Chiron Real Estate Inc. · NYSE:XRN
Chiron Real Estate — Global Medical REIT — Investor Presentation (August 2016)
23 slides from Chiron Real Estate's investor presentation, Aug 3, 2016
Slide 1: Capital Partners to Health Care Providers
www.globalmedicalreit.com Capital Partners to Health Care Providers INVESTOR PRESENTATION AUGST 2016
Slide 2: Disclaimer
www.globalmedicalreit.com DISCLAIMER 2 This presentation is for informational purposes only and does not constitute an offer to sell, or a solicitation of offers to purchase, the Company’s securities . The information contained in this presentation does not purport to be complete and should not be r
Slide 3: At a Glance
www.globalmedicalreit.com AT A GLANCE ▪ Well capitalized to execute on pipeline with approximately $56 million of cash available following recent IPO ▪ Efficient balance of mortgage debt and anticipated credit facility SHARE INFORMATION * 19 BALANCE SHEET HIGHLIGHTS • GMRE (NYSE): $10.87 • Market Ca
Slide 4: Leadership
www.globalmedicalreit.com LEADERSHIP 4 ▪ Over 25 years of experience in medical and hospital real estate ▪ Vice President – Acquisitions at Windrose Medical Properties Trust (NYSE: WRS), which was acquired by Welltower (NYSE: HCN) ▪ Executive responsible for business development for Healthcare Prope
Slide 5: Company Overview
www.globalmedicalreit.com COMPANY OVERVIEW 5 Dynamic healthcare REIT focused on the acquisition and leasing of state - of - the - art, purpose built healthcare facilities Focus on state - of - the - art, licensed medical facilities that through their technology and design enhance the quality of care
Slide 6: Strategy to Outperform
www.globalmedicalreit.com STRATEGY TO OUTPERFORM 6 Creating attractive returns by leveraging management expertise and differentiated investment strategy Attractive Acquisition Dynamics Outsized Current Returns Capital Appreciation Less competitive market segment Deal sourcing through relationships O
Slide 7: Attractive Industry Tailwinds: Insured Growth and Spending
www.globalmedicalreit.com ATTRACTIVE INDUSTRY TAILWINDS 7 RAPID INCREASE IN NUMBER OF INSURED STEADY INCREASE IN SPENDING ▪ Affordable Care Act of 2010 insuring more Americans ▪ Expected to insure 35 million new Americans by 2020 ▪ Incentivizes the integration of care among multiple providers in a s
Slide 8: Attractive Industry Tailwinds: Aging Population and Consumer Preferences
www.globalmedicalreit.com ATTRACTIVE INDUSTRY TAILWINDS 8 PROJECTED AGING OF US POPULATION CHANGING CONSUMER PREFERENCES ARE A MAJOR FACTOR IN GMR’S ASSET SELECTION 15% 17% 19% 21% 21% 22% 22% 22% 23% 24% 0% 5% 10% 15% 20% 25% 30% 0 20 40 60 80 100 120 2015 2020 2025 2030 2035 2040 2045 2050 2055 20
Slide 9: Evidence-Based Design
www.globalmedicalreit.com EVIDENCE - BASED DESIGN 9 As EBD research becomes more widely recognized and reproduced, facilities with these features expect to outperform STATE - OF - THE - ART MEDICAL TECHNOLOGY ADVANCED BUILDING ENGINEERING EFFICIENT TREATMENT AND PROCESSING DESIGN AMENITIZED PATIENT
Slide 10: GMR Investment Criteria
www.globalmedicalreit.com GMR INVESTMENT CRITERIA HIGH - QUALITY FACILITIES x State - of - the - art technology and design x Facilities recently built or renovated x Facilities core to provider business model x Functionality, reusability, conversion value FOCUS ON TENANT OPERATIONS x Excellent medic
Slide 11: Off-Market Deal Sourcing
www.globalmedicalreit.com OFF - MARKET DEAL SOURCING GMR executives have robust relationships with healthcare providers, allowing for direct negotiation and generation of new long term leases without broker intermediaries 11 RELATIONSHIP – BASED REAL ESTATE SOLUTIONS PHYSICIAN GROUPS HOSPITAL CHAINS
