Thank you for standing by. My name is Kayla and I will be your conference operator today. At this time, I'd like to welcome everyone to the Medical Properties Trust 3rd Quarter 2025 Earnings Conference Call. All lines have been placed on mute to prevent any background noise during this 60-minute call. After the speaker's remarks, there will be a question and answer session. If you'd like to ask a question during this time, simply press star followed by the number 1 on your telephone keypad. If you'd like to withdraw your question, press star 1 again. Thank you. I would now like to turn the call over to Charles Lambert, Senior Vice President. Please go ahead.

Good morning. Welcome to the medical property. With me today are Edward K. Chief Executive Officer of the company. Stephen Hamner, Executive Kevin Hanna, Senior Furnished on Form 8K. If you did not receive a copy, it is of today's call, which you can access, that may be considered the Police Litigation Reform Act of 1995. that may cause to differ materially refer you to the company's reports filed with the security to differ materially provided today as as of this date only and accepted as required by the federal the company does not undertake non-GAAP financial measures which should be considered in addition to and not in lieu of comparable GAAP. Note that in our press release Medical Properties Trust has reconciled all non-GAAP financial measures comparable GAAP measures in accordance with reggrestrust.com, financial measures and related reconciliations.

Including a few notable developments, tenants are delivering exception more than $200 million increase in EBITDARM year-over-year. Concentage revenue increases. Operators reported a $50 million EBITDARM increase versus the same quarter last year. Vibra up 33% and median up 7%. Finally, in our behavioral health portfolio, EBITDAHRM increased $10 million year over Rosa will share more details on this performance trend across our portfolio shortly, the terms of which are broadly similar to those agreed to with the other operators in our transitional portfolio. All rent will be deferred for the first six months, ramping to 50% for an additional six months and then reaching total stabilized annual rent of 45 million dollars per year thereafter more recently we reached a settlement agreement with yale new haven and prospect whereby prospect will receive 45 million dollars from yale this payment from yale will be additive to the ultimate proceeds that prospect receives for these properties prospect has already entered into in agreement to sell two of its Connecticut facilities, is actively engaged in negotiation with buyers around the third. Our portfolio of new tenants continues to ramp monthly rent on schedule. With a few exceptions that are mentioned in our press room due from these operators through October, including 100% of rent from HSA. In August, we sold two facilities from this portfolio to a tenant for approximately $50 million, dollars pursuant to a purchase option in the lease. We continue to own approximately 15 acres of land in the area. We are increasingly confident in our ability to generate total annualized cash rent of more than one billion dollars by year-end 2026. This one billion dollar target does not reflect any rent contributions from any of the California prospects. Reflecting this confidence as well as our strong belief that our share price remains significantly undervalued, our Board of Directors has authorized a new $150 million share repurchase program that we intend to deploy opportunistically. Furthermore, I want to call your attention to a comprehensive reaffirmation of our business model presentation posted to our website earlier this week. In this presentation, we directly address a range of false narratives that critics have been spreading about our business model. We believe it is important that shareholders, operators, journalists, and lawmakers all have a complete understanding of the truth around MPT. There remains a dynamic macro policy environment, making the permanent and flexible capital solutions that MPT offers more important now than ever.

