Chiron Real Estate Inc. · NYSE:XRN
Chiron Real Estate — Global Medical REIT — Investor Presentation (March 2018)
30 slides from Chiron Real Estate's investor presentation, Mar 7, 2018
Slide 1: Investor Presentation March 2018
Investor Presentation March 2018
Slide 2: Disclaimer
Disclaimer This presentation is for informational purposes only and does not constitute an offer to sell, or a solicitation of offers to pu rchase, Global Medical REIT Inc.’s (the “Company”, or “GMRE”) securities. The information contained in this presentation does not purport t o b e complete and s
Slide 3: Company Highlights
Company Highlights • Leverage long - term demographic tailwinds by focusing on the increasing specialization and localization of healthcare delivery • Own facilities providing mission critical services with strong physician operators • Build a diversified, institutionally liquid portfolio with attra
Slide 4: Key Portfolio Statistics and Key Stock Statistics
Key Portfolio Statistics* 62 Facilities leased to 47 tenants 1.7M SF of Healthcare RE $520M gross investment Weighted average acquisitions cap rate of 7.7% 11 years average lease term 10 years average portfolio age * As of 3/2/18 Company Highlights 3 Key Stock Statistics* $144M Market
Slide 5: Continued Momentum on the GMRE Platform
Continued Momentum on the GMRE Platform Our strides this past year position us well to mark the second anniversary of our initial public offering from a position of strength and accelerating momentum Completed C - suite leadership transition Completed common and preferred equity offerings Succ
Slide 6: Strategy Leverages Key Dynamics in Healthcare Today
Strategy Leverages Key Dynamics in Healthcare Today Healthcare Industry’s “Path of Growth” Favors Localization and Specialization Strong Providers in our Markets Require Real Estate Solutions The biggest risks to healthcare real estate are driven by operator quality Pricing for “One - off” Acquisiti
Slide 7: GMR Austin, Austin, Texas
© cLopaL | MEDICAL REIT GMR Austin Austin, Texas
Slide 8: Increasing Demand for Localized Delivery
Increasing Demand for Localized Delivery 0% 20% 40% 60% 80% 100% 1994 1996 1998 2000 2002 2004 2006 2008 2010 2012 2014 Outpatient Surgeries Inpatient Surgeries An Aging Population… (1) The U.S. 65+ age group is growing faster than the country’s population – ~10,000 Baby Boomers turn 65 every day
Slide 9: Shifting Demographics and Consumer Preferences Spur Healthcare Industry Growth
Shifting Demographics and Consumer Preferences Spur Healthcare Industry Growth Positions us to Benefit From Overall Industry Tailwinds Projected Aging of US Population 65+ age group expected to double between 2015 and 2060 85+ age group expected to triple between 2015 and 2060 Use of healthcar
Slide 10: Our Space is a Historically Recession-Resistant Asset Class
- 10.6% 65.3% - 51.6% 37.4% - 29.4% 117.3% (75.0%) (50.0%) (25.0%) 0.0% 25.0% 50.0% 75.0% 100.0% 125.0% 150.0% Great Recession SNL U.S. REIT Healthcare RMZ S&P 500 Our Space is a Historically Recession - Resistant Asset Class _____________________ Source: SNL Financial as of 1/3/18. SNL U.S. REIT He
Slide 11: GMR Flower Mound, Flower Mound, Texas
GMR Flower Mound Flower Mound, Texas 10
Slide 12: Disciplined Yet Opportunistic Acquisition Criteria
Disciplined Yet Opportunistic Acquisition Criteria x Strong providers with leading market share x Rent guarantees and other credit protection x Specialization in age - related procedures x Operators with regional footprints x Strong and diversified payor mix and history x Institutional quality x Pur
Slide 13: Portfolio Locations
Portfolio Locations _____________________ Data as of March 2, 2018. 12
Slide 14: High Quality Portfolio
High Quality Portfolio Newer buildings, strong tenants and long - term leases Weighted Average Lease Term (Years) (1) Average Asset Age (Years) _____________________ Source: Company Filings as of 9/30/2017 and 12/31/2017; GMRE data as of 3/2/18 (1) Weighted Average Lease Term calculated from lease e
Slide 15: Portfolio Dashboard
Portfolio Dashboard Annualized Base Rent Composition 1 _____________________ As of 12/31/2017. (1) Monthly base rent for December 2017 multiplied by 12. (2) Our MOB category includes medical office buildings that also include imaging centers. (3) Includes one facility that is both an IRF and an LTAC
Slide 16: Annualized Rent Growth By Quarter
Annualized Rent Growth By Quarter $0 $5,000,000 $10,000,000 $15,000,000 $20,000,000 $25,000,000 $30,000,000 $35,000,000 $40,000,000 Pre-IPO Q3 2016 Q4 2016 Q1 2017 Q2 2017 Q3 2017 Q4 2017 Pre-IPO Annual Rent Escalation Q3 2016 Q4 2016 Q1 2017 Q2 2017 Q3 2017 Q4 2017 Most Recent Four Quarters: Averag
