starting point: Leverage at 47.3% and Net Debt/Annualized Adj. EBITDAre ~6.9x remains above medium-term target (“sub-six times”), keeping external growth contingent on asset recycling and/or cost of capital improvement .

Financial Results

Metric	Q1 2025	Q2 2025	Q3 2025
Rental Revenue ($M)	$34.595	$37.880	$37.036
Total Revenue ($M)	$34.618	$37.969	$37.229
GAAP EPS (basic & diluted)	$0.16 (split-adjusted)	$(0.06) (split-adjusted)	$(0.45)
FFO/share & unit	$1.02 (split-adjusted)	$0.98 (split-adjusted)	$1.00
AFFO/share & unit	$1.11 (split-adjusted)	$1.14 (split-adjusted)	$1.12
Same-Store Cash NOI YoY	n/a	n/a	+2.7%

Notes: Company states all per-share data in Q3 release are adjusted for the 1-for-5 reverse stock split effective Sep 19, 2025 . Split-adjusted historical per-share metrics are sourced from the Q3 supplemental .

Vs. Estimates (Q3 2025)

Metric	Consensus	Actual	Surprise
Revenue ($M)	$38.154*	$37.229	$(0.925)
GAAP EPS	$0.045*	$(0.45)	$(0.495)

Values marked with * retrieved from S&P Global (limited coverage; number of estimates: EPS 2, Revenue 4) [GetEstimates].

Portfolio KPIs

KPI	Q1 2025	Q2 2025	Q3 2025
Occupancy	95.6%	94.5%	95.2%
WALT (years)	5.6	5.6	5.3
Annual Rent Escalators	2.2%	2.1%	2.1%
Annualized Base Rent ($M)	$113.4	$117.5	$118.4

Balance Sheet & Debt

Consolidated debt outstanding ~$710–713M in Q3; leverage 47.3%; weighted average interest rate 4.06%; pro forma weighted average maturity 4.4 years post-amendment .
Revolver extended to Oct 2029 (two 6-month options to Oct 2030); Term Loan A split ($100M A-1 2029, $100M A-2 2030, $150M A-3 2031); SOFR CSA 10 bps removed -.
Forward-starting swaps fix Term Loan A effective rates at ~4.75% (A-1), 4.80% (A-2), 4.84% (A-3) from May 2026; Term Loan B fixed at ~4.05% .

Guidance Changes

Metric	Period	Previous Guidance	Current Guidance	Change
AFFO/share & unit	FY 2025	$4.45–$4.65 (split-adjusted)	$4.50–$4.60	Narrowed around midpoint
CapEx + Leasing Costs	FY 2025	$12–$14M (management commentary)	$12–$14M (target)	Maintained
Common Dividend	Q3 2025	n/a	$0.75/share declared (split-adjusted)	Declared
Series A Preferred Dividend	Q3 2025	n/a	$0.46875/share declared	Declared

Assumptions for guidance include no additional unannounced acquisitions/dispositions and no equity/debt issuance beyond normal revolver activity .

Earnings Call Themes & Trends

Topic	Previous Mentions (Q1 & Q2 2025)	Current Period (Q3 2025)	Trend
Balance sheet refinancing	Priority to renew 2026 revolver and $350M Term Loan A; consider insurance co. debt; diversify lenders	Completed amendment: revolver to 2029 (options to 2030), split Term Loan A (2029–2031), hedged SOFR; removed 10 bps CSA -	Executed; de-risked
Occupancy & leasing	Q2 occupancy 94.5%; re-tenant Beaumont (CHRISTUS); YE occupancy “95%+”	Occupancy 95.2%; targeting ~96% YE; positive releasing and supply constraints aiding renewals	Improving
Capital recycling & dispositions	Identified $50–$100M dispositions; use proceeds for debt paydown/new investments	Completed two dispositions ($3.8M) with $0.3M gain; near-term recycling pool still ~$50–$100M	Beginning to execute
External growth pipeline	9.0% cap portfolio acquired in 1H; market deals mid-6s to 7%+; prefer higher-yielding “quality”	Underwritten $11.5B YTD; near-term pipeline ~$500M at 7.5–8%; pursue only with asset recycling/green light from markets	Robust but selective
Dividend coverage	Dividend reset in Q2 to improve FAD coverage to <80%	YTD FAD ~$39.2M; payout ~84% at current dividend; sustainable coverage highlighted	Stable
Tenant risk & impairments	East Orange (Prospect) being re-leased; Beaumont stabilized; watch list centered on Steward/Prospect	$6.3M impairment on Aurora admin facility (sold); watch list “shrinking,” no active brewing issues noted	De-risking underway

