Strictly Confidential 1

Pitch Book January 2018 Strictly Confidential 2 Disclaimer

This document may contain “forward-looking” statements as defined in the Private Securities Litigation Reform Act of 1995. These forward-looking statements concern and are based upon, among other things, the possible expansion of the company’s portfolio; the sale of properties; the performance of its operators/tenants and properties; its ability to enter into agreements with new viable tenants for vacant space or for properties that the company takes back from financially troubled tenants, if any; its occupancy rates; its ability to acquire, develop and/or manage properties; the ability to successfully manage the risks associated with international expansion and operations; its ability to make distributions to shareholders; its policies and plans regarding investments, financings and other matters; its tax status as a real estate investment trust; its critical accounting policies; its ability to appropriately balance the use of debt and equity; its ability to access capital markets or other sources of funds; its ability to meet its earnings guidance; and its ability to finance and complete, and the effect of, future acquisitions. When the company uses words such as “may,” “will,” “intend,” “should,” “believe,” “expect,” “anticipate,” “project,” “estimate” or similar expressions, it is making forward-looking statements. Forward- looking statements are not guarantees of future performance and involve risks and uncertainties. The company’s expected results may not be achieved, and actual results may differ materially from expectations. This may be a result of various factors, including, but not limited to: material differences between actual results and the assumptions, projections and estimates of occupancy rates, rental rates, operating expenses and required capital expenditures; the status of the economy; the status of capital markets, including the availability and ; issues facing the healthcare industry, including compliance with, and changes to, regulations and payment policies, responding to government investigations and punitive settlements and operators’/tenants’ difficulty in cost-effectively obtaining and maintaining adequate liability and other insurance; changes in financing terms; competition within the healthcare, seniors housing and life science industries; negative developments in the operating results or financial condition of operators/tenants, including, but not limited to, their ability to pay rent and repay loans; the company’s ability to transition or sell facilities with profitable results; the failure to make new investments as and when anticipated; acts of God affecting the company’s properties; the company’s ability to re-lease space at similar rates as vacancies occur; the failure of closings to occur as and when anticipated, including the receipt of third-party approvals and healthcare licenses without unexpected delays or conditions; the company’s ability to timely reinvest sale proceeds at similar rates to assets sold; operator/tenant or joint venture partner bankruptcies or insolvencies; the cooperation of joint venture partners; government regulations affecting Medicare and Medicaid reimbursement rates and operational requirements; regulatory approval and market acceptance of the products and technologies of life science tenants; liability or contract claims by or against operators/tenants; unanticipated difficulties and/or expenditures relating to future acquisitions and the integration of multi-property acquisitions; environmental laws affecting the company’s properties; changes in rules or practices governing the company’s financial reporting; the movement of U.S. and foreign currency exchange rates; and legal and operational matters, including real estate investment trust qualification and key management personnel recruitment and retention. Finally, the company assumes no obligation to update or revise any forward-looking statements or to update the reasons why actual results could differ from those projected in any forward-looking statements. Strictly Confidential 3 Leadership

Visionary leader and Experience creative strategist Over 10 years of experience in real estate with extensive experience in offering 20 years of acquisitions, accounting, asset management, operational business experience driving development and creating policy specific to REIT’s. sound financial decisions and Prior roles with Global Medical REIT (NYSE: GMRE), Washington REIT (NYSE: corporate governance WRE) and Quantum Real Estate Management. in executive-level roles.

Donald McClure President Strictly Confidential 4 Executive Summary

Capitol CRE is a Experience 3 Year Performance Highlights private commercial Capitol CRE specializes in self • Completed over $350 million in healthcare real estate transactions. real estate firm based managed fully-integrated healthcare real estate that acquires, owns • Collaboratively raised $150M from a in the Washington 2016 IPO listed on the NYSE and/or finances real estate D.C metropolitan properties that are leased to • Sourced Angel Funding, mortgage hospitals, doctors, healthcare debt and CMBS loans combined with a area. Founded in $250M line of credit through 2012, Capitol CRE systems or other healthcare service syndicated banking relationships. providers located in geographic areas • Acquired 1.2M sq. ft. consisting of 53 provides trusted primarily outside of major MSA’s. quality investment transactions Net Leased to 41 tenants opportunities. Investment Strategy Opportunity Focus on the acquisition of licensed, Now is an exciting time in the state-of-the-art, purpose-built transformation of the U.S. healthcare healthcare facilities and the leasing market, and more specifically the of these facilities to leading clinical U.S. healthcare real estate market. operators with dominant market share. We intend to produce increasing, reliable rental revenue by leasing each of our healthcare facilities to a single market-leading operator under a long-term triple-net lease. Strictly Confidential 5 Industry Overview

