Global Medical REIT Inc
For the period ended Jun 30, 2024. Filed Aug 7, 2024.
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A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Jun 30, 2024 · Filed Aug 7, 2024
XRN$28.70-3.4%Stored close · as of Nov 6, 2026
What changed in Management’s Discussion and Analysis?
Read the current filingPrevious report: 10-Q
Period ended 2024-03-31; filed 2024-05-08.
0001544784-24-000041
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsCurrent report: 10-Q
Period ended 2024-06-30; filed 2024-08-07.
0001558370-24-011347
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsThe baseline is this issuer’s latest earlier reporting period of the same form that was filed before the current report. A previous 10-Q is a different quarter, not a year-over-year comparison. Amendments are excluded.
Compared 117 previous paragraphs and 138 current paragraphs.
78 unchanged; 31 reworded; 26 added; 5 removed; 3 previous and 3 current paragraphs rearranged.
Tables are not compared: 59 previous and 60 current tables excluded. Dates, whitespace, punctuation and numbering changes are ignored; changes to financial figures remain significant.
A changed paragraph is not evidence that risk increased or decreased. An unchanged paragraph does not establish that risk stayed the same.
Added paragraphs (26)
Current report
Properties Under Contract to Acquire and Completed Acquisitions Subsequent to June 30, 2024
Current report
Completed Property Disposition
Current report
In June 2024, we sold an in-patient rehabilitation facility located in Mishawaka, Indiana, receiving gross proceeds of $8.1 million, resulting in a loss of $3.4 million. The net proceeds from this disposition were used to pay down outstanding borrowings from the Credit Facility.
Current report
Completed Property Disposition Subsequent to June 30, 2024
Current report
Income Before (Loss) Gain on Sale of Investment Properties
Current report
Income before (loss) gain on sale of investment properties for the three months ended June 30, 2024 and 2023 was $1.4 million*.*
Current report
(Loss) Gain on Sale of Investment Properties
Current report
During the three months ended June 30, 2024, we sold an in-patient rehabilitation facility located in Mishawaka, Indiana receiving gross proceeds of $8.1 million, resulting in a loss of $3.4 million. During the three months ended June 30, 2023, we sold a portfolio of four medical office buildings located in Oklahoma City, Oklahoma receiving gross proceeds of $66.0 million, resulting in a gain of $12.8 million.
Current report
Net (Loss) Income
Current report
Net loss for the three months ended June 30, 2024 was $2.0 million, compared to net income of $14.2 million for the same period in 2023*.*
Current report
Six Months Ended June 30, 2024 Compared to Six Months Ended June 30, 2023
Current report
Revenue
Current report
Total Revenue
Current report
Total revenue for the six months ended June 30, 2024 was $69.4 million, compared to $72.6 million for the same period in 2023, a decrease of $3.2 million. The decrease primarily resulted from the impact of three property disposition transactions during 2023. Within that decrease, $9.9 million in revenue was recognized from net lease expense recoveries during the six months ended June 30, 2024, compared to $10.2 million for the same period in 2023. Additionally, the current period includes the recognition of reserves for $0.8 million of rent and the write-off of $0.1 million of deferred rent.
Current report
Expenses
Current report
General and Administrative
Current report
General and administrative expenses for the six months ended June 30, 2024 were $9.0 million, compared to $8.3 million for the same period in 2023, an increase of $0.7 million. The increase resulted from an increase in non-cash LTIP compensation expense, which was $2.6 million for the six months ended June 30, 2024, compared to $1.8 million for the same period in 2023, partially offset by a decrease in general corporate expenses.
Current report
Operating Expenses
Current report
Depreciation Expense
Current report
Depreciation expense for the six months ended June 30, 2024 was $20.2 million, compared to $21.0 million for the same period in 2023, a decrease of $0.8 million. The decrease primarily resulted from the impact of three property disposition transactions during 2023.
Current report
Amortization Expense
Current report
Amortization expense for the six months ended June 30, 2024 was $7.8 million, compared to $8.7 million for the same period in 2023, a decrease of $0.9 million. The decrease primarily resulted from the impact of three property disposition transactions during 2023.
