10-Q

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, DC 20549

FORM 10-Q

☑ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended March 31, 2021

OR

☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from ___________ to ___________.

Commission file number: 001-37815

Global Medical REIT Inc.

(Exact name of registrant as specified in its charter)

Maryland	46-4757266
(State or other jurisdiction of incorporation or organization)	(I.R.S. Employer Identification No.)
2 Bethesda Metro Center, Suite 440 Bethesda, MD	20814
(Address of principal executive offices)	(Zip Code)

Registrant’s telephone number, including area code: (202) 524-6851

N/A

(Former name, former address and former fiscal year, if changed since last report)

Securities registered pursuant to Section 12(b) of the Act:

Title of each class:	Trading Symbols:	Name of each exchange on which registered:
Common Stock, par value $0.001 per share	GMRE	NYSE
Series A Preferred Stock, Par value $0.001 per share	GMRE PrA	NYSE

Indicate by check mark whether the registrant: (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. þ Yes ◻ No

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes þ   No ◻

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

Large accelerated filer	◻	Accelerated filer	☐
Non-accelerated filer	þ	Smaller reporting company	☑
		Emerging growth company	☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act ◻

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ☐ No ☑

Indicate the number of shares outstanding of each of the issuer’s classes of common stock, as of the latest practicable date.

The number of shares of the registrant’s common stock outstanding at May 3, 2021 was 60,794,166.

TABLE OF CONTENTS

PART I   FINANCIAL INFORMATION

Item 1.	Financial Statements (Unaudited)
	Condensed Consolidated Balance Sheets – March 31, 2021 and December 31, 2020	3
	Condensed Consolidated Statements of Operations – Three Months Ended March 31, 2021 and 2020	4
	Condensed Consolidated Statements of Comprehensive Income (Loss) – Three Months Ended March 31, 2021 and 2020	5
	Condensed Consolidated Statements of Equity – Three Months Ended March 31, 2021 and 2020	6
	Condensed Consolidated Statements of Cash Flows – Three Months Ended March 31, 2021 and 2020	7
	Notes to the Unaudited Condensed Consolidated Financial Statements	8
Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	32
Item 3.	Quantitative and Qualitative Disclosures About Market Risk	43
Item 4.	Controls and Procedures	43
PART II OTHER INFORMATION
Item 1.	Legal Proceedings	44
Item 1A.	Risk Factors	44
Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	44
Item 3.	Defaults Upon Senior Securities	44
Item 4.	Mine Safety Disclosures	44
Item 5.	Other Information	45
Item 6.	Exhibits	46
Signatures		48

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GLOBAL MEDICAL REIT INC.

Condensed Consolidated Balance Sheets

(unaudited and in thousands, except par values)

	As of
	March 31, 2021		December 31, 2020
Assets
Investment in real estate:
Land	$	133,040	$	128,857
Building		883,901		851,427
Site improvements		15,669		15,183
Tenant improvements		50,596		49,204
Acquired lease intangible assets		103,269		98,234
		1,186,475		1,142,905
Less: accumulated depreciation and amortization		(105,779)		(94,462)
Investment in real estate, net		1,080,696		1,048,443
Cash and cash equivalents		5,304		5,507
Restricted cash		6,096		5,246
Tenant receivables, net		5,585		5,596
Due from related parties		229		103
Escrow deposits		5,163		4,817
Deferred assets		21,676		20,272
Derivative asset		136		—
Goodwill		5,903		5,903
Other assets		5,530		5,019
Total assets	$	1,136,318	$	1,100,906
Liabilities and Equity
Liabilities:
Credit Facility, net of unamortized debt issuance costs of $3,284 and $3,559 at March 31, 2021 and December 31, 2020, respectively	$	420,216	$	521,641
Notes payable, net of unamortized debt issuance costs of $772 and $835 at March 31, 2021 and December 31, 2020, respectively		64,810		64,937
Accounts payable and accrued expenses		7,230		7,279
Dividends payable		14,482		12,470
Security deposits		4,367		4,340
Derivative liability		14,603		18,086
Other liabilities		6,793		6,171
Acquired lease intangible liability, net		7,998		8,222
Total liabilities		540,499		643,146
Commitments and Contingencies
Equity:
Preferred stock, $0.001 par value, 10,000 shares authorized; 3,105 issued and outstanding at March 31, 2021 and December 31, 2020, respectively (liquidation preference of $77,625 at March 31, 2021 and December 31, 2020, respectively)		74,959		74,959
Common stock, $0.001 par value, 500,000 shares authorized; 60,794 shares and 49,461 shares issued and outstanding at March 31, 2021 and December 31, 2020, respectively		61		49
Additional paid-in capital		648,949		504,789
Accumulated deficit		(127,480)		(116,773)
Accumulated other comprehensive loss		(14,588)		(18,219)
Total Global Medical REIT Inc. stockholders' equity		581,901		444,805
Noncontrolling interest		13,918		12,955
Total equity		595,819		457,760
Total liabilities and equity	$	1,136,318	$	1,100,906

The accompanying notes are an integral part of these unaudited condensed consolidated financial statements.

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GLOBAL MEDICAL REIT INC.

Condensed Consolidated Statements of Operations

(unaudited and in thousands, except per share amounts)

	Three Months Ended March 31,
	2021		2020
Revenue
Rental revenue	$	27,325	$	21,533
Other income		24		116
Total revenue		27,349		21,649
Expenses
General and administrative		4,383		1,839
Operating expenses		3,687		2,303
Management fees – related party		—		2,002
Depreciation expense		7,848		5,836
Amortization expense		3,005		1,921
Interest expense		5,037		4,378
Management internalization expense		—		504
Preacquisition expense		66		49
Total expenses		24,026		18,832
Net income	$	3,323	$	2,817
Less: Preferred stock dividends		(1,455)		(1,455)
Less: Net income attributable to noncontrolling interest		(112)		(107)
Net income attributable to common stockholders	$	1,756	$	1,255
Net income attributable to common stockholders per share – basic and diluted	$	0.03	$	0.03
Weighted average shares outstanding – basic and diluted		52,671		44,182

The accompanying notes are an integral part of these unaudited condensed consolidated financial statements.

-4-

GLOBAL MEDICAL REIT INC.

Condensed Consolidated Statements of Comprehensive Income (Loss)

(unaudited and in thousands)

	Three Months Ended March 31,
	2021		2020
Net income	$	3,323	$	2,817
Other comprehensive income (loss):
Increase (decrease) in fair value of interest rate swap agreements		3,631		(13,958)
Total other comprehensive income (loss)		3,631		(13,958)
Comprehensive income (loss)		6,954		(11,141)
Less: Preferred stock dividends		(1,455)		(1,455)
Less: Comprehensive (income) loss attributable to noncontrolling interest		(331)		986
Comprehensive income (loss) attributable to common stockholders	$	5,168	$	(11,610)

The accompanying notes are an integral part of these unaudited condensed consolidated financial statements.

-5-

GLOBAL MEDICAL REIT INC.

Condensed Consolidated Statements of Equity

(unaudited and in thousands)

For the Three Months Ended March 31, 2021:

													Global
											Accumulated		Medical
							Additional				Other		REIT Inc.		Non-
	Common Stock			Preferred Stock			Paid-in		Accumulated		Comprehensive		Stockholders’		controlling		Total
	Shares	Amount		Shares	Amount		Capital		Deficit		Loss		Equity		Interest		Equity
Balances, December 31, 2020	49,461	$	49	3,105	$	74,959	$	504,789	$	(116,773)	$	(18,219)	$	444,805	$	12,955	$	457,760
Net income	—		—	—		—		—		3,211		—		3,211		112		3,323
Issuance of shares of common stock, net	11,333		12	—		—		144,160		—		—		144,172		—		144,172
Change in fair value of interest rate swap agreements	—		—	—		—		—		—		3,631		3,631		—		3,631
Stock-based compensation expense	—		—	—		—		—		—		—		—		1,715		1,715
Dividends to common stockholders ($0.205 per share)	—		—	—		—		—		(12,463)		—		(12,463)		—		(12,463)
Dividends to preferred stockholders ($0.46875 per share)	—		—	—		—		—		(1,455)		—		(1,455)		—		(1,455)
Dividends to noncontrolling interest	—		—	—		—		—		—		—		—		(864)		(864)
Balances, March 31, 2021	60,794	$	61	3,105	$	74,959	$	648,949	$	(127,480)	$	(14,588)	$	581,901	$	13,918	$	595,819

For the Three Months Ended March 31, 2020:

													Global
											Accumulated		Medical
							Additional				Other		REIT Inc.		Non-
	Common Stock			Preferred Stock			Paid-in		Accumulated		Comprehensive		Stockholders’		controlling		Total
	Shares	Amount		Shares	Amount		Capital		Deficit		Loss		Equity		Interest		Equity
Balances, December 31, 2019	43,806	$	44	3,105	$	74,959	$	433,330	$	(71,389)	$	(6,674)	$	430,270	$	30,083	$	460,353
Net income	—		—	—		—		—		2,710		—		2,710		107		2,817
LTIP Units and OP Units redeemed for common stock	472		—	—		—		6,890		—		—		6,890		(6,890)		—
Change in fair value of interest rate swap agreements	—		—	—		—		—		—		(13,958)		(13,958)		—		(13,958)
Stock-based compensation expense	—		—	—		—		—		—		—		—		922		922
Dividends to common stockholders ($0.20 per share)	—		—	—		—		—		(8,856)		—		(8,856)		—		(8,856)
Dividends to preferred stockholders ($0.46875 per share)	—		—	—		—		—		(1,455)		—		(1,455)		—		(1,455)
Dividends to noncontrolling interest	—		—	—		—		—		—		—		—		(1,033)		(1,033)
Balances, March 31, 2020	44,278	$	44	3,105	$	74,959	$	440,220	$	(78,990)	$	(20,632)	$	415,601	$	23,189	$	438,790

The accompanying notes are an integral part of these unaudited condensed consolidated financial statements.

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GLOBAL MEDICAL REIT INC.

Condensed Consolidated Statements of Cash Flows

(unaudited and in thousands)

	Three Months Ended March 31,
	2021		2020
Operating activities
Net income	$	3,323	$	2,817
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation expense		7,848		5,836
Amortization of acquired lease intangible assets		2,984		1,921
Amortization of above market leases, net		60		247
Amortization of debt issuance costs and other		425		315
Stock-based compensation expense		1,715		922
Capitalized preacquisition costs charged to expense		24		7
Other		10		26
Changes in operating assets and liabilities:
Tenant receivables		11		(751)
Deferred assets		(1,404)		(1,629)
Other assets and liabilities		551		28
Accounts payable and accrued expenses		(287)		2,051
Security deposits		27		195
Accrued management fees due to related party		—		275
Net cash provided by operating activities		15,287		12,260
Investing activities
Purchase of land, buildings, and other tangible and intangible assets and liabilities		(43,348)		(68,457)
Escrow deposits for purchase of properties		300		(100)
Loan repayments (made to) received from related parties		(127)		5
Capital expenditures on existing real estate investments		(397)		(211)
Net cash used in investing activities		(43,572)		(68,763)
Financing activities
Net proceeds received from common equity offerings		144,312		—
Payment of accrued common stock offering costs		—		(269)
Escrow deposits required by third party lenders		(646)		(72)
Repayment of notes payable		(190)		(35)
Proceeds from Credit Facility		50,100		81,700
Repayment of Credit Facility		(151,800)		(3,600)
Payment of debt issuance costs		(74)		(44)
Dividends paid to common stockholders, and OP Unit and LTIP Unit holders		(11,315)		(10,031)
Dividends paid to preferred stockholders		(1,455)		(1,455)
Net cash provided by financing activities		28,932		66,194
Net increase in cash and cash equivalents and restricted cash		647		9,691
Cash and cash equivalents and restricted cash—beginning of period		10,753		7,185
Cash and cash equivalents and restricted cash—end of period	$	11,400	$	16,876
Supplemental cash flow information:
Cash payments for interest	$	4,602	$	3,823
Noncash financing and investing activities:
Accrued dividends payable	$	14,482	$	10,949
Interest rate swap agreements fair value change recognized in other comprehensive loss	$	(3,631)	$	13,958
OP Units and LTIP Units redeemed for common stock	$	—	$	6,890
Accrued common stock offering costs	$	220	$	—

The accompanying notes are an integral part of these unaudited condensed consolidated financial statements.

-7-

GLOBAL MEDICAL REIT INC.

Notes to the Unaudited Condensed Consolidated Financial Statements

(in thousands, except per share amounts or as otherwise indicated)

Note 1 – Organization

Global Medical REIT Inc. (the “Company”) is a Maryland corporation engaged primarily in the acquisition of purpose-built healthcare facilities and the leasing of those facilities to strong healthcare systems and groups with leading market share. The Company holds its facilities and conducts its operations through a Delaware limited partnership subsidiary named Global Medical REIT L.P. (the “Operating Partnership”). The Company serves as the sole general partner of the Operating Partnership through a wholly owned subsidiary of the Company named Global Medical REIT GP LLC, a Delaware limited liability company. As of March 31, 2021, the Company was the 93.99% limited partner of the Operating Partnership, with an aggregate of 6.01% of the Operating Partnership owned by holders of long-term incentive plan units (“LTIP Units”) and third-party limited partners who contributed properties or services to the Operating Partnership in exchange for common limited partnership units (“OP Units”). Until July 9, 2020, the Company was externally managed and advised by its former advisor. On July 9, 2020, the Company completed its management internalization transaction, whereby the management agreement with the former advisor was terminated, the employees of the former advisor became employees of the Company and the functions previously performed by the former advisor were internalized by the Company.

Note 2 – Summary of Significant Accounting Policies

Basis of presentation

The accompanying condensed consolidated financial statements are unaudited and include the accounts of the Company, including the Operating Partnership and its wholly owned subsidiaries. The accompanying condensed consolidated financial statements have been prepared in accordance with U.S. generally accepted accounting principles (“GAAP”) and the rules and regulations of the U.S. Securities and Exchange Commission (“SEC”). Certain information and footnote disclosures required for annual consolidated financial statements have been condensed or excluded pursuant to SEC rules and regulations. Accordingly, the accompanying condensed consolidated financial statements do not include all the information and footnotes required by GAAP for complete consolidated financial statements and should be read in conjunction with the audited consolidated financial statements and notes thereto for the year ended December 31, 2020. In the opinion of management, all adjustments of a normal and recurring nature necessary for a fair presentation of the condensed consolidated financial statements for the interim periods have been made.

Principles of Consolidation

The accompanying condensed consolidated financial statements include the accounts of the Company and its  subsidiaries. The Company presents the portion of any equity it does not own but controls (and thus consolidates) as noncontrolling interest. Noncontrolling interest in the Company includes the LTIP Units and the OP Units held by third parties. Refer to Note 5 – “Equity” and Note 7 – “Stock-Based Compensation” for additional information regarding the OP Units and LTIP Units.

The Company classifies noncontrolling interest as a component of consolidated equity on its Condensed Consolidated Balance Sheets, separate from the Company’s total equity. The Company’s net income or loss is allocated to noncontrolling interests based on the respective ownership or voting percentage in the Operating Partnership associated with such noncontrolling interests and is removed from consolidated income or loss on the Condensed Consolidated Statements of Operations in order to derive net income or loss attributable to common stockholders. The noncontrolling ownership percentage is calculated by dividing the aggregate number of LTIP Units and OP Units by the total number of units and shares outstanding. Any future issuances of additional LTIP Units or OP Units would change the noncontrolling ownership interest.

Use of Estimates

The preparation of the condensed consolidated financial statements in conformity with GAAP requires the Company to make estimates and assumptions that affect the amounts reported in the condensed consolidated financial statements and footnotes. Actual results could differ from those estimates.

-8-

Investment in Real Estate

The Company determines when an acquisition meets the definition of a business or alternatively should be accounted for as an asset acquisition in accordance with Accounting Standard Codification (“ASC”) Topic 805 “Business Combinations” (“ASC Topic 805”), which requires that, when substantially all of the fair value of an acquisition is concentrated in a single identifiable asset or a group of similar identifiable assets, the asset or group of similar identifiable assets does not meet the definition of a business and therefore is required to be accounted for as an asset acquisition. Transaction costs are capitalized for asset acquisitions and expensed as incurred for business combinations. All our facility acquisitions for the three months ended March 31, 2021 and 2020 have been accounted for as asset acquisitions because substantially all the fair value of the gross assets the Company acquired were concentrated in a single asset or group of similar identifiable assets.

For asset acquisitions that are “owner occupied” (meaning that the seller either is the tenant or controls the tenant), the purchase price, including capitalized acquisition costs, will be allocated to land and building based on their relative fair values with no value allocated to intangible assets or liabilities. For asset acquisitions that are not “owner occupied,” the Company will allocate the purchase price to tangible assets and any intangible assets acquired or liabilities assumed based on their relative fair values. Fair value is determined based upon the guidance of ASC Topic 820, “Fair Value Measurements and Disclosures,” and generally are determined using Level 2 inputs, such as rent comparables, sales comparables, and broker indications. Although Level 3 Inputs are utilized, they are minor in comparison to the Level 2 data used for the primary assumptions. The determination of fair value involves the use of significant judgment and estimates. We make estimates to determine the fair value of the tangible and intangible assets acquired and liabilities assumed using information obtained from multiple sources, including preacquisition due diligence, and we routinely utilize the assistance of a third-party appraiser.

Revenue Recognition

The Company’s operations primarily consist of rental revenue earned from tenants under leasing arrangements which provide for minimum rent and escalations. The leases have been accounted for as operating leases. For operating leases with contingent rental escalators, revenue is recorded based on the contractual cash rental payments due during the period. Revenue from leases with fixed annual rental escalators are recognized on a straight-line basis over the initial lease term, subject to a collectability assessment, with the difference between the contractual rental receipts and the straight-line amounts recorded as a “deferred rent receivable.” Additionally, the Company recognizes “expense recoveries” revenue, which represents revenue recognized related to tenant reimbursement of real estate taxes, insurance, and certain other operating expenses (“tenant reimbursements”). The Company recognizes these reimbursements and related expenses on a gross basis in its Condensed Consolidated Statements of Operations.

Cash and Cash Equivalents and Restricted Cash

The Company considers all demand deposits, cashier’s checks, money market accounts, and certificates of deposit with a maturity of three months or less to be cash equivalents. Amounts included in restricted cash represent (1) certain security deposits received from tenants at the inception of their leases; (2) cash required to be held by a third-party lender as a reserve for debt service; and (3) funds held by the Company related to tenant reimbursements. The following table provides a reconciliation of the Company’s cash and cash equivalents and restricted cash that sums to the total of those amounts at the end of the periods presented on the Company’s accompanying Condensed Consolidated Statements of Cash Flows:

	As of March 31,
	2021		2020
Cash and cash equivalents	$	5,304	$	11,340
Restricted cash		6,096		5,536
Total cash and cash equivalents and restricted cash	$	11,400	$	16,876

Tenant Receivables, Net

The tenant receivable balance as of March 31, 2021 and December 31, 2020 was $5,585 and $5,596, respectively. The balance as of March 31, 2021 consisted of $1,863 in funds owed from the Company’s tenants for rent that the Company had earned but had not yet received, $1,190 of loans that were made to two of the Company’s tenants, and $2,532 of tenant reimbursements. The balance as of December 31, 2020 consisted of $1,817 in funds owed from the Company’s tenants for rent that the Company had earned but had not yet received, $1,200 of loans that were made to two of the Company’s tenants, and $2,579 of tenant reimbursements.

-9-

Receivables arising from operating leases are accounted for in accordance with ASC Topic 842 “Leases” (“ASC Topic 842”). The Company assesses the likelihood of losses resulting from tenant defaults, or the inability of tenants to make contractual rent and tenant recovery payments at each reporting date. The Company also monitors the liquidity and creditworthiness of its tenants and operators on a continuous basis. If the likelihood of a tenant paying its lease payments is determined to no longer be probable, all tenant receivables, including deferred rent, are written off against revenue and any future revenue for that tenant is recognized only upon receipt of cash. In addition, as of March 31, 2021, the Company had a portfolio level reserve of $450 on those leases that were probable of collection to ensure that the tenant lease receivables were not overstated.  

Escrow Deposits

The escrow balance as of March 31, 2021 and December 31, 2020 was $5,163 and $4,817, respectively. Escrow deposits include funds held in escrow to be used for the acquisition of properties in the future and for the payment of taxes, insurance, and other amounts as stipulated by the Company’s Cantor Loan, as hereinafter defined.

Deferred Assets

The deferred assets balance as of March 31, 2021 and December 31, 2020 was $21,676 and $20,272, respectively. The balance as of March 31, 2021 consisted of $21,596 in deferred rent receivables resulting from the recognition of revenue from leases with fixed annual rental escalations on a straight-line basis and $80 of other deferred costs. The balance as of December 31, 2020 consisted of $20,192 in deferred rent receivables resulting from the recognition of revenue from leases with fixed annual rental escalations on a straight-line basis and $80 of other deferred costs.

Other Assets

The other assets balance as of March 31, 2021 and December 31, 2020 was $5,530 and $5,019, respectively. The balance as of March 31, 2021 consisted of $3,525 for right of use assets, $939 in capitalized preacquisition costs, $738 in prepaid assets, and $328 for net capitalized software costs and miscellaneous assets. The balance as of December 31, 2020 consisted of $3,598 for right of use assets, $484 in capitalized preacquisition costs, $588 in prepaid assets, and $349 for net capitalized software costs and miscellaneous assets. Refer to Note 8 – “Leases” for additional details on right of use assets.

Derivative Instruments - Interest Rate Swaps

As of March 31, 2021 and December 31, 2020, the Company's net liability balance related to interest rate swap derivative instruments that were designated as cash flow hedges of interest rate risk was $14,467 and $18,086, respectively. In accordance with the Company’s risk management strategy, the purpose of the interest rate swaps is to manage interest rate risk for certain of the Company’s variable-rate debt. The interest rate swaps involve the Company’s receipt of variable-rate amounts from four counterparties in exchange for the Company making fixed-rate payments over the life of the agreements. The Company accounts for derivative instruments in accordance with the provisions of ASC Topic 815, “Derivatives and Hedging.” Refer to Note 4 – “Credit Facility, Notes Payable and Derivative Instruments” for additional details.

Goodwill

As of March 31, 2021 and December 31, 2020, the Company’s goodwill balance was $5,903. Goodwill represents the excess of consideration paid over the fair value of underlying identifiable net assets of businesses acquired. The Company’s goodwill balance was derived from the acquisition of its former advisor in connection with the management internalization transaction that was completed in July 2020. Goodwill has an indefinite life and is not amortized, but is tested for impairment on an annual basis, or more frequently if events or changes in circumstances indicate that the asset might be impaired. The Company’s policy is to perform its annual goodwill impairment evaluation as of the first day of the fourth quarter of its fiscal year. The Company has one reporting unit.  

Recent Accounting Pronouncements

Reference Rate Reform

Accounting Standards Update (“ASU”) 2020-04, Reference Rate Reform (Topic 848) (“ASU 2020-04”) contains practical expedients for reference rate reform-related activities that impact debt, leases, derivatives and other contracts. The guidance in ASU

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2020-04 is optional and may be elected over time as reference rate reform activities occur. As of March 31, 2021, the Company had previously elected to apply the hedge accounting expedients related to probability and the assessments of effectiveness for future LIBOR-indexed cash flows to assume that the index upon which future hedged transactions will be based matches the index on the corresponding derivatives. Application of these expedients preserves the presentation of derivatives consistent with past presentation. The Company continues to evaluate the impact of the guidance and may apply other elections as applicable as additional changes in the market occur.

Note 3 – Property Portfolio

Summary of Properties Acquired During the Three Months Ended March 31, 2021

During the three months ended March 31, 2021 the Company completed four acquisitions. For each acquisition, substantially all of the fair value was concentrated in a single identifiable asset or group of similar identifiable assets and, therefore, each acquisition represents an asset acquisition. Accordingly, transaction costs for these acquisitions were capitalized.

A rollforward of the gross investment in land, building, improvements, and acquired lease intangible assets as of March 31, 2021 resulting from these acquisitions is as follows:

					Site		Tenant		Acquired Lease		Gross Investment in
	Land		Building		Improvements		Improvements		Intangible Assets		Real Estate
Balances as of December 31, 2020	$	128,857	$	851,427	$	15,183	$	49,204	$	98,234	$	1,142,905
Facility Acquired – Date Acquired:
El Paso – 1/12/21		899		7,549		71		160		1,338		10,017
Syracuse – 1/15/21		616		4,745		128		136		772		6,397
West El Paso – 1/15/21		851		7,160		144		567		856		9,578
Fort Worth – 3/9/21		1,817		13,020		143		395		2,069		17,444
Capitalized costs(1)		—		—		—		134		—		134
Total Additions:		4,183		32,474		486		1,392		5,035		43,570
Balances as of March 31, 2021	$	133,040	$	883,901	$	15,669	$	50,596	$	103,269	$	1,186,475

⁽¹⁾ Represents capital projects that were completed and placed in service during the three months ended March 31, 2021 related to the Company’s existing facilities.

Depreciation expense was $7,848 and $5,836 for the three ended March 31, 2021 and 2020, respectively.

As of March 31, 2021, the Company had aggregate capital improvement commitments and obligations to improve, expand, and maintain the Company’s existing facilities of approximately $29,500. Many of these amounts are subject to contingencies that make it difficult to predict when they will be utilized, if at all. In accordance with the terms of the Company’s leases, capital improvement obligations in the next twelve months could total up to approximately $18,900.

The following is a summary of the acquisitions completed during the three months ended March 31, 2021.

El Paso Facility

On January 12, 2021, the Company purchased a medical office building located in El Paso, Texas (the “El Paso Facility”) for a purchase price of approximately $10 million.  Upon closing, the Company assumed three existing leases at the El Paso Facility (the “El Paso Leases”). At acquisition, the El Paso Leases had a weighted-average remaining term of approximately four years, exclusive of tenant renewal options. The following table presents the details of the tangible and intangible assets acquired and liabilities assumed:

Land and site improvements	$	970
Building and tenant improvements		7,709
In-place leases		750
Above-market lease intangibles		383
Leasing costs		205
Total purchase price	$	10,017

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Syracuse Facility

On January 15, 2021, the Company purchased a medical office building located in Syracuse, New York (the “Syracuse Facility”) for a purchase price of approximately $6.2 million.  Upon closing, the Company assumed two existing leases at the Syracuse Facility (the “Syracuse Leases”). At acquisition, the Syracuse Leases had a weighted-average remaining term of approximately eight years, exclusive of tenant renewal options. The following table presents the details of the tangible and intangible assets acquired and liabilities assumed:

Land and site improvements	$	744
Building and tenant improvements		4,881
In-place leases		434
Leasing costs		338
Below-market lease intangibles		(207)
Total purchase price	$	6,190

West El Paso Facilities

On January 15, 2021, the Company purchased two medical office buildings and an ambulatory surgical center located in El Paso, Texas (the “West El Paso Facilities”) for a total purchase price of approximately $9.6 million. Upon closing, the Company entered into two new leases at the medical office buildings with 12-year terms and assumed the existing lease at the ambulatory surgery center with a remaining term of seven years. All three leases have tenant renewal options. The following table presents the details of the tangible and intangible assets acquired and liabilities assumed:

Land and site improvements	$	995
Building and tenant improvements		7,727
In-place leases		432
Leasing costs		424
Total purchase price	$	9,578

Fort Worth Facility

On March 9, 2021, the Company purchased an inpatient psychiatric hospital located in Fort Worth, Texas (the “Fort Worth Facility”) for a purchase price of approximately $17.4 million. Upon closing, the Company assumed the existing lease at the Fort Worth Facility (the “Fort Worth Lease”). At acquisition, the Fort Worth Lease had a remaining term of approximately eight years, exclusive of tenant renewal options. The following table presents the details of the tangible and intangible assets acquired and liabilities assumed:

Land and site improvements	$	1,960
Building and tenant improvements		13,415
In-place leases		1,339
Leasing costs		730
Total purchase price	$	17,444

Summary of Properties Acquired During the Year Ended December 31, 2020

During the year ended December 31, 2020 the Company completed 18 acquisitions. For each acquisition, substantially all of the fair value was concentrated in a single identifiable asset or group of similar identifiable assets and, therefore, each acquisition represents an asset acquisition. Accordingly, transaction costs for these acquisitions were capitalized.

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A rollforward of the gross investment in land, building, improvements, and acquired lease intangible assets as of December 31, 2020 resulting from these acquisitions is as follows:

					Site		Tenant		Acquired Lease		Gross Investment in
	Land		Building		Improvements		Improvements		Intangible Assets		Real Estate
Balances as of December 31, 2019	$	95,381	$	693,533	$	9,912	$	33,909	$	72,794	$	905,529
Facility Acquired – Date Acquired:
High Point – 2/13/20		1,749		20,367		440		869		1,656		25,081
Clinton – 2/27/20		664		6,551		342		1,578		2,484		11,619
West Allis – 3/4/20		974		7,687		137		98		461		9,357
Grand Rapids – 3/20/20		2,951		17,341		470		450		1,582		22,794
Dumfries – 4/27/20		2,597		10,047		289		4,815		4,292		22,040
Centerville – 7/16/20		—		4,202		160		208		501		5,071
Fairfax – 7/17/20		6,731		6,642		381		2,979		3,012		19,745
Rosedale – 7/31/20		2,856		16,204		567		1,443		2,821		23,891
Lancaster – 9/18/20		696		4,269		110		116		1,114		6,305
Winston-Salem – 9/30/20		1,524		6,407		254		307		748		9,240
Decatur and Jackson – 10/20/20		2,237		7,140		284		296		955		10,912
Sheboygan and Plymouth – 10/27/20		1,088		11,212		253		225		1,046		13,824
Spring Hill and Hudson – 11/18/20		3,473		12,520		420		435		1,370		18,218
Cape Girardeau – 11/23/20		1,150		4,601		73		264		1,262		7,350
Yuma – 12/1/20		1,041		4,715		309		274		640		6,979
Las Vegas – 12/14/20		311		6,813		—		—		—		7,124
Pensacola – 12/29/20		1,786		5,742		332		411		781		9,052
Venice – 12/30/20		1,648		4,204		247		333		543		6,975
Capitalized costs(1)		—		1,230		203		194		172		1,799
Total Additions:		33,476		157,894		5,271		15,295		25,440		237,376
Balances as of December 31, 2020	$	128,857	$	851,427	$	15,183	$	49,204	$	98,234	$	1,142,905

⁽¹⁾ Represents capital projects that were completed and placed in service during the year ended December 31, 2020  related to the Company’s existing facilities.

The following is a summary of the acquisitions completed during the year ended December 31, 2020.

High Point Facility

On February 13, 2020, the Company purchased a medical office building located in High Point, North Carolina (the “High Point Facility”) for a purchase price of approximately $25.1 million. Upon closing, the Company assumed the existing lease of the High Point Facility with Wake Forest Health Network, LLC, as tenant. At acquisition, the lease had approximately three years remaining in the current term, exclusive of a tenant renewal option. The following table presents the details of the tangible and intangible assets acquired and liabilities assumed:

Land and site improvements	$	2,189
Building and tenant improvements		21,236
In-place leases		1,207
Leasing costs		449
Total purchase price	$	25,081

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Clinton Facility

On February 27, 2020, the Company purchased a medical office building located in Clinton, Iowa (the “Clinton Facility”) for a purchase price of approximately $11.6 million. Upon closing, the Company assumed the existing lease of the Clinton Facility with MercyOne Clinton Medical Center, as tenant. At acquisition, the lease had approximately four years remaining in the initial term, exclusive of a tenant renewal option. The following table presents the details of the tangible and intangible assets acquired and liabilities assumed:

Land and site improvements	$	1,006
Building and tenant improvements		8,129
In-place leases		2,115
Leasing costs		369
Total purchase price	$	11,619

West Allis Facility

On March 4, 2020, the Company purchased a medical office building located in West Allis, Wisconsin (the “West Allis Facility”) for a purchase price of approximately $9.1 million. Upon closing, the Company assumed the existing lease of the West Allis Facility with Ascension Columbia St. Mary’s Hospital Milwaukee, as tenant. At acquisition, the lease had approximately four years remaining in the initial term, exclusive of renewal options. The following table presents the details of the tangible and intangible assets acquired and liabilities assumed:

Land and site improvements	$	1,111
Building and tenant improvements		7,785
In-place leases		263
Leasing costs		198
Below-market lease intangibles		(264)
Total purchase price	$	9,093

Grand Rapids Facilities

On March 20, 2020, the Company purchased a four-building medical office portfolio located in the greater Grand Rapids, Michigan area (the “Grand Rapids Facilities”) for a total purchase price of approximately $22.7 million. Upon closing, the Company assumed 11 existing leases at the Grand Rapids Facilities (the “Grand Rapids Leases”). At acquisition, the Grand Rapids Leases had a weighted-average remaining term of five years, exclusive of tenant renewal options. The following table presents the details of the tangible and intangible assets acquired and liabilities assumed:

Land and site improvements	$	3,417
Building and tenant improvements		17,791
In-place leases		761
Above-market lease intangibles		685
Leasing costs		136
Below-market lease intangibles		(125)
Total purchase price	$	22,665

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Dumfries Facility

On April 27, 2020, the Company purchased a medical office building located in Dumfries, Virginia (the “Dumfries Facility”) for a purchase price of approximately $19.6 million. Upon closing, the Company assumed the existing lease of the Dumfries Facility with Spectrum Healthcare Resources, Inc., as tenant. At acquisition, the lease had approximately nine and a half years left in the initial term, exclusive of tenant renewal options. The following table presents the details of the tangible and intangible assets acquired and liabilities assumed:

Land and site improvements	$	2,886
Building and tenant improvements		14,862
In-place leases		3,255
Leasing costs		1,037
Below-market lease intangibles		(2,419)
Total purchase price	$	19,621

In connection with this acquisition, the Company assumed an existing $12.1 million commercial mortgage-backed securities (“CMBS”) loan with an interest rate of 4.68% and a term of four years.

Centerville Facility

On July 16, 2020, the Company purchased a medical office building located in Centerville, Iowa (the “Centerville Facility”) and the seller’s interest, as ground lessee, in an existing ground lease, for a purchase price of approximately $5.1 million. At acquisition, the ground lease had a remaining term of approximately 49 years.  Upon closing, the Company assumed the existing lease of the Centerville Facility with Mercy Medical Center-Centerville One St. Joseph Drive, as tenant. At acquisition, the lease had approximately 10.5 years remaining in the initial term, exclusive of renewal options. The following table presents the details of the tangible and intangible assets acquired and liabilities assumed:

Land and site improvements	$	160
Building and tenant improvements		4,410
In-place leases		216
Leasing costs		285
Total purchase price	$	5,071

Fairfax Facility

On July 17, 2020, the Company purchased a medical office building located in Fairfax, Virginia (the “Fairfax Facility”) for a purchase price of approximately $17.9 million. Upon closing, the Company assumed the existing lease of the Fairfax Facility with Spectrum Healthcare Resources, Inc., as tenant. At acquisition, the lease had approximately 9.1 years remaining in the initial term, exclusive of renewal options. The following table presents the details of the tangible and intangible assets acquired and liabilities assumed:

Land and site improvements	$	7,112
Building and tenant improvements		9,621
In-place leases		2,314
Leasing costs		698
Below-market lease intangibles		(1,866)
Total purchase price	$	17,879

Rosedale Facilities

On July 31, 2020, the Company purchased certain condominium units within a medical office building and a medical office building, both located in Rosedale, Maryland (the “Rosedale Facilities”) for a total purchase price of approximately $23.1 million.  Upon closing, the Company assumed eight leases with six tenants at the Rosedale Facilities (the “Rosedale Leases”).  At acquisition, the

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Rosedale Leases had a weighted-average remaining lease term of approximately 6.6 years,  exclusive of renewal options.  The following table presents the details of the tangible and intangible assets acquired and liabilities assumed:

Land and site improvements	$	3,423
Building and tenant improvements		17,647
In-place leases		1,063
Leasing costs		892
Above-market lease intangibles		866
Below-market lease intangibles		(785)
Total purchase price	$	23,106

In connection with this acquisition, the Company entered into a loan with FVCbank in the amount of $14.8 million with an annual interest rate of 3.85% and a term of five years.

Lancaster Facility

On September 18, 2020, the Company purchased a medical office building located in Lancaster, Texas (the “Lancaster Facility”) for a purchase price of approximately $6.3 million.  Upon closing, the Company assumed the existing lease at the Lancaster Facility with Biomat USA, Inc., as tenant. At acquisition, the lease had approximately eight and a half years left in the initial term, exclusive of a tenant renewal option.  The following table presents the details of the tangible and intangible assets acquired and liabilities assumed:

Land and site improvements	$	806
Building and tenant improvements		4,385
In-place leases		244
Leasing costs		283
Above-market lease intangibles		587
Total purchase price	$	6,305

Winston-Salem Facility

On September 30, 2020, the Company purchased a medical office building located in Winston-Salem, North Carolina (the “Winston-Salem Facility”) for a total purchase price of approximately $8.5 million. Upon closing, the Company assumed five existing leases at the Winston-Salem Facility (the “Winston-Salem Leases”). At acquisition, the Winston-Salem Leases had a weighted-average remaining term of approximately four years, exclusive of a tenant renewal option. The following table presents the details of the tangible and intangible assets acquired and liabilities assumed:

Land and site improvements	$	1,778
Building and tenant improvements		6,714
In-place leases		581
Leasing costs		167
Below-market lease intangibles		(725)
Total purchase price	$	8,515

Decatur and Jackson Facilities

On October 20, 2020, the Company purchased two medical office buildings, one located in Decatur, Georgia, and one located in Jackson, Tennessee (the “Decatur and Jackson Facilities”) for a total purchase price of approximately $10.9 million. Upon closing, the Company assumed six leases with five tenants at the Decatur and Jackson Facilities (the “Decatur and Jackson Leases”). At acquisition, the Decatur and Jackson Leases had a weighted-average remaining lease term of approximately six years, exclusive of renewal options. The following table presents the details of the tangible and intangible assets acquired and liabilities assumed:

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Land and site improvements	$	2,521
Building and tenant improvements		7,436
In-place leases		556
Leasing costs		264
Above-market lease intangibles		135
Below-market lease intangibles		(27)
Total purchase price	$	10,885

Sheboygan and Plymouth Facilities

On October 27, 2020, the Company purchased two medical office buildings, one located in Sheboygan, Wisconsin, and one located in Plymouth, Wisconsin (the “Sheboygan and Plymouth Facilities”) for a total purchase price of approximately $13.8 million. Upon closing, the Company assumed three leases with two tenants at the Sheboygan and Plymouth Facilities (the “Sheboygan and Plymouth Leases”).  At acquisition, the Sheboygan and Plymouth Leases had a weighted-average remaining lease term of approximately five years, exclusive of renewal options. The following table presents the details of the tangible and intangible assets acquired and liabilities assumed:

Land and site improvements	$	1,341
Building and tenant improvements		11,437
In-place leases		756
Leasing costs		290
Total purchase price	$	13,824

Spring Hill and Hudson Facilities

On November 18, 2020, the Company purchased three medical office buildings, two located in Spring Hill, Florida, and one located in Hudson, Florida (the “Spring Hill and Hudson Facilities”) for a total purchase price of approximately $18.2 million. Upon closing, the Company assumed the three existing leases at the Spring Hill and Hudson Facilities with Florida Cancer Specialists & Research Institute LLC, as tenant.  At acquisition, each lease had approximately eight years left in the initial term, exclusive of renewal options. The following table presents the details of the tangible and intangible assets acquired and liabilities assumed:

Land and site improvements	$	3,893
Building and tenant improvements		12,955
In-place leases		831
Leasing costs		539
Total purchase price	$	18,218

Cape Girardeau Facility

On November 23, 2020, the Company purchased an ambulatory surgery center located in Cape Girardeau, Missouri (the “Cape Girardeau Facility”) for a total purchase price of approximately $7.4 million. Upon closing, the Company assumed the existing lease at the Cape Girardeau Facility with Physicians Alliance, L.C., as tenant.  At acquisition, the lease had a remaining term of approximately six years, exclusive of renewal options. The following table presents the details of the tangible and intangible assets acquired and liabilities assumed:

Land and site improvements	$	1,223
Building and tenant improvements		4,865
In-place leases		687
Leasing costs		188
Above-market lease intangibles		387
Total purchase price	$	7,350

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Yuma Facilities

On December 1, 2020, the Company purchased two medical office buildings located in Yuma, Arizona (the “Yuma Facilities”) for a total purchase price of approximately $7.0 million. Upon closing, the Company assumed the two existing leases at the Yuma Facilities with Yuma Regional Medical Center, as tenant. At acquisition, the leases had a weighted-average remaining term of approximately four years, exclusive of a renewal option. The following table presents the details of the tangible and intangible assets acquired and liabilities assumed:

Land and site improvements	$	1,350
Building and tenant improvements		4,989
In-place leases		439
Leasing costs		136
Above-market lease intangibles		65
Total purchase price	$	6,979

Las Vegas Facilities

On December 14, 2020, the Company purchased two medical office buildings located in Las Vegas, Nevada (the “Las Vegas Facilities”) for a total purchase price of approximately $7.1 million. Upon closing, the Company entered into new leases with two existing tenants at the Las Vegas Facilities (the “Las Vegas Leases”). The Las Vegas Leases have a term of 12 years, exclusive of renewal options. The following table presents the details of the tangible assets acquired:

Land and site improvements	$	311
Building and tenant improvements		6,813
Total purchase price	$	7,124

Pensacola Facilities

On December 29, 2020, the Company purchased three medical office buildings located in Pensacola, Florida (the “Pensacola Facilities”) for a total purchase price of approximately $9.1 million. Upon closing, the Company assumed the three existing leases with two tenants at the Pensacola Facilities (the “Pensacola Leases”).  At acquisition, the Pensacola Leases had a weighted-average remaining lease term of approximately nine years, exclusive of renewal options. The following table presents the details of the tangible and intangible assets acquired and liabilities assumed:

Land and site improvements	$	2,118
Building and tenant improvements		6,153
In-place leases		456
Leasing costs		325
Total purchase price	$	9,052

Venice Facilities

On December 30, 2020, the Company purchased two medical office buildings located in Venice, Florida (the “Venice Facilities”) for a total purchase price of approximately $7.0 million. Upon closing, the Company assumed the two existing leases at the Venice Facilities with Gulf Coast HMA Physician Management, LLC, as tenant.  At acquisition, each lease had approximately five and a half years left in initial term, with no renewal options. The following table presents the details of the tangible and intangible assets acquired and liabilities assumed:

Land and site improvements	$	1,895
Building and tenant improvements		4,537
In-place leases		387
Leasing costs		156
Total purchase price	$	6,975

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Lease Intangible Assets and Liabilities

The following is a summary of the carrying amount of lease intangible assets and liabilities as of the dates presented:

	As of March 31, 2021
			Accumulated
	Cost		Amortization		Net
Assets
In-place leases	$	58,284	$	(16,682)	$	41,602
Above market leases		15,357		(4,514)		10,843
Leasing costs		29,628		(7,178)		22,450
	$	103,269	$	(28,374)	$	74,895
Liability
Below market leases	$	10,279	$	(2,281)	$	7,998

	As of December 31, 2020
			Accumulated
	Cost		Amortization		Net
Assets
In-place leases	$	55,561	$	(14,592)	$	40,969
Above market leases		14,972		(4,023)		10,949
Leasing costs		27,701		(6,284)		21,417
	$	98,234	$	(24,899)	$	73,335
Liability
Below market leases	$	10,072	$	(1,850)	$	8,222

The following is a summary of the acquired lease intangible amortization:

	Three Months Ended
	March 31,
	2021		2020
Amortization expense related to in-place leases	$	2,090	$	1,333
Amortization expense related to leasing costs	$	894	$	588
Decrease in rental revenue related to above market leases	$	491	$	375
Increase in rental revenue related to below market leases	$	431	$	128

As of March 31, 2021, scheduled future aggregate net amortization of the acquired lease intangible assets and liabilities for each year ended December 31 is listed below:

	Net Decrease		Net Increase
	in Revenue		in Expenses
2021 (nine months remaining)	$	(205)	$	8,633
2022		(290)		11,294
2023		(324)		10,332
2024		(104)		8,939
2025		(438)		5,919
Thereafter		(1,484)		18,935
Total	$	(2,845)	$	64,052

As of March 31, 2021, the weighted average amortization periods for asset lease intangibles and liability lease intangibles were 5.2 years and 4.6 years, respectively.

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Note 4 – Credit Facility, Notes Payable and Derivative Instruments

Credit Facility

For the three months ended March 31, 2021 and 2020, the Company, the Operating Partnership, as borrower, and certain of its subsidiaries (such subsidiaries, the “Subsidiary Guarantors”) were parties to a $600 million syndicated credit facility with BMO Harris Bank N.A. (“BMO”), as administrative agent (the “Credit Facility”). The Credit Facility consisted of a $350 million term loan component (the “Term Loan”) and a $250 million revolver component (the “Revolver”). Amounts outstanding under the Credit Facility bear interest at a floating rate that is based on LIBOR plus a specified margin based on the Company’s leverage.

On May 3, 2021, the Company amended and restated the Credit Facility to among other things, (i) increase the overall capacity of the facility from $600 million to $750 million, consisting of a $400 million revolver component and a $350 million term loan component, (ii) extend the term of the revolver component to April 2025, with two six-month extension options, and extend the maturity of the term loan component to April 2026, and (iii) implement a new pricing matrix. See Note 10 – “Subsequent Events” for a description of the material terms of the amended and restated Credit Facility (the “Amended and Restated Credit Facility”).

The Company has entered into interest rate swaps to hedge its interest rate risk on the Term Loan. For additional information related to the interest rate swaps, see the “Derivative Instruments - Interest Rate Swaps” section herein. The Company also entered into additional interest rate swaps in connection with the Amended and Restated Credit Facility.  See Note 10 – “Subsequent Events” for a description of these additional interest rate swaps.  

During the three months ended March 31, 2021, the Company borrowed $50,100 under the Credit Facility and repaid $151,800, for a net amount repaid of $101,700. During the three months ended March 31, 2020, the Company borrowed $81,700 under the Credit Facility and repaid $3,600 for a net amount borrowed of $78,100. Interest expense incurred on the Credit Facility was $3,852 and $3,585, for the three months ended March 31, 2021 and 2020, respectively.

As of March 31, 2021 and December 31, 2020, the Company had the following outstanding borrowings under the Credit Facility:

	March 31, 2021		December 31, 2020
Revolver	$	73,500	$	175,200
Term Loan		350,000		350,000
Less: Unamortized debt issuance costs		(3,284)		(3,559)
Credit Facility, net	$	420,216	$	521,641

Costs incurred related to the Credit Facility, net of accumulated amortization, are netted against the Company’s “Credit Facility, net of unamortized debt issuance costs” balance in the accompanying Condensed Consolidated Balance Sheets. The Company paid $74 and $44 related to modifications to the Credit Facility as well as fees related to adding properties to the borrowing base during the three months ended March 31, 2021 and 2020, respectively. Amortization expense incurred was $349 and $269 for the three months ended March 31, 2021 and 2020, respectively, and is included in the “Interest Expense” line item in the accompanying Condensed Consolidated Statements of Operations.

Reference Rate Reform

On March 5, 2021, the Financial Conduct Authority (“FCA”) announced that USD LIBOR will no longer be published after June 30, 2023. This announcement has several implications, including setting the spread that may be used to automatically convert contracts from LIBOR to the Secured Overnight Financing Rate ("SOFR").  Additionally, banking regulators are encouraging banks to discontinue new LIBOR debt issuances by December 31, 2021.

The Company anticipates that LIBOR will continue to be available at least until June 30, 2023.  Any changes adopted by the FCA or other governing bodies in the method used for determining LIBOR may result in a sudden or prolonged increase or decrease in reported LIBOR. If that were to occur, our interest payments could change. In addition, uncertainty about the extent and manner of future changes may result in interest rates and/or payments that are higher or lower than if LIBOR were to remain available in its current form.