Tailwinds Investment Healthcare reform and policy has led to specialty healthcare playing a Philosophy significant role in this current political environment. Issues from the ACA repeal efforts to payment reform to the demographic growth of the Medicare Capitol CRE is population. This rapid change has bred a entirely new strategy in healthcare investing outside of delivery and transactions. No matter how healthcare policy changes on the Hill major MSA’s where we the delivery of care by providers and systems will continue to be based on can develop strategic alliances with patient focused care, quality outcomes and lower cost. financially sound healthcare providers that offer high quality healthcare services in sustainable non-urban Headwinds markets. We believe healthcare providers will need to invest a significant amount of capital in non-urban areas over the next several decades in order to provide lower cost healthcare in the patients’ local communities than they can by transporting the non-urban population to high cost urban centers, and ramp up their services as there are natural population increases in the non urban areas and as the Affordable Care Act brings more of the non-urban population base into some type of insurance coverage. Strictly Confidential 6 Experience

Healthcare focused Experience M&A continues to be From 2014 to present Capitol CRE principles have completed over $350 million in robust often driving healthcare real estate acquisitions. These acquisitions have consisted of high quality higher valuations. purposed built healthcare facilities. Over 50 facilities the majority of which are NNN sales leaseback transactions covering over 1 million sq. ft. of Class A space. While REITs are pursuing portfolio deals. We have discovered that a focus on the lower Ownership Profile middle market acquisition of NNN Acute Care/SNFs Debt Equity sales leaseback Traditional Rehab Angel Funding healthcare assets Hospital Mortgage provides untapped Convertible Purpose CMBS returns. Built Debenture Medical Capital Office LOC Surgery Markets Center Investor Notes Op Units Strictly Confidential 7 Untapped Opportunity

There is an enormous Our Difference market outside of To allow healthcare providers to leverage their real estate assets to redirect the subsequent Major MSA. cash infusion to be utilized in the development of the physician group practice, building Healthcare groups in maintenance, lease escrows, furthering community healthcare and improving operational non-urban areas that resources. We can generate greater returns than REITs due to lower operational cost, greater deal flexibility combined with the elimination of capital market volatility. Sourcing have the population off market transactions allows for preserved with significantly less competition for and hospital affiliation these Non-Urban assets from existing REITs and institutional buyers than for comparable support that allows assets in urban areas, thereby increasing the potential for attractive risk-adjusted returns. community based • Tenant • Higher Cap • Long Term providers to be very Focused Deals Leases successful. Capitol CRE • Off-Market • Rent • Built in has identified and • Non-Urban Escalations Renewal • Outside of • Lower • High Barrier capitalized on these Major MSAs Operational to Entry properties through the Cost use of innovative

strategies sourcing off

Acquisition Acquisition Returns market and brokered Appreciation transactions. This model has been proven through management experience and effective strategic implementation. Strictly Confidential 8 Acquisition Criteria

We intend to continue to grow our portfolio of Market Preference healthcare properties primarily through ❖ High Barrier to entry / limited competition ❖ Strong Employment Base acquisitions of non-urban healthcare facilities ❖ Population Demographics that provide stable revenue growth and ❖ Sale-leaseback transactions predictable long-term cash flows. ❖ Secondary and Tertiary markets across the U.S.