Current report
Interest Expense
Current report
Income Before (Loss) Gain on Sale of Investment Properties
Current report
(Loss) Gain on Sale of Investment Properties
Current report
During the six months ended June 30, 2024, we sold an in-patient rehabilitation facility located in Mishawaka, Indiana receiving gross proceeds of $8.1 million, resulting in a loss of $3.4 million. During the six months ended June 30, 2023, we sold a portfolio of four medical office buildings located in Oklahoma City, Oklahoma receiving gross proceeds of $66.0 million, resulting in a gain of $12.8 million and we sold a medical office building located in Jacksonville, Florida receiving gross proceeds of $4.4 million, resulting in a gain of $0.5 million.
Removed paragraphs (5)
Previous report
Properties Under Contract to Acquire
Previous report
Recent Developments
Previous report
Chapter 11 Reorganization Filing of Steward Health Care
Previous report
On May 6, 2024, one of the Company’s tenants, Steward Health Care (“Steward”), announced that it filed for Chapter 11 bankruptcy reorganization. As of March 31, 2024, Steward represented 2.8% of the Company’s annualized base rent, primarily in one facility located in Beaumont, Texas (the “Beaumont Facility”). Steward was current in its rental payments through February 2024 and as of March 31, 2024, the Company’s receivable balance from Steward was $0.5 million, including $0.2 million of deferred rent. The Company was actively pursuing re-leasing opportunities at the Beaumont Facility prior to the Steward bankruptcy announcement and is optimistic about its long term prospects at this location. There can be no assurances that the Company will receive any amounts owed to it by Steward or that the Company will be able to successfully re-lease the Beaumont Facility.
Previous report
Gain on Sale of Investment Property
Reworded paragraphs (31)
Previous wording
Global Medical REIT Inc. (the “Company,” “us,” “we,” or “our”) is a Maryland corporation and internally managed REIT that owns and acquires healthcare facilities and leases those facilities to physician groups and regional and national healthcare systems. We hold our facilities and conduct our operations through a Delaware limited partnership subsidiary, Global Medical REIT L.P. (the “Operating Partnership”). Our wholly owned subsidiary, Global Medical REIT GP LLC, is the sole general partner of our Operating Partnership and, as of March 31, 2024, we owned 92.44% of the outstanding common operating partnership units (“OP Units”) of our Operating Partnership, with an aggregate of 7.56% of the Operating Partnership owned by holders of long-term incentive plan units (“LTIP Units”) and third-party limited partners who contributed properties or services to the Operating Partnership in exchange for OP Units.
Current wording
Global Medical REIT Inc. (the “Company,” “us,” “we,” or “our”) is a Maryland corporation and internally managed REIT that acquires healthcare facilities and leases those facilities to physician groups and regional and national healthcare systems. We hold our facilities and conduct our operations through a Delaware limited partnership subsidiary, Global Medical REIT L.P. (the “Operating Partnership”). Our wholly owned subsidiary, Global Medical REIT GP LLC, is the sole general partner of our Operating Partnership and, as of June 30, 2024, we owned 92.36% of the outstanding common operating partnership units (“OP Units”) of our Operating Partnership, with an aggregate of 7.64% of the Operating Partnership owned by holders of long-term incentive plan units (“LTIP Units”) and third-party limited partners who contributed properties or services to the Operating Partnership in exchange for OP Units.
Previous wording
In June 2023, we released our second Corporate Social Responsibility Report, which detailed our progress and areas of focus in the ESG realm. The contents of our Corporate Social Responsibility Report are not incorporated by reference into this Report or in any other report or document we file with the SEC.
Current wording
In June 2024, we released our third Corporate Social Responsibility Report, which detailed our progress and areas of focus in the ESG realm. The contents of our Corporate Social Responsibility Report are not incorporated by reference into this Report or in any other report or document we file with the SEC.
