Global Medical REIT Inc. (NYSE:GMRE) traded 2.5% lower in Thursday’s premarket session after the company said it will launch an underwritten public offering of its Series B Cumulative Redeemable Preferred Stock.
As part of the deal, the healthcare-focused REIT will provide underwriters with a 30-day option to buy additional shares to cover any over-allotments. GMRE said it plans to deploy the proceeds toward general corporate purposes, which may include new property acquisitions and debt repayment, including amounts drawn on its credit facility.
The real estate trust also intends to list the new Series B Preferred Stock on the New York Stock Exchange under the ticker “GMRE-PrB.” Raymond James, BMO Capital Markets, Stifel, and Baird have been appointed as book-running managers for the transaction.
Stock offerings often weigh on share prices in the short term due to concerns around dilution from an increased number of outstanding shares. While additional capital can support future expansion, investors can react cautiously until the long-term benefits become clearer.
Global Medical REIT focuses on purchasing modern, specialty healthcare facilities and leasing them to hospital systems and physician groups across the U.S.