GMRE - Earnings call transcript Q2 2019 | Global Medical REIT Inc.

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Operator

Good morning, ladies and gentlemen, and welcome to Global Medical REIT's Second Quarter 2019 Earnings Conference Call. At this time, all lines have been placed in listen-only mode. Please note that today's conference call is being recorded with the webcast replay available for the next 90 days. The dial-in details for the replay can be found in yesterday's press release and can be obtained from the Investors section of the company's website at www.globalmedicalreit.com. After our speakers' remarks, there will be a question-and-answer period [Operator Instructions]

conference recorded. this reminder, a is being As I Medical Jensen. REIT's turn the to Global conference over Investor would now Relations representative, Mary

Mary Jensen

you, announced everyone. closed, morning, and X results operator. after June X Thank market XX, ended the XXXX. for Last the Global operating its night, REIT months and financial Medical Good

identified any Private and statements terms protected is project, may Act similar phrases expect, of of forecasts Reform will, the believe, herein the intend, contained statements the are statements created forward-looking as estimate, assumptions Litigation intent other considered and forward-looking thereby. and be within by and future and Securities it such results. phrases, use of the could, predict, continue safe such harbor Certain be including terms may, meaning by company's that any of statements the plan, These should, to anticipate, references XXXX,

herein, any or industry activity, on future regarding performance regarding pipeline future impact tenants; activity; and our any any future adjusted future expenses, concerning future our conditions Except acquisition dividend cash our strategies set operations, information, regarding their including plans, statement regulatory not business; statements. financial items, and operations, forth matters and funds our payments; and revenues, of statements are any expected current AFFO; any or for of from but our and opportunities raising forecasts including from to, economic operations for acquisition capital regarding about or the operating or objectives or other FFO, including, changes information limited funds and and flow prospective or any forward-looking historical statements results, statements projections statement

and to our are and estimates risks uncertainties. are statements based and current expectations, forward-looking These subject certain on assumptions

in statements Although we assumed estimates differ those statements. materially our expectations, from the assumptions reasonable, projected forward-looking and or of believe any our results in actual are could forward-looking reflected that

reports contained differ or report Form in funds for from set due are adjusted we financial projections on realized results the may and risk States Commission. Factors or to, be lower-than-anticipated from be operations, not in XX-Q, or forth among including the revenues could our Form Important not are that elsewhere of things, Risk or materially in and other with pipeline from Exchange our Securities filed We annual These expenses future. FFO, actual the completing projections higher-than-anticipated funds do forward-looking statements and and not the or we factors undertake no statements. that operations, may cause reports XX-K risks our obligation update United our to the estimates projections, successful to the acquisitions or in that quarterly dispositions intend investment or factors forward-looking identified of on or section in in include and pursue all we any have AFFO,

I'd Jeff go Officer Chief that, of the to Global Please Executive With like Busch, REIT. Jeff. turn call ahead, over Medical to

Jeff Busch

Thank you, call. to everyone, our and Mary, welcome,

Alfonzo me our Officer. Officer; Investment Joining are Leon, and our Financial Bob today Chief Kiernan, Chief

update. and operational second a plans. of XXXX how will will the review with acquisition progressing and with of a Bob update review provide we strategic and provide company's Today, I will first with are results, follow on Alfonzo quarter an activities a our financial market half

X portfolio public We the are third our very pleased X anniversary last are year. year with over far years, marked company. the July have And we progress making a so we this as medical through real diligence. with have estate sourcing activity a focused from grown our prudent to due strategy, Through acquisition $XXX million impressive million $XX acquisitions, demonstrated today. we coupled and disciplined

equity on raising another of and or purchase and and we by We by $XXX $XX million these borrowing have have under increased since During the contract on our price funded announced million. of an previously million. acquisitions portfolio the quarter, properties closed X capacity closed IRF over aggregate $XX

goal Our diligence sourcing due through portfolio and to proven acquisition estate continue expand our real strategy. our our is to

yesterday, of believe GMRE all sustainable indices total which return the during shareholders, primary lead this of generated flow dividend XX.X%, a period. shareholder increases to portfolio As REIT IPO, in support to cash value. from has continues outperform since and our of to over continued our our We will

that, With regarding financial Bob CFO, I over provide call to quarter our will details turn would highlights. second like to the the Kiernan, who

