Chiron Real Estate Inc. · NYSE:XRN
Chiron Real Estate — Global Medical REIT — Investor Presentation (June 2018)
27 slides from Chiron Real Estate's investor presentation, Jun 4, 2018
Slide 1: Investor Presentation June 2018
Investor Presentation June 2018
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, Global Medical REIT Inc . ’s (the “Company”, or “GMRE”) securities . The information contained in this presentation does not purport to be complete and s
Slide 3: 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 4: Key Portfolio Statistics and Key Stock Statistics
Key Portfolio Statistics* 70 buildings leased to 39 tenants 1.9M SF of Healthcare RE $602M gross investment W.A. acquisitions cap rate of 7.8% 10.6 years average lease term * As of 4/30/18 Company Highlights 3 Key Stock Statistics** $194M Market Capitalization 1st Quarter Dividend = $0.20/share Comm
Slide 5: 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 Pricing for “One - off” Acquisiti
Slide 6: 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… (1) The U.S. 65+ age group is growing faster than the country’s population – ~10,000 Baby Boomers turn 65 every day –
Slide 7: 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 healthcare dram
Slide 8: Disciplined Yet Opportunistic Acquisition Criteria
Disciplined Yet Opportunistic Acquisition Criteria 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 and diversified payor mix and history x Institutional quality x Pur
Slide 9: Portfolio Locations
Portfolio Locations _____________________ Data as of April 30, 2018. 8
Slide 10: Portfolio of Established Strong Health Care Operators
Portfolio of Established Strong Health Care Operators Not - For - Profit Health System Affiliations 9 For - Profit Systems Affiliations and Surgical Operator Partnerships Dominant Local Physician Groups
Slide 11: 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 12: Portfolio Dashboard
Portfolio Dashboard _____________________ As of 4/30/2018 (1) Monthly base rent for April 2018 multiplied by 12. 11 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 13: Portfolio Dashboard
Portfolio Dashboard _____________________ As of 4/30/2018 (1) Monthly base rent for April 2018 multiplied by 12. 12 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 14: Annualized Rent Revenue Growth By Quarter
Annualized Rent Revenue Growth By Quarter $0 $5,000,000 $10,000,000 $15,000,000 $20,000,000 $25,000,000 $30,000,000 $35,000,000 $40,000,000 $45,000,000 Pre-IPO Q3 2016 Q4 2016 Q1 2017 Q2 2017 Q3 2017 Q4 2017 Q1 2018 Pre-IPO Q3 2016 Q4 2016 Q1 2017 Q2 2017 Q3 2017 Q4 2017 Q1 2018 Most Recent Four Qua
Slide 15: 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 acces
Slide 16: Case Study: NOMS Sale-Leaseback
Case Study: NOMS Sale - Leaseback Key Statistics State of the Art Facility New Facility with Existing Tenant Locally Dominant Tenant 15 Asset Type Medical Office and Imaging Center Gross Leasable Area 25,893 2018 EBITDARM / Rent 2.9 x average at purchase Leased Occupancy 100% Lease Expiration Februa
Slide 17: 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 18: Independent Directors
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. Instant Labs Medi
Slide 19: 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 20: Appendix
@*®, cLopaL Uy” MEDICAL REIT APPENDIX
Slide 21: 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 22: Property Portfolio
Property Portfolio Property Location # of Buildings Facility Type Net Leasable Square Feet Lease Years Remaining Annualized Rent (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 Clinic
Slide 23: Property Portfolio
Property Portfolio Property Location # of Buildings Facility Type Net Leasable Square Feet Lease Years Remaining Annualized Rent (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 /Physician
Slide 24: 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 25: Consolidated Statements of Operations
Consolidated Statements of Operations (unaudited, in thousands, except per share amounts) 24 Three Months Ended March 31, 2018 2017 Revenue Rental revenue $ 10,488 $ 4,629 Expense recoveries 1,068 - Other income 8 30 Total revenue 11,564 4,659 Expenses Acquisition fees 117 942 General and administra
Slide 26: Consolidated Balance Sheets
Consolidated Balance Sheets (unaudited, in thousands) 25 As of March 31, 2018 December 31, 2017 Assets Investment in real estate: Land $ 52,301 $ 42,701 Building 436,185 384,338 Site improvements 5,590 4,808 Tenant improvements 9,201 8,010 Acquired lease intangible assets 34,034 31,650 537,311 471,5
Slide 27: Reconciliation of FFO and AFFO
Reconciliation of FFO and AFFO (unaudited, in thousands, except per share amounts) 26 Three Months Ended March 31, 2018 2017 Net income (loss) $ 1,901 $ (1,318) (1) (1 ) Less: Preferred stock dividends (1,455) - Depreciation and amortization expense 3,671 1,690 Amortization of above (below) market l
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