Chiron Real Estate Inc. · NYSE:XRN
Chiron Real Estate — Global Medical REIT — Investor Presentation (November 2019)
25 slides from Chiron Real Estate's investor presentation, Nov 12, 2019
Slide 1: Investor Presentation November 2019
Investor Presentation November 2019
Slide 2: Forward-Looking Statements
Forward - Looking Statements 1 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
Slide 3: GMRE Value Proposition
GMRE Value Proposition Net lease operating platform, which tends to be more resilient during economic fluctuations Healthcare facilities providing mission critical services with leading operators Proven investment strategy resulting in operational flexibility for tenants and improved asset value D I
Slide 4: Company Profile
Company Profile 3 Owner of national portfolio of purpose - built healthcare facilities leased to strong healthcare systems and groups with leading market share in secondary markets, designed to produce increasing, reliable rental revenue by leasing each property under a long - term, triple - net lea
Slide 5: Demographic & Healthcare Tailwinds Support GMRE's Strategic Vision
Demographic & Healthcare Tailwinds Support GMRE’s Strategic Vision Healthcare Providers Diversifying Real Estate Strategies to Capture Growing Patient Demand Physicians Forming Groups and Moving to Suburban Communities Technology Continues to Push More Healthcare to Outpatient Settings Aging Populat
Slide 6: Increasing Demand for Localized Delivery: An Aging Population Will Drive Healthcare Costs
$6,000 $5,000 $4,000 $3,000 $2,000 $1,000 $0 80 90 00 01 02 03 04 05 06 07 08 09 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 Increasing Demand for Localized Delivery An Aging Population Will Drive Healthcare Costs (1) The U.S. 65+ age group is growing faster than the country’s population – ~10,0
Slide 7: Increasing Demand for Localized Delivery
Increasing Demand for Localized Delivery Source:AHA Annual Survey 2018 (1) CVS Health Institute, 2017. Conveniently Located Healthcare Will Be in Higher Demand (1) According to the 2017 CVS Health Institute survey, individuals aged 65+ want to be independent as long as possible. 79% of the survey pa
Slide 8: Targeted Approach To Acquisitions
Targeted Approach To Acquisitions Focused on constructing a portfolio comprised substantially of off - campus, purpose - built, medical facilities such as MOBs, specialty hospitals, IRFs and ASCs, that are geographically situated to take advantage of the aging U.S. population and the decentralizatio
Slide 9: Attractive Deal Partner
Attractive Deal Partner Maintain a pipeline of $100 - 200 million of actionable acquisition opportunities to sustain long term growth Ability to navigate complex transactions through an adaptable approach to negotiations and deal structuring, creating a favorable reputation within the market Large,
Slide 10: Strong Track Record of Acquisitions Since IPO
Strong Track Record of Acquisitions Since IPO Total Investments Since IPO Portfolio Asset Base (In MM) Since IPO, portfolio has grown from $93 million to $879 million of Gross Real Estate Assets, or 52% annually. 8.15% Cap Rate 7.83% Cap Rate 8.22% Cap Rate 7.51% Cap Rate 0.7 Million SF 1.3 Million
Slide 11: Disciplined Underwriting and Due Diligence Process
Disciplined Underwriting and Due Diligence Process Acquisition Funnel (1) Healthcare real estate is highly liquid, with transaction volumes averaging $2 to $4 billion per quarter over the last five years. Focus on acquiring medical office and outpatient treatment facilities in the $5 to $20 million
Slide 12: Portfolio Constructed to Maximize Risk Adjusted Returns
Portfolio Constructed to Maximize Risk Adjusted Returns 11 Tenant Credit Strength By Asset Type Category % of ABR Rent Coverage Ratio Inpatient Rehab Facility (IRF) 28.0% 3.6x Surgical Hospital (SH) 5.6% 5.7x Long - term Acute Care Hospital (LTACH) 3.5% 3.4x TOTAL/WEIGHTED AVERAGE IRF, SH, LTACH 37.
