Terms

Series

7.50% Series A Cumulative Redeemable Preferred Stock

Liquidation Preference

$25.00

Coupon Rate

7.5%

Rate Type

Fixed

Annual Dividend

$1.88

Payment Frequency

Quarterly

Cumulative

Yes

Perpetual

Yes

Convertible

Yes

Callable

Yes

First Call Date

September 15, 2022

First Call Price

$25.00

Capital Stack Ranking

Junior To: All Debt And Other Liabilities Of The Company, Any Equity Shares Issued With Terms Specifically Providing They Rank Senior To Series A Preferred Stock (Subject To Two-Thirds Holder Approval); Pari Passu With: Any Preferred Or Convertible Preferred Stock Ranking On Parity With Series A Preferred Stock; Senior To: Common Stock, Any Class Or Series Of Equity Shares Expressly Designated As Junior To Series A Preferred Stock

Regulatory (Basel III) Call

Yes

Tax Classification

Reit Passthrough

Qualifies for QDI

No

Qualifies for DRD

No

Shares Offered

2,700,000

Prospectus Summary

Global Medical REIT Inc. (NYSE: GMRE), a Maryland REIT focused on acquiring and leasing purpose-built healthcare facilities, is offering 2,700,000 shares of its 7.50% Series A Cumulative Redeemable Preferred Stock with a $25.00 liquidation preference and a fixed annual dividend of $1.875 per share ($0.46875 quarterly), payable on January 31, April 30, July 31, and October 31. The shares are perpetual with no maturity date and are callable at $25.00 on or after September 15, 2022. Critically, dividends are cumulative — meaning any unpaid dividends accrue and must be paid in full before the company can pay dividends on common stock, providing meaningful downside protection relative to non-cumulative structures. The Series A Preferred Stock ranks senior to GMRE's common stock and any junior equity, and on parity with future parity preferred shares, but is subordinate to all of the company's existing and future debt obligations. As of June 30, 2017, the company carried approximately $183 million in total debt — meaning preferred holders face structural risk if assets are insufficient to cover creditors first. The company may also redeem the preferred stock in limited circumstances to preserve its REIT qualification under charter ownership restrictions. There is no traditional bank-subsidiary structural subordination risk, but operations and cash flows flow through the Operating Partnership, so preferred dividends depend on distributions from the OP to the holding company. At the $25.00 offering price, the effective yield is 7.50% per annum. As a REIT, Global Medical REIT's dividends generally do not qualify for the preferential 15%/20% qualified dividend income (QDI) rate for individual investors or the dividends-received deduction (DRD) for corporate holders — most distributions will be taxed as ordinary income. Dividends are paid quarterly on the last day of January, April, July, and October, with record dates on the 15th of the preceding month. If the company misses six or more quarterly dividend payments (whether or not consecutive), preferred holders gain the right to elect two additional board directors — but dividends will continue to accrue and must eventually be paid before any common dividend can be resumed.

Summarized from the SEC prospectus filing.

Distribution History

Conversion Terms

Ranking vs. Other Preferreds

Dividend Stopper Provisions

Dividend Stopper Description

If the issuer fails to pay dividends on any shares ranking senior to the Series A Preferred Stock, it cannot pay dividends on the Series A Preferred Stock until senior arrearages are cleared; similarly, if dividends on Series A and parity preferred are not paid in full, all such dividends must be allocated pro rata.

Div Score Breakdown

Reinvesty's multi-factor safety analysis for this preferred, composite score: 31 (Weak)