Global Medical REIT (GMRE) 10-Q 3 Nov 15 2015 Q3 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	9 Months Ended
	Sep. 30, 2015	Nov. 03, 2015
Document and Entity Information:
Entity Registrant Name	Global Medical REIT Inc.
Entity Trading Symbol	gmre
Document Type	10-Q
Document Period End Date	Sep. 30, 2015
Amendment Flag	false
Entity Central Index Key	1,533,615
Current Fiscal Year End Date	--12-31
Entity Common Stock, Shares Outstanding		250,000
Entity Filer Category	Smaller Reporting Company
Entity Current Reporting Status	Yes
Entity Voluntary Filers	No
Entity Well-known Seasoned Issuer	No
Document Fiscal Year Focus	2,015
Document Fiscal Period Focus	Q3

Balance Sheets

Balance Sheets - USD ($)	Sep. 30, 2015	Dec. 31, 2014
Investment in real estate:
Land	$ 1,859,400	$ 572,400
Building and improvements	34,123,034	23,801,362
Total Investment in Real Estate	35,982,434	24,373,762
Less: accumulated depreciation	(776,071)	(329,580)
Investment in real estate, net	35,206,363	24,044,182
Cash and cash equivalents	300,579	301,402
Tenant receivables	25,058	0
Deferred rent receivable and other assets	1,226	2,793
Deferred financing costs, net	339,576	291,691
Total assets	35,872,802	24,640,068
Liabilities:
Accounts payable and accrued expenses	315,816	338,764
Due to related parties, net	580,283	330,768
Convertible debenture, due to majority shareholder	9,991,940	5,446,102
Notes payable to majority shareholder	388,195	38,195
Notes payable related to acquisitions	23,880,796	16,760,000
Total liabilities	35,157,030	22,913,829
Shareholders' equity:
Preferred stock, $0.001 par value, 100,000,000 shares authorized; no shares issued and outstanding at September 30, 2015 and December 31, 2014, respectively	0	0
Common stock $0.001 par value, 500,000,000 shares authorized at September 30, 2015 and December 31, 2014, respectively; 250,000 shares issued and outstanding at September 30, 2015 and December 31, 2014, respectively	250	250
Additional paid-in capital	3,011,790	3,011,790
Accumulated deficit	(2,296,268)	(1,285,801)
Total shareholders' equity	715,772	1,726,239
Total liabilities and shareholders' equity	$ 35,872,802	$ 24,640,068

Balance Sheets Parentheticals

Balance Sheets Parentheticals - $ / shares	Sep. 30, 2015	Dec. 31, 2014
Parentheticals
Preferred Stock, par value	$ 0.001	$ 0.001
Preferred Stock, shares authorized	100,000,000	100,000,000
Common Stock, par value	$ 0.001	$ 0.001
Common Stock, shares authorized	500,000,000	500,000,000
Common Stock, shares issued	250,000	250,000
Common Stock, shares outstanding	250,000	250,000

Statements of Operations (unaud

Statements of Operations (unaudited) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2015	Sep. 30, 2014
Revenue
Rental revenue	$ 482,131	$ 408,932	$ 1,392,669	$ 522,030
Other income	4,971	70	12,471	797
Total revenue	487,102	409,002	1,405,140	522,827
Expenses
Management fees	90,000	90,000	270,000	180,000
General and administrative	377,810	51,941	518,591	506,448
Depreciation expense	153,148	138,528	446,491	177,245
Interest expense	363,937	314,139	988,825	405,145
Total expenses	984,895	594,608	2,223,907	1,268,838
Net loss	$ (497,793)	$ (185,606)	$ (818,767)	$ (746,011)
Net loss per share - Basic and Diluted	$ (1.99)	$ (1.08)	$ (3.28)	$ (7.65)
Weighted average shares outstanding - Basic and Diluted	250,000	172,500	250,000	97,509

Statements of Cash Flows (unaud

Statements of Cash Flows (unaudited) - USD ($)	9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014
Operating activities
Net loss	$ (818,767)	$ (746,011)
Adjustments to reconcile net loss to net cash used in operating activities:
Depreciation expense	446,491	177,245
Amortization of deferred financing costs	89,850	36,077
Changes in operating assets and liabilities:
Tenant receivables	(25,058)	0
Deferred rent receivable and other assets	1,567	0
Accounts payable and accrued expenses	(44,248)	186,421
Accrued management fees due to related party	270,000	180,000
Net cash used in operating activities	(80,165)	(166,268)
Investing activities
Loans to related party	(71,683)	(42,915)
Purchase of land, buildings and improvements	(11,608,672)	(24,373,762)
Net cash used in investing activities	(11,680,355)	(24,416,677)
Financing activities
Loans from related parties	51,198	63,000
Proceeds from convertible debenture, due to majority shareholder	4,545,838	8,378,142
Proceeds from notes payable to majority shareholder	350,000	345,053
Payments on notes payable to majority shareholder	0	(306,858)
Proceeds from notes payable related to acquisitions	7,377,500	16,760,000
Principal payments on notes payable related to acquisitions	(256,704)	0
Dividends paid to common shareholders	(170,400)	(63,920)
Payment of deferred financing costs	(137,735)	(357,563)
Net cash provided by financing activities	11,759,697	24,817,854
Net (decrease) increase in cash and cash equivalents	(823)	234,909
Cash and cash equivalents-beginning of period	301,402	3,501
Cash and cash equivalents-end of period	300,579	238,410
Supplemental cash flow information:
Cash payments for interest	961,383	0
Noncash financing activity:
Notes payable to majority shareholder converted to equity	$ 0	$ 2,932,040

