MPT 8-K
Medical Properties Trust Inc (MPT)
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM
CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(d)
OF THE SECURITIES EXCHANGE ACT OF 1934
Date of report (Date of earliest event reported):
(Exact Name of Registrant as Specified in Charter)
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| (State or other jurisdiction of incorporation or organization) |
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Registrantβs telephone number, including area code
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the Registrant under any of the following provisions:
| Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) |
| Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) |
| Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) |
| Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) |
Securities registered pursuant to Section 12(b) of the Act:
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Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (Β§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (Β§240.12b-2 of this chapter).
Emerging growth companyβ
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.ββ
| Itemβ2.02. | Results of Operations and Financial Condition. |
On February 27, 2025, Medical Properties Trust, Inc. issued a press release announcing its financial results for the three and twelve months ended December 31, 2024. A copy of the press release is attached as Exhibit 99.1 to this Current Report on Form 8-K and is incorporated herein by reference. The information in this Current Report on Form 8-K, including the information set forth in Exhibit 99.1 and Exhibit 99.2 attached hereto, shall not be deemed βfiledβ for purposes of Section 18 of the Securities Exchange Act of 1934, as amended, or otherwise subject to the liability of that section or Sections 11 and 12(a)(2) of the Securities Act of 1933, as amended. In addition, this information shall not be deemed incorporated by reference in any filing of Medical Properties Trust, Inc. with the Securities and Exchange Commission, except as expressly set forth by specific reference in any such filing.
| Itemβ9.01. | Financial Statements and Exhibits. |
(d) Exhibits.
| Exhibit |
Description | |
| 99.1 | Press release dated February 27, 2025 reporting financial results for the three and twelve months ended December 31, 2024 | |
| 99.2 | Medical Properties Trust, Inc. 4th Quarter 2024 Supplemental Information | |
| 104 | Cover Page Interactive Data File (embedded within the Inline XBRL document) | |
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SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, as amended, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunder duly authorized.
| MEDICAL PROPERTIES TRUST, INC. | ||
| By: | /s/ R. Steven Hamner | |
| Name: | R. Steven Hamner | |
| Title: | Executive Vice President and Chief Financial Officer | |
Date: February 27, 2025
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Exhibit 99.1
| Contact: Drew Babin, CFA, CMA Head of Financial Strategy and Investor Relations Medical Properties Trust, Inc. (646) 884-9809 |
MEDICAL PROPERTIES TRUST, INC. REPORTS FOURTH QUARTER AND FULL-YEAR RESULTS
Completed Approximately $5.5 Billion of Asset Monetization Transactions, Including Februaryβs $2.5 Billion Senior Secured Notes Offering That Addresses All Debt Maturities Through 2026
Birmingham, AL β February 27, 2025 β Medical Properties Trust, Inc. (the βCompanyβ or βMPTβ) (NYSE: MPW) today announced financial and operating results for the fourth quarter and full-year ended December 31, 2024, as well as certain events occurring subsequent to quarter end.
| β’ | Net loss of ($0.69) and Normalized Funds from Operations (βNFFOβ) of $0.18 for the 2024 fourth quarter and net loss of ($4.02) and NFFO of $0.80 for the full-year 2024, all on a per share basis. Fourth quarter 2024 net loss includes approximately $415 million ($0.69 per share) in impairments and fair market value adjustments related to Prospect Medical Group (βProspectβ) and PHP Holdings (βPHPβ); |
| β’ | Completed a well-oversubscribed private offering of more than $2.5 billion of senior secured notes due in 2032 at a blended coupon rate of 7.885%, the proceeds from which will repay all debt maturities until October 2026 and result in expected combined cash and line of credit availability of $1.4 billion; |
| β’ | Simultaneous to the senior secured notes offering, the Company amended its line of credit to share collateral with the new senior secured notes and received universal affirmation of the long-standing banking groupβs approximate $1.5 billion commitment with a fully extended (at MPTβs option) maturity in June 2027; |
| β’ | Commenced rent during the fourth quarter on a $50 million building improvement project in Idaho Falls, Idaho; |
| β’ | Sold two post-acute properties and agreed to sell an additional general acute facility during January for combined proceeds of approximately $45 million; and |
| β’ | Declared a regular quarterly dividend of $0.08 per share in February. |
Edward K. Aldag, Jr., Chairman, President and Chief Executive Officer, said, βWe delivered on exactly what we said we would do in 2024 by using proceeds from transactions to accelerate repayment of debt maturities. Our global real estate portfolio remains attractive to sophisticated investors, as evidenced by our recent five-and-a-half times oversubscribed secured notes transaction. We improved the operator diversification of our portfolio and effectively addressed all debt maturities through 2026, positioning MPT to pursue a range of shareholder value initiatives in 2025.β
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Included in the financial tables accompanying this press release is information about the Companyβs assets and liabilities, operating results, and reconciliations of net (loss) income to NFFO, including per share amounts, all on a basis comparable to 2023 results.
PORTFOLIO UPDATE
Medical Properties Trust has total assets of approximately $14.3 billion, including $8.6 billion of general acute facilities, $2.4 billion of behavioral health facilities and $1.6 billion of post-acute facilities. As of December 31, 2024, MPTβs portfolio included 396 properties and approximately 39,000 licensed beds leased to or mortgaged by 53 hospital operating companies across the United States as well as in the United Kingdom, Switzerland, Germany, Spain, Finland, Colombia, Italy and Portugal.
Hospitals around Europe are benefiting from strong reimbursement trends, growing occupancy, and higher acuity levels. In the United Kingdom, private medical insurance utilization has reached an all-time high β enabling operators such as Circle Health to deliver strong financial performance driven by volume growth as increasingly complex cases are being addressed in the private sector.
In the United States, hospital fundamentals continue to broadly improve across the general acute segment as increasing admissions and growing surgical volumes are driving improved coverage. In the behavioral and post-acute segments, operators are reporting consistent growth in inpatient admissions as well as improvements in contract labor costs.
Following the first full quarter of operations since transitioning 15 hospitals to new operators in September, MPT is encouraged by performance trends being reported across this portfolio as well as by a fifth tenant who leased two additional facilities in November. Across this footprint, our tenants have reported improving volumes, increasing patient satisfaction, and stabilization of staffing and supplies.
In January, Prospect Medical Group commenced an in-court restructuring process under Chapter 11 of the U.S. Bankruptcy Code. In February, MPT entered into a Term Sheet providing for a settlement that will enable Prospect to sell its hospitals and the related real estate with MPTβs cooperation. This settlement is subject to Bankruptcy Court approval.
OPERATING RESULTS
Net loss for the fourth quarter and year ended December 31, 2024 was ($413 million) (($0.69) per share) and ($2.4 billion) (($4.02) per share), respectively, compared to net loss of ($664 million) (($1.11) per share) and net loss of ($556 million) (($0.93) per share) in the year earlier periods. Net loss for the quarter ended December 31, 2024 included, among other non-recurring items, approximately $415 million of impairments and fair market value adjustments related to Prospect and PHP.
NFFO for the fourth quarter and year ended December 31, 2024 was $108 million ($0.18 per share) and $483 million ($0.80 per share), respectively, compared to $218 million ($0.36 per share) and $951 million ($1.59 per share) in the year earlier periods.
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CONFERENCE CALL AND WEBCAST
The Company has scheduled a conference call and webcast for February 27, 2025 at 11:00 a.m. Eastern Time to present the Companyβs financial and operating results for the quarter and year ended December 31, 2024. The dial-in numbers for the conference call are 877-883-0383 (U.S.) and 412-902-6506 (International) along with passcode 9974897. The conference call will also be available via webcast in the Investor Relations section of the Companyβs website, www.medicalpropertiestrust.com.
A telephone and webcast replay of the call will be available beginning shortly after the callβs completion. The telephone replay will be available through March 13, 2025, using dial-in numbers 877-344-7529 (U.S.), 855-669-9658 (Canada) and 412-317-0088 (International) along with passcode 1210933. The webcast replay will be available for one year following the callβs completion on the Investor Relations section of the Companyβs website.
The Companyβs supplemental information package for the current period will also be available on the Companyβs website in the Investor Relations section.
The Company uses, and intends to continue to use, the Investor Relations page of its website, which can be found at www.medicalpropertiestrust.com, as a means of disclosing material nonpublic information and of complying with its disclosure obligations under Regulation FD, including, without limitation, through the posting of investor presentations that may include material nonpublic information. Accordingly, investors should monitor the Investor Relations page, in addition to following our press releases, SEC filings, public conference calls, presentations and webcasts. The information contained on, or that may be accessed through, our website is not incorporated by reference into, and is not a part of, this document.
About Medical Properties Trust, Inc.
Medical Properties Trust, Inc. is a self-advised real estate investment trust formed in 2003 to acquire and develop net-leased hospital facilities. From its inception in Birmingham, Alabama, the Company has grown to become one of the worldβs largest owners of hospital real estate with 396 facilities and approximately 39,000 licensed beds in nine countries and across three continents as of December 31, 2024. MPTβs financing model facilitates acquisitions and recapitalizations and allows operators of hospitals to unlock the value of their real estate assets to fund facility improvements, technology upgrades and other investments in operations. For more information, please visit the Companyβs website at www.medicalpropertiestrust.com.
