Q4 2025 Chiron Real Estate Inc Earnings Call

February 26, 2026

Operator: Welcome to the Viavid Conference Center. The next available conference specialist will be with you momentarily. Welcome to the Viavid Conference Center. The next available conference specialist will be with you momentarily.

Operator 2: Conference Center. May I have your name, please? David Brown from Ayara. Thanks. What call are you dialing for? Global Medical REIT Earnings Call. I'm sorry, which call was that again, please? Global Medical. Okay, let me just see here. Sorry, I'm just trying to look through here. I'm not finding that yet. Let me take another look in here and see. Can you try Chiron Real Estate, Q4 2025? Sure. Let me just try that. There we go. I did find that. I'll get you right through. Be on in a few moments. Thank you.

Operator: Conference Center. May I have your name, please? David Brown from Ayara. Thanks. What call are you dialing for? Global Medical REIT Earnings Call. I'm sorry, which call was that again, please? Global Medical. Okay, let me just see here. Sorry, I'm just trying to look through here. I'm not finding that yet. Let me take another look in here and see. Can you try Chiron Real Estate, Q4 2025? Sure. Let me just try that. There we go. I did find that. I'll get you right through. Be on in a few moments. Thank you.

Mark Decker, Jr.: Delivering value at the intersection of care, capital, and real estate. Our team is well-positioned to execute on this mission with strong leadership across operations, finance, and investments. We have a deep bench of talent beyond the familiar names. I believe that we can punch above our weight. Before looking at where we're going as Chiron, it's important to acknowledge what we've done as GMRE. From the date of our IPO, GMRE has meaningfully exceeded the total return profile of our closest MOB peers. That's a good thing. We intend to keep outperforming. What's not good is that medical office has been in a bear market for years.

Mark Decker Jr.: Delivering value at the intersection of care, capital, and real estate. Our team is well-positioned to execute on this mission with strong leadership across operations, finance, and investments. We have a deep bench of talent beyond the familiar names. I believe that we can punch above our weight. Before looking at where we're going as Chiron, it's important to acknowledge what we've done as GMRE. From the date of our IPO, GMRE has meaningfully exceeded the total return profile of our closest MOB peers. That's a good thing. We intend to keep outperforming. What's not good is that medical office has been in a bear market for years.

Mark Decker, Jr.: This bear market has had more to do with interest rates than asset performance, we need to be prepared for a world where 4% 10-year Treasuries is the new normal and 2% to 3% rent growth may be sub-inflationary. We've rewritten our playbook to prioritize earnings growth on top of our stable existing portfolio. We've already made an incredible amount of progress. This progress includes establishing a long-term strategy to guide our decision-making and hold ourselves accountable, as well as a comprehensive review of our existing portfolio. Our findings have informed our decision to reimagine the way we approach asset management, leading to the appointment of Alex Wilburn as Portfolio Manager. Alex is one of our longest tenured team members, most recently serving as a senior investments professional.

Mark Decker Jr.: This bear market has had more to do with interest rates than asset performance, we need to be prepared for a world where 4% 10-year Treasuries is the new normal and 2% to 3% rent growth may be sub-inflationary. We've rewritten our playbook to prioritize earnings growth on top of our stable existing portfolio. We've already made an incredible amount of progress. This progress includes establishing a long-term strategy to guide our decision-making and hold ourselves accountable, as well as a comprehensive review of our existing portfolio. Our findings have informed our decision to reimagine the way we approach asset management, leading to the appointment of Alex Wilburn as Portfolio Manager. Alex is one of our longest tenured team members, most recently serving as a senior investments professional.

We've already made an incredible amount of progress. This progress includes establishing a long-term strategy to guide our decision-making. And hold ourselves accountable, as well as a comprehensive review of our existing portfolio.

Our findings have informed our decision to reimagine the way we approach Asset Management leading to the appointment of Alex. Wilburn is portfolio manager.

Mark Decker, Jr.: We're excited for him to apply his capital allocation and market-oriented mind to the portfolio management function and know that he will thrive in his new role. We also took time to think about how our existing portfolio stacks up against the field, drawing a few conclusions. First, it's important to acknowledge the overall return profile of medical office. Rent growth is incredibly consistent but modest, due to our fixed rate escalators and long average lease term. This growth is partially offset by the capital and leasing costs. We found that our performance is in line with the sector generally. One key difference is entry price. We believe that if you're going to face limited growth, it's important to realize more yield going in. Second, we believe that the benefit of the healthcare sector is that you can find great investment opportunities outside of primary markets.

Mark Decker Jr.: We're excited for him to apply his capital allocation and market-oriented mind to the portfolio management function and know that he will thrive in his new role. We also took time to think about how our existing portfolio stacks up against the field, drawing a few conclusions. First, it's important to acknowledge the overall return profile of medical office. Rent growth is incredibly consistent but modest, due to our fixed rate escalators and long average lease term. This growth is partially offset by the capital and leasing costs. We found that our performance is in line with the sector generally. One key difference is entry price. We believe that if you're going to face limited growth, it's important to realize more yield going in. Second, we believe that the benefit of the healthcare sector is that you can find great investment opportunities outside of primary markets.

Alex is 1 of our longest tenure team members, most recently serving as a senior Investments professional. We're excited for him to apply his Capital allocation and Market oriented mind to the portfolio, management function and know that he will thrive in his new role.

We also took time to think about how our existing portfolio stacks up against the field, drawing a few conclusions.

First, it's important to acknowledge the overall return profile of medical office. Rent growth is incredibly consistent but modest due to our fixed rate escalators and long average. Lease term,

this growth is partially offset by the capital and leasing costs.

We found that our performance is in line with the sector, generally 1, key difference is entry price, we believe that. If you're going to face limited growth, it's important to realize more yield going in

Mark Decker, Jr.: When comparing the demographic profile of our assets to that of the United States at large, we found that we're biased towards higher prosperity markets. Third, the vast majority of our portfolio is owed fee simple, meaning that it's not encumbered by a ground lease. This is critical, as outpatient medical owners often operate in an environment where their building tenant is their landlord lessor. This has the predictable effect of reducing your opportunity when negotiating renewals. When the ground owner is your healthcare system, they often have the ability to dictate leasing outcomes. Finally, rising construction costs and undeniable demographic shifts have given us an outstanding opportunity to push rents years to come. We think that an improved emphasis on driving portfolio performance, including a more proactive approach to pruning underperforming assets, will put us in a great position to capitalize on this opportunity.

Mark Decker Jr.: When comparing the demographic profile of our assets to that of the United States at large, we found that we're biased towards higher prosperity markets. Third, the vast majority of our portfolio is owed fee simple, meaning that it's not encumbered by a ground lease. This is critical, as outpatient medical owners often operate in an environment where their building tenant is their landlord lessor. This has the predictable effect of reducing your opportunity when negotiating renewals. When the ground owner is your healthcare system, they often have the ability to dictate leasing outcomes. Finally, rising construction costs and undeniable demographic shifts have given us an outstanding opportunity to push rents years to come. We think that an improved emphasis on driving portfolio performance, including a more proactive approach to pruning underperforming assets, will put us in a great position to capitalize on this opportunity.

Second, we believe that the benefit of healthcare the benefit of the healthcare sector is that you can find great investment opportunities. Outside of primary markets, When comparing the demographic profile of our assets to that of the United States at large. We found that we're biased towards higher Prosperity markets,

Third. The vast majority of our portfolio is owned fee. Simple. Meaning that it's not encumbered by a ground lease. This is critical.

As outpatient medical owners, often operate in an environment where they're building tenant, is their land Buster. This has the predictable effect of reducing your opportunity when negotiating renewals when the ground owner is your Healthcare System, they often have the ability to dictate leasing outcomes.

finally Rising construction costs and undeniable demographic shifts have given us an outstanding opportunity to push rents in the year to come years to come

We think that an improved emphasis on driving portfolio performance, including a more proactive approach to pruning. Under poor, farming assets will put us in a great position to capitalize on this opportunity.

