Global Medical REIT Inc
For the period ended Sep 30, 2024. Filed Nov 7, 2024.
View on SEC.govAbout this filing
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.
Sep 30, 2024 · Filed Nov 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 2024-06-30; filed 2024-08-07.
0001558370-24-011347
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsCurrent report: 10-Q
Period ended 2024-09-30; filed 2024-11-07.
0001558370-24-014861
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 138 previous paragraphs and 144 current paragraphs.
86 unchanged; 33 reworded; 20 added; 16 removed; 3 previous and 5 current paragraphs rearranged.
Tables are not compared: 60 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 (20)
Current report
In September 2024, with the Fed comfortable that the U.S. inflation rate was trending lower, the Fed lowered the target range for the Federal Funds rate by 0.50% to 4.75% - 5.00%, marking the first rate reduction in four years. Currently, the market is anticipating at least one additional rate cut in 2024 as well as further cuts in 2025. While the initial impact of the Fed’s September rate cut was positive, subsequent market sentiment has been more negative with yields on U.S. Treasuries rising during October.
Current report
September 30, 2024, which is lower than it has been during the year, but still significantly higher than in 2021. Interest costs on our floating rate borrowings are directly impacted by changes in SOFR; accordingly, changes in SOFR can either positively or negatively affect our operating profits. Such changes can also impact the market for our target assets.
Current report
Completed Acquisitions
Current report
Completed Property Dispositions
Current report
During the nine months ended September 30, 2024, we completed three dispositions that generated aggregate gross proceeds of $20.2 million, resulting in an aggregate loss of $1.6 million.
Current report
During the three and nine months ended September 30, 2024, we generated gross proceeds of $12.0 million through ATM equity issuances of 1.2 million shares of our common stock at an average offering price of $9.95 per share.
Current report
Recent Developments
Current report
Acquisitions Under Contract Subsequent to September 30, 2024
Current report
Depreciation expense for the three months ended September 30, 2024 was $10.0 million, compared to $10.1 million for the same period in 2023, a decrease of $0.1 million. The decrease primarily resulted from the impact of three property dispositions during 2024, with one disposition completed at the end of the second quarter of 2024 and two dispositions completed during the three months ended September 30, 2024, partially offset by the impact of five properties that were acquired in July 2024.
Current report
Amortization expense for the three months ended September 30, 2024 was $3.6 million, compared to $4.1 million for the same period in 2023, a decrease of $0.5 million. The decrease primarily resulted from the impact of three property dispositions during 2024, with one disposition completed at the end of the second quarter of 2024 and two dispositions completed during the three months ended September 30, 2024, partially offset by the impact of five properties that were acquired in July 2024.
Current report
During the three months ended September 30, 2024, we completed two dispositions resulting in an aggregate gain of $1.8 million. In September 2024, we sold a medical office building located in Panama City Beach, Florida receiving gross proceeds of $1.1 million, resulting in a gain of $0.1 million. In July 2024, we sold a medical office building located in Panama City, Florida receiving gross proceeds of $11.0 million, resulting in a gain of $1.7 million.
Current report
During the three months ended September 30, 2023, we sold a medical office building located in North Charleston, South Carolina receiving gross proceeds of $10.1 million, resulting in a gain of $2.3 million.
Current report
Nine Months Ended September 30, 2024 Compared to Nine Months Ended September 30, 2023
Current report
Operating expenses for the nine months ended September 30, 2024 were $22.1 million, compared to $22.0 million for the same period in 2023, an increase of $0.1 million. While the increase compared to 2023 is not significant, the increase relative to revenue reflects the impact of tenants placed on cash basis accounting subsequent to the end of the third quarter of 2023, partially offset by a net
Current report
Depreciation expense for the nine months ended September 30, 2024 was $30.2 million, compared to $31.1 million for the same period in 2023, a decrease of $0.9 million. The decrease primarily resulted from a full nine months impact during the nine months ended September 30, 2024 from three property dispositions that were completed during the nine months ended September 30, 2023 and the impact from three property dispositions that were completed during the nine months ended September 30, 2024, partially offset by the impact of five properties that were acquired in July 2024.
Current report
Amortization expense for the nine months ended September 30, 2024 was $11.5 million, compared to $12.8 million for the same period in 2023, a decrease of $1.3 million. The decrease primarily resulted from a full nine months impact during the nine months ended September 30, 2024 from three property dispositions that were completed during the nine months ended September 30, 2023 and the impact from three property dispositions that were completed during the nine months ended September 30, 2024, partially offset by the impact of five properties that were acquired in July 2024.
