Global Medical REIT Inc (GMRE) has disclosed a new risk, in the Debt & Financing category.
Global Medical REIT Inc. faces a significant financial risk as its interest rate swaps related to a $350 million term loan are set to expire in April 2026. The current swap rate of 1.36% may be replaced by a substantially higher rate, with the five-year forward SOFR swap rate already at 3.97% as of December 31, 2024. This potential increase in borrowing costs could lead to higher costs of capital and reduced earnings, liquidity, and cash available for shareholder distributions, potentially impacting stock trading prices. As the expiration approaches, the company may face challenges in maintaining its financial stability and shareholder value.
Overall, Wall Street has a Strong Buy consensus rating on GMRE stock based on 3 Buys and 1 Hold.
To learn more about Global Medical REIT Inc’s risk factors, click here.