Acquisition ❖ Purpose-built real estate Tenant ❖ Prominent local physicians ❖ Patient loyalty and strong ❖ Strong EBITDARM / rent ❖ $1M – $10M ❖ Demonstrated clinical leaders market share coverage ❖ Campus Setting ❖ High market share ❖ Focus on the future of ❖ Guarantors with strong credit ❖ Predictable, stable rents ❖ Stable and competent healthcare ❖ Subordination of profits to management ❖ Strong and diversified payor ❖ Rent coverage in excess of rent mix ❖ Robust and durable payor peers ❖ Operators with regional or contracts ❖ Long term lease terms national footprint

Acquisition Entry and Exit Longs and Shorts We are seeing cap rates in the range of 5% to 7% on average across the REIT market. We feel very strongly that we can We are Bullish on Healthcare despite uncertainties with acquire in the range of $1M to $10M and achieve a bended the ACA there is continued compelling reasons to invest in rate upwards of 9% delivering a respectful ROI. This combined US Healthcare given the fact that it accounts for a large with sound will provide for multiple exits. portion of the GDP. Historical good returns, aging Replacing Equity with traditional mortgage, long term equity population and healthcare demand continues to rise. and M&A portfolio sale to REITs or Institutional Investors. Strictly Confidential 9 Pipeline

The number one most LOI/Contract Activity important item of We maintain a pipeline of approximately $100M in active deals in order to deploy proceeds focus is to build from investment efficiently thereby providing immediate returns. accretive pipeline. Projected Average ROI (%) Without revenue producing deals Fund Category # Deals 1 Year 3 Years 5 Years returns can’t be $1M - $5M 10 15% 17% 20% generated. $5M - $10M 4 13% 15% 17%

$10M - $15M 2 12% 14% 16%

$15M - $20M 1 10% 12% 14%

$25M - $30M 0 8% 10% 12%

$30M - $50M 0 6% 8% 10%

Note: Number of Deals represent deals under LOI or Contract during the period Strictly Confidential 10 Sample Case Study

Investment Summary Asset Type: Surgery Center Lease Expiration: 2028 Leasable Area: 20,000 Purchase Price: $6M Rent Coverage: 5x Cap Rate: 9%

Acquisition Criteria ➢ Development First right of refusal from practice growth ➢ Facility was developed in 2012 - 6 years ➢ Purpose Built for Specialty practice with CON ➢ Class A property ➢ Stable Local / Economic demographics Results Tenant Criteria Implied Revenue* Est. ROI Cap ➢ New single tenant 10 year NNN lease with renewal options

Acquisition $540K 9.0% ➢ AA2/AA rated Tenant guarantee

Year 1 $556K 13% 9.3% ➢ Subordination of profit and distributions to rent payment

Year 2 $573K 14% 9.5% ➢ Excellent rent coverage EBITDARM/Rent

Year 3 $590K 15% 9.8% ➢ Lease Net Worth , Minimum liquidity and capital reserve covenants Year 4 $608K 16% 10.1%

* Annual Rent Increase 3% Strictly Confidential 11 M&A Deal Activity Strictly Confidential 12 Top Healthcare Systems