Previous wording
After many years of low inflation, the U.S. inflation rate increased substantially during 2022 and remained elevated during 2023 and into the first quarter of 2024. In response to elevated inflation, the U.S. Federal Reserve (the “Fed”) increased the target range for the Federal Funds Rate from 0.25% – 0.50% in the first quarter of 2022 to 5.25% – 5.50% as of May 2024. Many market participants had anticipated that the high trajectory of interest rates during 2022 and throughout 2023 would lead to an economic recession towards the end of 2023 that would have caused the Fed to begin lowering the Federal Funds Rate. However, certain components of the U.S. economy have outperformed expectations and inflation continues to remain higher than the Fed’s target rate, which has caused the Fed to take a “wait-and-see” approach to monetary policy rather than beginning a process of lowering the Federal Funds Rate. The increase in the Federal Funds Rate, along with other actions taken by the Fed, had a ripple effect on other benchmark interest rates, including one-month term Secured Overnight Financing Rate (“SOFR”), which is the reference rate for our indebtedness under the Credit Facility. During the first quarter of 2024, SOFR remained elevated and only decreased moderately from 5.40% at the beginning of the quarter to 5.34% at quarter end. Such elevated SOFR results in higher interest costs on our floating rate borrowings, which negatively affects our operating profits and contributes to the delay in our ability to grow our investment portfolio.
Current wording
After many years of low inflation, the U.S. inflation rate increased substantially during 2022 and remained elevated during 2023 and into the first quarter of 2024. In response to elevated inflation, the U.S. Federal Reserve (the “Fed”) increased the target range for the Federal Funds Rate from 0.25% – 0.50% in the first quarter of 2022 to 5.25% – 5.50% as of May 2024. Many market participants had anticipated that the high trajectory of interest rates during 2022 and throughout 2023 would lead to an economic recession towards the end of 2023 that would have caused the Fed to begin lowering the Federal Funds Rate. However, certain components of the U.S. economy have outperformed expectations and inflation continues to remain higher than the Fed’s target rate, which has caused the Fed to take a “wait-and-see” approach to monetary policy rather than beginning a process of lowering the Federal Funds Rate. The increase in the Federal Funds Rate, along with other actions taken by the Fed, had a ripple effect on other benchmark interest rates, including one-month term Secured Overnight Financing Rate (“SOFR”), which is the reference rate for our indebtedness under the Credit Facility. During the first half of 2024, SOFR remained elevated and only decreased moderately from 5.40% at the beginning of the year to 5.33% at the end of the second quarter. Such elevated SOFR results in higher interest costs on our floating rate borrowings, which negatively affects our operating profits and contributes to the delay in our ability to grow our investment portfolio.
Previous wording
As of March 31, 2024, our portfolio consisted of gross investment in real estate of $1.4 billion, with an aggregate of 4.8 million leasable square feet and an aggregate $110.5 million of annualized base rent.
Current wording
As of June 30, 2024, our portfolio consisted of gross investment in real estate of $1.4 billion, with an aggregate of 4.7 million leasable square feet and an aggregate $106.0 million of annualized base rent. We completed no acquisitions during the six months ended June 30, 2024.
Previous wording
In May 2024, the Company entered into a purchase agreement to acquire a 15-property portfolio of outpatient medical real estate for an aggregate purchase price of $81.3 million. The properties are fully occupied and leased under triple-net or absolute triple-net leases.
Current wording
In May 2024, we entered into a purchase agreement to acquire a 15-property portfolio (the “15-property portfolio”) of outpatient medical real estate. In July 2024 we completed the acquisition of five properties in the 15-property portfolio encompassing 94,494 leasable square feet for an aggregate purchase price of $30.8 million with aggregate annualized base rent of $2.5 million. We expect to complete the acquisition of the remaining 10 properties in the 15-property portfolio, with an aggregate purchase price of $49.5 million, during the fourth quarter of 2024. The Company’s obligation to close the acquisition of the remaining 10 properties in the 15-property portfolio is subject to certain customary terms and conditions, including due diligence reviews. Accordingly, there is no assurance that we will close this acquisition on a timely basis, or at all.
Previous wording
During the three months ended March 31, 2024 we had no property sales. During the three months ended March 31, 2023, we sold a medical office building located in Jacksonville, Florida receiving gross proceeds of $4.4 million, resulting in a gain of approximately $0.5 million.
Current wording
In July 2024, we sold a medical office building located in Panama City, Florida receiving gross proceeds of $11.0 million. This property had a net book value of approximately $8.9 million at the time of sale.
Previous wording
In January 2024, the Company and the Operating Partnership implemented a $300 million “at-the-market” equity offering program, pursuant to which we may offer and sell (including through forward sales), from time to time, shares of our common stock (the “2024 ATM Program”). No shares were sold under the 2024 ATM Program during the three months ended March 31, 2024.
