GMRE - Global Medical REIT tenant Pipeline Health to assume White Rock hospital leases

Global Medical REIT ( NYSE: GMRE ) said Tuesday Pipeline Health, the tenant at GMRE's White Rock Medical Center in Texas, will assume its leases as part of its approved reorganization plan.

Pipeline will assume the leases subject to amendments to facilitate its exit from bankruptcy proceedings.

Proposed amendments relate to Global Medical ( GMRE ) contingently providing up to $3.8M of proposed new capital expenditure, and application of a portion of Pipeline's security deposit to rental payments due during the first year after bankruptcy. The amendments have not been finalized.

There will be no changes to prospective cash rents, rental rate per sq. ft., prospective rent escalations, or lease term.

"We believe Pipeline restructured itself with a narrower focus that includes the Dallas, Texas market, which should provide it a firmer footing to weather what has been a challenging market for acute-care hospitals," said Global Medical ( GMRE ) CEO Jeffrey Busch. "Because we structured the original transaction with significant credit protection, we can provide Pipeline some post-bankruptcy operating flexibility without rent deferrals."

Pipeline must pay any pre-petition rents owed to Global Medical ( GMRE ). Pipeline paid all rents due to the REIT during the bankruptcy process.

Last week, Pipeline assumed Medical Properties Trust's ( MPW ) master lease of four Los Angeles hospitals and two medical office buildings .

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