Chiron Real Estate Inc.

Chiron Real Estate Inc. reported second quarter 2026 net income attributable to common stockholders of $63.3 million, or $4.78 per diluted share, reversing a $0.8 million loss a year earlier, even as funds from operations slipped to $0.88 per share from $0.98 and core FFO fell to $1.04 from $1.14. The healthcare landlord closed its first-ever senior housing operating acquisitions in June, paying $249 million for The Landing and The Riviera, two newly built luxury communities in Alexandria, Virginia's Potomac Yard submarket, with management expecting a double-digit unlevered return. The Landing was 93% occupied at quarter-end and 96% by July 31, while The Riviera, which opened in March, was just 23% occupied at quarter-end and 26% by July 31, and management does not expect either community to hit a stabilized yield on cost above 7% until the second half of 2028. Leverage fell to 39.9% of total gross assets from 44.7% three months earlier after Chiron sold seven inpatient rehabilitation facilities for $217 million at a 7.3% exit cap rate, and the company has no debt maturities in 2026 or 2027, with 78% of its $633.1 million in debt fixed-rate. White Rock Medical Center, a tenant at Chiron's Dallas, Texas facility, filed a modified reorganization plan on July 17 and intends to affirm its lease, though Chiron says no assurance holds, and the company raised $100 million through 6.00% Series C convertible preferred stock while $350 million of matured interest rate swaps that had capped borrowing costs at 1.36% rolled into new swaps fixing that rate at 3.29%.

Chiron Real Estate reported second-quarter results as it continues to reposition its portfolio toward senior housing and away from outpatient medical real estate. The company invested $421 million in senior housing during the quarter, including a $100 million Maewyn investment and the acquisition of two senior housing communities in Alexandria, Virginia, while selling seven inpatient rehabilitation facilities for about $200 million in gross proceeds. Normalized same-store net operating income rose 1.7%, Core FFO was $1.40 per share and unit, and net debt to adjusted EBITDA improved to 6.0 times. Management highlighted new senior-housing executive appointments and a growing investment pipeline focused on stabilized communities, as it seeks to address what it views as undervaluation of its legacy medical portfolio.

Chiron Real Estate has completed the sale of seven inpatient rehabilitation facilities to a joint venture with a U.S. public pension fund advised by a global real estate investment management firm. The initial portfolio was valued at $217 million, with the investor acquiring an 85% equity interest and Chiron retaining a 15% stake. Chiron will continue managing the joint venture and the assets, earning a management fee. The properties total 456,000 square feet, are fully leased, and have an average remaining lease term of eight years. Proceeds from the transaction will be used to fund Chiron's investment pipeline, including the previously announced Pinnacle North Bethesda acquisition for about $176 million, expected to close on or before October 2026.