Forward-Looking Statements
This press release includes forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Forward-looking statements can generally be identified by the use of forward-looking words such as βmayβ, βwillβ, βwouldβ, βcouldβ, βexpectβ, βintendβ, βplanβ, βestimateβ, βtargetβ, βanticipateβ, βbelieveβ, βobjectivesβ, βoutlookβ, βguidanceβ or other similar words, and include statements regarding our strategies, objectives, asset sales and other liquidity transactions (including the use of proceeds thereof), expected re-tenanting of facilities and any related regulatory approvals, and expected outcomes from Prospectβs Chapter 11 restructuring process. Forward-looking statements involve known and unknown risks and uncertainties that may cause our actual results or future events to differ materially from those expressed in or underlying such forward-looking statements, including, but not limited to: (i) the risk that the outcome and terms of the bankruptcy restructuring of Prospect will not be consistent with those anticipated by the Company; (ii) our success in implementing our business strategy and our ability to identify, underwrite, finance, consummate and integrate acquisitions and investments; (iii) the risk that previously announced or contemplated property sales, loan repayments, and other capital recycling transactions do not occur as anticipated or at all; (iv) the risk that MPT is not able to attain its leverage, liquidity and cost of capital objectives within a reasonable time period or at all; (v) MPTβs ability to obtain or modify the terms of debt financing on attractive terms or at all, as a result of changes in interest rates and other factors, which may adversely impact its ability to pay down, refinance,
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restructure or extend its indebtedness as it becomes due, or pursue acquisition and development opportunities; (vi) the ability of our tenants, operators and borrowers to satisfy their obligations under their respective contractual arrangements with us; (vii) the ability of our tenants and operators to operate profitably and generate positive cash flow, remain solvent, comply with applicable laws, rules and regulations in the operation of our properties, to deliver high-quality services, to attract and retain qualified personnel and to attract patients; (viii) the risk that we are unable to monetize our investments in certain tenants at full value within a reasonable time period or at all; and (ix) the risks and uncertainties of litigation or other regulatory proceedings.
The risks described above are not exhaustive and additional factors could adversely affect our business and financial performance, including the risk factors discussed under the section captioned βRisk Factorsβ in our Annual Report on Form 10-Ks and our Form 10-Qs, and as may be updated in our other filings with the SEC. Forward-looking statements are inherently uncertain and actual performance or outcomes may vary materially from any forward-looking statements and the assumptions on which those statements are based. Readers are cautioned to not place undue reliance on forward-looking statements as predictions of future events. We disclaim any responsibility to update such forward-looking statements, which speak only as of the date on which they were made.
#β#β#
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MEDICAL PROPERTIES TRUST, INC. AND SUBSIDIARIES
Consolidated Balance Sheets
(Amounts in thousands, except for per share data)
| December 31, 2024 | December 31, 2023 | |||||||
| Assets | (Unaudited) | (A) | ||||||
| Real estate assets |
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| Land, buildings and improvements, intangible lease assets, and other |
$ | 11,259,842 | $ | 13,237,187 | ||||
| Investment in financing leases |
1,057,770 | 1,231,630 | ||||||
| Real estate held for sale |
34,019 | ββ | ||||||
| Mortgage loans |
119,912 | 309,315 | ||||||
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| Gross investment in real estate assets |
12,471,543 | 14,778,132 | ||||||
| Accumulated depreciation and amortization |
(1,422,948 | ) | (1,407,971 | ) | ||||
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| Net investment in real estate assets |
11,048,595 | 13,370,161 | ||||||
| Cash and cash equivalents |
332,335 | 250,016 | ||||||
| Interest and rent receivables |
36,327 | 45,059 | ||||||
| Straight-line rent receivables |
700,783 | 635,987 | ||||||
| Investments in unconsolidated real estate joint ventures |
1,156,397 | 1,474,455 | ||||||
| Investments in unconsolidated operating entities |
439,578 | 1,778,640 | ||||||
| Other loans |
109,175 | 292,615 | ||||||
| Other assets |
471,404 | 457,911 | ||||||
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| Total Assets |
$ | 14,294,594 | $ | 18,304,844 | ||||
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| Liabilities and Equity |
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| Liabilities |
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| Debt, net |
$ | 8,848,112 | $ | 10,064,236 | ||||
| Accounts payable and accrued expenses |
454,209 | 412,178 | ||||||
| Deferred revenue |
29,445 | 37,962 | ||||||
| Obligations to tenants and other lease liabilities |
129,045 | 156,603 | ||||||
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| Total Liabilities |
9,460,811 | 10,670,979 | ||||||
| Equity |
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| Preferred stock, $0.001 par value. Authorized 10,000 shares; no shares outstanding |
ββ | ββ | ||||||
| Common stock, $0.001 par value. Authorized 750,000 shares; issued and outstanding - 600,403 shares at December 31, 2024 and 598,991 shares at December 31, 2023 |
600 | 599 | ||||||
| Additional paid-in capital |
8,584,917 | 8,560,309 | ||||||
| Retained deficit |
(3,658,516 | ) | (971,809 | ) | ||||
| Accumulated other comprehensive (loss) income |
(94,272 | ) | 42,501 | |||||
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| Total Medical Properties Trust, Inc. Stockholdersβ Equity |
4,832,729 | 7,631,600 | ||||||
| Non-controlling interests |
1,054 | 2,265 | ||||||
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| Total Equity |
4,833,783 | 7,633,865 | ||||||
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| Total Liabilities and Equity |
$ | 14,294,594 | $ | 18,304,844 | ||||
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| (A) | Financials have been derived from the prior year audited financial statements. |
MEDICAL PROPERTIES TRUST, INC. AND SUBSIDIARIES
Consolidated Statements of Income
(Unaudited)
| (Amounts in thousands, except for per share data) | For the Three Months Ended | For the Twelve Months Ended | ||||||||||||||
| December 31, 2024 | December 31, 2023 | December 31, 2024 | December 31, 2023 | |||||||||||||
| Revenues |
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| Rent billed |
$ | 166,965 | $ | 78,421 | $ | 719,749 | $ | 803,375 | ||||||||
| Straight-line rent |
43,695 | (166,769 | ) | 163,414 | (127,894 | ) | ||||||||||
| Income from financing leases |
9,819 | 19,412 | 63,651 | 127,141 | ||||||||||||
| Interest and other income |
11,365 | (53,447 | ) | 48,733 | 69,177 | |||||||||||
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| Total revenues |
231,844 | (122,383 | ) | 995,547 | 871,799 | |||||||||||
| Expenses |
||||||||||||||||
| Interest |
101,466 | 102,338 | 417,824 | 411,171 | ||||||||||||
| Real estate depreciation and amortization |
64,956 | 77,295 | 447,657 | 603,360 | ||||||||||||
| Property-related (A) |
9,780 | 3,298 | 27,255 | 41,567 | ||||||||||||
| General and administrative |
28,489 | 30,150 | 133,789 | 145,588 | ||||||||||||
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| Total expenses |
204,691 | 213,081 | 1,026,525 | 1,201,686 | ||||||||||||
| Other (expense) income |
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| Gain (loss) on sale of real estate |
3,497 | (2,024 | ) | 478,693 | (1,815 | ) | ||||||||||
| Real estate and other impairment charges, net |
(386,973 | ) | (283,619 | ) | (1,825,402 | ) | (376,907 | ) | ||||||||
| Earnings (loss) from equity interests |
2,923 | (20,873 | ) | (366,642 | ) | 13,967 | ||||||||||
| Debt refinancing and unutilized financing (costs) benefit |
(615 | ) | 239 | (4,292 | ) | 285 | ||||||||||
| Other (including fair value adjustments on securities) |
(48,744 | ) | (17,861 | ) | (615,565 | ) | 7,586 | |||||||||
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| Total other expense |
(429,912 | ) | (324,138 | ) | (2,333,208 | ) | (356,884 | ) | ||||||||
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| Loss before income tax |
(402,759 | ) | (659,602 | ) | (2,364,186 | ) | (686,771 | ) | ||||||||
| Income tax (expense) benefit |
(9,563 | ) | (3,982 | ) | (44,101 | ) | 130,679 | |||||||||
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| Net loss |