Robert Kiernan

total ended via from we continued $XX.X of revenue of our of our our increased the release XXXX. Yesterday, financial million growth investment and reported press quarter simultaneous in and package positive June of Jeff. portfolio, of for million second second months in earnings the $XX.X to you, XXXX, the X results the website. Thank the Reflecting X our posting impact XX, up XXXX, our quarter

second to first compared XXXX. total million $XXX,XXX to the rental quarter this of revenue half $XX.X the In half of Same-store XXXX. million, $XX.X quarter of or XXXX on first of the the from increased year, X.X% in a cash increased up during second basis, revenue,

the XXXX, half to on first when of half revenue, same-store During rental the cash or increased XXXX. basis, first X.X% compared $XXX,XXX of a

XXXX Total $XX.X for the $XX.X increased in XXXX. expenses quarter first the up from million second to million, of quarter of

million first the of XXXX. of total to $XX.X in expenses million, the XXXX, first For up increased $XX.X half from half

as well of acquiring each period as expenses our we Depreciation actively remain interest components as expense total expenses large properties. continue for and amortization

to XXXX, June second due noncash compensation months The expense. period $X.X in the during million the $XXX,XXX same decreased XXXX. million of quarter decrease second LTIP to of in the XXXX. expenses to The XXXX quarterly decline the quarter was for compensation to XX, LTIP compared X $X.X G&A $X.X ended in a was expense million for compared

to also increased compensation costs compared million months months for million million the were X the XXXX. $X.X to $X.X $X.X months was the June attributable to ended case this comparable increase our primarily in million to June period. for XX, specifically the XXXX compared XXXX, For X stock XX, costs, G&A X LTIP-related in of ended $X.X first The XXXX

stock XXXX, our average $XXX,XXX that of will for quarter around second the the compensation estimate year. $X.X we per and full to million costs forward Looking half

first were slightly will we $XXX,XXX compared approximately at of to down to second quarter. these Our looking continue run costs under that cash just XXXX the quarter. estimate per quarter G&A And $XXX,XXX ahead, expenses

Depreciation the expense $X.X are quarter. the in items quarter year XXXX second quarter, again, expense our million of our and $X.X interest million was X correlated in activity. both largest expense line the with positively in were, prior acquisition Depreciation second versus

Interest in XXXX expense quarter $X.X of to million $X.X million the of the second was quarter compared second XXXX. for

first year-over-year $X.X of average XXXX, rates half acquisitions. were to of used was the by to first $X.X compared in million higher of interest expense finance higher the the million For proceeds driven XXXX. half expense interest borrowings, and increase in property interest was which our The

quarter was X.XX%, second the as average of end Our average rate borrowing of and of the quarter rate during XXXX our was the X.XX%.

a stockholders the second compared of Our quarter was to $XX,XXX net the in attributable XXXX income common loss second quarter for of $XXX,XXX net of to last year.

to XXXX, was XXXX. half the million our the X compared income net in $XXX,XXX first of first For of $X.X months

AFFO both half of XXXX. the of In and down the the in compared Our FFO quarter, $X.XX share, per AFFO quarter our $X.XX each FFO per down from for share per the first XXXX. XXXX, per $X.XX first flat compared the $X.XX $X.XX to was second of and of current to second from quarter when the share were of share year half prior XXXX our of quarter was in

acquisition and our Our share activities ended a negatively raising funds the June by resulting per activity. capital from operations and XX, X recent were AFFO support short-term to X for on our dilution basis XXXX, months impacted from

However, leverage we believe these these long-term activities a we positive proceeds capital fully this and put will FFO in to accretive on work impact as have long-term AFFO and acquisition.

to sheet. balance Moving on the

in was million, of June $XXX million increase year-end of XXXX. an As real XXXX, from gross XX, our $XXX estate investment

side Looking liability of balance at sheet. the our

as costs As net our of rate balance on and December our $XXX.X basis, $XXX.X gross XXXX. credit of activity. million fixed $XXX includes million XXXX, our a a our million discounts of debt June to acquisition drawn notes to at deferred ongoing and June This payable. debt total $XX result compares XX, unamortized facility XX of XX, total increased of million debt, our On

