GMRE - Earnings call transcript Q3 2019 | Global Medical REIT Inc.

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Operator

Thank you for standing by. This is the conference operator. Welcome to the Global Medical REIT Q3 Earnings Conference Call.

As a reminder, all participants are in listen-only mode and the conference is being recorded. After the presentation, there will be an opportunity to ask questions. Instructions] [Operator

to Please over go like of Evelyn the Relations. Investor ahead. turn now to conference Infurna I’ll

Evelyn Infurna

Thank you, operator. Global Medical Good morning, everyone, third earnings and quarter conference call. REIT welcome to

Chief today, have Financial call and Chief Leon, Officer. Alfonzo Bob the On Officer; Jeff Busch, Kiernan, Executive we Chief Investment Officer;

to these Please The Act be historical this statements Harbor company include this for call forward-looking this and note covered complying statements, forward-looking company by the facts call. provision conference which the use by of not Private making and provision. may of forward-looking Safe the in with Securities statements forward-looking. considered Harbor those statement Statements it’s intends of contained for purpose the are Litigation Safe statements on made Reform on XXXX

from the may risks Commission without variety control, a and those in results filings. effected will XX, and December beyond the of limitation it’s and for contained actual the differ other XXXX, are Exchange forward-looking Company’s be Securities that described Company’s statements Furthermore, XX-K in the by year-ended those including and factors materially

otherwise. company no The publicly a or result to any of assumes new update events future whether statements, information, forward-looking obligation as

non-GAAP Additionally operations. and company refer on financial from may this funds measures adjusted to call, as certain such from the operations funds

of Commission. You release Exchange and earnings Company’s non-GAAP can filings currently financial Securities a numbers tabular and in the these comparable in find reconciliation measures, GAAP the most with its

at on found be may Relations of Company’s information Investor www.globalmedicalreit.com. Additional page the the website

now Busch, to Global Jeff Chief like Executive call of would to Medical. over I Officer the turn

Jeff Busch

quarter third XXXX Evelyn, call. you, Thank our to welcome and conference

And followed to Officer. few then on Alfonzo we as update like Company’s Leon, financial and our positioning. review for year-to-date, and by results Chief overall forward your the the discuss questions. recent market then minutes quarter acquisition to strategy always, our Bob take are Chief outlook. third Officer; will look Financial today a Kiernan, and me Bob GMRE’s and to just Alfonzo I’d Investment Joining

estate create to combine three portfolio ratio, to results and durable expertise turn strong with our Over the has driven coverage with ability continued flows years, to investors. we’ve a strong last in which cash demonstrate real healthcare knowledge for reoccurring

secondary believe profiles income purpose-built risk our Our strategy medical triple adjusted on are in long-term returns stream. on better and where with found. absolute These properties which we identifying can provides acquiring a facilities profitability leased strong groups net basis, a medical market credit and be focuses stable net or healthcare with stockholders to

type, and of property, structured as special team Our consumer portfolio outpatient asset geography well occur service services. delivery We take of tenant advantage our distributed by and team. business base. but for model established of preferences better rise healthcare such medical the diversified economics all to given trends fundamentals, demographics, facilities is and healthcare facility not agnostic needs only area for are metro also in and Healthcare medical market shifting

practices We communities facility city. well bedroom target or mid-tier market dense prefer to larger in established of and

structural real Our expertise table factors accretive GMRE into regulatory pursuing that expertise helping nuances, healthcare and bring and the us to Board insight understand both implication our team valuable provide with estate and transaction.

private that facilities buyer. believe these on are $XX as not also another us institutional We advantage radar the focus transactions million on MOB gives our of typically or below equity larger

providing has address be to need Our physician groups been very when a can structure of to also a Units planning needs. attractive OP with that benefit willingness acquisition, flexibility transactions level to tax pursuing that

average square on our community a our approximately price at execution estate a over reputation total relations million Our XX to business, a our XXX,XXX keeps cap active. Year-to-date, for and of weighted encompassing are $XXX holistic pipeline to pleased healthcare rate and approach where closed of X.X%. purchase deep full medical we real feet property have

expand. to nearly adjusted continues of pipeline anticipate flow and acquisition our meet We sacrifice to time, or with through not growth. as the acquisition, And we returns identifying maximize committed on property which dividend even support profitability cash will to growth sustainable remain quality overtime. our we to continue our discipline, same underwriting focuses sake our the At to risk

