Chiron Real Estate Inc. · NYSE:XRN
Chiron Real Estate — Global Medical REIT — Investor Presentation (May 2023)
21 slides from Chiron Real Estate's investor presentation, May 15, 2023
Slide 1: Nimble. Tenacious. Disciplined. Investor Presentation May 2023
NIMBLE. TENACIOUS. DISCIPLINED. Investor Presentation May 2023
Slide 2: Our goal is to deliver attractive, risk-adjusted returns 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 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 $149 million during 2022, $7 million year to date • Strategically curated, high - quality portfolio with excellent diversification across tenant/operators and markets. As of March 31, 2023, port
Slide 5: A Strategy That Delivers Value
5 A STRATEGY THAT DELIVERS VALUE $1.5B Investments in Real Estate Gross $0.6B Market Cap* 7.8% Weighted Average Cap Rate 9.5% Dividend Yield* *Based on closing price of the Company’s common stock of $8.87 on May 12, 2023 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 4.1X RENT COVERAGE 2.1% WEIGHTED AVERAGE RENT ESCALATIONS 6.0 WEIGHTED AVERAGE LEASE TERM 188 BUILDINGS 274 TENANTS 97% OCCUPANCY 4.9M Net Leasable Area (SF) (as of March 31, 2023) *Occupancy and asset type percentages are based on annuali
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: $1.5B and Continuing to Grow
$1.5B AND CONTINUING TO GROW $94 $207 $472 $648 $906 $1,143 $1,343 $1,484 $1,481 $0 $200 $400 $600 $800 $1,000 $1,200 $1,400 $1,600 At IPO 2016 2017 2018 2019 2020 2021 2022 2023* 41% CAGR Since IPO Gross Real Estate Assets in Millions 11 *As of March 31, 2023.
Slide 12: COO quote on enduring relationships
12 “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 13: Profitable, Strong Healthcare Tenants
13 DOMINANT LOCAL PHYSICIAN GROUPS FOR - PROFIT SYSTEMS AFFILIATIONS AND SURGICAL OPERATOR PARTNERSHIPS PROFITABLE, STRONG HEALTHCARE TENANTS NOT - FOR - PROFIT HEALTH SYSTEMS AFFILIATIONS
Slide 14: Tenant testimonial from 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 14
Slide 15: 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 15 Legent Hospital for Special Surgery – Plano, TX
Slide 16: 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 $252 million Unutilized Common Equity ATM Capacity $298 million Fixed - to - Floating Rate Debt (1) Fixed - Rate: 80% Floating – Rate: 20% Rev
Slide 17: 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 18: Highly Skilled and Diverse Board
HIGHLY SKILLED AND DIVERSE BOARD 18 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 Georgetow
Slide 19: Committed to Corporate Responsibility
• Working with tenants to improve energy consumption, carbon emissions and efficiency • Board of Directors formed an ESG Committee for oversight of corporate sustainability issues • Continue to improve Company’s GRESB score • Completed an Employee Engagement Survey to capture information on employee
Slide 20: 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 21: 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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