On feature million, of our $XXX partial feature the credit April million XX, loan facility of $XXX component exercised accordion we The in under million borrowing total to accordion term facility. million. and to exercise million the from $XXX XXXX, the of facility $XXX the increased the credit the $XX credit capacity

As we approaches options including look discussing potential currently within both credit on facility. credit, forward our debt prospective we're related financing, outside and to

well continue to Our for acquisitions as evolve. positioning as gains position ourselves primary future credit we from to as quality the company projected benefit is goal here to well

per at million shares share. offering price unit shares a of an X.X average $XX public share, so issuances $XX issuances Regarding million. equity generating this of through X.X equity, an include of at-the-market of stock of per total we've gross the company's at $XX.XX price stock million, average and common of in through raised common gross per a underwritten at of price offering of program offering $X.XX offering stock common generating year, OP million a combination of million share, These proceeds $X.XX of $XX an proceeds far

with issued medical valued facility we $XXX,XXX XX,XXX in connection acquisition. addition, at a OP In units

will portfolio. of who Officer, I provide our turn investment GMRE's will things Alfonzo now landscape With overview to Investment in Chief over that, an the Leon,

Alfonzo Leon

on real XXX assembled a exceptional net triple long-term to estate, above since we leases, rates health we Bob. this market average. X providers have the you, points of Thank did years In at basis our XXX care are IPO, care that portfolio cap the leased and health great

is to helping built more efforts invested I source recognized. process, all the great are What exceptional, relationships exclusive REIT, see it am and this accomplished us network is build and we've have work we hard our the beginning of of get are proud to we've that to in a deals.

June across XX leased in is tenants our of million states. well XX, of $XX to diversified rental XX revenue XX As properties

and with XXX% square a cap of foot of years average a term per year. average million X.X weighted X.X% Our lease rate escalations X.X portfolio X.X% leased of is rent at

XX% absolute is on As are basis of of of net zero triple an basis. net triple landlord and on with all a capital the obligations balance portfolio our rents, leases percentage expense

providers medical in opportunistically and real million with deals outpatient million strategy their focus estate capital markets, not high-quality to focus $XX respective care desirable secondary fields. in acquire knowledge $XX acquiring We returns estate, accretively. our million the health risk-adjusted allow in IPO. leaders facilities We care facilities has buying leverage our at changed million rates Our core treatment tertiary are to of that on in typically that real since range. inpatient We and office good invest $X to and primarily $XX us lease range the profitable on to and health identify experience cap

for with strategic build to ample the and us a to to our deals. strategy, platform pipeline maintain a for built our tirelessly ability outstanding million With gives shareholders robust this leased be work grow great built growth. acquire to have have portfolio, $XXX which We diversified opportunities in we There and our deals portfolio very be to we an continues these deals, source, and and of underwrite to market tenants. selective the

Over Over XX% are of practices system. both XX% established for small, health to of their their like systems them fields and Regional, our and targets locally care operators in Memorial private Rochester Orlando tenants communities, the hospital our systems like group balance M&A BaX-rated tenants essential profitable The Health, not-for-profit Prospect Piedmont, of USPI are a profit Trinity, provide consolidators. that leaders are A-rated are Geisinger, that and Kindred, dominant for attractive large Encompass, of physician making include Health, and which tenants that is equity expertise.

the part Center, in Oklahoma tenanted Arizona, and Medical Vegas, by of our City, Health of Encompass Kindred cash at new System; in located included tenanted feet X of Regional hospitals, Health. a $XX in second Saint to Nevada, X investing -- Network; totaling inpatient by Oklahoma Health rehab square venture; Rehabilitation by part hospitals Trinity joint XX-month activity. Hospitals, rehab property yield facilities tenanted Curahealth Oklahoma, Joseph We which Bend, by quarter tenanted Indiana, and busy a on acquisition of The X.X%. Moving million South forward had now XXX,XXX Surprise, Las Mercy Cobalt portfolio is