With that, to I Kiernan, Bob financial the like will who call over would to quarter of results. provide our our an overview turn CFO, third

Bob Kiernan

financial our as simultaneous our XX% September growth market Thank last earnings the close approximately third night impact website. to you, our XX, year. in package supplemental months $XX.X press and through ended XXXX, our Last for Reflecting and third the revenue the Jeff. of by that after results continued nine posting positive the of the total million compared to the GMRE rose quarter quarter of third our investment reported quarter release portfolio,

the For September increased ended XX months total approximately XX% similarly $XX.X million. to nine revenues

for on Total same-store basis. quarter the compared contractual quarter to our reflects a on contractual XXXX the XXXX, months million, $XX.X increased Our up the of rent increase million, of total portfolio first XXXX. during third of was the XXXX. from the months increases expenses $XXX,XXX the expense the quarter XXXX third effective third up same-store third X.X% of portfolio XX% XXXX $XX.X as XX% or nine quarter nine of to were This rent for of compared

quarterly for increase in third an LTIP The due to XXXX, quarter primarily ended $XXX,XXX expense. non-cash our increase the to interest expenses $X.X September compared same each million, expense was for was quarter The $XXX,XXX remain acquiring actively XXXX. was for the as well for XX% the as million as third expenses in amortization three $X.X months continued expense to compensation XXXX of XXXX. large period period of in of expense total compensation and XX, we LTIP up G&A properties. Depreciation the components compared

$X.X months items The expense acquisition months quarter compensation nine million, increases from XX, up the our the for in the also increase G&A the XXXX XX% ended XXXX. the was largest third million interest XXXX, primarily Reflecting September prior to nine year of $X.X and $X compared expense to to third was line expense two costs. quarter, months was quarter. were million activity, the for depreciation ended $X.X million in depreciation compared in XX, related For September nine stock our

was $X.X expense XX% from quarter the up last Interest in year. million

the September million, expense the XX% nine $XX months ended interest $XX.X last depreciation and compared million expense to XX, was year in the same prior million was from For up $XX.X period year. period

borrowings These a increases our acquisitions. are activity as acquisition with and the to our result year of expense, directly respect finance higher used interest past to over average

for the quarter XXXX. Our the XXXX was to X.XX% X.XX% average quarter of costs borrowing third in compared third

quarter for of $XXX,XXX Relative to our third overall of third results, of the compared last in year. was attributable to quarter common net stockholders income XXXX debt $XXX,XXX income to

month increased from $X.X period. income nine net our million year the the For prior period, up to $XXX,XXX in

per and down equity were our AFFO AFFO unit prior share of unit of compared of from higher period and FFO a FFO XXXX year to the and per both raise and first were share decreases these $X.XX quarter each third from of the quarter. share Our count $X.XX our same impact $X.XX down and Both ago. year months in share our March the Likewise, XXXX, resulted for $X.XX per for the nine the XXXX.

the balance sheet. Moving on to

XXXX. of investment As an was real $XXX end in million, estate from of our year XX, September million increase gross or XX% XXXX, $XXX.X

growth from debt our balance end, at side $XXX reflecting at at the our million the $XXX of year total sheet, XXXX, liability million September our Looking portfolio. of up was XX,

and new in to credit the expanded note $XX feature we a facility. the and XX, our September On facility, – that amended million accordion particular, million remaining the to exercise accordion we added $XXX new

Revolver, $XXX a facility is and comprised million Loan, now credit $XXX accordion. of Our $XXX million million Term

on revolver, million. cash terms In liquidity, we our the of availability quarter our total with the ended and including $XXX