The Company has interest rate swaps that are indexed to LIBOR and is monitoring and evaluating the related risks.  These risks arise in connection with transitioning contracts to an alternative rate, including any resulting value transfer that may occur, and are likely

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to vary by contract. The value of loans, securities, or derivative instruments tied to LIBOR, as well as interest rates on our current or future indebtedness, may also be impacted if LIBOR is limited or discontinued.  For some instruments the method of transitioning to an alternative reference rate may be challenging, especially if the Company cannot agree with the respective counterparty about how to make the transition.

While the Company expects LIBOR to be available in substantially its current form until at least the end of June 30, 2023, it is possible that LIBOR will become unavailable prior to that point. This could result, for example, if sufficient banks decline to make submissions to the LIBOR administrator. In that case, the risks associated with the transition to an alternative reference rate will be accelerated and magnified.

Alternative rates and other market changes related to the replacement of LIBOR, including the introduction of financial products and changes in market practices, may lead to risk modeling and valuation challenges, such as adjusting interest rate accrual calculations and building a term structure for an alternative rate.

The introduction of an alternative rate also may create additional basis risk and increased volatility as alternative rates are phased in and utilized in parallel with LIBOR.

Adjustments to systems and mathematical models to properly process and account for alternative rates will be required, which may strain the model risk management and information technology functions and result in substantial incremental costs for the Company.

Notes Payable, Net of Debt Issuance Costs

The Company’s notes payable, net, includes four loans: (1) the Rosedale Loan, (2) the Dumfries Loan, (3) the Cantor Loan, and (4) the West Mifflin Loan, described in detail below. The following table sets forth the aggregate balances of these loans as of March 31, 2021 and December 31, 2020.

	March 31, 2021		December 31, 2020
Notes payable, gross	$	66,349	$	66,349
Unamortized debt issuance costs		(772)		(835)
Cumulative principal repayments		(767)		(577)
Notes payable, net	$	64,810	$	64,937

Amortization expense incurred related to the debt issuance costs was $63 and $33 for the three months ended March 31, 2021 and 2020, respectively, and is included in the “Interest Expense” line item in the accompanying Condensed Consolidated Statements of Operations.

Rosedale Loan

On July 31, 2020, in connection with its acquisition of the Rosedale Facilities, the Company, through certain of its wholly owned subsidiaries, as borrowers, entered into a loan with FVCbank with a principal balance of $14,800 (the “Rosedale Loan”). The Rosedale Loan has an annual interest rate of 3.85% and matures on July 31, 2025 with principal and interest payable monthly based on a 25-year amortization schedule. The Company, at its option, may prepay the loan, subject to a prepayment fee.

The Company made principal payments of $91 during the three months ended March 31, 2021. The loan balance as of March 31, 2021 was $14,600.  Interest expense incurred on this loan was $141 for the three months ended March 31, 2021.

As of March 31, 2021, scheduled principal payments due for each year ended December 31 were as follows:

2021 (nine months remaining)	$	270
2022		376
2023		391
2024		405
2025		13,158
Total	$	14,600

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Dumfries Loan

On April 27, 2020, in connection with its acquisition of the Dumfries Facility, the Company, through a wholly-owned subsidiary, assumed a CMBS loan with a principal amount of $12,074 (the “Dumfries Loan”). The Dumfries Loan has an annual interest rate of 4.68% and matures on June 1, 2024 with principal and interest payable monthly based on a ten-year amortization schedule. The Company, at its option, may prepay the loan, subject to a prepayment premium.

The Company made principal payments of $69 during the three months ended March 31, 2021. The loan balance as of March 31, 2021 was $11,830.  Interest expense incurred on this loan was $138 for the three months ended March 31, 2021.

As of March 31, 2021, scheduled principal payments due for each year ended December 31 were as follows:

2021 (nine months remaining)	$	206
2022		288
2023		302
2024		11,034
Total	$	11,830

Cantor Loan

On March 31, 2016, through certain of its wholly owned subsidiaries (the “GMR Loan Subsidiaries”), the Company entered into a $32,097 CMBS loan (the “Cantor Loan”). The Cantor Loan has a maturity date of April 6, 2026 and an annual interest rate of 5.22%. The Cantor Loan required interest-only payments through March 31, 2021 and following that date, requires principal and interest based on a 30-year amortization schedule. Prepayment can only occur within four months prior to the maturity date, subject to earlier defeasance. The Cantor Loan is secured by the assets of the GMR Loan Subsidiaries.

The loan balance as of March 31, 2021 and December 31, 2020 was $32,097. Interest expense incurred on this loan was $419   and $423 for the three months ended March 31, 2021 and 2020, respectively.

As of March 31, 2021, scheduled principal payments due for each year ended December 31 were as follows:

2021 (nine months remaining)	$	282
2022		447
2023		471
2024		492
2025		523
Thereafter		29,882
Total	$	32,097

West Mifflin Loan

On September 25, 2015, the Company, through a wholly-owned subsidiary, as borrower, entered into a $7,378 term loan with Capital One. On September 25, 2020, the Company and Capital One amended the terms of the loan to extend the maturity date to September 25, 2021 and increase the interest rate to 4.25% per annum. The West Mifflin facility serves as collateral for the loan.

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The Company made principal payments of $30 and $35 during the three months ended March 31, 2021 and 2020, respectively. The loan balance as of March 31, 2021 and December 31, 2020 was $7,055 and $7,085, respectively. Interest expense incurred on this loan was $75 and $68 for the three months ended March 31, 2021 and 2020, respectively.

Derivative Instruments - Interest Rate Swaps

As of March 31, 2021, the Company had the following six interest rate swaps that are used to manage its interest rate risk and fix the LIBOR component of certain of its floating rate debt on a weighted average basis at 1.91% through August 2023:

Counterparty	Notional Amount		Fixed LIBOR Rate	Maturity
Wells Fargo Bank, N.A.	$	50 million	0.16%	August 2023
BMO		100 million	2.88%	August 2023
BMO		90 million	1.21%	August 2024
Truist Bank		40 million	1.21%	August 2024
Truist Bank		40 million	2.93%	August 2024
Citizens Bank, National Association		30 million	2.93%	August 2024
Total/Weighted Average	$	350 million	1.91%

In accordance with the provisions of ASC Topic 815, the Company records the swaps either as an asset or a liability measured at its fair value at each reporting period. When hedge accounting is applied, the change in the fair value of derivatives designated and that qualify as cash flow hedges is (i) recorded in accumulated other comprehensive loss in the equity section of the Company’s Condensed Consolidated Balance Sheets and (ii) subsequently reclassified into earnings as interest expense for the period that the hedged forecasted transactions affect earnings. If specific hedge accounting criteria are not met, changes in the Company’s derivative instruments’ fair value are recognized currently as an adjustment to net income.

The Company’s interest rate swaps are not traded on an exchange. The Company’s interest rate swaps are recorded at fair value based on a variety of observable inputs including contractual terms, interest rate curves, yield curves, measure of volatility, and correlations of such inputs. The Company measures its derivatives at fair value on a recurring basis based on the expected size of future cash flows on a discounted basis and incorporating a measure of non-performance risk. The fair values are based on Level 2 inputs within the framework of ASC Topic 820, “Fair Value Measurement.” The Company considers its own credit risk, as well as the credit risk of its counterparties, when evaluating the fair value of its derivative instruments.

The fair value of the Company’s interest rate swaps was a net liability of $14,467 and $18,086 as of March 31, 2021 and December 31, 2020, respectively. The gross balances are included in the “Derivative Asset” and “Derivative Liability” line items on the Company’s Condensed Consolidated Balance Sheets as of March 31, 2021 and December 31, 2020, respectively.

The table below details the components of the loss presented on the accompanying Condensed Consolidated Statements of Comprehensive Income (Loss) recognized on the Company’s interest rate swaps designated as cash flow hedges for the three months ended March 31, 2021 and 2020:

	Three Months Ended March 31,
	2021		2020
Amount of (gain) loss recognized in other comprehensive income (loss)	$	(2,082)	$	14,466
Amount of loss reclassified from accumulated other comprehensive loss into interest expense		(1,549)		(508)
Total change in accumulated other comprehensive loss	$	(3,631)	$	13,958

During the next twelve months, the Company estimates that an additional $6,173 will be reclassified as an increase to interest expense. Additionally, during the three months ended March 31, 2021, the Company recorded total interest expense in its Condensed Consolidated Statements of Operations of $5,037.

In connection with the Amended and Restated Credit Facility, the Company entered into additional interest rate swaps. See Note – 10 “Subsequent Events” for a description of those additional interest rate swaps.  

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Weighted-Average Interest Rate and Term

The weighted average interest rate and term of the Company’s debt was 3.66% and 2.58 years at March 31, 2021, compared to 3.17% and 2.79 years as of December 31, 2020.

Note 5 – Equity

Preferred Stock

The Company’s charter authorizes the issuance of 10,000 shares of preferred stock, par value $0.001 per share. As of March 31, 2021 and December 31, 2020, there were 3,105 shares of Series A Cumulative Redeemable Preferred Stock (“Series A Preferred Stock”), issued and outstanding. The Series A Preferred Stock has a liquidation preference of $25 per share.

Preferred stock dividend activity for the three months ended March 31, 2021 is summarized in the following table:

		Applicable		Quarterly			Dividends
Date Announced	Record Date	Quarter	Payment Date	Dividend			per Share
December 16, 2020	January 15, 2021	Q4 2020	February 1, 2021	$	1,455		$	0.46875
March 3, 2021	April 15, 2021	Q1 2021	April 30, 2021	$	1,455	(1)	$	0.46875

⁽¹⁾ Two months of this amount, equal to $970, was accrued at March 31, 2021.

The holders of the Series A Preferred Stock are entitled to receive dividend payments only when, as and if declared by the Company’s board of directors (the “Board”) (or a duly authorized committee of the Board). Dividends will accrue or be payable in cash from the original issue date, on a cumulative basis, quarterly in arrears on each dividend payment date at a fixed rate per annum equal to 7.50% of the liquidation preference of $25.00 per share (equivalent to $1.875 per share on an annual basis). Dividends on the Series A Preferred Stock will be cumulative and will accrue whether or not (i) funds are legally available for the payment of those dividends, (ii) the Company has earnings or (iii) those dividends are declared by the Board. The quarterly dividend payment dates on the Series A Preferred Stock are January 31, April 30, July 31 and October 31 of each year. During each of the three-month periods ended March 31, 2021 and 2020, the Company paid preferred dividends of $1,455.

Common Stock

The Company has 500,000 authorized shares of common stock, $0.001 par value. As of March 31, 2021 and December 31, 2020, there were 60,794 and 49,461 outstanding shares of common stock, respectively.

Common stock dividend activity for the three months ended March 31, 2021 is summarized in the following table:

		Applicable		Dividend		Dividends
Date Announced	Record Date	Quarter	Payment Date	Amount(1)		per Share
December 16, 2020	December 28, 2020	Q4 2020	January 11, 2021	$	10,573	$	0.20
March 3, 2021	March 24, 2021	Q1 2021	April 8, 2021	$	13,260	$	0.205

⁽¹⁾ Includes distributions on outstanding LTIP Units and OP Units.

During the three months ended March 31, 2021 and 2020, the Company paid total dividends on its common stock, LTIP Units and OP Units in the aggregate amount of $11,315 and $10,031, respectively.

As of March 31, 2021 and December 31, 2020, the Company had accrued dividend balances of $252 and $927 for dividends payable on the aggregate annual and long-term LTIP Units that are subject to retroactive receipt of dividends on the amount of LTIP Units ultimately earned. During the three months ended March 31, 2021, $67 of dividends were accrued and $742 of dividends were paid related to these units. During the three months ended March 31, 2020, $279 of dividends were accrued and $490 of dividends were paid related to these units.

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The amount of the dividends paid to the Company’s stockholders is determined by the Board and is dependent on a number of factors, including funds available for payment of dividends, the Company’s financial condition and capital expenditure requirements except that, in accordance with the Company’s organizational documents and Maryland law, the Company may not make dividend distributions that would: (i) cause it to be unable to pay its debts as they become due in the usual course of business; (ii) cause its total assets to be less than the sum of its total liabilities plus senior liquidation preferences; or (iii) jeopardize its ability to maintain its qualification as a REIT.

Capital Raising Activity

On March 18, 2021, the Company closed an underwritten public offering of its common stock, including the related option to purchase additional shares granted to the underwriters. These transactions resulted in the issuance of 8,625 shares of the Company’s common stock at a public offering price of $13.30 per share, resulting in net proceeds to the Company of $109,550.  

During the three months ended March 31, 2021, the Company generated net proceeds of $34,880 through at-the-market ("ATM") equity issuances of 2,709 shares of the Company’s common stock at an average offering price of $13.07 per share.

OP Units

During the three months ended March 31, 2021, there were no OP Unit redemptions. During year ended December 31, 2020, four OP Unit holders redeemed an aggregate of 1,379 OP Units for shares of the Company’s common stock with an aggregate redemption value of $17,882.

As of March 31, 2021 and December 31, 2020, there were 1,764 OP Units issued and outstanding with an aggregate value of $9,999. The OP Unit value at issuance and redemption is based on the Company’s closing share price on the date of the respective transaction and is included as a component of noncontrolling interest equity in the Company’s Condensed Consolidated Balance Sheets as of March 31, 2021 and December 31, 2020. The Company has sufficient shares of common stock authorized pursuant to its charter to cover the redemption of outstanding OP Units.

Note 6 – Related Party Transactions

Management Agreement

On July 9, 2020, the Company completed the management internalization transaction. Prior to the completion of this transaction, the Company was subject to a management agreement dated July 1, 2016, by and between the Company and its former advisor.

Management Fees and Accrued Management Fees

For the three months ended March 31, 2020, management fees of $2,002 were incurred and expensed by the Company. No incentive management fee was incurred by the Company during the three months ended March 31, 2020.

Related Party Balances

The due from related parties balance as of March 31, 2021 and December 30, 2020 was $229 and $103, respectively. These balances primarily consist of taxes paid on behalf of LTIP Unit holders that are reimbursable to the Company. The Company had no amounts due to related parties as of March 31, 2021 and December 31, 2020.

Pro Forma Financial Information

On July 9, 2020, the Company acquired all of the outstanding shares of capital stock of the parent company of its former advisor. The accompanying Condensed Consolidated Statements of Operations for the three months ended March 31, 2021 include the operations of the business acquired for the full three-month period. The table below presents the unaudited revenue and net income attributable to common stockholders on a pro forma basis for the three months ended March 31, 2020, as if the transaction occurred on January 1, 2020. The pro forma results are not necessarily indicative of the results that would have occurred if the business combination

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had occurred on the first day of the period presented, nor does the pro forma information purport to represent the results of operations for future periods.

	Three Months Ended
	March 31, 2020
	(unaudited, in thousands)
Pro forma total revenue	$	21,649
Pro forma net income attributable to common stockholders	$	1,942

Note 7 – Stock-Based Compensation

2016 Equity Incentive Plan

The 2016 Equity Incentive Plan, as amended (the “Plan”), is intended to assist the Company and its affiliates in recruiting and retaining employees of the Company, members of the Board, executive officers of the Company, and individuals who provide services to the Company and its affiliates.

The Plan is intended to permit the grant of both qualifying and non-qualified options and the grant of stock appreciation rights, restricted stock, unrestricted stock, awards of restricted stock units, performance awards and other equity-based awards (including LTIP Units). Based on the grants outstanding as of March 31, 2021, there were 34 shares of common stock that remain available to be granted under the Plan. Units subject to awards under the Plan that are forfeited, cancelled, lapsed, settled in cash or otherwise expired (excluding shares withheld to satisfy exercise prices or tax withholding obligations) are available for grant.

Time-Based Grants

During the three months ended March 31, 2021, pursuant to the recommendation of the Compensation Committee of the Board (the “Compensation Committee”), the Board approved the following LTIP Unit activity:

		Number of
Date	Description	Units Issued	Vesting Dates
March 2, 2021	Final awards under the 2018 Long-Term Incentive Plan	220	50% on March 2, 2021; and
			50% on March 2, 2022
March 2, 2021	Final awards under the 2020 Annual Incentive Plan	267	50% on March 2, 2021; and
			50% on March 2, 2022

A detail of the Company’s outstanding time-based LTIP Units as of March 31, 2021 is as follows:

Vested units	1,288
Unvested units	838
LTIP Units outstanding as of March 31, 2021	2,126

Performance Based Awards

The Board has approved annual performance-based LTIP awards (“Annual Awards”) and long-term performance-based LTIP awards (“Long-Term Awards”) to the executive officers and other employees of the Company.  As described below, the Annual Awards have one-year performance periods and the Long-Term Awards have three-year performance periods. In addition to meeting specified performance metrics, vesting in both the Annual Awards and the Long-Term Awards is subject to service requirements.

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A detail of the Company’s Long-Term Awards under the 2019 and 2020 programs, and the Annual Awards and Long-Term Awards under the 2021 program as of March 31, 2021 is as follows:

2019 Long-Term Awards	82
2020 Long-Term Awards	70
2021 Annual Awards (1)	92
2021 Long-Term Awards (2)	76
Total target performance awards as of March 31, 2021	320

(1) Approved by the Board on March 2, 2021. The number of target LTIP Units was based on the average closing price of the Company’s common stock reported on the New York Stock Exchange (“NYSE”) over the 15 trading days preceding the grant date.  

(2) Approved by the Board on March 2, 2021. The number of target LTIP Units was based on the fair value of the Long-Term Awards as determined by an independent valuation consultant.

Annual Awards. The Annual Awards are subject to the terms and conditions of LTIP Annual Award Agreements (“LTIP Annual Award Agreements”) between the Company and each grantee.

The Compensation Committee and Board established performance goals for the year ending December 31, 2021, as set forth in the 2021 LTIP Annual Award Agreements (the “Performance Goals”) that will be used to determine the number of LTIP Units earned by each grantee. As of March 31, 2021, management estimated that the Performance Goals would be met at a 100% level and, accordingly, estimated that 100% of the 2021 target Annual Awards were expected to be earned at the end of the performance period. Cumulative stock-based compensation expense during the three months ended March 31, 2021 reflects management’s estimate that 100% of these awards will be earned. As soon as reasonably practicable following the first anniversary of the Annual Awards grant date, the Compensation Committee and Board will determine the extent to which the Company has achieved each of the Performance Goals (expressed as a percentage) and, based on such determination, will calculate the number of LTIP Units that each grantee is entitled to receive. Each grantee may earn up to 150% of the number of his/her target LTIP Units. Any 2021 Annual Award LTIP Units that are not earned will be forfeited and cancelled.

Vesting. LTIP Units that are earned as of the end of the applicable performance period will be subject to vesting, subject to continued employment through each vesting date, in two installments as follows: 50% of the earned LTIP Units will become vested on the date in 2022 that the Board approves the number of LTIP Units to be awarded pursuant to the performance components set forth in the 2021 LTIP Annual Award Agreements and 50% of the earned LTIP Units become vested on the one year anniversary of the initial vesting date. Vesting may be accelerated under certain circumstances such as a “change-in-control” transaction or a “qualified termination” event.

Distributions. Distributions equal to the dividends declared and paid by the Company will accrue during the applicable performance period on the maximum number of LTIP Units that the grantee could earn and will be paid with respect to all of the earned LTIP Units at the conclusion of the applicable performance period, in cash or by the issuance of additional LTIP Units at the discretion of the Compensation Committee.

Long-Term Awards. The Long-Term Awards are subject to the terms and conditions of their related LTIP Long-Term Award Agreements (collectively the “LTIP Long-Term Award Agreements”) between the Company and each grantee. The number of LTIP Units that each grantee is entitled to earn under the LTIP Long-Term Award Agreements will be determined following the conclusion of a three-year performance period based on the Company’s total stockholder return (“TSR”), which is determined based on a combination of appreciation in stock price and dividends paid during the performance period. Each grantee may earn up to 200% of the number of target LTIP Units covered by the grantee’s Long-Term Award. Any target LTIP Units that are not earned will be forfeited and cancelled. The number of LTIP Units earned under the Long-Term Awards will be determined as soon as reasonably practicable following the end of the applicable three-year performance period based on the Company’s TSR on an absolute basis (as to 75% of the Long-Term Award) and relative to the SNL Healthcare REIT Index (as to 25% of the Long-Term Award).

Vesting. LTIP Units that are earned as of the end of the applicable three-year performance period will be subject to forfeiture restrictions that will lapse (“vesting”), subject to continued employment through each vesting date as follows; 50% of the earned LTIP Units will vest upon the third anniversary of the respective grant dates and the remaining 50% will vest on the fourth anniversary of the respective grant dates. Vesting may be accelerated under certain circumstances such as a “change-in-control” transaction or a “qualified termination” event.

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Distributions. Pursuant to the LTIP Long-Term Award Agreements, distributions equal to the dividends declared and paid by the Company will accrue during the applicable performance period on the maximum number of LTIP Units that the grantee could earn and will be paid with respect to all of the earned LTIP Units at the conclusion of the applicable performance period, in cash or by the issuance of additional LTIP Units at the discretion of the Compensation Committee.

Stock-Based Compensation Expense

The Company’s prospective compensation expense for all unvested LTIP Units, Annual Awards, and Long-Term Awards is recognized using the adoption date fair value of the awards, with no remeasurement required. Compensation expense for future LTIP Unit grants, Annual Awards, and Long-Term Awards is based on the grant date fair value of the units/awards, with no subsequent remeasurement required.

As the Long-Term Awards involve market-based performance conditions, the Company utilizes a Monte Carlo simulation to provide a grant date fair value for expense recognition. The Monte Carlo simulation is a generally accepted statistical technique used, in this instance, to simulate a range of possible future stock prices for the Company and the members of the SNL Healthcare REIT Index (the “Index”) over the Performance Periods. The purpose of this modeling is to use a probabilistic approach for estimating the fair value of the performance share award.

The assumptions used in the Monte Carlo simulation include beginning average stock price, valuation date stock price, expected volatilities, correlation coefficients, risk-free rate of interest, and expected dividend yield. The beginning average stock price is the beginning average stock price for the Company and each member of the Index for the five trading days leading up to the grant date of the  Long-Term Award. The valuation date stock price is the closing stock price of the Company and each of the peer companies in the Index on the grant dates of the Long-Term Awards. The expected volatilities are modeled using the historical volatilities for the Company and the members of the Index. The correlation coefficients are calculated using the same data as the historical volatilities. The risk-free rate of interest is taken from the U.S. Treasury website and relates to the expected life of the remaining performance period on valuation or revaluation. Lastly, the dividend yield assumption is 0.0%, which is mathematically equivalent to reinvesting dividends in the issuing entity, which is part of the Company’s award agreement assumptions.

Below are details regarding certain of the assumptions for the Long-Term Awards using Monte Carlo simulations:

	2021 Long-Term			2020 Long-Term			2019 Long-Term
	Awards			Awards			Awards
Fair value	$	14.86		$	13.47		$	10.07
Target awards		76			70			82
Volatility		42.37	%		28.75	%		31.7	%
Risk-free rate		0.26	%		0.72	%		2.5	%
Dividend assumption		reinvested			reinvested			reinvested
Expected term in years		3			3			3

The Company incurred stock compensation expense of $1,715 and $922 for the three months ended March 31, 2021 and 2020, respectively, related to the grants awarded under the Plan. Compensation expense is included within “General and Administrative” expense in the Company’s Condensed Consolidated Statements of Operations.

As of March 31, 2021, total unamortized compensation expense related to these awards of approximately $8.5 million is expected to be recognized over a weighted average remaining period of 2.3 years.

Note 8 – Leases

The Company operates as both a lessor and a lessee. As a lessor, the Company is required under ASC Topic 842 to account for leases using an approach that is substantially similar to ASC Topic 840’s guidance for operating leases and other leases such as sales-type leases and direct financing leases. In addition, ASC Topic 842 requires lessors to capitalize and amortize only incremental direct leasing costs. As a lessee, the Company is required under the new standard to apply a dual approach, classifying leases, such as ground leases, as either finance or operating leases based on the principle of whether or not the lease is effectively a financed purchase. This classification determines whether lease expense is recognized based on an effective interest method or on a straight-line basis over the

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term of the lease. ASC Topic 842 also requires lessees to record a right of use asset and a lease liability for all leases with an initial term of greater than a year regardless of their classification. The Company has also elected the practical expedient not to recognize right of use assets and lease liabilities for leases with a term of a year or less.

Information as Lessor Under ASC Topic 842

To generate positive cash flow, as a lessor, the Company leases its facilities to tenants in exchange for fixed monthly payments that cover rent, property taxes, insurance and certain cost recoveries, primarily common area maintenance (“CAM”). The Company’s leases were determined to be operating leases and have a portfolio-average-lease-years remaining of approximately 10 years. Payments from the Company’s tenants for CAM are considered nonlease components that are separated from lease components and are generally accounted for in accordance with the revenue recognition standard. However, the Company qualified for and elected the practical expedient related to combining the components because the lease component is classified as an operating lease and the timing and pattern of transfer of CAM income, which is not the predominant component, is the same as the lease component, for all asset classes. As such, consideration for CAM is accounted for as part of the overall consideration in the lease. Payments from customers for property taxes and insurance are considered non-components of the lease and therefore no consideration is allocated to them because they do not transfer a good or service to the customer. Fixed contractual payments from the Company’s leases are recognized on a straight-line basis over the terms of the respective leases. This means that, with respect to a particular lease, actual amounts billed in accordance with the lease during any given period may be higher or lower than the amount of rental revenue recognized for the period. Straight-line rental revenue is commenced when the tenant assumes control of the leased premises. Accrued straight-line rents receivable represents the amount by which straight-line rental revenue exceeds rents currently billed in accordance with lease agreements.

Some of the Company’s leases are subject to annual changes in the Consumer Price Index (“CPI”). Although increases in CPI are not estimated as part of the Company’s measurement of straight-line rental revenue, for leases with base rent increases based on CPI, the amount of rent revenue recognized is adjusted in the period the changes in CPI are measured and effective. Additionally, some of the Company’s leases have extension options.

Initial direct costs, primarily commissions, related to the leasing of our facilities are capitalized when material as incurred. Capitalized leasing costs are amortized on a straight-line basis over the remaining useful life of the respective leases. All other costs to negotiate or arrange a lease are expensed as incurred.

Lease-related receivables, which include accounts receivable and accrued straight-line rents receivable, are reduced for credit losses, if applicable. The Company regularly evaluates the collectability of its lease-related receivables. The Company’s evaluation of collectability primarily consists of reviewing past due account balances and considering such factors as the credit quality of our tenant, historical trends of the tenant and changes in tenant payment terms. If the Company’s assumptions regarding the collectability of lease-related receivables prove incorrect, the Company could experience credit losses in excess of what was recognized in rental and other revenues.

The Company recognized $27,325 and $21,533 of rental revenue related to operating lease payments for the three months ended March 31, 2021 and 2020, respectively. Of these amounts, $1,374 and $1,484 relate to variable rental revenue. The aggregate annual cash to be received by the Company on the noncancelable operating leases related to its portfolio as of March 31, 2021 is as follows for the subsequent years ended December 31:

2021 (nine months remaining)	$	70,193
2022		93,549
2023		91,097
2024		83,921
2025		72,268
Thereafter		388,529
Total	$	799,557

Information as Lessee Under ASC Topic 842

The Company has six buildings located on land that is subject to operating ground leases with a weighted average remaining term of approximately 41 years. Rental payments on these leases are adjusted periodically based on either the CPI or on a pre-determined schedule. The monthly payments on a pre-determined schedule are recognized on a straight-line basis over the terms of the respective

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leases. Changes in the CPI are not estimated as part of our measurement of straight-line rental expense. The Company used a weighted average discount rate of approximately 7.5%, which was derived, using a portfolio approach, from our assessment of the credit quality of the Company and adjusted to reflect secured borrowing, estimated yield curves and long-term spread adjustments over appropriate tenors. Some of the Company’s ground leases contain extension options and, where we determined it was reasonably certain that an extension would occur, they were included in our calculation of the right of use asset and liability. The Company recognized approximately $36 and $42 of ground lease expense, of which $30 and $16 was paid in cash, during the three months ended March 31, 2021 and 2020, respectively.

The following table sets forth the undiscounted cash flows of our scheduled obligations for future lease payments on operating ground leases at March 31, 2021, and a reconciliation of those cash flows to the operating lease liability at March 31, 2021:

2021 (nine months remaining)	$	290
2022		409
2023		174
2024		129
2025		129
Thereafter		4,498
Total		5,629
Discount		(2,733)
Lease liability	$	2,896

Tenant Concentration

During the three months ended March 31, 2021, the Company’s rental revenues were derived from 117 tenants leasing 90 facilities. During this period there were no tenants with rental revenue that exceeded 10% of the Company’s rental revenue.

Note 9 – Commitments and Contingencies

Litigation

The Company is not presently subject to any material litigation nor, to its knowledge, is any material litigation threatened against the Company, which if determined unfavorably to the Company, would have a material adverse effect on the Company’s financial position, results of operations, or cash flows.

Environmental Matters

The Company follows a policy of monitoring its properties for the presence of hazardous or toxic substances. While there can be no assurance that a material environmental liability does not exist at its properties, the Company is not currently aware of any environmental liability with respect to its properties that would have a material effect on its financial position, results of operations, or cash flows. Additionally, the Company is not aware of any material environmental liability or any unasserted claim or assessment with respect to an environmental liability that management believes would require additional disclosure or the recording of a loss contingency.

Note 10 – Subsequent Events

On May 3, 2021, the Company entered into the Amended and Restated Credit Facility to, among other things, (i) increase the overall capacity of the facility from $600 million to $750 million, consisting of a $400 million revolver component and a $350 million term loan component, (ii) convert the facility from a secured facility to an unsecured facility, (iii) extend the maturity of the revolver component to May 2025, with two six-month extension options, and extend the maturity of the term loan component to May 2026, and (iv) implement a new pricing matrix. The Amended and Restated Credit Facility also includes a $500 million accordion feature.

The Amended and Restated Credit Facility has a number of financial covenants, including, among other things, the following as of the end of each fiscal quarter, (i) a maximum consolidated unsecured leverage ratio of less than 60%, (ii) a maximum consolidated secured leverage ratio of less than 30%, (iii) a maximum consolidated secured recourse leverage ratio of less than 10%, (iv) a minimum fixed charge coverage ratio of 1.50:1.00, (v) a minimum unsecured interest coverage ratio of 1.50:1.00, (vi) a maximum consolidated leverage ratio of less than 60%, and (vii) a minimum net worth of $345 million plus 75% of all net proceeds raised through equity

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offerings subsequent to December 31, 2020. As of May 3, 2021, management believed it was in compliance with all of the financial and non-financial covenants contained in the Amended and Restated Credit Facility.

In addition, on May 4, 2021, the Company entered into five forward starting interest rate swaps that will fix the LIBOR component on the term loan component of the Amended and Restated Credit Facility through May 2026. Currently, the Company’s interest rate swaps fix the LIBOR component of the term loan at a rate of 1.91% through August 2023. Subsequently, from August 2023 to August 2024 the LIBOR component of the term loan rate will be fixed at 1.61%.  Finally, from August 2024 to May 2026 the LIBOR component of the term loan rate will be fixed at 1.45%.

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Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations

The following discussion should be read in conjunction with our financial statements, including the notes to those financial statements, included elsewhere in this Quarterly Report on Form 10-Q (this “Report”). Some of the comments we make in this section are forward-looking statements within the meaning of the federal securities laws. For a complete discussion of forward-looking statements, see the section below entitled “Special Note Regarding Forward-Looking Statements.” Certain risk factors may cause actual results, performance or achievements to differ materially from those expressed or implied by the following discussion. For a discussion of such risk factors, see Item 1A. Risk Factors of our Annual Report on Form 10-K for the year ended December 31, 2020, that was filed with the U.S. Securities and Exchange Commission (the “SEC” or the “Commission”) on March 8, 2021 and Item 1A. Risk Factors in this Report. Unless otherwise indicated, all dollar and share amounts in the following discussion are presented in thousands.

Special Note Regarding Forward-Looking Statements

This Report contains “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995 (set forth in Section 27A of the Securities Act of 1933, as amended (the “Securities Act”), and Section 21E of the Securities Exchange Act of 1934, as amended (the “Exchange Act”)). In particular, statements pertaining to our trends, liquidity, capital resources, and the healthcare industry and the healthcare real estate markets and opportunity, among others, contain forward-looking statements. You can identify forward-looking statements by the use of forward-looking terminology including, but not limited to, “believes,” “expects,” “may,” “will,” “should,” “seeks,” “approximately,” “intends,” “plans,” “estimates” or “anticipates” or the negative of these words and phrases or similar words or phrases which are predictions of or indicate future events or trends and which do not relate solely to historical matters. You can also identify forward-looking statements by discussions of strategy, plans or intentions.

Forward-looking statements involve numerous risks and uncertainties and you should not rely on them as predictions of future events. Forward-looking statements depend on assumptions, data or methods which may be incorrect or imprecise and we may not be able to realize them. We do not guarantee that the transactions and events described will happen as described (or that they will happen at all). The following factors, among others, could cause actual results and future events to differ materially from those set forth or contemplated in the forward-looking statements:

● the effects of the ongoing novel coronavirus (“COVID-19”) pandemic, which are highly uncertain, cannot be predicted and will depend upon future developments, including the severity of COVID-19, the duration of the outbreak and potential resurgences, the duration of existing or new social distancing and shelter-in-place orders, further mitigation strategies taken by applicable government authorities, the availability and distribution of vaccines, adequate testing and treatments and the prevalence of widespread immunity to COVID-19;

● defaults on or non-renewal of leases by tenants;

● our ability to collect rents;

● our ability to satisfy the covenants in our existing and any future debt agreements;

● decreased rental rates or increased vacancy rates, including expected rent levels on acquired properties;

● difficulties in identifying healthcare facilities to acquire and completing such acquisitions;

● adverse economic or real estate conditions or developments, either nationally or in the markets in which our facilities are located;

● our failure to generate sufficient cash flows to service our outstanding obligations;

● fluctuations in interest rates and increased operating costs;

● our failure to effectively hedge our interest rate risk;

● our ability to satisfy our short and long-term liquidity requirements;

● our ability to deploy the debt and equity capital we raise;

● our ability to raise additional equity and debt capital on terms that are attractive or at all;

● our ability to make distributions on shares of our common and preferred stock;

● expectations regarding the timing and/or completion of any acquisition;

● general volatility of the market price of our common and preferred stock;

● changes in our business or our investment or financing strategy;

● our dependence upon key personnel whose continued service is not guaranteed;

● our ability to identify, hire and retain highly qualified personnel in the future;

● the degree and nature of our competition;

● changes in healthcare laws, governmental regulations, tax rates and similar matters;

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● changes in current healthcare and healthcare real estate trends;

● changes in expected trends in Medicare, Medicaid and commercial insurance reimbursement trends;

● competition for investment opportunities;

● our failure to successfully integrate acquired healthcare facilities;

● our expected tenant improvement expenditures;

● changes in accounting policies generally accepted in the United States of America (“GAAP”);

● lack of or insufficient amounts of insurance;

● other factors affecting the real estate industry generally;

● changes in the tax treatment of our distributions;

● our failure to qualify and maintain our qualification as a real estate investment trust (“REIT”) for U.S. federal income tax purposes;

● our ability to qualify for the safe harbors from the “100% Prohibited Transactions Tax” under the REIT rules with respect to our property dispositions; and

● limitations imposed on our business and our ability to satisfy complex rules relating to REIT qualification for U.S. federal income tax purposes.

See Item 1A. Risk Factors in our Annual Report on Form 10-K for the year ended December 31, 2020 and Item 1A. Risk Factors in this Report for further discussion of these and other risks, as well as the risks, uncertainties and other factors discussed in this Report and identified in other documents we may file with the SEC from time to time. You should carefully consider these risks before making any investment decisions in our company. New risks and uncertainties may also emerge from time to time that could materially and adversely affect us. While forward-looking statements reflect our good faith beliefs, they are not guarantees of future performance. We disclaim any obligation to update or revise any forward-looking statement to reflect changes in underlying assumptions or factors, of new information, data or methods, future events or other changes after the date of this Report, except as required by applicable law. You should not place undue reliance on any forward-looking statements that are based on information currently available to us or the third parties making the forward-looking statements.

Overview

Global Medical REIT Inc. (the “Company,” “us,” “we,” or “our”) is a Maryland corporation engaged primarily in the acquisition of purpose-built healthcare facilities and the leasing of those facilities to strong healthcare systems and physician groups with leading market share.  

We elected to be taxed as a REIT for U.S. federal income tax purposes commencing with our taxable year ended December 31, 2016. We conduct our business through an umbrella partnership real estate investment trust, or UPREIT, structure in which our properties are owned by wholly owned subsidiaries of our operating partnership, Global Medical REIT L.P. (the “Operating Partnership”). Our wholly owned subsidiary, Global Medical REIT GP LLC, is the sole general partner of our Operating Partnership and, as of March 31, 2021, we owned 93.99% of the outstanding equity interests in our Operating Partnership.

Our Business Objectives and Investment Strategy

Our principal business objective is to provide attractive, risk-adjusted returns to our stockholders through a combination of (i) reliable dividends and (ii) long-term capital appreciation. Our primary strategies to achieve our business objective are to:

● construct a portfolio of healthcare facilities that are primarily located in secondary markets and suburbs of primary markets and are situated to take advantage of the aging of the U.S. population and the decentralization of the healthcare delivery system;

● lease our properties to healthcare tenants with profitable practices that are utilized by an aging population and are highly dependent on their purpose-built real estate to deliver core medical procedures, such as cardiovascular treatment, rehabilitation, eye surgery, gastroenterology, oncology treatment and orthopedics;

● set aside a portion of our property portfolio for opportunistic acquisitions, including (i) certain acute-care hospitals and long-term acute care facilities (LTACs), that we believe provide premium, risk-adjusted returns, (ii) health system corporate office and administrative buildings, which we believe will help us develop relationships with larger health systems and (iii) behavioral and mental health facilities that are operated by national or regional operators and are located in markets that demonstrate a need for such services; and

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● lease our facilities under triple-net leases with contractual annual rent escalations.

Corporate Sustainability and Social Responsibility

Our business values integrate environmental sustainability, social responsibility and strong governance practices throughout our organization.

We continue to improve and expand our efforts in the corporate sustainability arena. During 2020 we focused on tenant outreach and data collection in order to benchmark our portfolio’s energy consumption and efficiency. We completed our inaugural GRESB submission and established an ESG working group that includes a full-time employee dedicated to our environmental endeavors. We also engaged a third-party expert to assist with this project.

During the COVID-19 pandemic, our employee engagement has remained a high-priority, as we continue to make accommodations for health, safety, and work-life balance to ensure our team has the most support during this difficult time. We continue to modestly grow our team and have experienced no turnover during the pandemic.

Our Board of Directors (the “Board”) continues to lead our social and governance efforts. With its diverse composition, our Board is a strong example of inclusive leadership. From a governance perspective, the Board has continued to adopt policies with best practices in mind and has joined the National Association of Corporate Directors, a membership association chartered to increase board strategic awareness and enhance continuous improvement and effectiveness.

Climate Change

We take climate change and the risks associated with climate change seriously. Though we are at our benchmarking and data collecting phase, we are committed to aligning our investment strategy with science. To that end we are exploring ways to more thoroughly integrate mitigation of climate risk, should it be present, in our acquisition strategy, as well as ways to contribute to the reduction of climate impact through proactive asset management that looks for ways to incorporate renewable energy resources and energy utilization reduction. We stand with our communities, tenants, and stockholders in supporting meaningful solutions that address this global challenge and contribute to the sustainability of our business objectives.

Impact of COVID-19 and Business Outlook

Although COVID-19 vaccines are starting to become widely available in the United States, the COVID-19 pandemic has not ended and its effects on the U.S. economy will have lasting effects. Although the COVID-19 pandemic did not have a material effect on our business in 2020 and the first quarter of 2021, a resurgence of COVID-19 that affects our tenants’ ability to pay rent to us, our lenders’ ability to lend to us, or our ability to raise equity capital could have a material adverse effect on us.

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Executive Summary

The following table summarizes the material changes in our financial statements during the periods presented:

	Three Months Ended March 31,
	2021		2020
	(in thousands, except per share and unit amounts)
Rental revenue	$	27,325	$	21,533
Depreciation and amortization expense	$	10,853	$	7,757
Interest expense	$	5,037	$	4,378
General and administrative expense	$	4,383	$	1,839
Net income attributable to common stockholders per share	$	0.03	$	0.03
FFO per share and unit(1)	$	0.23	$	0.19
AFFO per share and unit(1)	$	0.24	$	0.20
Dividends per share of common stock	$	0.205	$	0.20
Weighted average common stock outstanding		52,671		44,182
Weighted average OP Units outstanding		1,764		2,772
Weighted average LTIP Units outstanding		1,882		920
Total weighted average shares and units outstanding		56,317		47,874

(1) See “—Non-GAAP Financial Measures,” for a description of our non-GAAP financial measures and a reconciliation of our non-GAAP financial measures.

	As of
	March 31,			December 31,
	2021			2020
	(dollars in thousands)
Investment in real estate, gross	$	1,186,475		$	1,142,905
Total debt, net	$	485,026		$	586,578
Weighted average interest rate		3.66	%		3.17	%
Total equity (including noncontrolling interest)	$	595,819		$	457,760
Net leasable square feet		3,816,397			3,694,865

Our Properties

During the three months ended March 31, 2021, we completed four acquisitions encompassing an aggregate of 120,032 leasable square feet for an aggregate contractual purchase price of $42.8 million with an aggregate annualized base rent of $3.3 million. As of March 31, 2021, our portfolio consisted of gross investment in real estate of $1.2 billion, which was comprised of 90 facilities with an aggregate of 3.8 million leasable square feet and an aggregate $91.4 million of annualized base rent.

Capital Raising Activity

On March 18, 2021, we closed an underwritten public offering of our common stock, including the related option to purchase additional shares granted to the underwriters. These transactions resulted in the issuance of 8.6 million shares of our common stock at a public offering price of $13.30 per share, generating gross proceeds of $114.7 million.  

During the three months ended March 31, 2021, we generated gross proceeds of $35.4 million through at-the-market ("ATM") equity issuances of 2.7 million shares of our common stock at an average offering price of $13.07 per share.

Debt Activity

During the three months ended March 31, 2021, we borrowed $50.1 million under our credit facility and repaid $151.8 million, for a net amount repaid of $101.7 million. As of March 31, 2021, the net outstanding credit facility balance was $420.2 million.

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Recent Developments

Closing of Amended and Restated Credit Facility

On May 3, 2021, the Company entered into an amended and restated credit facility (the “Amended and Restated Credit Facility”) to, among other things, (i) increase the overall capacity of the facility from $600 million to $750 million, consisting of a $400 million revolver component and a $350 million term loan component, (ii) extend the term of the revolver component to May 2025, with two six-month extension options, and extend the maturity of the term loan component to May 2026, (iii) convert the facility from a secured to an unsecured facility and (iv) implement a new pricing matrix. The Amended and Restated Credit Facility includes a $500 million accordion feature.  In addition, on May 4, 2021, the Company entered into five forward starting interest rate swaps that will fix the LIBOR component on the term loan component of the Amended and Restated Credit Facility through May 2026. Currently, the Company’s interest rate swaps fix the LIBOR component of the term loan at a rate of 1.91% through August 2023. Subsequently, from August 2023 to August 2024 the LIBOR component of the term loan rate will be fixed at 1.61%.  Finally, from August 2024 to May 2026 the LIBOR component of the term loan rate will be fixed at 1.45%.

Completed Acquisitions Subsequent to March 31, 2021

Since March 31, 2021, we have completed five acquisitions encompassing an aggregate of 188,016 leasable square feet for an aggregate purchase price of $58.2 million with annualized base rent of $4.2 million.

Properties Under Contract

We have three properties under contract for an aggregate purchase price of approximately $32.3 million. We are currently in the due diligence period for our properties under contract. If we identify problems with any of these properties or the operators of any properties during our due diligence review, we may not close the transactions on a timely basis or we may terminate the purchase agreements and not close the transactions.

Trends Which May Influence Our Results of Operations

We believe the following trends may positively impact our results of operations:

● Growing healthcare expenditures. According to the U.S. Department of Health and Human Services, overall healthcare expenditures are expected to grow at an average rate of 5.5% per year through 2027. We believe the long-term growth in healthcare expenditures will help maintain or increase the value of our healthcare real estate portfolio.

● An aging population. According to the 2010 U.S. Census, the segment of the population consisting of people 65 years or older comprise the fastest growing segment of the overall U.S. population. We believe this segment of the U.S. population will utilize many of the services provided at our healthcare facilities such as orthopedics, cardiac, gastroenterology and rehabilitation.

● A continuing shift towards outpatient care. According to the American Hospital Association, patients are demanding more outpatient operations. We believe this shift in patient preference from inpatient to outpatient facilities will benefit our tenants as most of our properties consist of outpatient facilities.

● Physician practice group and hospital consolidation. We believe the trend towards physician group consolidation will serve to strengthen the credit quality of our tenants if our tenants merge or are consolidated with larger health systems.

We believe the following trends may negatively impact our results of operations:

● Increased competition for acquisition opportunities.  We face increased competition for our target asset classes from both private funds and other public REITs.  Medical office properties have proven to be a resilient asset class during the COVID-19 pandemic as many tenants of such properties continued to pay rent during the pandemic, which was not the case for many other types of commercial real estate. Given the resiliency of medical office buildings, many real estate funds are now competing for acquisition opportunities in medical real estate, which will cause a decrease in overall capitalization rates and make it more difficult for us to locate acquisition opportunities that meet our investment and return criteria.    

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● Continuation of the COVID-19 pandemic – Although COVID-19 vaccines are currently being distributed and administered in the U.S., it is unclear when or if the COVID-19 pandemic will subside and the U.S. economy will recover. Although many of our tenants are continuing to operate during the pandemic, it is unclear when/if our tenants will return to pre-COVID-19 patient volumes. Although we do not believe the current state of the COVID-19 pandemic will negatively affect our ability to collect rents in the near term, a prolonged pandemic or resurgence could put additional strain on our tenants and could affect their ability to pay rents to us.  

● Changes in third party reimbursement methods and policies. Even prior to the COVID-19 pandemic, the price of healthcare services was increasing, and we believed that third-party payors, such as Medicare and commercial insurance companies, would continue to scrutinize and reduce the types of healthcare services eligible for, and the amounts of, reimbursement under their health insurance plans. Additionally, many employer-based insurance plans were continuing to increase the percentage of insurance premiums for which covered individuals are responsible. We expect these trends will only be exacerbated by the COVID-19 pandemic, as federal and state budgets are likely to be under tremendous stress due to the pandemic, which could affect government-sponsored insurance plans. If these trends continue, our tenants’ businesses will continue to be negatively affected, which may impact their ability to pay rent to us.

Critical Accounting Policy

The preparation of financial statements in conformity with GAAP requires us to use judgment in the application of accounting policies, including making estimates and assumptions. We base estimates on the best information available to us at the time, our experience and on various other assumptions believed to be reasonable under the circumstances. These estimates affect the reported amounts of assets and liabilities, disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenue and expenses during the reporting periods. If our judgment or interpretation of the facts and circumstances relating to various transactions or other matters had been different, it is possible that different accounting would have been applied, resulting in a different presentation of our financial statements. From time to time, we re-evaluate our estimates and assumptions. In the event estimates or assumptions prove to be different from actual results, adjustments are made in subsequent periods to reflect more current estimates and assumptions about matters that are inherently uncertain. Please refer to our Annual Report on Form 10-K for the year ended December 31, 2020, filed with the Commission on March 8, 2021, for further information regarding the critical accounting policies that affect our more significant estimates and judgments used in the preparation of our condensed consolidated financial statements included in Part I, Item 1 of this Report.

Consolidated Results of Operations

The major factors that resulted in variances in our results of operations for each revenue and expense category for the three months ended March 31, 2021 compared to the same period in 2020 was the increase in the size of our property portfolio and our management internalization transaction. Our total investments in real estate, net of accumulated depreciation and amortization, was $1.1 billion and $910.1 million as of March 31, 2021 and 2020, respectively.

