Covered at the new, lower rate — after a 36% cut. A monthly payer, renamed from Global Medical REIT on February 23, 2026. The monthly rate was cut from $0.25 to $0.16 a share — about 36% — for July, August and September 2026, and the new $1.92 annualized rate is covered with room: second-quarter funds available for distribution were $11.7 million, or about $0.81 a share, against the $0.48 quarterly run-rate, and core FFO was $1.04 a share. But the direction is the wrong way — core FFO fell from $1.14 a year earlier, FAD fell from $14.1 million, and leverage sits near 6.1× while the company pivots into seniors housing operations, where its second community was only 23% occupied at June 30. The $4.78 of second-quarter GAAP earnings per share is a $71.9 million asset-sale gain, not recurring income — for a REIT, the House reads FFO and FAD, never the GAAP headline. Covered at the new rate, with a cut already on the record.
Key risk: Seniors-housing lease-up and tenant credit — the new SHOP communities (The Landing 93% occupied, The Riviera 23% at June 30) have to lease up to stabilized yields, tenant White Rock Medical Center is in Chapter 11 (it intends to affirm its lease and was current on rent through August 4, but that is not assured), and a growing preferred stack ($100 million of 6% Series C convertible preferred issued in the quarter) is paid before common shareholders.
Changes if: Core FFO or FAD falls toward the $0.48 quarterly run-rate, SHOP lease-up stalls, leverage rises past ~6.1×, or the preferred stack grows again ahead of the common dividend. Any of those turns a covered new rate into a second cut question.
- ✓AFFO coverage check: The new $0.48 quarterly run-rate is about 59% of second-quarter FAD of ~$0.81 a share ($11.7 million over 14.5 million shares and units) and about 46% of core FFO of $1.04 a share — covered with a real cushion at the cut rate.
- !Growth check: Core FFO fell to $1.04 a share from $1.14 a year earlier, FAD fell to $11.7 million from $14.1 million, and the monthly dividend was cut about 36%, from $0.25 to $0.16, for July–September 2026. The portfolio is being repositioned, but per-share cash flow is going the wrong way for now.
- !Leverage check: Debt of $633.1 million is about 6.1× annualized second-quarter adjusted EBITDAre of $104.5 million (39.9% of gross assets) — heavy for a REIT in transition, mitigated by no debt maturities in 2026 or 2027 and $245.5 million of revolver capacity at August 4.
What this grade doesn't say: It screens the dividend only — covered, real, compounding. It says nothing about valuation or price: a well-covered payer can still be overpriced, and its price can still fall.