Current wording
In January 2024, the Company and the Operating Partnership implemented a $300 million “at-the-market” equity offering program, pursuant to which we may offer and sell (including through forward sales), from time to time, shares of our common stock (the “2024 ATM Program”). No shares were sold under the 2024 ATM Program during the six months ended June 30, 2024.
Previous wording
During the three months ended March 31, 2024, we borrowed $14.0 million under the Credit Facility and repaid $7.8 million, for a net amount borrowed of $6.2 million. During the three months ended March 31, 2023, we borrowed $12.6 million under the Credit Facility and repaid $14.8 million, for a net amount repaid of $2.2 million. As of March 31, 2024, the net outstanding Credit Facility balance was $592.1 million and as of May 6, 2024, we had unutilized borrowing capacity under the Revolver of $290 million.
Current wording
During the six months ended June 30, 2024, we borrowed $38.5 million under the Credit Facility and repaid $25.9 million, for a net amount borrowed of $12.6 million. During the six months ended June 30, 2023, we borrowed $24.6 million under the Credit Facility and repaid $94.2 million, for a net amount repaid of $69.6 million. As of June 30, 2024, the net outstanding Credit Facility balance was $599.0 million and as of August 5, 2024, we had unutilized borrowing capacity under the Revolver of $261 million.
Previous wording
The major factors that resulted in differences in our financial results for the three months ended March 31, 2024, compared to the same period in 2023, were lower interest rates due to lower leverage and the impact of our interest rate swaps, lower average borrowings, and the impact resulting from three property disposition transactions that were completed during 2023. Our total investment
Current wording
The major factors that resulted in differences in our financial results for the three and six months ended June 30, 2024, compared to the same periods in 2023, were lower interest rates due to lower leverage and the impact of our interest rate swaps, lower average borrowings, a loss on a disposition transaction that was completed in June 2024, and the impact resulting from three property disposition
Previous wording
in real estate, net of accumulated depreciation and amortization, was $1.2 billion as of March 31, 2024 compared to $1.3 billion as of March 31, 2023.
Current wording
transactions that were completed during 2023. Our total investment in real estate, net of accumulated depreciation and amortization, was $1.1 billion as of June 30, 2024 compared to $1.2 billion as of June 30, 2023.
Previous wording
Total revenue for the three months ended March 31, 2024 was $35.1 million, compared to $36.2 million for the same period in 2023, a decrease of $1.1 million. The decrease primarily resulted from the impact of three property disposition transactions during 2023. Within that decrease, $5.0 million in revenue was recognized from net lease expense recoveries during the three months ended March 31, 2024, compared to $5.2 million for the same period in 2023.
Current wording
Total revenue for the three months ended June 30, 2024 was $34.2 million, compared to $36.4 million for the same period in 2023, a decrease of $2.2 million. The decrease primarily resulted from the impact of three property disposition transactions during 2023. Within that decrease, $4.9 million in revenue was recognized from net lease expense recoveries during the three months ended June 30, 2024, compared to $5.0 million for the same period in 2023. Additionally, the current period includes the recognition of reserves for $0.8 million of rent and the write-off of $0.1 million of deferred rent.
Previous wording
General and administrative expenses for the three months ended March 31, 2024 were $4.4 million, compared to $3.8 million for the same period in 2023, an increase of $0.6 million. The increase resulted from an increase in non-cash LTIP compensation expense, which was $1.2 million for the three months ended March 31, 2024, compared to $0.7 million for the same period in 2023, and an increase in cash compensation and general corporate expenses.
Current wording
General and administrative expenses for the three months ended June 30, 2024 were $4.6 million, compared to $4.5 million for the same period in 2023, an increase of $0.1 million. The increase resulted from an increase in non-cash LTIP compensation expense, which was $1.3 million for the three months ended June 30, 2024, compared to $1.1 million for the same period in 2023, partially offset by a decrease in general corporate expenses.