(412,322 | ) | (663,584 | ) | (2,408,287 | ) | (556,092 | ) | ||||||||
| Net income attributable to non-controlling interests |
(526 | ) | (359 | ) | (1,984 | ) | (384 | ) | ||||||||
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| Net loss attributable to MPT common stockholders |
$ | (412,848) | $ | (663,943) | $ | (2,410,271) | $ | (556,476) | ||||||||
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| Earnings per common share - basic and diluted: |
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| Net loss attributable to MPT common stockholders |
$ | (0.69 | ) | $ | (1.11 | ) | $ | (4.02 | ) | $ | (0.93 | ) | ||||
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| Weighted average shares outstanding - basic |
600,402 | 598,984 | 600,248 | 598,518 | ||||||||||||
| Weighted average shares outstanding - diluted |
600,402 | 598,984 | 600,248 | 598,518 | ||||||||||||
| Dividends declared per common share |
$ | 0.08 | $ | 0.15 | $ | 0.46 | $ | 0.88 | ||||||||
| (A) | Includes $3.9 million and $0.7 million of ground lease and other expenses (such as property taxes and insurance) paid directly by us and reimbursed by our tenants for the three months ended December 31, 2024 and 2023, respectively, and $13.7 million and $29.3 million for the twelve months ended December 31, 2024 and 2023, respectively. |
MEDICAL PROPERTIES TRUST, INC. AND SUBSIDIARIES
Reconciliation of Net (Loss) Income to Funds From Operations
(Unaudited)
| (Amounts in thousands, except for per share data) | For the Three Months Ended | For the Twelve Months Ended | ||||||||||||||
| December 31, 2024 | December 31, 2023 | December 31, 2024 | December 31, 2023 | |||||||||||||
| FFO information: |
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| Net loss attributable to MPT common stockholders |
$ | (412,848 | ) | $ | (663,943 | ) | $ | (2,410,271 | ) | $ | (556,476 | ) | ||||
| Participating securitiesβ share in earnings |
(139 | ) | (349 | ) | (946 | ) | (1,644 | ) | ||||||||
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| Net loss, less participating securitiesβ share in earnings |
$ | (412,987 | ) | $ | (664,292 | ) | $ | (2,411,217 | ) | $ | (558,120 | ) | ||||
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| Depreciation and amortization |
79,396 | 95,648 | 509,524 | 676,132 | ||||||||||||
| (Gain) loss on sale of real estate |
(3,497 | ) | 2,024 | (478,693 | ) | 1,815 | ||||||||||
| Real estate impairment charges |
300,987 | 112,112 | 980,263 | 167,966 | ||||||||||||
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| Funds from operations |
$ | (36,101 | ) | $ | (454,508 | ) | $ | (1,400,123 | ) | $ | 287,793 | |||||
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| Write-off of billed and unbilled rent and other |
(332 | ) | 499,335 | 2,514 | 649,911 | |||||||||||
| Other impairment charges, net |
85,986 | 171,507 | 1,255,929 | 208,941 | ||||||||||||
| Litigation and other |
4,801 | 2,899 | 51,308 | 15,886 | ||||||||||||
| Share-based compensation adjustments |
ββ | (6,571 | ) | ββ | (9,691 | ) | ||||||||||
| Non-cash fair value adjustments |
52,194 | 8,405 | 563,666 | (34,157 | ) | |||||||||||
| Tax rate changes and other |
523 | (2,797 | ) | 5,119 | (167,332 | ) | ||||||||||
| Debt refinancing and unutilized financing costs (benefit) |
615 | (239 | ) | 4,292 | (285 | ) | ||||||||||
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| Normalized funds from operations |
$ | 107,686 | $ | 218,031 | $ | 482,705 | $ | 951,066 | ||||||||
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| Certain non-cash and related recovery information: |
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| Share-based compensation |
$ | 2,321 | $ | 10,102 | $ | 32,902 | $ | 42,941 | ||||||||
| Debt costs amortization |
$ | 5,292 | $ | 4,933 | $ | 20,061 | $ | 20,273 | ||||||||
| Non-cash rent and interest revenue (A) |
$ | ββ | $ | (57,920 | ) | $ | ββ | $ | (239,599 | ) | ||||||
| Cash recoveries of non-cash rent and interest revenue (B) |
$ | 542 | $ | 2,364 | $ | 7,382 | $ | 38,451 | ||||||||
| Straight-line rent revenue from operating and finance leases |
$ | (48,627 | ) | $ | (63,282 | ) | $ | (178,022 | ) | $ | (247,699 | ) | ||||
| Per diluted share data: |
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| Net loss, less participating securitiesβ share in earnings |
$ | (0.69 | ) | $ | (1.11 | ) | $ | (4.02 | ) | $ | (0.93 | ) | ||||
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| Depreciation and amortization |
0.14 | 0.16 | 0.86 | 1.13 | ||||||||||||
| (Gain) loss on sale of real estate |
(0.01 | ) | ββ | (0.80 | ) | ββ | ||||||||||
| Real estate impairment charges |
0.50 | 0.19 | 1.63 | 0.28 | ||||||||||||
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| Funds from operations |
$ | (0.06 | ) | $ | (0.76 | ) | $ | (2.33 | ) | $ | 0.48 | |||||
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| Write-off of billed and unbilled rent and other |
ββ | 0.83 | ββ | 1.09 | ||||||||||||
| Other impairment charges, net |
0.14 | 0.29 | 2.08 | 0.35 | ||||||||||||
| Litigation and other |
0.01 | ββ | 0.09 | 0.03 | ||||||||||||
| Share-based compensation adjustments |
ββ | (0.01 | ) | ββ | (0.02 | ) | ||||||||||
| Non-cash fair value adjustments |
0.09 | 0.01 | 0.94 | (0.06 | ) | |||||||||||
| Tax rate changes and other |
ββ | ββ | 0.01 | (0.28 | ) | |||||||||||
| Debt refinancing and unutilized financing costs (benefit) |
ββ | ββ | 0.01 | ββ | ||||||||||||
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| Normalized funds from operations |
$ | 0.18 | $ | 0.36 | $ | 0.80 | $ | 1.59 | ||||||||
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| Certain non-cash and related recovery information: |
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| Share-based compensation |
$ | ββ | $ | 0.02 | $ | 0.05 | $ | 0.07 | ||||||||
| Debt costs amortization |
$ | 0.01 | $ | 0.01 | $ | 0.03 | $ | 0.03 | ||||||||
| Non-cash rent and interest revenue (A) |
$ | ββ | $ | (0.10 | ) | $ | ββ | $ | (0.40 | ) | ||||||
| Cash recoveries of non-cash rent and interest revenue (B) |
$ | ββ | $ | ββ | $ | 0.01 | $ | 0.06 | ||||||||
| Straight-line rent revenue from operating and finance leases |
$ | (0.08 | ) | $ | (0.11 | ) | $ | (0.30 | ) | $ | (0.41 | ) | ||||
Notes:
Investors and analysts following the real estate industry utilize funds from operations (βFFOβ) as a supplemental performance measure. FFO, reflecting the assumption that real estate asset values rise or fall with market conditions, principally adjusts for the effects of GAAP depreciation and amortization of real estate assets, which assumes that the value of real estate diminishes predictably over time. We compute FFO in accordance with the definition provided by the National Association of Real Estate Investment Trusts, or Nareit, which represents net income (loss) (computed in accordance with GAAP), excluding gains (losses) on sales of real estate and impairment charges on real estate assets, plus real estate depreciation and amortization, including amortization related to in-place lease intangibles, and after adjustments for unconsolidated partnerships and joint ventures.
In addition to presenting FFO in accordance with the Nareit definition, we disclose normalized FFO, which adjusts FFO for items that relate to unanticipated or non-core events or activities or accounting changes that, if not noted, would make comparison to prior period results and market expectations less meaningful to investors and analysts. We believe that the use of FFO, combined with the required GAAP presentations, improves the understanding of our operating results among investors and the use of normalized FFO makes comparisons of our operating results with prior periods and other companies more meaningful. While FFO and normalized FFO are relevant and widely used supplemental measures of operating and financial performance of REITs, they should not be viewed as a substitute measure of our operating performance since the measures do not reflect either depreciation and amortization costs or the level of capital expenditures and leasing costs (if any not paid by our tenants) to maintain the operating performance of our properties, which can be significant economic costs that could materially impact our results of operations. FFO and normalized FFO should not be considered an alternative to net income (loss) (computed in accordance with GAAP) as indicators of our results of operations or to cash flow from operating activities (computed in accordance with GAAP) as an indicator of our liquidity.
Certain line items above (such as depreciation and amortization) include our share of such income/expense from unconsolidated joint ventures. These amounts are included with all activity of our equity interests in the βEarnings (loss) from equity interestsβ line on the consolidated statements of income.
