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Nov 4, 2026, 4:41 PM ETReal Estate

Chiron Real Estate Inc. — Third Quarter 2026 Earnings Summary

XRNCHIRON REAL ESTATE INC
Source

Financial Performance

  • Reported a quarterly net loss attributable to common stockholders of $8.9 million ($0.67 per share), compared to a net loss of $6.0 million ($0.45 per share) in the prior year period.
  • Reported quarterly Funds From Operations (FFO) of $0.50 per share and unit, down from $1.00 per share and unit in the comparable prior year period.
  • Reported quarterly Core FFO of $0.75 per share and unit, down from $1.12 per share and unit in the comparable prior year period.
  • Total revenue for the quarter was $40.3 million, up from $37.2 million in the prior year period.
  • General and administrative expenses were $7.7 million for the quarter, compared to $4.9 million in the prior year period.
  • Consolidated debt outstanding was $661.7 million as of September 30, 2026, with a leverage ratio of 41.2% of total gross assets, up from 39.9% as of June 30, 2026.
  • Total debt carried a weighted average interest rate of 4.5% and a weighted average remaining term of 3.4 years, with 75% fixed-rate debt.
  • The company has no debt maturities scheduled for 2026 or 2027.

Guidance and Future Outlook

  • Management expects stabilization at a yield-on-cost of greater than 7% for The Riviera in the second half of 2028.
  • Management expects stabilization at a yield-on-cost of greater than 7% for The Pinnacle in 2029.
  • The cure amount of approximately $2.6 million related to the White Rock Medical Center lease affirmations is payable over time from available cash generated by hospital operations, with any remaining balance due no later than five years following the effective date.

Business Segments and Product Lines

  • Seniors Housing Operating Portfolio (SHOP): Comprised two communities (292 homes) at September 30, 2026; increased to three communities (467 homes) following the October 2026 acquisition of The Pinnacle.
    • The Landing averaged 95.1% occupancy for the quarter, an increase of 1.8% from June 30, 2026.
    • The Riviera averaged 25.6% occupancy for the quarter, an increase of 2.3% from June 30, 2026; opened in March 2026.
    • The Pinnacle had spot occupancy of 30.9% as of September 30, 2026, up from 5.1% as of June 30, 2026; opened in June 2026.
  • Outpatient Medical Portfolio:
    • Third quarter same-property cash net operating income (Same-Property Cash NOI) growth was +1.6% year-over-year.
    • Portfolio comprised 4.6 million leasable square feet, $101 million of annualized Cash NOI, a weighted average lease term (WALT) of 4.6 years, weighted average annual base rent escalations of 2.2%, and a 93.6% leased occupancy rate.
    • The Company is actively pursuing the disposition of this portfolio and has engaged a broker.

Market and Competitive Landscape

  • Management noted strength in the market for high-quality medical office assets and a high level of investor interest.
  • The Company is building a growing pipeline of attractive investment opportunities to position for long-term growth.

Risks and Challenges

  • The Company recognized a loss on sale of $0.3 million from the disposition of an administrative asset in Vernon, Connecticut.
  • The Company incurred $2.0 million in severance and transition-related expenses associated with its strategic pivot to Seniors Housing.
  • Forward-looking statements regarding earnings, liquidity, tenant payment ability, future dividends, interest rates, and acquisition/disposition timing are subject to risks and uncertainties that could cause actual results to differ materially.

Management Commentary and Tone

  • CEO Mark Decker, Jr. stated the Company continues to make meaningful progress executing its strategy, specifically monetizing the outpatient medical portfolio.
  • Management expressed encouragement regarding the strength of the market for high-quality medical office assets.
  • Management indicated a focus on thoughtfully redeploying capital to drive long-term growth.

Other Key Points

  • Acquisitions:
    • Completed acquisition of The Pinnacle (175-home luxury seniors housing community in North Bethesda, Maryland) in October 2026 for $173.2 million.
    • Acquired a land parcel zoned for seniors housing in Reston, Virginia, in September 2026 for $15.4 million.
  • Dispositions:
    • Completed disposition of an administrative asset in Vernon, Connecticut, in September 2026 for gross proceeds of $1.9 million.
  • Investments:
    • Completed initial funding of a $2.2 million mezzanine loan (Daleville) in July 2026.
  • Restructuring:
    • Bankruptcy court approved White Rock Medical Center LLC's plan of reorganization in September 2026, affirming the Company's leases.
    • A one-for-five reverse stock split was effective September 19, 2025, with all share and per share data adjusted to reflect this.
  • Capital Structure:
    • Preferred stock liquidation preference increased to $228.875 million at September 30, 2026, from $128.875 million at December 31, 2025.
    • Total equity was $680.2 million as of September 30, 2026, compared to $530.1 million as of December 31, 2025.