Wunderlich Sees Global Medical REIT's Niche Focus Providing Superior Returns


27% profit every 20 days?

This is what Nic Chahine averages with his option buys. Not selling covered calls or spreads… BUYING options. Most traders don’t even have a winning percentage of 27% buying options. He has an 83% win rate. Here’s how he does it.


Given its steady pipeline of accretive acquisition opportunities ahead, Wunderlich’s Craig Kucera believes Global Medical REIT Inc (NYSE: GMRE) “should be able to drive earnings growth while garnering multiple expansion as the company increases its market capitalization.”

Kucera initiated coverage of the company with a Buy rating and price target of $11.75.

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Serving An Underserved Space

The analyst explained that Global Medical REIT offered financial services for medical practitioners, seeking out only high acuity licensed medical facilities, which are an underserved niche in the public healthcare REIT space.

“As such, competition is more limited and management can enter into sale-leaseback transactions where they are able to craft leases with more attractive terms and better pricing,” Kucera stated.

Kucera also believes management has built relationships that allow the company to consistently source a meaningful number of off-market, acute care acquisitions that are accretive to Global Medical REIT’s cost of capital.

This in turn helps drive earnings growth, while the company is expected to see multiple expansion as it increases its market capitalization.

Superior Returns

The analyst also pointed out that the acute care niche offers the company superior risk-adjusted returns.

“The initial portfolio GMRE contributed to the REIT has rent coverage in excess of 7x and operator distributions are subordinate to payment of rent,” Kucera noted.

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27% profit every 20 days?

This is what Nic Chahine averages with his option buys. Not selling covered calls or spreads… BUYING options. Most traders don’t even have a winning percentage of 27% buying options. He has an 83% win rate. Here’s how he does it.


Posted In: Analyst ColorLong IdeasREITHealth CareInitiationAnalyst RatingsTrading IdeasGeneralReal EstateCraig KuceraWunderlich