Thank you, Ed. As always, I will cover some highlights from the quarter across our diverse global portfolio, beginning with Europe. As a reminder, international operators comprise approximately 50% of our total portfolio. We continue to be pleased with the consistency of coverages exceeding two times across this portfolio. These operators strategic focus on high quality patient care, as well as continuous expansion of access to care within their communities. In the UK, CIRCLE repeatedly ranks among the highest of all healthcare operators in patient satisfaction, maintaining a reputation score well above its next closest competitor. CIRCLE continues to make significant investments in advanced technologies, including AI and robotics, strengthening its competitive advantages and reinforcing its position as one of the leading health care providers in the UK market. Our Sulis Bath Hospital in the UK is the first independent hospital to receive accreditation as an elective surgical hub deemed by the NHS and the Royal College of Surgeons of England. This recognition is in clinical performance, operational efficiency, and patient care. With coverages consistently above two times, Priory has demonstrated its ability to adapt its service lines to the needs of each market, allowing for flexibility as the NHS's mental health model evolves. Priory continues to explore technological opportunities, such as its partnership to launch an innovative digital pathway that aims to revolutionize access to personalized mental health care. In Germany, Median continues to report strong negotiated reimbursement rates and occupancy trends, enabling them to meaningfully outperform prior year revenue and earnings. In Switzerland, Swiss Medical has launched integrated care models in each of the French, German, and Italian. With these new platforms supplementing organic growth, EBITDA grew more than 10% trailing 12 months year-over-year. It continues to progress in Alicante and Barcelona with scheduled opening 70% of construction completed. Turning to our U.S. portfolio, Ernest Health has continued increasing consolidated coverage every quarter over the past year, with legacy IRFs reporting strong results and new developments rapidly ramping. Consolidated EBITDA coverage is now approaching. Point Health continues to deliver high margin growth at a steady, stable rate versus the rapid acceleration observed in 2024. Connemon Memorial continues to be the most significant growth driver within MPT's LifePoint portfolio, with trailing 12-month admissions increasing 15% year-over-year. Validated EBIT Darm Hospital in Wisconsin recently completed a much-anticipated expansion to their operating suite. MTSA continues to improve operations and staffing across markets, with Q2 and Q3 EBIT-DARM coverage approaching one time on fully ramped rent, which, as a reminder, does not sort of 2020. Summer seasonality drove softer volumes in the third quarter, but revenue remains strong due to a higher patient acuity mix. MPT has committed to funding approximately $40 million over the next two years for necessary infrastructure and other capital improvement projects, including HVAC and elevator replacements. The vast majority of this amount is for a newly constructed seven-story parking deck. These costs will be added to the lease bay landing in Arizona. In addition, recruitment, executing its self-funded CapEx strategy ahead of anticipated facility, continues to improve performance with stronger-than-expected admissions, regional, and now certification as a Cribs for Kids National Safe Sleep Hospital, illustrating adherence to rigorous guidelines for kids certification programs. SiteHealth reopened ER services at Trumbull, Ohio earlier this month with plans to slowly open more services to physicians and staff. Prime Healthcare's MPT facilities continue to show improved performance with EBIT-DARM coverage over two times as volumes and ER conversion rates and upgrades from Fitch, Moody's, and S&P during the third quarter. Healthline Health continues to demonstrate growth with EBIT-DARM coverage over two times. Additionally, they are opening new service lines for patients at all four hospitals. In summary, trends across our portfolio. New tenants continues to ramp monthly rent payments, and we remain well-positioned to generate 388 properties and approximately 39,000 licensed vets around the world, enabling us to create value for shareholders moving forward. Kevin?

Thank you, Rosa. Would have been neither of these items are included in Pennsylvania, outstanding dip loan balance.

As your note, we are now trading at $1 billion of access to capital, ability to retenant and begin collecting what is now scheduled to be and an incremental $200 million to all the issues around prosperity in 2027 and beyond. Along with our clear visibility, plus million dollars, the upcoming 2026 annual escalation will expect even more liquidity to generate proceeds in excess of the $100 million balance to MPT. We are evaluating the sales currently yielding meaningful risk to continue to evaluate sales of earning assets and portfolios. LSE, is currently exploring various strategic options for opportunities to open up its growing demand for, say, market indicators, virtually all geographies. We may make modest acquisitions. Purchasing our own common stock is among our very best and most accretive uses of capital. And for that reason, we announced this morning that we have implemented a $150 million strategic stock repurchase plan that will make available some at recent prices. We reestablished that program. Opportunistic flexibility it provides us in August, shortly after the secured note outstanding and nothing we may consider were ATM programs, rules out continued consideration of possible debt refinancing. We've conclusively demonstrated to monitor and plan for the maintenance of all debt covenants as we look into possible future capital transactions. We consciously designed and negotiated these covenants.

Opportunistic flexibility to execute back to the operator to cue any questions at this time i'd like to remind everyone in order to ask a question press star then the number one on your telephone keypad please limit to one question and one follow-up your first question comes from the line of mike mueller with jp morgan your line is open yeah hi um i guess on the buyback um the questions here uh I mean, how do you weigh looking at a buyback versus using the capital to either, you know, pay down debt, buy back other debt, just given where the leverage level is today and, you know, even on a pro forma basis where it'll be? And I guess the follow up to that is in terms of funding a buyback, would you only, you know, use asset sales or would you use cash on hand or tap the credit line? Can you just put that whole buyback into perspective for us?