Mark Decker, Jr.: Bob and his team have also been working hard in the capital markets to position our balance sheet for offense. I'm proud to share that we now have no debt maturing before 2028, a big change from where we were six months ago, and our current maturity schedule is well-laddered and manageable. Looking toward the road ahead, it's our ambition to build an organization that can routinely deliver earnings growth in the upper quartile of the equity REIT universe. Doing that has historically meant growing cash flow by 6% per year. This will be a process requiring active management of the existing portfolio and investing more broadly across the healthcare sector. We've put a lot of thought towards how we're going to approach each of these considerations. Importantly, we are still firm believers in the economic and demographic tailwinds benefiting our existing portfolio.

Mark Decker Jr.: Bob and his team have also been working hard in the capital markets to position our balance sheet for offense. I'm proud to share that we now have no debt maturing before 2028, a big change from where we were six months ago, and our current maturity schedule is well-laddered and manageable. Looking toward the road ahead, it's our ambition to build an organization that can routinely deliver earnings growth in the upper quartile of the equity REIT universe. Doing that has historically meant growing cash flow by 6% per year. This will be a process requiring active management of the existing portfolio and investing more broadly across the healthcare sector. We've put a lot of thought towards how we're going to approach each of these considerations. Importantly, we are still firm believers in the economic and demographic tailwinds benefiting our existing portfolio.

Bob and his team have also been working hard in the capital markets to position our balance sheet for offense. I'm proud to share that. We now have no debt maturing before 2028 a big change from where we were 6 months ago and our current maturity schedule is well, laddered and manageable.

Your team—they deliver earnings growth in the upper quartile of the equity rate universe. Doing that has historically meant growing cash flow by 6% per year.

Mark Decker, Jr.: That said, we also believe that these same tailwinds benefit other subsets of healthcare real estate, namely active adult and senior housing. Our entire team has spent considerable time thinking through whether we should pursue investments in the senior space, concluding that the answer is an enthusiastic yes. The silver tsunami is just building, with the first baby boomers now just entering their eighties. More broadly, the population of Americans aged 70 or older will expand for decades to come. Existing supply is severely constrained, and project deliveries are expected to be far short of what is needed to satisfy demands. Once we knew that we wanted to explore seniors, the next question was how? We believe there's an opportunity to assemble a differentiated portfolio of premium, newly built, active adult, and shop investments in the public markets.

Mark Decker Jr.: That said, we also believe that these same tailwinds benefit other subsets of healthcare real estate, namely active adult and senior housing. Our entire team has spent considerable time thinking through whether we should pursue investments in the senior space, concluding that the answer is an enthusiastic yes. The silver tsunami is just building, with the first baby boomers now just entering their eighties. More broadly, the population of Americans aged 70 or older will expand for decades to come. Existing supply is severely constrained, and project deliveries are expected to be far short of what is needed to satisfy demands. Once we knew that we wanted to explore seniors, the next question was how? We believe there's an opportunity to assemble a differentiated portfolio of premium, newly built, active adult, and shop investments in the public markets.

This will be a process, requiring active management of the existing portfolio and investing more broadly across the healthcare sector. We put a lot of thought towards how we're going to approach each of these considerations. Importantly, we are still firm believers in the economic and demographic tailwind benefiting our existing portfolio.

That said, we also believe that these same Tailwind benefit other subsets of healthcare. Real estate namely active adult and senior housing.

Our entire team has spent considerable time thinking through, whether we should pursue investments in the senior space.

Concluding. That the answer is an enthusiastic. Yes.

The silver tsunami is just building with the first baby boomers. Now, just entering their 80s more broadly, the population of Americans aged 70 or older will expand for decades to come

Existing supply is severely constrained, and projected deliveries are expected to be far short of what is needed to satisfy demands.

Once we knew that we wanted to explore seniors. The next question, was how

Mark Decker, Jr.: There's a lot that went into that decision, but I'll highlight a few components. The lack of new supply through COVID and the GFC have led to an average age of 24 years for existing senior housing assets. These facilities were designed for a different generation of residents, we think that newer assets with great operators will have a competitive advantage. This is especially true in the active adult segment, where high-end amenities and programming are the defining component of the resident experience. Second, the cohort of highest income seniors is sizable and growing, providing us with the comfort that demand for premium facilities will prove resilient. Finally, our lack of incumbency and small size converts an advantage. We can focus solely on the products we want, and relatively small transactions move the needle, enabling the potential for stronger growth.

Mark Decker Jr.: There's a lot that went into that decision, but I'll highlight a few components. The lack of new supply through COVID and the GFC have led to an average age of 24 years for existing senior housing assets. These facilities were designed for a different generation of residents, we think that newer assets with great operators will have a competitive advantage. This is especially true in the active adult segment, where high-end amenities and programming are the defining component of the resident experience. Second, the cohort of highest income seniors is sizable and growing, providing us with the comfort that demand for premium facilities will prove resilient. Finally, our lack of incumbency and small size converts an advantage. We can focus solely on the products we want, and relatively small transactions move the needle, enabling the potential for stronger growth.

We believe there's an opportunity to assemble a differentiated portfolio of Premium. Newly built active adult and Shop investments in the public markets.

There's a lot that went into that decision, but I'll highlight a few components.

the lack of new Supply through Co and the GFC have led to an average age of 24 years for existing senior housing assets,

these facilities were designed for a different generation of residents and we think that newer assets with great operators will have a competitive advantage

This is especially true in the active adult SE segment, where high-end amenities and programming are the defining component of the resident experience.

Second, the cohort of highest income scenarios is sizeable and growing providing us with the comfort that demand for premium facilities will prove resilient.

Mark Decker, Jr.: It's the early days of the silver tsunami, and there's lots of room on that wave. Our team has a sound understanding of the space and believe our boutique approach to partnership with operators and developers gives us a broad opportunity as we enter these verticals. Many existing owners, operators, and developers of senior housing facilities are middle market in nature, so that decision of who to partner with on their business is a monumental one, and there are many considerations beyond who's willing to pay the most. This obvious value proposition has allowed us to build an attractive pipeline, each with strong return profile and opportunity to build a larger relationship. For now, we'll be thoughtful in limiting investments to those that we can fund through capital recycling, but we're ready for more when that changes.

Mark Decker Jr.: It's the early days of the silver tsunami, and there's lots of room on that wave. Our team has a sound understanding of the space and believe our boutique approach to partnership with operators and developers gives us a broad opportunity as we enter these verticals. Many existing owners, operators, and developers of senior housing facilities are middle market in nature, so that decision of who to partner with on their business is a monumental one, and there are many considerations beyond who's willing to pay the most. This obvious value proposition has allowed us to build an attractive pipeline, each with strong return profile and opportunity to build a larger relationship. For now, we'll be thoughtful in limiting investments to those that we can fund through capital recycling, but we're ready for more when that changes.

And finally, our lack of incumbency and small size converts an advantage. We can focus solely on the product, we want and relatively small transactions move the needle, enabling the potential for stronger growth.

It's the early days of the silver tsunami and there's lots of room on that wave.

Our team has a sound understanding of the space and believe our Boutique approach to partnership with operators and developers gives us a broad opportunity as we enter these verticals.

Many, existing owners operators and developers of senior housing facilities are Middle Market in nature.

so that decision of who to partner with on their business is a Monumental 1, and there are many considerations Beyond will who is willing to pay the most

It's obvious value. Proposition has allowed us to build an attractive pipeline each with strong return profile and opportunity to build a larger relationship.

For now, we'll be thoughtful in limiting Investments to those that we can fund through Capital recycling but we're ready for more when that changes.