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Three Months Ended March 31, 2021 Compared to Three Months Ended March 31, 2020

	Three Months Ended March 31,
	2021		2020		$ Change
	(in thousands)
Revenue
Rental revenue	$	27,325	$	21,533	$	5,792
Other income		24		116		(92)
Total revenue		27,349		21,649		5,700
Expenses
General and administrative		4,383		1,839		2,544
Operating expenses		3,687		2,303		1,384
Management fees – related party		—		2,002		(2,002)
Depreciation expense		7,848		5,836		2,012
Amortization expense		3,005		1,921		1,084
Interest expense		5,037		4,378		659
Management internalization expense		—		504		(504)
Preacquisition expense		66		49		17
Total expenses		24,026		18,832		5,194
Net income	$	3,323	$	2,817	$	506

Revenue

Total Revenue

Total revenue for the three months ended March 31, 2021 was $27.3 million, compared to $21.6 million for the same period in 2020, an increase of $5.7 million. The increase was primarily the result of rental revenue earned from the facilities that we acquired after March 31, 2020, as well as from the recognition of a full three months of rental revenue in 2021 from acquisitions that were completed during the three months ended March 31, 2020. Within that increase, $2.9 million in revenue was recognized from net lease expense recoveries during the three months ended March 31, 2021, compared to $1.9 million for the same period in 2020.

Expenses

General and Administrative

General and administrative expenses for the three months ended March 31, 2021 were $4.4 million, compared to $1.8 million for the same period in 2020, an increase of $2.6 million. The increase was primarily driven by our recognition of compensation-related costs and other administrative expenses that, prior to the management internalization transaction, were the obligation of our former advisor. In addition, this increase was also due to an increase in non-cash LTIP compensation expense, which was $1.7 million for the three months ended March 31, 2021, compared to $0.9 million for the same period in 2020.

Operating Expenses

Operating expenses for the three months ended March 31, 2021 were $3.7 million, compared to $2.3 million for the same period in 2020, an increase of $1.4 million. The increase resulted primarily from $2.9 million of recoverable property operating expenses incurred during the three months ended March 31, 2021, compared to $1.9 million for the same period in 2020.  In addition, our operating expenses included $0.5 million of property operating expenses from gross leases for the three months ended March 31, 2021, compared to $0.2 million for the same period in 2020.

Management Fee Expense – related party

As a result of the management internalization transaction, we incurred no management fee expense for the three months ended March 31, 2021.  Management fee expense was $2.0 million for the three months ended March 31, 2020 and was calculated based on our stockholders’ equity balance.

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Depreciation Expense

Depreciation expense for the three months ended March 31, 2021 was $7.8 million, compared to $5.8 million for the same period in 2020, an increase of $2.0 million. The increase resulted primarily from depreciation expense incurred on the facilities that we acquired after March 31, 2020, as well as from the recognition of a full three months of depreciation expense in 2021 from intangible assets recorded during the three months ended March 31, 2020.

Amortization Expense

Amortization expense for the three months ended March 31, 2021 was $3.0 million, compared to $1.9 million for the same period in 2020, an increase of $1.1 million. The increase resulted primarily from amortization expense incurred on intangible assets acquired after March 31, 2020, as well as from the recognition of a full three months of amortization expense in 2021 from intangible assets recorded during the three months ended March 31, 2020.

Interest Expense

Interest expense for the three months ended March 31, 2021 was $5.0 million, compared to $4.4 million for the same period in 2020, an increase of $0.6 million. This increase was due to higher average borrowings during the three months ended March 31, 2021, compared to the same period last year, the proceeds of which were used to partially finance our property acquisitions during that time period.

The weighted average interest rate of our debt for the three months ended March 31, 2021 was 3.17% compared to 3.81% for the three months ended March 31, 2020. Additionally, the weighted average interest rate and term of our debt was 3.66% and 2.58 years at March 31, 2021.

Management Internalization Expense

As a result of the completion of the management internalization transaction in July 2020, we had no management internalization expense for the three months ended March 31, 2021.  Management internalization expense was $0.5 million for the three months ended March 31, 2020.

Net Income

Net income for the three months ended March 31, 2021 was $3.3 million, compared to $2.8 million for the same period in 2020, an increase of $0.5 million.

Assets and Liabilities

As of March 31, 2021 and December 31, 2020, our principal assets consisted of investments in real estate, net, of $1.1 billion and $1.0 billion, respectively. Our liquid assets consisted primarily of cash and cash equivalents and restricted cash of $11.4 million and $10.8 million, as of March 31, 2021 and December 31, 2020, respectively.

The increase in our investments in real estate, net, to $1.1 billion as of March 31, 2021 compared to $1.0 billion as of December 31, 2020, was the result of the four acquisitions that we completed during the three months ended March 31, 2021.

The increase in our cash and cash equivalents and restricted cash balances to $11.4 million as of March 31, 2021, compared to $10.8 million as of December 31, 2020, was primarily due to net proceeds from common equity offerings. Cash inflows were partially offset by funds used to acquire real estate, paydown debt, and dividends paid to our common and preferred stockholders and OP Unit and LTIP Unit holders of our Operating Partnership.

The decrease in our total liabilities to $540.5 million as of March 31, 2021 compared to $643.1 million as of December 31, 2020, was primarily the result of lower net borrowings outstanding during the current period.

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Liquidity and Capital Resources

General

Our short-term liquidity requirements include:

● Interest expense and scheduled principal payments on outstanding indebtedness, which includes a near term (under one year) debt maturity of $7.1 million;

● General and administrative expenses;

● Operating expenses; and

● Property acquisitions and tenant improvements.

In addition, we require funds for future distributions expected to be paid to our common and preferred stockholders and OP Unit and LTIP Unit holders in our Operating Partnership.

Our primary sources of cash include rent and reimbursements we collect from our tenants, borrowings under our Amended and Restated Credit Facility, secured term loans, and net proceeds received from equity issuances.  In addition, we may generate cash from property dispositions.

Our long-term liquidity needs consist primarily of funds necessary to pay for acquisitions, capital and tenant improvements at our properties, scheduled debt maturities, general and administrative expenses, operating expenses, and distributions. We expect to satisfy our short and long-term liquidity needs through cash flow from operations, debt financing, sales of additional equity securities, the issuance of OP Units in connection with acquisitions of additional properties, proceeds from select property dispositions and joint venture transactions.

Equity Issuances

On March 18, 2021, we closed an underwritten public offering of our common stock, including the related option to purchase additional shares granted to the underwriters. These transactions resulted in the issuance of 8.6 million shares of our common stock at a public offering price of $13.30 per share, generating gross proceeds of $114.7 million.  

During the three months ended March 31, 2021, we generated gross proceeds of $35.4 million through ATM equity issuances of 2.7 million shares of our common stock at an average offering price of $13.07 per share.

Debt Financing

Amended and Restated Credit Facility. As described in “Recent Developments – Closing of Amended and Restated Credit Facility,” the Company entered into the Amended and Restated Credit Facility on May 3, 2021. The Amended and Restated Credit Facility consists of a $350 million term loan component and a $400 million revolver component. The Amended and Restated Credit Facility also contains a $500 million accordion. As of May 3, 2021, we had borrowing capacity under our revolver of approximately $250 million.

The Amended and Restated Credit Facility is an unsecured facility with a term of four years for the revolver component (subject to two, six-month extension options) and a term of five years for the term loan component. The Amended and Restated Credit Facility also contains the following interest rate pricing grid:

	Revolver LIBOR Margin		Term Loan LIBOR Margin
Leverage Based Pricing	Current	Prior	Current	Prior
< 40%	1.25%	N/A	1.20%	N/A
> 40% and < 45%	1.35%	1.40%	1.30%	1.35%
> 45% and < 50%	1.50%	1.65%	1.45%	1.60%
> 50 % and < 55%	1.75%	1.90%	1.70%	1.85%
> 55%	2.00%	2.15%	1.95%	2.10%

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As of May 3, 2021, we were subject to a number of financial covenants under the Amended and Restated Credit Facility, including, among other things, the following as of the end of each fiscal quarter, (i) a maximum consolidated unsecured leverage ratio of less than 60%, (ii) a maximum consolidated secured leverage ratio of less than 30%, (iii) a maximum consolidated secured recourse leverage ratio of less than 10%, (iv) a minimum fixed charge coverage ratio of 1.50:1.00, (v) a minimum unsecured interest coverage ratio of 1.50:1.00, (vi) a maximum consolidated leverage ratio of less than 60%, and (vii) a minimum net worth of $345 million plus 75% of all net proceeds raised through equity offerings subsequent to December 31, 2020. As of May 3, 2021, management believed it was in compliance with all of the financial and non-financial covenants contained in the Amended and Restated Credit Facility.

Hedging Instruments. As of March 31, 2021, we had entered into six interest rate swaps with four counterparties to hedge the LIBOR component of our interest rate risk related to the Term Loan. Together, these swaps fix the LIBOR component of the entire $350 million Term Loan on a weighted average basis at 1.91% through August 2023. An aggregate of $200 million of the swaps mature in August 2024 and an additional $150 million matures in August 2023.

In addition, on May 4, 2021, the Company entered into five forward starting interest rate swaps that will fix the LIBOR component on the term loan component of the Amended and Restated Credit Facility through May 2026. From August 2023 to August 2024 the LIBOR component of the term loan rate will be fixed at 1.61%.  Finally, from August 2024 to May 2026 the LIBOR component of the term loan rate will be fixed at 1.45%.

LIBOR Transition. On March 5, 2021, the FCA announced that USD LIBOR will no longer be published after June 30, 2023. This announcement has several implications, including setting the spread that may be used to automatically convert contracts from LIBOR to SOFR.  Additionally, banking regulators are encouraging banks to discontinue new LIBOR debt issuances by December 31, 2021. The Company anticipates that LIBOR will continue to be available at least until June 30, 2023.  The Amended and Restated Credit Facility provides that, on or about the LIBOR cessation date (subject to an early opt-in election), LIBOR shall be replaced as a benchmark rate in the Amended and Restated Credit Facility with a new benchmark rate, with such adjustments as set forth in the Amended and Restated Credit Facility. We are not able to predict when LIBOR will cease to be available or when there will be enough liquidity in the SOFR markets.

Cash Flow Information

Net cash provided by operating activities for the three months ended March 31, 2021 was $15.3 million, compared with $12.3 million for the same period in 2020. The increase during the 2021 period was primarily due to increases in depreciation and amortization expenses and net income for the three months ended March 31, 2021 compared to the same period in 2020.

Net cash used in investing activities for the three months ended March 31, 2021 was $43.8 million, compared with $68.8 million for the same period in 2020. The decrease during the 2021 period was primarily the result of less real estate investment activity in the 2021 period compared to the same period in 2020.

Net cash provided by financing activities for the three months ended March 31, 2021 was $28.9 million, compared with $66.2 million for the same period in 2020. The decrease during the 2021 period was primarily due to net repayments on the Credit Facility and higher dividends paid to our common stockholders, partially offset by net proceeds received from our common stock offerings.

Non-GAAP Financial Measures

Funds from operations (“FFO”) and adjusted funds from operations (“AFFO”) are non-GAAP financial measures within the meaning of the rules of the SEC. The Company considers FFO and AFFO to be important supplemental measures of its operating performance and believes FFO is frequently used by securities analysts, investors, and other interested parties in the evaluation of REITs, many of which present FFO when reporting their results.

In accordance with the National Association of Real Estate Investment Trusts’ (“NAREIT”) definition, FFO means net income or loss computed in accordance with GAAP before noncontrolling interests of holders of OP Units and LTIP Units, excluding gains (or losses) from sales of property and extraordinary items, less preferred stock dividends, plus real estate-related depreciation and amortization (excluding amortization of debt issuance costs and the amortization of above and below market leases), and after adjustments for unconsolidated partnerships and joint ventures. The Company did not record any adjustments for unconsolidated partnerships and joint ventures during the three months ended March 31, 2021 and 2020. Because FFO excludes real estate-related depreciation and amortization (other than amortization of debt issuance costs and above and below market lease amortization expense),

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the Company believes that FFO provides a performance measure that, when compared period-over-period, reflects the impact to operations from trends in occupancy rates, rental rates, operating costs, development activities and interest costs, providing perspective not immediately apparent from the closest GAAP measurement, net income or loss.

AFFO is a non-GAAP measure used by many investors and analysts to measure a real estate company’s operating performance by removing the effect of items that do not reflect ongoing property operations. Management calculates AFFO by modifying the NAREIT computation of FFO by adjusting it for certain cash and non-cash items and certain recurring and non-recurring items. For the Company these items include recurring acquisition and disposition costs, loss on the extinguishment of debt, recurring straight line deferred rental revenue, recurring stock-based compensation expense, recurring amortization of above and below market leases, recurring amortization of debt issuance costs, recurring lease commissions, management internalization costs, and other items.

Management believes that reporting AFFO in addition to FFO is a useful supplemental measure for the investment community to use when evaluating the operating performance of the Company on a comparative basis. The Company’s FFO and AFFO computations may not be comparable to FFO and AFFO reported by other REITs that do not compute FFO in accordance with the NAREIT definition, that interpret the NAREIT definition differently than the Company does, or that compute FFO and AFFO in a different manner.

A reconciliation of FFO and AFFO for the three months ended March 31, 2021 and 2020 is as follows:

		Three Months Ended March 31,
		2021		2020
	(unaudited, in thousands except per share and unit amounts)
Net income		$	3,323	$	2,817
Less: Preferred stock dividends			(1,455)		(1,455)
Depreciation and amortization expense			10,826		7,757
FFO		$	12,694	$	9,119
Amortization of above market leases, net			60		247
Straight line deferred rental revenue			(1,404)		(1,557)
Stock-based compensation expense			1,715		922
Amortization of debt issuance costs and other			425		315
Management internalization expense			—		504
Preacquisition expense			66		49
AFFO		$	13,556	$	9,599
Net income attributable to common stockholders per share – basic and diluted		$	0.03	$	0.03
FFO per share and unit		$	0.23	$	0.19
AFFO per share and unit		$	0.24	$	0.20
Weighted Average Shares and Units Outstanding – basic and diluted			56,317		47,874
Weighted Average Shares and Units Outstanding:
Weighted Average Common Shares			52,671		44,182
Weighted Average OP Units			1,764		2,772
Weighted Average LTIP Units			1,882		920
Weighted Average Shares and Units Outstanding – basic and diluted			56,317		47,874

Off-Balance Sheet Arrangements

We have no off-balance sheet arrangements that have or are reasonably likely to have a current or future effect or change on our financial condition, revenues or expenses, results of operations, liquidity, capital expenditures or capital resources that are material to investors. The term “off-balance sheet arrangement” generally means any transaction, agreement or other contractual arrangement to which an entity unconsolidated with us is a party, under which we have (i) any obligation arising under a guarantee contract, derivative instrument or variable interest; or (ii) a retained or contingent interest in assets transferred to such entity or similar arrangement that serves as credit, liquidity or market risk support for such assets.

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Inflation

Historically, inflation has had a minimal impact on the operating performance of our healthcare facilities. Many of our triple-net lease agreements contain provisions designed to mitigate the adverse impact of inflation. These provisions include clauses that enable us to receive payment of increased rent pursuant to escalation clauses which generally increase rental rates during the terms of the leases. These escalation clauses often provide for fixed rent increases or indexed escalations (based upon the CPI or other measures). However, some of these contractual rent increases may be less than the actual rate of inflation. Most of our triple-net lease agreements require the tenant-operator to pay an allocable share of operating expenses, including common area maintenance costs, real estate taxes and insurance. This requirement reduces our exposure to increases in these costs and operating expenses resulting from inflation.

Item 3. Quantitative and Qualitative Disclosures About Market Risk.

Market risk includes risks that arise from changes in interest rates, foreign currency exchange rates, commodity prices, equity prices and other market changes that affect market sensitive instruments. In pursuing our business and investment objectives, we expect that the primary market risk to which we will be exposed is interest rate risk.

We may be exposed to the effects of interest rate changes primarily as a result of debt used to acquire healthcare facilities, including borrowings under the Amended and Restated Credit Facility. The analysis below presents the sensitivity of the value of our variable rate financial obligations to selected changes in market interest rates. The range of changes chosen reflects our view of changes which are reasonably possible over a one-year period.

As of March 31, 2021, we had $73.5 million of unhedged floating-rate borrowings outstanding (before the netting of unamortized debt issuance costs). At March 31, 2021, LIBOR on our outstanding floating-rate borrowings was 0.13%. Assuming no increase in the amount of our floating-rate debt, if LIBOR increased 100 basis points, our cash flow would decrease by approximately $0.7 million annually. Assuming no increase in the amount of our floating-rate debt, if LIBOR were reduced 100 basis points, our cash flow would increase by approximately $0.7 million annually.

Our interest rate risk management objectives are to limit the impact of interest rate changes on earnings and cash flows and to lower overall borrowing costs. To achieve our objectives, we may borrow at fixed rates or floating rates. As of March 31, 2021, in total we had entered into six interest rate swaps with four counterparties to hedge the LIBOR component of our interest rate risk related to the term loan component of the Amended and Restated Credit Facility (the “Term Loan”). Together, these swaps fix the LIBOR component of the entire $350 million Term Loan on a weighted average basis at 1.91% through August 2023. See Note 4 – “Credit Facility, Notes Payable and Derivative Instruments” for further details on our interest rate swaps. In addition, on May 4, 2021, the Company entered into five forward starting interest rate swaps that will fix the LIBOR component on the term loan component of the Amended and Restated Credit Facility through May 2026. From August 2023 to August 2024 the LIBOR component of the term loan rate will be fixed at 1.61%.  Finally, from August 2024 to May 2026 the LIBOR component of the term loan rate will be fixed at 1.45%.

We may enter into additional derivative financial instruments, including interest rate swaps and caps, in order to mitigate our interest rate risk on our future borrowings. We will not enter into derivative transactions for speculative purposes.

In addition to changes in interest rates, the value of our investments is subject to fluctuations based on changes in local and regional economic conditions and changes in the creditworthiness of tenants/operators and borrowers, which may affect our ability to refinance our debt if necessary.

Item 4. Controls and Procedures.

Evaluation of Disclosure Controls and Procedures

We maintain disclosure controls and procedures as defined in Rules 13a-15(e) and 15d-15(e) of the Exchange Act that are designed to ensure that information required to be disclosed in our reports filed or submitted to the SEC under the Exchange Act is recorded, processed, summarized and reported within the time periods specified by the SEC’s rules and forms, and that information is accumulated and communicated to management, including the principal executive and financial officer as appropriate, to allow timely decisions regarding required disclosures. Our principal executive officer and principal financial officer evaluated the effectiveness of disclosure controls and procedures as of March 31, 2021 pursuant to Rule 13a-15(b) under the Exchange Act. Based on that evaluation, our principal executive officer and principal financial officer concluded that, as of the end of the period covered by this Report, the

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Company’s disclosure controls and procedures were effective to ensure that information required to be included in our periodic SEC filings is recorded, processed, summarized, and reported within the time periods specified in the SEC rules and forms.

Our management, including our principal executive officer and principal financial officer, does not expect that our disclosure controls and procedures or our internal controls will prevent all error and all fraud. A control system, no matter how well conceived and operated, can provide only reasonable, not absolute, assurance that the objectives of the control system are met. Further, the design of a control system must reflect the fact that there are resource constraints and the benefits of controls must be considered relative to their costs. Due to the inherent limitations in all control systems, no evaluation of controls can provide absolute assurance that all control issues and instances of fraud, if any, within our company have been detected.

Changes in Internal Control over Financial Reporting

No changes were made to our internal control over financial reporting during our most recently completed fiscal quarter that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.

PART II OTHER INFORMATION

Item 1. Legal Proceedings

We are not involved in any pending legal proceeding or litigation and, to the best of our knowledge, no governmental authority is contemplating any proceeding to which we are a party or to which any of our properties is subject, which would reasonably be likely to have a material adverse effect on our financial condition or results of operations. From time to time, we may become involved in litigation relating to claims arising out of our operations in the normal course of business. There can be no assurance that these matters that arise in the future, individually or in the aggregate, will not have a material adverse effect on our financial condition or results of operations in any future period.

Item 1A. Risk Factors

The following supplements and updates the risk factors in Part I, Item 1A. Risk Factors in our Annual Report on Form 10-K for the year ended December 31, 2020. Some statements in this Report, including statements in the following risk factor, constitute forward looking statements. Please refer to Part I, Item 2 of this Report entitled “Special Note Regarding Forward-Looking Statements.”

The physical effects of climate change could have a material adverse effect on our properties.

The physical effects of climate change could have a material adverse effect on our facilities, operations, and business. To the extent climate change causes changes in weather patterns, markets where our properties are located could experience increases in storm intensity, rising sea-levels, and changes in precipitation, temperature, and air quality. Over time, these conditions could result in physical damage to, or declining demand for, our properties or our inability to operate the facilities at all. Climate change may also indirectly affect our business by increasing the cost of (or making unavailable) property insurance on terms we find acceptable, increasing the cost of energy and increasing the risk of flood at our properties. Should the impact of climate change be severe or occur for lengthy periods of time, our financial condition or results of operations could be adversely impacted.

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds

None.

Item 3. Defaults Upon Senior Securities

None.

Item 4. Mine Safety Disclosures

Not applicable.

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Item 5. Other Information

None.

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Item 6. Exhibits

(a)Exhibits

Exhibit No.	Description
3.1	Articles of Restatement of Global Medical REIT Inc. (incorporated herein by reference to Exhibit 3.1 to the Company’s Report on Form 10-Q as filed with the SEC on August 8, 2018).
3.2	Third Amended and Restated Bylaws of Global Medical REIT Inc., adopted as of August 13, 2019 (incorporated herein by reference to Exhibit 3.2 to the Company’s Current Report on Form 8-K as filed with the SEC on August 14, 2019).
4.1	Specimen of Common Stock Certificate (incorporated herein by reference to Exhibit 4.1 to the Company’s Registration Statement on Form S-11/A filed with the SEC on June 15, 2016).
4.2	Specimen of 7.50% Series A Cumulative Redeemable Preferred Stock Certificate (incorporated herein by reference to Exhibit 4.1 to the Company’s Current Report on Form 8-K as filed with the SEC on September 14, 2017).
10.1*	Form of LTIP Award Agreement (Annual Awards).
10.2*	Form of LTIP Award Agreement (Long-Term Performance Awards).
10.3*	Form of LTIP Award Agreement (Long-Term Time-Based Awards).
10.4*	First Amendment to Employment Agreement, dated January 27, 2021, by and between Inter-American Management LLC and Jeffrey Busch.
10.5*	First Amendment to Employment Agreement, dated January 27, 2021, by and between Inter-American Management LLC and Robert Kiernan.
10.6*	First Amendment to Employment Agreement, dated January 27, 2021, by and between Inter-American Management LLC and Alfonzo Leon.
31.1*	Certification of Principal Executive Officer pursuant to Rules 13a-14(a) and 15d-14(a) promulgated under the Securities Exchange Act of 1934, as amended, as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
31.2*	Certification of Principal Financial and Accounting Officer pursuant to Rules 13a-14(a) and 15d-14(a) promulgated under the Securities Exchange Act of 1934, as amended, as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
32.1*	Certification of Principal Executive Officer and Principal Financial Officer, pursuant to 18 U.S.C. Section 1350 as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
101.INS *	Inline XBRL Instance Document
101.SCH *	Inline XBRL Taxonomy Schema
101.CAL *	Inline XBRL Taxonomy Calculation Linkbase
101.DEF *	Inline XBRL Taxonomy Definition Linkbase
101.LAB *	Inline XBRL Taxonomy Label Linkbase
101.PRE *	Inline XBRL Taxonomy Presentation Linkbase

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104 Cover Page Interactive Data File (embedded within the Inline XBRL document and contained in Exhibit 101)

* Filed herewith

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SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

		GLOBAL MEDICAL REIT INC.
Date: May 7, 2021	By:	/s/ Jeffrey M. Busch
		Jeffrey M. Busch
		Chief Executive Officer (Principal Executive Officer)
Date: May 7, 2021	By:	/s/ Robert J. Kiernan
		Robert J. Kiernan
		Chief Financial Officer (Principal Financial and Accounting Officer)

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EX-10.1

Exhibit 10.1

GLOBAL MEDICAL REIT INC. 2016 ANNUAL INCENTIVE PLAN

LTIP UNIT VESTING AGREEMENT

Annual Award (Performance-Based with Time-Vesting)

Name of Grantee:	[ ]
Number of Award LTIP Units:	[ ]
Grant Date:	March 2, 2021
Final Acceptance Date:	[ ], 2021

Pursuant to the Global Medical REIT Inc. 2016 Equity Incentive Plan, as amended from time to time (the “Plan”), and the Agreement of Limited Partnership, dated as of March 14, 2016 (as amended from time to time, the “Partnership Agreement”), of Global Medical REIT L.P., a Delaware limited partnership (“GMR OP”), Global Medical REIT Inc., a Maryland corporation (the “Company”) and the sole member of Global Medical REIT GP LLC, a Delaware limited liability company, the general partner of GMR OP (the “General Partner”), and for the provision of services to or for the benefit of GMR OP in a partner capacity or in anticipation of being a partner, hereby grants to the Grantee named above an Other Equity-Based Award (as defined in the Plan), to be determined following the conclusion of the Performance Period (defined herein) based on (i) the number of Award LTIP Units shown above (the “Award LTIP Units”) and (ii) the extent to which the Performance Goals (defined herein) are achieved during the Performance Period as provided in further detail herein (such number of LTIP Units that are earned and issued to the Grantee, the “Earned LTIP Units”) having the rights, voting powers, restrictions, limitations as to distributions, qualifications and terms and conditions of redemption and conversion set forth herein and in the Partnership Agreement (the “Award”). Upon acceptance of this LTIP Unit Vesting Agreement (this “Agreement”), the Grantee shall become entitled to receive the Earned LTIP Units to the extent earned in accordance with, and subject to, the terms and conditions contained herein, in the Plan and in the Partnership Agreement. Capitalized terms used but not defined herein have the meanings assigned to such terms in the Partnership Agreement, attached hereto as ANNEX A, or the Plan, as applicable, unless a different meaning is specified herein.  In addition, as used herein:

“Board Meeting Date” means the date in 2022 on which the Board of Directors of the Company (the “Board”) approves the recommendation of the Compensation Committee of the Board (or such other committee(s) as may be appointed or designated by the Board to administer the Plan) (the “Committee”) with respect to the number of Earned LTIP Units to issue based on the level of achievement of the Performance Goals.

“Continuous Service” means the Grantee’s continuous service to the Company and its Affiliates, without interruption or termination, in any capacity. Continuous Service shall not be considered interrupted in the case of: (a) any approved leave of absence; (b) transfers among the Company and its Affiliates, or any successor; or (c) any change in status as long as the individual remains in the service of the Company and its Affiliates. An approved leave of absence shall include sick leave, military leave, or any other authorized personal leave.

[“Good Reason” means: (i) a material diminution in the Grantee’s base salary; (ii) a material diminution or adverse change in the Grantee’s title, duties or authority; (iii) a material breach by the Company or GMR OP of any of its covenants or obligations under this Agreement; or (iv) the relocation of the geographic location of the Grantee’s principal place of employment by more than 50 miles from the location of the Grantee’s principal place of employment as of the Grant Date; provided that, in the case of the Grantee’s allegation of Good Reason, (A) the condition described in the foregoing clauses must have arisen without the

1

Grantee’s consent; (B) the Grantee must provide written notice to GMR OP of such condition in accordance with the Agreement within 45 days of the initial existence of the condition; (C) the condition specified in such notice must remain uncorrected for 30 days after receipt of such notice by GMR OP; and (D) the Grantee’s date of termination must occur within 60 days after such notice is received by GMR OP.]

“Partial Service Factor” means a factor carried out to the sixth decimal to be used in calculating the number of LTIP Units earned pursuant to Section 3(a) hereof in the event of a Qualified Termination of the Grantee’s Continuous Service prior to the Valuation Date, determined by dividing (a) the number of calendar days that have elapsed since January 1, 2021 to and including the date of the Grantee’s Qualified Termination by (b) the number of calendar days from January 1, 2021 to and including the Valuation Date.

“Performance Period” means the period beginning on January 1, 2021 and ending on the February 28, 2022.

“Retirement” means retirement from employment with the Company and its Affiliates, but only to the extent the Grantee is at least 60 years of age at the time of such retirement and has been employed with the Company and its Affiliates for at least 10 years prior to the date of such retirement.

“Valuation Date” means the earlier of (a) the Board Meeting Date or (b) the date upon which a Change in Control shall occur.

1.Acceptance of Agreement. The Grantee shall have no rights with respect to this Agreement unless he or she shall have accepted this Agreement prior to the close of business on the Final Acceptance Date specified above by (a) signing and delivering to GMR OP, a copy of this Agreement and (b) unless the Grantee is already a Limited Partner, the Grantee shall not be entitled to receive the Earned LTIP Units unless the Grantee signs, as a Limited Partner, and delivers to GMR OP a counterpart signature page to the Partnership Agreement. Upon receipt of the Earned LTIP Units to which the Grantee becomes entitled hereunder, the Partnership effective as of the Valuation Date, and the Grantee shall have all the rights of a Limited Partner with respect to the number of LTIP Units specified above, as set forth in the Partnership Agreement, subject, however, to the restrictions and conditions specified in Section 3 below.

2.Form of Settlement. In lieu of issuing the Earned LTIP Units, the Committee shall have the sole discretion to pay the Grantee a cash amount equal to (i) the number of Earned LTIP Units, multiplied by (ii) the Fair Market Value of each Earned LTIP Unit as of the Valuation Date (the “Cash Payment Alternative”), which Cash Payment Alternative shall be in full satisfaction of all claims of the Grantee hereunder.  Notwithstanding anything to the contrary set forth herein, upon the Company’s receipt of stockholder approval to increase the shares available for issuance under the Plan, the Cash Payment Alternative shall be automatically terminated without further action by any of the parties hereto, and the Grantee will only receive the Earned LTIP Units in accordance with the terms and conditions of this Agreement.

3. Restrictions and Conditions.

(a)The records of GMR OP evidencing the Earned LTIP Units granted herein shall bear an appropriate legend, as determined by GMR OP in its sole discretion, to the effect that such LTIP Units are subject to restrictions as set forth herein and in the Partnership Agreement.

(b)Award LTIP Units may not be sold, transferred, pledged, exchanged, hypothecated or otherwise disposed of by the Grantee in any respect.  Earned LTIP Units may not be sold, transferred, pledged, exchanged, hypothecated or otherwise disposed of by the Grantee prior to vesting as contemplated in Section 3 or 4 of this Agreement.

2

(c)Subject to the provisions of Section 4 below, any LTIP Units (and the proportionate amount of the Grantee’s Capital Account balance attributable to such LTIP Units) subject to this Award that have not become vested on or before the date that the Grantee’s employment with the Company and its Affiliates terminates shall be forfeited as of the date that such employment terminates.

4.Determination of Number of Earned LTIP Units. The Committee has established performance goals for calendar year 2021 (the “Performance Period”) as set forth on Exhibit A hereto (the “Performance Goals”) that shall be used to determine the number of Earned LTIP Units. As soon as reasonably practicable following the last day of the Performance Period, which may in some cases not occur before the Company’s operating results for such period have been publicly announced by the Company, the Committee will determine the extent to which the Company has achieved each of the Performance Goals (expressed as a percentage) as further detailed on Exhibit A and, based on such determination, will calculate the number of Earned LTIP Units that Grantee is entitled to receive based on the applicable Performance Percentages described on Exhibit A. Any Award LTIP Units that are not earned in accordance with this Agreement and Exhibit A hereto shall be forfeited and cancelled, and the Grantee shall have no right in or to any such unearned LTIP Units after it is determined that they were not earned.

5.Vesting of LTIP Units. The restrictions and conditions in Sections 3(b) and 3(c) of this Agreement shall lapse with respect to the LTIP Units granted herein in the amounts and on  the Vesting Dates specified below:

Portion of Award to Vest	Vesting Date
50%	As of the Valuation Date
50%	First Anniversary of the Valuation Date
Total: 100% of Award

6.Termination of Employment.

(a)If the Grantee’s employment with the Company and its Affiliates ends on account of the Grantee’s termination of employment by the Company or its Affiliates: (i) without Cause [(as defined in that certain Employment Agreement by and between Inter-American Management LLC (“IAM”) and [ ], dated as of [ ] (the “Employment Agreement”)][(as defined in the Inter-American Management LLC Severance Plan and Summary Plan Description, dated July 9, 2020 (the “Severance Plan”)] (ii) by the Grantee for Good Reason ([as defined in the Employment Agreement][as defined herein]); provided that the Grantee executes the Release ([as defined in Section 7(f)(i) of the Employment Agreement][as defined in Section 5 of the Severance Plan]) on or before the Release Expiration Date ([as defined in Section 7(f)(v) of the Employment Agreement][as defined in Section 5 of the Severance Plan]), and does not revoke such Release within any time provided in such Release to do so, (iii) due to the Grantee’s death or Disability ([as defined in the Employment Agreement][as defined in the Severance Plan]) or (iv) a result of the Grantee’s Retirement (as defined herein) (each, a “Qualified Termination”), the Grantee will not forfeit the Award LTIP Units upon such termination, and instead the following provisions of this Section 6 shall be applied to determine the number of Earned LTIP Units the Grantee shall be entitled receive:

i.the calculations provided in Section 4 hereof shall be performed as of the Valuation Date as if the Qualified Termination had not occurred;

ii.the number of Earned LTIP Units calculated pursuant to Section 4 shall be multiplied by the Partial Service Factor (with the resulting number being rounded to the nearest whole LTIP Unit or, in the

3

case of 0.5 of a unit, up to the next whole unit), and such adjusted number of LTIP Units shall be deemed the Grantee’s Earned LTIP Units for all purposes under this Agreement; and

iii.the Grantee’s Earned LTIP Units as adjusted pursuant to Section 6(a)(ii) above shall no longer be subject to forfeiture pursuant to Section 5 hereof; provided that, notwithstanding that no Continuous Service requirement pursuant to Section 5 hereof will apply to the Grantee after the effective date of a Qualified Termination, except in the case of death or Disability (as defined in the [Employment Agreement][Severance Plan]), the Grantee will not have the right to transfer his or her Earned LTIP Units or request redemption of his or her Common Units under the Partnership Agreement until such dates as of which his or her Earned LTIP Units, as adjusted pursuant to Section 4(b)(ii) above, would have become vested pursuant to Section 3(b) absent a Qualified Termination. For the avoidance of doubt, the purpose of this Section 4(b)(iii) is to prevent a situation where the Grantee who has had a Qualified Termination would be able to realize the value of his or her LTIP Units or Common Units (through transfer or redemption) before other grantees whose Continuous Service continues through the applicable vesting dates set forth in Section 5 hereof.

(b)In the event of a Qualified Termination after the Valuation Date, all Earned LTIP Units that are subject to forfeiture restrictions pursuant to Section 5 shall no longer be subject to forfeiture; provided that, notwithstanding that no Continuous Service requirement pursuant to Section 5 hereof will apply to the Grantee after the effective date of a Qualified Termination, except in the case of death or Disability, the Grantee will not have the right to transfer his or her Earned LTIP Units or request redemption of his or her Common Units under the Partnership Agreement until such dates as of which his or her Earned LTIP Units would have become vested pursuant to Section 5 absent a Qualified Termination. For the avoidance of doubt, the purpose of this Section 4(c) is to prevent a situation where a Grantee who has had a Qualified Termination would be able to realize the value of his or her Earned LTIP Units or Common Units (through transfer or redemption) before other grantees of Earned LTIP Units whose Continuous Service continues through the applicable vesting dates set forth in Section 3(b) hereof.

(c)In the event of a termination of the Grantee’s employment other than a Qualified Termination, all unearned Award LTIP Units and all Earned LTIP Units except for those that have become vested pursuant to Section 5 hereof shall, without payment of any consideration by the Company or its Affiliates, automatically and without notice terminate, be forfeited and be and become null and void, and neither the Grantee nor any of his or her successors, heirs, assigns, or personal representatives will thereafter have any further rights or interests in such LTIP Units.

7. Change in Control.

(a) If a Change in Control ([as defined in the Employment Agreement][as defined in the Severance Plan]) occurs before the first anniversary of the Effective Date, the provisions of Section 4 shall apply to determine the number of Earned LTIP Units except that (i) the number of Award LTIP Units that are earned under the Performance Goals shall be based on a shortened Performance Period (with such shortened Performance Period ending on the date of the Change in Control), and (ii) the resulting number of Earned LTIP Units shall be prorated to reflect the portion of the original Performance Period that had elapsed as of the date of such Change in Control. If a Change in Control occurs on or after the first anniversary of the Effective Date, the number of Earned LTIP Units shall be determined as provided in Section 4.

(b)[The number of Earned LTIP Units determined under Section 4, as modified by Section 7(a) for a Change in Control shall become fully vested on the date of a Change in Control[if the Grantee’s employment was terminated pursuant to a CIC Termination (as defined in the Severance Plan)].

Notwithstanding any provision herein to the contrary, in the event of any inconsistency between this

4

Section 7 and the [Employment Agreement][Severance Plan], the terms of the [Employment Agreement][Severance Plan] shall control.

8.Merger-Related Action. In contemplation of and subject to the consummation of a consolidation or merger or sale of all or substantially all of the assets of the Company in which outstanding Common Stock is exchanged for securities, cash, or other property of an unrelated corporation or business entity or in the event of a liquidation of the Company (in each case, a “Transaction”), the Board, or the board of trustees or directors of any corporation assuming the obligations of the Company (the “Acquiror”), may, in its discretion, take any one or more of the following actions, as to the outstanding Earned LTIP Units: (i) provide that such Earned LTIP Units shall be assumed or equivalent awards shall be substituted, by the acquiring or succeeding entity (or an affiliate thereof), and/or (ii) upon prior written notice to the LTIP Unitholders (as defined in the Partnership Agreement) of not less than 30 days, provide that such Earned LTIP Units shall terminate immediately prior to the consummation of the Transaction. The right to take such actions (each, a “Merger-Related Action”) shall be subject to the following limitations and qualifications:

(a)if all Earned LTIP Units awarded to the Grantee hereunder are eligible, as of the time of the Merger-Related Action, for conversion into Common Units (as defined in and in accordance with the Partnership Agreement) and the Grantee is afforded the opportunity to effect such conversion and receive, in consideration for the Common Units into which his Earned LTIP Units shall have been converted, the same kind and amount of consideration as other holders of Common Units in connection with the Transaction, then Merger-Related Action of the kind specified in (i) or (ii) above shall be permitted and available to the Company and the Acquiror;

(b)if some or all of the Earned LTIP Units awarded to the Grantee hereunder are not, as of the time of the Merger-Related Action, so eligible for conversion into Common Units (in accordance with the Partnership Agreement), and the acquiring or succeeding entity is itself, or has a subsidiary which is organized as a partnership or limited liability company (consisting of a so-called “UPREIT” or other structure substantially similar in purpose or effect to that of the Company and GMR OP), then Merger-Related Action of the kind specified in clause (i) of this Section 8 above must be taken by the Acquiror with respect to all Earned LTIP Units subject to this Award which are not so convertible at the time, whereby all such Earned LTIP Units covered by this Award shall be assumed by the acquiring or succeeding entity, or equivalent awards shall be substituted by the acquiring or succeeding entity, and the acquiring or succeeding entity shall preserve with respect to the assumed Earned LTIP Units or any securities to be substituted for such Earned LTIP Units, as far as reasonably possible under the circumstances, the distribution, special allocation, conversion and other rights set forth in the Partnership Agreement for the benefit of the LTIP Unitholders; and

(c)if some or all of the Earned LTIP Units awarded to the Grantee hereunder are not, as of the time of the Merger-Related Action, so eligible for conversion into Common Units (in accordance with the Partnership Agreement), and after exercise of reasonable commercial efforts the Company or the Acquiror is unable to treat the Earned LTIP Units in accordance with Section 8(b), then Merger-Related Action of the kind specified in clause (ii) of this Section 8 above must be taken by the Company or the Acquiror, in which case such action shall be subject to a provision that the settlement of the terminated award of Earned LTIP Units which are not convertible into Common Units requires a payment of the same kind and amount of consideration payable in connection with the Transaction to a holder of the number of Common Units into which the Earned LTIP Units to be terminated could be converted or, if greater, the consideration payable to holders of the number of  shares of common stock into which such Common Units could be exchanged (including the right to make elections as to the type of consideration) if the Transaction were of a nature that permitted a revaluation of the Grantee’s capital account balance under the terms of the Partnership Agreement, as determined by the Committee in good faith in accordance with the Plan.

9.Distributions.   Distributions shall accrue during the Performance Period on the maximum number of LTIP Units that the Grantee could earn under this Agreement and shall be paid with respect to all

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of the Earned LTIP Units at the conclusion of the Performance Period following calculation of the number of Earned LTIP Units in accordance with Section 4 and the issuance thereof to the Grantee, in cash or by the issuance of additional LTIP Units at the discretion of the Committee. The right to distributions set forth in this Section 9 shall be deemed a Dividend Equivalent Right for purposes of the Plan. The Grantee shall cease to have any Dividend Equivalent Right with respect to LTIP Units that are not earned or that cease to be eligible for vesting and are forfeited in accordance with this Agreement.

10.Incorporation of Plan. Notwithstanding anything herein to the contrary, this Award shall be subject to all of the terms and conditions of the Plan and the Partnership Agreement.

11. Covenants. The Grantee hereby covenants as follows:

(a)So long as the Grantee holds any LTIP Units, the Grantee shall disclose to GMR OP in writing such information as may be reasonably requested with respect to ownership of LTIP Units as GMR OP may deem reasonably necessary to ascertain and to establish compliance with provisions of the Code applicable to GMR OP or to comply with requirements of any other appropriate taxing authority.

(b)The Grantee hereby agrees to make an election under Section 83(b) of the Code with respect to the LTIP Units awarded hereunder, and the Company hereby consents thereto. The Grantee has delivered with this Agreement a completed, executed copy of the election form attached hereto as Annex B. The Grantee agrees to file the election (or to permit GMR OP to file such election on the Grantee’s behalf) within thirty (30) days after the Grant Date with the IRS Service Center at which such Grantee files his personal income tax returns, and to file a copy of such election with the Grantee’s U.S. federal income tax return for the taxable year in which the LTIP Units are awarded to the Grantee.

(c)The Grantee hereby agrees that it does not have the intention to dispose of the LTIP Units subject to this Award within two years of receipt of such LTIP Units. GMR OP and the Grantee hereby agree to treat the Grantee as the owner of the LTIP Units from the Grant Date. The Grantee hereby agrees to take into account the distributive share of GMR OP income, gain, loss, deduction, and credit associated with the LTIP Units in computing the Grantee’s income tax liability for the entire period during which the Grantee has the LTIP Units.

(d)The Grantee hereby recognizes that the IRS has proposed regulations under Sections 83 and 704 of the Code that may affect the proper treatment of the LTIP Units for federal tax purposes. In the event that those proposed regulations are finalized, the Grantee hereby agrees to cooperate with GMR OP in amending this Agreement and the Partnership Agreement, and to take such other action as may be required, to conform to such regulations.

(e)The Grantee hereby recognizes that changes in applicable law may affect the federal tax consequences of owning and disposing of LTIP Units.

12.Transferability. This Agreement is personal to the Grantee, is non-assignable and is not transferable in any manner, by operation of law or otherwise, other than by will or the laws of descent and distribution, without the prior written consent of the Company.

13.Amendment. The Grantee acknowledges that the Plan may be amended or canceled or terminated in accordance with Article XVIII thereof and that this Agreement may be amended or cancelled by the Committee, on behalf of GMR OP, for the purpose of satisfying changes in law or for any other lawful purpose, provided that no such action shall adversely affect the Grantee’s rights under this Agreement without the Grantee’s written consent. The provisions of Section 8 of this Agreement applicable to the termination of the LTIP Units covered by this Award in connection with a Transaction (as defined in Section 8 of this Agreement) shall apply, mutatis mutandi to amendments, discontinuance or cancellation pursuant to this

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Section 13 or the Plan.

14.No Obligation to Continue Employment. Neither the Company nor any one of its Affiliates is obligated by or as a result of the Plan or this Agreement to continue the Grantee in employment and neither the Plan nor this Agreement shall interfere in any way with the right of the Company or its Affiliates to terminate the employment of the Grantee at any time.

15.Notices. Notices hereunder shall be mailed or delivered to GMR OP at its principal place of business and shall be mailed or delivered to the Grantee at the address on file with GMR OP or, in either case, at such other address as one party may subsequently furnish to the other party in writing.

16.Governing Law. This Agreement shall be governed by, and construed in accordance with, the laws of the State of Delaware, applied without regard to conflict of law principles. The parties agree that any action or proceeding arising directly, indirectly or otherwise in connection with, out of, related to or from this Agreement, any breach hereof or any action covered hereby, shall be resolved within the State of Delaware and the parties hereto consent and submit to the jurisdiction of the federal and state courts located within Delaware.

[Signatures appear on following page.]

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GLOBAL MEDICAL REIT INC.
a Maryland real estate investment trust
Name:
Title:
Date:
GLOBAL MEDICAL REIT L.P.
a Delaware limited partnership
By:	GLOBAL MEDICAL REIT GP LLC
	its general partner
By:	GLOBAL MEDICAL REIT INC.
	its sole member
Name:
Title:
Date:

The foregoing agreement is hereby accepted and the terms and conditions thereof hereby agreed to by the Grantee.

Date:
	Grantee’s Signature
	Grantee’s name and address:
	Name:
	Address:

[Signature page to LTIP Unit Vesting Agreement]

Exhibit A

Performance Goals and Percentages

Name of Grantee:  

Number of Award LTIP Units:  

The number of Earned LTIP Units issuable to Grantee in respect of the Award LTIP Units under this Award shall be determined by dividing the total number of Award LTIP Units (as shown above) into four components as shown in the table below (each a “Component”) and multiplying the number of Award LTIP Units allocated to each Component by the applicable Performance Percentage described below based on the extent to which the Goal for each such Component is achieved.

% of Award LTIP Units	Component	Goal
30% of total Award LTIP Units	Acquisitions including (i) closed acquisitions during 2021 and (ii) acquisitions placed under definitive purchase contract on or before December 31, 2021 and closed by February 28, 2022.	Threshold: $125 million. Target: $175 million. Maximum: $235 million.
20% of total Award LTIP Units	Average quarterly Consolidated Leverage Ratio (as defined in the Company’s Amended and Restated Credit Agreement) (based on each fiscal quarter end).	Threshold: 49.5% Target: 47.0% Maximum: 45%
30% of total Award LTIP Units	Adjusted FFO (AFFO) per share for the year ended December 31, 2021, as reported by the Company in its year-end earnings announcement for the year ended December 31, 2021.	Threshold: $0.95 per share Target: $0.99 per share Maximum: $1.03 per share
20% of total Award LTIP Units	Discretionary Component	Entirely at the discretion of the Committee based on the Committee’s assessment of the Grantee’s individual performance in areas the Committee deems in its discretion to be important based on the Grantee’s job duties and position within the organization.

Performance Percentages

(i) If the Company does not achieve the Threshold Goal in a particular Component in the above table, all of the Award LTIP Units for that Component will be forfeited.

(ii) If the Company achieves the Threshold Goal in a particular Component in the above table, the number of Earned LTIP Units in that Component will be equal to 50% of the number of Award LTIP Units for that Component.

(iii) If the Company achieves the Target Goal in a particular Component in the above table, the number of Earned LTIP Units in that Component will be equal to 100% of the number of Award LTIP Units for that Component.

(iv) If the Company achieves or exceeds the Maximum Goal in a particular Component in the above table, the number of Earned LTIP Units for that Component will be equal to 150% of the number of Award LTIP Units for that Component.

For achievement of a Goal at an intermediate point between the Threshold Goal and the Target Goal or between the Target Goal and the Maximum Goal for any Component, the number of Earned LTIP Units eligible for vesting and settlement pursuant to Sections 4 and 5 for that Component will be interpolated on a straight-line basis between 50% and 100% or between 100% and 150%, respectively, of the number of Award LTIP Units allocated to that Component. Fractional LTIP Units will be rounded to the next whole LTIP Unit.

