Global Medical REITNYSE: GMRE

Investors looking for stocks in the REIT and Equity Trust - Other sector might want to consider either Global Medical REIT (GMRE) or CubeSmart (CUBE). But which of these two stocks presents investors with the better value opportunity right now?

In the falling interest rate environment, duration-loaded assets thrive. Since REITs enjoy predictable cash flows from long-term agreements, they are quite sensitive to interest rate changes just as bonds. Historical examples, like the Austrian century bond, illustrate the impact of shifting monetary policies on such assets.

Investors interested in stocks from the REIT and Equity Trust - Other sector have probably already heard of Global Medical REIT (GMRE) and COPT Defense (CDP). But which of these two stocks presents investors with the better value opportunity right now?

Slate Grocery REIT has still a dirt cheap multiple, high dividend yield, and strong fundamentals, similar to Global Medical REIT. Currently, Slate carries ~ 30% discount to its closest peers, while having industry-leading organic growth profile stemming from the below market level rent convergence. However, just as GMRE, Slate is exposed to refinancing risk from the 2024 and 2025 debt maturities pushing the interest costs higher.

Global Medical REIT (GMRE) came out with quarterly funds from operations (FFO) of $0.22 per share, in line with the Zacks Consensus Estimate. This compares to FFO of $0.23 per share a year ago.

I love the economics of real estate. But a landlord I'm not.

Global Medical REIT (GMRE) has become technically an oversold stock now, which implies exhaustion of the heavy selling pressure on it. This, combined with strong agreement among Wall Street analysts in revising earnings estimates higher, indicates a potential trend reversal for the stock in the near term.

Global Medical REIT owns 185 healthcare facilities leased to physicians and healthcare-related groups. The REIT's tenants appear to be well-managed, with a strong rent coverage ratio. Global Medical's FFO and AFFO performance remains satisfying, with a comfortable dividend coverage ratio for preferred shares.

Global Medical REIT: Nothing Promising After Q4 Results, Still A Hold