Mark Decker, Jr.: Our announced active adult investment in Minneapolis is a great example of the opportunity available to Chiron. We've taken a 49% interest in the development of a new community with an expected delivery of 2027 and a stabilized double-digit unlevered IRR. This investment was sourced off market through a relationship with an experienced luxury housing developer that we've transacted with in the past and known for a decade. We believe this relationship provides us with future pipeline of great communities. As mentioned earlier, we're being thoughtful about how we fund these acquisitions, given our current cost of capital. During the quarter, we sold an early vintage medical office for a sales price of $10 million, sparing our team the outsized execution risk and capital required to stabilize a poorly positioned building.

Mark Decker Jr.: Our announced active adult investment in Minneapolis is a great example of the opportunity available to Chiron. We've taken a 49% interest in the development of a new community with an expected delivery of 2027 and a stabilized double-digit unlevered IRR. This investment was sourced off market through a relationship with an experienced luxury housing developer that we've transacted with in the past and known for a decade. We believe this relationship provides us with future pipeline of great communities. As mentioned earlier, we're being thoughtful about how we fund these acquisitions, given our current cost of capital. During the quarter, we sold an early vintage medical office for a sales price of $10 million, sparing our team the outsized execution risk and capital required to stabilize a poorly positioned building.

Our announced active adult investment in Minneapolis is a great example of the opportunity available to Chiron. We've taken a 49% interest in the development of a new community with an expected delivery of 2027 and a stabilized double digit, unlevered irr,

This investment was sourced off Market through a relationship with an experienced luxury, housing, developer that we've trans transacted with in the past, and known for a decade.

We believe this relationship provides us with future pipeline of great communities.

Mark Decker, Jr.: We used these proceeds to repurchase stock in a leverage-neutral fashion, which we view to be a sound capital allocation decision. We'll be very conscious of debt levels as we execute our pipeline and have already identified approximately $250 million of prospective dispositions. These dispositions are likely to focus on assets that we believe will demonstrate the overall quality of our book, including a portfolio of IRF assets and the Beaumont Surgical Affiliates. We've begun marketing efforts on each and believe that we will realize proceeds meaningfully above our basis, demonstrating our ability to make sound investments. Thank you for allowing me to take you through that. Bob, would you please walk us through some of our quarterly highlights?

Mark Decker Jr.: We used these proceeds to repurchase stock in a leverage-neutral fashion, which we view to be a sound capital allocation decision. We'll be very conscious of debt levels as we execute our pipeline and have already identified approximately $250 million of prospective dispositions. These dispositions are likely to focus on assets that we believe will demonstrate the overall quality of our book, including a portfolio of IRF assets and the Beaumont Surgical Affiliates. We've begun marketing efforts on each and believe that we will realize proceeds meaningfully above our basis, demonstrating our ability to make sound investments. Thank you for allowing me to take you through that. Bob, would you please walk us through some of our quarterly highlights?

As mentioned earlier, we're being thoughtful about how we fund these Acquisitions. Given our current cost of capital during the quarter, we sold an early vintage medical office for a sales price of $10 million sparing. Our team, the outsized execution risk and capital required to stabilize a poorly positioned building.

We use these proceeds to repurchase stock in a leveraged neutral fashion which we view to be a Sound Capital allocation decision.

We'll be very conscious of debt levels as we execute our Pipeline and have already identified approximately 250 million of prospective dispositions.

These dispositions are likely to focus on assets that we believe will demonstrate the overall quality of our book.

Including a portfolio of Earth assets.

And the Bowmont surgical hospital, we've begun marketing efforts on each and believe that we will realize proceeds meaningfully above our basis, demonstrating our ability to make sound Investments.

Thank you for allowing me to take you through that. Bob, would you please walk us through some of our quarterly highlights?

Bob: Thanks, Mark. Our Nareit-defined FFO per share and unit was $0.97 for the quarter. Core FFO, which we previously referred to as AFFO, was $1.16 per share and unit. Net debt to adjusted EBITDAre was 6.2x for the quarter, a reduction of 0.7x from the prior period, which was driven by our recent preferred equity issuance. Same-store cash NOI, which includes all assets owned by Chiron for at least 15 months, increased 5.4% on a year-over-year basis. Sequential performance was also strong at 2.9%. I'm pleased to share that Chiron will be transitioning to a monthly dividend, with no change to the annual $3 per share rate. We believe that the dividend will provide our shareholders with a more frequent income stream, while also reducing frictional costs for the company.

Bob Kiernan: Thanks, Mark. Our Nareit-defined FFO per share and unit was $0.97 for the quarter. Core FFO, which we previously referred to as AFFO, was $1.16 per share and unit. Net debt to adjusted EBITDAre was 6.2x for the quarter, a reduction of 0.7x from the prior period, which was driven by our recent preferred equity issuance. Same-store cash NOI, which includes all assets owned by Chiron for at least 15 months, increased 5.4% on a year-over-year basis. Sequential performance was also strong at 2.9%. I'm pleased to share that Chiron will be transitioning to a monthly dividend, with no change to the annual $3 per share rate. We believe that the dividend will provide our shareholders with a more frequent income stream, while also reducing frictional costs for the company.

Thanks Mark.

Our day read defined ffo per share in unit is 97 cents for the quarter.

Core ffo, which we previously referred to as afo was a $1.16 per share in unit. Net net, net debt, to adjusted. Ebit Dari was 6.2 times for the quarter, a reduction of 0.7 times for the, from the prior period. Which was driven by our recent preferred Equity issuance.

Same-store cash NOI, which includes all assets owned by Chiron for at least 15 months, increased 5.4% on a year-over-year basis. Sequential performance was also strong at 2.9%.

Like Tyron will be transitioning to a monthly dividend with no change to the annual 3 dollars per share rate.

Bob: I'm also pleased to share our initial 2026 Core FFO guidance range of $4.30 to 4.45 per share and unit. This range includes $0.36 of anticipated headwinds due to the results of our balance sheet fortification efforts throughout the back half of last year. Notably, this guidance does not reflect any speculative acquisition or disposition activity. Mark, would you like to provide some closing thoughts?

Bob Kiernan: I'm also pleased to share our initial 2026 Core FFO guidance range of $4.30 to 4.45 per share and unit. This range includes $0.36 of anticipated headwinds due to the results of our balance sheet fortification efforts throughout the back half of last year. Notably, this guidance does not reflect any speculative acquisition or disposition activity. Mark, would you like to provide some closing thoughts?

We believe that the dividend will provide our shareholders with a more frequent income stream. While also reducing frictional costs for the company,

I'm also pleased to share our initial 2026 core FFO guidance, in a range of $4.30 to $4.45 per share, in unit. This range includes $0.36 of anticipated headwinds due to the results of our balance sheet re-valuation efforts throughout the back half of last year.

Notably, this guidance does not reflect any speculative acquisition or disposition activity.

Mark, would you like to provide some closing thoughts?

Mark Decker, Jr.: Yeah. If you're just joining the call, you need to know that it's been a busy quarter and we've accomplished a lot, and we're well positioned in the care delivery universe and broadening our aperture to add growth from senior housing to our quality cash flows. The care universe has undeniable tailwinds that make a nimble player like Chiron well positioned to grow quickly through internal and external cash flows, and we're excited for our future and believe strongly in what we're doing. We wouldn't ask you to endorse a strategy that we ourselves are unwilling to invest in. With that, we look forward to seeing some of you at Citi next week. Operator, we're ready to take questions.

Mark Decker Jr.: Yeah. If you're just joining the call, you need to know that it's been a busy quarter and we've accomplished a lot, and we're well positioned in the care delivery universe and broadening our aperture to add growth from senior housing to our quality cash flows. The care universe has undeniable tailwinds that make a nimble player like Chiron well positioned to grow quickly through internal and external cash flows, and we're excited for our future and believe strongly in what we're doing. We wouldn't ask you to endorse a strategy that we ourselves are unwilling to invest in. With that, we look forward to seeing some of you at Citi next week. Operator, we're ready to take questions.