ANNEX A

FORM OF LIMITED PARTNER SIGNATURE PAGE

The Grantee desiring to become one of the within named Partners of Global Medical REIT L.P. (“GMR OP”), hereby becomes a party to the Agreement of Limited Partnership (as amended from time to time, the “Partnership Agreement”) of GMR OP, by and among Global Medical REIT GP LLC, as general partner (the “General Partner”), and the Limited Partners, effective as of the Grant Date (as specified in the LTIP Unit Vesting Agreement, dated [    ], 2021, among the Grantee, Global Medical REIT Inc. and GMR OP). The Grantee agrees to be bound by the Partnership Agreement. The Grantee also agrees that this signature page may be attached to, and hereby authorizes the General Partner to attach this signature page to, any counterpart of the Partnership Agreement.

Date: [ ], 2021
	Signature of Limited Partner
	Limited Partner’s name and address:
	Name: [ ]
	Address: [ ]

Annex A

ANNEX B

ELECTION TO INCLUDE IN GROSS INCOME IN

YEAR OF TRANSFER OF PROPERTY PURSUANT TO

SECTION 83(b) OF THE INTERNAL REVENUE CODE

The undersigned hereby makes an election pursuant to Section 83(b) of the Internal Revenue Code of 1986, as amended (the “Code”), with respect to the property described below and supplies the following information in accordance with the regulations promulgated thereunder:

1.	The name, address and taxpayer identification number of the undersigned are:
	Name:		(the “Taxpayer”)
	Address:
	Social security number:
2.	Description of property with respect to which the election is being made:
		LTIP Units (the “LTIP Units”) in Global Medical REIT L.P. (“GMR OP”).
3.	The date on which the LTIP Units were transferred is March 2, 2021. The taxable year to which this election relates is calendar year 2021.
4.	The LTIP Units are subject to the following restrictions:
	(a)    The LTIP Units are subject to a substantial risk of forfeiture and are nontransferable on the date of transfer.
	(b)    The Taxpayer’s LTIP Units vest and become transferable based on the Taxpayer’s continued employment.
5.	The fair market value at the time of transfer (determined without regard to any restrictions other than restrictions which by their terms will never lapse) of the LTIP Units with respect to which this election is being made was $0.00 per LTIP Unit.
6.	The amount paid by the Taxpayer for the LTIP Units was $0.00 per LTIP Unit.
7.	The amount to include in gross income is $0.00.
8.	A copy of this statement has been furnished to GMR OP and to its general partner, Global Medical REIT GP LLC.

[Signature Page Follows]

Signature Page to Annex B

Dated: _________, 2021
	Signature of the Taxpayer
	Taxpayer’s name and address:
	Name:
	Address:

The undersigned hereby consents to the making, by the undersigned’s spouse, of the foregoing election pursuant to Section 83(b) of the Code.

Dated: _________, 2021
	Signature of the Taxpayer’s Spouse
	Spouse’s name and address:
	Name:
	Address:

Signature Page to Annex B

EXHIBIT II

EX-10.2

Exhibit 10.2

GLOBAL MEDICAL REIT INC.

2016 EQUITY INCENTIVE PLAN

LTIP UNIT AWARD AGREEMENT

Long Term Incentive Award (Performance-Based with Time-Vesting)

Name of Grantee:
Number of LTIP Units:
Grant Date (Closing Date):	March 2, 2021
Final Acceptance Date:		,

Pursuant to the Global Medical REIT Inc. 2016 Equity Incentive Plan, as amended from time to time (the “Plan”), and the Agreement of Limited Partnership, dated as of March 14, 2016 (as amended from time to time, the “Partnership Agreement”), of Global Medical REIT L.P., a Delaware limited partnership (“GMR OP”), Global Medical REIT Inc., a Maryland corporation (the “Company”) and the sole member of Global Medical REIT GP LLC, a Delaware limited liability company, the general partner of GMR OP (the “General Partner”), and for the provision of services to or for the benefit of GMR OP in a partner capacity or in anticipation of being a partner, hereby grants, and agrees to cause GMR OP to issue, to the Grantee named above a number of LTIP Units (which constitute Other Equity Based Awards under the Plan) to be determined following the conclusion of the Performance Period (defined herein) based on (i) the number of Award LTIP Units shown above (the “Award LTIP Units”) and (ii) the Company’s Total Shareholder Return and Relative Performance during the Performance Period as provided in further detail herein (such number of LTIP Units that are earned and issued to the Grantee, the “Earned LTIP Units”) having the rights, voting powers, restrictions, limitations as to distributions, qualifications and terms and conditions of redemption and conversion set forth herein and in the Partnership Agreement (the “Award”). Upon acceptance of this LTIP Unit Award Agreement (this “Agreement”), the Grantee shall become entitled to receive the Earned LTIP Units to the extent earned in accordance with, and subject to, the terms and conditions contained herein, in the Plan and in the Partnership Agreement, the terms of which are hereby incorporated by reference. Capitalized terms used but not defined herein have the meanings assigned to such terms in the Partnership Agreement, attached hereto as ANNEX B, or the Plan, as applicable, unless a different meaning is specified herein. In addition, as used herein:

“Absolute TSR Component” means 75% of the Award LTIP Units, meaning that 75% of the Award LTIP Units shall be eligible to convert into Earned LTIP Units based on the Company’s Total Shareholder Return during the Performance Period.

“Baseline Value” for each of the Company and the Peer Companies means the dollar amount representing the average Fair Market Value over the five consecutive trading days ending on, and including, the Effective Date.

“Common Stock” means the common stock, par value $0.001 per share, of the Company.

“Common Stock Price” means, with respect to the Company and each of the Peer Companies, as of a particular date, the average of the Fair Market Value over the 15 consecutive trading days ending on, and including, such date (or, if such date is not a trading day, the most recent trading day immediately preceding such date); provided, however, that if such date is the date upon which a Transactional Change of Control occurs, the Common Stock Price of a share of common stock as of such date shall be equal to the fair value, as determined by the Committee, of the total consideration paid or payable in the transaction resulting in the Transactional Change of Control for one share of Common Stock.

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“Continuous Service” means the Grantee’s continuous service to the Company and its Affiliates, without interruption or termination, in any capacity. Continuous Service shall not be considered interrupted in the case of: (a) any approved leave of absence; (b) transfers among the Company and its Affiliates, or any successor; or (c) any change in status as long as the individual remains in the service of the Company and its Affiliates. An approved leave of absence shall include sick leave, military leave, or any other authorized personal leave.

“Effective Date” means March 2, 2021.

“Fair Market Value” means the closing price of one share of common stock of the applicable company as reported or quoted, as the case may be, on the national securities exchange or quotation system on which such company’s common stock is listed or quoted.

[“Good Reason” means: (i) a material diminution in the Grantee’s base salary; (ii) a material diminution or adverse change in the Grantee’s title, duties or authority; (iii) a material breach by the Company or GMR OP of any of its covenants or obligations under this Agreement; or (iv) the relocation of the geographic location of the Grantee’s principal place of employment by more than 50 miles from the location of the Grantee’s principal place of employment as of the Grant Date; provided that, in the case of the Grantee’s allegation of Good Reason, (A) the condition described in the foregoing clauses must have arisen without the Grantee’s consent; (B) the Grantee must provide written notice to GMR OP of such condition in accordance with the Agreement within 45 days of the initial existence of the condition; (C) the condition specified in such notice must remain uncorrected for 30 days after receipt of such notice by GMR OP; and (D) the Grantee’s date of termination must occur within 60 days after such notice is received by GMR OP.]

“Partial Service Factor” means a factor carried out to the sixth decimal to be used in calculating the number of LTIP Units earned pursuant to Section 3(d) hereof in the event of a Qualified Termination of the Grantee’s Continuous Service prior to the Valuation Date, determined by dividing (a) the number of calendar days that have elapsed since the Effective Date to and including the date of the Grantee’s Qualified Termination by (b) the number of calendar days from the Effective Date to and including the Valuation Date.

“Peer Companies” means the companies that comprise SNL Healthcare REIT Index.

“Performance Period” means the period beginning on the Effective Date and ending on the Valuation Date.

“Relative Performance” means the Company’s Total Shareholder Return relative to the Total Shareholder Return of the Peer Companies. Relative Performance will be determined by (a) ranking the Peer Companies from highest to lowest according to their respective Total Shareholder Return; (b) assigning each Peer Company a market capitalization percentage based upon each such Peer Company’s share of equity market capitalization as compared to the total market capitalization of all of the Peer Companies as of the Valuation Date; and then (c) constructing a percentile pool whereby each Peer Company is assigned a percentile range based on its Total Shareholder Return and market capitalization percentage. After this ranking, the Company’s Total Shareholder Return shall be compared to that of the Peer Companies and assigned a percentile rank based on the foregoing methodology.

“Relative TSR Component” means 25% of the Award LTIP Units, meaning that 25% of the Award LTIP Units shall be eligible to convert into Earned LTIP Units based on the Company’s Relative Performance during the Performance Period.

“Retirement” means retirement from employment with the Company and its Affiliates, but only to the extent the Grantee is at least 60 years old at the time of such retirement and has been employed with the Company or an Affiliate for at least 10 years prior to the date of such retirement.

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“Total Shareholder Return” means, for each of the Company and the Peer Companies, with respect to the Performance Period, the total return (expressed as a percentage) that would have been realized by a shareholder who (a) bought one share of common stock of such company at the Baseline Value on the Effective Date, (b) reinvested each dividend and other distribution declared during the Performance Period with respect to such share (and any other shares, or fractions thereof, previously received upon reinvestment of dividends or other distributions or on account of stock dividends), without deduction for any taxes with respect to such dividends or other distributions or any charges in connection with such reinvestment, in additional common stock at a price per share equal to (i) the Fair Market Value on the trading day immediately preceding the ex-dividend date for such dividend or other distribution less (ii) the amount of such dividend or other distribution, and (c) sold such shares on the Valuation Date at the Common Stock Price on the Valuation Date, without deduction for any taxes with respect to any gain on such sale or any charges in connection with such sale. Appropriate adjustments to the Total Shareholder Return shall be made to take into account all stock dividends, stock splits, reverse stock splits and the other events that occur during the Performance Period.

“Transactional Change of Control” means a Change of Control resulting from any person or group making a tender offer for shares of Common Stock, a merger or consolidation where the Company is not the acquirer or surviving entity or consisting of a sale, lease, exchange or other transfer to an unrelated party of all or substantially all of the assets of the Company.

“Valuation Date” means the earlier of (a) the calendar day immediately preceding the third anniversary of the Effective Date, or (b) the date upon which a Change in Control shall occur.

1.Acceptance of Agreement. The Grantee shall have no rights under this Agreement unless he or she shall have accepted this Agreement prior to the close of business on the Final Acceptance Date specified above by signing and delivering to GMR OP a copy of this Agreement. Furthermore, unless the Grantee is already a Limited Partner of GMR OP as of the Final Acceptance Date shown above, the Grantee shall not be entitled to receive the Earned LTIP Units unless the Grantee signs, as a Limited Partner, and delivers to GMR OP on or prior to the Final Acceptance Date a counterpart signature page to the Partnership Agreement attached hereto as ANNEX C. Thereupon, the Grantee shall have all the rights of a Limited Partner with respect to the number of LTIP Units specified above, as set forth in the Partnership Agreement, subject, however, to the restrictions and conditions specified herein. Upon receipt of the Earned LTIP Units to which the Grantee becomes entitled hereunder, the Partnership Agreement shall be amended to reflect the issuance to the Grantee of such Earned LTIP Units, effective as of the Valuation Date, and the Grantee shall have all of the rights of a Limited Partner with respect to the number of Earned LTIP Units issued to the Grantee, as set forth in the Partnership Agreement, subject, however, to the restrictions and conditions specified herein.

2.Form of Settlement. In lieu of issuing the Earned LTIP Units, the Committee shall have the sole discretion to pay the Grantee a cash amount equal to (i) the number of Earned LTIP Units, multiplied by (ii) the Fair Market Value of each Earned LTIP Unit as of the Valuation Date (the “Cash Payment Alternative”), which Cash Payment Alternative shall be in full satisfaction of all claims of the Grantee hereunder. Notwithstanding anything to the contrary set forth herein, upon the Company’s receipt of stockholder approval to increase the shares available for issuance under the Plan, the Cash Payment Alternative shall be automatically terminated without further action by any of the parties hereto, and the Grantee will only receive the Earned LTIP Units in accordance with the terms and conditions of this Agreement.

3.Restrictions and Conditions.

(a)          The records of GMR OP evidencing the Award LTIP Units granted hereby and the Earned LTIP Units issued pursuant hereto shall bear an appropriate legend, as determined by GMR OP in its sole discretion, to the effect that such LTIP Units are subject to restrictions as set forth herein and in the Partnership Agreement.

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(b)          Award LTIP Units may not be sold, transferred, pledged, exchanged, hypothecated or otherwise disposed of by the Grantee in any respect. Earned LTIP Units may not be sold, transferred, pledged, exchanged, hypothecated or otherwise disposed of by the Grantee prior to vesting as contemplated in Section 4 and Section 5 of this Agreement, and then only to the extent permitted under the Partnership Agreement.

(c)          Subject to the provisions of Section 5 below, any LTIP Units (and the proportionate amount of the Grantee’s Capital Account balance attributable to such LTIP Units) subject to this Award that have not been earned and become vested on or before the date that the Grantee’s employment with the Company and its Affiliates terminates shall be forfeited as of the date that such employment terminates.

4. Terms of LTIP Units.

(a)          Subject to Section 5, the exact number of Earned LTIP Units that Grantee shall be entitled to receive under this Agreement shall be determined following the conclusion of the Performance Period based on the Company’s Total Shareholder Return and Relative Performance during the Performance Period as provided herein. The Grantee shall not be entitled to receive any LTIP Units hereunder except to the extent they are earned upon the end of the Performance Period in accordance with the terms and conditions hereof. Earned LTIP Units shall be issued as soon as reasonably practical following the end of the Performance Period. In addition to the performance vesting requirements specified herein, Earned LTIP Units shall be subject to service vesting as provided in Section 4(e). Award LTIP Units that are not earned in accordance with this Agreement shall be forfeited and cancelled and unvested Earned LTIP Units will be subject to forfeiture prior to vesting as set forth in this Section 4 and in Section 5.

(b)          The number of LTIP Units earned under the Absolute TSR Component of the Award will be determined pursuant to Section 4(d) as soon as reasonably practicable following the Valuation Date by multiplying the number of Award LTIP Units by 75% and then multiplying such product by the applicable Percentage of Absolute TSR Component Earned based on the Company’s Total Shareholder Return as shown below:

Total Shareholder Return	Percentage of AbsoluteTSR Component Earned
Less than 21%	0%
21%	50%
27%	100%
33% or greater	200%

The Absolute TSR Component of the Award will be forfeited in its entirety if the Total Shareholder Return is less than 21%. If the Total Shareholder Return is between 21% and 27%, or between 27% and 33%, the percentage of the Absolute TSR Component earned will be determined using linear interpolation as between those tiers, respectively.

(c)          The number of Award LTIP Units earned under the Relative TSR Component of the Award will be determined pursuant to Section 4(d) as soon as reasonably practicable following the Valuation Date by multiplying the number of Award LTIP Units by 25% and then multiplying such product by the applicable Percentage of Relative TSR Component Earned based on the Company’s Relative Performance as shown below:

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Relative Performance	Percentage of RelativeTSR Component Earned
TSR below the 35th percentile of Peer Companies	0%
TSR equal to the 35th percentile of Peer Companies	50%
TSR equal to the 55th percentile of Peer Companies	100%
TSR equal to or greater than the 75th percentile of Peer Companies	200%

The Relative TSR Component of the Award will be forfeited in its entirety if the Relative Performance is below the 35th percentile of Peer Companies. If the Relative Performance is between the 35th percentile and 55th percentile of Peer Companies, or between the 55th percentile and 75th percentile of Peer Companies, the percentage of the Relative TSR Component earned will be determined using linear interpolation as between those tiers, respectively.

(d)          As soon as practicable following the Valuation Date, the Compensation Committee of the Board of Directors of the Company (the “Board”) (or such other Committee(s) as may be appointed or designated by the Board to administer the Plan) (the “Committee”) shall determine the number of LTIP Units earned by the Grantee under both the Absolute TSR Component and the Relative TSR Component. Upon the performance of the calculations set forth in this Section 4(d): (A) the Company shall cause GMR OP to issue to the Grantee, as of the Valuation Date, a number of LTIP Units equal to the number of Earned LTIP Units. Any Award LTIP Units that are not earned in accordance with this Section 4 hereto shall not be deemed granted and shall not be issued, and the Grantee shall have no right in or to any such unearned and unissued LTIP Units after it is determined that they were not earned.

(e)          LTIP Units that have been earned based on performance as provided in Section 4(c), shall, subject to Section 5 hereof, be subject to forfeiture restrictions that will lapse in the following amounts and on the following vesting dates subject to the Continuous Service of the Grantee through and on the applicable vesting date:

(i)          50% of the Earned LTIP Units shall become vested, and shall cease to be subject to forfeiture, as of the Valuation Date; and

(ii)         50% of the Earned LTIP Units shall become vested, and shall cease to be subject to forfeiture, on the first anniversary of the Valuation Date.

(f)           Any Earned LTIP Units that do not become vested pursuant to Section 4(e) or Section 5 hereof shall, without payment of any consideration by the Company or its Affiliates, automatically and without notice be forfeited and be and become null and void, and neither the Grantee nor any of his or her successors, heirs, assigns, or personal representatives will thereafter have any further rights or interests in such unvested Earned LTIP Units.

5. Termination of Employment.

(a)If the Grantee’s employment with the Company and its Affiliates ends on account of the Grantee’s termination of employment by the Company or its Affiliates: (i) without Cause [(as defined in that certain Employment Agreement by and between Inter-American Management LLC (“IAM”) and [ ], dated as of [ ] (the “Employment Agreement”)][(as defined in the Inter-American Management LLC Severance

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Plan and Summary Plan Description, dated July 9, 2020 (the “Severance Plan”)] (ii) by the Grantee for Good Reason ([as defined in the Employment Agreement][as defined herein]); provided that the Grantee executes the Release ([as defined in Section 7(f)(i) of the Employment Agreement][as defined in Section 5 of the Severance Plan]) on or before the Release Expiration Date ([as defined in Section 7(f)(v) of the Employment Agreement][as defined in Section 5 of the Severance Plan]), and does not revoke such Release within any time provided in such Release to do so, (iii) due to the Grantee’s death or Disability (as defined in [the Employment Agreement][the Severance Plan] or (iv) a result of the Grantee’s Retirement (as defined herein) (each, a “Qualified Termination”), the Grantee will not forfeit the Award LTIP Units upon such termination, and instead the following provisions of this Section 5 shall be applied to determine the number of Earned LTIP Units the Grantee shall be entitled receive:

i.the calculations provided in Section 4(d) hereof shall be performed as of the Valuation Date as if the Qualified Termination had not occurred;

ii. the number of Earned LTIP Units calculated pursuant to Section 4(d) shall be multiplied by the Partial Service Factor (with the resulting number being rounded to the nearest whole LTIP Unit or, in the case of 0.5 of a unit, up to the next whole unit), and such adjusted number of LTIP Units shall be deemed the Grantee’s Earned LTIP Units for all purposes under this Agreement; and

iii.the Grantee’s Earned LTIP Units as adjusted pursuant to Section 5(b)ii above shall no longer be subject to forfeiture pursuant to Section 4(e) hereof; provided that, notwithstanding that no Continuous Service requirement pursuant to Section 4(e) hereof will apply to the Grantee after the effective date of a Qualified Termination, except in the case of death or Disability, the Grantee will not have the right to transfer his or her Earned LTIP Units or request redemption of his or her Common Units under the Partnership Agreement until such dates as of which his or her Earned LTIP Units, as adjusted pursuant to Section 5(b)ii above, would have become vested pursuant to Section 4(e) absent a Qualified Termination. For the avoidance of doubt, the purpose of this Section 5(b)iii is to prevent a situation where the Grantee who has had a Qualified Termination would be able to realize the value of his or her LTIP Units or Common Units (through transfer or redemption) before other grantees whose Continuous Service continues through the applicable vesting dates set forth in Section 4(e) hereof.

(b)In the event of a Qualified Termination after the Valuation Date, all Earned LTIP Units that are subject to forfeiture restrictions pursuant to Section 4(e) shall no longer be subject to forfeiture; provided that, notwithstanding that no Continuous Service requirement pursuant to Section 4(e) hereof will apply to the Grantee after the effective date of a Qualified Termination, except in the case of death or Disability, the Grantee will not have the right to transfer his or her Earned LTIP Units or request redemption of his or her Common Units under the Partnership Agreement until such dates as of which his or her Earned LTIP Units would have become vested pursuant to Section 4(e) absent a Qualified Termination. For the avoidance of doubt, the purpose of this Section 4(b) is to prevent a situation where a Grantee who has had a Qualified Termination would be able to realize the value of his or her Earned LTIP Units or Common Units (through transfer or redemption) before other grantees of Earned LTIP Units whose Continuous Service continues through the applicable vesting dates set forth in Section 4(e) hereof.

(c)In the event of a termination of the Grantee’s employment other than a Qualified Termination, all unearned Award LTIP Units and all Earned LTIP Units except for those that have become vested pursuant to Section 4(e) hereof shall, without payment of any consideration by the Company or its Affiliates, automatically and without notice terminate, be forfeited and be and become null and void, and neither the Grantee nor any of his or her successors, heirs, assigns, or personal representatives will thereafter have any further rights or interests in such LTIP Units.

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6. Change in Control.

(a)If a Change in Control ([as defined in the Employment Agreement][as defined in the Severance Plan]) occurs before the third anniversary of the Effective Date, the provisions of Section 4 shall apply to determine the number of Earned LTIP Units except that (i) the number of Award LTIP Units that are earned under the Absolute TSR Component or the Relative TSR Component, as applicable, shall be based on a shortened Performance Period (with such shortened Performance Period ending on the date of the Change in Control), and (ii) the resulting number of Earned LTIP Units shall be prorated to reflect the portion of the original Performance Period that had elapsed as of the date of such Change in Control. If a Change in Control occurs on or after the third anniversary of the Effective Date, the number of Earned LTIP Units shall be determined as provided in Section 4.

(b) The number of Earned LTIP Units determined under Section 4, as modified by Section 6(a) for a Change in Control that occurs before the third anniversary of the Effective Date, shall remain subject to vesting tied to Continuous Service as provided in Section 4(e), except that the Grantee shall become fully vested in the Earned LTIP Units if he or she is terminated in a Qualified Termination.

(c)If the Change in Control occurs after the third anniversary of the Effective Date, and the Grantee is terminated in a Qualified Termination, the Grantee shall become fully vested in any unvested Earned LTIP Units.

(d)Notwithstanding any provision herein to the contrary, in the event of any inconsistency between this Section 6 and the [Employment Agreement][Severance Plan], the terms of the [Employment Agreement][Severance Plan] shall control.

7.Merger-Related Action. In contemplation of and subject to the consummation of a consolidation or merger or sale of all or substantially all of the assets of the Company in which outstanding Common Stock is exchanged for securities, cash, or other property of an unrelated corporation or business entity or in the event of a liquidation of the Company (in each case, a “Transaction”), the Board, or the board of trustees or directors of any corporation assuming the obligations of the Company (the “Acquiror”), may, in its discretion, take any one or more of the following actions, as to the outstanding Earned LTIP Units: (i) provide that such Earned LTIP Units shall be assumed or equivalent awards shall be substituted, by the acquiring or succeeding entity (or an affiliate thereof), and/or (ii) upon prior written notice to the LTIP Unitholders (as defined in the Partnership Agreement) of not less than 30 days, provide that such Earned LTIP Units shall terminate immediately prior to the consummation of the Transaction. The right to take such actions (each, a “Merger-Related Action”) shall be subject to the following limitations and qualifications:

(a)if all Earned LTIP Units awarded to the Grantee hereunder are eligible, as of the time of the Merger-Related Action, for conversion into Common Units (as defined in and in accordance with the Partnership Agreement) and the Grantee is afforded the opportunity to effect such conversion and receive, in consideration for the Common Units into which his Earned LTIP Units shall have been converted, the same kind and amount of consideration as other holders of Common Units in connection with the Transaction, then Merger-Related Action of the kind specified in (i) or (ii) above shall be permitted and available to the Company and the Acquiror;

(b)if some or all of the Earned LTIP Units awarded to the Grantee hereunder are not, as of the time of the Merger-Related Action, so eligible for conversion into Common Units (in accordance with the Partnership Agreement), and the acquiring or succeeding entity is itself, or has a subsidiary which is organized as a partnership or limited liability company (consisting of a so-called “UPREIT” or other structure substantially similar in purpose or effect to that of the Company and GMR OP), then Merger-Related Action of the kind specified in clause (i) of this Section 7 above must be taken by the Acquiror with respect to all Earned LTIP Units subject to this Award which are not so convertible at the time, whereby all such Earned LTIP

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Units covered by this Award shall be assumed by the acquiring or succeeding entity, or equivalent awards shall be substituted by the acquiring or succeeding entity, and the acquiring or succeeding entity shall preserve with respect to the assumed Earned LTIP Units or any securities to be substituted for such Earned LTIP Units, as far as reasonably possible under the circumstances, the distribution, special allocation, conversion and other rights set forth in the Partnership Agreement for the benefit of the LTIP Unitholders; and

(c)if some or all of the Earned LTIP Units awarded to the Grantee hereunder are not, as of the time of the Merger-Related Action, so eligible for conversion into Common Units (in accordance with the Partnership Agreement), and after exercise of reasonable commercial efforts the Company or the Acquiror is unable to treat the Earned LTIP Units in accordance with Section 7(b), then Merger-Related Action of the kind specified in clause (ii) of this Section 7 above must be taken by the Company or the Acquiror, in which case such action shall be subject to a provision that the settlement of the terminated award of Earned LTIP Units which are not convertible into Common

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Units requires a payment of the same kind and amount of consideration payable in connection with the Transaction to a holder of the number of Common Units into which the Earned LTIP Units to be terminated could be converted or, if greater, the consideration payable to holders of the number of  shares of common stock into which such Common Units could be exchanged (including the right to make elections as to the type of consideration) if the Transaction were of a nature that permitted a revaluation of the Grantee’s capital account balance under the terms of the Partnership Agreement, as determined by the Committee in good faith in accordance with the Plan.

8.  Distributions. Distributions shall accrue during the Performance Period on the maximum number LTIP Units that the Grantee could earn under this Agreement and shall be paid with respect to all of the Earned LTIP Units at the conclusion of the Performance Period following calculation of the number of Earned LTIP Units in accordance with Section 4 and upon the issuance thereof to the Grantee, in cash or by the issuance of additional LTIP Units at the discretion of the Committee. The right to distributions set forth in this Section 8 shall be deemed a Dividend Equivalent Right for purposes of the Plan. The Grantee shall cease to have any Dividend Equivalent Right with respect to LTIP Units that are not earned or that cease to be eligible for vesting and are forfeited in accordance with this Agreement.

9.  Incorporation of Plan and Partnership Agreement. Notwithstanding anything herein to the contrary, this Award shall be subject to all of the terms and conditions of the Plan and the Partnership Agreement.

10.Covenants. The Grantee hereby covenants as follows:

(a)So long as the Grantee holds any LTIP Units, the Grantee shall disclose to GMR OP in writing such information as may be reasonably requested with respect to ownership of LTIP Units as GMR OP may deem reasonably necessary to ascertain and to establish compliance with provisions of the Code applicable to GMR OP or to comply with requirements of any other appropriate taxing authority.

(b)The Grantee hereby agrees to make an election under Section 83(b) of the Code with respect to the maximum number of LTIP Units that the Grantee may earn hereunder, and the Company hereby consents thereto. The Grantee has delivered with this Agreement a completed, executed copy of the election form attached hereto as ANNEX A. The Grantee agrees to file the election (or to permit GMR OP to file such election on the Grantee’s behalf) within thirty (30) days after the Final Acceptance Date with the IRS Service Center at which such Grantee files his personal income tax returns, and to file a copy of such election with the Grantee’s U.S. federal income tax return for the taxable year in which the LTIP Units are awarded to the Grantee.

(c)The Grantee hereby agrees that it does not have the intention to dispose of the LTIP Units subject to this Award within two years of receipt of such LTIP Units. GMR OP and the Grantee hereby agree to treat the Grantee as the owner of the LTIP Units, subject to the terms and conditions hereof, from the Final Acceptance Date. The Grantee hereby agrees to take into account the distributive share of GMR OP income, gain, loss, deduction, and credit associated with the LTIP Units in computing the Grantee’s income tax liability for the entire period during which the Grantee has the LTIP Units.

(d) The Grantee hereby recognizes that the IRS has proposed regulations under Sections 83 and 704 of the Code that may affect the proper treatment of the LTIP Units for federal tax purposes. In

9

the event that those proposed regulations are finalized, the Grantee hereby agrees to cooperate with GMR OP in amending this Agreement and the Partnership Agreement, and to take such other action as may be required, to conform to such regulations.

(e)The Grantee hereby recognizes that changes in applicable law may affect the federal tax consequences of owning and disposing of LTIP Units.

11.Transferability. This Agreement is personal to the Grantee, is non-assignable and is not transferable in any manner, by operation of law or otherwise, other than by will or the laws of descent and distribution, without the prior written consent of the Company.

12.Amendment. The Grantee acknowledges that the Plan may be amended or canceled or terminated in accordance with Article XVIII thereof and that this Agreement may be amended or cancelled by the Committee, on behalf of GMR OP, for the purpose of satisfying changes in law or for any other lawful purpose, provided that no such action shall adversely affect the Grantee’s rights under this Agreement without the Grantee’s written consent. The provisions of Section 6 of this Agreement applicable to the termination of the LTIP Units covered by this Award in connection with a Change in Control shall apply, mutatis mutandi to amendments, discontinuance or cancellation pursuant to this Section 12 or the Plan.

13.No Obligation to Continue Employment. Neither the Company nor any one of its Affiliates is obligated by or as a result of the Plan or this Agreement to continue the Grantee in employment and neither the Plan nor this Agreement shall interfere in any way with the right of the Company or its Affiliates to terminate the employment of the Grantee at any time.

14.Notices. Notices hereunder shall be mailed or delivered to GMR OP at its principal place of business and shall be mailed or delivered to the Grantee at the address on file with GMR OP or, in either case, at such other address as one party may subsequently furnish to the other party in writing.

15.Governing Law. This Agreement shall be governed by, and construed in accordance with, the laws of the State of Delaware, applied without regard to conflict of law principles. The parties agree that any action or proceeding arising directly, indirectly or otherwise in connection with, out of, related to or from this Agreement, any breach hereof or any action covered hereby, shall be resolved within the State of Delaware and the parties hereto consent and submit to the jurisdiction of the federal and state courts located within Delaware.

[Signatures appear on following page.]

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GLOBAL MEDICAL REIT INC.
a Maryland corporation
Name:
Title:
Date:
GLOBAL MEDICAL REIT L.P.
a Delaware limited partnership
By:	GLOBAL MEDICAL REIT GP LLC
	its general partner
By:	GLOBAL MEDICAL REIT INC.
	its sole member
Name:
Title:
Date:

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The foregoing agreement is hereby accepted and the terms and conditions thereof hereby agreed to by the Grantee.

Date: March __, 2021
		Grantee’s Signature
		Grantee’s name and address:
	Name:
		Address:

[Signature page to LTIP Unit Vesting Agreement]

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ANNEX A

ELECTION TO INCLUDE IN GROSS INCOME IN YEAR OF

TRANSFER OF PROPERTY PURSUANT TO SECTION 83(b)

OF THE INTERNAL REVENUE CODE

The undersigned hereby makes an election pursuant to Section 83(b) of the Internal Revenue Code of 1986, as amended (the “Code”), with respect to the property described below and supplies the following information in accordance with the regulations promulgated thereunder:

1.	The name, address and taxpayer identification number of the undersigned are:
	Name:  _______________________________________ (the “Taxpayer”)
	Address:		______________________________________
			______________________________________
			______________________________________
	Social security number:  ___________________________
2.	Description of property with respect to which the election is being made:
	LTIP Units (the “LTIP Units”) in Global Medical REIT L.P. (“GMR OP”).
3.	The date on which the LTIP Units were transferred is March 2, 2021.  The taxable year to which this election relates is calendar year 2021.
4.	The LTIP Units are subject to the following restrictions:
	(a)	The LTIP Units are subject to a substantial risk of forfeiture and are nontransferable on the date of transfer.
	(b)	The Taxpayer’s LTIP Units vest and become transferable based on the Taxpayer’s continued employment.
5.	The fair market value at the time of transfer (determined without regard to any restrictions other than restrictions which by their terms will never lapse) of the LTIP Units with respect to which this election is being made was $0.00 per LTIP Unit.
6.	The amount paid by the Taxpayer for the LTIP Units was $0.00 per LTIP Unit.
7.	The amount to include in gross income is $0.00.
8.	A copy of this statement has been furnished to GMR OP and to its general partner, Global Medical REIT GP LLC.

[Signature Page Follows]

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Dated: _________, 2021
	Signature of the Taxpayer
	Taxpayer’s name and address:
	Name:
	Address:

The undersigned hereby consents to the making, by the undersigned’s spouse, of the foregoing election pursuant to Section 83(b) of the Code.

Dated: _________, 2021
	Signature of the Taxpayer’s Spouse
	Spouse’s name and address:
	Name:
	Address:

Signature Page to Annex A

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ANNEX B

Partnership Agreement

(Attached)

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ANNEX C

FORM OF LIMITED PARTNER SIGNATURE PAGE

The Grantee desiring to become one of the within named Partners of Global Medical REIT L.P. (“GMR OP”), hereby becomes a party to the Agreement of Limited Partnership (as amended from time to time, the “Partnership Agreement”) of GMR OP, by and among Global Medical REIT GP LLC, as general partner (the “General Partner”), and the Limited Partners, effective as of the Grant Date (as specified in the LTIP Unit Vesting Agreement, dated ____________, ____, among the Grantee, Global Medical REIT Inc. and GMR OP). The Grantee agrees to be bound by the Partnership Agreement. The Grantee also agrees that this signature page may be attached to, and hereby authorizes the General Partner to attach this signature page to, any counterpart of the Partnership Agreement.

Date:
	Signature of Limited Partner
	Limited Partner’s name and address:
	Name:
	Address:

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EX-10.3

Exhibit 10.3

GLOBAL MEDICAL REIT INC.

2016 EQUITY INCENTIVE PLAN

LTIP UNIT AWARD AGREEMENT

Long-Term Incentive Award (Time-Vesting)

Name of Grantee:
Number of LTIP Units:
Grant Date (Closing Date):	March 2, 2021
Final Acceptance Date:		,

Pursuant to the Global Medical REIT Inc. 2016 Equity Incentive Plan, as amended from time to time (the “Plan”), and the Agreement of Limited Partnership, dated as of March 14, 2016 (as amended from time to time, the “Partnership Agreement”), of Global Medical REIT L.P., a Delaware limited partnership (“GMR OP”), Global Medical REIT Inc., a Maryland corporation (the “Company”) and the sole member of Global Medical REIT GP LLC, a Delaware limited liability company, the general partner of GMR OP (the “General Partner”), and for the provision of services to or for the benefit of GMR OP in a partner capacity or in anticipation of being a partner, hereby grants to the Grantee named above an Other Equity-Based Award (as defined in the Plan) in the form of, and by causing GMR OP to issue to the Grantee named above, the number of LTIP Units specified above having the rights, voting powers, restrictions, limitations as to distributions, qualifications and terms and conditions of redemption and conversion set forth herein and in the Partnership Agreement (the “Award”). Upon acceptance of this LTIP Unit Vesting Agreement (this “Agreement”), the Grantee shall receive, subject to Section 1 and 2 below, the number of LTIP Units specified above, subject to the restrictions and conditions set forth herein and in the Partnership Agreement. Capitalized terms used but not defined herein have the meanings assigned to such terms in the Partnership Agreement, attached hereto as ANNEX A, or the Plan, as applicable, unless a different meaning is specified herein.

1.Acceptance of Agreement. The Grantee shall have no rights with respect to this Agreement unless he or she shall have accepted this Agreement prior to the close of business on the Final Acceptance Date specified above by (a) signing and delivering to GMR OP, a copy of this Agreement and (b) unless the Grantee is already a Limited Partner, signing, as a Limited Partner, and delivering to GMR OP a counterpart signature page to the Partnership Agreement. Upon acceptance of this Agreement by the Grantee, subject to Section 2 below, the Partnership Agreement shall be amended to reflect the issuance to the Grantee of the LTIP Units so accepted. Thereupon, the Grantee shall have all the rights of a Limited Partner with respect to the number of LTIP Units specified above, as set forth in the Partnership Agreement, subject, however, to the restrictions and conditions specified in Section 3 below.

2.Form of Settlement. The LTIP Units subject to this Award will not be issued to the Grantee until the Company receives stockholder approval to increase the shares available for issuance under the Plan (the “Stockholder Approval”). Notwithstanding anything to the contrary set forth herein, if the Company does not receive the Stockholder Approval by the Vesting Date, the Award will represent the right of the Grantee to receive, once the Award vests pursuant to Section 4 or 5 of this Agreement, a cash amount equal to (i) the number of LTIP Units subject to this Award, multiplied by (ii) the Fair Market Value of each LTIP Unit as of the Vesting Date (the “Cash Payment Alternative”), which Cash Payment Alternative shall be in full satisfaction of all claims of the Grantee hereunder. Further notwithstanding anything to the contrary set forth herein, upon the Company’s receipt of the Stockholder Approval, the Cash Payment Alternative shall be automatically terminated without further action by any of the parties hereto, and the LTIP Units shall be subject to the remaining terms and conditions of this Agreement.

3.Restrictions and Conditions.

a.The records of GMR OP evidencing the LTIP Units granted herein shall bear an appropriate legend, as determined by GMR OP in its sole discretion, to the effect that such LTIP Units are subject to restrictions as set forth herein and in the Partnership Agreement.

b.LTIP Units granted herein may not be sold, transferred, pledged, exchanged, hypothecated or otherwise disposed of by the Grantee prior to vesting as contemplated in Section 4 or 5 of this Agreement.

c.Subject to the provisions of Section 5 below, any LTIP Units (and the proportionate amount of the Grantee’s Capital Account balance attributable to such LTIP Units) subject to this Award that have not become vested on or before the date that the Grantee’s employment with the Company and its Affiliates terminates shall be forfeited as of the date that such employment terminates.

4.Vesting of LTIP Units. The restrictions and conditions in Sections 3(b) and 3(c) of this Agreement shall lapse with respect to the LTIP Units granted herein in the amounts and on the Vesting Date specified below (the “Vesting Date”):

Portion of Award to Vest	Vesting Date
100%	Third Anniversary of the Grant Date
Total: 100% of Award

5.Acceleration of Vesting in Special Circumstances: All LTIP Units granted herein shall automatically become fully vested on the date specified below if the Grantee remains in the continuous employ of the Company or an Affiliate from the Grant Date until such date:

a.the Grantee’s employment with the Company and its Affiliates ends on account of the Grantee’s termination of employment by the Company and its Affiliates: (i) without Cause [(as defined in that certain Employment Agreement by and between Inter-American Management LLC and [ ], dated as of [ ] (the “Employment Agreement”)][(as defined in the Inter-American Management LLC Severance Plan and Summary Plan Description, dated July 9, 2020 (the “Severance Plan”)] (ii) by the Grantee for Good Reason ([as defined in the Employment Agreement][as defined herein]); provided that the Grantee executes the Release ([as defined in Section 7(f)(i) of the Employment Agreement][as defined in Section 5 of the Severance Plan]) on or before the Release Expiration Date ([as defined in Section 7(f)(v) of the Employment Agreement][as defined in Section 5 of the Severance Plan]), and does not revoke such Release within any time provided in such Release to do so, (iii) due to the Grantee’s death or Disability (as defined in [the Employment Agreement][Severance Plan]) or (iv) a result of the Grantee’s Retirement (as defined herein) (each, a “Qualified Termination”)

b.In the event of a termination of the Grantee’s employment other than a Qualified Termination, all LTIP Units except for those that have previously become vested pursuant to Section 4 or 5 hereof shall, without payment of any consideration by the Partnership, automatically and without notice terminate, be forfeited and be and become null and void, and neither the Grantee nor any of his or her successors, heirs, assigns, or personal representatives will thereafter have any further rights or interests in such LTIP Units.

c.[“Good Reason” means: (i) a material diminution in the Grantee’s base salary; (ii) a

material diminution or adverse change in the Grantee’s title, duties or authority; (iii) a material breach by the Company or GMR OP of any of its covenants or obligations under this Agreement; or (iv) the relocation of the geographic location of the Grantee’s principal place of employment by more than 50 miles from the location of the Grantee’s principal place of employment as of the Grant Date; provided that, in the case of the Grantee’s allegation of Good Reason, (A) the condition described in the foregoing clauses must have arisen without the Grantee’s consent; (B) the Grantee must provide written notice to GMR OP of such condition in accordance with the Agreement within 45 days of the initial existence of the condition; (C) the condition specified in such notice must remain uncorrected for 30 days after receipt of such notice by GMR OP; and (D) the Grantee’s date of termination must occur within 60 days after such notice is received by GMR OP.]

d.“Retirement” means: retirement from employment with the Company and its Affiliates, but only to the extent the Grantee is at least 60 years old at the time of such retirement and has been employed with the Company or an Affiliate for at least 10 years prior to the date of such retirement.

Notwithstanding any provision herein to the contrary, in the event of any inconsistency between this Section 5 and the Employment Agreement, the terms of the Employment Agreement shall control.

6.Merger-Related Action. In contemplation of and subject to the consummation of a consolidation or merger or sale of all or substantially all of the assets of the Company in which outstanding Common Stock is exchanged for securities, cash, or other property of an unrelated corporation or business entity or in the event of a liquidation of the Company (in each case, a “Transaction”), the Board, or the board of trustees or directors of any corporation assuming the obligations of the Company (the “Acquiror”), may, in its discretion, take any one or more of the following actions, as to the outstanding LTIP Units subject to this Award: (i) provide that such LTIP Units shall be assumed or equivalent awards shall be substituted, by the acquiring or succeeding entity (or an affiliate thereof), and/or (ii) upon prior written notice to the LTIP Unitholders (as defined in the Partnership Agreement) of not less than 30 days, provide that such LTIP Units shall terminate immediately prior to the consummation of the Transaction. The right to take such actions (each, a “Merger-Related Action”) shall be subject to the following limitations and qualifications:

a. if all LTIP Units awarded to the Grantee hereunder are eligible, as of the time of the Merger-Related Action, for conversion into Common Units (as defined in and in accordance with the Partnership Agreement) and the Grantee is afforded the opportunity to effect such conversion and receive, in consideration for the Common Units into which his LTIP Units shall have been converted, the same kind and amount of consideration as other holders of Common Units in connection with the Transaction, then Merger-Related Action of the kind specified in (i) or (ii) above shall be permitted and available to the Company and the Acquiror;

b.if some or all of the LTIP Units awarded to the Grantee hereunder are not, as of the time of the Merger-Related Action, so eligible for conversion into Common Units (in accordance with the Partnership Agreement), and the acquiring or succeeding entity is itself, or has a subsidiary which is organized as a partnership or limited liability company (consisting of a so-called “UPREIT” or other structure substantially similar in purpose or effect to that of the Company and GMR OP), then Merger-Related Action of the kind specified in clause (i) of this Section 6 above must be taken by the Acquiror with respect to all LTIP Units subject to this Award which are not so convertible at the time, whereby all such LTIP Units covered by this Award shall be assumed by the acquiring or succeeding entity, or equivalent awards shall be substituted by the acquiring or succeeding entity, and the acquiring or succeeding entity shall preserve with respect to the assumed LTIP Units or any securities to be substituted for such LTIP Units, as far as reasonably possible under the circumstances, the distribution, special allocation, conversion and other rights set forth in the Partnership Agreement for the benefit of the LTIP

Unitholders; and

c.if some or all of the LTIP Units awarded to the Grantee hereunder are not, as of the time of the Merger-Related Action, so eligible for conversion into Common Units (in accordance with the Partnership Agreement), and after exercise of reasonable commercial efforts the Company or the Acquiror is unable to treat the LTIP Units in accordance with Section 6(b), then Merger-Related Action of the kind specified in clause (ii) of this Section 6 above must be taken by the Company or the Acquiror, in which case such action shall be subject to a provision that the settlement of the terminated award of LTIP Units which are not convertible into Common Units requires a payment of the same kind and amount of consideration payable in connection with the Transaction to a holder of the number of Common Units into which the LTIP Units to be terminated could be converted or, if greater, the consideration payable to holders of the number of common shares into which such Common Units could be exchanged (including the right to make elections as to the type of consideration) if the Transaction were of a nature that permitted a revaluation of the Grantee’s capital account balance under the terms of the Partnership Agreement, as determined by the Committee in good faith in accordance with the Plan.

7.Distributions. Upon the issuance of the LTIP Units pursuant to Section 2 hereof, distributions on the LTIP Units shall be paid currently to the Grantee in accordance with the terms of the Partnership Agreement. The right to distributions set forth in this Section 7 shall be deemed a Dividend Equivalent Right for purposes of the Plan.

8.Incorporation of Plan. Notwithstanding anything herein to the contrary, this Award shall be subject to all of the terms and conditions of the Plan and the Partnership Agreement.

9.Covenants. The Grantee hereby covenants as follows:

a.So long as the Grantee holds any LTIP Units, the Grantee shall disclose to GMR OP in writing such information as may be reasonably requested with respect to ownership of LTIP Units as GMR OP may deem reasonably necessary to ascertain and to establish compliance with provisions of the Code applicable to GMR OP or to comply with requirements of any other appropriate taxing authority.

b.The Grantee hereby agrees to make an election under Section 83(b) of the Code with respect to the LTIP Units awarded hereunder, and the Company hereby consents thereto.. The Grantee agrees to file a completed, executed copy of the election form attached hereto as ANNEX B (or to permit GMR OP to file such election on the Grantee’s behalf) within thirty (30) days after the date that LTIP Units are issued to the Grantee pursuant to Section 2 of this Agreement with the IRS Service Center at which such Grantee files his personal income tax returns, and to file a copy of such election with the Grantee’s U.S. federal income tax return for the taxable year in which the LTIP Units are awarded to the Grantee.

c.The Grantee hereby agrees that it does not have the intention to dispose of the LTIP Units subject to this Award within two years of receipt of such LTIP Units. GMR OP and the Grantee hereby agree to treat the Grantee as the owner of the LTIP Units from the Grant Date. The Grantee hereby agrees to take into account the distributive share of GMR OP income, gain, loss, deduction, and credit associated with the LTIP Units in computing the Grantee’s income tax liability for the entire period during which the Grantee has the LTIP Units.

d.The Grantee hereby recognizes that the IRS has proposed regulations under Sections 83 and 704 of the Code that may affect the proper treatment of the LTIP Units for federal tax purposes. In the event that those proposed regulations are finalized, the Grantee hereby agrees to cooperate with GMR

OP in amending this Agreement and the Partnership Agreement, and to take such other action as may be required, to conform to such regulations.

e.The Grantee hereby recognizes that changes in applicable law may affect the federal tax consequences of owning and disposing of LTIP Units.

10.Transferability. This Agreement is personal to the Grantee, is non-assignable and is not transferable in any manner, by operation of law or otherwise, other than by will or the laws of descent and distribution, without the prior written consent of the Company.

11.Amendment. The Grantee acknowledges that the Plan may be amended or canceled or terminated in accordance with Article XVIII thereof and that this Agreement may be amended or cancelled by the Committee, on behalf of GMR OP, for the purpose of satisfying changes in law or for any other lawful purpose, provided that no such action shall adversely affect the Grantee’s rights under this Agreement without the Grantee’s written consent. The provisions of Section 5 of this Agreement applicable to the termination of the LTIP Units covered by this Award in connection with a Transaction (as defined in Section 6 of this Agreement) shall apply, mutatis mutandi to amendments, discontinuance or cancellation pursuant to this Section 11 or the Plan.