| (A) | Includes revenue accrued during the period but not received in cash, such as deferred rent, payment -in-kind (βPIKβ) interest or other accruals. |
| (B) | Includes cash received to satisfy previously accrued non -cash revenue, such as the cash receipt of previously deferred rent or PIK interest. |
Exhibit 99.2
Exhibit 99.2 QUARTERLY SUPPLEMENTAL4Q 2024
3 COMPANY OVERVIEWCompany Informationβ3FINANCIAL INFORMATION6 Reconciliation of Funds from Operationsβ6 Debt Summaryβ7 Debt Maturities and Debt Metricsβ8PORTFOLIO INFORMATION Lease and Loan Maturity Scheduleβ99βTotal Assets and Revenues by Asset Type, Operator, State and Countryβ10 Rent Coverageβ13βSummary of Acquisitions, Active Developments, and Capital Addition Projectsβ15FINANCIAL STATEMENTSConsolidated Statements of Incomeβ1616 Consolidated Balance Sheetsβ17βInvestments in Unconsolidated Real EstateJoint Venturesβ18 Investments in Unconsolidated Operating Entitiesβ19AppendixβNon-GAAP Reconciliations 20FORWARD-LOOKING STATEMENTS This press release includes forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Forward-looking statements can generally be identified by the use of forward-looking words such as βmayβ, βwillβ, βwouldβ, βcouldβ, βexpectβ, βintendβ, βplanβ, βestimateβ, βtargetβ, βanticipateβ, βbelieveβ, βobjectivesβ, βoutlookβ, βguidanceβ or other similar words, and include statements regarding our strategies, objectives, asset sales and other liquidity transactions (including the use of proceeds thereof), expected re-tenanting of facilities and any related regulatory approvals, and expected outcomes from Prospectβs Chapter 11 restructuring process. Forward-looking statements involve known and unknown risks and uncertainties that may cause our actual results or future events to differ materially from those expressed in or underlying such forward-looking statements, including, but not limited to: (i) the risk that the outcome and terms of the bankruptcy restructuring of Prospect will not be consistent with those anticipated by the Company; (ii) our success in implementing our business strategy and our ability to identify, underwrite, finance, consummate and integrate acquisitions and investments; (iii) the risk that previously announced or contemplated property sales, loan repayments, and other capital recycling transactions do not occur as anticipated or at all; (iv) the risk that MPT is not able to attain its leverage, liquidity and cost of capital objectives within a reasonable time period or at all; (v) MPTβs ability to obtain or modify the terms of debt financing on attractive terms or at all, as a result of changes in interest rates and other factors, which may adversely impact its ability to pay down, refinance, restructure or extend its indebtedness as it becomes due, or pursue acquisition and development opportunities; (vi) the ability of our tenants, operators and borrowers to satisfy their obligations under their respective contractual arrangements with us; (vii) the ability of our tenants and operators to operate profitably and generate positive cash flow, remain solvent, comply with applicable laws, rules and regulations in the operation of our properties, to deliver high-quality services, to attract and retain qualified personnel and to attract patients; (viii) the risk that we are unable to monetize our investments in certain tenants at full value within a reasonable time period or at all; and (ix) the risks and uncertainties of litigation or other regulatory proceedings.The risks described above are not exhaustive and additional factors could adversely affect our business and financial performance, including the risk factors discussed under the section captioned βRisk Factorsβ in our Annual Report on Form 10-Ks and our Form 10-Qs, and as may be updated in our other filings with the SEC. Forward-looking statements are inherently uncertain and actual performance or outcomes may vary materially from any forward-looking statements and the assumptions on which those statements are based. Readers are cautioned to not place undue reliance on forward-looking statements as predictions of future events. We disclaim any responsibility to update such forward-looking statements, which speak only as of the date on which they were made.Pictured above: Policlinico di MonzaβMonza, ItalyβOperated by Policlinico di Monza.βOn the cover: MPT employees visiting Medical West Freestanding Emergency DepartmentβHoover, ALβOperated by Medical West.MEDICAL PROPERTIES TRUST | SUPPLEMENTAL INFORMATION | Q4 2024
COMPANY OVERVIEWM edical Properties Trust, Inc. is a self-advised real estate investment trust formed in 2003 to acquire and develop net-leased hospital facilities. From its inception in Birmingham, Alabama, the Company has grown to become one of the worldβs largest owners of hospital real estate. MPTβs financing model facilitates acquisitions and recapitalizations and allows operators of hospitals to unlock the value of their real estate assets to fund facility improvements, technology upgrades and other investments in operations.396 53 ~39,000 31 9properties operators beds U.S. states countriesMEDICAL PROPERTIES TRUST | SUPPLEMENTAL INFORMATION | Q4 2024
MPT OfficersEdward K. Aldag, Jr.βChairman, President and Chief Executive Officer R. Steven HamnerβExecutive Vice President and Chief Financial Officer J. Kevin HannaβSenior Vice President, Controller and Chief Accounting Officer Rosa H. HooperβSenior Vice President of Operations and Secretary Larry H. PortalβSenior Vice President, Senior Advisor to the CEOCharles R. LambertβSenior Vice President of Finance and Treasurer R. Lucas SavageβVice President, Head of Global AcquisitionsBoard of Directors Corporate HeadquartersEdward K. Aldag, Jr.G. Steven Dawson Medical Properties Trust, Inc.R. Steven Hamner1000 Urban Center Drive, Suite 501 Caterina A. Mozingo Birmingham, AL 35242Emily W. MurphyElizabeth N. Pitman (205) 969-3755D. Paul Sparks, Jr. (205) 969-3756 (fax)Michael G. Stewart www.medicalpropertiestrust.comC. Reynolds Thompson, IIIMEDICAL PROPERTIES TRUST | SUPPLEMENTAL INFORMATION | Q4 2024
INVESTOR RELATIONSDrew Babin Tim BerrymanHead of Financial Strategy and Investor Relations Managing Director of Investor Relations(646) 884-9809 [email protected] (205) 397-8589 [email protected] Stock Exchange Agent Listing and Trading SymbolEquiniti Trust Company, LLC New York Stock Exchange 6201 15th Avenue (NYSE): MPWBrooklyn, NY 11219https://equiniti.com/usGenesisCare HospitalβMΓ‘laga, SpainβOperated by GenesisCare.
FINANCIAL INFORMATION RECONCILIATION OF NET (LOSS) INCOME TO FUNDS FROM OPERATIONS(Unaudited)(Amounts in thousands, except per share data)For the Three Months Ended For the Twelve Months EndedDecember 31, 2024 December 31, 2023 December 31, 2024 December 31, 2023FFO INFORMATION:Net loss attributable to MPT common stockholders $ββββ(412,848) $ββββ(663,943) $ββββ(2,410,271) $ββββ(556,476)Participating securitiesβ share in earningsββββ(139)ββββ(349)ββββ(946)ββββ(1,644)Net loss, less participating securitiesβ share in earnings $ββββ(412,987) $ββββ(664,292) $ββββ(2,411,217) $ββββ(558,120)Depreciation and amortizationββββ79,396ββββ95,648ββββ 509,524ββββ 676,132 (Gain) loss on sale of real estateββββ(3,497)ββββ2,024ββββ(478,693)ββββ1,815 Real estate impairment chargesββββ 300,987ββββ 112,112ββββ 980,263ββββ 167,966Funds from operations $ββββ(36,101) $ββββ(454,508) $ββββ(1,400,123) $ββββ287,793 Write-off of billed and unbilled rent and otherββββ(332)ββββ 499,335ββββ2,514ββββ 649,911 Other impairment charges, netββββ85,986ββββ 171,507ββββ1,255,929ββββ 208,941 Litigation and otherββββ4,801ββββ2,899ββββ51,308ββββ15,886 Share-based compensation adjustmentsββββ βββββ(6,571)βββββββββ(9,691) Non-cash fair value adjustmentsββββ52,194ββββ8,405ββββ 563,666ββββ (34,157) Tax rate changes and otherββββ523ββββ(2,797)ββββ5,119ββββ(167,332) Debt refinancing and unutilized financing costs (benefit)ββββ615ββββ(239)ββββ4,292ββββ(285)Normalized funds from operations $ββββ107,686 $ββββ218,031 $ββββ482,705 $ββββ951,066 Certain non-cash and related recovery information:Share-based compensation $ββββ2,321 $ββββ 10,102 $ββββ 32,902 $ββββ 42,941 Debt costs amortization $ββββ5,292 $ββββ4,933 $ββββ 20,061 $ββββ 20,273 Non-cash rent and interest revenue (A) $βββββ$ββββ(57,920) $βββββ$ββββ(239,599) Cash recoveries of non-cash rent and interest revenue (B) $ββββ542 $ββββ2,364 $ββββ7,382 $ββββ 38,451 Straight-line rent revenue from operating and finance leases $ββββ(48,627) $ββββ(63,282) $ββββ(178,022) $ββββ(247,699)PER DILUTED SHARE DATA:Net loss, less participating securitiesβ share in earnings $ββββ(0.69) $ββββ(1.11) $ββββ(4.02) $ββββ(0.93)Depreciation and amortizationββββ0.14ββββ0.16ββββ0.86ββββ1.13 (Gain) loss on sale of real estateββββ(0.01)βββββββββ(0.80)ββββ -Real estate impairment chargesββββ0.50ββββ0.19ββββ1.63ββββ0.28Funds from operations $ββββ(0 .06) $ββββ(0 .76) $ββββ(2 .33) $ββββ0.48Write-off of billed and unbilled rent and otherβββββββββ0.83βββββββββ1.09 Other impairment charges, netββββ0.14ββββ0.29ββββ2.08ββββ0.35 Litigation and otherββββ0.01βββββββββ0.09ββββ0.03 Share-based compensation adjustmentsββββ βββββ(0.01)βββββββββ(0.02) Non-cash fair value adjustmentsββββ0.09ββββ0.01ββββ0.94ββββ(0.06) Tax rate changes and otherββββββββββββββ0.01ββββ(0.28) Debt refinancing and unutilized financing costs (benefit)ββββββββββββββ0.01ββββ -Normalized funds from operations $ββββ0.18 $ββββ0.36 $ββββ0.80 $ββββ1.59Certain non-cash and related recovery information:Share-based compensation $βββββ$ββββ0.02 $ββββ0.05 $ββββ0.07 Debt costs amortization $ββββ0.01 $ββββ0.01 $ββββ0.03 $ββββ0.03 Non-cash rent and interest revenue (A) $βββββ$ββββ(0.10) $βββββ$ββββ(0.40) Cash recoveries of non-cash rent and interest revenue (B) $βββββ$βββββ$ββββ0.01 $ββββ0.06 Straight-line rent revenue from operating and finance leases $ββββ(0.08) $ββββ(0.11) $ββββ(0.30) $ββββ(0.41)Notes:Investors and analysts following the real estate industry utilize funds from operations (βFFOβ) as a supplemental performance measure. FFO, reflecting the assumption that real estate asset values rise or fall with market conditions, principally adjusts for the effects of GAAP depreciation and amortization of real estate assets, which assumes that the value of real estate diminishes predictably over time. We compute FFO in accordance with the definition provided by the National Association of Real Estate Investment Trusts, or Nareit, which represents net income (loss) (computed in accordance with GAAP), excluding gains (losses) on sales of real estate and impairment charges on real estate assets, plus real estate depreciation and amortization, including amortization related to in-place lease intangibles, and after adjustments for unconsolidated partnerships and joint ventures.In addition to presenting FFO in accordance with the Nareit definition, we disclose normalized FFO, which adjusts FFO for items that relate to unanticipated or non-core events or activities or accounting changes that, if not noted, would make comparison to prior period results and market expectations less meaningful to investors and analysts. We believe that the use of FFO, combined with the required GAAP presentations, improves the understanding of our operating results among investors and the use of normalized FFO makes comparisons of our operating results with prior periods and other companies more meaningful. While FFO and normalized FFO are relevant and widely used supplemental measures of operating and financial performance of REITs, they should not be viewed as a substitute measure of our operating performance since the measures do not reflect either depreciation and amortization costs or the level of capital expenditures and leasing costs (if any not paid by our tenants) to maintain the operating performance of our properties, which can be significant economic costs that could materially impact our results of operations. FFO and normalized FFO should not be considered an alternative to net income (loss) (computed in accordance with GAAP) as indicators of our results of operations or to cash flow from operating activities (computed in accordance with GAAP) as an indicator of our liquidity.Certain line items above (such as depreciation and amortization) include our share of such income/expense from unconsolidated joint ventures. These amounts are included with all activity of our equity interests in the βEarnings (loss) from equity interestsβ line on the consolidated statements of income.(A) Includes revenue accrued during the period but not received in cash, such as deferred rent, payment-in-kind (βPIKβ) interest or other accruals.(B) Includes cash received to satisfy previously accrued non-cash revenue, such as the cash receipt of previously deferred rent or PIK interest.