Current report
During the nine months ended September 30, 2024, we completed three dispositions resulting in an aggregate loss of $1.6 million. In September 2024, we sold a medical office building located in Panama City Beach, Florida receiving gross proceeds of $1.1 million, resulting in a gain of $0.1 million. In July 2024, we sold a medical office building located in Panama City, Florida receiving gross proceeds of $11.0 million, resulting in a gain of $1.7 million. 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.
Current report
Net Income
Current report
Net income for the nine months ended September 30, 2024 was $3.8 million, compared to $21.2 million for the same period in 2023, a decrease of $17.4 million*.*
Current report
During the three and nine months ended September 30, 2024, we generated gross proceeds of $12.0 million through ATM equity issuances of 1.2 million shares of our common stock at an average offering price of $9.95 per share.
Removed paragraphs (16)
Previous report
Additionally, as most of our leases are triple-net leases, we are somewhat insulated from the effects of inflation on our operating expenses. However, due to the longer-term nature of our leases, we are not able to quickly increase rents to offset fully the effects of increased interest rates and inflation on our interest expense and other costs. Also, we may not be able to renew expiring leases at lease rates that reflect increases in inflation.
Previous report
Properties Under Contract to Acquire and Completed Acquisitions Subsequent to June 30, 2024
Previous report
Completed Property Disposition
Previous 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.
Previous report
Completed Property Disposition Subsequent to June 30, 2024
Previous report
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 report
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 report
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 report
Depreciation expense for the three months ended June 30, 2024 was $10.1 million, compared to $10.5 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 report
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 report
Net (Loss) Income
Previous 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*.*
Previous report
Six Months Ended June 30, 2024 Compared to Six Months Ended June 30, 2023
Previous 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.
Previous 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.
Previous report
As of June 30, 2024, six of our interest rate swaps related to Term Loan A. The combined notional value of these swaps is $350 million, with $200 million of the swaps maturing in August 2024 and the remaining $150 million maturing in April 2026. In addition, we have three forward starting interest rate swaps with a combined notional value of $200 million, each with a maturity date of April 2026, that will become effective on the August 2024 maturity date of the existing swaps. Currently, the Term Loan A swaps fix the SOFR component of Term Loan A at a rate of 1.50% through August 2024. From August 2024 to April 2026 the SOFR component of Term Loan A will be fixed at 1.36%.
Reworded paragraphs (33)
Previous 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.
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 September 30, 2024, we owned 92.51% of the outstanding common operating partnership units (“OP Units”) of our Operating Partnership, with an aggregate of 7.49% 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
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.
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 August 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 outperformed expectations and inflation continued to remain higher than the Fed’s target rate, causing the Fed to take a “wait-and-see” approach to monetary policy rather than beginning a process of lowering the Federal Funds Rate.
Previous 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.
Current wording
As of September 30, 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 $107.8 million of annualized base rent.
Previous 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.
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. In October 2024 we completed the acquisition of the remaining 10 properties in the 15-property portfolio encompassing 159,726 leasable square feet for an aggregate purchase price of $49.5 million with aggregate annualized base rent of $3.9 million. In aggregate the 15-property portfolio had a purchase price of $80.3 million with 254,220 leasable square feet and annualized base rent of $6.4 million.
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 six months ended June 30, 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”).
Previous 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.
Current wording
During the nine months ended September 30, 2024, we borrowed $82.8 million under the Credit Facility and repaid $55.4 million, for a net amount borrowed of $27.4 million. During the nine months ended September 30, 2023, we borrowed $38.1 million under the Credit Facility and repaid $115.4 million, for a net amount repaid of $77.3 million. As of September 30, 2024, the net outstanding Credit Facility balance was $614.4 million and as of November 5, 2024, we had unutilized borrowing capacity under the Revolver of $221 million.
Previous wording
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 wording
Total revenue for the three months ended September 30, 2024 was $34.3 million, compared to $35.5 million for the same period in 2023, a decrease of $1.2 million. The decrease primarily resulted from changes in our portfolio between the periods, including a reduction in portfolio occupancy in 2024 compared to 2023 as well as the impact of tenants placed on cash basis accounting subsequent to the end of the third quarter of 2023. Within that decrease, $4.8 million in revenue was recognized from net lease expense recoveries during the three months ended September 30, 2024, compared to $5.3 million for the same period in 2023.