Term of raised a at Loan the the of after the million share. the amount per respect to our the LIBOR Loan $XXX $XX.X price on interest X.XX% swaps of with borrowings average since component entire the which X.XX%. in LIBOR on quarter, we end now fix component have second the of we into basis. entered With Just $XX.XX we rates our on a end, corresponding quarter at aggregate million, equity at average Factoring of an notional issuances, hedges, ATM weighted weighted balance all of two Term fix

of as rates, projecting in cost the swaps QX. we’re fourth ahead third the X.XX% to from impact X.XX% quarter to interest decrease Looking new the borrowing to quarter. as interest rate declining the average in our well on Based approximately

coupled this our the per fourth on we FFO based and QX with decrease acquisitions, our increase completed to Additionally, XXXX. in expect share quarter in AFFO basis

landscape investment will call will the With activity. investment to turn and review that, I our Alfonzo, over who the

Alfonzo Leon

million cap were points market basis third rates has with GMRE Consistent been XXX completed of beginning our on weighted acquire very average Bob. due closed cap to rate and these properties the at quarter of at as you, a and acquisition the purpose-built able above we to of healthcare active properties points basis strategy, since average. the X.X%. diligence XXX Thank we $XXX remains

Portfolio metrics changed based third a quarter on the margin. on just have

Our square weighted per years, escalations rate lease square well-diversified X.X buildings foot XX rent $XX.XX number rental X.X% XXX% weighted X.X of average year. portfolio now properties of average per are million in foot and The at States. lease XXX and our of and is term average

properties times. coverage ratio wide have X.X portfolio the a Additionally,

suburb These to lease the high healthcare total, to we of San diversify the in Marcos, In further quality Diego. transactions million California. cCare largest completed $XX.X service second leads grow is XX These and include facility providers cCare quarter. Southern providers. full San end of with our and healthcare private California affluent center have since the in portfolio transactions and in hematology leading facilities practice oncology cancer

$X.X from $XX The locally Lansing, Shore million portfolio Illinois XX affluent anchored The million and suburb mile multi-tenant partnership McLaren portfolio on McLaren. one North in is million the MOB multi-specialty MOB of $XXX surgery a and CIMA, by with providers, group Chicago. with a Bannockburn, and new dominant center located in Hospital Michigan.

The primary Illinois. Health, multi-tenant Aurora and Services to a in outpatient urgent Care This at both locations. investment groups Joint, MOB wellness, and Illinois provided grade of Health care, not-for-profit property metro medical million of lease is XXX newly one advocate Health affiliates $XX.X and care, largest include Health built the by Chicago Trinity in campus physical OBGYN recover by Advocate health Care Livonia, and physicians in Bone Dreyer anchored largest building is Clinic Michigan. the system. on system million XXth Aurora, therapy. Ascension Aurora radiology facilities XX anchored in $XX.X lab, the orthopedic

with West The XX nationwide. $X.X more $X.X medical miles University. XX States. is leading in Virginia, XX Arizona, surgical from than lease Group lease with Covenant growing Partners our facilities locations is UnitedHealthcare care million the a in subsidiary to second million West clinics to MedExpress with a suburb Covenant of The rapidly of This is Virginia Phoenix. operator MOB urgent Morgantown, Gilbert, across Surgical MedExpress them. XXX transaction

Beaumont, in center health of Health system of to leased System, hospital surgical for-profit Steward Texas, United largest of States. The the is specialty a $XX.X in subsidiary million which the Southeast one Texas, medical the

Bastrop, is office $XX.X million and XX the lease across This freestanding million $XX.X David’s Texas, the St. the four City, facility HCA, lease lease Partners of partnerships in practices the system. part Florida. ophthalmology the for-profit to EyeSouth HealthCare, and of total department center of in EyeSouth health XX which nation’s freestanding submarket one states leading surgery Panama in portfolio busiest providers. MOB is with to has a with emergency

