Chiron Real Estate Inc. · NYSE:XRN
Chiron Real Estate — Global Medical REIT — Investor Presentation (July 2018)
30 slides from Chiron Real Estate's investor presentation, Jul 2, 2018
Slide 1: Investor Presentation July 2018
Investor Presentation July 2018
Slide 2: Disclaimer
Disclaimer This presentation is for informational purposes only and does not constitute an offer and/or an invitation and/or a recommend ati on to sell, or a solicitation of offers to purchase, Global Medical REIT Inc.’s (the “Company”, or “GMRE”) securities. The information contained in this presen
Slide 3: Company Highlights: Key Company Statistics
Company Highlights 2 Key Company Statistics 3 □ Current Market Capitalization = $ 194M □ Common Stock Outstanding = 21.6M □ Financial Highlights 4 : ($ in thousands) □ Total Assets = $539,856 □ Debt = $267,727 5 □ Total Stockholders’ Equity = $254,743 □ Q1 Total Revenue = $11,564 □ Annualized Total
Slide 4: 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 5: Organizational Chart
Organizational Chart 4 Jeffrey Busch Chairman & CEO Bob Kiernan CFO SVP SEC Compliance & Technical Accounting Controller Accounting Manager Senior Staff Accountant Senior Accountant Staff Accountant Jamie Barber General Counsel Alfonzo Leon CIO VP Acquisitions Analyst SVP Acquisitions Danica Holley
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 Efficient Pricing for “One - off”
Slide 7: 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… ( 6 ) The U.S. 65 + age group is growing faster than the country’s population – ~ 10,000 Baby Boomers turn 65 every
Slide 8: 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 healthc
Slide 9: 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 10: Property-Owning Subsidiary Structure
GMR Watertown, LLC (Delaware) GMR Omaha, LLC (Delaware) GMR Westland, LLC (Delaware) GMR Sandusky, LLC (Delaware) GMR Pittsburgh, LLC (Delaware) GMR Altoona, LLC (Delaware) GMR Lewisburg, LLC (Delaware) GMR East Orange, LLC (Delaware) GMR Reading, LLC (Delaware) GMR Mechanicsburg, LLC (Delaware) GMR
Slide 11: Portfolio of Established Strong Health Care Operators
Portfolio of Established Strong Health Care Operators Not - For - Profit Health System Affiliations 10 For - Profit Systems Affiliations and Surgical Operator Partnerships Dominant Local Physician Groups
Slide 12: High Quality Portfolio
High Quality Portfolio Newer buildings, strong tenant affiliations, convenient locations, long - term leases _____________________ Source: GMRE data as of 4/30/18 (1) For purposes of calculating our portfolio weighted - average EBITDARM coverage ratio at acquisition (“Rent Coverage Ratio”), we: ( i)
Slide 13: Portfolio Dashboard
Portfolio Dashboard _____________________ As of 4/30/2018 (1) Monthly base rent for April 2018 multiplied by 12. 12 Encompass 11% Memorial Health 11% OCOM 8% Kindred Health 6% Carrus Hospital 5% Pipeline Health 5% Great Bend Hospital 5% Select Medical 4% Orlando Health 3% Conrad Pearson 3% All Other
Slide 14: Portfolio Dashboard
Portfolio Dashboard _____________________ As of 4/30/2018 (1) Monthly base rent for April 2018 multiplied by 12. 13 TX 23% OH 14% PA 13% OK 8% FL 7% TN 5% KS 5% AZ 5% NE 4% IL 3% All Others 13% % of Annualized Base Rent by State Inpatient Rehab 23% Health System 21% Multi - specialty 16% Acute Care
Slide 15: Property Portfolio
Property Portfolio Property Location # of Buildings Facility Type Net Leasable Square Feet Lease Years Remaining Annualized Rent / NOI (1) Annualized Rent Per Square Foot (1) Tenant/Guarantor (2) Albertville Medical Building Albertville, MN 1 MOB 21,486 10.7 $481,072 $22.39 Stellis Health Heartland
Slide 16: Property Portfolio
Property Portfolio Property Location # of Buildings Facility Type Net Leasable Square Feet Lease Years Remaining Annualized Rent / NOI (1) Annualized Rent Per Square Foot (1) Tenant/Guarantor (2) Thumb Butte Medical Center Prescott, AZ 1 MOB 12,000 8.8 $370,800 $30.90 Thumb Butte Medical Center/Phys