12.No Obligation to Continue Employment. Neither the Company nor any one of its Affiliates is obligated by or as a result of the Plan or this Agreement to continue the Grantee in employment and neither the Plan nor this Agreement shall interfere in any way with the right of the Company or its Affiliates to terminate the employment of the Grantee at any time.

13.Notices. Notices hereunder shall be mailed or delivered to GMR OP at its principal place of business and shall be mailed or delivered to the Grantee at the address on file with GMR OP or, in either case, at such other address as one party may subsequently furnish to the other party in writing.

14.Governing Law. This Agreement shall be governed by, and construed in accordance with, the laws of the State of Delaware, applied without regard to conflict of law principles. The parties agree that any action or proceeding arising directly, indirectly or otherwise in connection with, out of, related to or from this Agreement, any breach hereof or any action covered hereby, shall be resolved within the State of Delaware and the parties hereto consent and submit to the jurisdiction of the federal and state courts located within Delaware.

[Signatures appear on following page.]

GLOBAL MEDICAL REIT INC.
a Maryland corporation
Name:
Title:
Date:
GLOBAL MEDICAL REIT L.P.
a Delaware limited partnership
By:	GLOBAL MEDICAL REIT GP LLC
	its general partner
By:	GLOBAL MEDICAL REIT INC.
	its sole member
Name:
Title:
Date:

The foregoing agreement is hereby accepted and the terms and conditions thereof hereby agreed to by the Grantee.

Date:
	Grantee’s Signature
	Grantee’s name and address:
	Name:
	Address:

[Signature page to LTIP Unit Vesting Agreement]

ANNEX A

FORM OF LIMITED PARTNER SIGNATURE PAGE

The Grantee desiring to become one of the within named Partners of Global Medical REIT L.P. (“GMR OP”), hereby becomes a party to the Agreement of Limited Partnership (as amended from time to time, the “Partnership Agreement”) of GMR OP, by and among Global Medical REIT GP LLC, as general partner (the “General Partner”), and the Limited Partners, effective as of the Grant Date (as specified in the LTIP Unit Vesting Agreement, dated [     ], among the Grantee, Global Medical REIT Inc. and GMR OP). The Grantee agrees to be bound by the Partnership Agreement. The Grantee also agrees that this signature page may be attached to, and hereby authorizes the General Partner to attach this signature page to, any counterpart of the Partnership Agreement.

Date:
	Signature of Limited Partner
	Limited Partner’s name and address:
	Name:
	Address:

Annex A

ANNEX B

ELECTION TO INCLUDE IN GROSS INCOME IN YEAR OF

TRANSFER OF PROPERTY PURSUANT TO SECTION 83(b)

OF THE INTERNAL REVENUE CODE

The undersigned hereby makes an election pursuant to Section 83(b) of the Internal Revenue Code of 1986, as amended (the “Code”), with respect to the property described below and supplies the following information in accordance with the regulations promulgated thereunder:

1.	The name, address and taxpayer identification number of the undersigned are:
	Name:  _______________________________________ (the “Taxpayer”)
	Address:		______________________________________
			______________________________________
			______________________________________
	Social security number:  ___________________________
2.	Description of property with respect to which the election is being made:
	LTIP Units (the “LTIP Units”) in Global Medical REIT L.P. (“GMR OP”).
3.	The date on which the LTIP Units were transferred is [ ].  The taxable year to which this election relates is calendar year 2021.
4.	The LTIP Units are subject to the following restrictions:
	(a)	The LTIP Units are subject to a substantial risk of forfeiture and are nontransferable on the date of transfer.
	(b)	The Taxpayer’s LTIP Units vest and become transferable based on the Taxpayer’s continued employment.
5.	The fair market value at the time of transfer (determined without regard to any restrictions other than restrictions which by their terms will never lapse) of the LTIP Units with respect to which this election is being made was $0.00 per LTIP Unit.
6.	The amount paid by the Taxpayer for the LTIP Units was $0.00 per LTIP Unit.
7.	The amount to include in gross income is $0.00.
8.	A copy of this statement has been furnished to GMR OP and to its general partner, Global Medical REIT GP LLC.

[Signature Page Follows]

Signature Page to Annex B

Dated: _________, 2021
	Signature of the Taxpayer
	Taxpayer’s name and address:
	Name:
	Address:

The undersigned hereby consents to the making, by the undersigned’s spouse, of the foregoing election pursuant to Section 83(b) of the Code.

Dated: _________, 2021
	Signature of the Taxpayer’s Spouse
	Spouse’s name and address:
	Name:
	Address:

Signature Page to Annex B

EX-10.4

Exhibit 10.4

Jeffrey Busch

4515 Foxhall Crest NW

Washington, DC 20007

January 27, 2021

Dear Jeff:

First Amendment to Employment Agreement

This letter memorializes our mutual agreement to amend the Employment Agreement between you and Inter-American Management LLC dated July 9, 2020 (the “Employment Agreement”) as set forth below.

Effective as of January 1, 2021 the second sentence of Section 3(b) of the Employment Agreement shall be deleted and replaced with the following sentence:

“The performance goals for an applicable calendar year (the “Bonus Year”) shall be established by the Board (or a committee thereof), following consultation with Employee, and communicated to Employee within the first seventy-five (75) days of the applicable Bonus Year.”

Except as set forth above, the terms of the Employment Agreement are not to be amended by this letter and are hereby ratified and affirmed.

To confirm your agreement to the amendment set forth above, please sign below and return a signed copy of this letter to Jamie Barber at jamieb@globalmedicalreit.com.  This letter may be executed in any number of counterparts, each of which shall be an original, but all of which together shall constitute one instrument.  This letter may be executed by electronic signature, which shall be valid for all purposes.

Sincerely,
Inter-American Management LLC
By:	/s/ Jamie Barber
Name:	Jamie Barber
Title:	General Counsel

ACKNOWLEDGED AND AGREED:

/s/ Jeffrey Busch

Jeffrey Busch

[signature page to First Amendment to Employment Agreement]

EX-10.5

Exhibit 10.5

Robert J. Kiernan

6515 Elgin Lane

Bethesda, Maryland 20817

January 27, 2021

Dear Bob:

First Amendment to Employment Agreement

This letter memorializes our mutual agreement to amend the Employment Agreement between you and Inter-American Management LLC dated July 9, 2020 (the “Employment Agreement”) as set forth below.

Effective as of January 1, 2021 the second sentence of Section 3(b) of the Employment Agreement shall be deleted and replaced with the following sentence:

“The performance goals for an applicable calendar year (the “Bonus Year”) shall be established by the board of directors (the “Board”) of GMR (or a committee thereof), following consultation with Employee, and communicated to Employee within the first seventy-five (75) days of the applicable Bonus Year.”

Except as set forth above, the terms of the Employment Agreement are not to be amended by this letter and are hereby ratified and affirmed.

To confirm your agreement to the amendment set forth above, please sign below and return a signed copy of this letter to Jamie Barber at jamieb@globalmedicalreit.com.  This letter may be executed in any number of counterparts, each of which shall be an original, but all of which together shall constitute one instrument.  This letter may be executed by electronic signature, which shall be valid for all purposes.

Sincerely,
Inter-American Management LLC
By:	/s/ Jamie Barber
Name:	Jamie Barber
Title:	General Counsel

ACKNOWLEDGED AND AGREED:

/s/ Robert Kiernan

Robert Kiernan

[signature page to First Amendment to Employment Agreement]

EX-10.6

Exhibit 10.6

Alfonzo Leon

10401 Strathmore Park Court

Unit 405

North Bethesda, Maryland 20852

January 27, 2021

Dear Alfonzo:

First Amendment to Employment Agreement

This letter memorializes our mutual agreement to amend the Employment Agreement between you and Inter-American Management LLC dated July 9, 2020 (the “Employment Agreement”) as set forth below.

Effective as of January 1, 2021 the second sentence of Section 3(b) of the Employment Agreement shall be deleted and replaced with the following sentence:

“The performance goals for an applicable calendar year (the “Bonus Year”) shall be established by the board of directors (the “Board”) of GMR (or a committee thereof), following consultation with Employee, and communicated to Employee within the first seventy-five (75) days of the applicable Bonus Year.”

Except as set forth above, the terms of the Employment Agreement are not to be amended by this letter and are hereby ratified and affirmed.

To confirm your agreement to the amendment set forth above, please sign below and return a signed copy of this letter to Jamie Barber at jamieb@globalmedicalreit.com.  This letter may be executed in any number of counterparts, each of which shall be an original, but all of which together shall constitute one instrument.  This letter may be executed by electronic signature, which shall be valid for all purposes.

Sincerely,
Inter-American Management LLC
By:	/s/ Jamie Barber
Name:	Jamie Barber
Title:	General Counsel

ACKNOWLEDGED AND AGREED:

/s/ Alfonzo Leon

Alfonzo Leon

[signature page to First Amendment to Employment Agreement]

EX-31.1

Exhibit 31.1

CERTIFICATIONS

I, Jeffrey M. Busch, certify that:

1. I have reviewed this Quarterly Report on Form 10-Q for the period ended March 31, 2021 of Global Medical REIT Inc. (the “registrant”);

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

(a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

(b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

(c) Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

(d) Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5. The registrant’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

(a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

(b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Date: May 7, 2021	/s/ Jeffrey M. Busch
	Jeffrey M. Busch, Chief Executive Officer
	(Principal Executive Officer)

EX-31.2

Exhibit 31.2

CERTIFICATIONS

I, Robert J. Kiernan, certify that:

1. I have reviewed this Quarterly Report on Form 10-Q for the period ended March 31, 2021 of Global Medical REIT Inc. (the “registrant”);

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

(a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

(b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

(c) Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

(d) Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5. The registrant’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

(a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

(b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Date: May 7, 2021	/s/ Robert J. Kiernan
	Robert J. Kiernan, Chief Financial Officer
	(Principal Financial and Accounting Officer)

EX-32.1

Exhibit 32.1

Section 1350 Certification of Chief Executive Officer and Chief Financial Officer

In connection with the Quarterly Report on Form 10-Q of Global Medical REIT Inc. (the “Company”) for the period ended March 31, 2021 as filed with the Securities and Exchange Commission on the date hereof (the “Report”), I, Jeffrey M. Busch, Chief Executive Officer of the Company and I, Robert J. Kiernan, Chief Financial Officer of the Company, each certify, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that, to the best of our knowledge:

1. The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934, as amended; and

2. The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

Date: May 7, 2021	/s/ Jeffrey M. Busch
	Jeffrey M. Busch, Chief Executive Officer
	(Principal Executive Officer)

Date: May 7, 2021	/s/ Robert J. Kiernan
	Robert J. Kiernan, Chief Financial Officer
	(Principal Financial and Accounting Officer)

This certification accompanies this Quarterly Report on Form 10-Q pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 and shall not, except to the extent required by such Act, be deemed filed by the Company for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”). Such certification will not be deemed to be incorporated by reference into any filing under the Securities Act of 1933, as amended, or the Exchange Act, except to the extent that the Company specifically incorporates it by reference.

XML

Document and Entity Information - shares	3 Months Ended
	Mar. 31, 2021	May 03, 2021
Document Type	10-Q
Document Period End Date	Mar. 31, 2021
Entity Registrant Name	Global Medical REIT Inc.
Document Quarterly Report	true
Document Transition Report	false
Entity File Number	001-37815
Entity Tax Identification Number	46-4757266
Entity Incorporation, State or Country Code	MD
Entity Address, Address Line One	2 Bethesda Metro Center, Suite 440
Entity Address, City or Town	Bethesda
Entity Address, State or Province	MD
Entity Address, Postal Zip Code	20814
City Area Code	202
Local Phone Number	524-6851
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Non-accelerated Filer
Entity Small Business	true
Entity Emerging Growth Company	false
Entity Shell Company	false
Entity Common Stock, Shares Outstanding		60,794,166
Entity Central Index Key	0001533615
Current Fiscal Year End Date	--12-31
Document Fiscal Year Focus	2021
Document Fiscal Period Focus	Q1
Amendment Flag	false
Common Stock [Member]
Title of 12(b) Security	Common Stock, par value $0.001 per share
Trading Symbol	GMRE
Security Exchange Name	NYSE
Series A Preferred Stock [Member]
Title of 12(b) Security	Series A Preferred Stock, Par value $0.001 per share
Trading Symbol	GMRE PrA
Security Exchange Name	NYSE

XML

Condensed Consolidated Balance Sheets - USD ($) $ in Thousands	Mar. 31, 2021	Dec. 31, 2020
Investment in real estate:
Land	$ 133,040	$ 128,857
Building	883,901	851,427
Site improvements	15,669	15,183
Tenant improvements	50,596	49,204
Acquired lease intangible assets	103,269	98,234
Investment in real estate, Total	1,186,475	1,142,905
Less: accumulated depreciation and amortization	(105,779)	(94,462)
Investment in real estate, net	1,080,696	1,048,443
Cash and cash equivalents	5,304	5,507
Restricted cash	6,096	5,246
Tenant receivables, net	5,585	5,596
Due from related parties	229	103
Escrow deposits	5,163	4,817
Deferred assets	21,676	20,272
Derivative asset	136
Goodwill	5,903	5,903
Other assets	5,530	5,019
Total assets	1,136,318	1,100,906
Liabilities:
Credit Facility, net of unamortized debt issuance costs of $3,284 and $3,559 at March 31, 2021 and December 31, 2020, respectively	420,216	521,641
Notes payable, net of unamortized debt issuance costs of $772 and $835 at March 31, 2021 and December 31, 2020, respectively	64,810	64,937
Accounts payable and accrued expenses	7,230	7,279
Dividends payable	14,482	12,470
Security deposits and other	4,367	4,340
Due to related party	0	0
Derivative liability	14,603	18,086
Other liability	6,793	6,171
Acquired lease intangible liability, net	7,998	8,222
Total liabilities	540,499	643,146
Equity:
Preferred stock, $0.001 par value, 10,000 shares authorized; 3,105 issued and outstanding at March 31, 2021 and December 31, 2020, respectively (liquidation preference of $77,625 at March 31, 2021 and December 31, 2020, respectively)	74,959	74,959
Common stock, $0.001 par value, 500,000 shares authorized; 60,794 shares and 49,461 shares issued and outstanding at March 31, 2021 and December 31, 2020, respectively	61	49
Additional paid-in capital	648,949	504,789
Accumulated deficit	(127,480)	(116,773)
Accumulated other comprehensive loss	(14,588)	(18,219)
Total Global Medical REIT Inc. stockholders' equity	581,901	444,805
Noncontrolling interest	13,918	12,955
Total equity	595,819	457,760
Total liabilities and equity	$ 1,136,318	$ 1,100,906

XML

Condensed Consolidated Balance Sheets (Parenthetical) - USD ($) shares in Thousands, $ in Thousands	Mar. 31, 2021	Dec. 31, 2020
Net of unamortized debt	$ 772	$ 835
Preferred stock, par value (in dollars per share)	$ 0.001	$ 0.001
Preferred stock, shares authorized	10,000	10,000
Preferred stock, shares issued	3,105	3,105
Preferred stock, shares outstanding	3,105	3,105
Preferred stock, liquidation preference	$ 77,625	$ 77,625
Common stock, par value (in dollars per share)	$ 0.001	$ 0.001
Common stock, shares authorized	500,000	500,000
Common stock, shares issued	60,794	49,461
Common stock, shares outstanding	60,794	49,461
Credit facility [Member]
Net of unamortized debt	$ 3,284	$ 3,559
Notes Payable [Member]
Net of unamortized debt	$ 772	$ 835

XML

Condensed Consolidated Statements of Operations - USD ($) shares in Thousands, $ in Thousands	3 Months Ended
	Mar. 31, 2021	Mar. 31, 2020
Revenue
Rental revenue	$ 27,325	$ 21,533
Other income	24	116
Total revenue	27,349	21,649
Expenses
General and administrative	4,383	1,839
Operating expenses	3,687	2,303
Management fees - related party		2,002
Depreciation expense	7,848	5,836
Amortization expense	3,005	1,921
Interest expense	5,037	4,378
Management internalization expense		504
Preacquisition expense	66	49
Total expenses	24,026	18,832
Net income	3,323	2,817
Less: Preferred stock dividends	(1,455)	(1,455)
Less: Net loss (income) attributable to noncontrolling interest	(112)	(107)
Net income attributable to common stockholders	$ 1,756	$ 1,255
Net income attributable to common stockholders per share - basic and diluted	$ 0.03	$ 0.03
Weighted average shares outstanding - basic and diluted	52,671	44,182

XML

Condensed Consolidated Statements of Comprehensive Income (Loss) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2021	Mar. 31, 2020
Condensed Consolidated Statements of Comprehensive Income (Loss)
Net income	$ 3,323	$ 2,817
Other comprehensive income (loss):
Increase (decrease) in fair value of interest rate swap agreements	3,631	(13,958)
Total other comprehensive income (loss)	3,631	(13,958)
Comprehensive income (loss)	6,954	(11,141)
Less: Preferred stock dividends	(1,455)	(1,455)
Less: Comprehensive (income) loss attributable to noncontrolling interest	(331)	986
Comprehensive income (loss) attributable to common stockholders	$ 5,168	$ (11,610)

XML

Condensed Consolidated Statements of Equity - USD ($) shares in Thousands, $ in Thousands	Global Medical REIT Inc. [Member]	Common Stock [Member]	Preferred Stock [Member]	Additional Paid-in Capital [Member]	Accumulated Deficit [Member]	Accumulated Other Comprehensive Loss [Member]	Noncontrolling Interest [Member]	Total
Balances at Dec. 31, 2019	$ 430,270	$ 44	$ 74,959	$ 433,330	$ (71,389)	$ (6,674)	$ 30,083	$ 460,353
Balance (in shares) at Dec. 31, 2019		43,806	3,105
Net income	2,710				2,710		107	2,817
LTIP Units and OP Units redeemed for common stock	6,890			6,890			(6,890)
LTIP Units and OP Units redeemed for common stock (in shares)		472
Change in fair value of interest rate swap agreements	(13,958)					(13,958)		(13,958)
Stock-based compensation expense							922	922
Dividends to common stockholders	(8,856)				(8,856)			(8,856)
Dividends to preferred stockholders	(1,455)				(1,455)			(1,455)
Dividends to noncontrolling interest							(1,033)	(1,033)
Balances at Mar. 31, 2020	415,601	$ 44	$ 74,959	440,220	(78,990)	(20,632)	23,189	438,790
Balances (in shares) at Mar. 31, 2020		44,278	3,105
Balances at Dec. 31, 2020	444,805	$ 49	$ 74,959	504,789	(116,773)	(18,219)	12,955	457,760
Balance (in shares) at Dec. 31, 2020		49,461	3,105
Net income	3,211				3,211		112	3,323
Issuance of shares of common stock, net	144,172	$ 12		144,160				144,172
Issuance of shares of common stock, net (in shares)		11,333
Change in fair value of interest rate swap agreements	3,631					3,631		3,631
Stock-based compensation expense							1,715	1,715
Dividends to common stockholders	(12,463)				(12,463)			(12,463)
Dividends to preferred stockholders	(1,455)				(1,455)			(1,455)
Dividends to noncontrolling interest							(864)	(864)
Balances at Mar. 31, 2021	$ 581,901	$ 61	$ 74,959	$ 648,949	$ (127,480)	$ (14,588)	$ 13,918	$ 595,819
Balances (in shares) at Mar. 31, 2021		60,794	3,105

XML

Condensed Consolidated Statements of Equity (Parentheticals) - $ / shares	3 Months Ended
	Mar. 31, 2021	Mar. 31, 2020
Condensed Consolidated Statements of Equity
Dividends to common stockholders	$ 0.205	$ 0.20
Dividends to preferred stockholders	$ 0.46875	$ 0.46875

XML

Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2021	Mar. 31, 2020
Operating activities
Net income	$ 3,323	$ 2,817
Adjustments to reconcile net (loss) income to net cash provided by operating activities:
Depreciation expense	7,848	5,836
Amortization of acquired lease intangible assets	2,984	1,921
Amortization of above market leases, net	60	247
Amortization of debt issuance costs and other	425	315
Stock-based compensation expense	1,715	922
Capitalized preacquisition costs charged to expense	24	7
Other	10	26
Changes in operating assets and liabilities:
Tenant receivables	11	(751)
Deferred assets	(1,404)	(1,629)
Other assets	551	28
Accounts payable and accrued expenses	(287)	2,051
Security deposits and other	27	195
Accrued management fees due to related party		275
Net cash provided by operating activities	15,287	12,260
Investing activities
Purchase of land, buildings, and other tangible and intangible assets and liabilities	(43,348)	(68,457)
Escrow deposits for purchase of properties	300	(100)
Loan repayments from (made to) related parties	(127)	5
Capital expenditures on existing real estate investments	(397)	(211)
Net cash used in investing activities	(43,572)	(68,763)
Financing activities
Net proceeds received from common equity offerings	144,312
Payment of accrued common stock offerin'g costs		(269)
Escrow deposits required by third party lenders	(646)	(72)
Repayments of notes payable	(190)	(35)
Proceeds from Credit Facility	50,100	81,700
Repayment of Credit Facility	(151,800)	(3,600)
Payment of debt issuance costs	(74)	(44)
Dividends paid to common stockholders, and OP Unit and LTIP Unit holders	(11,315)	(10,031)
Dividends paid to preferred stockholders	(1,455)	(1,455)
Net cash provided by financing activities	28,932	66,194
Net increase in cash and cash equivalents and restricted cash	647	9,691
Cash and cash equivalents and restricted cash-beginning of period	10,753	7,185
Cash and cash equivalents and restricted cash-end of period	11,400	16,876
Supplemental cash flow information:
Cash payments for interest	4,602	3,823
Noncash financing and investing activities:
Accrued dividends payable	14,482	10,949
Interest rate swap agreements fair value change recognized in other comprehensive loss	(3,631)	13,958
OP Units and LTIP Units redeemed for common stock		$ 6,890
Accrued common stock offering costs	$ 220

XML

Organization

3 Months Ended

Mar. 31, 2021

Organization

Organization

Note 1 – Organization

Global Medical REIT Inc. (the “Company”) is a Maryland corporation engaged primarily in the acquisition of purpose-built healthcare facilities and the leasing of those facilities to strong healthcare systems and groups with leading market share. The Company holds its facilities and conducts its operations through a Delaware limited partnership subsidiary named Global Medical REIT L.P. (the “Operating Partnership”). The Company serves as the sole general partner of the Operating Partnership through a wholly owned subsidiary of the Company named Global Medical REIT GP LLC, a Delaware limited liability company. As of March 31, 2021, the Company was the 93.99% limited partner of the Operating Partnership, with an aggregate of 6.01% of the Operating Partnership owned by holders of long-term incentive plan units (“LTIP Units”) and third-party limited partners who contributed properties or services to the Operating Partnership in exchange for common limited partnership units (“OP Units”). Until July 9, 2020, the Company was externally managed and advised by its former advisor. On July 9, 2020, the Company completed its management internalization transaction, whereby the management agreement with the former advisor was terminated, the employees of the former advisor became employees of the Company and the functions previously performed by the former advisor were internalized by the Company.

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Summary of Significant Accounting Policies

3 Months Ended

Mar. 31, 2021

Summary of Significant Accounting Policies

Summary of Significant Accounting Policies

Note 2 – Summary of Significant Accounting Policies

Basis of presentation

The accompanying condensed consolidated financial statements are unaudited and include the accounts of the Company, including the Operating Partnership and its wholly owned subsidiaries. The accompanying condensed consolidated financial statements have been prepared in accordance with U.S. generally accepted accounting principles (“GAAP”) and the rules and regulations of the U.S. Securities and Exchange Commission (“SEC”). Certain information and footnote disclosures required for annual consolidated financial statements have been condensed or excluded pursuant to SEC rules and regulations. Accordingly, the accompanying condensed consolidated financial statements do not include all the information and footnotes required by GAAP for complete consolidated financial statements and should be read in conjunction with the audited consolidated financial statements and notes thereto for the year ended December 31, 2020. In the opinion of management, all adjustments of a normal and recurring nature necessary for a fair presentation of the condensed consolidated financial statements for the interim periods have been made.

Principles of Consolidation

The accompanying condensed consolidated financial statements include the accounts of the Company and its  subsidiaries. The Company presents the portion of any equity it does not own but controls (and thus consolidates) as noncontrolling interest. Noncontrolling interest in the Company includes the LTIP Units and the OP Units held by third parties. Refer to Note 5 – “Equity” and Note 7 – “Stock-Based Compensation” for additional information regarding the OP Units and LTIP Units.

The Company classifies noncontrolling interest as a component of consolidated equity on its Condensed Consolidated Balance Sheets, separate from the Company’s total equity. The Company’s net income or loss is allocated to noncontrolling interests based on the respective ownership or voting percentage in the Operating Partnership associated with such noncontrolling interests and is removed from consolidated income or loss on the Condensed Consolidated Statements of Operations in order to derive net income or loss attributable to common stockholders. The noncontrolling ownership percentage is calculated by dividing the aggregate number of LTIP Units and OP Units by the total number of units and shares outstanding. Any future issuances of additional LTIP Units or OP Units would change the noncontrolling ownership interest.

Use of Estimates

The preparation of the condensed consolidated financial statements in conformity with GAAP requires the Company to make estimates and assumptions that affect the amounts reported in the condensed consolidated financial statements and footnotes. Actual results could differ from those estimates.

Investment in Real Estate

The Company determines when an acquisition meets the definition of a business or alternatively should be accounted for as an asset acquisition in accordance with Accounting Standard Codification (“ASC”) Topic 805 “Business Combinations” (“ASC Topic 805”), which requires that, when substantially all of the fair value of an acquisition is concentrated in a single identifiable asset or a group of similar identifiable assets, the asset or group of similar identifiable assets does not meet the definition of a business and therefore is required to be accounted for as an asset acquisition. Transaction costs are capitalized for asset acquisitions and expensed as incurred for business combinations. All our facility acquisitions for the three months ended March 31, 2021 and 2020 have been accounted for as asset acquisitions because substantially all the fair value of the gross assets the Company acquired were concentrated in a single asset or group of similar identifiable assets.

For asset acquisitions that are “owner occupied” (meaning that the seller either is the tenant or controls the tenant), the purchase price, including capitalized acquisition costs, will be allocated to land and building based on their relative fair values with no value allocated to intangible assets or liabilities. For asset acquisitions that are not “owner occupied,” the Company will allocate the purchase price to tangible assets and any intangible assets acquired or liabilities assumed based on their relative fair values. Fair value is determined based upon the guidance of ASC Topic 820, “Fair Value Measurements and Disclosures,” and generally are determined using Level 2 inputs, such as rent comparables, sales comparables, and broker indications. Although Level 3 Inputs are utilized, they are minor in comparison to the Level 2 data used for the primary assumptions. The determination of fair value involves the use of significant judgment and estimates. We make estimates to determine the fair value of the tangible and intangible assets acquired and liabilities assumed using information obtained from multiple sources, including preacquisition due diligence, and we routinely utilize the assistance of a third-party appraiser.

Revenue Recognition

The Company’s operations primarily consist of rental revenue earned from tenants under leasing arrangements which provide for minimum rent and escalations. The leases have been accounted for as operating leases. For operating leases with contingent rental escalators, revenue is recorded based on the contractual cash rental payments due during the period. Revenue from leases with fixed annual rental escalators are recognized on a straight-line basis over the initial lease term, subject to a collectability assessment, with the difference between the contractual rental receipts and the straight-line amounts recorded as a “deferred rent receivable.” Additionally, the Company recognizes “expense recoveries” revenue, which represents revenue recognized related to tenant reimbursement of real estate taxes, insurance, and certain other operating expenses (“tenant reimbursements”). The Company recognizes these reimbursements and related expenses on a gross basis in its Condensed Consolidated Statements of Operations.

Cash and Cash Equivalents and Restricted Cash

The Company considers all demand deposits, cashier’s checks, money market accounts, and certificates of deposit with a maturity of three months or less to be cash equivalents. Amounts included in restricted cash represent (1) certain security deposits received from tenants at the inception of their leases; (2) cash required to be held by a third-party lender as a reserve for debt service; and (3) funds held by the Company related to tenant reimbursements. The following table provides a reconciliation of the Company’s cash and cash equivalents and restricted cash that sums to the total of those amounts at the end of the periods presented on the Company’s accompanying Condensed Consolidated Statements of Cash Flows:

	As of March 31,
	2021		2020
Cash and cash equivalents	$	5,304	$	11,340
Restricted cash		6,096		5,536
Total cash and cash equivalents and restricted cash	$	11,400	$	16,876

Tenant Receivables, Net

The tenant receivable balance as of March 31, 2021 and December 31, 2020 was $5,585 and $5,596, respectively. The balance as of March 31, 2021 consisted of $1,863 in funds owed from the Company’s tenants for rent that the Company had earned but had not yet received, $1,190 of loans that were made to two of the Company’s tenants, and $2,532 of tenant reimbursements. The balance as of December 31, 2020 consisted of $1,817 in funds owed from the Company’s tenants for rent that the Company had earned but had not yet received, $1,200 of loans that were made to two of the Company’s tenants, and $2,579 of tenant reimbursements.

Receivables arising from operating leases are accounted for in accordance with ASC Topic 842 “Leases” (“ASC Topic 842”). The Company assesses the likelihood of losses resulting from tenant defaults, or the inability of tenants to make contractual rent and tenant recovery payments at each reporting date. The Company also monitors the liquidity and creditworthiness of its tenants and operators on a continuous basis. If the likelihood of a tenant paying its lease payments is determined to no longer be probable, all tenant receivables, including deferred rent, are written off against revenue and any future revenue for that tenant is recognized only upon receipt of cash. In addition, as of March 31, 2021, the Company had a portfolio level reserve of $450 on those leases that were probable of collection to ensure that the tenant lease receivables were not overstated.  

Escrow Deposits

The escrow balance as of March 31, 2021 and December 31, 2020 was $5,163 and $4,817, respectively. Escrow deposits include funds held in escrow to be used for the acquisition of properties in the future and for the payment of taxes, insurance, and other amounts as stipulated by the Company’s Cantor Loan, as hereinafter defined.

Deferred Assets

The deferred assets balance as of March 31, 2021 and December 31, 2020 was $21,676 and $20,272, respectively. The balance as of March 31, 2021 consisted of $21,596 in deferred rent receivables resulting from the recognition of revenue from leases with fixed annual rental escalations on a straight-line basis and $80 of other deferred costs. The balance as of December 31, 2020 consisted of $20,192 in deferred rent receivables resulting from the recognition of revenue from leases with fixed annual rental escalations on a straight-line basis and $80 of other deferred costs.

Other Assets

The other assets balance as of March 31, 2021 and December 31, 2020 was $5,530 and $5,019, respectively. The balance as of March 31, 2021 consisted of $3,525 for right of use assets, $939 in capitalized preacquisition costs, $738 in prepaid assets, and $328 for net capitalized software costs and miscellaneous assets. The balance as of December 31, 2020 consisted of $3,598 for right of use assets, $484 in capitalized preacquisition costs, $588 in prepaid assets, and $349 for net capitalized software costs and miscellaneous assets. Refer to Note 8 – “Leases” for additional details on right of use assets.

Derivative Instruments - Interest Rate Swaps

As of March 31, 2021 and December 31, 2020, the Company's net liability balance related to interest rate swap derivative instruments that were designated as cash flow hedges of interest rate risk was $14,467 and $18,086, respectively. In accordance with the Company’s risk management strategy, the purpose of the interest rate swaps is to manage interest rate risk for certain of the Company’s variable-rate debt. The interest rate swaps involve the Company’s receipt of variable-rate amounts from four counterparties in exchange for the Company making fixed-rate payments over the life of the agreements. The Company accounts for derivative instruments in accordance with the provisions of ASC Topic 815, “Derivatives and Hedging.” Refer to Note 4 – “Credit Facility, Notes Payable and Derivative Instruments” for additional details.

Goodwill

As of March 31, 2021 and December 31, 2020, the Company’s goodwill balance was $5,903. Goodwill represents the excess of consideration paid over the fair value of underlying identifiable net assets of businesses acquired. The Company’s goodwill balance was derived from the acquisition of its former advisor in connection with the management internalization transaction that was completed in July 2020. Goodwill has an indefinite life and is not amortized, but is tested for impairment on an annual basis, or more frequently if events or changes in circumstances indicate that the asset might be impaired. The Company’s policy is to perform its annual goodwill impairment evaluation as of the first day of the fourth quarter of its fiscal year. The Company has one reporting unit.  

Recent Accounting Pronouncements

Reference Rate Reform

Accounting Standards Update (“ASU”) 2020-04, Reference Rate Reform (Topic 848) (“ASU 2020-04”) contains practical expedients for reference rate reform-related activities that impact debt, leases, derivatives and other contracts. The guidance in ASU

2020-04 is optional and may be elected over time as reference rate reform activities occur. As of March 31, 2021, the Company had previously elected to apply the hedge accounting expedients related to probability and the assessments of effectiveness for future LIBOR-indexed cash flows to assume that the index upon which future hedged transactions will be based matches the index on the corresponding derivatives. Application of these expedients preserves the presentation of derivatives consistent with past presentation. The Company continues to evaluate the impact of the guidance and may apply other elections as applicable as additional changes in the market occur.

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Property Portfolio

3 Months Ended

Mar. 31, 2021

Property Portfolio

Property Portfolio

Note 3 – Property Portfolio

Summary of Properties Acquired During the Three Months Ended March 31, 2021

During the three months ended March 31, 2021 the Company completed four acquisitions. For each acquisition, substantially all of the fair value was concentrated in a single identifiable asset or group of similar identifiable assets and, therefore, each acquisition represents an asset acquisition. Accordingly, transaction costs for these acquisitions were capitalized.

A rollforward of the gross investment in land, building, improvements, and acquired lease intangible assets as of March 31, 2021 resulting from these acquisitions is as follows:

					Site		Tenant		Acquired Lease		Gross Investment in
	Land		Building		Improvements		Improvements		Intangible Assets		Real Estate
Balances as of December 31, 2020	$	128,857	$	851,427	$	15,183	$	49,204	$	98,234	$	1,142,905
Facility Acquired – Date Acquired:
El Paso – 1/12/21		899		7,549		71		160		1,338		10,017
Syracuse – 1/15/21		616		4,745		128		136		772		6,397
West El Paso – 1/15/21		851		7,160		144		567		856		9,578
Fort Worth – 3/9/21		1,817		13,020		143		395		2,069		17,444
Capitalized costs(1)		—		—		—		134		—		134
Total Additions:		4,183		32,474		486		1,392		5,035		43,570
Balances as of March 31, 2021	$	133,040	$	883,901	$	15,669	$	50,596	$	103,269	$	1,186,475

⁽¹⁾ Represents capital projects that were completed and placed in service during the three months ended March 31, 2021 related to the Company’s existing facilities.

Depreciation expense was $7,848 and $5,836 for the three ended March 31, 2021 and 2020, respectively.

As of March 31, 2021, the Company had aggregate capital improvement commitments and obligations to improve, expand, and maintain the Company’s existing facilities of approximately $29,500. Many of these amounts are subject to contingencies that make it difficult to predict when they will be utilized, if at all. In accordance with the terms of the Company’s leases, capital improvement obligations in the next twelve months could total up to approximately $18,900.

The following is a summary of the acquisitions completed during the three months ended March 31, 2021.

El Paso Facility

On January 12, 2021, the Company purchased a medical office building located in El Paso, Texas (the “El Paso Facility”) for a purchase price of approximately $10 million.  Upon closing, the Company assumed three existing leases at the El Paso Facility (the “El Paso Leases”). At acquisition, the El Paso Leases had a weighted-average remaining term of approximately four years, exclusive of tenant renewal options. The following table presents the details of the tangible and intangible assets acquired and liabilities assumed:

Land and site improvements	$	970
Building and tenant improvements		7,709
In-place leases		750
Above-market lease intangibles		383
Leasing costs		205
Total purchase price	$	10,017

Syracuse Facility

On January 15, 2021, the Company purchased a medical office building located in Syracuse, New York (the “Syracuse Facility”) for a purchase price of approximately $6.2 million.  Upon closing, the Company assumed two existing leases at the Syracuse Facility (the “Syracuse Leases”). At acquisition, the Syracuse Leases had a weighted-average remaining term of approximately eight years, exclusive of tenant renewal options. The following table presents the details of the tangible and intangible assets acquired and liabilities assumed:

Land and site improvements	$	744
Building and tenant improvements		4,881
In-place leases		434
Leasing costs		338
Below-market lease intangibles		(207)
Total purchase price	$	6,190

West El Paso Facilities

On January 15, 2021, the Company purchased two medical office buildings and an ambulatory surgical center located in El Paso, Texas (the “West El Paso Facilities”) for a total purchase price of approximately $9.6 million. Upon closing, the Company entered into two new leases at the medical office buildings with 12-year terms and assumed the existing lease at the ambulatory surgery center with a remaining term of seven years. All three leases have tenant renewal options. The following table presents the details of the tangible and intangible assets acquired and liabilities assumed:

Land and site improvements	$	995
Building and tenant improvements		7,727
In-place leases		432
Leasing costs		424
Total purchase price	$	9,578

Fort Worth Facility

On March 9, 2021, the Company purchased an inpatient psychiatric hospital located in Fort Worth, Texas (the “Fort Worth Facility”) for a purchase price of approximately $17.4 million. Upon closing, the Company assumed the existing lease at the Fort Worth Facility (the “Fort Worth Lease”). At acquisition, the Fort Worth Lease had a remaining term of approximately eight years, exclusive of tenant renewal options. The following table presents the details of the tangible and intangible assets acquired and liabilities assumed:

Land and site improvements	$	1,960
Building and tenant improvements		13,415
In-place leases		1,339
Leasing costs		730
Total purchase price	$	17,444

Summary of Properties Acquired During the Year Ended December 31, 2020

During the year ended December 31, 2020 the Company completed 18 acquisitions. For each acquisition, substantially all of the fair value was concentrated in a single identifiable asset or group of similar identifiable assets and, therefore, each acquisition represents an asset acquisition. Accordingly, transaction costs for these acquisitions were capitalized.

A rollforward of the gross investment in land, building, improvements, and acquired lease intangible assets as of December 31, 2020 resulting from these acquisitions is as follows:

					Site		Tenant		Acquired Lease		Gross Investment in
	Land		Building		Improvements		Improvements		Intangible Assets		Real Estate
Balances as of December 31, 2019	$	95,381	$	693,533	$	9,912	$	33,909	$	72,794	$	905,529
Facility Acquired – Date Acquired:
High Point – 2/13/20		1,749		20,367		440		869		1,656		25,081
Clinton – 2/27/20		664		6,551		342		1,578		2,484		11,619
West Allis – 3/4/20		974		7,687		137		98		461		9,357
Grand Rapids – 3/20/20		2,951		17,341		470		450		1,582		22,794
Dumfries – 4/27/20		2,597		10,047		289		4,815		4,292		22,040
Centerville – 7/16/20		—		4,202		160		208		501		5,071
Fairfax – 7/17/20		6,731		6,642		381		2,979		3,012		19,745
Rosedale – 7/31/20		2,856		16,204		567		1,443		2,821		23,891
Lancaster – 9/18/20		696		4,269		110		116		1,114		6,305
Winston-Salem – 9/30/20		1,524		6,407		254		307		748		9,240
Decatur and Jackson – 10/20/20		2,237		7,140		284		296		955		10,912
Sheboygan and Plymouth – 10/27/20		1,088		11,212		253		225		1,046		13,824
Spring Hill and Hudson – 11/18/20		3,473		12,520		420		435		1,370		18,218
Cape Girardeau – 11/23/20		1,150		4,601		73		264		1,262		7,350
Yuma – 12/1/20		1,041		4,715		309		274		640		6,979
Las Vegas – 12/14/20		311		6,813		—		—		—		7,124
Pensacola – 12/29/20		1,786		5,742		332		411		781		9,052
Venice – 12/30/20		1,648		4,204		247		333		543		6,975
Capitalized costs(1)		—		1,230		203		194		172		1,799
Total Additions:		33,476		157,894		5,271		15,295		25,440		237,376
Balances as of December 31, 2020	$	128,857	$	851,427	$	15,183	$	49,204	$	98,234	$	1,142,905

⁽¹⁾ Represents capital projects that were completed and placed in service during the year ended December 31, 2020  related to the Company’s existing facilities.

The following is a summary of the acquisitions completed during the year ended December 31, 2020.

High Point Facility

On February 13, 2020, the Company purchased a medical office building located in High Point, North Carolina (the “High Point Facility”) for a purchase price of approximately $25.1 million. Upon closing, the Company assumed the existing lease of the High Point Facility with Wake Forest Health Network, LLC, as tenant. At acquisition, the lease had approximately three years remaining in the current term, exclusive of a tenant renewal option. The following table presents the details of the tangible and intangible assets acquired and liabilities assumed:

Land and site improvements	$	2,189
Building and tenant improvements		21,236
In-place leases		1,207
Leasing costs		449
Total purchase price	$	25,081

Clinton Facility

On February 27, 2020, the Company purchased a medical office building located in Clinton, Iowa (the “Clinton Facility”) for a purchase price of approximately $11.6 million. Upon closing, the Company assumed the existing lease of the Clinton Facility with MercyOne Clinton Medical Center, as tenant. At acquisition, the lease had approximately four years remaining in the initial term, exclusive of a tenant renewal option. The following table presents the details of the tangible and intangible assets acquired and liabilities assumed:

Land and site improvements	$	1,006
Building and tenant improvements		8,129
In-place leases		2,115
Leasing costs		369
Total purchase price	$	11,619

West Allis Facility

On March 4, 2020, the Company purchased a medical office building located in West Allis, Wisconsin (the “West Allis Facility”) for a purchase price of approximately $9.1 million. Upon closing, the Company assumed the existing lease of the West Allis Facility with Ascension Columbia St. Mary’s Hospital Milwaukee, as tenant. At acquisition, the lease had approximately four years remaining in the initial term, exclusive of renewal options. The following table presents the details of the tangible and intangible assets acquired and liabilities assumed:

Land and site improvements	$	1,111
Building and tenant improvements		7,785
In-place leases		263
Leasing costs		198
Below-market lease intangibles		(264)
Total purchase price	$	9,093

Grand Rapids Facilities

On March 20, 2020, the Company purchased a four-building medical office portfolio located in the greater Grand Rapids, Michigan area (the “Grand Rapids Facilities”) for a total purchase price of approximately $22.7 million. Upon closing, the Company assumed 11 existing leases at the Grand Rapids Facilities (the “Grand Rapids Leases”). At acquisition, the Grand Rapids Leases had a weighted-average remaining term of five years, exclusive of tenant renewal options. The following table presents the details of the tangible and intangible assets acquired and liabilities assumed:

Land and site improvements	$	3,417
Building and tenant improvements		17,791
In-place leases		761
Above-market lease intangibles		685
Leasing costs		136
Below-market lease intangibles		(125)
Total purchase price	$	22,665

Dumfries Facility

On April 27, 2020, the Company purchased a medical office building located in Dumfries, Virginia (the “Dumfries Facility”) for a purchase price of approximately $19.6 million. Upon closing, the Company assumed the existing lease of the Dumfries Facility with Spectrum Healthcare Resources, Inc., as tenant. At acquisition, the lease had approximately nine and a half years left in the initial term, exclusive of tenant renewal options. The following table presents the details of the tangible and intangible assets acquired and liabilities assumed:

Land and site improvements	$	2,886
Building and tenant improvements		14,862
In-place leases		3,255
Leasing costs		1,037
Below-market lease intangibles		(2,419)
Total purchase price	$	19,621

In connection with this acquisition, the Company assumed an existing $12.1 million commercial mortgage-backed securities (“CMBS”) loan with an interest rate of 4.68% and a term of four years.

Centerville Facility

On July 16, 2020, the Company purchased a medical office building located in Centerville, Iowa (the “Centerville Facility”) and the seller’s interest, as ground lessee, in an existing ground lease, for a purchase price of approximately $5.1 million. At acquisition, the ground lease had a remaining term of approximately 49 years.  Upon closing, the Company assumed the existing lease of the Centerville Facility with Mercy Medical Center-Centerville One St. Joseph Drive, as tenant. At acquisition, the lease had approximately 10.5 years remaining in the initial term, exclusive of renewal options. The following table presents the details of the tangible and intangible assets acquired and liabilities assumed:

Land and site improvements	$	160
Building and tenant improvements		4,410
In-place leases		216
Leasing costs		285
Total purchase price	$	5,071

Fairfax Facility

On July 17, 2020, the Company purchased a medical office building located in Fairfax, Virginia (the “Fairfax Facility”) for a purchase price of approximately $17.9 million. Upon closing, the Company assumed the existing lease of the Fairfax Facility with Spectrum Healthcare Resources, Inc., as tenant. At acquisition, the lease had approximately 9.1 years remaining in the initial term, exclusive of renewal options. The following table presents the details of the tangible and intangible assets acquired and liabilities assumed:

Land and site improvements	$	7,112
Building and tenant improvements		9,621
In-place leases		2,314
Leasing costs		698
Below-market lease intangibles		(1,866)
Total purchase price	$	17,879

Rosedale Facilities

On July 31, 2020, the Company purchased certain condominium units within a medical office building and a medical office building, both located in Rosedale, Maryland (the “Rosedale Facilities”) for a total purchase price of approximately $23.1 million.  Upon closing, the Company assumed eight leases with six tenants at the Rosedale Facilities (the “Rosedale Leases”).  At acquisition, the

Rosedale Leases had a weighted-average remaining lease term of approximately 6.6 years,  exclusive of renewal options.  The following table presents the details of the tangible and intangible assets acquired and liabilities assumed:

Land and site improvements	$	3,423
Building and tenant improvements		17,647
In-place leases		1,063
Leasing costs		892
Above-market lease intangibles		866
Below-market lease intangibles		(785)
Total purchase price	$	23,106

In connection with this acquisition, the Company entered into a loan with FVCbank in the amount of $14.8 million with an annual interest rate of 3.85% and a term of five years.