This is our with them. transaction second

to we buy is pursuing remember on amount identify strict We standards. quality are year-to-year year that our accretive respect in meet have the are of high had that volume. finding It and we will an and acquisitions that product and underwriting vary high quality assets with focused of to important exceptional

of find As and quality enviable relationships position our some require in the and reputation the very market costs. ourselves insurers treatments see and healthcare facilities encourage unfolding. a not given and for our pursue earlier, controlling if outpatient full an Health a we depth as by driven way have surgeries Jeff patients we trends We to of mentioned of rising execution. to pipeline continue

see which us ample this out those the driven, pressure provide our could driving with This believe specialize of in or like improve opportunities our in demand is for trend facilities portfolio, it will facilities. continuing hospitals and that to and of profitability turn patient standalone investment. We off campus

will belief We are that flows provide our portfolio our for build confident shareholders. have build that in cash strategy durable and we continue and to a

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

Operator

you. Thank

Please first from Baird. the question Instructions] Babin We is [Operator Drew The question-and-answer sir. with begin will now who comes go ahead, session.

Drew Babin

morning. good Hey,

Jeff Busch

Good morning, Drew.

Drew Babin

Surgical Can Steward good Hospital hear The morning. you – okay? me

Jeff Busch

yes. Yes,

Drew Babin

Yes, okay.

Could Hospital factors year. ability Surgical their and locally over how maybe little on so you care can Steward more specific rents properties asset influencing any with Texas, you escalating the they on might So type hospital of competitive the in to about given the there. environment that it? office medical be pay size supported color Beaumont, just in How the a kind talk systems taking of give that

Alfonzo Leon

Sure.

generate Christus, the market shared a three and way was IASIS, I the with So Baptist market just Baptist the systems at have XX%, the has of the facility is XX%. $XXX Hospital, Steward is which and is Beaumont Christus market. Beaumont look is years they their basically have million few when in have a Steward. by And systems, where EBITDA hospitals merged ago. health Steward market came is we acquired. Port Port Arthur. into in that it, this they And is which They Hospital two of Arthur XX%, which that Steward their

Port town. discussions footprint to add actually end, campus hospital, and market, of are then that When with significant line. to Arthur with facility has to their that facility service and is a building on demographic Beaumont add actually revenue long-term and Port with The our more acquired sort of a campus high we look couple is just is is are who newer, Christus big on from a higher blue the main In Beaumont their part system, that whereas and compete profile. services, income, Christus we collar, their higher is Steward at we continue part the the Arthur Hospital their that Steward goal miles sub The you is of target acquired. use that as more acquired of in facility better physicians the campus better MOB and campus.

large very of with So is a Steward system lot resources.

large and market. focused to practice the things their that they that on them with they physician strategy came market when help the of One away right in aligning groups execute into was themselves

of the facility is that physicians facility, leadership pretty on in important it with community for the are execution this their us prominent So our that the part conversations local based with clear Steward’s market. to was in who and that

There that case. was press diligence that were came that actually a under highlights release when out – we

our across also market, look view strategically that facility Steward’s more in you healthcare of we ones. that for very from their a which a and So a is entire market, profitable perspective, one Steward as when it’s one important asset healthy network

I’ll So me and if addresses know there that pause let your question.

Drew Babin

to was equity to one you’re maybe of detail. kind the of right you remaining guess deal at. kind deployed powder the kind of quantify quantify do that of That great. capital square sourced a flow sense. more makes then the more more the as it guess and is deal. guess quarter top relative new has the before for powder kind before been And of to how little but I that from offering, currently I today? leverage increase do And you where it’s which dry looking now? up me I the dry how And I just proceeds kind most Yes, of appreciate room a maybe of kind of down. first with leverage, little back

Bob Kiernan

Drew. facility at we’ll ended $XXX availability million powder we it quarter about, cash. so Yes, on to sure, and the relative the dry call of credit Yes,

capacity our available credit thinking from if you whether additional that range acquisitions purchases looking managing capacity. think us And date about million just be just from about perspective. so with that And $XX in alternatives, of ATM – in million or it a of $XX forward, available kind that point at QX to timing million, our $XX stage at through $XX of ballpark that of our million leaves and

