Chiron Real Estate Inc. · NYSE:XRN
Chiron Real Estate — Global Medical REIT — Investor Presentation (June 2017)
23 slides from Chiron Real Estate's investor presentation, Jun 5, 2017
Slide 1: Investor Presentation May 2017
I NVESTOR PRESENTATION May 2017 Capital Partners to Health Care Providers
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 purchase, the Company’s securities. The information contained in this presentation does not purport to be complete and should not be relied upon as a basis for mak
Slide 3: At a Glance
AT A GLANCE STOCK INFORMATION * GMRE (NYSE) STOCK PRICE: $9.29 Market Capitalization: $164 million Common shares outstanding: 17.6 million KEY BUSINESS POINTS Healthcare REIT focused on the acquisition and leasing of state-of-the-art, purpose built healthcare facilities Substantial pipeline of high
Slide 4: Leadership
LEADERSHIP Key team members average over 20 years healthcare and real estate experience JEFFREY BUSCH , Chairman 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 St
Slide 5: Company Overview
COMPANY OVERVIEW 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 Facilities built or adapted to contemporary bes
Slide 6: Strategy to Outperform
STRATEGY TO OUTPERFORM 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 Origination of new, custom le
Slide 7: Attractive Industry Trends
ATTRACTIVE INDUSTRY TRENDS Demographic shifts and changing consumer preferences spurring healthcare industry growth PROJECTED AGING OF US POPULATION 120 30% 24% 25% Older ▪ People 100 19% 21% 21% 22% 22% 22% 23% ▪ 80 17% 20% and 15% ▪ 65 of 60 15% Millions Percentage 40 10% ▪ 20 5% 0 2050 0% 2015 20
Slide 8: Evidence-Based Design
EVIDENCE-BASED DESIGN As EBD research becomes more widely recognized and reproduced, facilities with these features expect to outperform EBD research demonstrates an interrelatedness between the design of a healthcare facility and patient outcomes Certain design elements have an important impact on
Slide 9: GMR Investment Criteria
GMR INVESTMENT CRITERIA FOCUS ON TENANT OPERATIONS Excellent medical practice groups with sustainable practices Single, long-term tenants = no vacancy rate Existing, long-standing provider Strong and diversified payor mix STRATEGIC LOCATIONS Position to take advantage of decentralization trends Iden
Slide 10: Off-Market Deal Sourcing
OFF-MARKET DEAL SOURCING In addition to brokerage relationships, GMR executives have robust relationships with healthcare providers, allowing for direct negotiation and generation of new long term leases without broker intermediaries RELATIONSHIP–BASED REAL ESTATE SOLUTIONS OUTPATIENT PHYSICIAN HOSP
Slide 11: Market Dominant Tenants
MARKET DOMINANT TENANTS ESTABLISHED PROVIDER CLINICAL EXPERTISE STRONG CREDIT What we seek to acquire: What we seek to acquire: What we seek to acquire: ▪ Demonstrated clinical leaders ▪ Prominent local physicians ▪ Strong EBITDARM / rent coverage ▪ Going concern history ▪ Board credentials ▪ Guaran
Slide 12: Proprietary Deal Structures
PROPRIETARY DEAL STRUCTURES When possible, GMR originates new leases as opposed to assuming in place leases, which creates value 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 shareholder
Slide 13: Property Portfolio as of May 1, 2017
PROPERTY PORTFOLIO AS OF MAY 1, 2017 Leasable Lease Years Property City State Type Square Feet Leased Space Remaining HealthSouth (3) Mesa/Altoona/Mechanicsburg AZ/PA Rehab Hospitals 200,746 100% 6 Brown Clinic (3) Watertown SD Primary Care 46,884 100% 15 Carson City (2) Carson City NV Primary + 20,
Slide 14: Property Portfolio Map as of May 1, 2017
PROPERTY PORTFOLIO MAP AS OF MAY 1, 201714 www.globalmedicalreit.com
Slide 15: Portfolio Metrics
PORTFOLIO METRICS Portfolio metrics reflecting newer buildings, dominant tenants and long term leases AVERAGE ASSET AGE LEASE MATURITY – SQ. FT. EXPIRING 40 37 100% 31 30 20 21 21 22 22 23 23 24 24 26 75.4% 19 19 75% 20 12 50% 10 0 25% 16.3% 8.3% 0 0.0% 0.0% 0.0% 0.0% 0% 2018 2019 202020212022 2023+
Slide 16: Associates in Opthalmology, West Mifflin, PA
ASSOCIATES IN OPTHALMOLOGY WEST MIFFLIN, PA KEY STATISTICS STATE OF THE ART FACILITY Asset Type Surgery Center and Medical Office Building Gross Leasable Area 27,193 Average Age 9 years EBITDARM / Rent 7x at lease inception Leased Occupancy 100% Lease Expiration 9/25/2030 Transaction Value $20.0 mil
Slide 17: HealthSouth Portfolio
HEALTHSOUTH PORTFOLIO ARIZONA (1) AND PENNSYLVANIA (2) KEY STATISTICS Asset Type Inpatient Rehab Hospitals Gross Leasable Area 200,746 square feet Asset Quality Class A-/B+ Assets EBITDARM/Rent 6x average at purchase Leased Occupancy 100% Lease Expiration 5/2021 (PA) & 11/2024 (AZ) Transaction Value
Slide 18: Pipeline Overview
PIPELINE OVERVIEW Addition of recently announced credit facility provides acquisition financing optionality STEADY PORTFOLIO GROWTH At May 1, 2017 GMR’s portfolio exceeded $315 million with leasable square feet of approximately 946,000 Multiple facilities under executed contracts or letters of inten
Slide 19: Investment Highlights
INVESTMENT HIGHLIGHTS State-of-the-Art Healthcare Facilities Management Team with Public REIT Experience Attractive Industry Trends High Quality Initial Portfolio Market Dominant Tenants Substantial Pipeline of High Quality Assets 19 www.globalmedicalreit.com
Slide 20: Appendix
APPENDIX 20 www.globalmedicalreit.com
Slide 21: Externally Managed by Inter-American
EXTERNALLY MANAGED BY INTER-AMERICAN Reducing G&A during initial growth phase with a path to internalization 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 es
Slide 22: Independent Directors
INDEPENDENT DIRECTORS Majority independent Board with strong backgrounds in healthcare, real estate and capital markets HENRY COLE, Independent Director President of Global Development International, providing development support and oversight for initiatives in medical and healthcare programs (e.g.
Slide 23: 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-scale resi
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