Global Medical REIT Inc.

Greetings, and welcome to the Global Medical REIT second quarter 2023 earnings conference call. At this time, all participants are in a listen-only mode. A brief question and answer session will follow the formal presentation. If anyone should require operator assistance during the 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, with the best of relations. Thank you, sir. You may begin.

Thank you. Good morning, everyone, and welcome to Global Medical Reads' second quarter 2023 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 which are not historical facts and are considered forward-looking. The company intends these forward-looking statements to be covered by the Safe Harbor Provision's for forward-looking statements contained in the Private Securities Litigation Reform Act of 1995 and is making this statement for the 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 31, 2022, and its other SEC filings. The company assumes no obligation to update publicly any forward-looking statement, 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 current 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 second quarter 2023 earnings call. Our portfolio continues to produce excellent results, with portfolio occupancy at the end of the quarter of 97%, unchanged from the first quarter and a weighted average lease term of 5.8 years. During the quarter, we sold a four-property MLB portfolio in Oklahoma City, Oklahoma, for gross proceeds of $66 million at a 6.5 cap rate, resulting in a gain of $12.8 million. Importantly, We use the net proceeds from this sale to pay down our variable rate debt, resulting in leverage ratio at the end of the quarter of 44.5% and reducing our ratio of variable rate debt to 12% of our total indebtedness. Including the $12.8 million gain from the sale of Oklahoma City properties, our net income attributable to common shareholders for the second quarter of 2023 was $11.8 million, or 18 cents per share, compared to $2.2 million, or 3 cents per share, in the second quarter of 2022. FFOs. in the second quarter was 21 cents per share and unit, down 3 cents from the prior year quarter. And our AFFO was 23 cents per share and unit, down 2 cents from the second quarter of last year. The primary reason for the decline in both the FFO and AFFO was an increase in interest costs due to the elevated interest rate environment. For acquisitions in the quarter, we acquired two medical office buildings in Redding, California for $6.7 million with a 7.6% cap rate. This was primarily funded by our issuance of OP units that were priced at $11 per unit, which helps improve our liquidity and provides tax planning flexibility to sellers. Overall, We continue to spend time identifying properties that meet our investment criteria and our underwriting standards as we start to see more attractive pricing in the market, and we will remain disciplined in our approach. Regarding dispositions, we are very pleased with our progress in selling properties to reduce our variable rate debt and leverage. Inclusive of our Oklahoma City sale through June 30th, we have generated proceeds of $74 million from dispositions. And earlier this week, we closed on a sale of a medical office building in North Charleston at 5.3 cap rate that generated an additional $10.1 million of gross proceeds. These dispositions have enabled us to achieve our goal of reducing our leverage to our target range of between 40 and 45% as of June 30th. Overall, I am pleased with our second quarter results and want to thank the entire team for their hard work and contributions to the results. With that, I turn the call over to Alfonso to discuss our investment activity and our current acquisition market conditions in more detail.