Yeah, if you're just joining the call, you need to know that it's been a busy quarter and we've accomplished a lot and we're well positioned in the care. Delivery universe, and broadening our aperture to add growth from senior housing to our quality cash flows.

The care Universe has undeniable Tailwind that make and Nimble player like Chiron. Well, positioned to grow quickly through internal and external cash flows.

And we're excited for our future and believe strongly. In what we're doing, we wouldn't ask you to endorse a strategy that we ourselves are unwilling to invest in.

And with that we look forward to seeing some of you at city next week in operator. We're ready to take questions.

Operator: Thank you. We will now be conducting a question-and-answer session. If you would like to ask a question, please press star one on your telephone keypad. A confirmation tone will indicate your line is in the question queue. You may press star two to remove yourself from the queue. For participants using speaker equipment, it may be necessary to pick up the handset before pressing the star keys. One moment please while we pull for a question. Our first question comes from the line of Juan Sanabria with BMO Capital Markets. Please proceed with your question.

Thank you. We will now be conducting a question and answer session. If you would like to ask a question, please press star 1 on your telephone keypad, a confirmation toll will indicate your line is in the question queue. You may press star 2 to remove yourself from the queue for participants using the speaker equipment, it may be necessary to pick up the handset before pressing the star keys.

1 moment, please while we pull for questions.

Our first question comes from the line of

Lawn sanria with BMO Capital markets, please proceed with your question.

Juan Sanabria: Hi, good morning. Thanks for the time. Congratulations on laying out the new strategy and thesis. I guess the big question in my mind is just, you know, there's obviously a lot of enthusiasm around seniors housing, and why do you think Chiron is positioned to execute over and above what some of your peers are doing? The focus in seniors, is that more assisted, independent living? How do you plan to pick the operators, the market focus? If you could just give us a little sense of kind of what we should expect going forward in seniors and why Chiron is the platform to out execute some of your peers.

Hi, good morning, thanks for the time. Uh, congratulations on laying out the new strategy and thesis. Um, I guess the big question in my mind is just, um,

you know, there's obviously a lot of enthusiasm around seniors housing and, and why do you think Chiron is positioned to execute, uh, over and above what some of your peers are are doing, um, and the focus in seniors is that more assisted Independent Living,

Um, how do you, um, plan to pick the operators? The market Focus. So if you could just give us a little sense of kind of what we should expect going forward in seniors, and why Quran is the platform to to out execute some of your peers.

Mark Decker, Jr.: Sure. Good morning, Juan. Thanks. Listen, it's a big universe out there, operators have lots of options. I think the way that we'll have to compete is by delivering value, as we've articulated, sort of as the main mission. I mean, you know, there's lots of considerations that go into who the real estate partner is going to be. You know, I think if I'm on the other side of the table, choice is good, we're one more choice. We'll have to win the business, just like anyone else on the merits of our value proposition. Why do we think we can? I mean, you know, we talk about this a lot around the water cooler.

Mark Decker Jr.: Sure. Good morning, Juan. Thanks. Listen, it's a big universe out there, operators have lots of options. I think the way that we'll have to compete is by delivering value, as we've articulated, sort of as the main mission. I mean, you know, there's lots of considerations that go into who the real estate partner is going to be. You know, I think if I'm on the other side of the table, choice is good, we're one more choice. We'll have to win the business, just like anyone else on the merits of our value proposition. Why do we think we can? I mean, you know, we talk about this a lot around the water cooler.

Sure, good morning. Thanks.

Listen, it's a—it's a big universe out there, and, uh,

Operators have lots of options. I, I think the way that we'll have to compete is uh,

By by delivering value as as we've articulated sort of, as the main mission. But I mean,

you know, there's lots of considerations that go into who the real estate partner is going to be and

You know, I I think if if I'm on the other side of the table choice is good and so we're 1, more Choice, we'll have to win.

The business uh just like anyone else on on the merits of our value proposition.

And why do we think we can? I mean, you know,

Mark Decker, Jr.: I mean, there's a version of the universe where we're like the smallest, most irrelevant company in the space. Then there's the real world, where we have, you know, an unsecured balance sheet and $100 million of EBITDA and a great team with good gray matter. If I was describing that company to just a normal person, they'd say, Well, that sounds like a pretty good business. It is a good business. It's possible the public market will appreciate that, and we can use that tool to our advantage or, you know, or not. Either way, we're gonna build a great business.

Mark Decker Jr.: I mean, there's a version of the universe where we're like the smallest, most irrelevant company in the space. Then there's the real world, where we have, you know, an unsecured balance sheet and $100 million of EBITDA and a great team with good gray matter. If I was describing that company to just a normal person, they'd say, Well, that sounds like a pretty good business. It is a good business. It's possible the public market will appreciate that, and we can use that tool to our advantage or, you know, or not. Either way, we're gonna build a great business.

uh, we talked about this a lot, uh, around the water cooler. I mean, there's a version of the universe where where, like the smallest most relevant

Company in the space. And and then there's the real world where we have, you know, an unsecured balance sheet, and a hundred million dollars of ibida and a great team with good gray matter. And if I was describing that company to just a normal person

So it sounds like a pretty good business. It is a good business. Um,

Juan Sanabria: The focus on seniors would be on what kind of product type? Kind of putting active adults to one side, independent, assisted, as the communities, markets, et cetera. What's the focus, I guess, day one?

And, and it's possible. The public market will appreciate that, and we can use that tool to our advantage or, you know, or not. But, but either way, we're going to build a great business.

And and the focus on seniors would be on what kind of product type, um, kind of putting active adults to 1 side.

Mark Decker, Jr.: I mean, we're really focusing on the operator and the real estate, and we're really looking at independent and assisted. Some memory care. We stay away from skilled.

Mark Decker Jr.: I mean, we're really focusing on the operator and the real estate, and we're really looking at independent and assisted. Some memory care. We stay away from skilled.

Independent assistant, communities, markets, etc. What's the focus that they want?

I mean, we're really focusing on on the operator and the real estate. And, and we're really looking at, uh,

Independent and assisted some Memory Care would stay away from skilled.

Juan Sanabria: Okay. Then on the disposition side, the $250 million of assets that you're potentially looking to capital recycle, just, you kind of put some yield targets for the investments, but how should we think about the yield associated with those potential sales? If you could talk maybe about the timing of the selling versus buying and how we should think about kind of the cadence of recycling that capital?

Okay. Um,

and and then on the disposition side of 250 million of assets that you're potentially looking at the Capitol recycle just

You kind of put some yield targets for the Investments, right. How should we think about the yield associated with those?

We should think about kind of the Cadence of.

Recycling. That capital.

Mark Decker, Jr.: Well, we can't force anything, you know, everything takes two good willing parties. We have launched a JV. We like the inpatient rehab facility space. We'd like to express that like of that space by hoping to find a capital partner with us. We have a good track record and a decent sized portfolio in that niche, we think we can do some interesting things and grow that. We'd like to do it with a capital partner, we're out in the market looking for a joint venture. It's possible someone comes and says, "We've got to have this at a price that makes it a full sale," that's not our objective. I would imagine that happens in Q2 or Q3.

Mark Decker Jr.: Well, we can't force anything, you know, everything takes two good willing parties. We have launched a JV. We like the inpatient rehab facility space. We'd like to express that like of that space by hoping to find a capital partner with us. We have a good track record and a decent sized portfolio in that niche, we think we can do some interesting things and grow that. We'd like to do it with a capital partner, we're out in the market looking for a joint venture. It's possible someone comes and says, "We've got to have this at a price that makes it a full sale," that's not our objective. I would imagine that happens in Q2 or Q3.