Slide 17: Property Portfolio
Property Portfolio _____________________ Data as of April 30, 2018. (1) Monthly base rent at April 30, 2018 multiplied by 12 . Accordingly, this methodology produces an annualized amount as of a point in time but does not take into account future co ntr actual rental rate increases. (2) Certain guar
Slide 18: Disciplined Yet Opportunistic Acquisition Criteria
Disciplined Yet Opportunistic Acquisition Criteria x 70 buildings leased to 39 tenants in 22 States and 100% leased x Strong providers with leading market share x Rent guarantees and other credit protection x Specialization in age - related procedures x Operators with regional footprints x Strong an
Slide 19: Case Study: Memorial Health System (MHS)
Case Study: Memorial Health System (MHS) Key Statistics New Campus for Rapidly - Growing Health System Four Facilities and ROFO for Future Cancer Center Leading Provider with 200+ Employed Physicians MHS (Fitch BB - ) operates the 199 - bed Marietta Memorial Hospital (MMH), a 25 - bed critical acc
Slide 20: Case Study: Encompass Portfolio
Case Study: Encompass Portfolio AZ (1) and PA (2) Key Statistics State - of - the - Art Facility Serving Contemporary Trends Market Dominant Tenant Although each facility has a different overall layout, the buildings are purpose built to provide a complete compliment of care Sustainable Design E
Slide 21: Case Study: Select Medical Specialty Hospital
Case Study: Select Medical Specialty Hospital Key Statistics New, Class A Building Purpose - Built in Key Location Market Dominant Tenant Only LTACH in Omaha, NE, receives critical care discharged patients from every area hospital Attached to the largest, most prominent regional medical center,
Slide 22: Financial Snapshot
Financial Snapshot 21 FY 2017 Periods Ended Q4 2017 Q1 2018 Annualized 2018 (1) ($ in ‘000) Total Revenue 7,435 2,168 2,684 10,736 Interest Expense 3,303 Depreciation and Amortization Expense ( 87 ) 1,249 1,901 7,604 Net Income (Loss) (2) 17,349 6,720 8
Slide 23: Aggregate Property Collateral Value for Israeli Bonds
Aggregate Property Collateral Value for Israeli Bonds (in thousands) 22 $ 205,712 Net book value of property collateral as of March 31 , 2018 25,118 Increase in value based on June 2018 appraisals 64,500 Appraised value of property collateral acquired in April 2018 $ Total Appraised Value of
Slide 24: Summary
Summary • NYSE - traded REIT that operates within the real estate healthcare sector • In connection with the bond offering on the Tel Aviv Stock Exchange, the Company would dual - list its common stock on the Tel Aviv Stock Exchange • Experienced Management and Board of Directors • Diversified portf
Slide 25: Appendix
@*® ciopal UE” MEDICAL REIT APPENDIX
Slide 26: 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 27: Independent Directors
Lori Wittman 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. Inst
Slide 28: 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 29: Calculation of EBITDA
Calculation of EBITDA (unaudited, in thousands) 28 Three Months Ended Year Ended March 31, 2018 December 31, 2017 December 31, 2017 Net Income (loss) (1) $ 1,901 $ 1,249 $ (87) Interest Expense 2,684 2,168 7,435 Depreciation and Amortization Expense 3,671 3,303 10,001 EBITDA $ 8,256 $ 6,720 $ 17,349
Slide 30: Reconciliation of FFO
Reconciliation of FFO (unaudited, in thousands) 29 Three Months Ended Year Ended March 31, 2018 December 31, 2017 December 31, 2017 Net Income (loss) $ 1,901 $ 1,249 $ (87) Less: Preferred Stock Dividends (1,455) (1,456) (1,714) Depreciation and Amortization Expense 3,671 3,303 10,001 Amortization o
Global Medical REIT — Investor Presentation (July 2018) on 6ix