Global Medical REIT Inc. (NYSE:GMRE) Raises 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. Stockholders of record on Monday, September 29th will be given a dividend of 0.75 per share on Wednesday, October 15th. This represents a c) annualized dividend and a dividend yield of 39.3%. The ex-dividend date is Monday, September 29th. 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% indicating that the company cannot currently cover its dividend with earnings alone and is relying on its balance sheet to cover its dividend payments. Equities research 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 Stock Performance

Shares of Global Medical REIT stock traded up $0.03 on Monday, hitting $7.63. The stock had a trading volume of 470,714 shares, compared to its average volume of 675,805. Global Medical REIT has a twelve month low of $6.05 and a twelve month high of $10.46. The business's 50 day moving average is $7.07 and its two-hundred day moving average is $7.31. The company has a quick ratio of 0.28, a current ratio of 0.28 and a debt-to-equity ratio of 1.56. The stock has a market cap of $509.96 million, a price-to-earnings ratio of 108.93, a price-to-earnings-growth ratio of 1.30 and a beta of 1.16.

Global Medical REIT (NYSE:GMRE - Get Free Report) last posted its earnings results on Tuesday, August 5th. The company reported $0.23 EPS for the quarter, meeting the consensus estimate of $0.23. Global Medical REIT had a return on equity of 2.21% and a net margin of 7.32%.The company had revenue of $37.88 million for the quarter, compared to the consensus estimate of $35.57 million. Global Medical REIT has set its FY 2025 guidance at 0.890-0.930 EPS. Analysts forecast that Global Medical REIT will post 0.81 EPS for the current year.

Insiders Place Their Bets

In other Global Medical REIT news, CEO Mark Okey Decker, Jr. bought 57,332 shares of the business's stock in a transaction on Wednesday, June 25th. The stock was purchased at an average cost of $6.50 per share, for a total transaction of $372,658.00. Following the completion of the purchase, the chief executive officer directly owned 160,000 shares of the company's stock, valued at approximately $1,040,000. This trade represents a 55.84% increase in their ownership of the stock. The acquisition was disclosed in a filing with the SEC, which is available through the SEC website. Insiders acquired 161,350 shares of company stock worth $1,052,016 in the last three months. 8.50% of the stock is owned by corporate insiders.

Institutional Investors Weigh In On Global Medical REIT

Institutional investors and hedge funds have recently added to or reduced their stakes in the business. D.A. Davidson & CO. lifted its stake in Global Medical REIT by 8.5% during the first quarter. D.A. Davidson & CO. now owns 494,238 shares of the company's stock worth $4,325,000 after purchasing an additional 38,577 shares during the last quarter. Jane Street Group LLC lifted its stake in Global Medical REIT by 120.7% during the fourth quarter. Jane Street Group LLC now owns 102,125 shares of the company's stock worth $788,000 after purchasing an additional 55,844 shares during the last quarter. Bank of New York Mellon Corp lifted its stake in Global Medical REIT by 10.3% during the first quarter. Bank of New York Mellon Corp now owns 1,550,157 shares of the company's stock worth $13,564,000 after purchasing an additional 144,671 shares during the last quarter. Deutsche Bank AG lifted its stake in Global Medical REIT by 76.6% during the first quarter. Deutsche Bank AG now owns 80,435 shares of the company's stock worth $704,000 after purchasing an additional 34,891 shares during the last quarter. Finally, Two Sigma Investments LP lifted its stake in Global Medical REIT by 84.3% during the fourth quarter. Two Sigma Investments LP now owns 347,113 shares of the company's stock worth $2,680,000 after purchasing an additional 158,809 shares during the last quarter. 57.52% of the stock is currently owned by institutional investors.

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.