Yeah, well, we can't force anything. So uh, you know, everything takes too too, good willing parties but uh, we have launched a, a JB. We we like the, uh,

Inpatient Rehab Facility space. We we'd like to express that uh, like of that space by hoping to find a Capital Partner with us. We have a good track record and a decent sized portfolio.

In that Niche. And uh, we think we can do some interesting things and and grow that and and we'd like to do it with a capital partner. So we're we're out in the market, uh, looking for a joint venture. It it's possible. Come someone comes and says, we we got to have this at a price.

That makes it a full sale, but that's not our objective.

And I would imagine that happens.

Mark Decker, Jr.: On the MOB sale, we are working with a buyer there. I would expect we'd announce an LOI on that in the next, I don't know, 60 days. Probably have that off the books by Q3. That asset has been a real strong contributor to our same store, so we kind of hate to see it go. I mean, we just signed a 15-year lease with a A-rated credit, and it's a really good recycling candidate for that reason.

Mark Decker Jr.: On the MOB sale, we are working with a buyer there. I would expect we'd announce an LOI on that in the next, I don't know, 60 days. Probably have that off the books by Q3. That asset has been a real strong contributor to our same store, so we kind of hate to see it go. I mean, we just signed a 15-year lease with a A-rated credit, and it's a really good recycling candidate for that reason.

in the second or third quarter uh and then on the m0 sale we are working with

a buyer there, and I would expect we'd announced

Uh, an Loi on that in the next. Uh, I don't know 60 days and and probably have that.

Uh, off the books by the third quarter.

That asset has been a real strong contributor to our same store. So,

we kind of hate to see it go but I mean we just signed a 15-year lease with it a-rated credit and it it's uh,

It's a really good recycling. Um,

Candidate for that reason.

Juan Sanabria: Just the last question for me. On the White Rock bankruptcy, I guess, have they paid Q1 rents, or how should we think about the impact to financials at this point in time?

And then just the last question for me, um, on the White Rock bankruptcy. Um,

I guess that they paid first quarter rents or how should we think about the impact to financials.

Mark Decker, Jr.: Yeah. They have paid. They are currently current on what they've been paying us. I mean, this is a situation where we have a great basis in that property. It's a 14-acre property, just east of Dallas, you know, kind of looking at the city and on a, on a, on a reservoir lake. We're in it for about $105. The operator there purchased that out of a bankruptcy in 2023 and took some pretty tough terms from their counterparty, and the bankruptcy is really about trying to free up some of their financial capacity by eliminating some of the seller financing that they took. We believe that they have a good chance to do that. We're supportive. We went down and met with them in December.

Mark Decker Jr.: Yeah. They have paid. They are currently current on what they've been paying us. I mean, this is a situation where we have a great basis in that property. It's a 14-acre property, just east of Dallas, you know, kind of looking at the city and on a, on a, on a reservoir lake. We're in it for about $105. The operator there purchased that out of a bankruptcy in 2023 and took some pretty tough terms from their counterparty, and the bankruptcy is really about trying to free up some of their financial capacity by eliminating some of the seller financing that they took. We believe that they have a good chance to do that. We're supportive. We went down and met with them in December.

Uh, at this point in time, yeah.

they, they have paid, uh,

They are currently current on what they've been paying us. I mean this is a situation where

Uh, we have a great basis in that property. It's 14 acre.

property, uh, just east of, uh,

Dallas, you know, kind of looking at the city and on a, on a, on a reservoir Lake.

Uh, we're in it for about 105 bucks, the operator there, uh, purchased that out of a bankruptcy in 2023 and took some pretty tough terms from their counterparty. And the bankruptcy is really about trying to

Uh, free.

Mark Decker, Jr.: You know, this was on their menu of options, and we're working very hard to be a good collaborative partner. We would like to see them win, and if they can't win, then we'll make sure that we have a good alternative prepared. You know, it's an evolving situation. We're in close contact with them and monitoring it and doing everything we can to help them be successful.

Mark Decker Jr.: You know, this was on their menu of options, and we're working very hard to be a good collaborative partner. We would like to see them win, and if they can't win, then we'll make sure that we have a good alternative prepared. You know, it's an evolving situation. We're in close contact with them and monitoring it and doing everything we can to help them be successful.

Up some of their financial capacity by eliminating some of the seller financing that they took. So we believe that they have uh a good chance to do that. We're supportive. We went down and met with them December, you know this was

On their menu of options and and we're working very hard to be a good collaborative partner. We would like to see them.

Win. And if they can't win then,

We'll make sure that, uh, we have a good alternative.

Prepared. But, uh,

Yeah, it's a, it's an evolving situation. We're in close contact with them and monitoring it and, and doing everything we can to help them be successful.

Juan Sanabria: Thank you.

Mark Decker, Jr.: Thanks, Juan.

Mark Decker Jr.: Thanks, Juan.

Thank you.

Thanks 1.

Operator: Thank you. Our next question comes from the line of Austin Wirtzman with KeyBanc Capital Markets. Please proceed with your question.

Thank you.

Austin Wirtz: Thanks. Good morning, everyone. Mark, I was just hoping you could start by discussing, you know, when this strategy shift, discussions with the executive team and the board really started to come about?

Austin Wurschmidt: Thanks. Good morning, everyone. Mark, I was just hoping you could start by discussing, you know, when this strategy shift, discussions with the executive team and the board really started to come about?

Our next question comes from the line of Austin Wordsmith with keybanc capital markets and please proceed with your question.

Thanks. Uh, good morning everyone. Uh, Mark, I was just hoping you could start by discussing, you know, when this strategy shift—um, discussions with the executive team and the board—really started to come about.

Mark Decker, Jr.: Sure. We really started in August, using a consultant that I've used in the past called RCLCO. We put together kind of the top 10 folks at the company and our board, and we did a bit of a 360 evaluation, where we had people who don't work here tell us what they thought about the business, and we all considered it. We had really a multi-month process where we kind of beat up lots of different ideas and ultimately laid out a strategy for the board in December, which they are supportive of and helped collaborate in. We've really been at it since August and, you know, feel great about where we are relative to our plan and in that timeline.

Mark Decker Jr.: Sure. We really started in August, using a consultant that I've used in the past called RCLCO. We put together kind of the top 10 folks at the company and our board, and we did a bit of a 360 evaluation, where we had people who don't work here tell us what they thought about the business, and we all considered it. We had really a multi-month process where we kind of beat up lots of different ideas and ultimately laid out a strategy for the board in December, which they are supportive of and helped collaborate in. We've really been at it since August and, you know, feel great about where we are relative to our plan and in that timeline.

Sure, uh, we really started in, in August, uh,

using a consultant, uh,

That that I've used in the past called RC Alco. Uh, we put together kind of

top 10 Folks at the company and

And our board, and we did a bit of a 3608 evaluation where we had people who don't work here. Tell us what they thought about the business and we all

Considered it. And we had really a, a multi-month, uh, process where we kind of beat up, lots of different ideas and

ultimately laid out a strategy for the board in December, which they are supportive of and uh, and helped collaborate in and uh,

so, we've really been added since August and um,

Austin Wirtz: Helpful. You know, Bob had highlighted there's no, you know, real capital recycling that's assumed in guidance. I guess, how are you just thinking through the near-term earnings impact from executing the strategy of selling, you know, some of these legacy OM assets recycling into that development, which, you know, obviously tends to have some downtime from an earnings perspective, as well as just, you know, being able to compete, you know, on the senior side and redeploy that capital at, you know, kind of minimizing that spread versus the sales?

Austin Wurschmidt: Helpful. You know, Bob had highlighted there's no, you know, real capital recycling that's assumed in guidance. I guess, how are you just thinking through the near-term earnings impact from executing the strategy of selling, you know, some of these legacy OM assets recycling into that development, which, you know, obviously tends to have some downtime from an earnings perspective, as well as just, you know, being able to compete, you know, on the senior side and redeploy that capital at, you know, kind of minimizing that spread versus the sales?

you know feel great about about where we are relative to our our plan and in that timeline

Side and and redeploy that Capital at, you know, kind of minimizing that spread, um, versus the sales.

