GMRE: Reverse Split And Higher Multiple Will Support Stronger Future Upside

Analysts have raised their price target on Global Medical REIT from approximately $12 to about $57 per share, citing an updated fair value assessment that offsets modestly lower revenue growth and profit margin expectations, along with a slightly richer future earnings multiple.

What's in the News

• Global Medical REIT amended its charter under Maryland law to implement a 1 for 5 reverse stock split, consolidating every five existing common shares into one new share with a par value of $0.005. (Key Developments)
• No fractional shares will remain outstanding after the reverse split, with investors receiving cash in lieu of fractional entitlements based on the pre split New York Stock Exchange closing price multiplied by five. (Key Developments)
• Shares reduced by the reverse split will revert to authorized but unissued status, increasing flexibility for future equity issuance at the new par value. (Key Developments)
• The company reported that, under its August 13, 2025 buyback authorization, it repurchased no shares and deployed no capital between August 12, 2025 and September 30, 2025. (Key Developments)

Valuation Changes

• Fair Value Estimate increased significantly from approximately $11.52 to about $57.15 per share, implying a materially higher long term intrinsic value assessment.
• Discount Rate edged down slightly from roughly 9.36 percent to about 9.36 percent, providing a modest lift to the present value of future cash flows.
• Revenue Growth was reduced meaningfully from around 8.39 percent to about 4.79 percent, reflecting more conservative expectations for top line expansion.
• Net Profit Margin was trimmed slightly from roughly 6.11 percent to about 5.80 percent, indicating a modestly less optimistic view on future profitability.
• Future P/E increased moderately from about 94.1x to roughly 100.5x, signaling a somewhat higher assumed valuation multiple on projected earnings.