Company: GMRE
Filing Date: 2025-11-13
Form Type: 8-K
Source: 0001104659-25-110921
Chunk: 2

Company: Global Medical REIT Inc.
Filing Date: 2025-11-13
Form: 8-K
Item: Item 8.01
Chunk 2
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BITDA reas net income or loss computed in accordance with generally
accepted accounting principles (GAAP) plus depreciation and amortization, interest expense, gain or loss on the sale of investment properties,
property impairment losses, and adjustments for unconsolidated partnerships and joint ventures to reflect EBITDAre on the same basis,
as applicable.

The Company defines Adjusted EBITDA reas
EBITDA replus loss on extinguishment of debt, non-cash stock compensation expense, non-cash intangible amortization related
to above and below market leases, severance and transition related expense, reverse stock split expense, transaction expense, adjustments
related to the Company’s investments in unconsolidated joint ventures, and other normalizing items. Management considers EBITDA reand
Adjusted EBITDA reimportant measures because they provide additional information to allow management, investors, and the Company’s
current and potential creditors to evaluate and compare the Company’s core operating results and the Company’s ability to
service debt.

The Company calculates Net Debt as the principal
amount of total debt outstanding, excluding deferred financing costs, net discounts, and debt issuance costs, less cash, cash equivalents,
and restricted cash available for future investment. The Company believes excluding cash, cash equivalents, and restricted cash available
for future investment from the principal amount of total debt outstanding, all of which could be used to repay debt, provides a useful
estimate of the net contractual amount of borrowed capital to be repaid. The Company believes these adjustments are additional beneficial
disclosures to investors.

NOI, Cash NOI and Same-Store Cash NOI

The Company considers net operating income, or
NOI, to be an appropriate supplemental measure to net income because it helps both investors and management understand the core operations
of the Company’s properties. The Company defines NOI as total net (loss) income, plus depreciation and amortization expenses, general
and administrative expenses, transaction expenses, impairments, gain/loss on sale of real estate, interest expense, and other non-operating
items. Cash NOI and Same Store Cash NOI are key performance indicators. Management considers these to be supplemental measures that allow
investors, analysts and Company management to measure unlevered property-level cash operating results. The Company defines Cash NOI as
NOI excluding non-cash items such as above and below market lease intangibles and straight-line rent. Cash NOI is historical and not necessarily
indicative of future results.

Same Store Cash NOI compares Cash NOI for stabilized