Executive Summary

Q4 2024 delivered stable operating performance: rental revenue rose 6.1% YoY to $35.0M, AFFO/share held at $0.22 (vs. $0.23 LY), and occupancy was 96.4% .
One-time items drove mixed optics: $3.2M CEO transition costs pressured FFO/share to $0.15 (vs. $0.19 LY), partially offset by a $5.8M gain on asset sales and a $1.7M impairment .
2025 outlook: AFFO/share introduced at $0.89–$0.93; G&A guided to normalize to ~$4.5–$4.7M/quarter; capex planned at $12–$14M; dividend maintained at $0.21 .
Strategic catalysts: (1) Joint venture with Heitman (12.5% GMRE stake) to expand capacity/fee streams, (2) 9% cap-rate five-asset acquisition under contract (three closed post-Q4), and (3) CHRISTUS lease at Beaumont expected to commence in Q2 2025 ($2.9M ABR), supporting cash flow trajectory .

What Went Well and What Went Wrong

What Went Well

Executing growth at attractive yields: closed a 15-asset portfolio at an 8.0% cap and contracted a 5-asset, $69.6M portfolio at a 9.0% cap, with three assets ($31.5M) closed in February 2025 .
New JV platform with Heitman provides incremental capital and fee income potential; seeded with two assets and $35.2M gross proceeds; GMRE owns 12.5% and manages the JV .
Rapid re-tenanting of Beaumont: long-term, 15-year triple-net lease signed with CHRISTUS; annual rent ~$2.9M with 2.5% escalators, expected to begin Q2 2025; slightly above Steward’s prior rent .

“During the year we maintained our disciplined acquisition approach… and entered into a purchase agreement to acquire a five-property, $69.6 million portfolio at a cap rate of 9.0%… [and] entered into a joint venture with Heitman” – Jeffrey M. Busch .

What Went Wrong

Non-recurring CEO transition costs ($3.2M) and a $1.7M impairment pressured headline profitability and FFO in Q4 .
Prospect Medical filed for Chapter 11 in January 2025; exposure is small (~0.8% of ABR), but creates near-term uncertainty and potential incremental vacancy of ~30K sq. ft. .
FFO/share declined to $0.15 (vs. $0.19 LY), reflecting the transition costs; AFFO/share was flat YoY at $0.22, indicating core cash flow stability but limited per-share growth .

Financial Results

Quarterly progression (oldest → newest)

Metric	Q2 2024	Q3 2024	Q4 2024
Rental Revenue ($MM)	$34.214	$34.175	$34.953
Net Income to Common ($MM)	$(3.147)	$1.791	$1.374
GAAP EPS (Basic & Diluted)	$(0.05)	$0.03	$0.02
FFO per Share & Unit	$0.20	$0.19	$0.15
AFFO per Share & Unit	$0.22	$0.22	$0.22
Adjusted EBITDAre ($MM)	$23.984	$24.002	$25.095
Occupancy (Period-End)	96.2%	96.1%	96.4%
Leverage Ratio	43.8%	44.1%	44.8%

YoY snapshot (Q4 2024 vs. Q4 2023)

Metric	Q4 2023	Q4 2024
Rental Revenue ($MM)	$32.931	$34.953
GAAP EPS (Basic & Diluted)	$(0.01)	$0.02
FFO per Share & Unit	$0.19	$0.15
AFFO per Share & Unit	$0.23	$0.22
Adjusted EBITDAre ($MM)	$24.110	$25.095

Q4 2024 Portfolio & Balance Sheet KPIs (snapshot)

Occupied: 96.4%; ABR: $110.0M; WALT: 5.6 years; annual rent escalators: 2.2%; rent coverage: 4.5x .
Total debt: $651.0M gross; weighted avg rate 3.75%; weighted avg maturity 2.0 years; leverage 44.8% .
Unutilized borrowing capacity as of 2/26/25: $219M .

Guidance Changes

Metric	Period	Previous Guidance	Current Guidance	Change
AFFO per Share & Unit	FY 2025	N/A	$0.89–$0.93	Introduced
G&A Expense (Quarterly Run-Rate)	2025	$4.4–$4.6M/quarter (2H24 expectation)	$4.5–$4.7M/quarter	Slightly higher
Portfolio Capex	FY 2025	$12–$14M for 2024	$12–$14M	Maintained
Common Dividend	Q1 2025	$0.21 (Q4 2024)	$0.21	Maintained
Series A Preferred Dividend	Q2 2025 payable	$0.46875 (Q4 2024)	$0.46875	Maintained
Beaumont (CHRISTUS) Rent Commencement	Q2 2025	Steward ~$2.8M ABR historic	~$2.9M ABR; 2.5% escalators	Slight increase

