BETHESDA, Md.--(BUSINESS WIRE)--Global Medical REIT Inc. (NYSE:GMRE), a Maryland corporation engaged primarily in the acquisition of licensed, state-of-the-art, purpose-built healthcare facilities and the leasing of these facilities to strong clinical operators with leading market share, today announced the following events:
Closing of Central Texas Rehabilitation Hospital – Austin, Texas
On September 25, 2017, the Company completed the previously announced acquisition of the Central Texas Rehabilitation Hospital in Austin, Texas (the “Austin Facility”) for a purchase price of $40,650,000. Upon the closing of this acquisition, the Company assumed the seller’s interest, as lessor, in the lease of the Austin Facility to CTRH, LLC, which is a joint venture between subsidiaries of Kindred Healthcare and Seton Healthcare, which is part of the Ascension Health System. The lease on the Austin Facility is an absolute triple-net lease with a remaining lease term of approximately 9.6 years, subject to four, five-year renewal options by the tenant. The current annual rent is approximately $2.9 million, subject to annual increases of approximately 3.0%, and 80% of the lease payments are guaranteed by Kindred Healthcare. The initial capitalization rate for the property is approximately 7.1%. Please see the Company’s Current Report on Form 8-K filed with the U.S. Securities and Exchange Commission (“SEC”) on September 29, 2017 for a more detailed description of the acquisition and lease terms, including the lease which is filed as an exhibit to that Current Report.
Jeffrey Busch, the Company’s Chief Executive Officer, commented, “We are excited to enter into the growing Austin, Texas market and continue our partnerships with strong healthcare operators such as Kindred Healthcare and Seton Healthcare.”
Receipt of Lending Commitments on Revolving Credit Facility Accordion Feature
On September 28, 2017, the Company received commitments from certain of its revolving credit facility syndicate members to fund up to $50 million of additional indebtedness under the accordion feature of its revolving credit facility. With the closing of the accordion feature, the total borrowing capacity under the revolving credit facility increased to $250 million. Mr. Busch commented, “We believe the closing of the accordion feature of our revolving credit facility for the full $50 million commitment, in addition to our recent up-sized preferred stock offering, confirms our lenders’ and stockholders’ belief in and commitment to our business and investment strategy.”
Declaration of Series A Preferred Stock Dividend
The Company announced today that its Board of Directors authorized a $0.2396 per share cash dividend to the holders of its Series A Preferred Stock of record as of October 15, 2017, to be paid on October 31, 2017. This dividend represents the Company’s initial dividend on its Series A Preferred Stock for the period from its issuance on September 15, 2017 through October 30, 2017.
About Global Medical REIT Inc.
Global Medical REIT Inc. is a Maryland corporation engaged primarily in the acquisition of licensed, state-of-the-art, purpose-built healthcare facilities and the leasing of these facilities to strong clinical operators with leading market share. The Company intends to produce increasing, reliable rental revenue by expanding its portfolio, and leasing each of its healthcare facilities to market-leading operators under a long-term, triple-net lease. The Company’s management team has significant healthcare, real estate and public real estate investment trust, or REIT, experience and has long-established relationships with a wide range of healthcare providers. The Company intends to elect to be taxed as a REIT for U.S. federal income tax purposes, commencing with its taxable year ended December 31, 2016.