Management Commentary

Strategy and valuation: “We’re going to achieve [shareholder value] by delivering internal earnings growth, [disciplined] capital allocation and capital markets acumen… This quarter’s 2.7% same-store print is repeatable… any reasonable assumptions would indicate that we traded at a substantial discount to the fair value of our assets.”
Balance sheet: “We… recast the revolver to 2029 and [extended] our $350 million term loan A… dividing [it] into three distinct loans… [and] entered into forward-starting interest rate swaps… weighted average effective interest rate ~4.8%… existing swaps remain until April 2026.”
Occupancy outlook: “We have strong visibility on our near-term leasing pipeline and expect occupancy to trend towards 96% at year-end.”
External growth discipline: “We will remain disciplined, pursuing only our highest conviction ideas and funding those transactions with proceeds from asset recycling.”
Leverage target: “Our overall target leverage… near term, is sub-six times.”

Q&A Highlights

Dispositions and recycling scale: Near-term disposition capacity of ~$50–$100M; best sales will be “well-leased, sleep-at-night” assets; intent is leverage-neutral recycling where feasible .
Acquisition pipeline and hurdle: ~$500M near-term pipeline at 7.5–8% first-year yields; execution contingent on capital markets and matching sales to buys .
Debt strategy: Preference to add longer-term insurers/PP market to diversify tenor and lender mix; aim to bolster quality of earnings and path to investment-grade .
Occupancy cadence: Q4 to benefit from lease-ups; YE ~96% assumes leases “underway” (paper trading) rather than significant sales of vacancy; minor sale not meaningful to occupancy .
Buyback vs. growth vs. deleveraging: With stock implying a >9% cap rate, repurchases are attractive; management weighing balanced approach of deleveraging, buybacks, and accretive acquisitions .

Estimates Context

Q3 2025 vs S&P Global consensus: Revenue $37.23M vs $38.15M* (miss); GAAP EPS $(0.45) vs $0.045* (miss), driven by a $6.3M impairment tied to an unoccupied administrative facility that was subsequently sold .
Coverage depth was limited (EPS: 2 estimates; Revenue: 4); investors should prioritize FFO/AFFO trends and same-store metrics for REIT comparability [GetEstimates].
Note: The company completed a 1-for-5 reverse stock split effective Sep 19, 2025; company-reported per-share figures reflect split-adjustment; consensus series may differ in split-adjustment timing .
Values marked with * retrieved from S&P Global.

Key Takeaways for Investors

Underlying earnings power improved: Same-store cash NOI growth (+2.7% YoY), occupancy back to mid-95% with line-of-sight to ~96%, and per-share FFO/AFFO grew YoY despite GAAP impairment noise .
Balance sheet risk reduced: Maturities extended to 2029–2031, CSA removed, and swaps layered to ~4.8% effective rates post-2026; this underpins earnings visibility into the 2026 refinancing overhang .
Recycling-driven external growth optionality: ~$50–$100M near-term disposition capacity and a ~$500M acquisition pipeline at 7.5–8% first-year yields offer accretive rotation if matched prudently .
Dividend coverage acceptable: YTD FAD payout ~84% and guidance to $12–$14M CapEx/LC keeps coverage manageable as leasing progresses .
Stock catalysts: Continued leasing execution to ~96% occupancy, evidence of positive recycling spreads, and communication of the strategic plan could drive multiple re-rating; the impairment appears idiosyncratic and was followed by sale .
Watch list de-risking: Steward/Prospect exposure has been addressed via re-tenanting progress; watch list “shrinking,” lowering left-tail risk .
Funding flexibility: Subsequent to quarter, the company commenced a proposed Series B preferred offering to support acquisitions and/or repay debt, broadening capital stack options .

Appendix: Additional Q3 2025/Quarterly Items

Reverse stock split and authorization: 1-for-5 reverse split completed (outstanding shares 67.0M → 13.4M) and established a $50M share repurchase program (no repurchases as of Nov 3) .
Dispositions: Two assets sold for $3.8M gross proceeds with $0.3M aggregate gain; Aurora impairment preceded sale .
Credit Facility Amendment press release (Oct 8, 2025): Confirms terms and swap details; weighted average debt term extended to 4.4 years at closing .
Earnings webcast logistics announced Oct 15, 2025 .

All citations:

Q3 2025 press release and exhibits -
8-K (Item 2.02) and earnings supplemental -
Q3 2025 call transcript -
Q2 2025 press release and call - -
Q1 2025 press release -
Credit facility amendment PR -
Earnings date PR
Proposed Series B preferred PR -
S&P Global consensus (GetEstimates) for EPS and revenue (values marked with *). Values retrieved from S&P Global.

Global Medical REIT Inc. (GMRE)·Q3 2025 Earnings Summary