Boenning & Scattergood analyst Merrill Ross maintained a Buy rating on Global Medical REIT (GMRE) today. The company’s shares opened today at $10.19, close to its 52-week high of $10.72.
Ross noted:
“We estimate about $180 million of acquisitions in 2019 at an average 7.6% cap rate, based on the pricing of its most recent acquisitions. We think the year could be off to a slow start, and that acquisition volume will pick up, based on management’s commentary that one acquisition had closed and another was in the final stages for a total of $21 million. We expect the company to fund this acquisition activity through a combination of debt, equity issued through its ATM program, and issuance of OP units. We note that the company has, as a result of its December 2018 capital raise and asset disposition, a war chest of approximately $70 million to fund acquisitions. With very low turnover in 2019 and 100% portfolio occupancy, there appear to be no internal growth drivers beyond normal rent escalation clauses.”
According to TipRanks.com, Ross is a 1-star analyst with an average return of -0.5% and a 52.1% success rate. Ross covers the Financial sector, focusing on stocks such as Essential Properties Realty Trust Inc, Pennsylvania Real Estate Investment, and Monmouth Real Estate Investment.
Global Medical REIT has an analyst consensus of Hold.
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Based on Global Medical REIT’s latest earnings release for the quarter ending September 30, the company reported a quarterly net profit of $1.74 million. In comparison, last year the company had a net profit of $1.26 million.
Based on the recent corporate insider activity of 12 insiders, corporate insider sentiment is positive on the stock. This means that over the past quarter there has been an increase of insiders buying their shares of GMRE in relation to earlier this year.
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Global Medical REIT, Inc. operates as a development stage company that intends to develop and manage a portfolio of healthcare real estate assets and properties. The company was founded on March 18, 2011 and is headquartered in Bethesda, MD.
