GMRE - Global Medical REIT: Better Q1 Than Expected But Still A Cautious Stance

2024-05-09 14:16:34 ET

Summary

• While I have been covering Global Medical since early 2019 and it is still my only healthcare REIT in the portfolio, a couple of quarters ago I turned bearish here.
• The reason for this is very minor margin of safety when it comes to GMRE's ability to accommodate the current dividend.
• However, the recently announced Q1, 2024 results showed an improved picture, where there was a clear stability in the AFFO generation and some attractive moves in the M&A space.
• While the profile has indeed improved, I still remain cautious and I am certainly not adding more or reinvesting the dividends here.
• In this article, I elaborate on Q1, 2024, and explain why I have decided to maintain a hold rating.

As most of my followers have probably noticed it by now, I have been actively covering Global Medical ( GMRE ) since early 2019, when I issued my first bull thesis . GMRE was also my first ever REIT investment and up to this day, it still is the only health care REITs in my portfolio....

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