Form 8-K - Current report

 

 

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

 

FORM 8-K

 

CURRENT REPORT

 

PURSUANT TO SECTION 13 OR 15(D) OF THE

SECURITIES EXCHANGE ACT OF 1934

 

Date of Report (Date of earliest event reported): September 17, 2024

 

Global Medical REIT Inc.

(Exact name of registrant as specified in its charter)

 

Maryland	001-37815	46-4757266
(State or Other Jurisdiction of Incorporation)	(Commission File Number)	(I.R.S. Employer Identification No.)

 

7373 Wisconsin Avenue, Suite 800

Bethesda, MD

20814

(Address of Principal Executive Offices)

(Zip Code)

 

[phone]

(Registrant’s Telephone Number, Including Area Code)

 

Not Applicable

(Former name or former address, if changed since last report)

 

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

 

¨	Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
¨	Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
¨	Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
¨	Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

 

Securities registered pursuant to Section 12(b) of the Act:

 

Title of each class:		Trading Symbols:		Name of each exchange on which registered:
Common Stock, par value $0.001 per share		GMRE		NYSE
Series A Preferred Stock, par value $0.001 per share		GMRE PrA		NYSE

 

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (17 CFR §230.405) or Rule 12b-2 of the Securities Exchange Act of 1934 (17 CFR §240.12b-2).

 

Emerging growth company ¨

 

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ¨

 

 

 

 

 

Item 8.01

Other Events.

 

On September 17, 2024, Global Medical REIT Inc. (the “Company”) issued a press release announcing that (i) the Company has entered into a new, 15-year, triple-net lease with an affiliate of CHRISTUS Health at the Company’s healthcare facility in Beaumont, Texas (the “Beaumont Facility”) and (ii) the former tenant, Steward Health Care (“Steward”), formally requested that its lease with the Company at the Beaumont Facility be rejected by the bankruptcy court as of September 15, 2024, as part of Steward’s Chapter 11 bankruptcy proceedings, and a final order rejecting such lease is pending with the court. A copy of the press release is attached to this Current Report on Form 8-K as Exhibit 99.1 and is incorporated herein by reference.

 

Item 9.01

Financial Statements and Exhibits.

 

(d)

Exhibits

 

Exhibit No.		Description
99.1		Press Release dated September 17, 2024.
104		Cover Page Interactive Data File (embedded within the Inline XBRL document)

 

 

 

 

SIGNATURES

 

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

 

	Global Medical REIT Inc.
	By:	/s/ Jamie A. Barber
		Jamie A. Barber
		Secretary and General Counsel

 

Date: September 17, 2024

 

 

Exhibit 99.1

 

 

Global Medical REIT Announces Lease with CHRISTUS Health at its Facility in Beaumont, Texas

 

CHRISTUS Health Lease is a triple-net lease with a term of 15 years

 

Former tenant, Steward Health Care, formally requested that its lease be rejected as of September 15, 2024, as part of its Chapter 11 bankruptcy proceedings

 

Bethesda, MD – September 17, 2024 – (BUSINESS WIRE) – Global Medical REIT Inc. (NYSE: GMRE) (the “Company” or “GMRE”), a net-lease medical real estate investment trust (REIT) that acquires healthcare facilities and leases those facilities to physician groups and regional and national healthcare systems, today announced that it has entered into a new, 15-year, triple-net lease with an affiliate of CHRISTUS Health (“CHRISTUS”) at its healthcare facility in Beaumont, Texas (the “Beaumont Facility”). CHRISTUS will utilize the Beaumont Facility for, among other services, robotic surgery, orthopedic care and emergency services. The Beaumont Facility was previously tenanted by Steward Health Care (“Steward”), which filed for Chapter 11 bankruptcy on May 6, 2024. Steward has formally requested that its lease with us at the Beaumont Facility be rejected by the bankruptcy court as of September 15, 2024, and a final order rejecting such lease is pending with the court.

