Company Announces Closing of the Acquisition of the Central Texas Rehabilitation Hospital in Austin Texas; Closing of the Acc...
September 29 2017 - 8:30AM
Business Wire
Global Medical REIT Inc. (NYSE:GMRE) (the “Company”), a Maryland
corporation engaged primarily in the acquisition of licensed,
state-of-the-art, purpose-built healthcare facilities and the
leasing of these facilities to strong clinical operators with
leading market share, today announced the following events:
Closing of Central Texas Rehabilitation
Hospital – Austin, Texas
On September 25, 2017, the Company completed the previously
announced acquisition of the Central Texas Rehabilitation Hospital
in Austin, Texas (the “Austin Facility”) for a purchase price of
$40,650,000. Upon the closing of this acquisition, the Company
assumed the seller’s interest, as lessor, in the lease of the
Austin Facility to CTRH, LLC, which is a joint venture between
subsidiaries of Kindred Healthcare and Seton Healthcare, which is
part of the Ascension Health System. The lease on the Austin
Facility is an absolute triple-net lease with a remaining lease
term of approximately 9.6 years, subject to four, five-year renewal
options by the tenant. The current annual rent is approximately
$2.9 million, subject to annual increases of approximately 3.0%,
and 80% of the lease payments are guaranteed by Kindred Healthcare.
The initial capitalization rate for the property is approximately
7.1%. Please see the Company’s Current Report on Form 8-K filed
with the U.S. Securities and Exchange Commission (“SEC”) on
September 29, 2017 for a more detailed description of the
acquisition and lease terms, including the lease which is filed as
an exhibit to that Current Report.
Jeffrey Busch, the Company’s Chief Executive Officer, commented,
“We are excited to enter into the growing Austin, Texas market and
continue our partnerships with strong healthcare operators such as
Kindred Healthcare and Seton Healthcare.”
Receipt of Lending Commitments on
Revolving Credit Facility Accordion Feature
On September 28, 2017, the Company received commitments from
certain of its revolving credit facility syndicate members to fund
up to $50 million of additional indebtedness under the accordion
feature of its revolving credit facility. With the closing of the
accordion feature, the total borrowing capacity under the revolving
credit facility increased to $250 million. Mr. Busch commented, “We
believe the closing of the accordion feature of our revolving
credit facility for the full $50 million commitment, in addition to
our recent up-sized preferred stock offering, confirms our lenders’
and stockholders’ belief in and commitment to our business and
investment strategy.”
Declaration of Series A Preferred Stock
Dividend
The Company announced today that its Board of Directors
authorized a $0.2396 per share cash dividend to the holders of its
Series A Preferred Stock of record as of October 15, 2017, to be
paid on October 31, 2017. This dividend represents the Company’s
initial dividend on its Series A Preferred Stock for the period
from its issuance on September 15, 2017 through October 30,
2017.
About Global Medical REIT Inc.
Global Medical REIT Inc. is a Maryland corporation engaged
primarily in the acquisition of licensed, state-of-the-art,
purpose-built healthcare facilities and the leasing of these
facilities to strong clinical operators with leading market share.
The Company intends to produce increasing, reliable rental revenue
by expanding its portfolio, and leasing each of its healthcare
facilities to market-leading operators under a long-term,
triple-net lease. The Company’s management team has significant
healthcare, real estate and public real estate investment trust, or
REIT, experience and has long-established relationships with a wide
range of healthcare providers. The Company intends to elect to be
taxed as a REIT for U.S. federal income tax purposes, commencing
with its taxable year ended December 31, 2016.
Forward-Looking Statements
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, as amended by Amendment No. 2
thereto, for the year ended December 31, 2016, which were filed
with the SEC on March 27, 2017 and May 9, 2017, respectively, and
elsewhere in the reports the Company has filed with the SEC,
including statements regarding the Company’s business objectives
and that the Company may be unable to pay its initial dividend on
its Series A preferred stock in a timely fashion or at all. 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.
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version on businesswire.com: http://www.businesswire.com/news/home/20170929005143/en/
Investor Relations CounselThe Equity Group Inc.Jeremy Hellman,
212-836-9626Senior Associatejhellman@equityny.comorAdam Prior,
212-836-9606Senior Vice Presidentaprior@equityny.com
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