XXX,XXX this in less July we square million on Building already in-going cap Diego, property we is region a built San This an of and than miles approximately XX,XXX the California, X for third $XXX Center an center million in X.X%. in in X.X%. of affluent closed square-foot in $XX.X X city Palomar located Marcos, County Medical rate XXXX. quarter yield from Northern acquisitions an totaling deals of the the On momentum, at cancer $XX acquired or San almost XX, have feet average on million

short, property lease built and Excellence, for X% the oncology XXX% with service, and Research X is remaining with and largest years private San cCARE for was increases. in in term California X is offices rent and Fresno. The California cCARE Associates in practice with annual of by full offices XXXX X.X occupied Diego Cancer in hematology

portfolio Health Care X.X years by McLaren a we mile near rent owned million Lansing, acquired away hospital The new increases. rate of two partnership was medical bed the in-going and a physicians, center Capital, USPI. August and with $XX local and McLaren Health X, located an Michigan lease currently annual square XX,XXX X X Michigan portfolio construction for On XXX million among for University cap X.X% foot average and This term is office surgery state Michigan, of the a average weighted State in of from under X.X% University. $XXX buildings portfolio State consisting in

under a a portfolio price also locally This on CIMA, $X.X MOB fourth multi-specialty providers. with are at dominant million with this We XX contract anchored currently a by group. is of group

On suburb in X.X%. Chicago of physical The square opportunity Chicago August office and XX affluent an and for a building space groups and $X.X the foot buildings at clinic, a attractive X/X XXX is replacement in a acquire medical in-going per below is over Illinois for therapy the occupies $XXX Joint area a multi-tenant sourced which of acquired Bone rate of well square largest This by great and X, an is off-market cap in submarket in Illinois, Bone anchored foot, XX,XXX imaging. who of Joint, Bannockburn, property price Illinois orthopedic an affluent million of with property was one to very the unique locations. cost. physicians we metro

X.X% Care for acquired an we and includes Illinois, purchase escalators. affiliates of Health are Care outpatient Clinic occupied XX,XXX Currently, X% medical an X, contract. Dreyer system has $XX.X and a in-going medical and in in foot million the XXXX cap largest X This AAX square property Aurora is and and that advocate Aurora, XXX% August rating of from On XXth under is built annual facility deals rate we by Health credit additional Moody's. Aurora Advocate have adjacent is to not-for-profit health and was center.

multi-tenant leased significant price Livonia, Detroit at discount We cost an X.X%. medical are under The building purchase located square a Suburb in representing contract is property affluent office XX,XXX to by anchored to million system. Western acquire foot $XX.X of going-in a and Michigan, replacement large purchase is cap of a and approximately XX% a a rate of health

locations with will $X.X We located Gilbert, property acquire medical rate a across expanding the X% square a our in a a XX,XXX XX office price going-in be surrounding increases. at Phoenix, footprint surgical focused XX MSA, foot under by contract with in The purchase leading to covenant, X.X% purchase and Arizona, property operator of million are of areas annual states. leased cap

located from price purchase outside Virginia, under and million rate in-going contract at XX XX,XXX University West X.X% average of West to increase. of acquire X% facility Morgantown, square foot medical annual a a miles $X.X just with cap purchase are Virginia We an an

care was asset UnitedHealthcare the urgent Group and MedExpress, constructed earlier with The XXX serves than year this more a nationwide. of subsidiary clinics headquarters as for

leased specialty A Beaumont, million surgical of at $XX.X XXX% medical rate Texas. to purchase was in-going and Southeast in Class purchase an center We property Texas, of the price of a X.X%. XXXX hospital are an foot to square The built contract acquire cap XX,XXX under in is and

is a deals diligent some due of a these of the process. might of As these during out timing and always, contract unpredictable, fall deals closing the

outpatient namely and high-quality All facilities. profitable office in providers deals tertiary focus in-process closed fields. medical inpatient to acquiring their line on focus markets core and and acquire in and are estate secondary with strategy, our of to desirable these health on buying real are We facilities leaders that and care respective primarily leased opportunistically treatment and

$XXX be allows returns. keep pipeline knowledge higher constantly of This leverage credit of or pipeline sourcing deals robust strategic $XXX health process We our rates all to deals times. portfolio of us less find our are in new with at to to million million offer at X% growth. We and our that deals good selective cap of care to risk-adjusted

and has care care desirable thesis care offering become fact very not X platform, flows averaged have estate billion estate cycles. a deals in through is we've Health to outstanding that over acquiring believe IPO, real spending sourcing our volumes built Health Since health excellent class continue GMRE asset discretionary. last $X our is various billion quarter fundamentals transaction stable the cash economic real acquisition and uniquely we $X to positioned this per is niche. with the investors Supporting an years.