Lancaster Facility

On September 18, 2020, the Company purchased a medical office building located in Lancaster, Texas (the “Lancaster Facility”) for a purchase price of approximately $6.3 million.  Upon closing, the Company assumed the existing lease at the Lancaster Facility with Biomat USA, Inc., as tenant. At acquisition, the lease had approximately eight and a half years left in the initial term, exclusive of a tenant renewal option.  The following table presents the details of the tangible and intangible assets acquired and liabilities assumed:

Land and site improvements	$	806
Building and tenant improvements		4,385
In-place leases		244
Leasing costs		283
Above-market lease intangibles		587
Total purchase price	$	6,305

Winston-Salem Facility

On September 30, 2020, the Company purchased a medical office building located in Winston-Salem, North Carolina (the “Winston-Salem Facility”) for a total purchase price of approximately $8.5 million. Upon closing, the Company assumed five existing leases at the Winston-Salem Facility (the “Winston-Salem Leases”). At acquisition, the Winston-Salem Leases had a weighted-average remaining term of approximately four years, exclusive of a tenant renewal option. The following table presents the details of the tangible and intangible assets acquired and liabilities assumed:

Land and site improvements	$	1,778
Building and tenant improvements		6,714
In-place leases		581
Leasing costs		167
Below-market lease intangibles		(725)
Total purchase price	$	8,515

Decatur and Jackson Facilities

On October 20, 2020, the Company purchased two medical office buildings, one located in Decatur, Georgia, and one located in Jackson, Tennessee (the “Decatur and Jackson Facilities”) for a total purchase price of approximately $10.9 million. Upon closing, the Company assumed six leases with five tenants at the Decatur and Jackson Facilities (the “Decatur and Jackson Leases”). At acquisition, the Decatur and Jackson Leases had a weighted-average remaining lease term of approximately six years, exclusive of renewal options. The following table presents the details of the tangible and intangible assets acquired and liabilities assumed:

Land and site improvements	$	2,521
Building and tenant improvements		7,436
In-place leases		556
Leasing costs		264
Above-market lease intangibles		135
Below-market lease intangibles		(27)
Total purchase price	$	10,885

Sheboygan and Plymouth Facilities

On October 27, 2020, the Company purchased two medical office buildings, one located in Sheboygan, Wisconsin, and one located in Plymouth, Wisconsin (the “Sheboygan and Plymouth Facilities”) for a total purchase price of approximately $13.8 million. Upon closing, the Company assumed three leases with two tenants at the Sheboygan and Plymouth Facilities (the “Sheboygan and Plymouth Leases”).  At acquisition, the Sheboygan and Plymouth Leases had a weighted-average remaining lease term of approximately five years, exclusive of renewal options. The following table presents the details of the tangible and intangible assets acquired and liabilities assumed:

Land and site improvements	$	1,341
Building and tenant improvements		11,437
In-place leases		756
Leasing costs		290
Total purchase price	$	13,824

Spring Hill and Hudson Facilities

On November 18, 2020, the Company purchased three medical office buildings, two located in Spring Hill, Florida, and one located in Hudson, Florida (the “Spring Hill and Hudson Facilities”) for a total purchase price of approximately $18.2 million. Upon closing, the Company assumed the three existing leases at the Spring Hill and Hudson Facilities with Florida Cancer Specialists & Research Institute LLC, as tenant.  At acquisition, each lease had approximately eight years left in the initial term, exclusive of renewal options. The following table presents the details of the tangible and intangible assets acquired and liabilities assumed:

Land and site improvements	$	3,893
Building and tenant improvements		12,955
In-place leases		831
Leasing costs		539
Total purchase price	$	18,218

Cape Girardeau Facility

On November 23, 2020, the Company purchased an ambulatory surgery center located in Cape Girardeau, Missouri (the “Cape Girardeau Facility”) for a total purchase price of approximately $7.4 million. Upon closing, the Company assumed the existing lease at the Cape Girardeau Facility with Physicians Alliance, L.C., as tenant.  At acquisition, the lease had a remaining term of approximately six years, exclusive of renewal options. The following table presents the details of the tangible and intangible assets acquired and liabilities assumed:

Land and site improvements	$	1,223
Building and tenant improvements		4,865
In-place leases		687
Leasing costs		188
Above-market lease intangibles		387
Total purchase price	$	7,350

Yuma Facilities

On December 1, 2020, the Company purchased two medical office buildings located in Yuma, Arizona (the “Yuma Facilities”) for a total purchase price of approximately $7.0 million. Upon closing, the Company assumed the two existing leases at the Yuma Facilities with Yuma Regional Medical Center, as tenant. At acquisition, the leases had a weighted-average remaining term of approximately four years, exclusive of a renewal option. The following table presents the details of the tangible and intangible assets acquired and liabilities assumed:

Land and site improvements	$	1,350
Building and tenant improvements		4,989
In-place leases		439
Leasing costs		136
Above-market lease intangibles		65
Total purchase price	$	6,979

Las Vegas Facilities

On December 14, 2020, the Company purchased two medical office buildings located in Las Vegas, Nevada (the “Las Vegas Facilities”) for a total purchase price of approximately $7.1 million. Upon closing, the Company entered into new leases with two existing tenants at the Las Vegas Facilities (the “Las Vegas Leases”). The Las Vegas Leases have a term of 12 years, exclusive of renewal options. The following table presents the details of the tangible assets acquired:

Land and site improvements	$	311
Building and tenant improvements		6,813
Total purchase price	$	7,124

Pensacola Facilities

On December 29, 2020, the Company purchased three medical office buildings located in Pensacola, Florida (the “Pensacola Facilities”) for a total purchase price of approximately $9.1 million. Upon closing, the Company assumed the three existing leases with two tenants at the Pensacola Facilities (the “Pensacola Leases”).  At acquisition, the Pensacola Leases had a weighted-average remaining lease term of approximately nine years, exclusive of renewal options. The following table presents the details of the tangible and intangible assets acquired and liabilities assumed:

Land and site improvements	$	2,118
Building and tenant improvements		6,153
In-place leases		456
Leasing costs		325
Total purchase price	$	9,052

Venice Facilities

On December 30, 2020, the Company purchased two medical office buildings located in Venice, Florida (the “Venice Facilities”) for a total purchase price of approximately $7.0 million. Upon closing, the Company assumed the two existing leases at the Venice Facilities with Gulf Coast HMA Physician Management, LLC, as tenant.  At acquisition, each lease had approximately five and a half years left in initial term, with no renewal options. The following table presents the details of the tangible and intangible assets acquired and liabilities assumed:

Land and site improvements	$	1,895
Building and tenant improvements		4,537
In-place leases		387
Leasing costs		156
Total purchase price	$	6,975

Lease Intangible Assets and Liabilities

The following is a summary of the carrying amount of lease intangible assets and liabilities as of the dates presented:

	As of March 31, 2021
			Accumulated
	Cost		Amortization		Net
Assets
In-place leases	$	58,284	$	(16,682)	$	41,602
Above market leases		15,357		(4,514)		10,843
Leasing costs		29,628		(7,178)		22,450
	$	103,269	$	(28,374)	$	74,895
Liability
Below market leases	$	10,279	$	(2,281)	$	7,998

	As of December 31, 2020
			Accumulated
	Cost		Amortization		Net
Assets
In-place leases	$	55,561	$	(14,592)	$	40,969
Above market leases		14,972		(4,023)		10,949
Leasing costs		27,701		(6,284)		21,417
	$	98,234	$	(24,899)	$	73,335
Liability
Below market leases	$	10,072	$	(1,850)	$	8,222

The following is a summary of the acquired lease intangible amortization:

	Three Months Ended
	March 31,
	2021		2020
Amortization expense related to in-place leases	$	2,090	$	1,333
Amortization expense related to leasing costs	$	894	$	588
Decrease in rental revenue related to above market leases	$	491	$	375
Increase in rental revenue related to below market leases	$	431	$	128

As of March 31, 2021, scheduled future aggregate net amortization of the acquired lease intangible assets and liabilities for each year ended December 31 is listed below:

	Net Decrease		Net Increase
	in Revenue		in Expenses
2021 (nine months remaining)	$	(205)	$	8,633
2022		(290)		11,294
2023		(324)		10,332
2024		(104)		8,939
2025		(438)		5,919
Thereafter		(1,484)		18,935
Total	$	(2,845)	$	64,052

As of March 31, 2021, the weighted average amortization periods for asset lease intangibles and liability lease intangibles were 5.2 years and 4.6 years, respectively.

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Credit Facility, Notes Payable and Derivative Instruments

3 Months Ended

Mar. 31, 2021

Credit Facility, Notes Payable and Derivative Instruments

Credit Facility, Notes Payable and Derivative Instruments

Note 4 – Credit Facility, Notes Payable and Derivative Instruments

Credit Facility

For the three months ended March 31, 2021 and 2020, the Company, the Operating Partnership, as borrower, and certain of its subsidiaries (such subsidiaries, the “Subsidiary Guarantors”) were parties to a $600 million syndicated credit facility with BMO Harris Bank N.A. (“BMO”), as administrative agent (the “Credit Facility”). The Credit Facility consisted of a $350 million term loan component (the “Term Loan”) and a $250 million revolver component (the “Revolver”). Amounts outstanding under the Credit Facility bear interest at a floating rate that is based on LIBOR plus a specified margin based on the Company’s leverage.

On May 3, 2021, the Company amended and restated the Credit Facility to among other things, (i) increase the overall capacity of the facility from $600 million to $750 million, consisting of a $400 million revolver component and a $350 million term loan component, (ii) extend the term of the revolver component to April 2025, with two six-month extension options, and extend the maturity of the term loan component to April 2026, and (iii) implement a new pricing matrix. See Note 10 – “Subsequent Events” for a description of the material terms of the amended and restated Credit Facility (the “Amended and Restated Credit Facility”).

The Company has entered into interest rate swaps to hedge its interest rate risk on the Term Loan. For additional information related to the interest rate swaps, see the “Derivative Instruments - Interest Rate Swaps” section herein. The Company also entered into additional interest rate swaps in connection with the Amended and Restated Credit Facility.  See Note 10 – “Subsequent Events” for a description of these additional interest rate swaps.  

During the three months ended March 31, 2021, the Company borrowed $50,100 under the Credit Facility and repaid $151,800, for a net amount repaid of $101,700. During the three months ended March 31, 2020, the Company borrowed $81,700 under the Credit Facility and repaid $3,600 for a net amount borrowed of $78,100. Interest expense incurred on the Credit Facility was $3,852 and $3,585, for the three months ended March 31, 2021 and 2020, respectively.

As of March 31, 2021 and December 31, 2020, the Company had the following outstanding borrowings under the Credit Facility:

	March 31, 2021		December 31, 2020
Revolver	$	73,500	$	175,200
Term Loan		350,000		350,000
Less: Unamortized debt issuance costs		(3,284)		(3,559)
Credit Facility, net	$	420,216	$	521,641

Costs incurred related to the Credit Facility, net of accumulated amortization, are netted against the Company’s “Credit Facility, net of unamortized debt issuance costs” balance in the accompanying Condensed Consolidated Balance Sheets. The Company paid $74 and $44 related to modifications to the Credit Facility as well as fees related to adding properties to the borrowing base during the three months ended March 31, 2021 and 2020, respectively. Amortization expense incurred was $349 and $269 for the three months ended March 31, 2021 and 2020, respectively, and is included in the “Interest Expense” line item in the accompanying Condensed Consolidated Statements of Operations.

Reference Rate Reform

On March 5, 2021, the Financial Conduct Authority (“FCA”) announced that USD LIBOR will no longer be published after June 30, 2023. This announcement has several implications, including setting the spread that may be used to automatically convert contracts from LIBOR to the Secured Overnight Financing Rate ("SOFR").  Additionally, banking regulators are encouraging banks to discontinue new LIBOR debt issuances by December 31, 2021.

The Company anticipates that LIBOR will continue to be available at least until June 30, 2023.  Any changes adopted by the FCA or other governing bodies in the method used for determining LIBOR may result in a sudden or prolonged increase or decrease in reported LIBOR. If that were to occur, our interest payments could change. In addition, uncertainty about the extent and manner of future changes may result in interest rates and/or payments that are higher or lower than if LIBOR were to remain available in its current form.

The Company has interest rate swaps that are indexed to LIBOR and is monitoring and evaluating the related risks.  These risks arise in connection with transitioning contracts to an alternative rate, including any resulting value transfer that may occur, and are likely

to vary by contract. The value of loans, securities, or derivative instruments tied to LIBOR, as well as interest rates on our current or future indebtedness, may also be impacted if LIBOR is limited or discontinued.  For some instruments the method of transitioning to an alternative reference rate may be challenging, especially if the Company cannot agree with the respective counterparty about how to make the transition.

While the Company expects LIBOR to be available in substantially its current form until at least the end of June 30, 2023, it is possible that LIBOR will become unavailable prior to that point. This could result, for example, if sufficient banks decline to make submissions to the LIBOR administrator. In that case, the risks associated with the transition to an alternative reference rate will be accelerated and magnified.

Alternative rates and other market changes related to the replacement of LIBOR, including the introduction of financial products and changes in market practices, may lead to risk modeling and valuation challenges, such as adjusting interest rate accrual calculations and building a term structure for an alternative rate.

The introduction of an alternative rate also may create additional basis risk and increased volatility as alternative rates are phased in and utilized in parallel with LIBOR.

Adjustments to systems and mathematical models to properly process and account for alternative rates will be required, which may strain the model risk management and information technology functions and result in substantial incremental costs for the Company.

Notes Payable, Net of Debt Issuance Costs

The Company’s notes payable, net, includes four loans: (1) the Rosedale Loan, (2) the Dumfries Loan, (3) the Cantor Loan, and (4) the West Mifflin Loan, described in detail below. The following table sets forth the aggregate balances of these loans as of March 31, 2021 and December 31, 2020.

	March 31, 2021		December 31, 2020
Notes payable, gross	$	66,349	$	66,349
Unamortized debt issuance costs		(772)		(835)
Cumulative principal repayments		(767)		(577)
Notes payable, net	$	64,810	$	64,937

Amortization expense incurred related to the debt issuance costs was $63 and $33 for the three months ended March 31, 2021 and 2020, respectively, and is included in the “Interest Expense” line item in the accompanying Condensed Consolidated Statements of Operations.

Rosedale Loan

On July 31, 2020, in connection with its acquisition of the Rosedale Facilities, the Company, through certain of its wholly owned subsidiaries, as borrowers, entered into a loan with FVCbank with a principal balance of $14,800 (the “Rosedale Loan”). The Rosedale Loan has an annual interest rate of 3.85% and matures on July 31, 2025 with principal and interest payable monthly based on a 25-year amortization schedule. The Company, at its option, may prepay the loan, subject to a prepayment fee.

The Company made principal payments of $91 during the three months ended March 31, 2021. The loan balance as of March 31, 2021 was $14,600.  Interest expense incurred on this loan was $141 for the three months ended March 31, 2021.

As of March 31, 2021, scheduled principal payments due for each year ended December 31 were as follows:

2021 (nine months remaining)	$	270
2022		376
2023		391
2024		405
2025		13,158
Total	$	14,600

Dumfries Loan

On April 27, 2020, in connection with its acquisition of the Dumfries Facility, the Company, through a wholly-owned subsidiary, assumed a CMBS loan with a principal amount of $12,074 (the “Dumfries Loan”). The Dumfries Loan has an annual interest rate of 4.68% and matures on June 1, 2024 with principal and interest payable monthly based on a ten-year amortization schedule. The Company, at its option, may prepay the loan, subject to a prepayment premium.

The Company made principal payments of $69 during the three months ended March 31, 2021. The loan balance as of March 31, 2021 was $11,830.  Interest expense incurred on this loan was $138 for the three months ended March 31, 2021.

As of March 31, 2021, scheduled principal payments due for each year ended December 31 were as follows:

2021 (nine months remaining)	$	206
2022		288
2023		302
2024		11,034
Total	$	11,830

Cantor Loan

On March 31, 2016, through certain of its wholly owned subsidiaries (the “GMR Loan Subsidiaries”), the Company entered into a $32,097 CMBS loan (the “Cantor Loan”). The Cantor Loan has a maturity date of April 6, 2026 and an annual interest rate of 5.22%. The Cantor Loan required interest-only payments through March 31, 2021 and following that date, requires principal and interest based on a 30-year amortization schedule. Prepayment can only occur within four months prior to the maturity date, subject to earlier defeasance. The Cantor Loan is secured by the assets of the GMR Loan Subsidiaries.

The loan balance as of March 31, 2021 and December 31, 2020 was $32,097. Interest expense incurred on this loan was $419   and $423 for the three months ended March 31, 2021 and 2020, respectively.

As of March 31, 2021, scheduled principal payments due for each year ended December 31 were as follows:

2021 (nine months remaining)	$	282
2022		447
2023		471
2024		492
2025		523
Thereafter		29,882
Total	$	32,097

West Mifflin Loan

On September 25, 2015, the Company, through a wholly-owned subsidiary, as borrower, entered into a $7,378 term loan with Capital One. On September 25, 2020, the Company and Capital One amended the terms of the loan to extend the maturity date to September 25, 2021 and increase the interest rate to 4.25% per annum. The West Mifflin facility serves as collateral for the loan.

The Company made principal payments of $30 and $35 during the three months ended March 31, 2021 and 2020, respectively. The loan balance as of March 31, 2021 and December 31, 2020 was $7,055 and $7,085, respectively. Interest expense incurred on this loan was $75 and $68 for the three months ended March 31, 2021 and 2020, respectively.

Derivative Instruments - Interest Rate Swaps

As of March 31, 2021, the Company had the following six interest rate swaps that are used to manage its interest rate risk and fix the LIBOR component of certain of its floating rate debt on a weighted average basis at 1.91% through August 2023:

Counterparty	Notional Amount		Fixed LIBOR Rate	Maturity
Wells Fargo Bank, N.A.	$	50 million	0.16%	August 2023
BMO		100 million	2.88%	August 2023
BMO		90 million	1.21%	August 2024
Truist Bank		40 million	1.21%	August 2024
Truist Bank		40 million	2.93%	August 2024
Citizens Bank, National Association		30 million	2.93%	August 2024
Total/Weighted Average	$	350 million	1.91%

In accordance with the provisions of ASC Topic 815, the Company records the swaps either as an asset or a liability measured at its fair value at each reporting period. When hedge accounting is applied, the change in the fair value of derivatives designated and that qualify as cash flow hedges is (i) recorded in accumulated other comprehensive loss in the equity section of the Company’s Condensed Consolidated Balance Sheets and (ii) subsequently reclassified into earnings as interest expense for the period that the hedged forecasted transactions affect earnings. If specific hedge accounting criteria are not met, changes in the Company’s derivative instruments’ fair value are recognized currently as an adjustment to net income.

The Company’s interest rate swaps are not traded on an exchange. The Company’s interest rate swaps are recorded at fair value based on a variety of observable inputs including contractual terms, interest rate curves, yield curves, measure of volatility, and correlations of such inputs. The Company measures its derivatives at fair value on a recurring basis based on the expected size of future cash flows on a discounted basis and incorporating a measure of non-performance risk. The fair values are based on Level 2 inputs within the framework of ASC Topic 820, “Fair Value Measurement.” The Company considers its own credit risk, as well as the credit risk of its counterparties, when evaluating the fair value of its derivative instruments.

The fair value of the Company’s interest rate swaps was a net liability of $14,467 and $18,086 as of March 31, 2021 and December 31, 2020, respectively. The gross balances are included in the “Derivative Asset” and “Derivative Liability” line items on the Company’s Condensed Consolidated Balance Sheets as of March 31, 2021 and December 31, 2020, respectively.

The table below details the components of the loss presented on the accompanying Condensed Consolidated Statements of Comprehensive Income (Loss) recognized on the Company’s interest rate swaps designated as cash flow hedges for the three months ended March 31, 2021 and 2020:

	Three Months Ended March 31,
	2021		2020
Amount of (gain) loss recognized in other comprehensive income (loss)	$	(2,082)	$	14,466
Amount of loss reclassified from accumulated other comprehensive loss into interest expense		(1,549)		(508)
Total change in accumulated other comprehensive loss	$	(3,631)	$	13,958

During the next twelve months, the Company estimates that an additional $6,173 will be reclassified as an increase to interest expense. Additionally, during the three months ended March 31, 2021, the Company recorded total interest expense in its Condensed Consolidated Statements of Operations of $5,037.

In connection with the Amended and Restated Credit Facility, the Company entered into additional interest rate swaps. See Note – 10 “Subsequent Events” for a description of those additional interest rate swaps.  

Weighted-Average Interest Rate and Term

The weighted average interest rate and term of the Company’s debt was 3.66% and 2.58 years at March 31, 2021, compared to 3.17% and 2.79 years as of December 31, 2020.

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Equity

3 Months Ended

Mar. 31, 2021

Equity

Equity

Note 5 – Equity

Preferred Stock

The Company’s charter authorizes the issuance of 10,000 shares of preferred stock, par value $0.001 per share. As of March 31, 2021 and December 31, 2020, there were 3,105 shares of Series A Cumulative Redeemable Preferred Stock (“Series A Preferred Stock”), issued and outstanding. The Series A Preferred Stock has a liquidation preference of $25 per share.

Preferred stock dividend activity for the three months ended March 31, 2021 is summarized in the following table:

		Applicable		Quarterly			Dividends
Date Announced	Record Date	Quarter	Payment Date	Dividend			per Share
December 16, 2020	January 15, 2021	Q4 2020	February 1, 2021	$	1,455		$	0.46875
March 3, 2021	April 15, 2021	Q1 2021	April 30, 2021	$	1,455	(1)	$	0.46875

⁽¹⁾ Two months of this amount, equal to $970, was accrued at March 31, 2021.

The holders of the Series A Preferred Stock are entitled to receive dividend payments only when, as and if declared by the Company’s board of directors (the “Board”) (or a duly authorized committee of the Board). Dividends will accrue or be payable in cash from the original issue date, on a cumulative basis, quarterly in arrears on each dividend payment date at a fixed rate per annum equal to 7.50% of the liquidation preference of $25.00 per share (equivalent to $1.875 per share on an annual basis). Dividends on the Series A Preferred Stock will be cumulative and will accrue whether or not (i) funds are legally available for the payment of those dividends, (ii) the Company has earnings or (iii) those dividends are declared by the Board. The quarterly dividend payment dates on the Series A Preferred Stock are January 31, April 30, July 31 and October 31 of each year. During each of the three-month periods ended March 31, 2021 and 2020, the Company paid preferred dividends of $1,455.

Common Stock

The Company has 500,000 authorized shares of common stock, $0.001 par value. As of March 31, 2021 and December 31, 2020, there were 60,794 and 49,461 outstanding shares of common stock, respectively.

Common stock dividend activity for the three months ended March 31, 2021 is summarized in the following table:

		Applicable		Dividend		Dividends
Date Announced	Record Date	Quarter	Payment Date	Amount(1)		per Share
December 16, 2020	December 28, 2020	Q4 2020	January 11, 2021	$	10,573	$	0.20
March 3, 2021	March 24, 2021	Q1 2021	April 8, 2021	$	13,260	$	0.205

⁽¹⁾ Includes distributions on outstanding LTIP Units and OP Units.

During the three months ended March 31, 2021 and 2020, the Company paid total dividends on its common stock, LTIP Units and OP Units in the aggregate amount of $11,315 and $10,031, respectively.

As of March 31, 2021 and December 31, 2020, the Company had accrued dividend balances of $252 and $927 for dividends payable on the aggregate annual and long-term LTIP Units that are subject to retroactive receipt of dividends on the amount of LTIP Units ultimately earned. During the three months ended March 31, 2021, $67 of dividends were accrued and $742 of dividends were paid related to these units. During the three months ended March 31, 2020, $279 of dividends were accrued and $490 of dividends were paid related to these units.

The amount of the dividends paid to the Company’s stockholders is determined by the Board and is dependent on a number of factors, including funds available for payment of dividends, the Company’s financial condition and capital expenditure requirements except that, in accordance with the Company’s organizational documents and Maryland law, the Company may not make dividend distributions that would: (i) cause it to be unable to pay its debts as they become due in the usual course of business; (ii) cause its total assets to be less than the sum of its total liabilities plus senior liquidation preferences; or (iii) jeopardize its ability to maintain its qualification as a REIT.

Capital Raising Activity

On March 18, 2021, the Company closed an underwritten public offering of its common stock, including the related option to purchase additional shares granted to the underwriters. These transactions resulted in the issuance of 8,625 shares of the Company’s common stock at a public offering price of $13.30 per share, resulting in net proceeds to the Company of $109,550.  

During the three months ended March 31, 2021, the Company generated net proceeds of $34,880 through at-the-market ("ATM") equity issuances of 2,709 shares of the Company’s common stock at an average offering price of $13.07 per share.

OP Units

During the three months ended March 31, 2021, there were no OP Unit redemptions. During year ended December 31, 2020, four OP Unit holders redeemed an aggregate of 1,379 OP Units for shares of the Company’s common stock with an aggregate redemption value of $17,882.

As of March 31, 2021 and December 31, 2020, there were 1,764 OP Units issued and outstanding with an aggregate value of $9,999. The OP Unit value at issuance and redemption is based on the Company’s closing share price on the date of the respective transaction and is included as a component of noncontrolling interest equity in the Company’s Condensed Consolidated Balance Sheets as of March 31, 2021 and December 31, 2020. The Company has sufficient shares of common stock authorized pursuant to its charter to cover the redemption of outstanding OP Units.

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Related Party Transactions

3 Months Ended

Mar. 31, 2021

Related Party Transactions

Related Party Transactions

Note 6 – Related Party Transactions

Management Agreement

On July 9, 2020, the Company completed the management internalization transaction. Prior to the completion of this transaction, the Company was subject to a management agreement dated July 1, 2016, by and between the Company and its former advisor.

Management Fees and Accrued Management Fees

For the three months ended March 31, 2020, management fees of $2,002 were incurred and expensed by the Company. No incentive management fee was incurred by the Company during the three months ended March 31, 2020.

Related Party Balances

The due from related parties balance as of March 31, 2021 and December 30, 2020 was $229 and $103, respectively. These balances primarily consist of taxes paid on behalf of LTIP Unit holders that are reimbursable to the Company. The Company had no amounts due to related parties as of March 31, 2021 and December 31, 2020.

Pro Forma Financial Information

On July 9, 2020, the Company acquired all of the outstanding shares of capital stock of the parent company of its former advisor. The accompanying Condensed Consolidated Statements of Operations for the three months ended March 31, 2021 include the operations of the business acquired for the full three-month period. The table below presents the unaudited revenue and net income attributable to common stockholders on a pro forma basis for the three months ended March 31, 2020, as if the transaction occurred on January 1, 2020. The pro forma results are not necessarily indicative of the results that would have occurred if the business combination

had occurred on the first day of the period presented, nor does the pro forma information purport to represent the results of operations for future periods.

	Three Months Ended
	March 31, 2020
	(unaudited, in thousands)
Pro forma total revenue	$	21,649
Pro forma net income attributable to common stockholders	$	1,942

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Stock-Based Compensation

3 Months Ended

Mar. 31, 2021

Stock-Based Compensation

Stock-Based Compensation

Note 7 – Stock-Based Compensation

2016 Equity Incentive Plan

The 2016 Equity Incentive Plan, as amended (the “Plan”), is intended to assist the Company and its affiliates in recruiting and retaining employees of the Company, members of the Board, executive officers of the Company, and individuals who provide services to the Company and its affiliates.

The Plan is intended to permit the grant of both qualifying and non-qualified options and the grant of stock appreciation rights, restricted stock, unrestricted stock, awards of restricted stock units, performance awards and other equity-based awards (including LTIP Units). Based on the grants outstanding as of March 31, 2021, there were 34 shares of common stock that remain available to be granted under the Plan. Units subject to awards under the Plan that are forfeited, cancelled, lapsed, settled in cash or otherwise expired (excluding shares withheld to satisfy exercise prices or tax withholding obligations) are available for grant.

Time-Based Grants

During the three months ended March 31, 2021, pursuant to the recommendation of the Compensation Committee of the Board (the “Compensation Committee”), the Board approved the following LTIP Unit activity:

		Number of
Date	Description	Units Issued	Vesting Dates
March 2, 2021	Final awards under the 2018 Long-Term Incentive Plan	220	50% on March 2, 2021; and
			50% on March 2, 2022
March 2, 2021	Final awards under the 2020 Annual Incentive Plan	267	50% on March 2, 2021; and
			50% on March 2, 2022

A detail of the Company’s outstanding time-based LTIP Units as of March 31, 2021 is as follows:

Vested units	1,288
Unvested units	838
LTIP Units outstanding as of March 31, 2021	2,126

Performance Based Awards

The Board has approved annual performance-based LTIP awards (“Annual Awards”) and long-term performance-based LTIP awards (“Long-Term Awards”) to the executive officers and other employees of the Company.  As described below, the Annual Awards have one-year performance periods and the Long-Term Awards have three-year performance periods. In addition to meeting specified performance metrics, vesting in both the Annual Awards and the Long-Term Awards is subject to service requirements.

A detail of the Company’s Long-Term Awards under the 2019 and 2020 programs, and the Annual Awards and Long-Term Awards under the 2021 program as of March 31, 2021 is as follows:

2019 Long-Term Awards	82
2020 Long-Term Awards	70
2021 Annual Awards (1)	92
2021 Long-Term Awards (2)	76
Total target performance awards as of March 31, 2021	320

(1) Approved by the Board on March 2, 2021. The number of target LTIP Units was based on the average closing price of the Company’s common stock reported on the New York Stock Exchange (“NYSE”) over the 15 trading days preceding the grant date.  

(2) Approved by the Board on March 2, 2021. The number of target LTIP Units was based on the fair value of the Long-Term Awards as determined by an independent valuation consultant.

Annual Awards. The Annual Awards are subject to the terms and conditions of LTIP Annual Award Agreements (“LTIP Annual Award Agreements”) between the Company and each grantee.

The Compensation Committee and Board established performance goals for the year ending December 31, 2021, as set forth in the 2021 LTIP Annual Award Agreements (the “Performance Goals”) that will be used to determine the number of LTIP Units earned by each grantee. As of March 31, 2021, management estimated that the Performance Goals would be met at a 100% level and, accordingly, estimated that 100% of the 2021 target Annual Awards were expected to be earned at the end of the performance period. Cumulative stock-based compensation expense during the three months ended March 31, 2021 reflects management’s estimate that 100% of these awards will be earned. As soon as reasonably practicable following the first anniversary of the Annual Awards grant date, the Compensation Committee and Board will determine the extent to which the Company has achieved each of the Performance Goals (expressed as a percentage) and, based on such determination, will calculate the number of LTIP Units that each grantee is entitled to receive. Each grantee may earn up to 150% of the number of his/her target LTIP Units. Any 2021 Annual Award LTIP Units that are not earned will be forfeited and cancelled.

Vesting. LTIP Units that are earned as of the end of the applicable performance period will be subject to vesting, subject to continued employment through each vesting date, in two installments as follows: 50% of the earned LTIP Units will become vested on the date in 2022 that the Board approves the number of LTIP Units to be awarded pursuant to the performance components set forth in the 2021 LTIP Annual Award Agreements and 50% of the earned LTIP Units become vested on the one year anniversary of the initial vesting date. Vesting may be accelerated under certain circumstances such as a “change-in-control” transaction or a “qualified termination” event.

Distributions. Distributions equal to the dividends declared and paid by the Company will accrue during the applicable performance period on the maximum number of LTIP Units that the grantee could earn and will be paid with respect to all of the earned LTIP Units at the conclusion of the applicable performance period, in cash or by the issuance of additional LTIP Units at the discretion of the Compensation Committee.

Long-Term Awards. The Long-Term Awards are subject to the terms and conditions of their related LTIP Long-Term Award Agreements (collectively the “LTIP Long-Term Award Agreements”) between the Company and each grantee. The number of LTIP Units that each grantee is entitled to earn under the LTIP Long-Term Award Agreements will be determined following the conclusion of a three-year performance period based on the Company’s total stockholder return (“TSR”), which is determined based on a combination of appreciation in stock price and dividends paid during the performance period. Each grantee may earn up to 200% of the number of target LTIP Units covered by the grantee’s Long-Term Award. Any target LTIP Units that are not earned will be forfeited and cancelled. The number of LTIP Units earned under the Long-Term Awards will be determined as soon as reasonably practicable following the end of the applicable three-year performance period based on the Company’s TSR on an absolute basis (as to 75% of the Long-Term Award) and relative to the SNL Healthcare REIT Index (as to 25% of the Long-Term Award).

Vesting. LTIP Units that are earned as of the end of the applicable three-year performance period will be subject to forfeiture restrictions that will lapse (“vesting”), subject to continued employment through each vesting date as follows; 50% of the earned LTIP Units will vest upon the third anniversary of the respective grant dates and the remaining 50% will vest on the fourth anniversary of the respective grant dates. Vesting may be accelerated under certain circumstances such as a “change-in-control” transaction or a “qualified termination” event.

Distributions. Pursuant to the LTIP Long-Term Award Agreements, distributions equal to the dividends declared and paid by the Company will accrue during the applicable performance period on the maximum number of LTIP Units that the grantee could earn and will be paid with respect to all of the earned LTIP Units at the conclusion of the applicable performance period, in cash or by the issuance of additional LTIP Units at the discretion of the Compensation Committee.

Stock-Based Compensation Expense

The Company’s prospective compensation expense for all unvested LTIP Units, Annual Awards, and Long-Term Awards is recognized using the adoption date fair value of the awards, with no remeasurement required. Compensation expense for future LTIP Unit grants, Annual Awards, and Long-Term Awards is based on the grant date fair value of the units/awards, with no subsequent remeasurement required.

As the Long-Term Awards involve market-based performance conditions, the Company utilizes a Monte Carlo simulation to provide a grant date fair value for expense recognition. The Monte Carlo simulation is a generally accepted statistical technique used, in this instance, to simulate a range of possible future stock prices for the Company and the members of the SNL Healthcare REIT Index (the “Index”) over the Performance Periods. The purpose of this modeling is to use a probabilistic approach for estimating the fair value of the performance share award.

The assumptions used in the Monte Carlo simulation include beginning average stock price, valuation date stock price, expected volatilities, correlation coefficients, risk-free rate of interest, and expected dividend yield. The beginning average stock price is the beginning average stock price for the Company and each member of the Index for the five trading days leading up to the grant date of the  Long-Term Award. The valuation date stock price is the closing stock price of the Company and each of the peer companies in the Index on the grant dates of the Long-Term Awards. The expected volatilities are modeled using the historical volatilities for the Company and the members of the Index. The correlation coefficients are calculated using the same data as the historical volatilities. The risk-free rate of interest is taken from the U.S. Treasury website and relates to the expected life of the remaining performance period on valuation or revaluation. Lastly, the dividend yield assumption is 0.0%, which is mathematically equivalent to reinvesting dividends in the issuing entity, which is part of the Company’s award agreement assumptions.

Below are details regarding certain of the assumptions for the Long-Term Awards using Monte Carlo simulations:

	2021 Long-Term			2020 Long-Term			2019 Long-Term
	Awards			Awards			Awards
Fair value	$	14.86		$	13.47		$	10.07
Target awards		76			70			82
Volatility		42.37	%		28.75	%		31.7	%
Risk-free rate		0.26	%		0.72	%		2.5	%
Dividend assumption		reinvested			reinvested			reinvested
Expected term in years		3			3			3

The Company incurred stock compensation expense of $1,715 and $922 for the three months ended March 31, 2021 and 2020, respectively, related to the grants awarded under the Plan. Compensation expense is included within “General and Administrative” expense in the Company’s Condensed Consolidated Statements of Operations.

As of March 31, 2021, total unamortized compensation expense related to these awards of approximately $8.5 million is expected to be recognized over a weighted average remaining period of 2.3 years.

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Leases

3 Months Ended

Mar. 31, 2021

Leases

Leases

Note 8 – Leases

The Company operates as both a lessor and a lessee. As a lessor, the Company is required under ASC Topic 842 to account for leases using an approach that is substantially similar to ASC Topic 840’s guidance for operating leases and other leases such as sales-type leases and direct financing leases. In addition, ASC Topic 842 requires lessors to capitalize and amortize only incremental direct leasing costs. As a lessee, the Company is required under the new standard to apply a dual approach, classifying leases, such as ground leases, as either finance or operating leases based on the principle of whether or not the lease is effectively a financed purchase. This classification determines whether lease expense is recognized based on an effective interest method or on a straight-line basis over the

term of the lease. ASC Topic 842 also requires lessees to record a right of use asset and a lease liability for all leases with an initial term of greater than a year regardless of their classification. The Company has also elected the practical expedient not to recognize right of use assets and lease liabilities for leases with a term of a year or less.

Information as Lessor Under ASC Topic 842

To generate positive cash flow, as a lessor, the Company leases its facilities to tenants in exchange for fixed monthly payments that cover rent, property taxes, insurance and certain cost recoveries, primarily common area maintenance (“CAM”). The Company’s leases were determined to be operating leases and have a portfolio-average-lease-years remaining of approximately 10 years. Payments from the Company’s tenants for CAM are considered nonlease components that are separated from lease components and are generally accounted for in accordance with the revenue recognition standard. However, the Company qualified for and elected the practical expedient related to combining the components because the lease component is classified as an operating lease and the timing and pattern of transfer of CAM income, which is not the predominant component, is the same as the lease component, for all asset classes. As such, consideration for CAM is accounted for as part of the overall consideration in the lease. Payments from customers for property taxes and insurance are considered non-components of the lease and therefore no consideration is allocated to them because they do not transfer a good or service to the customer. Fixed contractual payments from the Company’s leases are recognized on a straight-line basis over the terms of the respective leases. This means that, with respect to a particular lease, actual amounts billed in accordance with the lease during any given period may be higher or lower than the amount of rental revenue recognized for the period. Straight-line rental revenue is commenced when the tenant assumes control of the leased premises. Accrued straight-line rents receivable represents the amount by which straight-line rental revenue exceeds rents currently billed in accordance with lease agreements.

Some of the Company’s leases are subject to annual changes in the Consumer Price Index (“CPI”). Although increases in CPI are not estimated as part of the Company’s measurement of straight-line rental revenue, for leases with base rent increases based on CPI, the amount of rent revenue recognized is adjusted in the period the changes in CPI are measured and effective. Additionally, some of the Company’s leases have extension options.

Initial direct costs, primarily commissions, related to the leasing of our facilities are capitalized when material as incurred. Capitalized leasing costs are amortized on a straight-line basis over the remaining useful life of the respective leases. All other costs to negotiate or arrange a lease are expensed as incurred.

Lease-related receivables, which include accounts receivable and accrued straight-line rents receivable, are reduced for credit losses, if applicable. The Company regularly evaluates the collectability of its lease-related receivables. The Company’s evaluation of collectability primarily consists of reviewing past due account balances and considering such factors as the credit quality of our tenant, historical trends of the tenant and changes in tenant payment terms. If the Company’s assumptions regarding the collectability of lease-related receivables prove incorrect, the Company could experience credit losses in excess of what was recognized in rental and other revenues.

The Company recognized $27,325 and $21,533 of rental revenue related to operating lease payments for the three months ended March 31, 2021 and 2020, respectively. Of these amounts, $1,374 and $1,484 relate to variable rental revenue. The aggregate annual cash to be received by the Company on the noncancelable operating leases related to its portfolio as of March 31, 2021 is as follows for the subsequent years ended December 31:

2021 (nine months remaining)	$	70,193
2022		93,549
2023		91,097
2024		83,921
2025		72,268
Thereafter		388,529
Total	$	799,557

Information as Lessee Under ASC Topic 842

The Company has six buildings located on land that is subject to operating ground leases with a weighted average remaining term of approximately 41 years. Rental payments on these leases are adjusted periodically based on either the CPI or on a pre-determined schedule. The monthly payments on a pre-determined schedule are recognized on a straight-line basis over the terms of the respective

leases. Changes in the CPI are not estimated as part of our measurement of straight-line rental expense. The Company used a weighted average discount rate of approximately 7.5%, which was derived, using a portfolio approach, from our assessment of the credit quality of the Company and adjusted to reflect secured borrowing, estimated yield curves and long-term spread adjustments over appropriate tenors. Some of the Company’s ground leases contain extension options and, where we determined it was reasonably certain that an extension would occur, they were included in our calculation of the right of use asset and liability. The Company recognized approximately $36 and $42 of ground lease expense, of which $30 and $16 was paid in cash, during the three months ended March 31, 2021 and 2020, respectively.

The following table sets forth the undiscounted cash flows of our scheduled obligations for future lease payments on operating ground leases at March 31, 2021, and a reconciliation of those cash flows to the operating lease liability at March 31, 2021:

2021 (nine months remaining)	$	290
2022		409
2023		174
2024		129
2025		129
Thereafter		4,498
Total		5,629
Discount		(2,733)
Lease liability	$	2,896

Tenant Concentration

During the three months ended March 31, 2021, the Company’s rental revenues were derived from 117 tenants leasing 90 facilities. During this period there were no tenants with rental revenue that exceeded 10% of the Company’s rental revenue.

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Commitments and Contingencies

3 Months Ended

Mar. 31, 2021

Commitments and Contingencies

Commitments and Contingencies

Note 9 – Commitments and Contingencies

Litigation

The Company is not presently subject to any material litigation nor, to its knowledge, is any material litigation threatened against the Company, which if determined unfavorably to the Company, would have a material adverse effect on the Company’s financial position, results of operations, or cash flows.

Environmental Matters

The Company follows a policy of monitoring its properties for the presence of hazardous or toxic substances. While there can be no assurance that a material environmental liability does not exist at its properties, the Company is not currently aware of any environmental liability with respect to its properties that would have a material effect on its financial position, results of operations, or cash flows. Additionally, the Company is not aware of any material environmental liability or any unasserted claim or assessment with respect to an environmental liability that management believes would require additional disclosure or the recording of a loss contingency.

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Subsequent Events

3 Months Ended

Mar. 31, 2021

Subsequent Events

Subsequent Events

Note 10 – Subsequent Events

On May 3, 2021, the Company entered into the Amended and Restated Credit Facility to, among other things, (i) increase the overall capacity of the facility from $600 million to $750 million, consisting of a $400 million revolver component and a $350 million term loan component, (ii) convert the facility from a secured facility to an unsecured facility, (iii) extend the maturity of the revolver component to May 2025, with two six-month extension options, and extend the maturity of the term loan component to May 2026, and (iv) implement a new pricing matrix. The Amended and Restated Credit Facility also includes a $500 million accordion feature.

The Amended and Restated Credit Facility has a number of financial covenants, including, among other things, the following as of the end of each fiscal quarter, (i) a maximum consolidated unsecured leverage ratio of less than 60%, (ii) a maximum consolidated secured leverage ratio of less than 30%, (iii) a maximum consolidated secured recourse leverage ratio of less than 10%, (iv) a minimum fixed charge coverage ratio of 1.50:1.00, (v) a minimum unsecured interest coverage ratio of 1.50:1.00, (vi) a maximum consolidated leverage ratio of less than 60%, and (vii) a minimum net worth of $345 million plus 75% of all net proceeds raised through equity

offerings subsequent to December 31, 2020. As of May 3, 2021, management believed it was in compliance with all of the financial and non-financial covenants contained in the Amended and Restated Credit Facility.

In addition, on May 4, 2021, the Company entered into five forward starting interest rate swaps that will fix the LIBOR component on the term loan component of the Amended and Restated Credit Facility through May 2026. Currently, the Company’s interest rate swaps fix the LIBOR component of the term loan at a rate of 1.91% through August 2023. Subsequently, from August 2023 to August 2024 the LIBOR component of the term loan rate will be fixed at 1.61%.  Finally, from August 2024 to May 2026 the LIBOR component of the term loan rate will be fixed at 1.45%.

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Summary of Significant Accounting Policies (Policies)

3 Months Ended

Mar. 31, 2021

Summary of Significant Accounting Policies

Basis of presentation

Basis of presentation

The accompanying condensed consolidated financial statements are unaudited and include the accounts of the Company, including the Operating Partnership and its wholly owned subsidiaries. The accompanying condensed consolidated financial statements have been prepared in accordance with U.S. generally accepted accounting principles (“GAAP”) and the rules and regulations of the U.S. Securities and Exchange Commission (“SEC”). Certain information and footnote disclosures required for annual consolidated financial statements have been condensed or excluded pursuant to SEC rules and regulations. Accordingly, the accompanying condensed consolidated financial statements do not include all the information and footnotes required by GAAP for complete consolidated financial statements and should be read in conjunction with the audited consolidated financial statements and notes thereto for the year ended December 31, 2020. In the opinion of management, all adjustments of a normal and recurring nature necessary for a fair presentation of the condensed consolidated financial statements for the interim periods have been made.

Principles of Consolidation

Principles of Consolidation

The accompanying condensed consolidated financial statements include the accounts of the Company and its  subsidiaries. The Company presents the portion of any equity it does not own but controls (and thus consolidates) as noncontrolling interest. Noncontrolling interest in the Company includes the LTIP Units and the OP Units held by third parties. Refer to Note 5 – “Equity” and Note 7 – “Stock-Based Compensation” for additional information regarding the OP Units and LTIP Units.

The Company classifies noncontrolling interest as a component of consolidated equity on its Condensed Consolidated Balance Sheets, separate from the Company’s total equity. The Company’s net income or loss is allocated to noncontrolling interests based on the respective ownership or voting percentage in the Operating Partnership associated with such noncontrolling interests and is removed from consolidated income or loss on the Condensed Consolidated Statements of Operations in order to derive net income or loss attributable to common stockholders. The noncontrolling ownership percentage is calculated by dividing the aggregate number of LTIP Units and OP Units by the total number of units and shares outstanding. Any future issuances of additional LTIP Units or OP Units would change the noncontrolling ownership interest.

Use of Estimates

Use of Estimates

The preparation of the condensed consolidated financial statements in conformity with GAAP requires the Company to make estimates and assumptions that affect the amounts reported in the condensed consolidated financial statements and footnotes. Actual results could differ from those estimates.

Investment in Real Estate

Investment in Real Estate

The Company determines when an acquisition meets the definition of a business or alternatively should be accounted for as an asset acquisition in accordance with Accounting Standard Codification (“ASC”) Topic 805 “Business Combinations” (“ASC Topic 805”), which requires that, when substantially all of the fair value of an acquisition is concentrated in a single identifiable asset or a group of similar identifiable assets, the asset or group of similar identifiable assets does not meet the definition of a business and therefore is required to be accounted for as an asset acquisition. Transaction costs are capitalized for asset acquisitions and expensed as incurred for business combinations. All our facility acquisitions for the three months ended March 31, 2021 and 2020 have been accounted for as asset acquisitions because substantially all the fair value of the gross assets the Company acquired were concentrated in a single asset or group of similar identifiable assets.

For asset acquisitions that are “owner occupied” (meaning that the seller either is the tenant or controls the tenant), the purchase price, including capitalized acquisition costs, will be allocated to land and building based on their relative fair values with no value allocated to intangible assets or liabilities. For asset acquisitions that are not “owner occupied,” the Company will allocate the purchase price to tangible assets and any intangible assets acquired or liabilities assumed based on their relative fair values. Fair value is determined based upon the guidance of ASC Topic 820, “Fair Value Measurements and Disclosures,” and generally are determined using Level 2 inputs, such as rent comparables, sales comparables, and broker indications. Although Level 3 Inputs are utilized, they are minor in comparison to the Level 2 data used for the primary assumptions. The determination of fair value involves the use of significant judgment and estimates. We make estimates to determine the fair value of the tangible and intangible assets acquired and liabilities assumed using information obtained from multiple sources, including preacquisition due diligence, and we routinely utilize the assistance of a third-party appraiser.

Revenue Recognition

Revenue Recognition

The Company’s operations primarily consist of rental revenue earned from tenants under leasing arrangements which provide for minimum rent and escalations. The leases have been accounted for as operating leases. For operating leases with contingent rental escalators, revenue is recorded based on the contractual cash rental payments due during the period. Revenue from leases with fixed annual rental escalators are recognized on a straight-line basis over the initial lease term, subject to a collectability assessment, with the difference between the contractual rental receipts and the straight-line amounts recorded as a “deferred rent receivable.” Additionally, the Company recognizes “expense recoveries” revenue, which represents revenue recognized related to tenant reimbursement of real estate taxes, insurance, and certain other operating expenses (“tenant reimbursements”). The Company recognizes these reimbursements and related expenses on a gross basis in its Condensed Consolidated Statements of Operations.

Cash and Cash Equivalents and Restricted Cash

Cash and Cash Equivalents and Restricted Cash

The Company considers all demand deposits, cashier’s checks, money market accounts, and certificates of deposit with a maturity of three months or less to be cash equivalents. Amounts included in restricted cash represent (1) certain security deposits received from tenants at the inception of their leases; (2) cash required to be held by a third-party lender as a reserve for debt service; and (3) funds held by the Company related to tenant reimbursements. The following table provides a reconciliation of the Company’s cash and cash equivalents and restricted cash that sums to the total of those amounts at the end of the periods presented on the Company’s accompanying Condensed Consolidated Statements of Cash Flows:

	As of March 31,
	2021		2020
Cash and cash equivalents	$	5,304	$	11,340
Restricted cash		6,096		5,536
Total cash and cash equivalents and restricted cash	$	11,400	$	16,876

Tenant Receivables, Net

Tenant Receivables, Net

The tenant receivable balance as of March 31, 2021 and December 31, 2020 was $5,585 and $5,596, respectively. The balance as of March 31, 2021 consisted of $1,863 in funds owed from the Company’s tenants for rent that the Company had earned but had not yet received, $1,190 of loans that were made to two of the Company’s tenants, and $2,532 of tenant reimbursements. The balance as of December 31, 2020 consisted of $1,817 in funds owed from the Company’s tenants for rent that the Company had earned but had not yet received, $1,200 of loans that were made to two of the Company’s tenants, and $2,579 of tenant reimbursements.