FINANCIAL INFORMATION (As of December 31, 2024) ($ amounts in thousands)DEBT SUMMARYDebt Instrument(C) Rate Type Rate Balance2026 Credit Facility Revolver(A)(B) Variable 5.863%β7.497% $ββββ361,726 2027 Term Loan(B) Variable 7.457%ββββ200,0003.325% Notes Due 2025 (β¬500M)(A) Fixed 3.325%ββββ517,700 2025 GBP Term Loan (Ε493M)(A)(D) Fixed 3.699%ββββ617,0390.993% Notes Due 2026 (β¬500M)(A) Fixed 0.993%ββββ517,7005.250% Notes Due 2026 Fixed 5.250%ββββ500,0002.500% Notes Due 2026 (Ε500M)(A) Fixed 2.500%ββββ625,8005.000% Notes Due 2027 Fixed 5.000%ββββ1,400,0003.692% Notes Due 2028 (Ε600M)(A) Fixed 3.692%ββββ750,9604.625% Notes Due 2029 Fixed 4.625%ββββ900,0003.375% Notes Due 2030 (Ε350M)(A) Fixed 3.375%ββββ438,0603.500% Notes Due 2031 Fixed 3.500%ββββ1,300,000 2034 Secured GBP Term Loan (Ε631M)(A) Fixed 6.877%ββββ790,234 $ββββ8,919,219Debt issuance costs and discountββββ(71,107)Weighted average rate 4.238% $ββββ8,848,112Variable 6%Fixed 94%(A) Non-USD denominated debt converted to U.S. dollars at December 31, 2024.(B) We amended the Credit Facility agreement on August 6, 2024 which, among other things, reduced total revolving commitments to $1.28 billion. We further amended the Credit Facility agreement on February 13, 2025 which, among other things, reduced the borrowing spreads from 300 basis points to 225 basis points, provided notice to extend the maturity to June 30, 2027, subject to the satisfaction of other conditions, and provided for collateral pari passu with senior secured notes discussed in footnote C .(C) On February 13, 2025, we closed on a private offering that consisted of a $1.5 billion aggregate principal amount of senior secured notes due 2032 and β¬1.0 billion aggregate principal amount of senior secured notes due 2032. We used the net proceeds from these notes to fund the redemption of our 3.325% Notes due 2025, 2.500% Notes due 2026, and 5.250% Notes due 2026. We used the remaining net proceeds to pay down the revolving portion of our Credit Facility.(D) This term loan was fully paid off on January 15, 2025.
FINANCIAL INFORMATION (As of December 31, 2024) ($ amounts in thousands)DEBT MATURITIES(A)Senior Unsecured Year Term Loans/Revolver Total Debt % of Total Notes2025 $ββββ517,700 $ββββ617,039 $ββββ1,134,739 12.7% 2026ββββ1,643,500ββββ361,726ββββ2,005,226 22.5% 2027ββββ1,400,000ββββ200,000ββββ1,600,000 17.9% 2028ββββ750,960βββββββββ750,960 8.4% 2029ββββ900,000βββββββββ900,000 10.1% 2030ββββ438,060βββββββββ438,060 4.9% 2031ββββ1,300,000βββββββββ1,300,000 14.6% 2032βββββββββββββββ0.0% 2033βββββββββββββββ0.0% 2034βββββββββ790,234ββββ790,234 8.9%Totals $ββββ 6,950,220 $ββββ1,968,999 $ββββ 8,919,219 100.0%DEBT BY LOCAL CURRENCYSenior Unsecured Term Loans/Revolver Total Debt % of Total NotesUnited States $ββββ4,100,000 $ββββ248,000 $ββββ4,348,000 48.8% United Kingdomββββ1,814,820ββββ1,407,273ββββ3,222,093 36.1% Europeββββ1,035,400ββββ313,726ββββ1,349,126 15.1%Totals $ββββ 6,950,220 $ββββ1,968,999 $ββββ 8,919,219 100.0%DEBT METRICS For the Three Months Ended December 31, 2024Adjusted Net Debt to Annualized EBITDAre Ratios:Adjusted Net Debt $ββββ8,080,682 Adjusted Annualized EBITDAre $ββββ865,312Adjusted Net Debt to Adjusted Annualized EBITDAre Ratio 9.3xAdjusted Net Debt $ββββ8,080,682 Transaction Adjusted Annualized EBITDAre $ββββ865,508Adjusted Net Debt to Transaction Adjusted Annualized EBITDAre Ratio 9.3x Leverage Ratio:Unsecured Debt $ββββ8,128,985Secured Debtββββ790,234Total Debt $ββββ8,919,219 Total Gross Assets(B) $ββββ15,717,542Financial Leverage 56.7% Interest Coverage Ratio:Interest Expense $ββββ101,466Capitalized Interestββββ1,763 Debt Costs Amortizationββββ(5,081)Total Interest $ββββ98,148 Adjusted EBITDAre $ββββ216,328Adjusted Interest Coverage Ratio 2.2x(A) On February 13, 2025, we closed on a private offering that consisted of a $1.5 billion aggregate principal amount of senior secured notes due 2032 and β¬1.0 billion aggregate principal amount of senior secured notes due 2032. We used the net proceeds from these notes to fund the redemption of our 3.325% Notes due 2025, 2.500% Notes due 2026, and 5.250% Notes due 2026. We used the remaining net proceeds to pay down the revolving portion of our Credit Facility, which became secured in conjunction with the private offering in February 2025.(B) Total Gross Assets equals total assets plus accumulated depreciation and amortization.See appendix for reconciliation of Non-GAAP financial measures.
PORTFOLIO INFORMATION LEASE AND LOAN MATURITY SCHEDULE (A)($ amounts in thousands)(B) (C) (D) Percentage of Total Years of Maturities Total Properties Base Rent/Interest Base Rent/Interest2025ββββ3 $ββββ4,962 0.5% 2026ββββ2ββββ1,152 0.1% 2027ββββ3ββββ4,788 0.5% 2028ββββ8ββββ20,880 2.0% 2029ββββ6ββββ16,247 1.5% 2030ββββ9ββββ6,205 0.6% 2031ββββ4ββββ4,919 0.5% 2032ββββ22ββββ57,079 5.3% 2033ββββ5ββββ6,201 0.6% 2034ββββ15ββββ 108,437 10.2% Thereafterββββ296ββββ 837,301 78.2%ββββ373 # $ββββ1,068,171 100.0%Percentage of total base rent/interest100% 90%78.2% 80% 70% 60% 50% 40% 30% 20% 10.2% 10% 5.3%0.5% 0.1% 0.5% 2.0% 1.5% 0.6% 0.5% 0.6% 0%(A) Schedule includes leases and mortgage loans and related terms as of December 31, 2024.(B) Lease/Loan expiration is based on the fixed term of the lease/loan and does not factor in potential renewal or other options provided for in our agreements. (C) Reflects all properties, including those that are part of joint ventures, except vacant properties (less than 1% of total assets), facilities that are under development, and transitioning properties. (D) Represents base rent/interest income contractually owed per the lease/loan agreements on an annualized basis as of period end (including foreign currency exchange rates) but does not include tenant recoveries, additional rents and other lease-related adjustments to revenue (i.e., straight-line rents and deferred revenues), or any reserves or write-offs.