Previous wording
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 wording
General and administrative expenses for the three months ended September 30, 2024 and 2023 were $4.4 million. An increase in non-cash LTIP compensation expense, which was $1.3 million for the three months ended September 30, 2024, compared to $1.2 million for the same period in 2023,was partially offset by a decrease in general corporate expenses.
Previous wording
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 wording
Operating expenses for the three months ended September 30, 2024 were $7.4 million, compared to $7.2 million for the same period in 2023, an increase of $0.2 million. While the increase compared to 2023 is not significant, the increase relative to revenue reflects changes in our portfolio between the periods, including increased costs from properties acquired in 2024, and the impact of tenants placed on cash basis accounting subsequent to the end of the third quarter of 2023, partially offset by a net reduction in costs at other properties. Included in these amounts were $4.8 million of recoverable property operating expenses incurred during the three months ended September 30, 2024, compared to $5.3 million for the same period in 2023. In addition, our operating expenses included $1.6 million of property operating expenses from gross leases for the three months ended September 30, 2024, compared to $1.4 million for the same period in 2023.* *
Previous 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.
Current wording
Interest expense for the three months ended September 30, 2024 and 2023 was $7.2 million. Slightly lower interest rates were offset by higher average borrowings during the three months ended September 30, 2024, compared to the same period in 2023.
Previous 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.
Current wording
The weighted average interest rate of our debt for the three months ended September 30, 2024 was 3.97% compared to 3.98% for the same period in 2023. Additionally, the weighted average interest rate and term of our debt was 3.79% and 2.2 years at September 30, 2024.
Previous 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*.*
Current wording
Income before gain on sale of investment properties for the three months ended September 30, 2024 was $1.6 million, compared to $2.5 million for the same period in 2023, a decrease of $0.9 million*.*
Previous 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*.*
Current wording
Net income for the three months ended September 30, 2024 was $3.4 million, compared to $4.8 million for the same period in 2023, a decrease of $1.4 million*.*
Previous 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.
Current wording
Total revenue for the nine months ended September 30, 2024 was $103.6 million, compared to $108.1 million for the same period in 2023, a decrease of $4.5 million. The decrease primarily resulted from a full nine months impact of three property dispositions that were completed during the nine months ended September 30, 2023 and the impact from three property dispositions that were completed during the nine months ended September 30, 2024, partially offset by the impact of five properties that were acquired in July 2024. Within that decrease, $14.7 million in revenue was recognized from net lease expense recoveries during the nine months ended September 30, 2024, compared to $15.5 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 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.
Current wording
General and administrative expenses for the nine months ended September 30, 2024 were $13.4 million, compared to $12.6 million for the same period in 2023, an increase of $0.8 million. The increase resulted from an increase in non-cash LTIP compensation expense, which was $3.8 million for the nine months ended September 30, 2024, compared to $3.0 million for the same period in 2023.
Previous 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.* *
Current wording
reduction in costs at other properties. Included in these amounts were $14.7 million of recoverable property operating expenses incurred during the nine months ended September 30, 2024, compared to $15.5 million for the same period in 2023. In addition, our operating expenses included $4.0 million of property operating expenses from gross leases for the nine months ended September 30, 2024, compared to $4.5 million for the same period in 2023.* *
Previous wording
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 wording
Interest expense for the nine months ended September 30, 2024 was $21.1 million, compared to $23.9 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 nine months ended September 30, 2024, compared to the same period in 2023.
Previous wording
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.
Current wording
The weighted average interest rate of our debt for the nine months ended September 30, 2024 was 3.93% compared to 4.22% for the same period in 2023. Additionally, the weighted average interest rate and term of our debt was 3.79% and 2.2 years at September 30, 2024.
Previous wording
Income before (loss) gain on sale of investment properties for the three months ended June 30, 2024 and 2023 was $1.4 million*.*
Current wording
Income before (loss) gain on sale of investment properties for the nine months ended September 30, 2024 was $5.3 million, compared to $5.6 million for the same period in 2023, a decrease of $0.3 million*.*
Previous wording
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.
Current wording
During the nine months ended September 30, 2023, we completed three dispositions resulting in an aggregate gain of $15.6 million. In August 2023, we sold a medical office building located in North Charleston, South Carolina receiving gross proceeds of $10.1 million, resulting in a gain of $2.3 million. In June 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. In March 2023, 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.
Previous 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.
Current wording
As of September 30, 2024 and December 31, 2023, our principal assets consisted of investments in real estate, net, of $1.2 billion. We completed five acquisitions and completed three property sales during the nine months ended September 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 September 30, 2024 and December 31, 2023, respectively.