Slide 12: Market Dominant Tenants
www.globalmedicalreit.com MARKET DOMINANT TENANTS ESTABLISHED PROVIDER CLINICAL EXPERTISE STRONG CREDIT 12 What we seek to acquire: ▪ Demonstrated clinical leaders ▪ Going concern history ▪ High market share ▪ Stable and competent management ▪ Robust and durable payor contracts Competitive advantage
Slide 13: Lease Terms and Credit Enhancements
www.globalmedicalreit.com Target annual base rent of 7% - 9% of projected total investment cost Typically 2% - 3% annual rent escalations ▪ Attractive and sustainable base return for REIT and shareholders ▪ Built - in inflation protection Absolute NNN lease, 10 - 20 year initial lease terms ▪ No ope
Slide 14: Initial Portfolio
www.globalmedicalreit.com INITIAL PORTFOLIO * 14 Property City State Type Square Feet Occupancy Year Built / Renov. Lease Yrs Remaining EBITDARM/ Rent 1 Omaha Facility Omaha NE LTACH 41,113 100% 2008 7 1.8x Gastro One Facilities (6) Memphis TN Treatment 52,266 100% 1984 - 2011 12 10.5x Plano Facilit
Slide 15: Portfolio Metrics
www.globalmedicalreit.com PORTFOLIO METRICS AVERAGE ASSET AGE LEASE MATURITY – SQ. FT. EXPIRING PREMIUM PORTFOLIO FUNDAMENTALS Portfolio metrics reflecting newer buildings, dominant tenants and long term leases 10 17 20 20 21 21 21 21 22 22 22 25 26 28 32 38 39 N/A 0 10 20 30 40 GMR CTRE DOC UHT HCP
Slide 16: Gastro One, Memphis, TN
www.globalmedicalreit.com GASTRO ONE MEMPHIS, TN KEY STATISTICS SIX BUILDING PORTFOLIO TOP FACILITIES AND CREATIVE LEASE LOCALLY DOMINANT TENANT ▪ Fully operational ambulatory centers that have all scored 100% on their periodic survey inspections by the AAAHC ▪ Highly desirable office park locations
Slide 17: Select Medical Specialty Hospital, Omaha, NE
www.globalmedicalreit.com ▪ Only LTACH in Omaha, NE, receives critical care discharged patients from every area hospital ▪ Attached to the largest, most prominent regional medical center, Bergan Mercy Hospital ▪ Federal government recently imparted a moratorium on constructing LTACH facilities in Om
Slide 18: Pipeline Overview
www.globalmedicalreit.com Medical Office Building PIPELINE OVERVIEW MOVING TO DEPLOY CAPITAL ▪ Multiple facilities identified under contract or letter of intent ▪ Wyomissing, PA: Eye surgery center and office building ▪ $9.2 million purchase closed July 22, 2016 following GMR’s recent IPO. ▪ $480+ m
Slide 19: Investment Highlights
www.globalmedicalreit.com INVESTMENT HIGHLIGHTS Management Team with Public REIT Experience State - of - the - Art Healthcare Facilities Attractive Industry Tailwinds Market Dominant Tenants High Quality Initial Portfolio Substantial Pipeline of High Quality Assets 20
Slide 20: Appendix
www.globalmedicalreit.com APPENDIX 21
Slide 21: Externally Managed by Inter-American
www.globalmedicalreit.com EXTERNALLY MANAGED BY INTER - AMERICAN 21 Background and Strong Alignment of Interests Advisory Agreement Management Fees Path to Internalization ▪ Our advisor is 85% owned by ZH International Holdings, Ltd., a Hong Kong listed real estate company ▪ ZH International is enga
Slide 22: Independent Directors
www.globalmedicalreit.com INDEPENDENT DIRECTORS 23 ▪ President of Global Development International, providing development support and oversight for initiatives in medical and hea lth care programs (e.g. Instant Labs Medical Diagnostics, MedPharm & MPRC Group) ▪ Former President and Founder of intern
Slide 23: Interested Directors
www.globalmedicalreit.com INTERESTED DIRECTORS 24 ▪ 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 lar
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