Chiron Real Estate Inc. · NYSE:XRN
Chiron Real Estate — Global Medical REIT — Investor Presentation (January 2018)
27 slides from Chiron Real Estate's investor presentation, Jan 31, 2018
Slide 1: Investor Presentation January 2018
Investor Presentation January 2018 1
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 pu rchase, the Company’s securities. The information contained in this presentation does not purport to be complete and should not be relie d u pon as a basis for
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 for strong physician operators • Build a diversified, institutionally liquid portfolio with attrac
Slide 4: Key Portfolio and Stock Statistics
Key Portfolio Statistics* 53 Facilities leased to 41 tenants 1.2M SF of Healthcare RE $441M gross investment Weighted average acquisitions cap rate of 7.7% 10 years average lease term 10 years average portfolio age * As of 11/10/17 Company Highlights 3 Key Stock Statistics** $173M Market Capitalizat
Slide 5: Continued Momentum on the GMRE Platform
Continued Momentum on the GMRE Platform Our strides this past year position us well to mark the second anniversary of our initial public offering from a position of strength and accelerating momentum Completed C - suite leadership transition Completed common and preferred equity offerings Successful
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 Pricing for “One - off” Acquisiti
Slide 7: GMR Austin, Austin, Texas
© cLopaL | MEDICAL REIT GMR Austin Austin, Texas
Slide 8: 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 9: 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 10: In 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 In a Historically Recession - Resistant Asset Class _____________________ Source: SNL Financial as of 1/3/18. SNL U.S. REIT Healthcare I
Slide 11: GMR Flower Mound, Flower Mound, Texas
GMR Flower Mound Flower Mound, Texas 11
Slide 12: 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 13: Portfolio Location
Portfolio Location _____________________ Data as of November 10, 2017. 14
Slide 14: High Quality Portfolio
36.1 34.7 27.1 26.4 24.7 23.9 22.8 22.0 20.8 19.9 15.5 10.0 0.0 5.0 10.0 15.0 20.0 25.0 30.0 35.0 40.0 High Quality Portfolio Newer buildings, strong tenants and long term leases Weighted Average Lease Term (Years) (1) Average Asset Age (Years) _____________________ Source: Company Filings as of 9/3
Slide 15: Annualized Rent Growth By Quarter
Annualized Rent 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 Pre-IPO Q3 2016 Q4 2016 Q1 2017 Q2 2017 Q3 2017 Pre-IPO Annual Rent Escalation Q3 2016 Q4 2016 Q1 2017 Q2 2017 Q3 2017 Most Recent Four Quarters: Average Annualized Rent Added Per
Slide 16: Case Study: Associates In Ophthalmology
Case Study: Associates In Ophthalmology Key Statistics State of the Art Facility Top Facilities and Creative Lease Locally Dominant Tenant The building contains state of are equipment used diagnosis and treatment of cataracts, glaucoma, diabetic eye care and macular degeneration The building is accr
Slide 17: Case Study: HealthSouth Portfolio
Case Study: HealthSouth 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 Elements
Slide 18: 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 19: 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 hea lth care programs (
Slide 20: 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 21: Appendix
*. cLopal Uy” MEDICAL REIT APPENDIX
Slide 22: Property Portfolio
Property Portfolio Property Location # of Buildings Facility Type Net Leasable Square Feet Lease Years Remaining Year Built/ Renovated Annualized Rent (1) Annualized Rent Per Square Foot (1) Tenant/Guarantor (2) Alliance Medical Plaza Fort Worth, TX 1 MOB 17,793 10.6 2016 $431,325 $24.24 Texas Diges
Slide 23: Property Portfolio
Property Portfolio Property Location # of Buildings Facility Type Net Leasable Square Feet Lease Years Remaining Year Built/ Renovated Annualized Rent (1) Annualized Rent Per Square Foot (1) Tenant/Guarantor (2) Orlando Health, South Lake Hospital Clermont. FL 1 MOB 18,152 3.58 2014 $368,716 $20.31
Slide 24: Property Portfolio
Property Portfolio Property Location # of Buildings Facility Type Net Leasable Square Feet Lease Years Remaining Year Built/ Renovated Annualized Rent (1) Annualized Rent Per Square Foot (1) Tenant/Guarantor (2) Berks Physicians & Surgeons Wyomissing, PA 2 MOB/ASC 23,261 8.67 2001, 1992/2008 $690,04
Slide 25: Statements of Operation (unaudited)
Statements of Operation (unaudited) Three Months Ended September 30, (unaudited) Nine Months Ended September 30, (unaudited) 2017 2016 2017 2016 Revenue Rental revenue 7,921,913 1,932,425 19,217,710 4,994,172 Expense recoveries 443,816 - 1,141,455 - Other income 23,134 70,225 111,502 93,196 Total re
Slide 26: Balance Sheets
Balance Sheets As of September 30, 2017 (unaudited) As of December 31, 2016 Assets $ $ Land 36,839,127 17,785,001 Building 349,041,480 179,253,398 Site improvements 3,992,974 1,465,273 Tenant improvements 5,095,651 1,186,014 Acquired lease intangible assets 27,308,632 7,187,041 422,277,864 206,876,7
Slide 27: FFO and AFFO Reconciliation
FFO and AFFO Reconciliation Three Months Ended September 30, (unaudited) Nine Months Ended September 30, (unaudited) 2017 2016 2017 2016 $ $ $ $ Net income (loss) attributable to common stockholders 381,268 (1,982,826) (1,559,440) (4,423,588) Depreciation and amortization expense 2,699,155 585,449 6
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