Global Medical REIT Completes One-for-Five Reverse Stock Split, Prepares for Trading Under Adjusted Share Structure
Global Medical REIT Inc. (NYSE: GMRE), a real estate investment trust focused on healthcare-related properties, announced that it has successfully completed its previously disclosed one-for-five reverse stock split of its common shares. The move, which officially took effect on September 20, 2025, at 5:00 p.m. Eastern Time, represents a significant adjustment to the company’s capital structure and share count as it continues to position itself for long-term growth in the healthcare real estate market.
The company confirmed that starting with the opening bell on Monday, September 22, 2025, its shares will begin trading on the New York Stock Exchange on a split-adjusted basis under its longstanding ticker symbol “GMRE.” The newly adjusted shares will carry a new CUSIP number: 37954A303.
Details of the Reverse Stock Split
Under the terms of the reverse stock split, every five shares of Global Medical REIT’s common stock were automatically converted into one share. As a result of this transaction:
- The company’s authorized shares of common stock were reduced from 500 million to 100 million.
- The number of shares outstanding dropped from approximately 67.0 million to 13.4 million.
- The par value of each share remains unchanged at $0.001 per share.
Importantly, the adjustment also impacted other share-related structures tied to the company’s equity. The aggregate number of shares authorized for repurchase, the shares issuable under Global Medical REIT’s equity incentive plan, and all outstanding equity awards and partnership units of its operating partnership, Global Medical REIT L.P., were ratably adjusted to reflect the one-for-five ratio.
By conducting the reverse split, the company maintained its capital integrity while ensuring its trading price better reflects its corporate value.
Fractional Shares and Cash Payments
In transactions of this nature, some shareholders inevitably end up with fractions of shares due to the conversion ratio. Global Medical REIT confirmed that no fractional shares were issued as part of the reverse split. Instead, shareholders who would have been entitled to a fractional share received a cash payment in lieu of fractional ownership.
The cash amount is based on the closing price of GMRE shares on the NYSE on September 20, 2025. This ensures that all investors were treated fairly and equitably during the process.
For most investors, the reverse split did not alter their percentage ownership in the company. Each shareholder’s proportional stake in Global Medical REIT remains effectively the same, apart from negligible adjustments due to the rounding of fractional shares into cash payments.
Shareholder Communication and Logistics
The company emphasized that stockholders of record will soon receive official correspondence from Equiniti Trust Company, Global Medical REIT’s transfer agent. This communication will detail the updated share ownership following the reverse split, as well as provide information about any cash in lieu of fractional shares where applicable.
For investors holding shares through brokerage accounts or in “street name,” no action is required. These accounts will be automatically adjusted to reflect the one-for-five conversion.
Why Companies Pursue Reverse Stock Splits
Reverse stock splits are not uncommon in the REIT sector or across the broader equity markets. Companies typically pursue them for one or more of the following reasons:
- Boosting Share Price: By consolidating shares, the market price per share increases. For example, if GMRE was trading at $2.50 prior to the split, after the one-for-five consolidation, the new adjusted price would be approximately $12.50, assuming no other market movements.
- Maintaining NYSE Listing Standards: Major exchanges like the NYSE have minimum price requirements. Companies may undertake reverse splits to ensure compliance and avoid delisting.
- Improving Market Perception: A higher stock price can help attract institutional investors and mutual funds, many of which avoid stocks trading at very low nominal values.
- Streamlining Capital Structure: By reducing the number of authorized and outstanding shares, companies can simplify their share base, which may make future financing or share repurchase programs more efficient.
Global Medical REIT has not disclosed a specific reason beyond the technical adjustment, but it is common for healthcare-focused REITs to ensure their shares remain competitive in the public markets, particularly as they seek to maintain access to capital for acquisitions and development.
Global Medical REIT: A Quick Overview
Global Medical REIT (GMRE) is a real estate investment trust that specializes in healthcare-related properties, including medical office buildings, inpatient rehabilitation facilities, and specialty healthcare centers. These assets are typically leased to strong healthcare operators under long-term agreements, providing a stable stream of rental income.
REITs like GMRE play a vital role in the healthcare infrastructure of the United States, offering hospitals, clinics, and specialty providers access to real estate solutions without requiring them to own and manage properties directly. This arrangement allows healthcare providers to focus on patient care while REITs provide the capital and property management expertise.
Over the years, Global Medical REIT has grown its portfolio through acquisitions and strategic partnerships. However, like many REITs, it has faced challenges tied to interest rate fluctuations, broader market volatility, and investor sentiment toward the healthcare real estate sector.
Implications for Investors
The reverse stock split does not fundamentally change the company’s operations or overall market capitalization. Instead, it alters the share count and price dynamics. For investors:
- Ownership Percentage: Shareholders retain the same proportion of ownership in GMRE as they did before the split.
- Liquidity: The total number of shares available for trading is reduced, which could slightly impact daily liquidity, though typically not in a way that hampers institutional or retail activity.
- Perception of Stability: A higher share price post-split may strengthen perceptions of GMRE’s stability among investors and analysts.
- Dividend Adjustments: If GMRE continues to pay dividends, the per-share dividend rate will adjust proportionally to reflect the reverse split. The total value of dividends received by shareholders should remain unaffected.
Broader Context: REITs and Market Pressures
The healthcare REIT sector has seen dynamic shifts in recent years. Rising interest rates, inflationary pressures on construction and maintenance costs, and evolving healthcare delivery models have all influenced the financial strategies of companies like Global Medical REIT.
Reverse stock splits are often a reflection of broader capital market strategies rather than company weakness. For healthcare REITs, access to public equity markets is crucial. These companies depend on their ability to raise funds for acquisitions, developments, and refinancing. By maintaining a stock price that meets investor expectations, GMRE is ensuring it remains well-positioned to compete in a challenging but opportunity-rich market.
Next Steps for Global Medical REIT
As of September 22, 2025, investors will see GMRE shares trading on a split-adjusted basis. Over the coming weeks, the company will focus on:
- Monitoring post-split trading activity and ensuring liquidity remains healthy.
- Continuing to pursue its portfolio strategy, which includes acquiring and managing mission-critical healthcare properties.
- Communicating with shareholders to reinforce confidence in the company’s strategic direction.
While the reverse split is a structural adjustment, the company’s underlying fundamentals—its property portfolio, tenant relationships, and growth potential—remain unchanged.
