Global Medical REIT Inc.

Greetings and welcome to the Global Medical REIT Third Quarter 2022 Earnings Conference Call. At this time, all participants are in a listen-only mode. A question and answer session will follow the formal presentation. If anyone should require operator assistance during a conference, please press star zero on your telephone keypad. As a reminder, this conference is being recorded. It is now my pleasure to introduce your host, Steve Sweat, Investor Relations. Thank you. You may begin.

Thank you. Good morning, everyone, and welcome to Global Medical REIT's third quarter 2022 earnings conference call. On the call today are Jeff Bush, Chief Executive Officer, Alfonso Leon, Chief Investment Officer, and Bob Kiernan, Chief Financial Officer. Please note the use of forward-looking statements by the company on this conference call. Statements made on this call may include statements that are not historical facts and are considered forward-looking. The company intends these forward-looking statements to be covered by the Safe Harbor provisions for forward-looking statements contained in the Private Securities Litigation Reform Act of 1995, and is making this statement for purpose of complying with those safe harbor provisions. Furthermore, actual results may differ materially from those described in the forward-looking statements, and will be affected by a variety of risks and factors that are beyond the company's control, including, without limitation, those contained in the company's 10-K for the year ended December 31st, 2021, and its other SEC filings. the company assumes no obligation to update publicly any forward-looking statements, whether as a result of new information, future events, or otherwise. Additionally, on this call, the company may refer to certain non-GAAP financial measures, such as funds from operations, adjusted funds from operations, EBITRE, and adjusted EBITRE. You can find a tabular reconciliation of these non-GAAP financial measures to the most currently comparable GAAP numbers in the company's earnings release and filings with the SEC. Additional information may be found on the investor relations page of the company's website at www.globalmedicalreit.com. I would now like to turn the call over to Jeff Bush, Chief Executive Officer of Global Medical REIT. Jeff?

Thank you, Steve. Good morning, and thank you for joining our third quarter 2022 earnings call. Our high-quality portfolio of needs-based healthcare facilities continues to produce excellent results in the third quarter with 97 occupancy and a stable cash flow we achieved an 18.1 year-over-year increase in total revenue to 35.4 million dollars driven primarily by our acquisition activity over the past year including a 6.8 million gain from the sale of a property. Our net income attributable to common shareholders for the third quarter of 2022 was $8.1 million or 12 cents per share compared to $3.7 million or 6 cents per share in the third quarter of 2021. FFO in the third quarter was 23 cents per share and unit in line with last year and our AFFO per share increased by a penny to 25 cents per share and unit compared to the third quarter of 2021. As we have discussed, the acquisition environment for our target assets continues to evolve. The Federal Reserve focuses on fighting inflation has led to a material increase in interest rates this year, impacting the marginal cost of capital for buyers. Potential sellers, meanwhile, are adapting more gradually to the new reality, resulting in an acquisition market that has slowed significantly. This is very much in line with what we have seen in the past cycles when the bid-ask spread was widened. We are hopeful to see some thawing in early 2023, but it is difficult to predict. That said, in the third quarter, we continue to find attractive acquisitions that meet our quality and yield targets, closing five acquisitions for $51 million. Our average cap rate for the third quarter acquisitions was 7.1%, but this was impacted by one of our acquisitions, which was only 74% occupied, but has substantial upside. I would also note that the other two acquisitions that closed in September had a cap rate high in the sevens and low eights. These transactions more fully represent negotiations that took place after significant interest rate increase had started. In August, we expanded our credit facility with $150 million term loan and extended the term of our revolver. We also entered into interest rate swaps that fixed the interest rate on our new term loan through its maturity, bringing our fixed rate debt ratio to approximately 80% of our total debt. Looking forward, we will be extremely selective in pursuing any incremental acquisitions until cap rates better reflect the higher cost of capital. In the meantime, we are conducting a strategic review to identify properties that we can sell with a focus on properties where we have added value since acquisition by lease extension, leasing up vacancies, or upgrading credit. Assets that can be considered core properties. We expect to use any proceeds in the sales to reduce our outstanding debt, increasing our dry powder to be in the position to restart acquisitions when market conditions improve. We will provide more color on the proceeds we expect to generate and the reduction in leverage we are targeting as we move ahead. But we believe this is a prudent course of action to take and miss this highly vital economic and capital markets environment. Overall, I am pleased with our third quarter results and want to thank the team for their hard work and contributions to our results. With that, I'd like to turn the call over to Alfonso to discuss our investment activity in more detail.