Chiron Real Estate Inc. · NYSE:XRN
Chiron Real Estate — Global Medical REIT — Investor Presentation (January 2017)
23 slides from Chiron Real Estate's investor presentation, Jan 5, 2017
Slide 1: Capital Partners to Health Care Providers
www.globalmedicalreit.com Capital Partners to Health Care Providers INVESTOR PRESENTATION January 2017
Slide 2: Disclaimer
www.globalmedicalreit.com DISCLAIMER 2 This presentation is for informational purposes only and does not constitute an offer to sell, or a solicitation of offers to purchase, the Company’s securities . The information contained in this presentation does not purport to be complete and should not be r
Slide 3: At a Glance
www.globalmedicalreit.com AT A GLANCE ▪ Well positioned to execute on pipeline acquisitions using recently - announced credit facility ▪ Efficient balance of leveraged properties with additional properties that can be mortgaged STOCK INFORMATION * 3 BALANCE SHEET HIGHLIGHTS • GMRE (NYSE) STOCK PRICE
Slide 4: Leadership
www.globalmedicalreit.com LEADERSHIP 4 ▪ Over 25 years of experience in medical and hospital real estate ▪ Vice President – Acquisitions at Windrose Medical Properties Trust (NYSE: WRS), which was acquired by Welltower (NYSE: HCN) ▪ Executive responsible for business development for Healthcare Prope
Slide 5: Company Overview
www.globalmedicalreit.com COMPANY OVERVIEW 5 Healthcare REIT focused on the acquisition and leasing of state - of - the - art, purpose built healthcare facilities Focus on state - of - the - art, licensed medical facilities that through their technology and design enhance the quality of care ▪ Facil
Slide 6: Strategy to Outperform
www.globalmedicalreit.com STRATEGY TO OUTPERFORM 6 Creating attractive returns by leveraging management expertise and differentiated investment strategy Attractive Acquisition Dynamics Outsized Current Returns Capital Appreciation Less competitive market segment Deal sourcing through relationships O
Slide 7: Attractive Industry Trends
www.globalmedicalreit.com ATTRACTIVE INDUSTRY TRENDS 7 PROJECTED AGING OF US POPULATION CHANGING CONSUMER PREFERENCES ARE A MAJOR FACTOR IN GMRE’S PROPERTY SELECTION 15% 17% 19% 21% 21% 22% 22% 22% 23% 24% 0% 5% 10% 15% 20% 25% 30% 0 20 40 60 80 100 120 2015 2020 2025 2030 2035 2040 2045 2050 2055 2
Slide 8: Evidence-Based Design
www.globalmedicalreit.com EVIDENCE - BASED DESIGN 8 As EBD research becomes more widely recognized and reproduced, facilities with these features expect to outperform STATE - OF - THE - ART MEDICAL TECHNOLOGY ADVANCED BUILDING ENGINEERING EFFICIENT TREATMENT AND PROCESSING DESIGN AMENITIZED PATIENT
Slide 9: GMR Investment Criteria
www.globalmedicalreit.com GMR INVESTMENT CRITERIA HIGH - QUALITY FACILITIES x State - of - the - art technology and design x Facilities recently built or renovated x Facilities core to provider business model x Functionality, reusability, conversion value FOCUS ON TENANT OPERATIONS x Excellent medic
Slide 10: Off-Market Deal Sourcing
www.globalmedicalreit.com OFF - MARKET DEAL SOURCING GMR executives have robust relationships with healthcare providers, allowing for direct negotiation and generation of new long term leases without broker intermediaries 11 RELATIONSHIP – BASED REAL ESTATE SOLUTIONS PHYSICIAN GROUPS HOSPITAL CHAINS
Slide 11: Market Dominant Tenants
www.globalmedicalreit.com MARKET DOMINANT TENANTS ESTABLISHED PROVIDER CLINICAL EXPERTISE STRONG CREDIT 12 What we seek to acquire: ▪ Demonstrated clinical leaders ▪ Going concern history ▪ High market share ▪ Stable and competent management ▪ Robust and durable payor contracts Competitive advantage