PORTFOLIO INFORMATION TOTAL ASSETS AND REVENUES BY ASSET TYPE(December 31, 2024) ($ amounts in thousands)Total Percentage ofββββQ4 2024 Percentage of Asset Types Properties (A) Assets Total Assets Revenues Q4 2024 RevenuesGeneral Acute Care Hospitals 173 $ββββ8,493,331 59.4% $ββββ137,705 59.4% Behavioral Health Facilities 69ββββ2,376,460 16.7%ββββ 51,586 22.2% Post Acute Care Facilities 133ββββ1,617,596 11.3%ββββ 40,542 17.5% Freestanding ER/Urgent Care Facilities 21ββββ117,331 0.8%ββββ2,011 0.9%Otherβββββββββ1,689,876 11.8%βββββββββ-Total 396 $ββββ14,294,594 100.0% $ββββ231,844 100.0%TOTAL ASSETS BY ASSET TYPE TOTAL REVENUES BY ASSET TYPE12% 1% 1%General Acute Care Hospitals 18% 11% Behavioral Health Facilities59%Post Acute Care Facilities 59% 17% 22%Freestanding ER/Urgent Care FacilitiesOtherDOMESTIC ASSETS BY ASSET TYPE DOMESTIC REVENUES BY ASSET TYPE13% 2% 2%General Acute Care HospitalsBehavioral Health Facilities 27% 13%54% 60% Post Acute Care Facilities12%Freestanding ER/Urgent Care Facilities 17%OtherNote: Investments in operating entities are allocated pro rata based on the gross book value of the real estate. Such pro rata allocations are subject to change from period to period. (A) Reflects total assets on our consolidated balance sheets.
PORTFOLIO INFORMATION TOTAL ASSETSβLARGEST INDIVIDUAL FACILITY(December 31, 2024)Largest IndividualββββOperators Facility as a Percentage of Total Assets(A)Circle Health 1.4% Priory Group 0.9% Healthcare Systems of America 1.9% Lifepoint Behavioral Health 0.5% Swiss Medical Network 1.6% 48 operators 1.7%Largest Individual Facility Investment is Less Than 2% of MPT Investment Portfolio MPT invests in real estate, not the consolidated financial performance of its tenants. Each facility is underwritten for characteristics that make the infrastructure attractive to any experienced, competent operatorβnot just the current tenant. If we have underwritten these correctly, then coupled with our absolute net master lease structure, our real estate will be attractive to a replacement operator, should we find it necesssary to transition. Such underwriting characteristics include:Physical Quality CompetitionDemographics Financial and MarketTOTAL ASSETS AND REVENUES BY OPERATOR(December 31, 2024) ($ amounts in thousands)Total Percentage of Q4 2024 Percentage of Operators Properties (A) Assets Total Assets Revenues Q4 2024 RevenuesCircle Health 36 $ββββ2,026,778 14.2% $ββββ51,589 22.3% Priory Group 37ββββ1,233,462 8.6%ββββ 25,228 10.9% Healthcare Systems of America 8ββββ1,187,006 8.3%βββββ0.0% Lifepoint Behavioral Health 19ββββ813,584 5.7%ββββ 20,082 8.7% Swiss Medical Network 19ββββ719,632 5.1%ββββ212 0.1% Prospect Medical Holdings 13ββββ685,772 4.8%βββββ0.0% Ernest Health 29ββββ617,320 4.3%ββββ 18,666 8.0% MEDIAN 81ββββ604,124 4.2%ββββ8,035 3.5% Lifepoint Health 8ββββ477,773 3.3%ββββ 15,214 6.6% Ramsay Health Care 8ββββ386,703 2.7%ββββ6,589 2.8% 43 operators 138ββββ3,852,564 27.0%ββββ 86,229 37.1% Otherβββββββββ1,689,876 (B) 11.8%βββββββββ β Total 396 $ββββ14,294,594 100.0% $ββββ231,844 100.0%Note: Investments in operating entities are allocated pro rata based on the gross book value of the real estate. Such pro rata allocations are subject to change from period to period. (A) Reflects total assets on our consolidated balance sheets.(B) Includes our PHP Holdings investment of approximately $150 million.
PORTFOLIO INFORMATION TOTAL ASSETS AND REVENUES BY U.S. STATE AND COUNTRY(December 31, 2024) ($ amounts in thousands)Total Percentage ofββββQ4 2024 Percentage of U.S. States and Other Countries Properties (A) Assets Total Assets Revenues Q4 2024 RevenuesTexas 48 $ββββ1,394,296 9.8% $ββββ23,318 10.1% California 17ββββ935,470 6.4%ββββ 16,834 7.3% Florida 6ββββ840,876 5.9%βββββ0.0% Arizona 10ββββ379,801 2.7%ββββ 10,674 4.6% Ohio 9ββββ327,577 2.3%ββββ6,783 2.9%26 Other States 83ββββ2,636,587 18.5%ββββ 64,507 27.8% Otherβββββββββ951,486 6.6%βββββββββ-United States 173 $ββββ7,466,093 52.2% $ββββ122,116 52.7%United Kingdom 92 $ββββ3,985,672 27.9% $ββββ90,144 38.9% Switzerland 19ββββ719,632 5.0%ββββ212 0.1% Germany 85ββββ672,343 4.7%ββββ 10,056 4.3% Spain 9ββββ247,996 1.7%ββββ2,903 1.3% Other Countries 18ββββ464,468 3.3%ββββ6,413 2.7% Otherβββββββββ738,390 5.2%βββββββββ-International 223 $ββββ6,828,501 47.8% $ββββ109,728 47.3% Total 396 $ββββ14,294,594 100.0% $ββββ231,844 100.0%Note: Investments in operating entities are allocated pro rata based on the gross book value of the real estate. Such pro rata allocations are subject to change from period to period. (A) Reflects total assets on our consolidated balance sheets.TOTAL ASSETS BY COUNTRY TOTAL REVENUES BY COUNTRY5% 1% 3% 3% 2%5% United States 4%5% United Kingdom 52% SwitzerlandGermany 39% 53% 28% Spain Other Countries OtherASSETS BY U.S. STATE REVENUES BY U.S. STATETexas6%10% California 10% FloridaArizona 7%6% 28% 19% Ohio6% 26 Other States 5%2% 3% Other 3%
PORTFOLIO INFORMATION TOTAL PORTFOLIO TTM EBITDARM(A)(B) RENT COVERAGEYoY and SEQUENTIAL QUARTER COMPARISONS BY PROPERTY TYPEEBITDARM Rent Coverage3.00x2.9x2.8x2.50x 2.5x2.4x2.3x2.1x 2.1x2.0x2.00x 2.0x1.7x 1.8x1.7x1.50x1.00x0.50x0.00xGeneral Acute Care Hospitals Post Acute Care Facilities (C) Behavioral Health Total Portfolio Facilities Q3 2023 TTM Q2 2024 TTM Q3 2024 TTM% of Total Assets(D)59.4% 11.3% 16.7% 87.4%Notes: All data presented is on a trailing twelve month (βTTMβ) basis. For properties acquired in the preceding twelve months, data is for the period between MPT acquisition and September 30, 2024. (A) EBITDARM is facility-level earnings before interest, taxes, depreciation, amortization, rent and management fees. EBITDARM includes normal GAAP expensed maintenance and repair costs. EBITDARM does not give effect for capitalized expenditures that extend the life or improve the facility and equipment to increase revenues at the facility. The majority of these types of capital expenditures are financed and do not have an immediate cash impact. MPTβs rent has priority and is not subordinate to capitalized expenses. In addition, EBITDARM does not represent property net income or cash flows from operations and should not be considered an alternative to those indicators. EBITDARM figures utilized in calculating coverages presented are based on financial information provided by MPTβs tenants. MPT has not independently verified this information, but has no reason to believe this information is inaccurate in any material respect. TTM Coverages are calculated based on actual, unadjusted EBITDARM results as presented in tenant financial reporting and cash rent paid to MPT, except as noted below.- All CARES Act Grants received by tenants have been removed from the tenantβs reported financial results in the above time periods.- EBITDARM figures for California hospitals include amounts expected to be received under the Hospital Quality Assurance Fee (βHQAFβ) Program 8. The HQAF amounts are based on the current payment model from the California Hospital Association which was approved by CMS on December 19, 2023.(B) General Acute Care coverages, Behavioral Health coverages and Total Portfolio coverages do not include Prospect Medical Holdings (PMH) facilities due to restructuring, and former Steward Health Care facilities due to re-tenanting.(C) Post Acute Care Facilities property type includes both Inpatient Rehabilitation Hospitals and Long Term Acute Care Hospitals. (D) Reflects percentage of total assets on December 31, 2024 balance sheet.