Mark Decker, Jr.: Yeah, I mean, I think the truth is we'd like to get through that period as soon as possible, and we'd like, you know, the market to see what we can cook up. I mean, hopefully, we can get through that sort of valley as fast as we possibly can. Again, you know, we don't get to dictate all the timing. In terms of earnings impact, I mean, as you can imagine, as we're trying to delever the business and we're selling assets, there definitely could be, there should be, there will be dilution there. We're really thinking about it like it's our own money and imagining what the best business looks like. Frankly, the returns that are available in the housing space are superior to those in outpatient medical.

Mark Decker Jr.: Yeah, I mean, I think the truth is we'd like to get through that period as soon as possible, and we'd like, you know, the market to see what we can cook up. I mean, hopefully, we can get through that sort of valley as fast as we possibly can. Again, you know, we don't get to dictate all the timing. In terms of earnings impact, I mean, as you can imagine, as we're trying to delever the business and we're selling assets, there definitely could be, there should be, there will be dilution there. We're really thinking about it like it's our own money and imagining what the best business looks like. Frankly, the returns that are available in the housing space are superior to those in outpatient medical.

Yeah. And I think that the truth is we'd like to get through that period as soon as possible. And we'd like, uh, the market to see

You know what? We can cook up. So, I mean, hopefully, we can hope we can get through that sort of value as fast as we possibly can. Um,

But again.

You know, we we don't get to dictate all the time, so.

um,

in terms of earnings impact. I mean,

as you can imagine, as we're trying to de-lever the business and

um,

And we're selling assets, there definitely could be, there should be, there will be dilution there. But, uh, we're really thinking about it like it's our own money and imagining.

Mark Decker, Jr.: We're not by any means abandoning outpatient medical, but, you know, deals are gonna compete on return.

Mark Decker Jr.: We're not by any means abandoning outpatient medical, but, you know, deals are gonna compete on return.

Uh, what the best business looks like. And, and frankly, the returns that are available in the housing, space are superior to those and outpatient medical. So,

Uh we're not by any means abandoning our patient medical, but you know, deals are going to compete on return.

Austin Wirtz: Just, you know, one more for me. You know, there's some efficiency and other savings that's outlined, you know, in the 2026 guidance. Can you discuss what that includes? Then also, you know, as you build out the senior side, I mean, how are you thinking about the asset management side of that business, given, you know, as you move along the higher acuity, you know, spectrum, the operating intensiveness of that business obviously picks up. Just curious, some of the puts and takes from an overhead perspective. Thank you.

Austin Wurschmidt: Just, you know, one more for me. You know, there's some efficiency and other savings that's outlined, you know, in the 2026 guidance. Can you discuss what that includes? Then also, you know, as you build out the senior side, I mean, how are you thinking about the asset management side of that business, given, you know, as you move along the higher acuity, you know, spectrum, the operating intensiveness of that business obviously picks up. Just curious, some of the puts and takes from an overhead perspective. Thank you.

And just, you know, 1 more for me.

Mark Decker, Jr.: Bob, do you want to-

Mark Decker Jr.: Bob, do you want to-

And there's some efficiency in other savings. That's outlined, you know, in the 2026 guidance, can you discuss what what what that includes? And then also, you know, as you build out the senior side, I mean, how are you thinking about the the asset management side of that business given, you know, as you move along the higher Acuity, you know, Spectrum. Um, the operating intensiveness of that business, obviously picks up. So just curious some of the puts and takes from a from an overhead perspective. Thank you.

Bob: Yeah. I'll start out relative to the outlook and the efficiencies in the 2026 guidance. The efficiencies are largely items that won't recur in 2026, as much as any 2025 items that won't recur in 2026. As Mark mentioned, the time we spent, you know, working through the strategy and some of the other one-off type items like that were in our 2025 numbers that won't repeat in 2026, is the primary driver.

Bob Kiernan: Yeah. I'll start out relative to the outlook and the efficiencies in the 2026 guidance. The efficiencies are largely items that won't recur in 2026, as much as any 2025 items that won't recur in 2026. As Mark mentioned, the time we spent, you know, working through the strategy and some of the other one-off type items like that were in our 2025 numbers that won't repeat in 2026, is the primary driver.

Do you want to? Yeah, I'll start out the relative to the uh to the Outlook and the efficiencies in the uh in the 2026 guidance. And and and the efficiencies are, are are largely items that won't recur in in 20226 as much as any 2025 items that won't recur in 2026 is Mark mentioned the time. We spent you know, working through the the strategy and and some of the other 1-off type items like that that are that were in our, our 2025 numbers that uh that that won't that won't repeat in 26.

Mark Decker, Jr.: To get to your question on sort of building out seniors, I mean, some of that'll be a function of how fast we're able to make investments, and it, you know, it could go slower than we want, and we want to be mindful of how we're staffed. As you know, the road's sort of littered with smart real estate people who didn't appreciate the operating intensity and leverage embedded in running a senior housing operating property. We have a lot of respect for that. I mean, it's really about picking great partners that we have confidence in and can learn from. You know, look, we don't have all the answers, and we'll learn, and we'll make some mistakes.

The primary drive.

Mark Decker Jr.: To get to your question on sort of building out seniors, I mean, some of that'll be a function of how fast we're able to make investments, and it, you know, it could go slower than we want, and we want to be mindful of how we're staffed. As you know, the road's sort of littered with smart real estate people who didn't appreciate the operating intensity and leverage embedded in running a senior housing operating property. We have a lot of respect for that. I mean, it's really about picking great partners that we have confidence in and can learn from. You know, look, we don't have all the answers, and we'll learn, and we'll make some mistakes.

And then to get to your question on, sort of, building out seniors, I mean, some of that will be—

A function of.

How fast we're able to make investments and it, you know, it could go slower than we want and we, we want to be mindful of how we're staffed.

and uh, as you know, the the road sort of littered with smart real estate people who

Didn't appreciate the operating intensity. Uh and leverage embedded in uh

In running a senior housing, offer operating property. And

We have a lot of respect for that. So I mean, it's really about picking great partners that we have confidence in and can can learn from and, you know, look we're

Mark Decker, Jr.: I think we'll make more good decisions than bad ones, but, you know, it'll be a new business line for us. We have a healthy respect for what that means, and we'll be very focused on mitigating our risk there, really through choosing partners that we vet extensively.

Mark Decker Jr.: I think we'll make more good decisions than bad ones, but, you know, it'll be a new business line for us. We have a healthy respect for what that means, and we'll be very focused on mitigating our risk there, really through choosing partners that we vet extensively.

We don't have all the answers and we'll, we'll learn, and we'll make some mistakes. I think we'll make more good decisions than bad ones, but, uh,

You know, it'll be a new business line for us. So

uh, we have a lot, a healthy respect for

For what that means, and we'll be very focused on mitigating our risk there, really through choosing.

Partners that we've had extensively.

Austin Wirtz: Thanks for the time. Thank you.

Austin Wurschmidt: Thanks for the time. Thank you.

Mark Decker, Jr.: Thank you.

Mark Decker Jr.: Thank you.

Thanks for the time. Thank you.

Thank you.

Operator: Thank you. Our next question comes from the line of Wesley Golladay, with Baird. Please proceed with your question.

Austin Wirtz: Hey, good morning, everyone. I just want to build off of Austin's last question. Maybe on the investment team, is that team for the senior side all built out now or mostly built out?

Austin Wurschmidt: Hey, good morning, everyone. I just want to build off of Austin's last question. Maybe on the investment team, is that team for the senior side all built out now or mostly built out?

Thank you. Our next question comes from the line of West validate with beard. Please proceed with your question.