Organization

Organization	9 Months Ended
	Sep. 30, 2015
Organization
Organization	Note 1 – Organization Global Medical REIT Inc. (the “Company”) was incorporated in the state of Nevada on March 18, 2011 under the name Scoop Media, Inc. (“Scoop Media”), which was acquired by the Hong Kong company ZH International Holdings Limited (formerly known as Heng Fai Enterprises, Ltd.) in 2013. The Company changed to its current name effective January 6, 2014 in connection with its re-domestication into a Maryland corporation. The Company’s primary investor goal is to provide attractive risk-adjusted returns and maximize sustainable distributable cash flow. The Company’s principal investment strategy is to act on the opportunities created by the changing healthcare environment by acquiring, selectively developing and managing locally critical medical properties that are core to medical operator businesses and that meet our investment criteria. In general, the Company seeks to acquire or develop specialty medical properties in desirable markets with tenants who are expected to prosper in the changing healthcare delivery environment. The Company focuses on specialty medical properties, including medical office buildings, outpatient treatment and diagnostic facilities, physical group practice clinics, ambulatory surgery centers and specialty hospitals and treatment centers. On June 29, 2015, Joy Town Inc., a company incorporated in the British Virgin Islands, acquired a controlling interest in Heng Fai Enterprises, Ltd . ZH International Holdings Limited, is a Hong Kong listed company engaged in real estate development, investments, management and sales, hospitality management and investments and REIT management. ZH International Holdings Limited owns ZH USA, LLC, (formerly known as HFE USA, LLC) the Company’s majority shareholder. As of September 30, 2015,

Summary of Significant Accounti

Summary of Significant Accounting Policies	9 Months Ended
	Sep. 30, 2015
Summary of Significant Accounting Policies
Summary of Significant Accounting Policies	Note 2 – Summary of Significant Accounting Policies Basis of presentation The accompanying financial statements are unaudited and include the accounts of the Company. The accompanying financial statements have been prepared in accordance with U.S. generally accepted accounting principles (“GAAP”) and the rules and regulations of the United States Securities and Exchange Commission (“SEC”). Certain information and footnote disclosures required for annual financial statements have been condensed or excluded pursuant to SEC rules and regulations. Accordingly, the accompanying financial statements do not include all of the information and footnotes required by GAAP for complete financial statements and should be read in conjunction with the Company’s audited financial statements and notes thereto for the fiscal year ended December 31, 2014. In the opinion of management, all adjustments of a normal and recurring nature necessary for a fair presentation of the financial statements for the interim periods have been made.

Properties

Properties	9 Months Ended
	Sep. 30, 2015
Properties
Properties	Note 3 – Properties Description of Properties On September 25, 2015, the Company acquired a combined approximately 27,193 square foot surgery center and medical office building located in West Mifflin, Pennsylvania and the adjacent parking lot for approximately via The Company also owns an approximately 8,840 square foot medical office building known as the Orthopedic Surgery Center, located in Asheville, North Carolina that was acquired on September 19, 2014 for approximately $2.5 million and a 56-bed long term acute care hospital located at 1870 S 75 th On September 30, 2015, the Company entered into an asset purchase agreement with an unrelated party Star Medreal, LLC, a Texas limited liability company, to acquire an approximately 24,000 square foot acute hospital facility located in Plano, Texas, along with all real property and improvements thereto for approximately $17.5 million. Additionally, the Company is obligated to pay a development fee of $500,000. The property will be leased back via a triple net lease agreement that expires in 2035. The tenant has two successive options to renew the lease for five year periods. The terms of the lease also provide for an allowance for a 6,400 square foot expansion for an incremental amount up to $2.75 million to be paid by the Company. The acquisition will be funded by third party debt and convertible borrowings from the Company’s majority shareholder. The acquisition is expected to be completed by no later than December 31, 2015. Tenant Receivables As of September 30, 2015, the Company’s tenant receivable balance includes rent receivable from the West Mifflin facility of $13,061 that was earned since its acquisition on September 25, 2015 and rent due from the Omaha facility of $11,997 derived from a contractual rent increase that commenced in July 2015. These amounts are deemed collectible as of September 30, 2015. Deferred Rent Receivable and Other Assets As of September 30, 2015 this amount represents the Company’s deferred rent receivable balance derived from the straight-line revenue recognition from the West Mifflin facility, commencing with its acquisition on September 25, 2015.