Previous wording
Operating expenses for the three months ended March 31, 2024 were $7.4 million, compared to $7.5 million for the same period in 2023, a decrease of $0.1 million. The decrease resulted primarily from $5.0 million of recoverable property operating expenses incurred during the three months ended March 31, 2024, compared to $5.2 million for the same period in 2023. In addition, our operating expenses included $1.5 million of property operating expenses from gross leases for the three months ended March 31, 2024 and 2023.* *
Current wording
Operating expenses for the three months ended June 30, 2024 and 2023 were $7.2 million. Included in these amounts were $4.9 million of recoverable property operating expenses incurred during the three months ended June 30, 2024, compared to $5.0 million for the same period in 2023. In addition, our operating expenses included $0.9 million of property operating expenses from gross leases for the three months ended June 30, 2024, compared to $1.6 million for the same period in 2023.* *
Previous wording
Amortization expense for the three months ended March 31, 2024 was $4.0 million, compared to $4.4 million for the same period in 2023, a decrease of $0.4 million. The decrease primarily resulted from the impact of three property disposition transactions during 2023.
Current wording
Amortization expense for the three months ended June 30, 2024 was $3.9 million, compared to $4.3 million for the same period in 2023, a decrease of $0.4 million. The decrease primarily resulted from the impact of three property disposition transactions during 2023.
Previous wording
Interest expense for the three months ended March 31, 2024 was $6.9 million, compared to $8.3 million for the same period in 2023, a decrease of $1.4 million. This decrease was due to lower interest rates and lower average borrowings during the three months ended March 31, 2024, compared to the same period in 2023.
Current wording
Interest expense for the three months ended June 30, 2024 was $7.0 million, compared to $8.5 million for the same period in 2023, a decrease of $1.5 million. This decrease was due to lower interest rates and lower average borrowings during the three months ended June 30, 2024, compared to the same period in 2023.
Previous wording
The weighted average interest rate of our debt for the three months ended March 31, 2024 was 3.90% compared to 4.27% for the same period in 2023. Additionally, the weighted average interest rate and term of our debt was 3.85% and 2.7 years at March 31, 2024.
Current wording
The weighted average interest rate of our debt for the three months ended June 30, 2024 was 3.93% compared to 4.39% for the same period in 2023. Additionally, the weighted average interest rate and term of our debt was 3.89% and 2.5 years at June 30, 2024.
Previous wording
Income before gain on sale of investment property for the three months ended March 31, 2024 was $2.3 million, compared to $1.7 million for the same period in 2023, an increase of $0.6 million*.*
Current wording
Income before gain on sale of investment properties for the six months ended June 30, 2024 was $3.7 million, compared to $3.1 million for the same period in 2023, an increase of $0.6 million*.*
Previous wording
Net income for the three months ended March 31, 2024 was $2.3 million, compared to $2.2 million for the same period in 2023, an increase of $0.1 million*.*
Current wording
Net income for the six months ended June 30, 2024 was $0.4 million, compared to $16.4 million for the same period in 2023, a decrease of $16.0 million*.*
Previous wording
As of March 31, 2024 and December 31, 2023, our principal assets consisted of investments in real estate, net of $1.2 billion. We completed no acquisitions or property sales during the three months ended March 31, 2024. Our liquid assets consisted primarily of cash and cash equivalents and restricted cash of $7.8 million and $6.7 million, as of March 31, 2024 and December 31, 2023, respectively.
Current wording
As of June 30, 2024 and December 31, 2023, our principal assets consisted of investments in real estate, net, of $1.1 billion and $1.2 billion, respectively. We completed no acquisitions and completed one property sale during the six months ended June 30, 2024. Our liquid assets consisted primarily of cash and cash equivalents and restricted cash of $7.8 million and $6.7 million, as of June 30, 2024 and December 31, 2023, respectively.
Previous wording
The increase in our total liabilities to $666.5 million as of March 31, 2024 compared to $661.9 million as of December 31, 2023, was primarily the result of higher net borrowings outstanding.
Current wording
The increase in our total liabilities to $662.8 million as of June 30, 2024 compared to $661.9 million as of December 31, 2023, was primarily the result of higher net borrowings outstanding on our Credit Facility, partially offset by a lower notes payable balance outstanding.
Previous wording
In January 2024, the Company and the Operating Partnership implemented the 2024 ATM Program, pursuant to which we may offer and sell (including through forward sales), from time to time, shares of our common stock. No shares were sold under the 2024 ATM Program during the three months ended March 31, 2024 or from April 1, 2024 through May 6, 2024.