PORTFOLIO INFORMATION TOTAL PORTFOLIO TTM EBITDARM RENT COVERAGE EXCLUSIVE OF ALL CARES ACT GRANTSEBITDARM RENT COVERAGE: OPERATORS WITH PROPERTY-LEVEL REPORTINGNet InvestmentTenant (A) Primary Property Type TTM EBITDARM Rent Coverage (in thousands)Priory Group $ββββ1,194,722 Behavioral 2.3x Prospect Medical Holdings(B)ββββ685,772 General Acute N/A MEDIANββββ604,124 Post Acute 1.8x Ernest Healthββββ617,320 Post Acute 2.1x Aspris Childrenβs Servicesββββ235,272 Behavioral 2.2x Surgery Partnersββββ211,968 General Acute 7.7x Pipeline Health Systemββββ208,923 General Acute 2.1x Vibra Healthcareββββ190,939 Post Acute 1.7x Prime Healthcareββββ161,058 General Acute 1.5x IMED Hospitalesββββ120,971 General Acute 2.0x Cordiant Healthcare Servicesββββ 88,032 General Acute 0.7x Ardent Health Servicesββββ 82,680 General Acute 7.6x Other Reporting Tenantsββββ433,504 Various 3.1xTotal $ββββ4,835,285 2.5x(C)Net InvestmentTenant (A) Primary Property Type TTM EBITDARM Rent Coverage (in thousands)International Operator 1 $ββββ1,982,073 General Acute 2.6x Domestic Operator 1ββββ477,773 General Acute 2.2x Domestic Operator 2ββββ366,508 General Acute / Post Acute 1.6x Domestic Operator 3ββββ813,584 Behavioral 1.7xTotal $ββββ3,639,938 2.2xPROPERTY-LEVEL REPORTING NOT REQUIRED AND/OR NOT AVAILABLENet InvestmentTenant (A) Primary Property Type Comments (in thousands)U.S. hospital operator with eight community hospitals across Healthcare Systems of America $ββββ1,124,551 General Acute three states Swiss Medical Networkββββ483,770 General Acute Second largest group of private hospitals in Switzerland One of largest health care operators in the world; Parent Ramsay Health Care UKββββ386,703 General Acute guaranty; Investment grade-ratedPihlajalinnaββββ197,323 General Acute One of Finlandβs leading providers of social and health services U.S. hospital operator with twelve community hospitals across Quorum Healthββββ142,417 General Acute nine states One of Arizonaβs largest nonprofit healthcare systems; Honor Healthββββ136,645 General Acute Investment grade-rated Saint LukeβsβKansas Cityββββ123,035 General Acute Investment grade-rated One of the largest nonprofit health care operators in the U.S.; CommonSpirit Healthββββ113,202 General Acute Investment grade-rated NHSββββ 84,164 General Acute Single-payor government entity in UKU.S. hospital operator with four hospitals in Southern California College Healthββββ 61,831 General Acute / Behavioral and one in ArizonaU.S. hospital operator with nine medical centers across four Insight Healthββββ 57,581 General Acute / Post Acute statesU.S. hospital operator with nine behavioral health hospitals; NeuroPsychiatric Hospitalsββββ 26,264 Behavioral Parent guaranty Community Health Systemsββββ 25,198 General Acute U.S. hospital operator with substantial operating historyTotal $ββββ2,962,684Above data represents approximately 92% of MPT Total Real Estate InvestmentNotes: All data presented is on a trailing twelve month (βTTMβ) basis. For properties acquired in the preceding twelve months, data is for the period between MPT acquisition and September 30, 2024. (A) Investment figures exclude equity investments, non-real estate loans, freestanding ER/urgent care facilities, and facilities under development.(B) Net Investment inclusive of all Prospect facilities. Coverage not available due to restructuring. (C) Coverage excludes Prospect.
PORTFOLIO INFORMATION SUMMARY OF ACTIVE DEVELOPMENT AND CAPITAL ADDITION PROJECTS AS OF DECEMBER 31, 2024(A)(Amounts in thousands)Costs Incurred as ofββββEstimated Construction Operator Location Commitment Cost Remaining December 31, 2024 Completion DateLifepoint Behavioral Arizona $ββββ 10,504 $ββββ5,411 $ββββ5,093 1Q25 Lifepoint Behavioral Kansasββββ20,183ββββ11,584ββββ8,599 2Q25 Surgery Partners Idahoββββ15,993ββββ5,590ββββ10,403 2Q25 Lifepoint Behavioral Arizonaββββ10,659ββββ470ββββ10,189 1Q26 IMED Hospitales Spainββββ49,749ββββ21,355ββββ28,394 3Q26 IMED Hospitales Spainββββ36,294ββββ29,261ββββ7,033 TBD Other Variousββββ799ββββ494ββββ305 Various $ββββ144,181 $ββββ 74,165 $ββββ 70,016 (A) In Q4 2024, we received our certificate of occupancy and commenced rent on one capital addition project; however, we still expect approximately $9 million of costs related to this project. In addition to the above projects, the costs of which will be included in lease bases upon which the lessees will pay rent, we are also constructing two hospitals for which there is no presently-identified lessee; these projects were both expected to be replacement hospitals leased to Steward Health Care System. We are presently completing construction to the stage where the building is βweathered inβ and environmentally secure so as to physically protect our investment while we actively market the hospitals for sale or lease. As of December 31, 2024, we estimate that the cost to complete construction to this stage approximates $30 million and will be complete during the first half of 2025. If we agree to lease terms for any prospective tenant we expect such terms will include construction specifications of such prospective lessee, and we may elect to fund such completion for addition to the final lease base upon which we would be paid rent. Alternatively, we may elect to sell one or both of the facilities, in which case we would not expect to incur material additional costs.Since approximately 2022, we have planned and commenced construction of a built-to-suit headquarters facility and estimate its completion and occupancy by 2025βs fourth quarter. Total costs to complete, including furnishings, interior buildout, relocation and other costs are estimated to be between $90 million and $95 million.
FINANCIAL STATEMENTS CONSOLIDATED STATEMENTS OF INCOME(Unaudited)(Amounts in thousands, except per share data)For the Three Months Ended For the Twelve Months EndedDecember 31, 2024 December 31, 2023 December 31, 2024 December 31, 2023 REVENUESRent billed $ββββ166,965 $ββββ 78,421 $ββββ719,749 $ββββ803,375 Straight-line rentββββ 43,695ββββ(166,769)ββββ 163,414ββββ(127,894) Income from financing leasesββββ9,819ββββ19,412ββββ63,651ββββ 127,141 Interest and other incomeββββ 11,365ββββ (53,447)ββββ48,733ββββ69,177 Total revenuesββββ231,844ββββ(122,383)ββββ 995,547ββββ 871,799EXPENSESInterestββββ 101,466ββββ 102,338ββββ 417,824ββββ 411,171 Real estate depreciation and amortizationββββ 64,956ββββ77,295ββββ 447,657ββββ 603,360 Property-related(A)ββββ9,780ββββ3,298ββββ27,255ββββ41,567 General and administrativeββββ28,489ββββ30,150ββββ 133,789ββββ 145,588 Total expensesββββ204,691ββββ 213,081ββββ1,026,525ββββ1,201,686OTHER (EXPENSE) INCOMEGain (loss) on sale of real estateββββ3,497ββββ(2,024)ββββ 478,693ββββ(1,815) Real estate and other impairment charges, netββββ(386,973)ββββ(283,619)ββββ(1,825,402)ββββ(376,907) Earnings (loss) from equity interestsββββ2,923ββββ (20,873)ββββ(366,642)ββββ13,967 Debt refinancing and unutilized financing (costs) benefitββββ(615)ββββ239ββββ(4,292)ββββ285 Other (including fair value adjustments on securities)ββββ (48,744)ββββ (17,861)ββββ(615,565)ββββ7,586 Total other expenseββββ(429,912)ββββ(324,138)ββββ(2,333,208)ββββ(356,884)Loss before income taxββββ(402,759)ββββ(659,602)ββββ(2,364,186)ββββ(686,771) Income tax (expense) benefitββββ(9,563)ββββ(3,982)ββββ (44,101)ββββ 130,679Net lossββββ(412,322)ββββ(663,584)ββββ(2,408,287)ββββ(556,092)Net income attributable to non-controlling interestsββββ(526)ββββ(359)ββββ(1,984)ββββ(384)Net loss attributable to MPT common stockholders $ββββ(412,848) $ββββ(663,943) $ββββ(2,410,271) $ββββ(556,476)EARNINGS PER COMMON SHAREβBASIC AND DILUTEDNet loss attributable to MPT common stockholders $ββββ (0.69) $ββββ(1.11) $ββββ(4.02) $ββββ(0.93)WEIGHTED AVERAGE SHARES OUTSTANDINGβBASICββββ600,402ββββ598,984ββββ600,248ββββ598,518 WEIGHTED AVERAGE SHARES OUTSTANDINGβDILUTEDββββ600,402ββββ598,984ββββ600,248ββββ598,518 $βββββ$ββββ-DIVIDENDS DECLARED PER COMMON SHARE $ββββ0.08 $ββββ0.15 $ββββ0.46 $ββββ0.88(A) Includes $3.9 million and $0.7 million of ground lease and other expenses (such as property taxes and insurance) paid directly by us and reimbursed by our tenants for the three months ended December 31, 2024 and 2023, respectively, and $13.7 million and $29.3 million for the twelve months ended December 31, 2024 and 2023, respectively.