Slide 17: Case Study: Associates In Ophthalmology
Case Study: Associates In Ophthalmology Key Statistics State of the Art Facility Top Facilities and Creative Lease Locally Dominant Tenant The building contains state of are equipment used diagnosis and treatment of cataracts, glaucoma, diabetic eye care and macular degeneration The building is
Slide 18: Case Study: Encompass Health Portfolio
Case Study: Encompass Health Portfolio AZ (1) and PA (2) Key Statistics State of the Art Facility Serving Contemporary Trends Market Dominant Tenant Although each facility has a different overall layout, the buildings are purpose built to provide a complete compliment of care Sustainable Design
Slide 19: Leadership
Leadership JEFFREY BUSCH , Chairman, Chief Executive Officer and President ▪ Over 20 years of experience in healthcare, real estate development, management and investment ▪ Former assistant to the U.S. Secretary of Housing & Urban Development ▪ United States Special Representative to United Nations
Slide 20: Independent Directors
Independent Directors Majority independent Board with strong backgrounds in healthcare, real estate and capital markets Henry Cole ▪ President of Global Development International, providing development support and oversight for initiatives in medical and hea lth care programs (e.g. Instant Labs Medi
Slide 21: Interested Directors
Interested Directors Jeffrey Busch, Chairman ▪ Over 20 years of experience in healthcare, real estate development, management and investment ▪ Former assistant to the U.S. Secretary of Housing & Urban Development ▪ United States Special Representative to United Nations in Geneva ▪ Developed large -
Slide 22: Appendix
et cLosal Uy” MEDICAL REIT APPENDIX
Slide 23: Property Portfolio
Property Portfolio _____________________ Data as of March 2, 2018. (1) Monthly base rent for December 2017 multiplied by 12 for fourth quarter 2017 acquisitions and rent in month of acquisition mu lti plied by 12 for first quarter 2018 acquisitions . Accordingly, this methodology produces an annuali
Slide 24: Property Portfolio
Property Portfolio Property Location # of Buildings Facility Type Net Leasable Square Feet Lease Years Remaining Year Built/ Renovated Annualized Rent (1) Annualized Rent Per Square Foot (1) Tenant/Guarantor (2) Heartland Clinic Moline, IL 1 MOB/ASC 34,020 15.3 1994/2004 $891,601 $26.21 Heartland Cl
Slide 25: Property Portfolio
Property Portfolio Property Location # of Buildings Facility Type Net Leasable Square Feet Lease Years Remaining Year Built/ Renovated Annualized Rent (1) Annualized Rent Per Square Foot (1) Tenant/Guarantor (2) Thumb Butte Medical Center Prescott, AZ 1 MOB 12,000 9.0 2016 $370,800 $30.90 Thumb Butt
Slide 26: Property Portfolio
Property Portfolio _____________________ Data as of March 2, 2018. (1) Monthly base rent for December 2017 multiplied by 12 for fourth quarter 2017 acquisitions and rent in month of acquisition mu lti plied by 12 for first quarter 2018 acquisitions . Accordingly, this methodology produces an annuali
Slide 27: Consolidated Statements of Operations
Consolidated Statements of Operations (unaudited, in thousands, except per share amounts) 26 Three Months Ended Year Ended December 31, December 31, 2017 2016 2017 2016 Revenue Rental revenue $ 9,293 $ 3,085 $ 28,511 $ 8,080 Expense recoveries 571 - 1,712 - Other income 10 38 121 131 Total revenue 9
Slide 28: Consolidated Balance Sheets
Consolidated Balance Sheets (unaudited, in thousands) 27 As of December 31, 2017 2016 Assets Investment in real estate: Land $ 42,701 $ 17,786 Building 384,338 179,253 Site improvements 4,808 1,465 Tenant improvements 8,010 1,186 Acquired lease intangible assets 31,650 7,187 471,507 206,877 Less: ac
Slide 29: Consolidated Balance Sheets - Continued
Consolidated Balance Sheets - Continued (unaudited, in thousands, except par values) 28 As of December 31, 2017 2016 Liabilities and Stockholders’ Equity Liabilities: Revolving credit facility $ 164,900 $ 27,700 Notes payable, net of unamortized discount of $930 and $1,062 at December 31, 2017 and 2
Slide 30: Reconciliation of FFO, AFFO and Normalized AFFO
Reconciliation of FFO, AFFO and Normalized AFFO (unaudited, in thousands, except per share amounts) 29 Three Months Ended Year Ended December 31, December 31, 2017 2016 2017 2016 Net income (loss) $ 1,249 $ (1,930) $ (87) $ (6,353) Less: Preferred stock dividends (1,456) - (1,714) - Depreciation and
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