GMRE-PA — Global Medical REIT Inc.

Summary of Chiron Real Estate Q4 2025 Earnings Call

1. Key Financial Results and Metrics

• NAREIT-defined FFO per share/unit: $0.97
• Core FFO: $1.16 per share/unit
• Net debt to adjusted EBITDA: 6.2x, a reduction of 0.7x from the previous period, aided by preferred equity issuance.
• Same-store cash NOI: Increased by 5.4% year-over-year and 2.9% sequentially.
• Dividend Transition: Chiron will shift to a monthly dividend with no change to the annual rate of $3 per share.
• 2026 Core FFO Guidance: Projected range of $4.30 to $4.45 per share/unit, accounting for $0.36 in anticipated headwinds from balance sheet fortification efforts.

2. Strategic Updates and Business Highlights

• New Mission Statement: Chiron aims to deliver value at the intersection of care, capital, and real estate, reflecting a strategic pivot from GMRE.
• Portfolio Management: Appointment of Alex Wilburn as Portfolio Manager to enhance asset management.
• Focus on Senior Housing: Chiron plans to expand into active adult and seniors housing, capitalizing on demographic trends and constrained supply.
• Investment Strategy: Emphasis on acquiring premium newly built active adult and senior housing assets, with a focus on partnerships with experienced operators.
• Recent Transactions: Sold an early vintage medical office for $10 million, using proceeds for stock repurchase, and identified $250 million in prospective asset dispositions.

3. Forward Guidance and Outlook

• Growth Ambition: Chiron aims for earnings growth in the upper quartile of the equity REIT universe, targeting a cash flow growth rate of 6% per year.
• Investment Pipeline: Plans to pursue a differentiated portfolio in senior housing, with an initial investment in Minneapolis expected to deliver a double-digit unlevered IRR by 2027.
• Capital Recycling: Anticipated timing for asset sales and acquisitions, with a focus on maintaining a balanced approach to capital deployment.

4. Bad News, Challenges, or Points of Concern

• Market Conditions: The medical office sector is in a bear market, primarily influenced by rising interest rates, leading to cautious growth expectations.
• Dilution Risks: Potential dilution from asset sales as Chiron aims to recycle capital into higher-return opportunities.
• Operator Risks: The company acknowledges the operational intensity involved in senior housing and the necessity of selecting strong partners to mitigate risks.
• White Rock Bankruptcy: While current rents are being paid, ongoing monitoring of the situation is required, indicating a potential risk if the operator fails to stabilize.

5. Notable Q&A Insights

• Seniors Housing Strategy: Executives emphasized the importance of delivering value and building strong partnerships with operators, focusing on independent and assisted living.
• Capital Recycling Strategy: Discussions on the timing of asset sales and the potential for joint ventures in the inpatient rehab facility space.
• Market Positioning: Chiron's competitive edge lies in its nimbleness and ability to leverage its balance sheet effectively, with a focus on superior returns in the housing sector compared to outpatient medical.
• Operational Challenges: Acknowledgment of the complexities involved in managing senior housing assets and the need for a thoughtful approach to staffing and partnerships.

Overall, Chiron Real Estate is navigating a strategic transformation with a focus on growth in the senior housing sector, while managing existing portfolio challenges and market conditions.