Slide 12: Lease Structure and Credit Enhancements
www.globalmedicalreit.com Target annual base rent of 7% - 9% of projected total investment cost Typically 2% - 3% annual rent escalations ▪ Attractive and sustainable base return for REIT and shareholders ▪ Built - in inflation protection Absolute NNN lease, 10 - 20 year initial lease terms ▪ No ope
Slide 13: Property Portfolio as of December 31, 2016
www.globalmedicalreit.com PROPERTY PORTFOLIO AS OF DECEMBER 31, 2016 * 14 * Excludes two properties aggregating approximately 42,600 square feet of leasable space under executed contracts as of Dece mbe r 31, 2016 but not yet closed ** Weighted average age calculated as of most recent renovation Pro
Slide 14: Property Portfolio Map
www.globalmedicalreit.com PROPERTY PORTFOLIO MAP AS OF DECEMBER 31, 2016 * 15 * Excludes two properties aggregating approximately 42,600 square feet of leasable space under executed contracts as of Decem ber 31, 2016 but not yet closed
Slide 15: Portfolio Metrics
www.globalmedicalreit.com PORTFOLIO METRICS AVERAGE ASSET AGE LEASE MATURITY – SQ. FT. EXPIRING PREMIUM PORTFOLIO FUNDAMENTALS Portfolio metrics reflecting newer buildings, dominant tenants and long term leases 14 17 20 20 21 21 21 21 22 22 22 25 26 28 32 38 39 N/A 0 10 20 30 40 GMR CTRE DOC UHT HCP
Slide 16: Gastro One, Memphis, TN
www.globalmedicalreit.com GASTRO ONE MEMPHIS, TN KEY STATISTICS SIX BUILDING PORTFOLIO TOP FACILITIES AND CREATIVE LEASE LOCALLY DOMINANT TENANT ▪ Fully operational ambulatory centers that have all scored 100% on their periodic survey inspections by the AAAHC ▪ Highly desirable office park locations
Slide 17: Select Medical Specialty Hospital, Omaha, NE
www.globalmedicalreit.com ▪ Only LTACH in Omaha, NE, receives critical care discharged patients from every area hospital ▪ Attached to the largest, most prominent regional medical center, Bergan Mercy Hospital ▪ Federal government recently imparted a moratorium on constructing LTACH facilities in Om
Slide 18: Pipeline Overview
www.globalmedicalreit.com PIPELINE OVERVIEW MOVING TO DEPLOY CAPITAL ▪ July 2016 IPO proceeds fully deployed as of December 31, 2016 ▪ Year - end 2016 portfolio exceeds $200 million with leasable square feet of approximately 666,000 ▪ Multiple facilities under executed contracts or letters of intent
Slide 19: Investment Highlights
www.globalmedicalreit.com INVESTMENT HIGHLIGHTS Management Team with Public REIT Experience State - of - the - Art Healthcare Facilities Attractive Industry Trends Market Dominant Tenants High Quality Initial Portfolio Substantial Pipeline of High Quality Assets 19
Slide 20: Appendix
www.globalmedicalreit.com APPENDIX 20
Slide 21: Externally Managed by Inter-American
www.globalmedicalreit.com EXTERNALLY MANAGED BY INTER - AMERICAN 21 Background and Strong Alignment of Interests Advisory Agreement Management Fees Path to Internalization ▪ Our advisor is 85% owned by ZH International Holdings, Ltd., a Hong Kong listed real estate company ▪ ZH International is enga
Slide 22: Independent Directors
www.globalmedicalreit.com INDEPENDENT DIRECTORS 23 ▪ President of Global Development International, providing development support and oversight for initiatives in medical and hea lth care programs (e.g. Instant Labs Medical Diagnostics, MedPharm & MPRC Group) ▪ Former President and Founder of intern
Slide 23: Interested Directors
www.globalmedicalreit.com INTERESTED DIRECTORS 24 ▪ 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 lar
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