Receivables arising from operating leases are accounted for in accordance with ASC Topic 842 “Leases” (“ASC Topic 842”). The Company assesses the likelihood of losses resulting from tenant defaults, or the inability of tenants to make contractual rent and tenant recovery payments at each reporting date. The Company also monitors the liquidity and creditworthiness of its tenants and operators on a continuous basis. If the likelihood of a tenant paying its lease payments is determined to no longer be probable, all tenant receivables, including deferred rent, are written off against revenue and any future revenue for that tenant is recognized only upon receipt of cash. In addition, as of March 31, 2021, the Company had a portfolio level reserve of $450 on those leases that were probable of collection to ensure that the tenant lease receivables were not overstated.  

Escrow Deposits

Escrow Deposits

The escrow balance as of March 31, 2021 and December 31, 2020 was $5,163 and $4,817, respectively. Escrow deposits include funds held in escrow to be used for the acquisition of properties in the future and for the payment of taxes, insurance, and other amounts as stipulated by the Company’s Cantor Loan, as hereinafter defined.

Deferred Assets

Deferred Assets

The deferred assets balance as of March 31, 2021 and December 31, 2020 was $21,676 and $20,272, respectively. The balance as of March 31, 2021 consisted of $21,596 in deferred rent receivables resulting from the recognition of revenue from leases with fixed annual rental escalations on a straight-line basis and $80 of other deferred costs. The balance as of December 31, 2020 consisted of $20,192 in deferred rent receivables resulting from the recognition of revenue from leases with fixed annual rental escalations on a straight-line basis and $80 of other deferred costs.

Other Assets

Other Assets

The other assets balance as of March 31, 2021 and December 31, 2020 was $5,530 and $5,019, respectively. The balance as of March 31, 2021 consisted of $3,525 for right of use assets, $939 in capitalized preacquisition costs, $738 in prepaid assets, and $328 for net capitalized software costs and miscellaneous assets. The balance as of December 31, 2020 consisted of $3,598 for right of use assets, $484 in capitalized preacquisition costs, $588 in prepaid assets, and $349 for net capitalized software costs and miscellaneous assets. Refer to Note 8 – “Leases” for additional details on right of use assets.

Derivative Instruments - Interest Rate Swaps

Derivative Instruments - Interest Rate Swaps

As of March 31, 2021 and December 31, 2020, the Company's net liability balance related to interest rate swap derivative instruments that were designated as cash flow hedges of interest rate risk was $14,467 and $18,086, respectively. In accordance with the Company’s risk management strategy, the purpose of the interest rate swaps is to manage interest rate risk for certain of the Company’s variable-rate debt. The interest rate swaps involve the Company’s receipt of variable-rate amounts from four counterparties in exchange for the Company making fixed-rate payments over the life of the agreements. The Company accounts for derivative instruments in accordance with the provisions of ASC Topic 815, “Derivatives and Hedging.” Refer to Note 4 – “Credit Facility, Notes Payable and Derivative Instruments” for additional details.

Goodwill

Goodwill

As of March 31, 2021 and December 31, 2020, the Company’s goodwill balance was $5,903. Goodwill represents the excess of consideration paid over the fair value of underlying identifiable net assets of businesses acquired. The Company’s goodwill balance was derived from the acquisition of its former advisor in connection with the management internalization transaction that was completed in July 2020. Goodwill has an indefinite life and is not amortized, but is tested for impairment on an annual basis, or more frequently if events or changes in circumstances indicate that the asset might be impaired. The Company’s policy is to perform its annual goodwill impairment evaluation as of the first day of the fourth quarter of its fiscal year. The Company has one reporting unit.  

Recent Accounting Pronouncements

Recent Accounting Pronouncements

Reference Rate Reform

Accounting Standards Update (“ASU”) 2020-04, Reference Rate Reform (Topic 848) (“ASU 2020-04”) contains practical expedients for reference rate reform-related activities that impact debt, leases, derivatives and other contracts. The guidance in ASU

2020-04 is optional and may be elected over time as reference rate reform activities occur. As of March 31, 2021, the Company had previously elected to apply the hedge accounting expedients related to probability and the assessments of effectiveness for future LIBOR-indexed cash flows to assume that the index upon which future hedged transactions will be based matches the index on the corresponding derivatives. Application of these expedients preserves the presentation of derivatives consistent with past presentation. The Company continues to evaluate the impact of the guidance and may apply other elections as applicable as additional changes in the market occur.

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Summary of Significant Accounting Policies (Tables)

3 Months Ended

Mar. 31, 2021

Business Combination, Separately Recognized Transactions [Line Items]

Schedule of cash and cash equivalents and restricted cash

	As of March 31,
	2021		2020
Cash and cash equivalents	$	5,304	$	11,340
Restricted cash		6,096		5,536
Total cash and cash equivalents and restricted cash	$	11,400	$	16,876

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Property Portfolio (Tables)

3 Months Ended

Mar. 31, 2021

Schedule of Properties Acquired

A rollforward of the gross investment in land, building, improvements, and acquired lease intangible assets as of March 31, 2021 resulting from these acquisitions is as follows:

					Site		Tenant		Acquired Lease		Gross Investment in
	Land		Building		Improvements		Improvements		Intangible Assets		Real Estate
Balances as of December 31, 2020	$	128,857	$	851,427	$	15,183	$	49,204	$	98,234	$	1,142,905
Facility Acquired – Date Acquired:
El Paso – 1/12/21		899		7,549		71		160		1,338		10,017
Syracuse – 1/15/21		616		4,745		128		136		772		6,397
West El Paso – 1/15/21		851		7,160		144		567		856		9,578
Fort Worth – 3/9/21		1,817		13,020		143		395		2,069		17,444
Capitalized costs(1)		—		—		—		134		—		134
Total Additions:		4,183		32,474		486		1,392		5,035		43,570
Balances as of March 31, 2021	$	133,040	$	883,901	$	15,669	$	50,596	$	103,269	$	1,186,475

⁽¹⁾ Represents capital projects that were completed and placed in service during the three months ended March 31, 2021 related to the Company’s existing facilities.

A rollforward of the gross investment in land, building, improvements, and acquired lease intangible assets as of December 31, 2020 resulting from these acquisitions is as follows:

					Site		Tenant		Acquired Lease		Gross Investment in
	Land		Building		Improvements		Improvements		Intangible Assets		Real Estate
Balances as of December 31, 2019	$	95,381	$	693,533	$	9,912	$	33,909	$	72,794	$	905,529
Facility Acquired – Date Acquired:
High Point – 2/13/20		1,749		20,367		440		869		1,656		25,081
Clinton – 2/27/20		664		6,551		342		1,578		2,484		11,619
West Allis – 3/4/20		974		7,687		137		98		461		9,357
Grand Rapids – 3/20/20		2,951		17,341		470		450		1,582		22,794
Dumfries – 4/27/20		2,597		10,047		289		4,815		4,292		22,040
Centerville – 7/16/20		—		4,202		160		208		501		5,071
Fairfax – 7/17/20		6,731		6,642		381		2,979		3,012		19,745
Rosedale – 7/31/20		2,856		16,204		567		1,443		2,821		23,891
Lancaster – 9/18/20		696		4,269		110		116		1,114		6,305
Winston-Salem – 9/30/20		1,524		6,407		254		307		748		9,240
Decatur and Jackson – 10/20/20		2,237		7,140		284		296		955		10,912
Sheboygan and Plymouth – 10/27/20		1,088		11,212		253		225		1,046		13,824
Spring Hill and Hudson – 11/18/20		3,473		12,520		420		435		1,370		18,218
Cape Girardeau – 11/23/20		1,150		4,601		73		264		1,262		7,350
Yuma – 12/1/20		1,041		4,715		309		274		640		6,979
Las Vegas – 12/14/20		311		6,813		—		—		—		7,124
Pensacola – 12/29/20		1,786		5,742		332		411		781		9,052
Venice – 12/30/20		1,648		4,204		247		333		543		6,975
Capitalized costs(1)		—		1,230		203		194		172		1,799
Total Additions:		33,476		157,894		5,271		15,295		25,440		237,376
Balances as of December 31, 2020	$	128,857	$	851,427	$	15,183	$	49,204	$	98,234	$	1,142,905

⁽¹⁾ Represents capital projects that were completed and placed in service during the year ended December 31, 2020  related to the Company’s existing facilities.

Summary of Carrying amount of intangible assets and liabilities

The following is a summary of the carrying amount of lease intangible assets and liabilities as of the dates presented:

	As of March 31, 2021
			Accumulated
	Cost		Amortization		Net
Assets
In-place leases	$	58,284	$	(16,682)	$	41,602
Above market leases		15,357		(4,514)		10,843
Leasing costs		29,628		(7,178)		22,450
	$	103,269	$	(28,374)	$	74,895
Liability
Below market leases	$	10,279	$	(2,281)	$	7,998

	As of December 31, 2020
			Accumulated
	Cost		Amortization		Net
Assets
In-place leases	$	55,561	$	(14,592)	$	40,969
Above market leases		14,972		(4,023)		10,949
Leasing costs		27,701		(6,284)		21,417
	$	98,234	$	(24,899)	$	73,335
Liability
Below market leases	$	10,072	$	(1,850)	$	8,222

Summary of the acquired lease intangible amortization

	Three Months Ended
	March 31,
	2021		2020
Amortization expense related to in-place leases	$	2,090	$	1,333
Amortization expense related to leasing costs	$	894	$	588
Decrease in rental revenue related to above market leases	$	491	$	375
Increase in rental revenue related to below market leases	$	431	$	128

Schedule of net amortization acquired lease intangible assets and liabilities

As of March 31, 2021, scheduled future aggregate net amortization of the acquired lease intangible assets and liabilities for each year ended December 31 is listed below:

	Net Decrease		Net Increase
	in Revenue		in Expenses
2021 (nine months remaining)	$	(205)	$	8,633
2022		(290)		11,294
2023		(324)		10,332
2024		(104)		8,939
2025		(438)		5,919
Thereafter		(1,484)		18,935
Total	$	(2,845)	$	64,052

Summary of unaudited pro forma information

	Three Months Ended
	March 31, 2020
	(unaudited, in thousands)
Pro forma total revenue	$	21,649
Pro forma net income attributable to common stockholders	$	1,942

El Paso Facility [Member]

Schedule of tangible and intangible assets

Land and site improvements	$	970
Building and tenant improvements		7,709
In-place leases		750
Above-market lease intangibles		383
Leasing costs		205
Total purchase price	$	10,017

Syracuse Facility [Member]

Schedule of tangible and intangible assets

Land and site improvements	$	744
Building and tenant improvements		4,881
In-place leases		434
Leasing costs		338
Below-market lease intangibles		(207)
Total purchase price	$	6,190

West El Paso Facility [Member]

Schedule of tangible and intangible assets

Land and site improvements	$	995
Building and tenant improvements		7,727
In-place leases		432
Leasing costs		424
Total purchase price	$	9,578

Fort Worth Facility [Member]

Schedule of tangible and intangible assets

Land and site improvements	$	1,960
Building and tenant improvements		13,415
In-place leases		1,339
Leasing costs		730
Total purchase price	$	17,444

High Point Facility [Member]

Schedule of tangible and intangible assets

Land and site improvements	$	2,189
Building and tenant improvements		21,236
In-place leases		1,207
Leasing costs		449
Total purchase price	$	25,081

Clinton Facility [Member]

Schedule of tangible and intangible assets

Land and site improvements	$	1,006
Building and tenant improvements		8,129
In-place leases		2,115
Leasing costs		369
Total purchase price	$	11,619

West Allis Facility [Member]

Schedule of tangible and intangible assets

Land and site improvements	$	1,111
Building and tenant improvements		7,785
In-place leases		263
Leasing costs		198
Below-market lease intangibles		(264)
Total purchase price	$	9,093

Grand Rapids Facility [Member]

Schedule of tangible and intangible assets

Land and site improvements	$	3,417
Building and tenant improvements		17,791
In-place leases		761
Above-market lease intangibles		685
Leasing costs		136
Below-market lease intangibles		(125)
Total purchase price	$	22,665

Dumfries Facility [Member]

Schedule of tangible and intangible assets

Land and site improvements	$	2,886
Building and tenant improvements		14,862
In-place leases		3,255
Leasing costs		1,037
Below-market lease intangibles		(2,419)
Total purchase price	$	19,621

Centerville Facility [Member]

Schedule of tangible and intangible assets

Land and site improvements	$	160
Building and tenant improvements		4,410
In-place leases		216
Leasing costs		285
Total purchase price	$	5,071

Fairfax Facility [Member]

Schedule of tangible and intangible assets

Land and site improvements	$	7,112
Building and tenant improvements		9,621
In-place leases		2,314
Leasing costs		698
Below-market lease intangibles		(1,866)
Total purchase price	$	17,879

Rosedale Facilities [Member]

Schedule of tangible and intangible assets

Land and site improvements	$	3,423
Building and tenant improvements		17,647
In-place leases		1,063
Leasing costs		892
Above-market lease intangibles		866
Below-market lease intangibles		(785)
Total purchase price	$	23,106

Lancaster Facility [Member]

Schedule of tangible and intangible assets

Land and site improvements	$	806
Building and tenant improvements		4,385
In-place leases		244
Leasing costs		283
Above-market lease intangibles		587
Total purchase price	$	6,305

Winston-Salem Facility [Member]

Schedule of tangible and intangible assets

Land and site improvements	$	1,778
Building and tenant improvements		6,714
In-place leases		581
Leasing costs		167
Below-market lease intangibles		(725)
Total purchase price	$	8,515

Decatur and Jackson Facility [Member]

Schedule of tangible and intangible assets

Land and site improvements	$	2,521
Building and tenant improvements		7,436
In-place leases		556
Leasing costs		264
Above-market lease intangibles		135
Below-market lease intangibles		(27)
Total purchase price	$	10,885

Sheboygan and Plymouth Facility [Member]

Schedule of tangible and intangible assets

Land and site improvements	$	1,341
Building and tenant improvements		11,437
In-place leases		756
Leasing costs		290
Total purchase price	$	13,824

Spring Hill and Hudson Facility [Member]

Schedule of tangible and intangible assets

Land and site improvements	$	3,893
Building and tenant improvements		12,955
In-place leases		831
Leasing costs		539
Total purchase price	$	18,218

Cape Girardeau Facility [Member]

Schedule of tangible and intangible assets

Land and site improvements	$	1,223
Building and tenant improvements		4,865
In-place leases		687
Leasing costs		188
Above-market lease intangibles		387
Total purchase price	$	7,350

Yuma Facility [Member]

Schedule of tangible and intangible assets

Land and site improvements	$	1,350
Building and tenant improvements		4,989
In-place leases		439
Leasing costs		136
Above-market lease intangibles		65
Total purchase price	$	6,979

Las Vegas Facility [Member]

Schedule of tangible and intangible assets

Land and site improvements	$	311
Building and tenant improvements		6,813
Total purchase price	$	7,124

Pensacola Facility [Member]

Schedule of tangible and intangible assets

Land and site improvements	$	2,118
Building and tenant improvements		6,153
In-place leases		456
Leasing costs		325
Total purchase price	$	9,052

Venice Facility [Member]

Schedule of tangible and intangible assets

Land and site improvements	$	1,895
Building and tenant improvements		4,537
In-place leases		387
Leasing costs		156
Total purchase price	$	6,975

XML

Credit Facility, Notes Payable and Derivative Instruments (Tables)

3 Months Ended

Mar. 31, 2021

Notes Payable and Revolving Credit Facility

Schedule of Outstanding borrowings

As of March 31, 2021 and December 31, 2020, the Company had the following outstanding borrowings under the Credit Facility:

	March 31, 2021		December 31, 2020
Revolver	$	73,500	$	175,200
Term Loan		350,000		350,000
Less: Unamortized debt issuance costs		(3,284)		(3,559)
Credit Facility, net	$	420,216	$	521,641

Schedule of Aggregate balances of loans payable

	March 31, 2021		December 31, 2020
Notes payable, gross	$	66,349	$	66,349
Unamortized debt issuance costs		(772)		(835)
Cumulative principal repayments		(767)		(577)
Notes payable, net	$	64,810	$	64,937

Schedule of Interest Rate Derivatives

As of March 31, 2021, the Company had the following six interest rate swaps that are used to manage its interest rate risk and fix the LIBOR component of certain of its floating rate debt on a weighted average basis at 1.91% through August 2023:

Counterparty	Notional Amount		Fixed LIBOR Rate	Maturity
Wells Fargo Bank, N.A.	$	50 million	0.16%	August 2023
BMO		100 million	2.88%	August 2023
BMO		90 million	1.21%	August 2024
Truist Bank		40 million	1.21%	August 2024
Truist Bank		40 million	2.93%	August 2024
Citizens Bank, National Association		30 million	2.93%	August 2024
Total/Weighted Average	$	350 million	1.91%

Schedule of Comprehensive Income (Loss)

The table below details the components of the loss presented on the accompanying Condensed Consolidated Statements of Comprehensive Income (Loss) recognized on the Company’s interest rate swaps designated as cash flow hedges for the three months ended March 31, 2021 and 2020:

	Three Months Ended March 31,
	2021		2020
Amount of (gain) loss recognized in other comprehensive income (loss)	$	(2,082)	$	14,466
Amount of loss reclassified from accumulated other comprehensive loss into interest expense		(1,549)		(508)
Total change in accumulated other comprehensive loss	$	(3,631)	$	13,958

Rosedale Loan [Member]

Notes Payable and Revolving Credit Facility

Schedule of Maturities of Long-term Debt

As of March 31, 2021, scheduled principal payments due for each year ended December 31 were as follows:

2021 (nine months remaining)	$	270
2022		376
2023		391
2024		405
2025		13,158
Total	$	14,600

Dumfries Loan [Member]

Notes Payable and Revolving Credit Facility

Schedule of Maturities of Long-term Debt

As of March 31, 2021, scheduled principal payments due for each year ended December 31 were as follows:

2021 (nine months remaining)	$	206
2022		288
2023		302
2024		11,034
Total	$	11,830

Cantor Loan [Member]

Notes Payable and Revolving Credit Facility

Schedule of Maturities of Long-term Debt

As of March 31, 2021, scheduled principal payments due for each year ended December 31 were as follows:

2021 (nine months remaining)	$	282
2022		447
2023		471
2024		492
2025		523
Thereafter		29,882
Total	$	32,097

XML

Equity (Tables)

3 Months Ended

Mar. 31, 2021

Preferred Stock [Member]

Schedule of dividends payable

Preferred stock dividend activity for the three months ended March 31, 2021 is summarized in the following table:

		Applicable		Quarterly			Dividends
Date Announced	Record Date	Quarter	Payment Date	Dividend			per Share
December 16, 2020	January 15, 2021	Q4 2020	February 1, 2021	$	1,455		$	0.46875
March 3, 2021	April 15, 2021	Q1 2021	April 30, 2021	$	1,455	(1)	$	0.46875

⁽¹⁾ Two months of this amount, equal to $970, was accrued at March 31, 2021.

Common Stock [Member]

Schedule of dividends payable

Common stock dividend activity for the three months ended March 31, 2021 is summarized in the following table:

		Applicable		Dividend		Dividends
Date Announced	Record Date	Quarter	Payment Date	Amount(1)		per Share
December 16, 2020	December 28, 2020	Q4 2020	January 11, 2021	$	10,573	$	0.20
March 3, 2021	March 24, 2021	Q1 2021	April 8, 2021	$	13,260	$	0.205

⁽¹⁾ Includes distributions on outstanding LTIP Units and OP Units.

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Related Party Transactions (Tables)

3 Months Ended

Mar. 31, 2021

Related Party Transactions

Summary of unaudited pro forma information

	Three Months Ended
	March 31, 2020
	(unaudited, in thousands)
Pro forma total revenue	$	21,649
Pro forma net income attributable to common stockholders	$	1,942

XML

Stock-Based Compensation (Tables)

3 Months Ended

Mar. 31, 2021

Stock-Based Compensation

Schedule of LTIP Unit Activity

		Number of
Date	Description	Units Issued	Vesting Dates
March 2, 2021	Final awards under the 2018 Long-Term Incentive Plan	220	50% on March 2, 2021; and
			50% on March 2, 2022
March 2, 2021	Final awards under the 2020 Annual Incentive Plan	267	50% on March 2, 2021; and
			50% on March 2, 2022

Schedule of time-based vesting LTIP unit activity

Vested units	1,288
Unvested units	838
LTIP Units outstanding as of March 31, 2021	2,126

Schedule of the annual awards and long-term awards

A detail of the Company’s Long-Term Awards under the 2019 and 2020 programs, and the Annual Awards and Long-Term Awards under the 2021 program as of March 31, 2021 is as follows:

2019 Long-Term Awards	82
2020 Long-Term Awards	70
2021 Annual Awards (1)	92
2021 Long-Term Awards (2)	76
Total target performance awards as of March 31, 2021	320

(1) Approved by the Board on March 2, 2021. The number of target LTIP Units was based on the average closing price of the Company’s common stock reported on the New York Stock Exchange (“NYSE”) over the 15 trading days preceding the grant date.  

(2) Approved by the Board on March 2, 2021. The number of target LTIP Units was based on the fair value of the Long-Term Awards as determined by an independent valuation consultant.

Schedule of of the assumptions for the long-term awards using Monte Carlo simulations

Below are details regarding certain of the assumptions for the Long-Term Awards using Monte Carlo simulations:

	2021 Long-Term			2020 Long-Term			2019 Long-Term
	Awards			Awards			Awards
Fair value	$	14.86		$	13.47		$	10.07
Target awards		76			70			82
Volatility		42.37	%		28.75	%		31.7	%
Risk-free rate		0.26	%		0.72	%		2.5	%
Dividend assumption		reinvested			reinvested			reinvested
Expected term in years		3			3			3

XML

Leases (Tables)

3 Months Ended

Mar. 31, 2021

Leases

Schedule of aggregate annual cash to be received by the company

2021 (nine months remaining)	$	70,193
2022		93,549
2023		91,097
2024		83,921
2025		72,268
Thereafter		388,529
Total	$	799,557

Schedule of aggregate cash payments to be made by the Company

The following table sets forth the undiscounted cash flows of our scheduled obligations for future lease payments on operating ground leases at March 31, 2021, and a reconciliation of those cash flows to the operating lease liability at March 31, 2021:

2021 (nine months remaining)	$	290
2022		409
2023		174
2024		129
2025		129
Thereafter		4,498
Total		5,629
Discount		(2,733)
Lease liability	$	2,896

XML

Organization (Details)	3 Months Ended
	Mar. 31, 2021
Inter-American Group Holdings Incorporated [Member]
Purchase agreement date	Jul. 09, 2020
long-term incentive plan LTIP [Member]
Partnership interest	6.01%
Global Medical REIT GP LLC [Member]
Operating Partnership	93.99%

XML

Summary of Significant Accounting Policies - Cash and Cash Equivalents (Details) - USD ($) $ in Thousands	Mar. 31, 2021	Dec. 31, 2020	Mar. 31, 2020	Dec. 31, 2019
Cash and Cash Equivalents [Abstract]
Cash and cash equivalents	$ 5,304	$ 5,507	$ 11,340
Restricted cash	6,096	5,246	5,536
Total cash and cash equivalents and restricted cash	$ 11,400	$ 10,753	$ 16,876	$ 7,185

XML

Summary of Significant Accounting Policies - Additional Information (Details) - USD ($) $ in Thousands	3 Months Ended		12 Months Ended
	Mar. 31, 2021	Mar. 31, 2020	Dec. 31, 2020
Tenant Receivables	$ 5,585		$ 5,596
Receivables Earned But Not Received Relating To Tenant Rent	1,863		1,817
Loans receivable	1,190		1,200
Tenant reimbursements	2,532		2,579
Reserve for leases	450
Escrow Deposit	5,163		4,817
Deferred Costs and Other Assets	21,676		20,272
Deferred Rent Receivables, Net	21,596		20,192
Other Deferred Costs, Net	80		80
Other Assets	5,530		5,019
Operating Lease, Right-of-Use Asset	3,525		3,598
Prepaid Expense and Other Assets	738		588
Capitalized preacquisition costs	939		484
Capitalized software costs	328		349
Security Deposit Liability	4,367		4,340
Derivative Liabilities	14,603		18,086
Goodwill	5,903		5,903
Management internalization expense		$ 504
Interest Rate Swap [Member]
Derivative Liabilities	$ 14,467		$ 18,086
Inter-American Group Holdings Incorporated [Member]
Purchase agreement date	Jul. 09, 2020

XML

Property Portfolio - Gross Investment (Details) - USD ($) $ in Thousands																				3 Months Ended	12 Months Ended
	Jan. 15, 2021	Jan. 12, 2021	Dec. 30, 2020	Dec. 29, 2020	Dec. 14, 2020	Dec. 01, 2020	Nov. 23, 2020	Nov. 18, 2020	Oct. 27, 2020	Oct. 20, 2020	Sep. 30, 2020	Sep. 18, 2020	Jul. 31, 2020	Jul. 17, 2020	Jul. 16, 2020	Mar. 20, 2020	Mar. 04, 2020	Feb. 27, 2020	Feb. 13, 2020	Mar. 31, 2021	Dec. 31, 2020
Property, Plant and Equipment [Line Items]
Beginning Balance																				$ 1,142,905	$ 905,529
Acquisitions																				43,570	237,376
Capitalized costs																				134	1,799
Ending Balance																				1,186,475	1,142,905
High Point Facility [Member]
Property, Plant and Equipment [Line Items]
Acquisitions																			$ 25,100		25,081
Clinton Facility [Member]
Property, Plant and Equipment [Line Items]
Acquisitions																		$ 11,600			11,619
West Allis Facility [Member]
Property, Plant and Equipment [Line Items]
Acquisitions																	$ 9,100				9,357
Grand Rapids Facility [Member]
Property, Plant and Equipment [Line Items]
Acquisitions																$ 22,700					22,794
Dumfries [Member]
Property, Plant and Equipment [Line Items]
Acquisitions																				22,040
Centerville Facility [Member]
Property, Plant and Equipment [Line Items]
Acquisitions															$ 5,100						5,071
Fairfax Facility [Member]
Property, Plant and Equipment [Line Items]
Acquisitions														$ 17,900							19,745
Rosedale Facilities [Member]
Property, Plant and Equipment [Line Items]
Acquisitions													$ 23,100								23,891
Lancaster Facility [Member]
Property, Plant and Equipment [Line Items]
Acquisitions												$ 6,300									6,305
Winston-Salem Facility [Member]
Property, Plant and Equipment [Line Items]
Acquisitions											$ 8,500										9,240
Decatur and Jackson Facility [Member]
Property, Plant and Equipment [Line Items]
Acquisitions										$ 10,900											10,912
Sheboygan and Plymouth Facility [Member]
Property, Plant and Equipment [Line Items]
Acquisitions									$ 13,800												13,824
Spring Hill and Hudson Facility [Member]
Property, Plant and Equipment [Line Items]
Acquisitions								$ 18,200													18,218
Cape Girardeau Facility [Member]
Property, Plant and Equipment [Line Items]
Acquisitions							$ 7,400														7,350
Yuma Facility [Member]
Property, Plant and Equipment [Line Items]
Acquisitions						$ 7,000															6,979
Las Vegas Facility [Member]
Property, Plant and Equipment [Line Items]
Acquisitions					$ 7,100																7,124
Pensacola Facility [Member]
Property, Plant and Equipment [Line Items]
Acquisitions				$ 9,100																	9,052
Venice Facility [Member]
Property, Plant and Equipment [Line Items]
Acquisitions			$ 7,000																		6,975
El Paso Facility [Member]
Property, Plant and Equipment [Line Items]
Acquisitions		$ 10,000																		10,017
Syracuse Facility [Member]
Property, Plant and Equipment [Line Items]
Acquisitions	$ 6,200																			6,397
West El Paso Facility [Member]
Property, Plant and Equipment [Line Items]
Acquisitions	$ 9,600																			9,578
Fort Worth Facility [Member]
Property, Plant and Equipment [Line Items]
Acquisitions																				17,444
Land [Member]
Property, Plant and Equipment [Line Items]
Beginning Balance																				128,857	95,381
Acquisitions																				4,183	33,476
Ending Balance																				133,040	128,857
Land [Member] | High Point Facility [Member]
Property, Plant and Equipment [Line Items]
Acquisitions																					1,749
Land [Member] | Clinton Facility [Member]
Property, Plant and Equipment [Line Items]
Acquisitions																					664
Land [Member] | West Allis Facility [Member]
Property, Plant and Equipment [Line Items]
Acquisitions																					974
Land [Member] | Grand Rapids Facility [Member]
Property, Plant and Equipment [Line Items]
Acquisitions																					2,951
Land [Member] | Dumfries [Member]
Property, Plant and Equipment [Line Items]
Acquisitions																				2,597
Land [Member] | Fairfax Facility [Member]
Property, Plant and Equipment [Line Items]
Acquisitions																					6,731
Land [Member] | Rosedale Facilities [Member]
Property, Plant and Equipment [Line Items]
Acquisitions																					2,856
Land [Member] | Lancaster Facility [Member]
Property, Plant and Equipment [Line Items]
Acquisitions																					696
Land [Member] | Winston-Salem Facility [Member]
Property, Plant and Equipment [Line Items]
Acquisitions																					1,524
Land [Member] | Decatur and Jackson Facility [Member]
Property, Plant and Equipment [Line Items]
Acquisitions																					2,237
Land [Member] | Sheboygan and Plymouth Facility [Member]
Property, Plant and Equipment [Line Items]
Acquisitions																					1,088
Land [Member] | Spring Hill and Hudson Facility [Member]
Property, Plant and Equipment [Line Items]
Acquisitions																					3,473
Land [Member] | Cape Girardeau Facility [Member]
Property, Plant and Equipment [Line Items]
Acquisitions																					1,150
Land [Member] | Yuma Facility [Member]
Property, Plant and Equipment [Line Items]
Acquisitions																					1,041
Land [Member] | Las Vegas Facility [Member]
Property, Plant and Equipment [Line Items]
Acquisitions																					311
Land [Member] | Pensacola Facility [Member]
Property, Plant and Equipment [Line Items]
Acquisitions																					1,786
Land [Member] | Venice Facility [Member]
Property, Plant and Equipment [Line Items]
Acquisitions																					1,648
Land [Member] | El Paso Facility [Member]
Property, Plant and Equipment [Line Items]
Acquisitions																				899
Land [Member] | Syracuse Facility [Member]
Property, Plant and Equipment [Line Items]
Acquisitions																				616
Land [Member] | West El Paso Facility [Member]
Property, Plant and Equipment [Line Items]
Acquisitions																				851
Land [Member] | Fort Worth Facility [Member]
Property, Plant and Equipment [Line Items]
Acquisitions																				1,817
Buildings
Property, Plant and Equipment [Line Items]
Beginning Balance																				851,427	693,533
Acquisitions																				32,474	157,894
Capitalized costs																					1,230
Ending Balance																				883,901	851,427
Buildings | High Point Facility [Member]
Property, Plant and Equipment [Line Items]
Acquisitions																					20,367
Buildings | Clinton Facility [Member]
Property, Plant and Equipment [Line Items]
Acquisitions																					6,551
Buildings | West Allis Facility [Member]
Property, Plant and Equipment [Line Items]
Acquisitions																					7,687
Buildings | Grand Rapids Facility [Member]
Property, Plant and Equipment [Line Items]
Acquisitions																					17,341
Buildings | Dumfries [Member]
Property, Plant and Equipment [Line Items]
Acquisitions																				10,047
Buildings | Centerville Facility [Member]
Property, Plant and Equipment [Line Items]
Acquisitions																					4,202
Buildings | Fairfax Facility [Member]
Property, Plant and Equipment [Line Items]
Acquisitions																					6,642
Buildings | Rosedale Facilities [Member]
Property, Plant and Equipment [Line Items]
Acquisitions																					16,204
Buildings | Lancaster Facility [Member]
Property, Plant and Equipment [Line Items]
Acquisitions																					4,269
Buildings | Winston-Salem Facility [Member]
Property, Plant and Equipment [Line Items]
Acquisitions																					6,407
Buildings | Decatur and Jackson Facility [Member]
Property, Plant and Equipment [Line Items]
Acquisitions																					7,140
Buildings | Sheboygan and Plymouth Facility [Member]
Property, Plant and Equipment [Line Items]
Acquisitions																					11,212
Buildings | Spring Hill and Hudson Facility [Member]
Property, Plant and Equipment [Line Items]
Acquisitions																					12,520
Buildings | Cape Girardeau Facility [Member]
Property, Plant and Equipment [Line Items]
Acquisitions																					4,601
Buildings | Yuma Facility [Member]
Property, Plant and Equipment [Line Items]
Acquisitions																					4,715
Buildings | Las Vegas Facility [Member]
Property, Plant and Equipment [Line Items]
Acquisitions																					6,813
Buildings | Pensacola Facility [Member]
Property, Plant and Equipment [Line Items]
Acquisitions																					5,742
Buildings | Venice Facility [Member]
Property, Plant and Equipment [Line Items]
Acquisitions																					4,204
Buildings | El Paso Facility [Member]
Property, Plant and Equipment [Line Items]
Acquisitions																				7,549
Buildings | Syracuse Facility [Member]
Property, Plant and Equipment [Line Items]
Acquisitions																				4,745
Buildings | West El Paso Facility [Member]
Property, Plant and Equipment [Line Items]
Acquisitions																				7,160
Buildings | Fort Worth Facility [Member]
Property, Plant and Equipment [Line Items]
Acquisitions																				13,020
Site Improvements [Member]
Property, Plant and Equipment [Line Items]
Beginning Balance																				15,183	9,912
Acquisitions																				486	5,271
Capitalized costs																					203
Ending Balance																				15,669	15,183
Site Improvements [Member] | High Point Facility [Member]
Property, Plant and Equipment [Line Items]
Acquisitions																					440
Site Improvements [Member] | Clinton Facility [Member]
Property, Plant and Equipment [Line Items]
Acquisitions																					342
Site Improvements [Member] | West Allis Facility [Member]
Property, Plant and Equipment [Line Items]
Acquisitions																					137
Site Improvements [Member] | Grand Rapids Facility [Member]
Property, Plant and Equipment [Line Items]
Acquisitions																					470
Site Improvements [Member] | Dumfries [Member]
Property, Plant and Equipment [Line Items]
Acquisitions																				289
Site Improvements [Member] | Centerville Facility [Member]
Property, Plant and Equipment [Line Items]
Acquisitions																					160
Site Improvements [Member] | Fairfax Facility [Member]
Property, Plant and Equipment [Line Items]
Acquisitions																					381
Site Improvements [Member] | Rosedale Facilities [Member]
Property, Plant and Equipment [Line Items]
Acquisitions																					567
Site Improvements [Member] | Lancaster Facility [Member]
Property, Plant and Equipment [Line Items]
Acquisitions																					110
Site Improvements [Member] | Winston-Salem Facility [Member]
Property, Plant and Equipment [Line Items]
Acquisitions																					254
Site Improvements [Member] | Decatur and Jackson Facility [Member]
Property, Plant and Equipment [Line Items]
Acquisitions																					284
Site Improvements [Member] | Sheboygan and Plymouth Facility [Member]
Property, Plant and Equipment [Line Items]
Acquisitions																					253
Site Improvements [Member] | Spring Hill and Hudson Facility [Member]
Property, Plant and Equipment [Line Items]
Acquisitions																					420
Site Improvements [Member] | Cape Girardeau Facility [Member]
Property, Plant and Equipment [Line Items]
Acquisitions																					73
Site Improvements [Member] | Yuma Facility [Member]
Property, Plant and Equipment [Line Items]
Acquisitions																					309
Site Improvements [Member] | Pensacola Facility [Member]
Property, Plant and Equipment [Line Items]
Acquisitions																					332
Site Improvements [Member] | Venice Facility [Member]
Property, Plant and Equipment [Line Items]
Acquisitions																					247
Site Improvements [Member] | El Paso Facility [Member]
Property, Plant and Equipment [Line Items]
Acquisitions																				71
Site Improvements [Member] | Syracuse Facility [Member]
Property, Plant and Equipment [Line Items]
Acquisitions																				128
Site Improvements [Member] | West El Paso Facility [Member]
Property, Plant and Equipment [Line Items]
Acquisitions																				144
Site Improvements [Member] | Fort Worth Facility [Member]
Property, Plant and Equipment [Line Items]
Acquisitions																				143
Tenant improvements [Member]
Property, Plant and Equipment [Line Items]
Beginning Balance																				49,204	33,909
Acquisitions																				1,392	15,295
Capitalized costs																				134	194
Ending Balance																				50,596	49,204
Tenant improvements [Member] | High Point Facility [Member]
Property, Plant and Equipment [Line Items]
Acquisitions																					869
Tenant improvements [Member] | Clinton Facility [Member]
Property, Plant and Equipment [Line Items]
Acquisitions																					1,578
Tenant improvements [Member] | West Allis Facility [Member]
Property, Plant and Equipment [Line Items]
Acquisitions																					98
Tenant improvements [Member] | Grand Rapids Facility [Member]
Property, Plant and Equipment [Line Items]
Acquisitions																					450
Tenant improvements [Member] | Dumfries [Member]
Property, Plant and Equipment [Line Items]
Acquisitions																				4,815
Tenant improvements [Member] | Centerville Facility [Member]
Property, Plant and Equipment [Line Items]
Acquisitions																					208
Tenant improvements [Member] | Fairfax Facility [Member]
Property, Plant and Equipment [Line Items]
Acquisitions																					2,979
Tenant improvements [Member] | Rosedale Facilities [Member]
Property, Plant and Equipment [Line Items]
Acquisitions																					1,443
Tenant improvements [Member] | Lancaster Facility [Member]
Property, Plant and Equipment [Line Items]
Acquisitions																					116
Tenant improvements [Member] | Winston-Salem Facility [Member]
Property, Plant and Equipment [Line Items]
Acquisitions																					307
Tenant improvements [Member] | Decatur and Jackson Facility [Member]
Property, Plant and Equipment [Line Items]
Acquisitions																					296
Tenant improvements [Member] | Sheboygan and Plymouth Facility [Member]
Property, Plant and Equipment [Line Items]
Acquisitions																					225
Tenant improvements [Member] | Spring Hill and Hudson Facility [Member]
Property, Plant and Equipment [Line Items]
Acquisitions																					435
Tenant improvements [Member] | Cape Girardeau Facility [Member]
Property, Plant and Equipment [Line Items]
Acquisitions																					264
Tenant improvements [Member] | Yuma Facility [Member]
Property, Plant and Equipment [Line Items]
Acquisitions																					274
Tenant improvements [Member] | Pensacola Facility [Member]
Property, Plant and Equipment [Line Items]
Acquisitions																					411
Tenant improvements [Member] | Venice Facility [Member]
Property, Plant and Equipment [Line Items]
Acquisitions																					333
Tenant improvements [Member] | El Paso Facility [Member]
Property, Plant and Equipment [Line Items]
Acquisitions																				160
Tenant improvements [Member] | Syracuse Facility [Member]
Property, Plant and Equipment [Line Items]
Acquisitions																				136
Tenant improvements [Member] | West El Paso Facility [Member]
Property, Plant and Equipment [Line Items]
Acquisitions																				567
Tenant improvements [Member] | Fort Worth Facility [Member]
Property, Plant and Equipment [Line Items]
Acquisitions																				395
Intangibles [Member]
Property, Plant and Equipment [Line Items]
Beginning Balance																				98,234	72,794
Acquisitions																				5,035	25,440
Capitalized costs																					172
Ending Balance																				103,269	98,234
Intangibles [Member] | High Point Facility [Member]
Property, Plant and Equipment [Line Items]
Acquisitions																					1,656
Intangibles [Member] | Clinton Facility [Member]
Property, Plant and Equipment [Line Items]
Acquisitions																					2,484
Intangibles [Member] | West Allis Facility [Member]
Property, Plant and Equipment [Line Items]
Acquisitions																					461
Intangibles [Member] | Grand Rapids Facility [Member]
Property, Plant and Equipment [Line Items]
Acquisitions																					1,582
Intangibles [Member] | Dumfries [Member]
Property, Plant and Equipment [Line Items]
Acquisitions																				4,292
Intangibles [Member] | Centerville Facility [Member]
Property, Plant and Equipment [Line Items]
Acquisitions																					501
Intangibles [Member] | Fairfax Facility [Member]
Property, Plant and Equipment [Line Items]
Acquisitions																					3,012
Intangibles [Member] | Rosedale Facilities [Member]
Property, Plant and Equipment [Line Items]
Acquisitions																					2,821
Intangibles [Member] | Lancaster Facility [Member]
Property, Plant and Equipment [Line Items]
Acquisitions																					1,114
Intangibles [Member] | Winston-Salem Facility [Member]
Property, Plant and Equipment [Line Items]
Acquisitions																					748
Intangibles [Member] | Decatur and Jackson Facility [Member]
Property, Plant and Equipment [Line Items]
Acquisitions																					955
Intangibles [Member] | Sheboygan and Plymouth Facility [Member]
Property, Plant and Equipment [Line Items]
Acquisitions																					1,046
Intangibles [Member] | Spring Hill and Hudson Facility [Member]
Property, Plant and Equipment [Line Items]
Acquisitions																					1,370
Intangibles [Member] | Cape Girardeau Facility [Member]
Property, Plant and Equipment [Line Items]
Acquisitions																					1,262
Intangibles [Member] | Yuma Facility [Member]
Property, Plant and Equipment [Line Items]
Acquisitions																					640
Intangibles [Member] | Pensacola Facility [Member]
Property, Plant and Equipment [Line Items]
Acquisitions																					781
Intangibles [Member] | Venice Facility [Member]
Property, Plant and Equipment [Line Items]
Acquisitions																					$ 543
Intangibles [Member] | El Paso Facility [Member]
Property, Plant and Equipment [Line Items]
Acquisitions																				1,338
Intangibles [Member] | Syracuse Facility [Member]
Property, Plant and Equipment [Line Items]
Acquisitions																				772
Intangibles [Member] | West El Paso Facility [Member]
Property, Plant and Equipment [Line Items]
Acquisitions																				856
Intangibles [Member] | Fort Worth Facility [Member]
Property, Plant and Equipment [Line Items]
Acquisitions																				$ 2,069

