Global Medical REIT Inc. (NYSE:GMRE) Increases Dividend to $0.75 Per Share

Key Points

• Global Medical REIT Inc. has increased its quarterly dividend to $0.75 per share, a significant 400% increase from the previous $0.15 dividend.
• The company's payout ratio is exceptionally high at 1,200%, indicating reliance on its balance sheet to cover dividend payments, although analysts expect a future payout ratio of 71.4% based on projected earnings.
• Global Medical REIT has also authorized a $50 million share repurchase program, allowing the company to buy back up to 11.1% of its outstanding shares, suggesting the board believes its stock is undervalued.

Global Medical REIT Inc. (NYSE:GMRE - Get Free Report) declared a quarterly dividend on Wednesday, September 3rd, RTT News reports. Shareholders of record on Monday, September 29th will be given a dividend of 0.75 per share on Wednesday, October 15th. This represents a c) dividend on an annualized basis and a yield of 40.7%. This is a 400.0% increase from Global Medical REIT's previous quarterly dividend of $0.15.

Global Medical REIT has a payout ratio of 1,200.0% meaning the company cannot currently cover its dividend with earnings alone and is relying on its balance sheet to cover its dividend payments. Equities analysts expect Global Medical REIT to earn $0.84 per share next year, which means the company should continue to be able to cover its $0.60 annual dividend with an expected future payout ratio of 71.4%.

Global Medical REIT Trading Up 0.6%

GMRE traded up $0.05 during midday trading on Wednesday, reaching $7.37. 472,730 shares of the company's stock traded hands, compared to its average volume of 626,555. The firm has a fifty day moving average of $7.01 and a two-hundred day moving average of $7.35. The stock has a market capitalization of $492.56 million, a price-to-earnings ratio of 105.21, a P/E/G ratio of 1.28 and a beta of 1.16. The company has a debt-to-equity ratio of 1.56, a current ratio of 0.28 and a quick ratio of 0.28. Global Medical REIT has a 52 week low of $6.05 and a 52 week high of $10.46.

Global Medical REIT (NYSE:GMRE - Get Free Report) last released its quarterly earnings results on Tuesday, August 5th. The company reported $0.23 EPS for the quarter, meeting analysts' consensus estimates of $0.23. Global Medical REIT had a return on equity of 2.21% and a net margin of 7.32%.The business had revenue of $37.88 million during the quarter, compared to analyst estimates of $35.57 million. Global Medical REIT has set its FY 2025 guidance at 0.890-0.930 EPS. On average, equities analysts anticipate that Global Medical REIT will post 0.81 earnings per share for the current fiscal year.

Global Medical REIT declared that its board has authorized a share repurchase program on Wednesday, August 13th that permits the company to buyback $50.00 million in outstanding shares. This buyback authorization permits the company to buy up to 11.1% of its stock through open market purchases. Stock buyback programs are often a sign that the company's board believes its shares are undervalued.

About Global Medical REIT

Global Medical REIT Inc (GMRE) is a net-lease medical office real estate investment trust (REIT) that owns and acquires healthcare facilities and leases those facilities to physician groups and regional and national healthcare systems.

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