Hey, good morning everyone. I just want to build off of Austin's last question. Uh, maybe on the investment team. Is that team for the senior side all built out now, or or mostly built out.

Mark Decker, Jr.: No. I mean, right now we're using our investment team. Alfonso's on the line here. He's dressed in his senior housing gear right now. I would imagine we could add to that team as we progress. We do have some relationships that reside here already, and we're working on those.

Mark Decker Jr.: No. I mean, right now we're using our investment team. Alfonso's on the line here. He's dressed in his senior housing gear right now. I would imagine we could add to that team as we progress. We do have some relationships that reside here already, and we're working on those.

No.

Uhuh. I mean, so I mean right now we're using

Our investment team Alfonso's on the line here.

he's uh,

dressed in a senior housing gear, right now, um,

But uh, I I would imagine we could add to that team.

uh, as we progress, but

uh, we do have some relationships that that are that reside here already and, uh, we're working on those

Bob: Okay. When you look at how you want to approach it, I know it's early innings, do you have a sense of how many operators you want to work with? Are you going to be more regionally focused? Will you target mainly new, I guess, developments? Would there be any potential for redevelopments? Just kind of get a little bit better sense on how you're approaching it?

Bob Kiernan: Okay. When you look at how you want to approach it, I know it's early innings, do you have a sense of how many operators you want to work with? Are you going to be more regionally focused? Will you target mainly new, I guess, developments? Would there be any potential for redevelopments? Just kind of get a little bit better sense on how you're approaching it?

Mark Decker, Jr.: Yeah, that's a great question. Right now, the operators we're focused with are, I would call them, kind of, regional or single market operators, with good track record and, generally speaking, newer assets. You know, as we said in our prepared remarks, we're focused on newer product. We believe that's a place where we can possibly differentiate. Right now.

Mark Decker Jr.: Yeah, that's a great question. Right now, the operators we're focused with are, I would call them, kind of, regional or single market operators, with good track record and, generally speaking, newer assets. You know, as we said in our prepared remarks, we're focused on newer product. We believe that's a place where we can possibly differentiate. Right now.

Okay, and then when you look at how you want to approach it, I know it's early innings, but do you have a sense of how many operators you want to work with? Are you going to be more regionally focused? Uh, will you target mainly new, new, uh, I guess, developments? Would there be any potential for redevelopments? I'm just trying to get a little bit better sense on how you're approaching it.

Yeah. Great question. It's a great question. Right? Right now, The Operators were focused with. I would call them kind of

uh,

Regional or single Market operators uh with good track record and uh generally speaking newer assets. So

as we as we said in the in our prepared, remarks we're focused on

Newer product. We believe, uh,

That's a place where we can possibly differentiate.

Gaurav Mehta: Okay.

Mark Decker, Jr.: It's, the answer to your question is few and as good as possible, but obviously, if we can get some size, I mean, it would be great to have a stable of operators that we can share ideas with across and so forth. You know, that's ambition today.

Mark Decker Jr.: It's, the answer to your question is few and as good as possible, but obviously, if we can get some size, I mean, it would be great to have a stable of operators that we can share ideas with across and so forth. You know, that's ambition today.

But right now, the answer to your question is, it is few and as good as possible. But obviously, if we can get some size, I mean, it would be great to have a stable of operators that we can share ideas with across, and so forth. But—

You know that's uh, that's ambition today.

Gaurav Mehta: Okay. Thanks for the time.

Mark Decker, Jr.: Thank you.

Mark Decker Jr.: Thank you.

Okay, thanks for the time.

Thank you.

Operator: Thank you. Our next question comes from the line of Gaurav Mehta with Alliance Global Partners. Please proceed with your question.

Thank you.

Gaurav Mehta: Yeah, thank you. Good morning. I wanted to ask you on the portfolio allocation as you build your shop, active adult portfolio, how would the allocation look like between medical office and the housing part?

Our next question comes from the line of gurav meta with Alliance Global Partners. Please receive with your question.

Yeah, thank you. Good morning. I I wanted to ask you on the portfolio, allocation, as you build, your shop, active adult portfolio, how would the allocation look like between medical office and, and the and housing part?

Mark Decker, Jr.: Yeah, that's a great question. I mean, some of that'll be and good morning. Thanks, thanks for the question, Gaurav. A lot of that's gonna be dictated by the opportunity set, so we don't have, like, a pie chart in mind that we're gonna manage to. We're gonna manage to the opportunities, and be somewhat opportunistic there. You know, active adult, in particular, sort of quote-unquote, "modern active adult," which has kind of really only been around for 10 years or so, is a relatively small niche. The hunting grounds in seniors, much, much larger. We really like that active space. We'll see. I mean, I, I wouldn't hazard a guess, to be honest.

Mark Decker Jr.: Yeah, that's a great question. I mean, some of that'll be and good morning. Thanks, thanks for the question, Gaurav. A lot of that's gonna be dictated by the opportunity set, so we don't have, like, a pie chart in mind that we're gonna manage to. We're gonna manage to the opportunities, and be somewhat opportunistic there. You know, active adult, in particular, sort of quote-unquote, "modern active adult," which has kind of really only been around for 10 years or so, is a relatively small niche. The hunting grounds in seniors, much, much larger. We really like that active space. We'll see. I mean, I, I wouldn't hazard a guess, to be honest.

Yeah, that's a great question. I mean some of that will be predict and good morning. Thanks thanks for the question grow up. Uh,

A lot of that's going to be dictated by the opportunity set so we don't have like a pie chart in mind that we're going to manage to. We're going to manage to

The opportunities. Um,

And and be somewhat opportunistic there. But uh, you know, active adult in particular, sort of quote, unquote, modern active adult,

Which is kind of really only been around for 10 years or so, is a relatively small niche.

Uh,

the, the hunting grounds in seniors much, much larger, but, um,

But we really like that Active Space.

Uh, so we'll see. I mean, I—I...

I wouldn't have to guess to be honest.

Gaurav Mehta: Okay. I guess, you know, for the acquisitions, should we expect primarily to be focused on shop, or would you be open to medical office as well?

Okay. And and I guess, you know, uh, for the Acquisitions, uh, should we expect primarily to be focused on shop or, or would you be open to Medical Offices as well?

Mark Decker, Jr.: I mean, as we said earlier, like, everything competes on return. Today, shop is winning that competition.

Mark Decker Jr.: I mean, as we said earlier, like, everything competes on return. Today, shop is winning that competition.

uh, I mean

As we said earlier, like, everything competes on return, and today, shop is winning that.

Competition.

Gaurav Mehta: Okay. I guess, what are cap rates like on shop versus medical office?

Okay? And and I guess, you know what, our cap is like on shop versus medical office

Mark Decker, Jr.: I think cap rates are actually pretty similar. It's the character of the forward-looking growth that's much different. Call it ±6 on forward going in, but one has 2% to 3% growth and one has, you know, 4 to 8, and some really sustainable headwinds or excuse me, tailwinds.

Mark Decker Jr.: I think cap rates are actually pretty similar. It's the character of the forward-looking growth that's much different. Call it ±6 on forward going in, but one has 2% to 3% growth and one has, you know, 4 to 8, and some really sustainable headwinds or excuse me, tailwinds.

I I got cap rate, they're actually pretty similar. It's the it's the character of the forward-looking growth, that's much different

So, call it.

Plus, or minus 6.

gone forward going in but 1 has 2 to 3% growth and 1 has

you know, 4 to 8.

and some really sustainable headwinds, or excuse me, tailwind

Gaurav Mehta: All right. Understood. Thanks for taking my questions.

Mark Decker, Jr.: Yeah, thank you. It's our pleasure.

Mark Decker Jr.: Yeah, thank you. It's our pleasure.

All right, understood. Thanks for taking my questions.

Yeah, thank you. It's our pleasure.

Operator: Thank you. Our next question comes from the line of Juan Sanabria with BMO Capital Markets. Please proceed with your question.

