Chiron Real Estate Inc. · NYSE:XRN
Chiron Real Estate — Global Medical REIT — Investor Presentation (November 2022)
22 slides from Chiron Real Estate's investor presentation, Nov 14, 2022
Slide 1: Nimble. Tenacious. Disciplined. Investor Presentation November 2022
NIMBLE. TENACIOUS. DISCIPLINED. Investor Presentation November 2022
Slide 2: Our goal is to deliver attractive, risk-adjusted returns in healthcare assets
Our goal is to deliver attractive, risk - adjusted returns by investing in quality healthcare assets. As a primarily net - leased medical office real estate investment trust (REIT), we target properties operated by profitable healthcare systems or physician groups that are at the forefront of delive
Slide 3: CEO quote on strategic growth plans
3 “We continue to execute our strategic growth plans, operate through the uncertainty created by global instability, and source accretive opportunities to grow our portfolio even in a challenging acquisition environment.“ Jeffrey Busch Chairman, Chief Executive Officer and President Mission Health –
Slide 4: Company Highlights
COMPANY HIGHLIGHTS 4 • Focused growth strategy with proven results; acquired $1.5 billion since IPO, with $189 million during 2021, $149 million year to date • Strategically curated, high - quality portfolio with excellent diversification across tenant/operators and markets. As of September 30, 2022
Slide 5: A Strategy That Delivers Value
5 A STRATEGY THAT DELIVERS VALUE $1.5B Investments in Real Estate Gross $.6B Market Cap* 7.7% Weighted Average Cap Rate 8.7% Dividend Yield* *Based on closing price of the Company’s common stock of $9.59 on November 11, 2022 Atrium Health – Winston - Salem, NC
Slide 6: High Performing Real Estate at the Forefront of Healthcare
HIGH PERFORMING REAL ESTATE AT THE FOREFRONT OF HEALTHCARE 6 4.7X RENT COVERAGE 2.1% WEIGHTED AVERAGE RENT ESCALATIONS 6.4 WEIGHTED AVERAGE LEASE TERM 189 BUILDINGS 269 TENANTS 97% OCCUPANCY 4.9M Net Leasable Area (SF) Percentage of annualized base rent as of September 30, 2022. MOB 68% IRF 17% Othe
Slide 7: Investing in the Future of Healthcare
7 INVESTING IN THE FUTURE OF HEALTHCARE City Hospital at White Rock – Dallas, TX Encompass – Mesa, AZ Southlake Heart & Vascular Institute – Clermont, FL Mission Health – Livonia, MI
Slide 8: CIO quote on finding value in overlooked markets
8 “We dig deeper to find value in properties and markets that other investors overlook. Our unique strategy is bolstered by favorable demographic trends and the shift in healthcare delivery to off - campus facilities in local markets.” Alfonzo Leon Chief Investment Officer Steward Surgical Hospital
Slide 9: A Distinct Approach
A DISTINCT APPROACH 9 • Longer - term leases • Annual rent escalations • Bedroom communities • Secondary markets with favorable demand drivers • Positioned to benefit from decentralization trends • Uncover high retention/patient - centric acquisition opportunities • Sustainable cash flows • Attracti
Slide 10: Investing in the Future of Healthcare: aging in place
INVESTING IN THE FUTURE OF HEALTHCARE 10 90 % of Americans age 50 and older want to age in place. 1 65 % of seniors between the ages of 60 and 70 find it “very easy” to live independently. 2 As American’s choose to age in place, demand for conveniently located healthcare will continue to increase. 1
Slide 11: A Long Runway for Accretive Growth
A LONG RUNWAY FOR ACCRETIVE GROWTH 11 $20B Medical Office and Inpatient Real Estate Transactions Annually $2B in Targeted Markets, Property Types and Cap Rate Range $800M Investigated/Reviewed ~$ 150M in Completed Deals in 2022 Our pipeline is full of opportunity, but it’s our distinct strategy and
Slide 12: $1.5B and Continuing to Grow
$1.5B AND CONTINUING TO GROW $94 $207 $472 $648 $906 $1,143 $1,343 $1,482 $0 $200 $400 $600 $800 $1,000 $1,200 $1,400 $1,600 At IPO 2016 2017 2018 2019 2020 2021 2022-to date 56% CAGR Since IPO Gross Real Estate Assets in Millions 12 As of September 30, 2022.
Slide 13: COO quote on enduring relationships
13 “We don’t look at investing in real estate as a single activity to be completed but as the first step in building an enduring relationship.” Danica Holley Chief Operating Officer NOMS – Sandusky, OH
Slide 14: Profitable, Strong Healthcare Tenants
14 DOMINANT LOCAL PHYSICIAN GROUPS FOR - PROFIT SYSTEMS AFFILIATIONS AND SURGICAL OPERATOR PARTNERSHIPS PROFITABLE, STRONG HEALTHCARE TENANTS NOT - FOR - PROFIT HEALTH SYSTEMS AFFILIATIONS
Slide 15: Tenant testimonial from former Gastro One CEO
“With an attentive, flexible and creative approach, Global Medical REIT worked with us to structure a transaction that met our goals and helped propel our growth. GMRE has been a helpful partner and resource since our closing.” David Harano former CEO, Gastro One 15
Slide 16: CFO quote on strengthening the balance sheet
“We continue to strengthen our balance sheet and improve our credit metrics to build a strong foundation for our future growth.” Robert Kiernan Chief Financial Officer and Treasurer 16 Legent Hospital for Special Surgery – Plano, TX
Slide 17: Predominately Fixed-Rate Debt Profile and Access to Multiple Capital Sources
PREDOMINATELY FIXED - RATE DEBT PROFILE AND ACCESS TO MULTIPLE CAPITAL SOURCES 17 Liquidity Profile* Capital Source Availability Unutilized Revolver Capacity $250 million Unutilized Common Equity ATM Capacity $298 million Fixed - to - Floating Rate Debt (1) Fixed - Rate: 79% Floating – Rate: 21% Rev
Slide 18: Institutional Knowledge, Hands-On Approach
INSTITUTIONAL KNOWLEDGE, HANDS - ON APPROACH Jeffrey Busch — Chairman, Chief Executive Officer and President 20+ years of experience in healthcare, real estate development, management and investment Robert Kiernan — Chief Financial Officer and Treasurer 30+ years of experience in financial accountin
Slide 19: Highly Skilled and Diverse Board
HIGHLY SKILLED AND DIVERSE BOARD Jeffrey Busch — Chairman, Chief Executive Officer and President 20+ years of experience in healthcare, real estate development, management and investment. Matthew Cypher, PH.D — ESG Committee Chair, Nominating and Governance Committee Member Professor at Georgetown U
Slide 20: Committed to Corporate Responsibility
• Continuing to collect tenant data for energy consumption, carbon emissions and efficiency • Board of Directors formed an ESG Committee for oversight of corporate sustainability issues • Completed 3 rd GRESB submission • Completed an Employee Engagement Survey to capture information on employee eng
Slide 21: Forward Looking Statement
FORWARD LOOKING STATEMENT Certain statements contained herein may be considered “forward - looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995, and it is the Company’s intent that any such statements be protected by the safe harbor create d thereby. These f
Slide 22: Disclosures
DISCLOSURES Rent Coverage Ratio For purposes of calculating our portfolio weighted - average EBITDARM coverage ratio (“Rent Coverage Ratio”), we excluded credit - rated tenants or their subsidiaries for which financial statements were either not available or not sufficiently detailed. Th ese ratios
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