Previous wording
The increase in our cash and cash equivalents and restricted cash balances to $7.8 million as of June 30, 2024, compared to $6.7 million as of December 31, 2023, was primarily due to net borrowings on our Credit Facility and net cash provided by operating activities, partially offset by funds used to pay dividends to our common and preferred stockholders and holders of OP Units and LTIP Units and funds used for capital expenditures on existing real estate investments and leasing commissions.
Current wording
The increase in our cash and cash equivalents and restricted cash balances to $7.8 million as of September 30, 2024, compared to $6.7 million as of December 31, 2023, was primarily due to net borrowings on our Credit Facility, net proceeds received from the sale of investment properties, net proceeds received from ATM equity issuances, and net cash provided by operating activities, partially offset by funds used to pay dividends to our common and preferred stockholders and holders of OP Units and LTIP Units, funds used to acquire investment properties, the repayment of notes payable, and funds used for capital expenditures on existing real estate investments and leasing commissions.
Previous 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.
Current wording
The increase in our total liabilities to $678.0 million as of September 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 six months ended June 30, 2024 or from July 1, 2024 through August 5, 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.
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 August 5, 2024, we had unutilized borrowing capacity under the Credit Facility of $261 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 November 5, 2024, we had unutilized borrowing capacity under the Credit Facility of $221 million.
Previous 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.
Current wording
*Other Fixed Debt.*We have $14.5 million in gross notes payable as of September 30, 2024. This debt is comprised of two instruments.
Previous wording
*Hedging Instruments.*We have ten interest rate swaps and three forward-starting interest rate swaps that are used to manage our interest rate risk. A description of these swaps is below:
Current wording
*Hedging Instruments.*We have nine interest rate swaps that are used to manage our interest rate risk. A description of these swaps is below:
Previous 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.
Current wording
Total Fixed Debt. Our fixed debt totaled $514.5 million on a gross basis at September 30, 2024, with a weighted average interest rate of 3.18% based on our interest rate swaps and at current leverage. The weighted average maturity of our fixed debt was 2.1 years at September 30, 2024.
Previous 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.
Current wording
Net cash provided by operating activities for the nine months ended September 30, 2024 was $49.5 million, compared to $50.3 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 an aggregate loss on the sale of investment properties, and an increase in non-cash LTIP compensation expense.
Previous 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.
Current wording
Net cash used in investing activities for the nine months ended September 30, 2024 was $26.4 million, compared to net cash provided by investing activities of $70.7 million for the same period in 2023. During the 2024 period we received less net proceeds from the sale of investment properties, we used funds to acquire 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 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.
Current wording
Net cash used in financing activities for the nine months ended September 30, 2024 was $22.0 million, compared to $127.9 million for the same period in 2023. During the 2024 period, dividends paid to common and preferred stockholders as well as holders of OP Units and LTIP Units and the repayment of our notes payable were partially offset by net borrowings on our Credit Facility and net proceeds received from ATM equity issuances.
Previous 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:
Current wording
A reconciliation of net income to FFO and AFFO for the three and nine months ended September 30, 2024 and 2023 is as follows:
Previous 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:
Current wording
A reconciliation of net income to EBITDAreand Adjusted EBITDAre for the three and nine months ended September 30, 2024 and 2023 is as follows:
Rearranged current paragraphs (5)
Current report — wording carried from elsewhere
The increase in the Federal Funds Rate since 2022, along with other actions taken by the Fed, have 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 ranged from 5.40% at the beginning of the year to 5.33% at the end of the second quarter. In response to the Fed’s rate cut in September, SOFR decreased to 4.85% as of
Current report — wording carried from elsewhere
In October 2024, the Company entered into a purchase agreement to acquire a 5-property portfolio for an aggregate purchase price of $69.6 million. The Company expects to complete this acquisition in two tranches during the first half of 2025. 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.
Current report — wording carried from elsewhere
Income Before Gain on Sale of Investment Properties
Current report — wording carried from elsewhere
Gain on Sale of Investment Properties
Current report — wording carried from elsewhere
As of September 30, 2024, five of our interest rate swaps related to Term Loan A with a combined notional value of $350 million that fix the SOFR component on Term Loan A through April 2026 at 1.36%.
Rearranged previous paragraphs (3)
Previous report — wording carried elsewhere
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.
Previous report — wording carried elsewhere
Income Before (Loss) Gain on Sale of Investment Properties
Previous report — wording carried elsewhere
(Loss) Gain on Sale of Investment Properties