quality is find portfolio health essential for care to to communities a are their goal providers durable Our that diversified build to our shareholders. and

happy take we that, With be your will questions. to

Operator

this you. session. line we from question. Janney Scott. the your question [Operator Rob Instructions]Our Thank with comes Montgomery conducting Stevenson question-and-answer At of proceed a first be will time, of Please

RobStevenson

Good those those there you morning, incremental one. rental about to normal in guys? guys. talked sub if rate it returns and you and about the acquisitions you a made just made bit, couple prices the would specifically is those the quarter, why guys And X% assets juice Can sense talk a Arizona other upsides but you cap any bumps? the rate annual why than little Oklahoma second Alfonzo, of that

Alfonzo Leon

Sure.

of on we average a as things And rates out. of are basis. X.X% of was month. a the point It to the specific forward a report cap a So part was couple portfolio, and

But -- at time, point we we which report report at an look go-forward basis. look we look we a bit acquisition at creates want to things, portfolio. year it, a highlight that things I average on at And was when and an was of disconnect. when X.X% it the it that we a of from So But that, we of a at part on cap portfolio, and a little perspective, look basis,

Rob Stevenson

at mean of substantially? a and that then a is in to assets, that by those about type going a is X.XX% I mean, time, are I going X.X% X.X% to talking year? X.XX% point And up there -- we Or thing? for a next Does go

Robert Kiernan

I by year portfolio but property, in to X. from property the don't X.X% have it goes X.X%

Rob Stevenson

Okay.

So meaningful, Bob.

the track the given already Has XXXX. current discussion everything? then, on laying of the assets either that And gross something the next internalization year this year? helpful. billion Board and in That's early Jeff, acquisition hit early groundwork probably you're pace, $X that happens Okay. started Or to is or for later

Jeff Busch

as others know, expecting we're and the to the been discussions, needs has more there has Internalization be certain discussion finishing has of now and raised, been there go been XXXX. capital process. -- that contract, to stage XXXX process. opposed is to Since the among there we're been you among Board, discussions a through Yes. legal legal is as management and something our presentations in the Board, in the has amount, a acquisition be gets to has heavy to that there in But what

Rob Stevenson

Thanks Okay. guys.

Operator

comes Drew Babin of line next Please from your with question. W. Company. Robert Baird Our & proceed the question of

Andrew Babin

the the supplemental. reported on Question coverage morning. good in Hey, ratios

a ratios anything or down. beneath kind with some acquisition of inpatient activity of else Just were curious there. influence or of influenced if that was whether on surgical a were there's hospitals same-store or rehab that bit volatility just external I wondering basis. quite something the noticed I growth those normal kind just up the by

Jeff Busch

I'm ratios. sure coverage our normal an most had just it's say, of the not have to going much impact volatility, how acquisitions I'm But volatility. likely on

Andrew Babin

the deal as acquisition Okay. now. there? questions I neighborhood happen quarter what curious you happened I just but was I curious under what guess, not preemptively, may most outpatient to small contract. clinic answered being see that last Alfonzo, was have or don't just may my listed And that of

Alfonzo Leon

Yes.

not we comfortable our with renewal the So probably. during we that interview, were tenant discovered

walked out. we So

Andrew Babin

Okay.

That’s be will important. you. Thank that for Given all me.

Operator

of line Vanacore Our with from proceed the Chad next Stifel. question. question your of comes Please

Chad Vanacore

right. All Thanks.

and us an what financing. So debt where capital you thinking and idea you mentioned your Can financing about? give of plans you're specifically are

Robert Kiernan

Chad. Sure. Sure,

on got in facility, as some So within to facility pressure develop forward would million point give look we XXXX exercise -- $XX on forward. just potential debt potential we're go some financing we lenders remaining looking And side, the credit of discussions just the we're the some to to that then off any first, look at that. flexibility it. with away looking secondly, we've at the just and the And accordion debt facility, as credit beyond from beyond to some the alternative we take

on in work general debt the to and right capital. the that's side, that's process So now idea relative a equity

being really wave being relative expect as more of it's forward acquisitions prudent the and when future look we think to up that at we next timing acquisition. about that I go of prudent on when we front,

Chad Vanacore

Okay.

or So alternatives still have. about you that below, debt, I unsecured just debt we looking Are thinking that secured more guess?