Notes Payable Related to Acquis

Notes Payable Related to Acquisitions	9 Months Ended
	Sep. 30, 2015
Notes Payable Related to Acquisitions
Notes Payable Related to Acquisitions	Note 4 – Notes Payable Related to Acquisitions West Mifflin Note Payable In order to finance a portion of the purchase price for the West Mifflin facility, on September 25, 2015 the Company entered into a Term Loan and Security Agreement with Capital One (the “Lender”) to borrower $7,377,500 (the “Loan”). The Loan bears interest at 3.72% per annum and all unpaid interest and principal is due on September 25, 2020 (the “Maturity Date”). Interest is paid in arrears and interest payments begin on November 1, 2015, and on the first day of each calendar month thereafter. Principal payments begin on November 1, 2018 and on the first day of each calendar month thereafter based on an amortization schedule with the principal balance due on the Maturity Date. The Loan may not be prepaid in whole or in part prior to September 25, 2017, thereafter, the Company, at its option, may prepay the Loan at any time, in whole (but not in part) on at least thirty (30) calendar days but not more than sixty (60) calendar days advance written notice. The Loan has an early termination fee of two percent (2%) if prepaid prior to September 25, 2018. At closing the Company paid the Lender a non-refundable commitment fee of $73,775. If any principal, interest or other sum due by the Company is not paid on the date on which it is due, the Company is obligated to pay to the Lender an amount equal to the lesser of five percent (5%) of such unpaid sum or the maximum amount permitted by applicable laws. All fees hereunder are non-refundable and deemed fully earned when due and payable. The Term Loan and Security Agreement contains covenants that are customary for similar credit arrangements. These include covenants relating to establishment of reserves for the payment of taxes, insurance and capital replacements (under certain circumstances), maintaining a collection account, financial reporting and notification, payment of indebtedness, taxes and other obligations, and compliance with certain applicable laws. There are also financial covenants that require the Company to (i) maintain a fixed charge coverage ratio (defined as the ratio of EBITDA to fixed charges) commencing December 31, 2015 of not less than 1.00 to 1.00, (ii) not permit the ratio of EBITDA to total indebtedness as of the last day of each calendar quarter, commencing December 31, 2015 and continuing thereafter to be less than 0.09 to 1.00, and (iii) maintain operator EBITDAR as of the last day of each fiscal quarter commencing December 31, 2015 of not less than $6,000,000. The Term Loan and Security Agreement also imposes certain customary limitations and requirements on the Company with respect to, among other things, the maintenance of properties, access to real property, insurance, compliance with laws, maintenance of books and records, inspection rights, environmental matters, indemnity, healthcare operations, right of first refusal for future financing, incurrence of indebtedness and liens, the making of investments, the payment of distributions or making of other restricted payments, healthcare matters, mergers, acquisitions and dispositions of assets, and transactions with affiliates. The Term Loan and Security Agreement contains customary events of default, including, without limitation: non-payment of obligations under the Term Loan and Security Agreement when due; the material inaccuracy of any representations or warranties; a violation of covenants in the Term Loan and Security Agreement (subject, in the case of certain such covenants, to cure periods); a default related to other material debt or uninsured loss in excess of $100,000; certain events of bankruptcy or insolvency; judgments for the payment of money in excess of $100,000 in the aggregate that remains unpaid or unstayed and undischarged for a period of 30 days after the date on which the right to appeal has expired; and a change of control of the Company. The occurrence and continuance of an event of default could result in, among other things, amounts owing under the Term Loan and Security Agreement being accelerated, payment of the Early Termination Fee and the Term Loan and Security Agreement being terminated. During the continuance of any default, the applicable interest rate on all obligations owing under the Term Loan and Security Agreement is the lesser of (a) the maximum rate permitted by applicable law; or (b) 3% per annum over the current interest rate otherwise applicable. The Company incurred deferred financing costs of $137,735 related to this loan. No interest expense was incurred on the note during the three and nine months ended September 30, 2015 and 2014, respectively. As of September 30, 2015, scheduled principal payments due in each calendar year listed below are as follows: 2015 $ - 2016 - 2017 - 2018 22,044 2019 136,007 Thereafter 7,219,449 Total Future Payments $ 7,377,500 Omaha Note Payable In order to finance a portion of the purchase price for a 56-bed long term acute care hospital located in Omaha, Nebraska, on June 5, 2014 the Company entered into a Term Loan and Security Agreement with Capital One, National Association (the “Lender”) to borrower $15.06 million (the “Loan”). The Loan bears interest at 4.91% per annum and all unpaid interest and principal is due on June 5, 2017 (the “Maturity Date”). Interest is paid in arrears. Interest payments began on August 1, 2014 and are due on the first day of each calendar month thereafter. Principal payments began on January 1, 2015 and are due on the first day of each calendar month thereafter based on an amortization schedule with the principal balance due on the Maturity Date. For the nine months ended September 30, 2015 the Company made principal payments in the amount of $231,702. Interest expense on the Loan was $186,702 and $495,275 for the three and nine months ended September 30, 2015, respectively. Interest expense on the Loan was $191,576 and 244,980 for the three and nine months ended September 30, 2014, respectively. As of September 30, 2015, scheduled principal payments due in each calendar year listed below are as follows: 2015 $ 79,834 2016 325,323 2017 14,423,141 Total Future Payments $ 14,828,298 Asheville Note Payable In order to finance a portion of the purchase price of an approximately 8,840 square foot medical office building known as the Orthopedic Surgery Center, located in Asheville, North Carolina, on September 15, 2014 the Company entered into a Promissory Note with the Bank of North Carolina to borrow $1.7 million. The note bears interest on the outstanding principal balance at the simple, fixed interest rate of 4.75% per annum and all unpaid principal and interest is due on February 15, 2017. Commencing on October 15, 2014, the Company will make on the 15 th th Interest expense on the note was $20,433 and $61,101 for the three and nine months ended September 30, 2015, respectively. No interest expense was incurred on the note during the three and nine months ended September 30, 2014, respectively. As of September 30, 2015, scheduled principal payments due in each calendar year listed below are as follows: 2015 $ 12,897 2016 52,719 2017 1,609,382 Total Future Payments $ 1,674,998 Deferred Financing Costs Balance as of December 31, 2014, net $ 291,691 Deferred financing costs incurred – nine months ended September 30, 2015 137,735 Amortization expense – nine months ended September 30, 2015 (89,850) Balance as of September 30, 2015, net $ 339,576 Amortization expense was $30,257 and $89,850 for the three and nine months ended September 30, 2015, respectively. Amortization expense was $28,301 and $36,077 for the three and nine months ended September 30, 2014, respectively. A