Drew Babin

AFFO your or assume mentioned pretty stand FFO long I beyond guess and these you’d you dividend in covering tying we we’ll pipeline? below coming coverage in to kind year-end be currently Should and the by of fourth quarter. with again close that dividend covering that benefit that earlier in third the that quarter, this increase to of given dividend the expect that are the kind deals once the with Okay. And together, additional

Bob Kiernan

And Yes, it average low acquisitions of we that the terms leverage our done if be covering to need pushed with it is third the on we’ve which in up think QX, was been leverage into where high call the Drew. already during in we I have quarter, the about where the XXs so during period. we’ve mean a I XXs, dividend.

from about good feel outlook that So an perspective.

Drew Babin

color. Great. you. Appreciate all the Thank

Operator

comes who from ahead, The Vanacore Chad next question Please with is go Stifel. sir.

Seth Canetto

cap sort and Hey, mentioned good for you is in Canetto of would shifted class really is the where below for to just question acquisitions talk another? how morning. just asset large This Seth My is $XX the spot your Or have depression about successful. over Chad. any million and first And guys that guys how one earlier pipeline have been rates? can seen you you potential focus sweet you

Alfonzo Leon

Yes, so kind many we to that. ways of address –

approximately of our of we’re of a a on work when fields all down month. million it covers and So million pipeline hard XX of at And volume types seeing the to keep potential a we about close conditions. that it’s pretty deals. up $XXX And things times. that depending in depending market $XXX to deals on wide and We goes range

private really and years when that’s volume past to near going think sustain been attracting over and able of capitalized from you anything leaving see to $XX future. don’t It’s in well lot the you we’ve the they pricing equity now So change right material groups. get couple need million, more that that of started a that to a for basically, perspective, way

for the to in and it’s our over spot, But for very opinion, get range of million In me now right which in shifts quarter. when very, Especially $XX XX, sweet the The we of every locations you that becomes works we’re my somewhere competitive. $X that – for it it the really and quality for get. of yield sweet can spot we tenants sort we acquisitions like, model. is like looking our the our million type we where

where focus for opportunities that facilities looking continue share types of sense lion’s the our that In terms But as hospitals, to opportunistically and look look inpatient we’ll assets and rehab many, very within is inpatient. asset our for the think profile. selectively many impatient of of type, other very, for of main that fit make our MOBs we

and given to it’s for types In I the available for in of ways perspective an quarter, our quarter-to-quarter. or be especially would any a look strict And whatever on we policy time you versus driven of when reason what yield choose there’s adhering given how changes of of it we assets terms become for mean, market. won’t about focus and quality MOB, by a inpatient is there’ll then we period at when rather really stretch sort much of see rehab that facilities any. comes long a market a there’s lot just where where searching

a And cluster it, asset that go months all centers while of Even one. single and for is for goes that a surgery where become available for for seeing there’s surgery centers types. purchase you’ll a without then

strategy and the is what’s deals of on an types market our our of fits in So investments good respond of for reflects our portfolio of what good And really and look assets. a tenants perspective and policy kind strict the to really available market from to versus of model. adhering to acquisition sort in good sort percentages

Unidentified Analyst

average rate look portfolio helpful. increased at for the we sequentially right, that then That’s when way the All from cap just great. And X.X%. Thanks. very

acquisition X.X% a I with year range. guys you think this did

what’s you rate you you about two. X%, and increased Can call buy then maybe or that sometimes mentioned a for overall in just year cap portfolio driving last higher? portfolio So talk the X% just that X.X%

Alfonzo Leon

I that many I deals range simplistically sort of continuing And mean are benefiting answer. that’s I cap that it’s look think for increases. the in think and for mid-X% to

Unidentified Analyst

Okay.