Sure, Mike. We, first of all, have a number of opportunities, and we've been talking about these for several years. We have resources. We will continue to evaluate the opportunities and the timing, if anything, and possibly some of the well-received earning assets in the last several years. So all of that is available, and as we've been doing constantly, in fact.

Okay. Appreciate it. Thank you.

And your next question comes from the line of Michael Carroll with RBC Capital Markets. Please go ahead.

Yeah, thanks. I just want to follow up with Mike's questions related to the buyback. I mean, is this, can you kind of highlight the timing of this, of when some of these purchases could occur? I mean, I know you have a big debt maturity in 2027. You still are pulling money on the line of credit for, to meet some of the debt covenant commitments, you're still kind of cash flow negative, at least in terms of some of the investments you made, I guess, post that. I mean, do we need to have all that kind of resolved before you start to buy back stock, or are you willing to do that in the near term?

Yeah, Mike, I think you should assume it'll start immediately.

And then, Ed, can you give us an update on HSA? I know you have some positive commentaries on their progress and the ramp up that they've been doing. Maybe provide some details on what drove the late September rent payment, and is that a concern that, like, does that cause you any concerns of their ability to pay the ramped-up rent over time? Can you provide some color on that?

Sure. They continue to perform very well. The biggest improvements in Florida come from recruiting the doctors back to the...

And your next question comes from the line of Farrell Granoff with Bank of America. Please go ahead.

Thank you, and good morning. I was just wondering if you could add a little commentary around the Yale New Haven hospitals. I saw the update with having at least two with greater line of sight of a potential close. Is there anything else that you can share, and also the potential third, if there's been further interest?

So, Farrell, I think you're going to need to repeat that. No one around the table heard the first part of your question.

Oh, so sorry about that. But I was just asking about the Yale New Haven Hospitals and the progress on having those either released or sold under the binding agreements, or is that involved, as well as the third property?

Yeah, sure. So, the two facilities are under binding agreement, we expect.

Okay, thank you. And also, I saw a little bit of commentary on the NHS restructuring and impacting of the referral on the behavioral providers. Does that grant you any concern on the future health of that sector for Priory for their eBIT-DARM coverage? Or does that maybe add a little target if that could be something to dispose of and use for capital funding?

So we've talked about this in the last quarter, I know, perhaps the one before too. So NHS, Yes, as they have did with acute care a few years back, they want to try to keep as much of their mix of patients in their own hospitals. And now they're doing the same thing with behavioral, that they ultimately having independent hospitals to treat some of those patients. You know, we think it's short-term, and in the meantime, Priory has, you know, as evidenced by their two-times coverage, been able to put things in place.

Okay, thank you so much.

And your next question comes from the line of Amoteo Akisanya with Georgia Bank. Your line is open.

Yes, good morning, everyone. In terms of the rent collections in the quarter, I think in the press release, you did mention that there was maybe not as much of collection as you expected in Pennsylvania and Ohio. I'm curious if that relates to Insight in particular, and if you could just kind of give us an update on that asset transition.

Yeah, so Talia, it's almost a day to begin, and I believe that's in June.

Okay, that's helpful. And then just kind of looking through the stuff, it looks like there was some additional, you know, about $20 million of new loans in the quarter. I'm just kind of curious if you could kind of talk us through, you know, who that was to, if it's to any of the kind of operators of the assets in transition.

And that was for CapEx. And then there was...

Gotcha. That's helpful. And then another one for me, the eight assets, Stuart, you took back 23 assets, 15 were leased, eight were kind of out there, and we're kind of looking at what to ultimately do with those eight assets, including some of the developments. Could you just walk us through kind of the status of those eight and kind of what's happening?

The eight, I guess the two big ones would be the one in Massachusetts and Texarkana. Both of those facilities remain under construction. And other than... Gotcha.

Thank you.

I will now turn the call back over to Ed Aldag for closing remarks.

Thank you very much and thank you all for joining us. As always, if you have any questions, please don't hesitate to reach out to Drew and we'll get back with you.

Ladies and gentlemen, that concludes today's call. Thank you all for joining. You may now disconnect.