GlobeNewswire Inc | Nov 19, 2020 01:55PM EST

November 19, 2020

Niwot, Colorado., Nov. 19, 2020 (GLOBE NEWSWIRE) -- Global Healthcare REIT, Inc. (OTC: GBCS) ("Global" or the "Company") announced financial results for the second quarter endedJune30, 2020.

SECOND QUARTER 2020 HIGHLIGHTS

-- Record revenue for the second quarter of $5,130,465 (2019 $1,614,424) a growth rate of 217% year-over -year and up 33% from the previous quarter; -- Net Income of $1,120,696 for the second quarter (2019 a loss of $170,124); -- Earnings Per Share for the second quarter of $.04 per share basic and diluted; -- Net increase in Cash of $2,276,638 to a cash balance of $3,269,151 including restricted cash for the second quarter; -- Realized first full quarter of operations at our 86 bed Quapaw Higher Call Nursing Center acquisition that the Company paid $1.3 Million and acquisition costs of $13,267; -- The Quapaw Higher Call Nursing facility is performing well ahead of projections; -- Purchased $402,000 of 13% mezzanine debt notes owed by Goodwill Hunting, LLC.

Lance Baller, Global's President and CEO, said, "During the second quarter, we built upon our prior successful efforts to effectively navigate through the pandemic with operational improvements. It is an instance where being smaller and more agile allowed our staff to serve our residents in new and innovative ways. The Company continues to move to a hybrid model of operated and leased properties to minimize downside risk. Our operated facilities performed well in the quarter, well ahead of the national averages. As the Company moves forward with its recently enhanced business model, the results have been effective. We look forward to our rebranded Oklahoma City facility reopening after extensive renovations late in the first quarter of 2021 to further enhance our success. This facility will have a niche highly skilled nursing segment for that community while still offering our standard skilled nursing services. Also, the Company will be implementing the necessary steps to rebrand the Company with a corporate name that aligns it better with its current business model. The Company has chosen Selectis Health, Inc. and will seek the necessary majority shareholder approval to complete this change. The Company has been working on strengthening its management for more timely financial reporting and more efficient operations which will support our growth. We will also shortly begin rolling out our rebranding effort with the launch of a new corporate website under the web address www.selectis.com. This rollout will also entail the completion of individual websites and digital marketing tools for each of our facilities.

SUMMARY OF SECOND QUARTER RESULTS

GLOBAL HEALTHCARE REIT, INC.CONSOLIDATED BALANCE SHEETS

June 30, 2020 December 31, 2019 (Unaudited) ASSETS Property and Equipment, Net $ 37,140,599 $ 36,394,587 Cash and Cash Equivalents 2,844,515 641,215 Restricted Cash 424,636 351,298 Accounts Receivable, Net 1,562,911 1,188,100 Investments in Debt Securities 24,387 24,387 Intangible Assets - 15,258 Goodwill 379,479 379,479 Prepaid Expenses and Other 674,404 883,839 Total Assets $ 43,050,931 $ 39,878,163 LIABILITIES AND EQUITY Liabilities Debt, Net of discount of $450,111 and $ 39,113,315 $ 36,954,184 $493,353, respectivelyDebt ? Related Parties, Net of discount of 1,119,808 1,025,000 $5,192 and $0, respectivelyAccounts Payable and Accrued Liabilities 1,011,543 1,241,573 Accounts Payable ? Related Parties - 32,156 Dividends Payable 7,500 7,500 Lease Security Deposit 252,600 251,100 Total Liabilities 41,504,766 39,511,513 Commitments and Contingencies Equity Stockholders? Equity Preferred Stock: Series A - No Dividends, $2.00 StatedValue, Non-Voting; 2,000,000 Shares 401,000 401,000 Authorized, 200,500 Shares Issued andOutstandingSeries D - 8% Cumulative, Convertible,$1.00 Stated Value, Non-Voting; 1,000,000 375,000 375,000 Shares Authorized, 375,000 Shares Issuedand OutstandingCommon Stock - $0.05 Par Value; 50,000,000Shares Authorized, 27,414,525 and27,441,040 Shares Issued and Outstanding at 1,370,726 1,372,052 June 30, 2020 and December 31, 2019,respectivelyAdditional Paid-In Capital 10,397,755 10,385,417 Accumulated Deficit (10,792,565 ) (11,962,220 )Total Global Healthcare REIT, Inc. 1,751,916 571,249 Stockholders? EquityNoncontrolling Interests (205,751 ) (204,599 )Total Equity 1,546,165 366,650 Total Liabilities and Equity $ 43,050,931 $ 39,878,163

GLOBAL HEALTHCARE REIT, INC.CONSOLIDATED STATEMENTS OF OPERATIONS(UNAUDITED)

Six Months Ended Three Months Ended June 30, June 30, 2020 2019 2020 2019 Revenue Rental Revenue $ 1,144,605 $ 1,825,575 $ 623,593 $ 930,287 Healthcare 7,837,461 1,063,928 4,506,872 684,137 RevenueTotal Revenue 8,982,066 2,889,503 5,130,465 1,614,424 Expenses General and 715,770 570,836 372,707 377,357 AdministrativePropertyTaxes,Insurance and 4,985,975 893,019 2,654,231 543,831 OtherOperatingProvision for 263,890 - 57,282 - Bad DebtsAcquisition 28,654 - 13,763 - CostsDepreciation 768,103 645,851 380,885 322,926 Total Expenses 6,762,392 2,109,706 3,478,868 1,244,114 Income from 2,219,674 779,797 1,651,597 370,310 OperationsOther (Income) ExpenseGain onWarrant - (2,758 ) - (2,655 )LiabilityGain onExtinguishment (80,400 ) - (80,400 ) - of DebtGain on Sale - (1,069 ) - - of InvestmentsGain onProceeds from - (270,264 ) - - InsuranceClaimInterest - (7,003 ) - (1,536 )IncomeInterest 1,116,571 1,070,860 611,301 544,625 ExpenseTotal Other(Income) 1,036,171 789,766 530,901 540,434 ExpenseNet Income 1,183,503 (9,969 ) 1,120,696 (170,124 )(Loss)Net LossAttributableto 1,152 6,010 2,859 1,869 NoncontrollingInterestsNet Income(Loss)Attributable 1,184,655 (3,959 ) 1,123,555 (168,255 )to GlobalHealthcareREIT, Inc.Series DPreferred (15,000 ) (15,000 ) (7,500 ) (7,500 )DividendsNet Income(Loss)Attributable $ 1,169,655 $ (18,959 ) $ 1,116,055 $ (175,755 )to CommonStockholdersPer Share Data:Net Income(Loss) perShare Attributableto CommonStockholders:Basic $ 0.04 $ (0.00 ) $ 0.04 $ (0.01 )Diluted $ 0.04 $ (0.00 ) $ 0.04 $ (0.01 )WeightedAverage Common SharesOutstanding:Basic 27,427,928 27,122,607 27,414,816 27,347,134 Diluted 27,810,428 27,122,607 27,797,316 27,347,134

For Further Information Contact:

Jacob Taylorjtaylor@gbcsreit.com