Adventist Health (Roseville, Calif.). Genesis Health System (Davenport, Iowa). Ochsner Health System (New Orleans). Adventist Health System (Altamonte Springs, Fl.). Greenville (S.C.) Health System. OhioHealth (Columbus). Advocate Health Care (Oak Brook, Ill.). Gundersen Health System (La Crosse, Wis.). OSF HealthCare (Peoria, Ill.). Alegent Creighton Health (Omaha, Neb.). HCA Midwest Health System (Kansas City, Mo.). Palmetto Health (Columbia, S.C.). Ascension Health (St. Louis) Health First (Rockledge, Fla.). Partners HealthCare (Boston). Aurora Health Care (Milwaukee). Henry Ford Health System (Detroit). Presbyterian Healthcare Services (Albuquerque, N.M.). Avera Health (Sioux Falls, S.D.). Indiana University Health (Indianapolis). ProMedica (Toledo, Ohio). Banner Health (Phoenix). Inova Health System (Falls Church, Va.). Providence Health & Services (Renton, Wash.). Baptist Health Care (Pensacola, Fla.). Intermountain Healthcare (Salt Lake City). Riverside Health System (Newport News, Va.). Baptist Health South Florida (Coral Gables). Jackson Health System (Miami). Rochester (N.Y.) General Health System. Bassett Healthcare Network (Cooperstown, N.Y.). Kaiser Permanente (Oakland, Calif.). Roper St. Francis Healthcare (Charleston, S.C.). BayCare Health System (Clearwater, Fla.). KentuckyOne Health (Louisville). Saint Francis Health System (Tulsa, Okla.). Baylor Health Care System (Dallas). Lancaster (Pa.) General Health. Sanford Health (Sioux Falls, S.D., and Fargo, N.D.). Baystate Health (Springfield, Mass.). Legacy Health (Portland, Ore.). Scripps Health (San Diego). Beaumont Health System (Royal Oak, Mich.). Lehigh Valley Health Network (Allentown, Pa.). Sentara Healthcare (Norfolk, Va.). Bon Secours Virginia Health System (Richmond). MaineHealth (Portland). Sharp HealthCare (San Diego). Broward Health (Fort Lauderdale, Fla.). Mayo Clinic (Rochester, Minn.). Spectrum Health (Grand Rapids, Mich.). Carilion Clinic (Roanoke, Va.). McLaren Health Care (Flint, Mich.). SSM Health Care (St. Louis). Carolinas HealthCare System (Charlotte, N.C.). MedStar Health (Columbia, Md.). Steward Health Care System (Boston). Catholic Health East (Newtown Square, Pa.). Memorial Hermann Healthcare System (Houston). Sutter Health (Sacramento, Calif.). Catholic Health Initiatives (Englewood, Colo.). MemorialCare Health System (Fountain Valley, Calif.). Texas Health Resources (Arlington). Catholic Health Partners (Cincinnati). Mercy (Chesterfield, Mo.). TriHealth (Cincinnati). Catholic Health System (Buffalo, N.Y.). Mercy Health System (Janesville, Wis.). Trinity Health (Novi, Mich.). Christus Health (Irving, Texas). Mercy Springfield (Mo.) Communities. Trinity Mother Frances Hospitals and Clinics (Tyler, TX). Cleveland Clinic. Methodist Healthcare (Memphis, Tenn.). UC Davis Health System (Sacramento, Calif.). Community Health Network (Indianapolis). Mountain States Health Alliance (Johnson City, Tenn) UnityPoint Health (Des Moines). Covenant Health (Knoxville, Tenn.). MultiCare Health System (Tacoma, Wash.). University Hospitals (Cleveland). CoxHealth (Springfield, Mo.). NewYork-Presbyterian Healthcare System (N.Y.). University of Michigan Health System (Ann Arbor). Dignity Health (San Francisco). North Mississippi Health Services (Tupelo). University of Pittsburgh Medical Center. Fairview Health Services (Minneapolis). North Shore-Long Island Jewish Health System (N.Y.). WellSpan Health (York, Pa.). Fletcher Allen Health Care (Burlington, Vt.). NorthShore University HealthSystem (Evanston, Ill.). WellStar Health System (Marietta, Ga.). Franciscan Health System (Tacoma, Wash.). Northwestern Memorial HealthCare (Chicago). Wheaton Franciscan Healthcare (Glendale, Wis.). Geisinger Health System (Danville, Pa.). Novant Health (Winston-Salem, N.C.). Yale New Haven (Conn.) Health System.

Source: The Becker's Hospital Review editorial team selected health systems based on rankings by healthcare analytics company IMS Health Strictly Confidential 13 Acquisition Demographics

Sources: Data used to create this ranking were collected from the U.S. Census Bureau, Bureau of Labor Statistics, Council for Community and Economic Research, The Commonwealth Fund, Urban Institute, Centers for Medicare & Medicaid Services, Health Resources & Services Administration, ProPublica, Association of American Medical Colleges, Centers for Disease Control and Prevention, American Telemedicine Association, Urgent Care Association of America, Convenient Care Association, Kaiser Family Foundation, Amnesty International USA, Trustees of Dartmouth College, Social Science Research Council, Trust for America's Health and Robert Wood Johnson Foundation. Strictly Confidential 14 Initial Investment Strategy Overview

Providers Timing Capital Stack Hospital Systems, Typically funded pre- JV, Private Equity and/or Physician Groups, Rehab, defined acquisition Lending. CMBS, Insurance Ambulatory Surgical process takes 60 days. Funding, Commercial Mortgage, LOC. Center

Property Sourcing Sources and Uses Underwriting Equity/Funding Off-Market Physical Inspection Asset Acquisition Broker Executive Interviews Closing Cost M&A Dividend/Debt Audit Review Strictly Confidential 15 Stabilized Investment Process

You are working with a company with over 20 years experience in securing investments by ensuring Financial Reporting excellence and oversight related to all aspects of compliance.