Shareholders' Equity

Shareholders' Equity	9 Months Ended
	Sep. 30, 2015
Shareholders' Equity
Shareholders' Equity	Note 5 – Shareholders’ Equity Preferred Stock The Company’s charter authorizes the issuance of 100,000,000 shares of preferred stock, par value $0.001 per share. As of September 30, 2015 and December 31, 2014, no shares of preferred stock were issued and outstanding. Common Stock The Company has 500,000,000 of authorized shares of common stock, $0.001 par value. As of September 30, 2015 and December 31, 2014, there were 250,000 outstanding common shares. Pursuant to a previously declared dividend approved by the Board of Directors of the Company and in compliance with applicable provisions of the Maryland General Corporation Law, the Company has paid a monthly dividend of $0.0852 per share, an aggregate of $21,300 per month, each month during the period from January 1, 2015 through September 30, 2015. The September 2015 dividend amount of $21,300 was unpaid as of September 30, 2015 and therefore was accrued and included in the line item “Accounts Payable and Accrued Expenses” in the accompanying Balance Sheet as of September 30, 2015. This dividend was paid in October 2015. Accordingly, during the nine months ended September 30, 2015 the Company recorded total dividends to holders of its common stock of $191,700, of which $170,400 were paid as of September 30, 2015.

Related Party Transactions

Related Party Transactions	9 Months Ended
	Sep. 30, 2015
Related Party Transactions
Related Party Transactions	Note 6 – Related Party Transactions Management Agreement On November 10, 2014, the Company entered into a Management Agreement, with an effective date of April 1, 2014, with Inter-American Management, LLC (the “Manager”), a Delaware limited liability company and an affiliate of the Company. Allocated General and Administrative Expenses In the future, the Company may receive an allocation of general and administrative expenses from the Manager that are either clearly applicable to or were reasonably allocated to the operations of the properties. There were no allocated general and administrative expenses from the Manager for the three and nine months ended September 30, 2015 and September 30, 2014, respectively. Convertible Debenture, Due to Majority Shareholder As of September 30, 2015 and December 31, 2014, the outstanding principal balance of the Convertible Debenture was $9,991,940 and $5,446,102, respectively. During the three months ended September 30, 2015 ZH USA, LLC loaned the Company $4,545,838 to partially fund the West Mifflin transaction. Interest expense on the Convertible Debenture was $126,545 and $342,599 for the three and nine months ended September 30, 2015, respectively. Interest expense on the Convertible Debenture was $94,262 and $124,088 for the three and nine months ended September 30, 2014, respectively. As discussed in the “Notes Payable to Majority Shareholder” section below, during the nine months ended September 30, 2015, ZH USA, LLC loaned the Company a total of $350,000 in the form of notes payable in order to pay off all accrued interest and unpaid interest on the Convertible Debenture as of March 31, 2015, in the amount of approximately $341,000. Incurred and unpaid interest for the nine months ended September 30, 2015 of $235,169 is owed by the Company on the Convertible Debenture and is classified as “Accounts Payable and Accrued Expenses” on the accompanying Balance Sheets. The Company analyzed the conversion option in the Convertible Debenture for derivative accounting treatment under ASC Topic 815, “Derivatives and Hedging,” and determined that the instrument does not qualify for derivative accounting. The Company therefore performed an analysis to determine if the conversion option was subject to a beneficial conversion feature and determined that the instrument does not have a beneficial conversion feature. Notes Payable to Majority Shareholder During the nine months ended September 30, 2015, ZH USA, LLC made two loans to the Company in the amounts of $250,000 and $100,000 ($350,000 total loaned) in the form of notes payable that were primarily used to pay in full all accrued