Global Medical REIT: Attractive Valuation Despite Refinancing Headwinds
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Global Medical REIT is facing refinancing challenges due to low average debt maturity, which may impact its AFFO growth in 2025-2026. However, the REIT is expected to see marginally higher AFFO in 2025 due to rent indexation and portfolio growth.
January 27, 2025 | 12:30 am
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Global Medical REIT is expected to see marginally higher AFFO in 2025 due to rent indexation and portfolio growth, despite refinancing challenges from low average debt maturity.
The REIT's strategy of investing in outpatient medical facilities in key markets like Texas, Florida, and Ohio is expected to yield higher AFFO in 2025. However, the low average maturity of its debt, despite being 81% fixed-rate, suggests that rising interest costs could impact AFFO growth in 2025-2026. The fading impact of the Steward Health Care bankruptcy is a positive factor.
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