Current wording
In January 2024, the Company and the Operating Partnership implemented the 2024 ATM Program, pursuant to which we may offer and sell (including through forward sales), from time to time, shares of our common stock. No shares were sold under the 2024 ATM Program during the six months ended June 30, 2024 or from July 1, 2024 through August 5, 2024.
Previous wording
*Credit Facility.*Our Credit Facility consists of (i) the $350 million Term Loan A, (ii) the $150 million Term Loan B, and (iii) the $400 million Revolver. The Credit Facility also contains a $500 million accordion feature. As of May 6, 2024, we had unutilized borrowing capacity under the Credit Facility of $290 million.
Current wording
*Credit Facility.*Our Credit Facility consists of (i) the $350 million Term Loan A, (ii) the $150 million Term Loan B, and (iii) the $400 million Revolver. The Credit Facility also contains a $500 million accordion feature. As of August 5, 2024, we had unutilized borrowing capacity under the Credit Facility of $261 million.
Previous wording
We are subject to a number of financial covenants under the Credit Facility, including, among other things, the following as of the end of each fiscal quarter, (i) a maximum consolidated unsecured leverage ratio of less than 60%, (ii) a maximum consolidated secured leverage ratio of less than 30%, (iii) a maximum consolidated secured recourse leverage ratio of less than 10%, (iv) a minimum fixed charge coverage ratio of 1.50:1.00, (v) a minimum unsecured interest coverage ratio of 1.50:1.00, (vi) a maximum consolidated leverage ratio of less than 60%, and (vii) a minimum net worth of $573 million plus 75% of all net proceeds raised through equity
Current wording
We are subject to a number of financial covenants under the Credit Facility, including, among other things, the following as of the end of each fiscal quarter, (i) a maximum consolidated unsecured leverage ratio of less than 60%, (ii) a maximum consolidated secured leverage ratio of less than 30%, (iii) a maximum consolidated secured recourse leverage ratio of less than 10%, (iv) a minimum fixed charge coverage ratio of 1.50:1.00, (v) a minimum unsecured interest coverage ratio of 1.50:1.00, (vi) a maximum consolidated leverage ratio of less than 60%, and (vii) a minimum net worth of $573 million plus 75% of all net proceeds raised through equity offerings subsequent to March 31, 2022. As of June 30, 2024, management believed it complied with all of the financial and non-financial covenants contained in the Credit Facility.
Previous wording
*Other Fixed Debt.*We have $25.7 million in gross notes payable as of March 31, 2024. This debt is comprised of three instruments.
Current wording
*Other Fixed Debt.*We have $14.7 million in gross notes payable as of June 30, 2024. This debt is comprised of two instruments.
Previous wording
Total Fixed Debt. Our fixed debt totaled $525.7 million on a gross basis at March 31, 2024, with a weighted average interest rate of 3.31% based on our interest rate swaps and at current leverage. The weighted average maturity of our fixed debt was 2.6 years at March 31, 2024. Due to our forward swap structures, the weighted average interest rate on fixed debt outstanding as of March 31, 2024 is expected to improve over the next two years.
Current wording
Total Fixed Debt. Our fixed debt totaled $514.7 million on a gross basis at June 30, 2024, with a weighted average interest rate of 3.28% based on our interest rate swaps and at current leverage. The weighted average maturity of our fixed debt was 2.4 years at June 30, 2024. Due to our forward swap structures, the weighted average interest rate on fixed debt outstanding as of June 30, 2024 is expected to improve over the next two years.
Previous wording
Net cash provided by operating activities for the three months ended March 31, 2024 was $14.3 million, compared to $15.8 million for the same period in 2023. During the 2024 period non-cash depreciation and amortization expenses were lower, tenant receivables increased, and certain liabilities decreased, partially offset by an increase in non-cash LTIP compensation expense and higher net income.
Current wording
Net cash provided by operating activities for the six months ended June 30, 2024 was $33.2 million, compared to $33.6 million for the same period in 2023. During the 2024 period net income was lower, non-cash depreciation and amortization expenses were lower, and tenant receivables and deferred assets were higher, partially offset by a loss on the sale of an investment property, and an increase in non-cash LTIP compensation expense.