and unpaid interest on the Convertible Debenture as of March 31, 2015 in the amount of approximately $341,000. As of September 30, 2015 and December 31, 2014, the notes payable to the majority shareholder balance was $388,195 and $38,195, respectively. The notes payable balance is unsecured, due on demand, and non-interest bearing. Due to related parties, net A detail of the due to related parties, net balance as of September 30, 2015 and December 31, 2014 is as follows: September 30, 2015 December 31, 2014 Due from Manager (a) $ 114,598 $ 42,915 Due to Manager – management fees (b) (540,000) (270,000) Due to Manager – other funds (c) (139,881) (103,683) Due to affiliated REIT (c) (15,000) - Due to related parties, net $ (580,283) $ (330,768) (a) Funds loaned by the Company were primarily used by the Manager for the Asheville facility acquisition and for general corporate purposes. An additional $71,683 was loaned by the Company during the nine months ended September 30, 2015. (b) Management fees incurred by the Company and unpaid were $270,000 during the nine months ended September 30, 2015. (c) Fund received by the Company were primarily used for general corporate purposes. An additional $51,198 was received by the Company during the nine months ended September 30, 2015.

Rental Revenue

Rental Revenue	9 Months Ended
	Sep. 30, 2015
Rental Revenue
Rental Revenue	Note 7 – Rental Revenue The aggregate annual minimum cash to be received by the Company on the noncancelable operating leases related to the Omaha, Asheville, and West Mifflin facilities in effect as of September 30, 2015, are as follows in the calendar years listed below. 2015 $ 663,775 2016 2,685,284 2017 2,548,786 2018 2,561,584 2019 2,630,556 Thereafter 17,574,709 Total Future Receipts $ 28,664,694

Omaha Land Lease Rent Expense

Omaha Land Lease Rent Expense	9 Months Ended
	Sep. 30, 2015
Omaha Land Lease Rent Expense
Omaha Land Lease Rent Expense	Note 8 – Omaha Land Lease Rent Expense The Omaha facility land lease currently expires in 2033, subject to future renewal options of up to 50 years by the Company. Under the terms of the land lease, annual rents increase 12.5% every fifth anniversary of the lease and therefore rental expense is recognized by the Company on a straight line basis. During the three and nine months ended September 30, 2015 the Company expensed a total of $46,768 and $61,738 related to this land lease, respectively, which is included in the “General and Administrative” expense line item in the accompanying Statements of Operations. The Company expensed $14,969 related to the land lease during the three and nine months ended September 30, 2014. The aggregate minimum cash payments to be made by the Company on the non-cancelable Omaha facility related land lease in effect as of September 30, 2015, are as follows in the calendar years listed below. 2015 $ 14,969 2016 59,877 2017 59,877 2018 63,619 2019 67,362 Thereafter 1,040,948 Total Future Payments $ 1,306,652

Commitments And Contingencies

Commitments And Contingencies	9 Months Ended
	Sep. 30, 2015
Commitments And Contingencies
Commitments And Contingencies	Note 9 – Commitments and Contingencies Litigation The Company is not presently subject to any material litigation nor, to its knowledge, is any material litigation threatened against the Company, which if determined unfavorably to the Company, would have a material adverse effect on the Company’s financial position, results of operations, or cash flows. Environmental Matters The Company follows a policy of monitoring its properties for the presence of hazardous or toxic substances. While there can be no assurance that a material environmental liability does not exist at its properties, the Company is not currently aware of any environmental liability with respect to its properties that would have a material effect on its financial position, results of operations, or cash flows. Additionally, the Company is not aware of any material environmental liability or any unasserted claim or assessment with respect to an environmental liability that management believes would require additional disclosure or the recording of a loss contingency.

