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Global Medical REIT Inc. Reveals Strategic Disposition of the Great Bend Regional Hospital

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Global Medical REIT Inc., a net-lease medical office real estate investment trust that acquires purpose-built healthcare facilities and leases those properties to strong healthcare systems and groups with leading market share, revealed that on December 20, 2018 the company closed on the disposition of its Great Bend Regional Hospital for proceeds of $32.45 million, and that it acquired six medical office net-leased assets during the fourth quarter of 2018 for an aggregate purchase price of $58.6 million.

“We are very pleased with the track record we are establishing as prudent medical office investors,” stated Jeffrey Busch, Chief Executive Officer, Chairman & President. “The disposition of our Great Bend asset is a testament to our disciplined underwriting and the value creation through our net-lease medical portfolio. This, in addition to our fourth quarter acquisition activity, continues to position GMRE well within the marketplace.”

Great Bend Disposition

On December 20, 2018, the company disposed of the Great Bend Regional Hospital for gross proceeds of $32.45 million, achieving a 43% levered internal rate of return, a 24% unlevered IRR and generating a gain of approximately $8 million. The company intends to redeploy the proceeds into additional healthcare property acquisitions.

Fourth Quarter 2018 Acquisitions

During the fourth quarter of 2018, the company completed six acquisitions, encompassing an aggregate of 206,997 leasable square feet, for an aggregate purchase price of $58.6 million with annualized base rent of $4.5 million and a weighted average capitalization rate of 7.59%. In connection with two of these acquisitions, the Company’s operating partnership issued approximately 1.3 million operating partnership units valued at $12.7 million at an average issuance price of $9.89 per unit.