continue X%, escalators of pumping should each that we to the So expect X.X% year just higher. sort

Bob Kiernan

Yes.

at I as average think of on that X.X% $XXX. across portfolio

Unidentified Analyst

been to surgical those the looks Okay, then the it really up yes, great. ticked nail that has continues the that coverage for that into but the moves portfolio or And and reading – explain like is else? then you be that and the for mean can hospitals, driven earth new too coverage mentioned the strong, but by strong or much in am I something acquisitions Is just – you I or bucket? MOBs. just drops within rolling sort there of

Alfonzo Leon

very they if each there’s you mean for I look one and up across specific move individually, reasons. down

we think I portfolio those to I portfolio trends way level. large in encouraged say, our be a industry way, that communicate a us trend, that probably as at it the by trends. have sort we for concerns in hasn’t anything, to mean continue I is a of metrics would any not moved enough if

don’t we get information any than we stay tenants. I think we in but really from that there’s that. commentary show the mean I tenants, numerically. with further track our we our it, So There’s touch can’t

market and the seasonality what from impacts bit. a we there’s But doesn’t very and Just the and – and you’ll in level not adding move at line positive. all it’s a in especially it’s physician conversations have and very directivity it’s straight is a quite around in doing they’re losing positive. all facility moves think healthcare, just the a or it the physician aggregate, But

Unidentified Analyst

That’s Thanks taking great. my right, for me. All question. for it

Alfonzo Leon

you. Thank

Operator

The next sir. Riley. comes is from Please question go who with ahead, Maher B. Bryan

Bryan Maher

all. morning, Couple good of questions. quick Yes,

Alfonzo Leon

Hi, Bryan.

Bryan Maher

think number at people some practice, at competitors, you that We that at of level? while can occupancy can a you every not how XXX% we long look is very that run do portfolio of long. look in keep the quarter, the XXX% many When

Alfonzo Leon

acquisition, looks keeping in rent it. question. is – looks like. properties I I but in what It’s our to we what lease mean we that was much renewals, the place our ahead mean memory, part and roll I small about think a occupancies and that acquired, the suites how while underwriting, can our stopped of acquire something we working that acquiring X.X% couple those have it’s during there we’re we not expiration we Yes. of were XXX.XXX%. of think do like just properties when our the good about vacancies very were full that vacancy. is of sustain that a And long or a X.X% then were staying We XXX%, when have

So it’s mind. definitely top predict? But can of we No.

surprised far renewing we we’ve can’t will that up. can’t – terms And as predict it’s – in try stay when we’re goals been of to possible. what But like. main is upside we leasing I properties as our that one to of – buying beyond So full them as to is the when occupancy find look on that, spaces and going

at XXXX, XXXX look schedule, about have predict. we and encompass lease those you we feel are we we in in a conversations that. feel couple facilities, If our expiration about can’t about lease that renewals. have going And year we expires expiring to great X.X% and Very encompassed very their facilities those good but in had Pennsylvania with lease – this good

Unidentified Analyst

And and But that pulled to large How they bigger in bigger you asset other good mid-size as REIT? $XX is small that equity that some shift managing grow be to REIT spot a with you we or to sweet kind spot keep private was GMRE being with million and on, REIT. transaction. in get that, Okay. bigger, commentary $X getting size tend then of they asset And based buyers gave sweet do and portfolio in that that there’s inevitably, the level up your range. size competing versus to to a million you then lot see

Bob Kiernan

quality possible into as of lot mid cap. we to to a stay to right and as gave we higher Well, this is point, now grow. this our X% At question as buy that goal thought

I going but our decrease forward strategy believe we next this market won’t We won’t to we plan sacrifice know no either rates, definitely at there’s and time quality unless sacrifice least it, to have while So few cap. quality. that say sacrifice won’t sometimes or changes, the others at I cap gone for bulk the buy years.

we going done don’t a Because our where us. and price what by spread substantially they the our going if share the investors potential or And we’re I to rates capital what before they is we interest are and the in down. of price rates, the exactly So buying the AFFO we up. have think to coming of X.X% in grow with by stay even that our following stock we the also down to cost see be for because interest do go do, the continuing real stock locked others

that least a we our just We increased stock our spread for have the such that’s good years, AFFO, the strategy. could price next that at add to and few

Unidentified Analyst

thanks. all me. Great, for That’s

Operator

The ahead, Stevenson, with Janney. from who’s comes Rob next Please question go sir.

