Chiron Real Estate Inc. Announces Q4 and Full Year 2025 Results, Sets 2026 Strategic Objectives, and Changes Dividend Policy

Key Highlights for Investors

• Corporate Rebrand Completed: The company has completed a significant rebranding, signaling a strategic transformation underway since mid-2025.
• Dividend Policy Change: Chiron will move from quarterly to monthly dividend payments, aiming for more consistent income for shareholders.
• 2026 Core FFO Guidance Announced: Full-year 2026 Core Funds From Operations (FFO) guidance is set at \$4.30 to \$4.45 per share and unit.
• Reverse Stock Split: All share and per-share data have been restated to reflect a 1-for-5 reverse split effective September 19, 2025.

Financial Performance

Fourth Quarter 2025

• Net Result: Reported a net loss attributable to common stockholders of \$7.4 million, or \$0.55 per diluted share, versus net income of \$1.4 million (\$0.10 per share) a year earlier. This swing reflects an impairment charge and asset sale losses.
• FFO: Funds from operations rose to \$0.97 per share and unit, up 26% year-over-year. Core FFO was \$1.16 per share and unit, up 6.4% year-over-year.
• Same-Property Cash NOI: Grew 5.4% year-over-year, indicating improved operating performance in stabilized properties.
• Occupancy: Year-end leased occupancy stood at 96.0%.

Full Year 2025

• Total Revenue: \$148.2 million, up from \$138.8 million in 2024.
• Net Loss: \$(12.1) million, or \$(0.91) per diluted share, compared to \$0.81 million net income in 2024.
• FFO: \$3.97 per share and unit, up from \$3.76 in 2024. Core FFO was \$4.53 per share and unit (2024: \$4.44).

Capital and Investment Activity

• Share Repurchases: Repurchased 175,634 shares at an average price of \$34.16, totaling \$6.0 million. The \$50 million Stock Repurchase Program remains active.
• Preferred Stock Offering: Completed a \$51.3 million public offering of 2,050,000 shares of 8.00% Series B Cumulative Redeemable Preferred Stock.
• Credit Facility Amendment: Extended the \$400 million revolver to October 2029 (with options to 2030) and restructured the \$350 million Term Loan A into three tranches. The SOFR credit spread adjustment was removed. Forward-starting interest rate swaps will fix Term Loan A rates at a weighted average of 4.80% from May 2026. No debt maturities are due in 2026 or 2027.
• Dispositions: Sold two facilities for \$11.3 million, resulting in a \$0.4 million aggregate loss and a \$6.7 million impairment charge (notably on Melbourne, FL property).
• New Investment: Invested \$7.1 million for a 49% stake in a 132-unit active adult residential joint venture in the Minneapolis, MN area.

Portfolio and Balance Sheet

• Portfolio Size: 5.1 million leasable square feet, \$119.1 million annualized Cash NOI, weighted average lease term of 5.2 years, and 2.1% average annual base rent escalations.
• Debt and Leverage: \$653.9 million in consolidated debt, leverage at 44.4% (down from 47.3% in Q3 2025), average interest rate 3.74%, average remaining term 4.1 years, with 75% of debt being fixed-rate.
• Liquidity: \$220 million borrowing capacity under the credit facility as of February 24, 2026.

Dividend Details

• Common Dividend: Annual rate of \$3.00 per share (unchanged), to be paid monthly; \$0.25/share declared for each of April, May, and June 2026.
• Preferred Dividends: Series A: \$0.46875 per share quarterly (payable April 30, 2026); Series B: \$0.50 per share quarterly (payable April 30, 2026).

Noteworthy Operational and Strategic Developments

• Active Adult Housing Initiative: First investment in the active adult sector, signaling portfolio diversification into senior/luxury housing.
• Tenant Bankruptcy: White Rock Medical Center, LLC, tenant at a Dallas acute-care hospital, filed for Chapter 11 on January 20, 2026. Chiron has a net receivable of ~\$1.4 million related to rent and property tax support. Lease is expected to be affirmed, but recovery of owed amounts is not assured—this is a potential risk factor.
• Annual Meeting: Scheduled for May 20, 2026 (virtual); record date is March 25, 2026.
• Investor Presentation: Detailed strategic objectives and recent actions available on the company’s website, underscoring focus on optimizing performance and sustainable growth.

2026 Guidance and Outlook

• Core FFO Guidance: \$4.30–\$4.45 per share and unit for 2026, based on no additional acquisitions/dispositions or equity/debt issuances beyond announced plans. Guidance is subject to change based on market and operational conditions.

Conference Call

Management will host a webcast and call on February 26, 2026, at 9:00 a.m. ET. Dial-in: 1-877-704-4453 (Domestic), 1-201-389-0920 (International). A replay will be posted on the company website.

Potential Price-Sensitive and Material Information for Shareholders

• Change to Monthly Dividends: This may attract new income-focused investors and could impact share valuation due to improved cash flow predictability.
• Tenant Bankruptcy at Major Property: The White Rock Medical Center’s bankruptcy introduces risk regarding rent collections and asset value. The outcome could influence future earnings and asset performance.
• New Sector Investment: The entry into the active adult housing market represents a strategic shift and possible growth avenue.
• Credit Facility Improvements: Extension and improved terms may reduce refinancing risk and interest expenses over the coming years.
• Share Repurchases and Preferred Equity Issuance: These capital actions could affect the stock’s supply/demand dynamics and support the share price.
• Impairments and Asset Sales: The significant impairment charge and net losses on dispositions may impact near-term earnings sentiment.

Disclaimer: This article is for informational purposes only and does not constitute investment advice or a recommendation to buy or sell any security. Investors should conduct their own due diligence and consider consulting with a financial advisor before making investment decisions. All forward-looking statements are subject to risks, assumptions, and uncertainties, as outlined in Chiron Real Estate Inc.’s public filings.

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