Sourcing Acquisition Management Exit

Building Pipeline Sound Underwriting Experienced Operator Investor Returns Utilize our Market niche Credit worthy local dominate Post close governance and Our goal is to acquire with the approach. tenant is the key. policy safeguards the asset. exit in mind. • Understand Deal • Established Market • Leveraged Complexity • Knowledge of REIT Provider accounting & audit through Network of Lenders • Utilize Broker/ PE Network • Demonstrated Clinical • Established Lease Admin • Traditional Buy & Hold • Align with Seller Expertise /Asset Management Systems Motivation • Trade Sale through Portfolio • Strong Credit • Stringent financial investor Package to REITs • Reduce Execution Timing reporting • Secondary to Private • Maintain Relationship Investor Credibility • Knowledge of buyer pool • IPO and/or dual track Strictly Confidential 16 Sourcing

Deals Under LOI

Network Maintain steady contact with deal potential through PE, M&A, Brokers, Site Visits and Conferences

REBALANCE Pipeline Review Deal Flow to Select Most eliminate Stale LOIs Accretive Deals Under Contract and or out of Opportunities Contract Deals

CONTRACT LOI Execute & Initiate Run our Model to Underwriting after develop a realistic Funding is Secured LOI to avoid re- trading Strictly Confidential 17 Acquisition

The acquisition of healthcare real estate involves a myriad of 05 issues which will be addressed by Capitol CRE Close experts negotiators and 04 legal counsel. Approvals 03

Lease Negotiation 02

Underwriting 01

Executed Contract Strictly Confidential 18 Management

The Management team offers decades of experience in all aspects of real estate investment, development, management, finance and banking

Healthcare Real Estate Experts • Healthcare industry knowledge. • Comprehension of particular challenges and unique opportunities of the healthcare real estate sector. • Our team has the specialized expertise to evaluate, underwrite and manage healthcare real estate, healthcare related tenants and service providers. • We maintain an in-depth understanding of the healthcare industry, including regulatory matters and their impact on our medical providers. Strictly Confidential 19 Exit

Exits are central to the private equity Identify investing process and Strategy Stage One a PE firm will consider a variety of different exit strategies to Timing, performance realize its return on Stage Two and valuation investment. review

Due Diligence Stage Three

Fund the Closing Stage Four

Exit Strategies Four of the most common PE exit strategies are: trade sale, initial , secondary buyout, leveraged recapitalization and/or dual track. Strictly Confidential 20 Biography

Inter-American Management | Global Medical REIT | American Housing REIT Chief Financial Officer | Treasurer Showcase executive leadership abilities to drive financial decisions and profitable growth. Review, evaluate and approve all Investment Memo Deal Flow, Contracts, Acquisitions and Closings. Build and strengthen relationships with key stakeholders including auditors, fund managers, and investment bankers leading to new business opportunities. Streamline operations and facilitate efficiency by creating policies, procedures and internal controls. Led debt structuring process organization wide. Enforce and promote outsourced corporate and REIT tax compliance as well as compliance with bank covenants, GAAP, IFRS, and federal law. Coordinate all transfer agent correspondence reporting and dividend declaration proformas. Trigger improvements by reviewing financing and capital management related to debt portfolio, liquidity, and treasury. Lead technical accounting and audit processes. Create and implement internal control SOX process narratives and RCMs.

Quantum Real Estate Management Chief Financial Officer | Comptroller Spearheaded accounting operations for 40 non-profit subsidized properties financed by LIHTC/Bonds. Prepared GAAP financial statements including reconciliations and occupancy projections with a dedication to accuracy. Consistently ensured all operational requirements are met by producing daily cash flow reporting. Served as treasury management contact, communicating with banking and investment institutions. Prepared financial work papers and coordinated interim and YE audits; produced OMB Circular A-133 annual auditable financials. Evaluated third-party annual 990 tax and K1 partner returns and produced bi-weekly payroll process including bi-weekly, quarterly, and annual reporting.

Washington REIT Accounting Manager Developed the property accounting department by hiring, training and managing staff. Steered daily operations of corporate treasury, accounts receivable and fixed assets. Handled monthly depreciation and reconciliation to fixed assets. Reported on monthly Funds Available for Distribution (FAD). Created balance sheet account roll-forwards for executive management and led property level income statement and balance sheet variance reporting. Led onboarding of property acquisitions.