 

Jeffrey M. Busch, Chairman, Chief Executive Officer and President stated, “We are excited to begin a new relationship with CHRISTUS at our Beaumont, Texas facility. We believe the facility is a high-quality, marketable facility, and this has been verified by our new, long-term, triple-net lease with CHRISTUS. The situation at our Beaumont facility demonstrates the importance of underwriting both tenant and building. I’m very pleased with how quickly our team was able to re-lease the property to a high-quality tenant, delivering an excellent outcome in this difficult situation.”

 

Paul Generale, Executive Vice President and Chief Strategy Officer of CHRISTUS stated, “We look forward to our partnership with GMRE and believe the Beaumont facility will be an essential component as we expand quality health care services to the residents of Southeast Texas.”

 

About CHRISTUS Health

 

CHRISTUS Health (S&P: A+; Fitch A+) is an international faith-based, not-for-profit health care system based in Irving, Texas, with more than 60 hospitals in Texas, Louisiana, New Mexico, Chile, Colombia and Mexico. CHRISTUS Health is made up of 51,000 Associates providing compassionate and individualized care at more than 600 centers, including community hospitals, clinics, long-term care facilities and health ministries.

 

About the Lease

 

The lease is a triple-net lease that will cover the entire Beaumont Facility, which is a two-story medical facility consisting of 84,674 leasable square feet, located at 6025 Metropolitan Drive, Beaumont, Texas 77706. The lease term is 15 years with three, seven-year renewal options. Annual base rent for the first lease year equals $2.9 million with 2.5% annual rent increases thereafter. Rent payments will commence three months after the delivery date of the facility, and we expect to deliver the facility to CHRISTUS during the fourth quarter of 2024.

 

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FORWARD-LOOKING STATEMENTS

 

Certain statements contained herein may be considered “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995, and it is the Company’s intent that any such statements be protected by the safe harbor created thereby. These forward-looking statements are identified by their use of terms and phrases such as "anticipate," "believe," "could," "estimate," "expect," "intend," "may," "should," "plan," "predict," "project," "will," "continue" and other similar terms and phrases, including references to assumptions and forecasts of future results. Except for historical information, the statements set forth herein including, but not limited to, any statements regarding leases, lease rejection and lease rejection timing, lease commencement dates, tenants and other lease terms are forward-looking statements. These forward-looking statements are based on our current expectations, estimates and assumptions and are subject to certain risks and uncertainties. Although the Company believes that the expectations, estimates and assumptions reflected in its forward-looking statements are reasonable, actual results could differ materially from those projected or assumed in any of the Company’s forward-looking statements. Additional information concerning us and our business, including additional factors that could materially and adversely affect our financial results, include, without limitation, the risks described under Part I, Item 1A - Risk Factors, in our Annual Report on Form 10-K, our Quarterly Reports on Form 10-Q, and in our other filings with the SEC. You are cautioned not to place undue reliance on forward-looking statements. The Company does not intend, and undertakes no obligation, to update any forward-looking statement.

 

Investor Relations Contact:

 

Stephen Swett

[e-mail]

203.682.8377

 

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Cover	Sep. 17, 2024
Document Information [Line Items]
Document Type	8-K
Amendment Flag	false
Document Period End Date	Sep. 17, 2024
Entity File Number	001-37815
Entity Registrant Name	Global Medical REIT Inc.
Entity Central Index Key	0001533615
Entity Tax Identification Number	46-4757266
Entity Incorporation, State or Country Code	MD
Entity Address, Address Line One	7373 Wisconsin Avenue
Entity Address, Address Line Two	Suite 800
Entity Address, City or Town	Bethesda
Entity Address, State or Province	MD
Entity Address, Postal Zip Code	20814
City Area Code	202
Local Phone Number	524-6851
Written Communications	false
Soliciting Material	false
Pre-commencement Tender Offer	false
Pre-commencement Issuer Tender Offer	false
Entity Emerging Growth Company	false
Common Stock [Member]
Document Information [Line Items]
Title of 12(b) Security	Common Stock, par value $0.001 per share
Trading Symbol	GMRE
Security Exchange Name	NYSE
Series A Preferred Stock [Member]
Document Information [Line Items]
Title of 12(b) Security	Series A Preferred Stock, par value $0.001 per share
Trading Symbol	GMRE PrA
Security Exchange Name	NYSE

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