XML

Property Portfolio - Schedule of Recognized Identified Assets Acquired and Liabilities Assumed (Details) - USD ($) $ in Thousands	Mar. 31, 2021	Mar. 09, 2021	Jan. 15, 2021	Jan. 12, 2021	Dec. 30, 2020	Dec. 29, 2020	Dec. 14, 2020	Dec. 01, 2020	Nov. 23, 2020	Nov. 18, 2020	Oct. 27, 2020	Oct. 20, 2020
Property, Plant and Equipment [Line Items]
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Property, Plant, and Equipment	$ 8,515
Land and Site Improvements [Member]
Property, Plant and Equipment [Line Items]
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Property, Plant, and Equipment	1,778
Building And Tenant Improvements [Member]
Property, Plant and Equipment [Line Items]
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Property, Plant, and Equipment	6,714
In-place leases [Member]
Property, Plant and Equipment [Line Items]
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Property, Plant, and Equipment	581
Leasing Costs [Member]
Property, Plant and Equipment [Line Items]
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Property, Plant, and Equipment	167
Below Market Lease intangible [Member]
Property, Plant and Equipment [Line Items]
Business Combination Recognized Identifiable Assets Acquired And Liabilities Assumed, Below Market Lease Intangibles	(725)
El Paso Facility [Member]
Property, Plant and Equipment [Line Items]
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Property, Plant, and Equipment				$ 10,017
El Paso Facility [Member] | Land and Site Improvements [Member]
Property, Plant and Equipment [Line Items]
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Property, Plant, and Equipment				970
El Paso Facility [Member] | Building And Tenant Improvements [Member]
Property, Plant and Equipment [Line Items]
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Property, Plant, and Equipment				7,709
El Paso Facility [Member] | In-place leases [Member]
Property, Plant and Equipment [Line Items]
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Property, Plant, and Equipment				750
El Paso Facility [Member] | Above Market Lease intangibles [Member]
Property, Plant and Equipment [Line Items]
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Property, Plant, and Equipment				383
El Paso Facility [Member] | Leasing Costs [Member]
Property, Plant and Equipment [Line Items]
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Property, Plant, and Equipment				$ 205
Syracuse Facility [Member]
Property, Plant and Equipment [Line Items]
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Property, Plant, and Equipment			$ 6,190
Syracuse Facility [Member] | Land and Site Improvements [Member]
Property, Plant and Equipment [Line Items]
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Property, Plant, and Equipment			744
Syracuse Facility [Member] | Building And Tenant Improvements [Member]
Property, Plant and Equipment [Line Items]
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Property, Plant, and Equipment			4,881
Syracuse Facility [Member] | In-place leases [Member]
Property, Plant and Equipment [Line Items]
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Property, Plant, and Equipment			434
Syracuse Facility [Member] | Leasing Costs [Member]
Property, Plant and Equipment [Line Items]
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Property, Plant, and Equipment			338
Syracuse Facility [Member] | Below Market Lease intangible [Member]
Property, Plant and Equipment [Line Items]
Business Combination Recognized Identifiable Assets Acquired And Liabilities Assumed, Below Market Lease Intangibles			(207)
West El Paso Facility [Member]
Property, Plant and Equipment [Line Items]
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Property, Plant, and Equipment			9,578
West El Paso Facility [Member] | Land and Site Improvements [Member]
Property, Plant and Equipment [Line Items]
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Property, Plant, and Equipment			995
West El Paso Facility [Member] | Building And Tenant Improvements [Member]
Property, Plant and Equipment [Line Items]
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Property, Plant, and Equipment			7,727
West El Paso Facility [Member] | In-place leases [Member]
Property, Plant and Equipment [Line Items]
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Property, Plant, and Equipment			432
West El Paso Facility [Member] | Leasing Costs [Member]
Property, Plant and Equipment [Line Items]
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Property, Plant, and Equipment			$ 424
Fort Worth Facility [Member]
Property, Plant and Equipment [Line Items]
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Property, Plant, and Equipment		$ 17,444
Fort Worth Facility [Member] | Land and Site Improvements [Member]
Property, Plant and Equipment [Line Items]
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Property, Plant, and Equipment		1,960
Fort Worth Facility [Member] | Building And Tenant Improvements [Member]
Property, Plant and Equipment [Line Items]
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Property, Plant, and Equipment		13,415
Fort Worth Facility [Member] | In-place leases [Member]
Property, Plant and Equipment [Line Items]
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Property, Plant, and Equipment		1,339
Fort Worth Facility [Member] | Leasing Costs [Member]
Property, Plant and Equipment [Line Items]
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Property, Plant, and Equipment		$ 730
High Point Facility [Member]
Property, Plant and Equipment [Line Items]
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Property, Plant, and Equipment	25,081
High Point Facility [Member] | Land and Site Improvements [Member]
Property, Plant and Equipment [Line Items]
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Property, Plant, and Equipment	2,189
High Point Facility [Member] | Building And Tenant Improvements [Member]
Property, Plant and Equipment [Line Items]
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Property, Plant, and Equipment	21,236
High Point Facility [Member] | In-place leases [Member]
Property, Plant and Equipment [Line Items]
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Property, Plant, and Equipment	1,207
High Point Facility [Member] | Leasing Costs [Member]
Property, Plant and Equipment [Line Items]
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Property, Plant, and Equipment	449
Clinton Facility [Member]
Property, Plant and Equipment [Line Items]
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Property, Plant, and Equipment	11,619
Clinton Facility [Member] | Land and Site Improvements [Member]
Property, Plant and Equipment [Line Items]
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Property, Plant, and Equipment	1,006
Clinton Facility [Member] | Building And Tenant Improvements [Member]
Property, Plant and Equipment [Line Items]
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Property, Plant, and Equipment	8,129
Clinton Facility [Member] | In-place leases [Member]
Property, Plant and Equipment [Line Items]
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Property, Plant, and Equipment	2,115
Clinton Facility [Member] | Leasing Costs [Member]
Property, Plant and Equipment [Line Items]
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Property, Plant, and Equipment	369
West Allis Facility [Member]
Property, Plant and Equipment [Line Items]
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Property, Plant, and Equipment	9,093
West Allis Facility [Member] | Land and Site Improvements [Member]
Property, Plant and Equipment [Line Items]
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Property, Plant, and Equipment	1,111
West Allis Facility [Member] | Building And Tenant Improvements [Member]
Property, Plant and Equipment [Line Items]
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Property, Plant, and Equipment	7,785
West Allis Facility [Member] | In-place leases [Member]
Property, Plant and Equipment [Line Items]
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Property, Plant, and Equipment	263
West Allis Facility [Member] | Leasing Costs [Member]
Property, Plant and Equipment [Line Items]
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Property, Plant, and Equipment	198
West Allis Facility [Member] | Below Market Lease intangible [Member]
Property, Plant and Equipment [Line Items]
Business Combination Recognized Identifiable Assets Acquired And Liabilities Assumed, Below Market Lease Intangibles	(264)
Grand Rapids Facility [Member]
Property, Plant and Equipment [Line Items]
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Property, Plant, and Equipment	22,665
Grand Rapids Facility [Member] | Land and Site Improvements [Member]
Property, Plant and Equipment [Line Items]
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Property, Plant, and Equipment	3,417
Grand Rapids Facility [Member] | Building And Tenant Improvements [Member]
Property, Plant and Equipment [Line Items]
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Property, Plant, and Equipment	17,791
Grand Rapids Facility [Member] | In-place leases [Member]
Property, Plant and Equipment [Line Items]
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Property, Plant, and Equipment	761
Grand Rapids Facility [Member] | Above Market Lease intangibles [Member]
Property, Plant and Equipment [Line Items]
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Property, Plant, and Equipment	685
Grand Rapids Facility [Member] | Leasing Costs [Member]
Property, Plant and Equipment [Line Items]
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Property, Plant, and Equipment	136
Grand Rapids Facility [Member] | Below Market Lease intangible [Member]
Property, Plant and Equipment [Line Items]
Business Combination Recognized Identifiable Assets Acquired And Liabilities Assumed, Below Market Lease Intangibles	(125)
Dumfries Facility [Member]
Property, Plant and Equipment [Line Items]
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Property, Plant, and Equipment	19,621
Dumfries Facility [Member] | Land and Site Improvements [Member]
Property, Plant and Equipment [Line Items]
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Property, Plant, and Equipment	2,886
Dumfries Facility [Member] | Building And Tenant Improvements [Member]
Property, Plant and Equipment [Line Items]
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Property, Plant, and Equipment	14,862
Dumfries Facility [Member] | In-place leases [Member]
Property, Plant and Equipment [Line Items]
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Property, Plant, and Equipment	3,255
Dumfries Facility [Member] | Leasing Costs [Member]
Property, Plant and Equipment [Line Items]
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Property, Plant, and Equipment	1,037
Dumfries Facility [Member] | Below Market Lease intangible [Member]
Property, Plant and Equipment [Line Items]
Business Combination Recognized Identifiable Assets Acquired And Liabilities Assumed, Below Market Lease Intangibles	(2,419)
Centerville Facility [Member]
Property, Plant and Equipment [Line Items]
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Property, Plant, and Equipment	5,071
Centerville Facility [Member] | Land and Site Improvements [Member]
Property, Plant and Equipment [Line Items]
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Property, Plant, and Equipment	160
Centerville Facility [Member] | Building And Tenant Improvements [Member]
Property, Plant and Equipment [Line Items]
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Property, Plant, and Equipment	4,410
Centerville Facility [Member] | In-place leases [Member]
Property, Plant and Equipment [Line Items]
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Property, Plant, and Equipment	216
Centerville Facility [Member] | Leasing Costs [Member]
Property, Plant and Equipment [Line Items]
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Property, Plant, and Equipment	285
Fairfax Facility [Member]
Property, Plant and Equipment [Line Items]
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Property, Plant, and Equipment	17,879
Fairfax Facility [Member] | Land and Site Improvements [Member]
Property, Plant and Equipment [Line Items]
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Property, Plant, and Equipment	7,112
Fairfax Facility [Member] | Building And Tenant Improvements [Member]
Property, Plant and Equipment [Line Items]
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Property, Plant, and Equipment	9,621
Fairfax Facility [Member] | In-place leases [Member]
Property, Plant and Equipment [Line Items]
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Property, Plant, and Equipment	2,314
Fairfax Facility [Member] | Leasing Costs [Member]
Property, Plant and Equipment [Line Items]
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Property, Plant, and Equipment	698
Fairfax Facility [Member] | Below Market Lease intangible [Member]
Property, Plant and Equipment [Line Items]
Business Combination Recognized Identifiable Assets Acquired And Liabilities Assumed, Below Market Lease Intangibles	(1,866)
Rosedale Facilities [Member]
Property, Plant and Equipment [Line Items]
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Property, Plant, and Equipment	23,106
Rosedale Facilities [Member] | Land and Site Improvements [Member]
Property, Plant and Equipment [Line Items]
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Property, Plant, and Equipment	3,423
Rosedale Facilities [Member] | Building And Tenant Improvements [Member]
Property, Plant and Equipment [Line Items]
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Property, Plant, and Equipment	17,647
Rosedale Facilities [Member] | In-place leases [Member]
Property, Plant and Equipment [Line Items]
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Property, Plant, and Equipment	1,063
Rosedale Facilities [Member] | Above Market Lease intangibles [Member]
Property, Plant and Equipment [Line Items]
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Property, Plant, and Equipment	866
Rosedale Facilities [Member] | Leasing Costs [Member]
Property, Plant and Equipment [Line Items]
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Property, Plant, and Equipment	892
Rosedale Facilities [Member] | Below Market Lease intangible [Member]
Property, Plant and Equipment [Line Items]
Business Combination Recognized Identifiable Assets Acquired And Liabilities Assumed, Below Market Lease Intangibles	(785)
Lancaster Facility [Member]
Property, Plant and Equipment [Line Items]
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Property, Plant, and Equipment	6,305
Lancaster Facility [Member] | Land and Site Improvements [Member]
Property, Plant and Equipment [Line Items]
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Property, Plant, and Equipment	806
Lancaster Facility [Member] | Building And Tenant Improvements [Member]
Property, Plant and Equipment [Line Items]
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Property, Plant, and Equipment	4,385
Lancaster Facility [Member] | In-place leases [Member]
Property, Plant and Equipment [Line Items]
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Property, Plant, and Equipment	244
Lancaster Facility [Member] | Above Market Lease intangibles [Member]
Property, Plant and Equipment [Line Items]
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Property, Plant, and Equipment	587
Lancaster Facility [Member] | Leasing Costs [Member]
Property, Plant and Equipment [Line Items]
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Property, Plant, and Equipment	$ 283
Decatur and Jackson Facility [Member]
Property, Plant and Equipment [Line Items]
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Property, Plant, and Equipment												$ 10,885
Decatur and Jackson Facility [Member] | Land and Site Improvements [Member]
Property, Plant and Equipment [Line Items]
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Property, Plant, and Equipment												2,521
Decatur and Jackson Facility [Member] | Building And Tenant Improvements [Member]
Property, Plant and Equipment [Line Items]
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Property, Plant, and Equipment												7,436
Decatur and Jackson Facility [Member] | In-place leases [Member]
Property, Plant and Equipment [Line Items]
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Property, Plant, and Equipment												556
Decatur and Jackson Facility [Member] | Above Market Lease intangibles [Member]
Property, Plant and Equipment [Line Items]
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Property, Plant, and Equipment												135
Decatur and Jackson Facility [Member] | Leasing Costs [Member]
Property, Plant and Equipment [Line Items]
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Property, Plant, and Equipment												264
Decatur and Jackson Facility [Member] | Below Market Lease intangible [Member]
Property, Plant and Equipment [Line Items]
Business Combination Recognized Identifiable Assets Acquired And Liabilities Assumed, Below Market Lease Intangibles												$ (27)
Sheboygan and Plymouth Facility [Member]
Property, Plant and Equipment [Line Items]
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Property, Plant, and Equipment											$ 13,824
Sheboygan and Plymouth Facility [Member] | Land and Site Improvements [Member]
Property, Plant and Equipment [Line Items]
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Property, Plant, and Equipment											1,341
Sheboygan and Plymouth Facility [Member] | Building And Tenant Improvements [Member]
Property, Plant and Equipment [Line Items]
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Property, Plant, and Equipment											11,437
Sheboygan and Plymouth Facility [Member] | In-place leases [Member]
Property, Plant and Equipment [Line Items]
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Property, Plant, and Equipment											756
Sheboygan and Plymouth Facility [Member] | Leasing Costs [Member]
Property, Plant and Equipment [Line Items]
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Property, Plant, and Equipment											$ 290
Spring Hill and Hudson Facility [Member]
Property, Plant and Equipment [Line Items]
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Property, Plant, and Equipment										$ 18,218
Spring Hill and Hudson Facility [Member] | Land and Site Improvements [Member]
Property, Plant and Equipment [Line Items]
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Property, Plant, and Equipment										3,893
Spring Hill and Hudson Facility [Member] | Building And Tenant Improvements [Member]
Property, Plant and Equipment [Line Items]
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Property, Plant, and Equipment										12,955
Spring Hill and Hudson Facility [Member] | In-place leases [Member]
Property, Plant and Equipment [Line Items]
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Property, Plant, and Equipment										831
Spring Hill and Hudson Facility [Member] | Leasing Costs [Member]
Property, Plant and Equipment [Line Items]
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Property, Plant, and Equipment										$ 539
Cape Girardeau Facility [Member]
Property, Plant and Equipment [Line Items]
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Property, Plant, and Equipment									$ 7,350
Cape Girardeau Facility [Member] | Land and Site Improvements [Member]
Property, Plant and Equipment [Line Items]
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Property, Plant, and Equipment									1,223
Cape Girardeau Facility [Member] | Building And Tenant Improvements [Member]
Property, Plant and Equipment [Line Items]
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Property, Plant, and Equipment									4,865
Cape Girardeau Facility [Member] | In-place leases [Member]
Property, Plant and Equipment [Line Items]
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Property, Plant, and Equipment									687
Cape Girardeau Facility [Member] | Above Market Lease intangibles [Member]
Property, Plant and Equipment [Line Items]
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Property, Plant, and Equipment									387
Cape Girardeau Facility [Member] | Leasing Costs [Member]
Property, Plant and Equipment [Line Items]
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Property, Plant, and Equipment									$ 188
Yuma Facility [Member]
Property, Plant and Equipment [Line Items]
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Property, Plant, and Equipment								$ 6,979
Yuma Facility [Member] | Land and Site Improvements [Member]
Property, Plant and Equipment [Line Items]
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Property, Plant, and Equipment								1,350
Yuma Facility [Member] | Building And Tenant Improvements [Member]
Property, Plant and Equipment [Line Items]
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Property, Plant, and Equipment								4,989
Yuma Facility [Member] | In-place leases [Member]
Property, Plant and Equipment [Line Items]
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Property, Plant, and Equipment								439
Yuma Facility [Member] | Above Market Lease intangibles [Member]
Property, Plant and Equipment [Line Items]
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Property, Plant, and Equipment								65
Yuma Facility [Member] | Leasing Costs [Member]
Property, Plant and Equipment [Line Items]
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Property, Plant, and Equipment								$ 136
Las Vegas Facility [Member]
Property, Plant and Equipment [Line Items]
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Property, Plant, and Equipment							$ 7,124
Las Vegas Facility [Member] | Land and Site Improvements [Member]
Property, Plant and Equipment [Line Items]
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Property, Plant, and Equipment							311
Las Vegas Facility [Member] | Building And Tenant Improvements [Member]
Property, Plant and Equipment [Line Items]
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Property, Plant, and Equipment							$ 6,813
Pensacola Facility [Member]
Property, Plant and Equipment [Line Items]
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Property, Plant, and Equipment						$ 9,052
Pensacola Facility [Member] | Land and Site Improvements [Member]
Property, Plant and Equipment [Line Items]
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Property, Plant, and Equipment						2,118
Pensacola Facility [Member] | Building And Tenant Improvements [Member]
Property, Plant and Equipment [Line Items]
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Property, Plant, and Equipment						6,153
Pensacola Facility [Member] | In-place leases [Member]
Property, Plant and Equipment [Line Items]
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Property, Plant, and Equipment						456
Pensacola Facility [Member] | Leasing Costs [Member]
Property, Plant and Equipment [Line Items]
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Property, Plant, and Equipment						$ 325
Venice Facility [Member]
Property, Plant and Equipment [Line Items]
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Property, Plant, and Equipment					$ 6,975
Venice Facility [Member] | Land and Site Improvements [Member]
Property, Plant and Equipment [Line Items]
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Property, Plant, and Equipment					1,895
Venice Facility [Member] | Building And Tenant Improvements [Member]
Property, Plant and Equipment [Line Items]
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Property, Plant, and Equipment					4,537
Venice Facility [Member] | In-place leases [Member]
Property, Plant and Equipment [Line Items]
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Property, Plant, and Equipment					387
Venice Facility [Member] | Leasing Costs [Member]
Property, Plant and Equipment [Line Items]
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Property, Plant, and Equipment					$ 156

XML

Property Portfolio - Summary of the carrying amount of intangible assets and liabilities (Details) - USD ($) $ in Thousands	Mar. 31, 2021	Dec. 31, 2020
Assets
Cost	$ 103,269	$ 98,234
Accumulated Amortization	(28,374)	(24,899)
Net	74,895	73,335
Liabilities
Cost	10,279	10,072
Accumulated Amortization	(2,281)	(1,850)
Net	7,998	8,222
In-place leases [Member]
Assets
Cost	58,284	55,561
Accumulated Amortization	(16,682)	(14,592)
Net	41,602	40,969
Above Market Lease intangibles [Member]
Assets
Cost	15,357	14,972
Accumulated Amortization	(4,514)	(4,023)
Net	10,843	10,949
Leasing Costs [Member]
Assets
Cost	29,628	27,701
Accumulated Amortization	(7,178)	(6,284)
Net	$ 22,450	$ 21,417

XML

Property Portfolio - Summary of the acquired lease intangible amortization (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2021	Mar. 31, 2020
In-place leases [Member]
Property, Plant and Equipment [Line Items]
Finite-Lived Intangible Assets, Accumulated Amortization	$ 2,090	$ 1,333
Leasing Costs [Member]
Property, Plant and Equipment [Line Items]
Finite-Lived Intangible Assets, Accumulated Amortization	894	588
Above Market Lease intangibles [Member]
Property, Plant and Equipment [Line Items]
Finite-Lived Intangible Assets, Accumulated Amortization	491	375
Below Market Lease intangible [Member]
Property, Plant and Equipment [Line Items]
Finite-Lived Intangible Assets, Accumulated Amortization	$ 431	$ 128

XML

Property Portfolio - Net amortization of the acquired lease intangible (Details) $ in Thousands	Mar. 31, 2021 USD ($)
Net Decrease in Revenue
2021 (nine months remaining)	$ (205)
2022	(290)
2023	(324)
2024	(104)
2025	(438)
Thereafter	(1,484)
Total	(2,845)
Net Increase in Expenses
2021 (nine months remaining)	8,633
2022	11,294
2023	10,332
2024	8,939
2025	5,919
Thereafter	18,935
Total	$ 64,052

XML

Property Portfolio - (Details) $ in Thousands																					3 Months Ended		12 Months Ended
	Jan. 15, 2021 USD ($) lease property	Jan. 12, 2021 USD ($) lease	Dec. 30, 2020 USD ($) item lease property	Dec. 29, 2020 USD ($) tenant property lease	Dec. 14, 2020 USD ($) lease property	Dec. 01, 2020 USD ($) lease property	Nov. 23, 2020 USD ($)	Nov. 18, 2020 USD ($) lease property	Oct. 27, 2020 USD ($) property lease tenant	Oct. 20, 2020 USD ($) property lease tenant	Sep. 30, 2020 USD ($) lease	Sep. 18, 2020 USD ($)	Jul. 31, 2020 USD ($) tenant lease	Jul. 17, 2020 USD ($)	Jul. 16, 2020 USD ($)	Apr. 27, 2020 USD ($)	Mar. 20, 2020 USD ($) lease	Mar. 04, 2020 USD ($)	Feb. 27, 2020 USD ($)	Feb. 13, 2020 USD ($)	Mar. 31, 2021 USD ($)	Mar. 31, 2020 USD ($)	Dec. 31, 2020 USD ($) item
Property, Plant and Equipment [Line Items]
Number of Properties Acquired | item																							18
Depreciation, Total																					$ 7,848	$ 5,836
Tenant Improvement Allowances Receivable																					29,500
Capital Lease Obligations, Noncurrent																					18,900
Property, Plant and Equipment, Additions																					$ 43,570		$ 237,376
Debt Instrument, Term																					2 years 6 months 29 days		2 years 9 months 14 days
Commercial mortgage-backed securities (CMBS)
Property, Plant and Equipment [Line Items]
Debt Instrument, Face Amount																$ 12,100
Debt Instrument, Interest Rate, Stated Percentage																4.68%
Debt Instrument, Term																4 years
Lease Intangibles Asset [Member]
Property, Plant and Equipment [Line Items]
Finite-Lived Intangible Asset, Useful Life																					5 years 2 months 12 days
Lease Intangibles Liability [Member]
Property, Plant and Equipment [Line Items]
Finite-Lived Intangible Asset, Useful Life																					4 years 7 months 6 days
Land [Member]
Property, Plant and Equipment [Line Items]
Property, Plant and Equipment, Additions																					$ 4,183		$ 33,476
El Paso Facility [Member]
Property, Plant and Equipment [Line Items]
Property, Plant and Equipment, Additions		$ 10,000																			10,017
Number or leases assumed | lease		3
Lessor, Operating Lease, Term of Contract		4 years
El Paso Facility [Member] | Land [Member]
Property, Plant and Equipment [Line Items]
Property, Plant and Equipment, Additions																					899
Syracuse Facility [Member]
Property, Plant and Equipment [Line Items]
Property, Plant and Equipment, Additions	$ 6,200																				6,397
Number or leases assumed | lease	2
Lessor, Operating Lease, Term of Contract	8 years
Syracuse Facility [Member] | Land [Member]
Property, Plant and Equipment [Line Items]
Property, Plant and Equipment, Additions																					616
West El Paso Facility [Member]
Property, Plant and Equipment [Line Items]
Number of Properties Acquired | property	2
Property, Plant and Equipment, Additions	$ 9,600																				9,578
Number of new leases entered into | lease	2
Lessor, Operating Lease, Term of Contract	12 years
Leases with tenant renewal options | lease	3
Operating Lease, Weighted Average Remaining Lease Term	7 years
West El Paso Facility [Member] | Land [Member]
Property, Plant and Equipment [Line Items]
Property, Plant and Equipment, Additions																					851
Fort Worth Facility [Member]
Property, Plant and Equipment [Line Items]
Property, Plant and Equipment, Additions																					17,444
Fort Worth Facility [Member] | Land [Member]
Property, Plant and Equipment [Line Items]
Property, Plant and Equipment, Additions																					$ 1,817
High Point Facility [Member]
Property, Plant and Equipment [Line Items]
Property, Plant and Equipment, Additions																				$ 25,100			25,081
Lessor, Operating Lease, Term of Contract																				3 years
High Point Facility [Member] | Land [Member]
Property, Plant and Equipment [Line Items]
Property, Plant and Equipment, Additions																							1,749
Clinton Facility [Member]
Property, Plant and Equipment [Line Items]
Property, Plant and Equipment, Additions																			$ 11,600				11,619
Lessor, Operating Lease, Term of Contract																			4 years
Clinton Facility [Member] | Land [Member]
Property, Plant and Equipment [Line Items]
Property, Plant and Equipment, Additions																							664
West Allis Facility [Member]
Property, Plant and Equipment [Line Items]
Property, Plant and Equipment, Additions																		$ 9,100					9,357
Lessor, Operating Lease, Term of Contract																		4 years
West Allis Facility [Member] | Land [Member]
Property, Plant and Equipment [Line Items]
Property, Plant and Equipment, Additions																							974
Grand Rapids Facility [Member]
Property, Plant and Equipment [Line Items]
Property, Plant and Equipment, Additions																	$ 22,700						22,794
Number or leases assumed | lease																	11
Lessor, Operating Lease, Term of Contract																	5 years
Grand Rapids Facility [Member] | Land [Member]
Property, Plant and Equipment [Line Items]
Property, Plant and Equipment, Additions																							2,951
Dumfries Facility [Member]
Property, Plant and Equipment [Line Items]
Property, Plant and Equipment, Additions																$ 19,600
Lessor, Operating Lease, Term of Contract																9 years 6 months
Centerville Facility [Member]
Property, Plant and Equipment [Line Items]
Property, Plant and Equipment, Additions															$ 5,100								5,071
Lessor, Operating Lease, Term of Contract															10 years 6 months
Centerville Facility [Member] | Land [Member]
Property, Plant and Equipment [Line Items]
Operating Lease, Weighted Average Remaining Lease Term															49 years
Fairfax Facility [Member]
Property, Plant and Equipment [Line Items]
Property, Plant and Equipment, Additions														$ 17,900									19,745
Lessor, Operating Lease, Term of Contract														9 years 1 month 6 days
Fairfax Facility [Member] | Land [Member]
Property, Plant and Equipment [Line Items]
Property, Plant and Equipment, Additions																							6,731
Rosedale Facilities [Member]
Property, Plant and Equipment [Line Items]
Property, Plant and Equipment, Additions													$ 23,100										23,891
Debt Instrument, Face Amount													$ 14,800
Debt Instrument, Interest Rate, Stated Percentage													3.85%
Debt Instrument, Term													5 years
Number or leases assumed | lease													8
Number of tenants assumed | tenant													6
Lessor, Operating Lease, Term of Contract													6 years 7 months 6 days
Rosedale Facilities [Member] | Land [Member]
Property, Plant and Equipment [Line Items]
Property, Plant and Equipment, Additions																							2,856
Lancaster Facility [Member]
Property, Plant and Equipment [Line Items]
Property, Plant and Equipment, Additions												$ 6,300											6,305
Lessor, Operating Lease, Term of Contract												8 years 6 months
Lancaster Facility [Member] | Land [Member]
Property, Plant and Equipment [Line Items]
Property, Plant and Equipment, Additions																							696
Winston-Salem Facility [Member]
Property, Plant and Equipment [Line Items]
Property, Plant and Equipment, Additions											$ 8,500												9,240
Number or leases assumed | lease											5
Lessor, Operating Lease, Term of Contract											4 years
Winston-Salem Facility [Member] | Land [Member]
Property, Plant and Equipment [Line Items]
Property, Plant and Equipment, Additions																							1,524
Decatur and Jackson Facility [Member]
Property, Plant and Equipment [Line Items]
Number of Properties Acquired | property										2
Property, Plant and Equipment, Additions										$ 10,900													10,912
Number or leases assumed | lease										6
Number of tenants assumed | tenant										5
Operating Lease, Weighted Average Remaining Lease Term										6 years
Decatur and Jackson Facility [Member] | Decatur [Member]
Property, Plant and Equipment [Line Items]
Number of Properties Acquired | property										1
Decatur and Jackson Facility [Member] | Jackson [Member]
Property, Plant and Equipment [Line Items]
Number of Properties Acquired | property										1
Decatur and Jackson Facility [Member] | Land [Member]
Property, Plant and Equipment [Line Items]
Property, Plant and Equipment, Additions																							2,237
Sheboygan and Plymouth Facility [Member]
Property, Plant and Equipment [Line Items]
Number of Properties Acquired | property									2
Property, Plant and Equipment, Additions									$ 13,800														13,824
Number or leases assumed | lease									3
Number of tenants assumed | tenant									2
Operating Lease, Weighted Average Remaining Lease Term									5 years
Sheboygan and Plymouth Facility [Member] | Sheboygan [Member]
Property, Plant and Equipment [Line Items]
Number of Properties Acquired | property									1
Sheboygan and Plymouth Facility [Member] | Plymouth [Member]
Property, Plant and Equipment [Line Items]
Number of Properties Acquired | property									1
Sheboygan and Plymouth Facility [Member] | Land [Member]
Property, Plant and Equipment [Line Items]
Property, Plant and Equipment, Additions																							1,088
Spring Hill and Hudson Facility [Member]
Property, Plant and Equipment [Line Items]
Number of Properties Acquired | property								3
Property, Plant and Equipment, Additions								$ 18,200															18,218
Number or leases assumed | lease								3
Lessor, Operating Lease, Term of Contract								8 years
Spring Hill and Hudson Facility [Member] | Spring Hill [Member]
Property, Plant and Equipment [Line Items]
Number of Properties Acquired | property								2
Spring Hill and Hudson Facility [Member] | Hudson [Member]
Property, Plant and Equipment [Line Items]
Number of Properties Acquired | property								1
Spring Hill and Hudson Facility [Member] | Land [Member]
Property, Plant and Equipment [Line Items]
Property, Plant and Equipment, Additions																							3,473
Cape Girardeau Facility [Member]
Property, Plant and Equipment [Line Items]
Property, Plant and Equipment, Additions							$ 7,400																7,350
Lessor, Operating Lease, Term of Contract							6 years
Cape Girardeau Facility [Member] | Land [Member]
Property, Plant and Equipment [Line Items]
Property, Plant and Equipment, Additions																							1,150
Yuma Facility [Member]
Property, Plant and Equipment [Line Items]
Number of Properties Acquired | property						2
Property, Plant and Equipment, Additions						$ 7,000																	6,979
Number or leases assumed | lease						2
Operating Lease, Weighted Average Remaining Lease Term						4 years
Yuma Facility [Member] | Land [Member]
Property, Plant and Equipment [Line Items]
Property, Plant and Equipment, Additions																							1,041
Las Vegas Facility [Member]
Property, Plant and Equipment [Line Items]
Number of Properties Acquired | property					2
Property, Plant and Equipment, Additions					$ 7,100																		7,124
Number of new leases entered into | lease					2
Lessor, Operating Lease, Term of Contract					12 years
Las Vegas Facility [Member] | Land [Member]
Property, Plant and Equipment [Line Items]
Property, Plant and Equipment, Additions																							311
Pensacola Facility [Member]
Property, Plant and Equipment [Line Items]
Number of Properties Acquired | property				3
Property, Plant and Equipment, Additions				$ 9,100																			9,052
Number or leases assumed | lease				3
Number of tenants assumed | tenant				2
Operating Lease, Weighted Average Remaining Lease Term				9 years
Pensacola Facility [Member] | Land [Member]
Property, Plant and Equipment [Line Items]
Property, Plant and Equipment, Additions																							1,786
Venice Facility [Member]
Property, Plant and Equipment [Line Items]
Number of Properties Acquired | property			2
Property, Plant and Equipment, Additions			$ 7,000																				6,975
Number or leases assumed | lease			2
Lessor, Operating Lease, Term of Contract			5 years 6 months
Leases with tenant renewal options | item			0
Venice Facility [Member] | Land [Member]
Property, Plant and Equipment [Line Items]
Property, Plant and Equipment, Additions																							$ 1,648

XML

Credit Facility, Notes Payable and Derivative Instruments - Schedule of outstanding borrowings under the Credit Facility (Details) - USD ($) $ in Thousands	Mar. 31, 2021	Dec. 31, 2020
Long-term Line of Credit	$ 420,216	$ 521,641
Less: Unamortized deferred financing costs	(772)	(835)
Revolving Credit Facility [Member]
Long-term Line of Credit	73,500	175,200
Term Loan [Member]
Long-term Line of Credit	350,000	350,000
Credit facility [Member]
Less: Unamortized deferred financing costs	$ (3,284)	$ (3,559)

XML

Credit Facility, Notes Payable and Derivative Instruments - Schedule of net of unamortized discount balances (Details) - USD ($) $ in Thousands	Mar. 31, 2021	Dec. 31, 2020
Credit Facility, Notes Payable and Derivative Instruments
Notes payable, gross	$ 66,349	$ 66,349
Less: Unamortized debt issuance costs	(772)	(835)
Cumulative principal repayment	(767)	(577)
Notes payable, net	$ 64,810	$ 64,937

XML

Credit Facility, Notes Payable and Derivative Instruments - Scheduled Principal Payments Due On Cantor Loan Note Payable (Details) - USD ($) $ in Thousands	Mar. 31, 2021	Dec. 31, 2020	Jul. 31, 2020	Apr. 27, 2020
Rosedale Loan [Member]
Notes Payable and Revolving Credit Facility
2021 (nine months remaining)	$ 270
2022	376
2023	391
2024	405
2025	13,158
Total	14,600		$ 14,800
Dumfries Loan [Member]
Notes Payable and Revolving Credit Facility
2021 (nine months remaining)	206
2022	288
2023	302
2024	11,034
Total	11,830			$ 12,074
Cantor Loan [Member]
Notes Payable and Revolving Credit Facility
2021 (nine months remaining)	282
2022	447
2023	471
2024	492
2025	523
Thereafter	29,882
Total	$ 32,097	$ 32,097

XML

Credit Facility, Notes Payable and Derivative Instruments - Derivative Instruments (Details) $ in Millions	Mar. 31, 2021 USD ($) item
Interest Rate Swap [Member]
Debt Instrument [Line Items]
Derivative, Number of Instruments Held | item	6
Derivative, Fixed Interest Rate	1.91%
Derivative, Notional Amount	$ 350
Wells Fargo Bank, N.A [Member] | Interest Rate Swap Agreement With Interest Rate 0.158 Percent Maturing August 2023 [Member]
Debt Instrument [Line Items]
Derivative, Fixed Interest Rate	0.16%
Derivative, Notional Amount	$ 50
BMO Harris Bank N.A. [Member] | Interest Rate Swap Agreement with Interest Rate 2.88 Percent Maturing August 2023 [Member]
Debt Instrument [Line Items]
Derivative, Fixed Interest Rate	2.88%
Derivative, Notional Amount	$ 100
BMO Harris Bank N.A. [Member] | Interest Rate Swap Agreement with Interest Rate 1.21 Percent Maturing August 2024 [Member]
Debt Instrument [Line Items]
Derivative, Fixed Interest Rate	1.21%
Derivative, Notional Amount	$ 90
Truist Bank [Member] | Interest Rate Swap Agreement with Interest Rate 1.21 Percent Maturing August 2024 [Member]
Debt Instrument [Line Items]
Derivative, Fixed Interest Rate	1.21%
Derivative, Notional Amount	$ 40
Truist Bank [Member] | Interest Rate Swap Agreement with Interest Rate 2.93 Percent Maturing August 2024 [Member]
Debt Instrument [Line Items]
Derivative, Fixed Interest Rate	2.93%
Derivative, Notional Amount	$ 40
Citizens Bank National Association [Member] | Interest Rate Swap Agreement with Interest Rate 2.93 Percent Maturing August 2024 [Member]
Debt Instrument [Line Items]
Derivative, Fixed Interest Rate	2.93%
Derivative, Notional Amount	$ 30

XML

Credit Facility, Notes Payable and Derivative Instruments - Schedule of interest rate swap agreement (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2021	Mar. 31, 2020
Credit Facility, Notes Payable and Derivative Instruments
Amount of loss recognized in other comprehensive loss	$ (2,082)	$ 14,466
Amount of loss reclassified from accumulated other comprehensive loss into interest expense	(1,549)	(508)
Total other comprehensive loss	$ (3,631)	$ 13,958

XML

Credit Facility, Notes Payable and Derivative Instruments (Details) $ in Thousands					3 Months Ended		12 Months Ended
	May 03, 2021 USD ($)	May 02, 2021 item	Jul. 31, 2020 USD ($)	Apr. 27, 2020 USD ($)	Mar. 31, 2021 USD ($)	Mar. 31, 2020 USD ($)	Dec. 31, 2020 USD ($)	Sep. 25, 2020	Sep. 25, 2015 USD ($)
Notes Payable and Revolving Credit Facility
Amortization of Financing Costs					$ 63	$ 33
Other Operating Activities, Cash Flow Statement					50,100	81,700
Increase (Decrease) in Security Deposits					27	195
Repayments of Lines of Credit					$ 151,800	3,600
Debt Instrument, Term					2 years 6 months 29 days		2 years 9 months 14 days
Note balance					$ 66,349		$ 66,349
Line Of Credit Cash Paid Other					74	44
Repayments of Notes Payable					190	35
Additional Interest Expense					6,173
Interest Expense, Total					$ 5,037	4,378
Weighted average interest rate basis					3.66%		3.17%
Interest Rate Swap [Member]
Notes Payable and Revolving Credit Facility
Derivative Instruments in Hedges, Liabilities, at Fair Value					$ 14,467		$ 18,086
Credit Facility [Member]
Notes Payable and Revolving Credit Facility
Credit Facility maximum borrowing capacity					600,000	600,000
Credit Facility [Member] | Subsequent Event
Notes Payable and Revolving Credit Facility
Credit Facility maximum borrowing capacity	$ 750,000
Maximum consolidated leverage ratio under financial covenants	60
Minimum fixed charge coverage ratio under financial covenants	1.50
Percentage of net proceeds raised, covenant	75.00%
Covenant compliance	As of May 3, 2021, management believed it was in compliance with all of the financial and non-financial covenants contained in the Amended and Restated Credit Facility.
Credit facility optional extension period	6 months
Minimum Net Worth Required for Compliance	$ 345,000
Debt instrument extensions | item		2
Revolving Credit Facility [Member]
Notes Payable and Revolving Credit Facility
Credit Facility maximum borrowing capacity					250,000	250,000
Amortization of Financing Costs					349	269
Increase (Decrease) in Security Deposits					3,585
Note balance					101,700	78,100
Interest Expense, Total					3,852	3,585
Revolving Credit Facility [Member] | Subsequent Event
Notes Payable and Revolving Credit Facility
Credit Facility maximum borrowing capacity	400,000
Term Loan [Member]
Notes Payable and Revolving Credit Facility
Credit Facility maximum borrowing capacity					350,000	350,000
Term Loan [Member] | Subsequent Event
Notes Payable and Revolving Credit Facility
Credit Facility maximum borrowing capacity	$ 350,000
Rosedale Loan [Member]
Notes Payable and Revolving Credit Facility
Long-term Debt, Total			$ 14,800		$ 14,600
Debt Instrument, Interest Rate, Stated Percentage			3.85%
Debt Instrument, Maturity Date					Jul. 31, 2025
Interest Expense, Debt					$ 141
Debt Instrument, Term			25 years
Principal payments made					91
Dumfries Loan [Member]
Notes Payable and Revolving Credit Facility
Long-term Debt, Total				$ 12,074	11,830
Debt Instrument, Interest Rate, Stated Percentage				4.68%
Interest Expense, Debt					138
Debt Instrument, Term				10 years
Principal payments made					69
Cantor Loan [Member]
Notes Payable and Revolving Credit Facility
Long-term Debt, Total					$ 32,097		32,097
Debt Instrument, Interest Rate, Stated Percentage					5.22%
Debt Instrument, Maturity Date					Apr. 06, 2026
Debt Instrument, Term					30 years
Interest Expense, Total					$ 419	423
West Mifflin Loan [Member]
Notes Payable and Revolving Credit Facility
Long-term Debt, Total					$ 7,055		$ 7,085		$ 7,378
Debt Instrument, Interest Rate, Stated Percentage								4.25%
Debt Instrument, Maturity Date					Sep. 25, 2021
Interest Expense, Debt					$ 75	68
Principal payments made						$ 35
Repayments of Notes Payable					$ 30

XML

Equity - Summary of Preferred Stock Dividend Activity (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended
	Mar. 31, 2021	Dec. 31, 2020	Mar. 31, 2020
Dividend Amount	$ 14,482	$ 12,470
Common Stock [Member]
Dividend Amount	$ 67		$ 279
Preferred Stock [Member] | Dividend declared on December 16,2020
Date Announced	Dec. 16, 2020
Record Date	Jan. 15, 2021
Payment Date	Feb. 01, 2021
Dividend Amount	$ 1,455
Dividends per Share	$ 0.46875
Preferred Stock [Member] | Dividend declared on March 02 2021 [Member]
Date Announced	Mar. 03, 2021
Record Date	Apr. 15, 2021
Payment Date	Apr. 30, 2021
Dividend Amount	$ 1,455
Dividends per Share	$ 0.46875
Common Stock [Member] | Dividend declared on December 16,2020
Date Announced	Dec. 16, 2020
Record Date	Dec. 28, 2020
Payment Date	Jan. 11, 2021
Dividend Amount	$ 10,573
Dividends per Share	$ 0.20
Common Stock [Member] | Dividend declared on March 02 2021 [Member]
Date Announced	Mar. 03, 2021
Record Date	Mar. 24, 2021
Payment Date	Apr. 08, 2021
Dividend Amount	$ 13,260
Dividends per Share	$ 0.205

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Equity - Additional Information (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands		3 Months Ended		12 Months Ended
	Mar. 18, 2021	Mar. 31, 2021	Mar. 31, 2020	Dec. 31, 2020
Preferred Stock, Shares Authorized		10,000		10,000
Preferred Stock, Par or Stated Value Per Share		$ 0.001		$ 0.001
Preferred Stock, Shares Issued		3,105		3,105
Preferred Stock, Shares Outstanding		3,105		3,105
Dividend Accrued		$ 970
Common Stock, Shares Authorized		500,000		500,000
Common Stock, Par or Stated Value Per Share		$ 0.001		$ 0.001
Common Stock, Shares, Outstanding		60,794		49,461
Proceeds		$ 144,312
Payments of Dividends, Total		1,455	$ 1,455
Payment Of Dividends Common Stock Op And Ltip Units		11,315	10,031	$ 10,031
Dividends Payable		$ 14,482		$ 12,470
Partners' Capital Account, Units, Treasury Units Purchased		0		1,379
Partners' Capital Account, Treasury Units, Purchased				$ 17,882
Limited Partners' Capital Account, Units Issued		1,764		1,764
Limited Partners' Capital Account		$ 9,999		$ 9,999
IPO [Member]
Proceeds	$ 109,550
Shares issued	8,625
Offering price (Dollars per share)	$ 13.30
ATM
Proceeds		$ 34,880
Shares issued		2,709
Offering price (Dollars per share)		$ 13.07
Common Stock [Member]
Payments of Dividends, Total		$ 742	490
Dividends Payable		$ 67	$ 279
Series A Preferred Stock [Member]
Preferred Stock, Shares Issued		3,105		3,105
Preferred Stock, Shares Outstanding		3,105		3,105
Preferred Stock, Dividend Rate, Percentage		7.50%
Preferred Stock, Liquidation Preference Per Share		$ 25.00		$ 25
Dividends Payable, Amount Per Share		$ 1.875
Long Term Incentives Plan Units Member
Dividends Payable		$ 252		$ 927

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Related Party Transactions (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2020	Mar. 31, 2021	Dec. 31, 2020
Related Party Transactions
Management fee expense incurred	$ 2,002
Due from related parties		$ 229	$ 103
Due to related party		$ 0	$ 0
Incentive management fee	$ 0

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Related Party Transactions - Pro Forma Revenue and Net Income (Details) - Inter-American Group Holdings Incorporated [Member] $ in Thousands	3 Months Ended
	Mar. 31, 2020 USD ($)
Business Acquisition [Line Items]
Pro forma total revenue	$ 21,649
Net income	$ 1,942

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Stock-Based Compensation - TRIP Unit Activity (Details) shares in Thousands	3 Months Ended
	Mar. 31, 2021 shares
2018 Program [Member] | Long Term Incentives Plan Units [Member]
Number of units issued	220
Long Term Incentive Plan 2020 [Member] | Long Term Incentives Plan Units [Member]
Number of units issued	267
Vesting percentage	50.00%
Share-based Compensation Award, Tranche One [Member] | Long-Term Awards [Member]
Vesting percentage	75.00%
Share-based Compensation Award, Tranche One [Member] | Long Term Incentives Plan Units [Member]
Vesting percentage	50.00%
Share-based Compensation Award, Tranche One [Member] | 2018 Program [Member] | Long Term Incentives Plan Units [Member]
Vesting percentage	50.00%
Share-based Compensation Award, Tranche One [Member] | Long Term Incentive Plan 2020 [Member] | Long Term Incentives Plan Units [Member]
Vesting percentage	50.00%
Share-based Compensation Award, Tranche Two [Member] | Long-Term Awards [Member]
Vesting percentage	25.00%
Share-based Compensation Award, Tranche Two [Member] | Long Term Incentives Plan Units [Member]
Vesting percentage	50.00%
Share-based Compensation Award, Tranche Two [Member] | 2018 Program [Member] | Long Term Incentives Plan Units [Member]
Vesting percentage	50.00%

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Stock-Based Compensation - Vested and unvested LTIP units (Details) shares in Thousands	3 Months Ended
	Mar. 31, 2021 shares
Stock-Based Compensation
Total vested units	1,288
Total unvested units	838
LTIP Units outstanding as of September 30, 2020	2,126

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Stock-Based Compensation - Long-Term Awards (Details) shares in Thousands	Mar. 31, 2021 shares
Total target performance awards as of December 31, 2020	320
2018 Program [Member] | Long-Term Awards [Member]
Total target performance awards as of December 31, 2020	82	[1]
2019 Program [Member] | Long-Term Awards [Member]
Total target performance awards as of December 31, 2020	70	[1]
2020 Program [Member] | Annual Awards [Member]
Total target performance awards as of December 31, 2020	92
2020 Program [Member] | Long-Term Awards [Member]
Total target performance awards as of December 31, 2020	76

[1] 2019 Long-Term Awards

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Stock-Based Compensation - Assumptions Long-Term Awards (Details) - Long-Term Awards [Member] - $ / shares shares in Thousands	3 Months Ended	12 Months Ended
	Mar. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
2020 Program [Member]
Fair value	$ 14.86
Target awards	76
Volatility	42.37%
Risk-free rate	0.26%
Dividend assumption	reinvested
Expected term in years	3 years
2019 Program [Member]
Fair value		$ 13.47
Target awards		70
Volatility		28.75%
Risk-free rate		0.72%
Dividend assumption		reinvested
Expected term in years		3 years
2018 Program [Member]
Fair value			$ 10.07
Target awards			82
Volatility			31.70%
Risk-free rate			2.50%
Dividend assumption			reinvested
Expected term in years			3 years

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Stock-Based Compensation (Details) - USD ($) shares in Thousands	3 Months Ended
	Mar. 31, 2021	Mar. 31, 2020
Share-based Compensation	$ 1,715,000	$ 922,000
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized	$ 8,500
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized, Period for Recognition	2 years 3 months 18 days
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Expected Dividend Rate	0.00%
Expected dividend rate	0.00%
Long-Term Awards [Member]
Share based compensation maximum percentage of target that may be earned	200.00%
Performance period	3 years
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period	3 years
Long Term Incentives Plan Units [Member]
Share based compensation maximum percentage of target that may be earned	150.00%
Long Term Incentives Plan Units [Member] | 2016 Equity Incentive Plan [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Available for Grant	34
Long Term Incentives Plan Units [Member] | Annual Award Agreements [Member]
Share Based Compensation Estimated Percentage Of Performance Goals	100.00%
Long Term Incentives Plan Units [Member] | Long Term Incentive Plan 2020 [Member]
Vesting percentage	50.00%
Share-based Compensation Award, Tranche One [Member] | Long-Term Awards [Member]
Vesting percentage	75.00%
Share-based Compensation Award, Tranche One [Member] | Long Term Incentives Plan Units [Member]
Vesting percentage	50.00%
Share-based Compensation Award, Tranche One [Member] | Long Term Incentives Plan Units [Member] | 2018 Program [Member]
Vesting percentage	50.00%
Share-based Compensation Award, Tranche One [Member] | Long Term Incentives Plan Units [Member] | Long Term Incentive Plan 2020 [Member]
Vesting percentage	50.00%
Share-based Compensation Award, Tranche Two [Member] | Long-Term Awards [Member]
Vesting percentage	25.00%
Share-based Compensation Award, Tranche Two [Member] | Long Term Incentives Plan Units [Member]
Vesting percentage	50.00%
Share-based Compensation Award, Tranche Two [Member] | Long Term Incentives Plan Units [Member] | 2018 Program [Member]
Vesting percentage	50.00%

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Leases - Aggregate annual minimum cash to be received by the Company on the noncancelable operating leases (Details) $ in Thousands	Mar. 31, 2021 USD ($)
Leases
2021 (nine months remaining)	$ 70,193
2022	93,549
2023	91,097
2024	83,921
2025	72,268
Thereafter	388,529
Total	$ 799,557

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Leases - Scheduled obligations for future minimum payments on operating ground leases (Details) $ in Thousands	Mar. 31, 2021 USD ($)
Leases
2021 (nine months remaining)	$ 290
2022	409
2023	174
2024	129
2025	129
Thereafter	4,498
Total	5,629
Discount	(2,733)
Lease liability	$ 2,896

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Leases - Additional Information (Details) $ in Thousands	3 Months Ended
	Mar. 31, 2021 USD ($) property tenant	Mar. 31, 2020 USD ($)
Leases
Operating Lease Average Remaining Lease Term	10 years
Rental revenue	$ 27,325	$ 21,533
Variable lease payments	$ 1,374	1,484
Weighted average discount rate	7.50%
Lease Expense	$ 36	42
Paid in cash	$ 30	$ 16
Number of tenants | tenant	117
Number of facilities leased | property	90
Concentration Risk, Customer	During this period there were no tenants with rental revenue that exceeded 10% of the Company’s rental revenue.

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Subsequent Events - Additional Information (Details) $ in Millions	May 04, 2021 contract	May 03, 2021 USD ($) item	Mar. 31, 2021 USD ($) item	Mar. 31, 2020 USD ($)
Subsequent Event | Through August 2023 [Member]
Subsequent Events
Interest rate	1.91%
Subsequent Event | August 2023 to August 2024 [Member]
Subsequent Events
Interest rate	1.61%
Subsequent Event | August 2024 to May 2026 [Member]
Subsequent Events
Interest rate	1.45%
Credit Facility [Member]
Subsequent Events
Credit Facility maximum borrowing capacity			$ 600	$ 600
Credit Facility [Member] | Subsequent Event
Subsequent Events
Credit Facility maximum borrowing capacity		$ 750
Credit facility extension options | item		2
Credit facility optional extension period		6 months
Maximum consolidated unsecured leverage ratio under financial covenants		60.00%
Maximum consolidated secured leverage ratio under financial covenants		30.00%
Maximum consolidated secured recourse leverage ratio under financial covenants		10.00%
Minimum fixed charge coverage ratio under financial covenants		1.50
Minimum unsecured interest coverage ratio under financial covenants		1.50
Maximum consolidated leverage ratio under financial covenants		60
Minimum net worth required for compliance		$ 345
Percentage of net proceeds raised, covenant		75.00%
Covenant compliance		As of May 3, 2021, management believed it was in compliance with all of the financial and non-financial covenants contained in the Amended and Restated Credit Facility.
Credit Facility [Member] | Subsequent Event | Amended and Restated Credit Facility [Member]
Subsequent Events
Credit Facility maximum borrowing capacity		$ 750
Revolving Credit Facility [Member]
Subsequent Events
Credit Facility maximum borrowing capacity			250	250
Revolving Credit Facility [Member] | Subsequent Event
Subsequent Events
Credit Facility maximum borrowing capacity		400
The Revolver [Member] | Subsequent Event | Amended and Restated Credit Facility [Member]
Subsequent Events
Credit Facility maximum borrowing capacity		400
The Term loan [Member] | Subsequent Event | Amended and Restated Credit Facility [Member]
Subsequent Events
Credit Facility maximum borrowing capacity		350
Accordion [Member] | Subsequent Event | Amended and Restated Credit Facility [Member]
Subsequent Events
Credit Facility maximum borrowing capacity		500
Term Loan [Member]
Subsequent Events
Credit Facility maximum borrowing capacity			$ 350	$ 350
Term Loan [Member] | Subsequent Event
Subsequent Events
Credit Facility maximum borrowing capacity		$ 350
Interest Rate Swap [Member]
Subsequent Events
Number of interest rate swaps entered | item			6
Derivative fixed rate			1.91%
Derivative, Notional Amount			$ 350
Interest Rate Swap [Member] | Subsequent Event
Subsequent Events
Number of interest rate swaps entered | contract	5