Subsequent Events

Subsequent Events	9 Months Ended
	Sep. 30, 2015
Subsequent Events:
Subsequent Events	Note 10 – Subsequent Events

Accounting Policies (Policies)

Accounting Policies (Policies)	9 Months Ended
	Sep. 30, 2015
Accounting Policies (Policies)
Basis of presentation	Basis of presentation The accompanying financial statements are unaudited and include the accounts of the Company. The accompanying financial statements have been prepared in accordance with U.S. generally accepted accounting principles (“GAAP”) and the rules and regulations of the United States Securities and Exchange Commission (“SEC”). Certain information and footnote disclosures required for annual financial statements have been condensed or excluded pursuant to SEC rules and regulations. Accordingly, the accompanying financial statements do not include all of the information and footnotes required by GAAP for complete financial statements and should be read in conjunction with the Company’s audited financial statements and notes thereto for the fiscal year ended December 31, 2014. In the opinion of management, all adjustments of a normal and recurring nature necessary for a fair presentation of the financial statements for the interim periods have been made.

Schedule of Note Payable Relate

Schedule of Note Payable Related to Acquistion (Tables)	9 Months Ended
	Sep. 30, 2015
Schedule of Note Payable Related to Acquistion (Tables):
Schedule of West Mifflin Note Payable	As of September 30, 2015, scheduled principal payments due in each calendar year listed below are as follows:
Schedule of Omaha Note Payable	As of September 30, 2015, scheduled principal payments due in each calendar year listed below are as follows: 2015 $ 79,834 2016 325,323 2017 14,423,141 Total Future Payments $ 14,828,298
Schedule of Asheville Note Payable (Tables)	As of September 30, 2015, scheduled principal payments due in each calendar year listed below are as follows: 2015 $ 12,897 2016 52,719 2017 1,609,382 Total Future Payments $ 1,674,998

Schedule of Deferred Financing

Schedule of Deferred Financing Costs (Tables)	9 Months Ended
	Sep. 30, 2015
Schedule of Deferred Financing Costs
Schedule of Deferred Financing Costs	The Company incurred deferred financing costs related to the notes payable obtained for acquisitions. A rollforward of the deferred financing cost balance as of September 30, 2015 is as follows: Balance as of December 31, 2014, net $ 291,691 Deferred financing costs incurred – nine months ended September 30, 2015 137,735 Amortization expense – nine months ended September 30, 2015 (89,850) Balance as of September 30, 2015, net $ 339,576

Schedule of Related Party Trans

Schedule of Related Party Transactions (Tables)	9 Months Ended
	Sep. 30, 2015
Schedule of Related Party Transactions
Schedule of Related Party Transactions	A detail of the due to related parties, net balance as of September 30, 2015 and December 31, 2014 is as follows: September 30, 2015 December 31, 2014 Due from Manager (a) $ 114,598 $ 42,915 Due to Manager – management fees (b) (540,000) (270,000) Due to Manager – other funds (c) (139,881) (103,683) Due to affiliated REIT (c) (15,000) - Due to related parties, net $ (580,283) $ (330,768)

Schedule Of Rental Revenue (Tab

Schedule Of Rental Revenue (Tables)	9 Months Ended
	Sep. 30, 2015
Schedule Of Rental Revenue
Schedule Of Rental Revenue	The aggregate annual minimum cash to be received by the Company on the noncancelable operating leases related to the Omaha, Asheville, and West Mifflin facilities in effect as of September 30, 2015, are as follows in the calendar years listed below. 2015 $ 663,775 2016 2,685,284 2017 2,548,786 2018 2,561,584 2019 2,630,556 Thereafter 17,574,709 Total Future Receipts $ 28,664,694

Schedule of Rent Expense (Table

Schedule of Rent Expense (Tables)	9 Months Ended
	Sep. 30, 2015
Schedule of Rent Expense
Schedule of Rent Expense	The aggregate minimum cash payments to be made by the Company on the non-cancelable Omaha facility related land lease in effect as of September 30, 2015, are as follows in the calendar years listed below. 2015 $ 14,969 2016 59,877 2017 59,877 2018 63,619 2019 67,362 Thereafter 1,040,948 Total Future Payments $ 1,306,652

ORGANIZATION (Details)

ORGANIZATION (Details)	Sep. 30, 2015shares
ORGANIZATION DETAILS
LLC owns an aggregate of Company's outstanding common stock.	248,825
LLC owns an aggregate of Company's outstanding common stock in percentage	99.50%

