Chiron Real Estate Inc. · NYSE:XRN
Chiron Real Estate — Global Medical REIT — Investor Presentation (June 2022)
22 slides from Chiron Real Estate's investor presentation, Jun 6, 2022
Slide 1: Nimble. Tenacious. Disciplined. Investor Presentation June 2022
NIMBLE. TENACIOUS. DISCIPLINED. Investor Presentation June 2022
Slide 2: Our goal is to deliver attractive, risk-adjusted returns by investing in quality 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 executing 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
Slide 4: Company Highlights
COMPANY HIGHLIGHTS 4 • Focused growth strategy with proven results; acquired over $1.4 billion since IPO, with $189 million during 2021, $98 million year to date and $44 million under contract* • Strategically curated, high - quality portfolio with excellent diversification across tenant/operators a
Slide 5: A Strategy That Delivers Value
5 A STRATEGY THAT DELIVERS VALUE $1.4B Investments in Real Estate Gross $0.9B Market Cap* 7.8% Weighted Average Cap Rate 6.5% Dividend Yield* *Based on closing price of the Company’s common stock as of $12.79 on June 3, 2022
Slide 6: High Performing Real Estate at the Forefront of Healthcare
HIGH PERFORMING REAL ESTATE AT THE FOREFRONT OF HEALTHCARE 6 5.0X RENT COVERAGE 2.0% WEIGHTED AVERAGE RENT ESCALATIONS 6.9 WEIGHTED AVERAGE LEASE TERM 171 BUILDINGS 201 TENANTS 97% OCCUPANCY 4.4M Net Leasable Area (SF) Percentage of annualized base rent as of March 31, 2022. MOB 44.1% MOB/ASC 16.9%
Slide 7: Investing in the Future of Healthcare
7 INVESTING IN THE FUTURE OF HEALTHCARE
Slide 8: We dig deeper to find value in properties and markets other investors overlook
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
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 mispriced acquisition opportunities • Sustainable cash flows • Attractive lease coverage ratio
Slide 10: Investing in the Future of Healthcare
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 In - Patient Real Estate Transactions Annually $2B in Targeted Markets, Property Types and Cap Rate Range $800M Investigated/Reviewed ~$ 200M in Completed Deals in 2021 Our pipeline is full of opportunity, but it’s our distinct strategy a
Slide 12: $1.4B and Continuing to Grow
$1.4B AND CONTINUING TO GROW $94 $207 $472 $648 $906 $1,143 $1,343 $1,368 $0 $200 $400 $600 $800 $1,000 $1,200 $1,400 $1,600 At IPO 2016 2017 2018 2019 2020 2021 2022 56% CAGR Since IPO Gross Real Estate Assets in Millions 12 As of March 31, 2022.
Slide 13: Building an enduring relationship (COO quote)
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
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 CEO of Gastro One
“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: Strengthening our balance sheet (CFO quote)
“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
Slide 17: Strong Capital Structure Providing Access to Multiple Capital Sources
STRONG CAPITAL STRUCTURE PROVIDING ACCESS TO MULTIPLE CAPITAL SOURCES As of March 31, 2022. 17 • 43.7% leverage ratio • Multiple sources of capital, including: OP Units, ATM, Preferred equity, secured and unsecured debt • $1.9 million cash on hand LIQUIDITY METRICS $- $200,000 $400,000 $600,000 $800
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 • Approaching our 3 rd GRESB submission • Completed an Employee Engagement Survey to capture information on employ
Slide 21: Forward Looking Statement
FORWARD LOOKING STATEMENT 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 pur por t to be
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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