Robert Kiernan

CMBS continue larger looking and Yes, spreads get our flexibility, mortgage maybe still assets, the improve that financings should -- on -- this have also long credit some facility too we the and assets stand-alone taking structure, in probably our getting secured. be we may evolve to of financing as some credit looking the -- with credit just not we to at those out point, term probably permanent larger. And a mortgage of get the few idea as not

it along of thinking So lines those much anything. as as really

Chad Vanacore

that X.X%. related rate declined And interest X.X% average Okay. is to like to pretty significantly,

place You to hedge. and put tried in swaps some had

to understand interest contributing want the to are decline? factors that are expense Just what that

Robert Kiernan

Sure.

quarter, So pricing we grid. in in our the went down

So the X.XX%. in average quarter our was

we QX, significant We the the And had there from than of debt X.XX%. weighting. floating in So was hedged much debt. more went down

higher. in in general rate in into about we X.XX% quarter well. the a during QX. the of QX, up rate from with leverage move up of floating grid. where amount We down kind midway the the QX our moves through next pricing as pricing QX up also borrowings as the the went of level QX. ballpark our should We'll look our grid the rate that end the increased So We in into down looks and additional came one skewed But grids of in perspective as we -- end-of-period here debt

Chad Vanacore

Okay. And more. one just Thanks. then

Just really we timing under the for contract assets on think thinking about should that those? acquisition, about are how

Alfonzo Leon

Sure.

have these close hoping we few and bulk the we're -- any say to September. now. to Beaumont So a are week I hoping of close that August, facility, of were we then is -- would the this

Operator

line Our next Riley. Maher question question. from Please comes your Bryan the with of B. proceed of

Bryan Maher

Yeah. Good morning.

quick We've So noticed cap rates. a couple of things. a couple of these X.X%

I subsequent contract. a think impacting that the And of in is did you when one under you to rate? type higher about cap another quarter quarter, the or talked What what's that purchase product that?

Robert Kiernan

a so Aurora It's is relationship built. Well, one deal. the recently

acquisition Our Chicago developer. of with the relationship a based has officer out

we actually had attractive transact. party for about for discussion for even very to We've And person made to with pricing. state this a finally, So planning get chance a in year. it this purposes, sense,

in pretty newly nice-looking, built next for the say, part their outpatient and of a very It's system. it's to a I'd good property facility, it's So Chicago.

I'd driven the the is it's So -- we're relationship. off-market mostly by fact yield that say,

it's That Health of Mission deal. one also Livonia other unique a The also, kind situation. the one

that had another party the down down pretty been folks approached this with the property I know me, far Just road. road

close. significant at discount was the when where buy so a to where pretty approached, I was. presented situation It's we opportunity And surety a a of this to selling it really party were wants great

the looking surety us to record, very was who out is our first me, a for this and -- likes of knows close. reached track one we've So

the So ago. we've and It's It's XX about and years I track driven nicer quality. a was it's think our by built built it's multi-storey. building. relationships, high looking mostly record It

part looking extra But were is forward relationships of where and So our it's we're we having asset, leveraged where again, this to and to one portfolio. value. we've great-looking unique able a it bit a are our that get be really situations

Bryan Maher

another year-to-date had look pipeline I pending. in than was, we you to that's when you've at then what And Okay. the closed question currently close, have what

up. been of in this made in $XXX not comments And warning a $XXX looking million We've think And know, expectation? pipeline take would thinking out Care I you do what You're as Health 'XX? our we maybe we about, estimates million. for reasonable analysts acquisition don't that model be their should your think at look full do you year Community How light be to about to with roughly kind year. of XXXX,

Alfonzo Leon

Well, and deals where if busy don't change underwriting ago. makes so -- got portfolio. us versus we're see really pipeline sense, pursuing. for deals meet we and continue to we'll to I a function or months we've It's X it's today sense finding X were us our -- make that any months a of our ago add

sense So I change going. don't makes continue and any And mean buy to a as last see makes in to going the year. company, it we'll we're -- I it all if sense continue growing.