Description Of Properties (Deta

Description Of Properties (Details) - USD ($)	Sep. 30, 2015	Sep. 25, 2015	Sep. 19, 2014	Jun. 05, 2014
Description Of Properties
Company acquired 27,193 square foot surgery center and medical office building and adjacent parking lot for		$ 11,350,000
Company acquired 27,193 square foot surgery center and medical office building and adjacent parking lot after including legal and related fees		$ 11,600,000
Base rent increases by each lease		2.00%
Company borrowed from Capital One, National Association		$ 7,377,500
Convertible Debenture issued to its majority shareholder total		$ 4,545,838
Company owns 8,840 square foot medical office building in Asheville, was acquired for			$ 2,500,000
56-bed long term acute care hospital in Omaha was acquired for				$ 21,900,000
Company entered into an asset purchase agreement with an unrelated party	$ 17,500,000
Company is obligated to pay development fee	500,000
Incremental amount to be paid for expansion	$ 2,750,000

Tenant Receivables (Details)

Tenant Receivables (Details)	Sep. 30, 2015USD ($)
Tenant Receivables
Tenant receivable balance	$ 13,061
Rent due from Omaha facility	$ 11,997

West Mifflin Note Payable (Deta

West Mifflin Note Payable (Details) - USD ($)	Dec. 31, 2015	Sep. 30, 2015	Sep. 25, 2015
West Mifflin Note Payable
Company entered into a Term Loan and Security Agreement with Capital One			$ 7,377,500
Loan bears interest per annum			3.72%
Loan has an early termination fee			2.00%
Company paid Lender a non-refundable commitment fee			$ 73,775
Company is obligated to pay to the Lender in percentage if amount due not paid			5.00%
Minimum ratio of EBITDA	$ 1
Maximum ratio of EBITDA	1
Minimum ratio of EBITDA to total indebtedness	0.09
Maximum ratio of EBITDA to total indebtedness	1
Operator EBITDAR as of last day of fiscal quarter	$ 6,000,000
Uninsured loss in excess			$ 100,000
Judgments for the payment of money in excess			$ 100,000
Company incurred deferred financing costs related to loan.		$ 137,735

Scheduled Principal Payments Du

Scheduled Principal Payments Due On West Mifflin Note Payable (Details)	Sep. 30, 2015USD ($)
Scheduled Principal Payments Due On West Mifflin Note Payable
Principal Payments due on West Mifflin Note Payable 2015	$ 0
Principal Payments due on West Mifflin Note Payable 2016	0
Principal Payments due on West Mifflin Note Payable 2017	0
Principal Payments due on West Mifflin Note Payable 2018	22,044
Principal Payments due on West Mifflin Note Payable 2019	136,007
Principal Payments due on West Mifflin Note Payable Thereafter	7,219,449
Total Future Payments due on West Mifflin Note Payable	$ 7,377,500

Omaha Note Payable (Details)

Omaha Note Payable (Details) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2015	Sep. 30, 2014	Jun. 05, 2014
Omaha Note Payable
Company entered into a Term Loan and Security Agreement with Capital One					$ 15,060,000
Loan bears interest per annum					4.91%
Company made principal payments			$ 231,702
Interest expense on Loan	$ 186,702	$ 191,576	$ 495,275	$ 244,980

Scheduled Principal Payments 28

Scheduled Principal Payments Due On Omaha Note Payable (Details)	Sep. 30, 2015USD ($)
Scheduled Principal Payments Due On Omaha Note Payable
Principal Payments due on Omaha Note Payable 2015	$ 79,834
Principal Payments due on Omaha Note Payable 2016	325,323
Principal Payments due on Omaha Note Payable 2017	14,423,141
Total Future Payments due on Omaha Note Payable	$ 14,828,298

Asheville Note Payable (Details

Asheville Note Payable (Details) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2015	Sep. 30, 2014	Sep. 15, 2014
Asheville Note Payable
Company entered into a Term Loan and Security Agreement with Capital One					$ 1,700,000
Loan bears interest per annum					4.75%
Monthly amortizing payments each on 15th day			$ 10,986
Company made principal payments			25,002
Interest expense on Loan	$ 20,433	$ 0	$ 61,101	$ 0

Scheduled Principal Payments 30

Scheduled Principal Payments Due On Asheville Note Payable (Details)	Sep. 30, 2015USD ($)
Scheduled Principal Payments Due On Asheville Note Payable
Principal Payments due on Asheville Note Payable 2015	$ 12,897
Principal Payments due on Asheville Note Payable 2016	52,719
Principal Payments due on Asheville Note Payable 2017	1,609,382
Total Future Payments due on Asheville Note Payable	$ 1,674,998