Rob Stevenson

ask asset guys. question, Alfonzo, different to morning, the maybe Good pricing a way.

You guys blended deals in to debt costs better cap, higher, and it deals random? year-to-date, markets hit you and/or versus can basis looking or there all tenants the of larger impact at with that just how XXXX nature? better you XX doing mean, guys be of it points doing may are at of pricing anything X% deals you X.X% with that lower I because just Or is your asset is year-over-year, differential cap. due much a sort pricing of

Alfonzo Leon

part much the mean, think of I that above think honestly. any number markets Good how in there back for that in reason not broad And how hard mean, reasons from pulled question. changed? I an definitely a I’d guess MOB lot, has when the worked worked was strokes its in And market. market say way the equity that then through was its cuts this really of and a quantify that it’s has debt I be groups. much kind around top, portfolio the a through I of and one. and there the I guess, the fed way the definitely you’re an of summer private I year, impact the impact how each of the rises is, REITs to asking that level. I shakes XXXX, impact to mean, all of it’d the almost, one it’s question

in a we than of And you the want the it’s our It’s – – while very product has to probably been feel very, the enough In what where a is like of quarter, we’re of finding last stuff most of acquiring the mean, the is portfolio we��re can grow call to guess, say a really you bit is, stuff year market, frenzy. the that kind that higher kind we’re where if a And I’d in, core deals we in noticed of I past. – competitive. I’ve I it like. is the the bifurcated a this sort say in competitive, very, it still wants. niche there that type quality everybody been

benefit, So – the sense but – we like other double had faster year and this our to sort we’ve that, in mean we’re of works competitors. does feel harder getting outmaneuver a a it

it and And there have something chasing where surprised with ultimately been we’re are trade. moments when

And that to can. counteract more towards that really as kind we as so start to like fast lock what do we faster we’ve more is down being trying of and moving and decisively and done deal the assertive it to acting

it’s in your we and question, they it just why fits, So, think, to so And the way to And a the market every where think the but are to is factors. as are many, changes quarter. good, to in view a numbers like the I because hard taking sheet, due market And conditions. adapting responding capacity I with going have. to I so things it’s be we company have address, to our It’s predict making of to think balance hard and I surprise, far a market role that to feel I the couple in quarter. the work. kind strategy has where trended But way many our just my

Rob Stevenson

incremental the currently after do how field, you dry October acquisitions? Bob, much for have powder Okay.

Bob Kiernan

million. with the that, – that mean, quarter, about to just it’s powder purchases pushes again, of on available the – the revolver ended $XX-ish down I after through the so walking million capacity about $XXX after the So and QX we

Rob Stevenson

you are guys to do that want the in that enough looking is you to what think Okay. was at near-term? able sufficient the be And ATM whatever you do to then today,

Bob Kiernan

the in certainly It’s near-term.

Rob Stevenson

Okay. And of guys me, then whatever last, million another, is added board, lastly four the how that plus $XXX it is for is – acquisitions months. Jeff, the call in it, some you

incremental, What your an the at on of the – metrics also terms latest think on are incremental dividend guys, you doing the the getting you’re from increases are looking board’s what’s basis. covering to depending is So internalization even about thoughts there. the the dividend then equity sort that your of small in board and AFFO issuance size,

Bob Kiernan

Right one, talking like a cost of go dividend for now, – where we little very of to in our work some not and bit consider we wise, the like see on growth, see the point on go AFFO favorably the growth. board. debt. are nice could We’d lot coming a where And AFFO a GMRE. I’d awhile AFFO at debt, decreasing Number bit cost a year, for increase into the to for see given we’re capital, little a there. with but growth size