Robert Kiernan

you were to goal. to a really was what able maybe exceed matter we similar And think and opportunistic it I of we and able acquisitions $XXX that being Yes, goal $XXX we're what Bryan, came million, into our said, on the that to done. with year of million to get

Bryan Maher

Okay.

in you're now? rate changing a that where up trip anything the see run of that don't you would landscape kind at So currently

Robert Kiernan

are getting I lot a competitive. evolving. it did is things as things I little that many a summer, predict humanly bit it but far, I well how and we a mean and lot as hard about we yet. the where of it's discussions with -- of my to call and -- another, We're it's bit also you're sense this worried come And we're really things. are try get asking have of a for summer, growth trend line probably And We've more pinpoint people -- getting contract things to having on and a different as are I'd deals of like exactly. a us. possible opportunities. competitive. hard we stay it's little say, busy that And minds. were the what that do of it, did always closing during a half the to of parties the bit not market, we as the like say, No, working to ahead are worked But really more not is the is market. try -- if deals. we're I to under the is that But sense talk thus little with to -- during can kind now sounds meeting That with and of dozen got I'd right I'm lot deals. parties

of have there, pretty be will couple a great asset we'll have we'll So quarters. next that busy -- and

But it's hard to predict.

that's interesting think So summer, I soon don't change change little but in things that more a sense it's whether got is significant tell It noteworthy. any during a I significant really competitive, trend. too anything dramatic to the bit or

Operator

next question question. D.A. Davidson. of line from comes your the Please Our Oxford with proceed of Barry

Barry Oxford

guys. higher? how about the doing deals and at When to and going your be you you're metrics of guys equity some is debt capacity think going -- and it stay are you meaning where you feel Or to you Do want right have leverage leverage-neutral do view thanks now, the kind acquisition Great, up to take you leverage? where this forward?

Robert Kiernan

hi Yes, Barry.

the that with quarter to leverage we around leverage would the our into And look ended XX%. right XXs. we low So I'd increase expect

at run last leverage able dividend As year's we to and we you've low we're XXs, results, enough into our level. seen generate from cover when income, the that

so think leverage. being balancing dividend I at lower act between And cover the to levels to of start it's a able

see And think QX kind leverage on, we of our our really our is acquisitions into look you'll cover I put and we so and increase goal to that's here these And ultimate QX. as dividend.

Barry Oxford

deals unit marketplace, And just just of helpful. while. then in of kind financing, I once what or Right. lines come across -- Great. looking of when along every at the them are the out OP you're same Alfonzo, kind in deals there a That's

Alfonzo Leon

start somebody having feel end So conversations I've up that know little to then with of But surprised like interest and with other I and with start OPs some deal. million week, I'm hard no with off ways. I doing are -- $XX every been don't off it's both we up discussion being with that end cash. a and if conversations very predict, to all those OPs

of selling get the it's discussions. that and part it predict. of dividend party combination our what that estate, off deal It's is definitely their it benefits combined something engages well with us and our But of with of big where -- those and -- received, parties, Given when it monthly dividend our compelling the is, real is, and trades hard and that is it's pretty it to the you it where a state unit with makes of much we'll the just doing a with state our very OP part helps nature think an planners the the fact some because deal sometimes tax really physicians of planning. yield are physicians, discussions is it for is -- there start trades experts, stock

But lot a makes predict. it end feel hard conversations again, it's nature. on that definitely I of like a to to So of a few monthly But sense those I discussions. have up basis, in

Operator

participation. conference. you Thank At there further time, for this concludes your question-and-answer today's This session. are no the over questions

your day. disconnect a wonderful may lines You time. this at Have

myself, to the pardon remarks. back I turn Actually, like management to over conference closing for would

Jeff Busch

Thank Okay. you.

We a this happy extremely with take and to approach the strong disciplined made we both acquisitions very growth are debt. year. We and progress

progress and the forward next with on all support. Thank we those the to time look So you for been your and quarter. tremendous, fronts has this year

Operator

At conclude Thank this time, your conference. does for this you today's participation.

this day. your time. wonderful disconnect Have lines rest at your of You a may

Global Medical REIT (GMRE) 9 Aug 192019 Q2 Earnings call transcript