Previous wording
Net cash used in investing activities for the three months ended March 31, 2024 was $2.7 million, compared to net cash provided by investing activities of $3.1 million for the same period in 2023. During the 2024 period, more funds were used for capital expenditures on existing real estate investments and leasing commissions and we received no proceeds from the sale of investment properties.
Current wording
Net cash used in investing activities for the six months ended June 30, 2024 was $0.9 million, compared to net cash provided by investing activities of $65.1 million for the same period in 2023. During the 2024 period we received less net proceeds from the sale of investment properties and more funds were used for capital expenditures on existing real estate investments and leasing commissions.
Previous wording
Net cash used in financing activities for the three months ended March 31, 2024 was $10.5 million, compared $19.3 million for the same period in 2023. During the 2024 period we had net borrowings on our Credit Facility.
Current wording
Net cash used in financing activities for the six months ended June 30, 2024 was $31.2 million, compared $103.4 million for the same period in 2023. During the 2024 period, in addition to dividends paid to common and preferred stockholders as well as holders of OP Units and LTIP Units, we had net borrowings on our Credit Facility, partially offset by the repayment of our notes payable.
Previous wording
Funds from operations (“FFO”) and adjusted funds from operations (“AFFO”) are non-GAAP financial measures within the meaning of the rules of the SEC. The Company considers FFO and AFFO to be important supplemental measures of its operating performance and believes FFO is frequently used by securities analysts, investors, and other interested parties in the evaluation of REITs, many of which present FFO when reporting their results.
Current wording
Funds from operations attributable to common stockholders and noncontrolling interest (“FFO”) and adjusted funds from operations attributable to common stockholders and noncontrolling interest (“AFFO”) are non-GAAP financial measures within the meaning of the rules of the SEC. The Company considers FFO and AFFO to be important supplemental measures of its operating performance and believes FFO is frequently used by securities analysts, investors, and other interested parties in the evaluation of REITs, many of which present FFO when reporting their results.
Previous wording
A reconciliation of net income to FFO and AFFO for the three months ended March 31, 2024 and 2023 is as follows:
Current wording
A reconciliation of net income to FFO and AFFO for the three and six months ended June 30, 2024 and 2023 is as follows:
Previous wording
A reconciliation of net income to EBITDAreand Adjusted EBITDAre for the three months ended March 31, 2024 and 2023 is as follows:
Current wording
A reconciliation of net income to EBITDAreand Adjusted EBITDAre for the three and six months ended June 30, 2024 and 2023 is as follows:
Rearranged current paragraphs (3)
Current report — wording carried from elsewhere
Operating expenses for the six months ended June 30, 2024 were $14.6 million, compared to $14.8 million for the same period in 2023, a decrease of $0.2 million. The decrease resulted primarily from $9.9 million of recoverable property operating expenses incurred during the six months ended June 30, 2024, compared to $10.2 million for the same period in 2023. In addition, our operating expenses included $2.4 million of property operating expenses from gross leases for the six months ended June 30, 2024, compared to $3.1 million for the same period in 2023.* *
Current report — wording carried from elsewhere
Interest expense for the six months ended June 30, 2024 was $13.9 million, compared to $16.7 million for the same period in 2023, a decrease of $2.8 million. This decrease was due to lower interest rates and lower average borrowings during the six months ended June 30, 2024, compared to the same period in 2023.
Current report — wording carried from elsewhere
The weighted average interest rate of our debt for the six months ended June 30, 2024 was 3.92% compared to 4.32% for the same period in 2023. Additionally, the weighted average interest rate and term of our debt was 3.89% and 2.5 years at June 30, 2024.
Rearranged previous paragraphs (3)
Previous report — wording carried elsewhere
The Company expects to complete this acquisition in two tranches, with the first tranche (approximately $30 million - $35 million) closing in the third quarter of 2024 and the remainder closing in the fourth quarter of 2024. The Company’s obligation to close the acquisition is subject to certain customary terms and conditions, including due diligence reviews. Accordingly, there is no assurance that the Company will close this acquisition on a timely basis, or at all.
Previous report — wording carried elsewhere
Income Before Gain on Sale of Investment Property
Previous report — wording carried elsewhere
offerings subsequent to March 31, 2022. As of March 31, 2024, management believed it complied with all of the financial and non-financial covenants contained in the Credit Facility.