Slide 13: Tenant Base – Diversified by Use and Geography
Tenant Base – Diversified by Use and Geography No one tenant contributes greater than 10.9% to annualized based rent 12 Top 10 States % of Annualized Base Rent (1) 31.4% 28.0% 17.5% 6.5% 5.9% 3.7% 3.5% 3.5% MOB Total 55.4% MOB 31.4% MOB/ASC 17.5% MOB/Imaging/ER 6.5% IRF 28.0% Surgical Hospital 5.9%
Slide 14: Established Strong Healthcare Operators as Tenants
Established Strong Healthcare Operators as Tenants Not - For - Profit Health System Affiliations For - Profit Systems Affiliations and Surgical Operator Partnerships Dominant Local Physician Groups 13
Slide 15: IRF Portfolio Summary
IRF Portfolio Summary Key Highlights Premier Facilities Transaction Highlights Large National Tenants Portfolio comprised of four IRFs located in Nevada, Arizona, Oklahoma and Indiana being sold by CNL Healthcare Properties Attractive population growth – particularly within the Southwestern markets
Slide 16: IRF Portfolio – Nevada / Arizona
Las Vegas, NV - Key Highlights Surprise, AZ - Key Highlights Gross Leasable Area 53,260 square feet Total Beds 50 Year Built 2007 Year 1 Rent (psf) $1.5 million ($28.24) Lease Term 5.7 years Purchase Price (psf) $21.5 million ($404) Cap Rate 7.0% Tenant Encompass (Ba3) (1) Largest owner and operator
Slide 17: IRF Portfolio – Oklahoma / Indiana
16 Oklahoma City, OK - Key Highlights Mishawaka, IN - Key Highlights Gross Leasable Area 53,449 square feet Total Beds 50 Year Built 2012 Year 1 Rent (psf) $1.9 million ($35.02) Lease Term 8.0 years Purchase Price (psf) $28.0 million ($524) Cap Rate 6.7% Tenant Mercy / Kindred (Aa3 / B2) (1) Mercy H
Slide 18: Strong Balance Sheet to Support Long Term Growth
17 Strong Balance Sheet to Support Long Term Growth Mercy/Kindred Oklahoma City Facility Credit Facility Capitalization ($ MM) $407 $450 $75 Highlights Total liquidity of $136M, including $133M of availability on the Credit Facility (1) Manageable near term debt maturities through 2023 Weighted Aver
Slide 19: Seasoned Leadership
Seasoned Leadership JEFFREY BUSCH , Chairman, Chief Executive Officer and President ROBERT KIERNAN , Chief Financial Officer and Treasurer ALFONZO LEON , Chief Investment Officer ▪ 17 + years of experience in real estate finance and has completed $ 3 billion of transactions ▪ Prior experience as pri
Slide 20: 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 21: Non-Independent Directors
Non - Independent 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 l
Slide 22: Appendix
GLOBAL MEDICAL REIT APPENDIX
Slide 23: External Management Structure
External Management Structure Structure reduced G&A expense during post - IPO initial growth phase while providing path to potential internalization ▪ Advisor, Inter - American Management, LLC, is 85% owned by ZH International Holdings, Ltd., a Hong Kong listed real estate company and manages day to
Slide 24: Disclosures
Disclosures 23 Portfolio Snapshot (see page 3 ) Annualized Base Rent (ABR) represents monthly base rent at September 30, 2019 (or estimated NOI for cCare , East Lansing, Bannockburn, and Mission Health properties) multiplied by 12 . Accordingly, this methodology produces an annualized amount as of a
Slide 25: Investor Relations
Evelyn Infurna Evelyn.Infurna@icrinc.com 203.682.8265 Kara Smith Kara.Smith@icrinc.com 646 - 277 - 1211 INVESTOR RELATIONS
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