Deferred Financing Costs (Detai

Deferred Financing Costs (Details)	Sep. 30, 2015USD ($)
Deferred Financing Costs
Balance as of December 31, 2014, net	$ 291,691
Deferred financing costs incurred - nine months ended September 30, 2015	137,735
Amortization expense - nine months ended September 30, 2015	(89,850)
Balance as of September 30, 2015, net	$ 339,576

Amortization (Details)

Amortization (Details) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2015	Sep. 30, 2014
Amortization {1}
Amortization expense	$ 30,257	$ 28,301	$ 89,850	$ 36,077

STOCK TRANSACTIONS (Details)

STOCK TRANSACTIONS (Details)	Sep. 30, 2015USD ($)$ / sharesshares
Stock Transactions Details
Shares of preferred stock authorized	100,000,000
Shares of preferred stock, par value | $ / shares	$ 0.001
Shares of common stock authorized	500,000,000
Shares of common stock, par value | $ / shares	$ 0.001
Outstanding common stock shares	250,000
Company has paid a monthly dividend per share | $ / shares	$ 0.0852
Company has paid a monthly dividend per month | $	$ 21,300
Dividend amount was unpaid | $	$ 21,300
Company recorded total dividends to holders of its common stock	191,700
Company recorded total dividends to holders of its common stock were paid | $	$ 170,400

Related Party Transactions (Det

Related Party Transactions (Details) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2015	Sep. 30, 2014	Dec. 31, 2014	Nov. 10, 2014
Management agreement details
Management fees	$ 90,000	$ 90,000	$ 270,000	$ 180,000
Base management fee equal to Company's net asset value per annum in percentage						2.00%
Base management fee equal to Company's net asset value payable per calendar month						$ 30,000
Cumulative management fees	$ 540,000		$ 540,000		$ 270,000

Convertible Debentures and Note

Convertible Debentures and Notes payables (Details) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2015	Sep. 30, 2014	Mar. 31, 2015	Dec. 31, 2014
Convertible Debenture Due to Majority Shareholder
Outstanding principal balance of the Convertible Debenture	$ 9,991,940		$ 9,991,940			$ 5,446,102
ZH USA, LLC loaned the Company to partially fund the West Mifflin transaction	4,545,838
Interest expense on the Convertible Debenture	126,545	$ 94,262	342,599	$ 124,088
Incurred and unpaid interest			235,169
Notes Payable to Majority Shareholder
ZH USA, LLC made one loan to the company			250,000
ZH USA, LLC made second loan to the company			100,000
ZH USA, LLC made two loans to the Company total			350,000
Accrued and unpaid interest paid off on the Convertible Debenture					$ 341,000
Notes payable to the majority shareholder balance	$ 388,195		$ 388,195			$ 38,195

Due To Related Parties Net Bala

Due To Related Parties Net Balance (Details) - USD ($)	Sep. 30, 2015	Dec. 31, 2014
Due To Related Parties Net Balance
Due from Manager (a)	$ 114,598	$ 42,915
Due to Manager - management fees (b)	(540,000)	(270,000)
Due to Manager - other funds (c)	(139,881)	(103,683)
Due to affiliated REIT (c)	(15,000)
Due to related parties, net	(580,283)	$ (330,768)
Due to related parties
Additional was loaned by the Company	71,683
Management fees incurred by the Company and unpaid	270,000
Additional was received by the Company	$ 51,198

Rental Revenue (Details)

Rental Revenue (Details)	Sep. 30, 2015USD ($)
Rental Revenue Details
Operating lease 2015	$ 663,775
Operating lease 2016	2,685,284
Operating lease 2017	2,548,786
Operating lease 2018	2,561,584
Operating lease 2019	2,630,556
Operating lease Thereafter	17,574,709
TotalOperating lease Future Receipts	$ 28,664,694

Land Lease Rent Expense (Detail

Land Lease Rent Expense (Details) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2015	Sep. 30, 2014
Land Lease Rent Expense
Annual rents increase			12.50%
Company expensed a total related to land lease	$ 46,768	$ 14,969	$ 61,738	$ 14,969

Land Lease (Details)

Land Lease (Details)	Sep. 30, 2015USD ($)
Land Lease
Land Lease 2015	$ 14,969
Land Lease 2016	59,877
Land Lease 2017	59,877
Land Lease 2018	63,619
Land Lease 2019	67,362
Land Lease Thereafter	1,040,948
TotalLand Lease Future Receipts	$ 1,306,652

Subsequent Events (Details)

Subsequent Events (Details) - USD ($)	Oct. 16, 2015	Oct. 06, 2015
SUBSEQUENT EVENTS TRANSACTIONS
Company entered into an asset purchase agreement with an unrelated party R&K Healthcare Real Estate, L.L.C		$ 20,500,000
Company declared a dividend per share payable to the holders of its common stock	$ 0.0852
Aggregate amount of the dividend	$ 21,300