Thank you.

Our next question comes from the line of 1 is in a Brio with BMO Capital markets. Please receive your questions.

Juan Sanabria: Thanks. Could get it out. Just curious on the active adult, I think one of the prior callers had a question with regards to how we should be thinking about your entry there. I mean, development historically is a drag until the asset lease is up, although I recognize the leaseup is a lot shorter than in seniors' housing. Are you guys getting a preferred return on the capital you're investing to kind of bridge the gap until the asset can start to cash flow? Or just how are you thinking about that segment of the opportunity set with active adult?

Thanks.

Um, just curious on, on the active adult. Um,

I think 1 of the prior um, callers had a question with regards to how we should be thinking about your, your entry there. I mean, development, historically is a drag until the asset leases up. Although I recognize the lease at this,

A lot shorter than in seniors housing. But are you guys getting a preferred return on the capital? You're investing to kind of bridge the gap until the asset can start to cash flow or just. How are you thinking about?

Mark Decker, Jr.: Yeah. Well, welcome back, Juan. We're glad to have you, and we love the curiosity. The answer to your specific question on this first opportunity in Minneapolis is no, we are not getting a preferred return. However, that would be our goal in the future. That situation was an interesting one. They were under construction already, so, and they preferred a 50/50 scheme, so we went with it. It was a relatively low dollar amount. You know, did some of this in Centerspace where we had just kind of a build to core strategy, if you will, where we employed a preferred element, and we would endeavor to do that again here.

Mark Decker Jr.: Yeah. Well, welcome back, Juan. We're glad to have you, and we love the curiosity. The answer to your specific question on this first opportunity in Minneapolis is no, we are not getting a preferred return. However, that would be our goal in the future. That situation was an interesting one. They were under construction already, so, and they preferred a 50/50 scheme, so we went with it. It was a relatively low dollar amount. You know, did some of this in Centerspace where we had just kind of a build to core strategy, if you will, where we employed a preferred element, and we would endeavor to do that again here.

That segment of the opportunity to set with active adult.

Yeah, well, welcome back Juan, we're glad glad to have you and we'd love the Curiosity. Uh,

Yeah, the the answer to your specific question on this first uh, opportunity in Minneapolis is no. We are not getting a preferred return. However

um,

That would be our our goal in the future. That situation was an interesting 1. They were actually they were under construction already. So

um and they preferred a 50/50 scheme. So, uh,

We went with it, it was a relatively low dollar amount. So, um, you know, did some of this at Center space where we had kind of a

Build core strategy. If you will, where we employed,

Mark Decker, Jr.: I would expect you to see more of that, and obviously, we'll be mindful of sort of overall sizing of that loan book, if you will, and risk.

Mark Decker Jr.: I would expect you to see more of that, and obviously, we'll be mindful of sort of overall sizing of that loan book, if you will, and risk.

Um, a preferred element and and we would Endeavor to do that again here. So I I I would expect you'd see more.

Of that. And obviously, we'll be mindful sort of overall sizing of uh

Of that loan book, if you will and risk.

Juan Sanabria: The medical office, there was a Steward Health Care bankruptcy last year, and you took some vacancy. That was an opportunity as you inlet that space. Just curious on the update on kind of the opportunity there and how much has been backfilled and how that has contributed or could contribute to growth in the core business today.

Um, and, and then you the, um, the medical office too. There's a Stuart bankruptcy last year and he took some vacancies. That was an opportunity as you we left that space. So, just curious on the update on

Has been.

That filled and and how that has contributed or contributed to growth in the core business today.

Mark Decker, Jr.: Yeah, the Steward piece is really resolved. It was really that CHRISTUS, what is now the CHRISTUS asset, the Beaumont asset that we talked about disposing of. It might have been one other small lease, but it's not material from any.

Mark Decker Jr.: Yeah, the Steward piece is really resolved. It was really that CHRISTUS, what is now the CHRISTUS asset, the Beaumont asset that we talked about disposing of. It might have been one other small lease, but it's not material from any.

Yeah. This the steward piece is really resolved. It it was, it was really that. Chris. What is now the Chris this asset the The Bowman asset that we talked about

um,

Gaurav Mehta: There are two other small leases. Nothing significant.

Mark Decker, Jr.: Yeah. We have Prospect, which is still going. Our East Orange asset has been affected by that materially. That's one we're still working out.

Mark Decker Jr.: Yeah. We have Prospect, which is still going. Our East Orange asset has been affected by that materially. That's one we're still working out.

Disposing of it. It might have been 1 other small lease but it's not material from any other. Yeah, there were 2 other small leases nothing too.

And then we have Prospect, which is, uh,

Still going. So that's our e store and asset. Uh,

Has been affected by that material. Um, so that's one. We're still working out.

Juan Sanabria: Okay.

Mark Decker, Jr.: The two hospitals.

Mark Decker Jr.: The two hospitals.

Okay. And

Juan Sanabria: The upside is still to come for Prospect?

Mark Decker, Jr.: I'm sorry, Juan. Say that again. Forgive me.

Mark Decker Jr.: I'm sorry, Juan. Say that again. Forgive me.

Juan Sanabria: No, I'm sorry. I was gonna ask, the Prospect, that upside is still to come, if you are able to backfill that?

No, I'm sorry. The I was going to ask the prospect that upside is still to come if if you are able to backfill that

Mark Decker, Jr.: Correct, yeah, that would show up today as negative NOI.

Mark Decker Jr.: Correct, yeah, that would show up today as negative NOI.

Correct. Yeah, that would show up today as negative. Noi

uh,

Wesley Golladay: Okay. Last question for me, anything on the watch list to call out over and above the White Rock?

Okay. And then, and, and last question for me, anything on the watch list to call out over and above the, the White Rock?

Mark Decker, Jr.: No. No, I mean, in the, in the past, White Rock would have been the one when people asked us about watch lists, that was kind of top of mind. Again, That's a great entrepreneurial group. We're in good touch with them. We believe in their ability to be successful, but there's nothing past them that we're spending a lot of time on right now.

Mark Decker Jr.: No. No, I mean, in the, in the past, White Rock would have been the one when people asked us about watch lists, that was kind of top of mind. Again, That's a great entrepreneurial group. We're in good touch with them. We believe in their ability to be successful, but there's nothing past them that we're spending a lot of time on right now.

Uh, no no. I mean in the in the past White Rock would have been the 1 when people asked us about watch lists, that was

Kind of top of mind. And again, we're—

That's a great entrepreneurial group; we're in, we're in good touch with them. We, we believe in their ability to be successful, but there's nothing past them that, uh,

we're spending a lot of time on right now.

Wesley Golladay: That's it for me. Thank you, and good luck with everything.

Mark Decker, Jr.: Thanks, Juan.

Mark Decker Jr.: Thanks, Juan.

That's it for me. Thank you. And good luck with everything.

Thanks 1.

Operator: Thank you. We have reached the end of the question and answer session, and I'll now turn the call back over to CEO, Mark Decker, for closing co-comments.

Thank you. And we have reached the end of the question and answer session and I'll I'll turn the call back over to CEO, Mark Decker for closing comments.

Mark Decker, Jr.: Thanks very much. Well, thanks, everyone, for your time and attention and look forward to talking to you next quarter.

Mark Decker Jr.: Thanks very much. Well, thanks, everyone, for your time and attention and look forward to talking to you next quarter.

Uh, thanks very much. Well, thanks, everyone, for your time and attention, and, uh, look forward to talking to you next quarter.

Operator: Thank you. This concludes today's conference. You may disconnect your lines at this time. Thank you for your participation. Have a great day.

Thank you. And this concludes today's conference and you may disconnect your lines at this time. Thank you for your participation have a great day.

Q4 2025 Chiron Real Estate Inc Earnings Call

Request a DemoDemo

XRN

Chiron Real Estate

Earnings