Earnings Call Themes & Trends

Topic	Q2 2024 (Q-2)	Q3 2024 (Q-1)	Q4 2024 (Current)	Trend
Acquisition market/cap rates	Pipeline north of 8%, high 8s to ~9% targeted	Closed 15-asset portfolio at 8% cap; contracted a 9% cap 5-asset deal	Reiterated 9% cap 5-asset deal; tranche-1 closed; tranche-2 targeted Q2 2025	Improving supply at higher yields
Capital recycling	Sold Mishawaka (loss) and Panama City (gain)	Sold two FL assets (7% cap); ongoing recycling	Four Q4 sales for $40.5M gross proceeds; willing to prune lower-quality assets	Active/selective
JV strategy	—	—	Heitman JV launched; seed sale at low-7s cap; 12.5% GMRE stake; aim to grow w/ external assets	New platform
Tenant risk	Steward bankruptcy exposure; reserving discussed	Steward lease formally rejected; CHRISTUS lease signed	Prospect bankruptcy (0.8% ABR); awaiting decisions; CHRISTUS rent Q2 2025	Stabilizing/mixed
G&A/costs	G&A run-rate $4.4–$4.6M expected (2H24)	G&A ~$4.4M; steady	Q4 G&A $7.7M from $3.2M severance; 2025 run-rate $4.5–$4.7M	Normalizing in 2025
Dividend	$0.21 declared	$0.21 declared	$0.21 (Q1 2025) declared; preferred maintained	Maintained

Management Commentary

“We believe the joint venture will provide additional opportunities to acquire assets and earn ancillary fee income with a strong capital partner.” – Jeffrey M. Busch .
“These buildings feature tenants who have invested significant capital… triple net rents averaging $14 to $15 per square foot… approximately 2/3… on campus.” – Alfonzo Leon (re: 9% cap portfolio) .
“We expect our total quarterly G&A expenses in 2025, excluding CEO transition-related costs to be in the range of $4.5 million to $4.7 million.” – Robert Kiernan .
“The annual rent for the new [CHRISTUS] lease is $2.9 million, and it’s slightly above the previous rent that Steward was paying.” – Robert Kiernan .

Q&A Highlights

JV details: Heitman fund had ~$50M of equity capacity at inception; initial seed sale at “low 7%” cap; focus on strong single-tenant assets; no ROFR limiting on-balance-sheet deals .
Funding strategy: Mix of dispositions and potential ATM, with emphasis on portfolio quality upgrade; leverage targeted in 40–45% range .
Tenant updates: Prospect bankruptcy (0.8% ABR) assumed in 2025 guidance; CHRISTUS Beaumont annual rent ~$2.9M, expected to start in April–May timeframe .
Expense outlook: G&A run-rate to normalize; 2025 capex budget ~$12–$14M; leasing commissions likely decline to ~$1–$2M vs. unusually high 2024 due to one-offs .
Portfolio optimization: Active recycling; interest from owner-users and local buyers supports selective sales and accretive redeployment .

Estimates Context

S&P Global consensus estimates for Q4 2024 (EPS/Revenue/FFO per share) were unavailable at the time of request due to a temporary data access limit. As a result, we do not present a beats/misses table this quarter and instead benchmark actuals versus prior year/quarter trends. We will update beat/miss diagnostics once S&P Global consensus is accessible.

Key Takeaways for Investors

Core cash flow steady: AFFO/share held at $0.22 in Q4 and FY2024 AFFO/share was $0.89; 2025 AFFO/share guide of $0.89–$0.93 indicates stability with upside from the CHRISTUS rent commencement in Q2 2025 .
Accretive external growth: Management is sourcing at 8–9% cap rates, with tranche-based closings to manage funding; closed three assets in Feb 2025 and targeting two more in Q2 2025 .
Capital partner leverage: New Heitman JV broadens acquisition capacity and fee income without crowding out on-balance-sheet investments (no JV ROFR) .
Balance sheet disciplined: Leverage at 44.8%; ample liquidity with $219M of revolver capacity; dividend maintained, supporting income profile .
Tenant risk manageable: Prospect bankruptcy exposure is de minimis (~0.8% ABR); Beaumont re-leased to A+/A-rated CHRISTUS, with rent above prior Steward level .
Cost normalization ahead: Non-recurring CEO transition costs masked FFO in Q4; 2025 G&A run-rate guidance implies cleaner comparability and potential operating leverage .
Trading setup: Near-term catalysts include tranche-2 closing of the 9% cap portfolio, Beaumont rent commencement, and incremental JV activity; watch for recycling-driven mix upgrade and any estimate revisions once consensus data reopens .

Global Medical REIT Inc. (GMRE)·Q4 2024 Earnings Summary