Global Medical REIT Inc. Q4 FY2025 earnings call

• New mission is to deliver value at the intersection of care, capital, and real estate.
• GMRE has exceeded the total return profile of closest MOB peers since IPO.
• Rewritten playbook to prioritize earnings growth on top of stable portfolio, established long-term strategy and reviewed existing portfolio.
• Appointed Alex Wilburn as portfolio manager.
• Sold early vintage medical office for $10 million to repurchase stock, identified ~$250 million of prospective dispositions.
• Considering entering senior housing space due to silver tsunami, announced 49% interest in active adult development in Minneapolis with stabilized double digit unlevered IRR.

NAE REIT defined FFO per share and unit was 97 cents for the quarter. Core FFO (previously referred to as AFFO) was $1.16 per share and unit. Net debt to adjusted EBITDA RE was 6.2 times for the quarter, a reduction of 0.7 times from the prior period due to recent preferred equity issuance. Cash NOI, which includes all assets owned by Chiron for at least 15 months, increased 5.4% year-over-year and 2.9% sequentially. Chiron will transition to a monthly dividend with no change to the annual $3 per share rate. Initial 2026 core FFO guidance range is $4.30 to $4.45 per share and unit, including $0.36 of anticipated headwinds due to balance sheet fortification efforts in the back half of last year, and the guidance does not reflect speculative acquisition or disposition activity.

• Transition to monthly dividend with no change to annual $3 per share rate.
• Initial 2026 core FFO guidance range $4.30 - $4.45 per share and unit, including $0.36 headwinds from balance sheet fortification in back half of last year.
• Guidance does not reflect speculative acquisition or disposition activity.

• Medical office bear market due to interest rates.
• Senior housing investment has operating intensity risk.
• Uncertainty in timing of asset dispositions and acquisitions.
• Uncertainty regarding White Rock bankruptcy impact and resolution.

Q: Hi, good morning. Thanks for the time. Congratulations on laying out the new strategy and thesis. I guess the big question in my mind is just there's obviously a lot of enthusiasm around seniors housing and why do you think Kiron is positioned to execute over and above what some of your peers are doing? And the focus in seniors, is that more assisted, independent living? How do you plan to pick the operators, the market focus. So if you could just give us a little sense of kind of what we should expect going forward in seniors and why Chiron is the platform to out-execute some of your peers.

A: Morning, Juan. Thanks. Listen, it's a big universe out there, and operators have lots of options. I think the way that we'll have to compete is – by delivering value as we've articulated sort of as the main mission. But I mean, you know, there's lots of considerations that go into who the real estate partner is going to be. And, you know, I think if I'm on the other side of the table, choice is good. And so we're one more choice. We'll have to win the business just like anyone else on the merits of our value proposition. And why do we think we can? I mean, you know, we talk about this a lot. uh, around the water cooler. I mean, there's a version of the universe where we're like the smallest, most relevant company in the space. And then there's the real world where we have, you know, an unsecured balance sheet and a hundred million dollars of EBITDA and a great team with good gray matter. And if I was describing that company to just a normal person, they'd say, well, it sounds like a pretty good business. It is a good business. Um, and it's possible the public market will appreciate that and we can use that tool to our advantage or, you know, or not, but, but other way, we're going to build a great business. And the focus on seniors would be on what kind of product type, um, kind of putting active adults to one side, independent assistance, as a community's markets, et cetera. What's the focus of day one? I mean, we're really focusing on, on the operator and the real estate and, and we're really looking at, uh, independent and assisted, some memory care, stay away from skilled.

Q: yeah, thank you. Good morning. I wanted to ask you on the portfolio allocation. As you build your SHOP active adult portfolio, how would the allocation look like between medical office and the in-housing part?

A: Good morning. Thanks for the question, Gaurav. A lot of that's going to be dictated by the opportunity set, so we don't have like a pie chart in mind that we're going to manage to. We're going to manage to the opportunities, um, and, and be somewhat opportunistic there. But, uh, you know, active adult in particular sort of quote unquote modern active adult, which has kind of really only been around for 10 years or so is a relatively small niche. Uh, the, the hunting grounds and seniors much, much larger, but, um, but we really like that active space. Uh, so we'll see. I mean, I, I, I wouldn't hazard a guess, to be honest.