Rob Stevenson

internalization. the then And

Bob Kiernan

legally internalization, caught I into compensable then smoothly in what is – little we’re brief been the at retain from manager what numbers million exactly be. the to committee we’re that is payout in will it million, good form they’ll that should we retain currently On the process negotiations know they different did the other gone actually The of we view. process On committee to this a who special add a would on the others it numbers. have They goes the to appointed, move equity $XXX quarter. I counsel, special fact will as the planning, external and in see payoff goes They about internalization. $XXX million, it. my will within $XXX or groups through is than have the the mean, be then earlier. retain

Rob Stevenson

Okay. Thanks right. All guys.

Jeff Busch

Rob. Thanks,

Operator

ahead, Davidson. with The comes Instructions] Barry who’s go Please D.A. next from sir. question [Operator Oxford,

Barry Oxford

guys. look Real of overweighting you in from the you that one year-to-year, if Alfonso, kind depending quick, is Great. move Thanks, facilities upon the there are said type, at What pipeline. the quarter-to-quarter. acquisition back market the that facility pipeline, to the can getting

Alfonzo Leon

looking as those mostly with I MOBs, surgical I’d for get get love surgery hard would There find. surprise me hospitals to can, to some that I get, sometimes, to those many competitively Simplistically, centers love are as are how they priced. but but

tenants, like where system. to much for MOB, least mid MOB I few groups, health physician surprised priced So liked pricing a categories. switching very a to do have within in MOB, They’re they’re size getting almost least you different groups. groups. at comes I’m large the sometimes, especially a over at large And

fully seems doctors, getting when tend have groups like XX, XX, to over XX they’re our XX, – XX X, or get priced. we’re you So it

want among again, have about to thoughtful renew. the to In exposure to to terms are pricing of obviously, footprint. systems selective, we health Health systems about lot very about being plan and gets one those. very a of we’d much systems, operators, have how they thoughtful whether or systems, Health very more very especially their have for the competitive very to strategic And operators love of any also health you for-profits be those. not, with but

lot to or like years. that what footprint a of got So thought will look in X you’ve into put XX

very surprises when In sometimes adding hospitals, terms we become available. we we it the what mean, more. of look I that And have, do me at selective like opportunities rehab with again,

it Sometimes, competitive. very does get

off So and it’s we predict. back hard to

have the if more So your And they’re love rest get. answers but that surgery we’d But mostly is a I don’t very know to lot hard then centers, selective. question. MOBs, it to of

Barry Oxford

of you helpful. growth look definitely company the the when G&A. That’s at the and then And

You guys forward that to right head personnel basically, some to personnel at we the you look, or as continue count the can you basically the have have we to now. add go go portfolio

Alfonzo Leon

property adding are the to management. We

substantial of, year, area our growth could you ahead If see I to behind. want it’s not an each get

you done when in working manager, lease hard get So to like many should six staff while hand we we’re have a with like you put is, the my of pretty also good as be it’s – for I and going in some us you’re to with companies at years people. administrator I’ve specialty looking on months somebody short, for level. this really good also on that. to That generally asset skills, with know, adding But accounting market, XX giving a quite when to ahead the be I the – an hand have on about of planning, find to

assist problems to any going if they be So sell, there property is the still Good are we ratios. – evaluating, coverage the keeping be management where key triple very are to vigilant got personnel to in us and adding to or early systems management to honest. with be that But hand, easier field. property net absolute the to in other business on the a ours. leases, little like you A net warning is

in staff we So that adding area. are

Barry Oxford

Right. guys. That sense. makes Appreciate it

Jeff Busch

joining everybody us. you Bye. We thank for appreciate support. Well, your

Operator

call. This concludes today’s conference

may disconnect Thank your pleasant lines. day. you You for participating. Have a

Global Medical REIT (GMRE) 7 Nov 192019 Q3 Earnings call transcript