FINANCIAL STATEMENTS CONSOLIDATED BALANCE SHEETS(Amounts in thousands, except per share data)December 31, 2024 December 31, 2023(Unaudited) (A) ASSETSReal estate assetsLand, buildings and improvements, intangible lease assets, and other $ββββ 11,259,842 $ββββ 13,237,187 Investment in financing leasesββββ1,057,770ββββ1,231,630 Real estate held for saleββββ34,019ββββ-Mortgage loansββββ119,912ββββ309,315Gross investment in real estate assetsββββ12,471,543ββββ14,778,132Accumulated depreciation and amortizationββββ(1,422,948)ββββ(1,407,971)Net investment in real estate assetsββββ11,048,595ββββ13,370,161Cash and cash equivalentsββββ332,335ββββ250,016 Interest and rent receivablesββββ36,327ββββ45,059 Straight-line rent receivablesββββ700,783ββββ635,987 Investments in unconsolidated real estate joint venturesββββ1,156,397ββββ1,474,455 Investments in unconsolidated operating entitiesββββ439,578ββββ1,778,640 Other loansββββ109,175ββββ292,615 Other assetsββββ471,404ββββ457,911Total Assets $ββββ14,294,594 $ββββ18,304,844LIABILITIES AND EQUITY LiabilitiesDebt, net $ββββ8,848,112 $ββββ 10,064,236 Accounts payable and accrued expensesββββ454,209ββββ412,178 Deferred revenueββββ29,445ββββ37,962 Obligations to tenants and other lease liabilitiesββββ129,045ββββ156,603 Total Liabilitiesββββ9,460,811ββββ10,670,979Equity Preferred stock, $0.001 par value. Authorized 10,000 shares; no shares outstandingβββββββββ-Common stock, $0.001 par value. Authorized 750,000 shares; issued and outstanding β600,403 shares at December 31, 2024 and 598,991 shares at December 31, 2023ββββ600ββββ599 Additional paid-in capitalββββ8,584,917ββββ8,560,309 Retained deficitββββ(3,658,516)ββββ(971,809) Accumulated other comprehensive (loss) incomeββββ(94,272)ββββ42,501 Total Medical Properties Trust, Inc. Stockholdersβ Equityββββ4,832,729ββββ7,631,600 Non-controlling interestsββββ1,054ββββ2,265Total Equityββββ4,833,783ββββ7,633,865Total Liabilities and Equity $ββββ14,294,594 $ββββ18,304,844(A) Financials have been derived from the prior year audited financial statements.
FINANCIAL STATEMENTSINVESTMENTS IN UNCONSOLIDATED REAL ESTATE JOINT VENTURES(As of and for the three months ended December 31, 2024) (Unaudited) ($ amounts in thousands)Swiss Medical HM MEDIAN(B) (C) CommonSpirit(D) Policlinico di Monza(E) (F) Total MPT Pro Rata Share Network HospitalesGross real estate $ββββ1,843,219 $ββββ1,563,851 $ββββ1,264,657 $ββββ173,551 $ββββ350,554 $ββββ5,195,832 $ββββ2,576,995 Cashββββ 35,433ββββ2,934ββββ48ββββ11,507ββββ2,010ββββ51,932ββββ26,440 Accumulated depreciation and amortizationββββ(271,610)ββββ(180,192)βββββββββ(35,213)ββββ(37,975)ββββ(524,990)ββββ(296,635) Other assetsββββ 60,426ββββ63,719ββββ11,738ββββ5,200ββββ9,061ββββ150,144ββββ84,428Total Assets $ββββ1,667,468 $ββββ1,450,312 $ββββ1,276,443 $ββββ155,045 $ββββ323,650 $ββββ4,872,918 $ββββ2,391,228Debt (third party) $ββββ677,252 $ββββ647,838 $ββββ770,000 $ββββββ$ββββ134,058 $ββββ2,229,148 $ββββ1,044,939 Other liabilitiesββββ126,288ββββ111,374ββββ53,636ββββ(139)ββββ 78,771ββββ369,930ββββ189,892(A)Equity and shareholder loansββββ863,928ββββ691,100ββββ452,807ββββ155,184ββββ110,821ββββ2,273,840ββββ1,156,397Total Liabilities and Equity $ββββ1,667,468 $ββββ1,450,312 $ββββ1,276,443 $ββββ155,045 $ββββ323,650 $ββββ4,872,918 $ββββ2,391,228MPT share of real estate joint venture 50% 70% 25% 50% 45%Total $ββββ431,964 $ββββ483,770 $ββββ 113,202 $ββββ77,592 $ββββ49,869 $ββββ1,156,397 Swiss Medical HM MEDIAN(B) (C) CommonSpirit(D) Policlinico di Monza(E) (F) Total MPT Pro Rata Share Network HospitalesTotal revenues $ββββ32,962 $ββββ21,753 $ββββ24,141 $ββββ5,153 $ββββ3,783 $ββββ87,792 $ββββ42,035Other expenses (income):Property-related $ββββ623 $ββββ1,503 $ββββ43 $ββββ1,028 $ββββ65 $ββββ3,262 $ββββ 1,917 Interestββββ 13,101ββββ3,821ββββ13,163βββββββββ525ββββ 30,610ββββ 12,759 Real estate depreciation and amortizationββββ 11,154ββββ 10,453βββββββββ 1,022ββββ2,015ββββ 24,644ββββ 14,312 General and administrativeββββ929ββββ301βββββββββ(49)ββββ14ββββ1,195ββββ657 Fair value adjustmentsββββββββββββββ26,180ββββββββββββββ26,180ββββ6,558 Non-controlling interest expenseββββββββββββββ(26)ββββββββββββββ(26)ββββ(6) Income taxesββββ4,379ββββ813ββββββββββββββ297ββββ5,489ββββ2,893Total other expenses (income) $ββββ30,186 $ββββ16,891 $ββββ39,360 $ββββ2,001 $ββββ2,916 $ββββ91,354 $ββββ39,090Net Income $ββββ2,776 $ββββ4,862β$ββββ (15,219) $ββββ3,152 $ββββ 867β$ββββ(3,562) $ββββ2,945 MPT share of real estate joint venture 50% 70% 25% 50% 45%Earnings (loss) from equity interests $ββββ1,388 $ββββ3,403 $ββββ(3,812) $ββββ1,576 $ββββ390 $ββββ 2,945 (G)(A) Includes a β¬309 million loan from both shareholders.(B) MPT managed joint venture of 71-owned German facilities that are fully leased.(C) Represents ownership in Infracore, which owns and leases 17 Switzerland facilities. We also have two Infracore facilities currently under development.(D) On April 12, 2024, we closed a joint venture on five properties in Utah operated by CommonSpirit for which we hold a 25% interest accounted for under the equity method. We are recording our share of income on a quarterly lag basis. The joint venture elected to apply specialized accounting and reporting for investment companies under Topic 946, which measures the underlying investments at fair value. For this quarter, our share of the joint ventureβs unfavorable fair value adjustment was ($6.6) million, primarily related to the interest rate swap.(E) Represents ownership in eight Italian facilities that are fully leased. (F) Represents ownership in two Spanish facilities that are fully leased. (G) Excludes amortization of equity investment costs.
FINANCIAL STATEMENTS INVESTMENTS IN UNCONSOLIDATED OPERATING ENTITIES(Amounts in thousands)OPERATING ENTITY INVESTMENT FRAMEWORKMPTβs hospital expertise and comprehensive underwriting process allows for opportunistic investments in hospital operations.β’ Passive investments typically needed in order to acquire the larger real estate β’ Certain of these investments entitle us to customary minority rights and transactions. protections.β’ Cash payments go to previous owner and not to the tenant, with limited β’ Typically, no additional operating loss exposure beyond our investment. exceptions.β’ Proven track record of successful investments, including Ernest Health, Capella β’ Operators are vetted as part of our overall underwriting process.Healthcare and Springstone. β’ Potential for outsized returns and organic growth.Investment Ownership Operator as ofββββStructure Interest December 31, 2024Includes our passive equity ownership interest, along with a CHF 37 million loan as part of a syndicated Swiss Medical Network $ββββ172,453 8.9% loan facility. Includes a 49% equity ownership interest in, along with a loan convertible into PHP Holdings, the PHP Holdingsββββ149,027 49.0% managed care business of Prospect. Both instruments are accounted for under the fair value option method.Includes our passive equity ownership interest in Aevis, a public healthcare investment company. Our Aevisββββ63,409 4.6% original investment of CHF 47 million is marked-to-market quarterly.In order to close the 2021 acquisition of 35 facilities, we made a passive equity investment and a loan to Priory Groupββββ38,739 9.2% Priory (a subsidiary of MEDIAN) proceeds of which were paid to the former owner. The loan was sold in the first quarter of 2024. Includes our passive equity ownership interest in Aspris, a spin-off of Prioryβs education and childrenβs Asprisββββ15,950 9.2% services line of business. Total $ββββ439,578INVESTMENTS IN UNCONSOLIDATED OPERATING ENTITIES AS A PERCENTAGE OF TOTAL ASSETS7%3%97%
APPENDIXβNON-GAAP RECONCILIATIONSADJUSTED NET DEBT/ANNUALIZED EBITDAre(Unaudited)(Amounts in thousands)For the Three Months Ended December 31, 2024ADJUSTED EBITDAre RECONCILIATIONNet loss $ββββ(412,322)Add back:Interestββββ101,466 Income taxββββ9,563 Depreciation and amortizationββββ 66,204 Gain on sale of real estateββββ (3,497) Real estate impairment chargesββββ300,987 Adjustment to reflect MPTβs share of unlevered EBITDAre from unconsolidated real estate joint ventures(A)ββββ 8,3424Q 2024 EBITDAre $ββββ70,743 Share-based compensationββββ 2,321 Write-off of billed and unbilled rent and otherββββ(332) Other impairment charges, netββββ85,986 Litigation and otherββββ 4,801 Debt refinancing and unutilized financing costsββββ615Non-cash fair value adjustmentsββββ52,194 Annualized4Q 2024 Adjusted EBITDAre $ββββ216,328 $ββββ865,312 Adjustments for mid-quarter investment activity(B)ββββ494Q 2024 Transaction Adjusted EBITDAre $ββββ216,377 $ββββ865,508ADJUSTED NET DEBT RECONCILIATION Total debt at December 31, 2024 $ββββ 8,848,112 Less: Cash at December 31, 2024ββββ(332,335) Less: Cash funded for development and capital addition projects at December 31, 2024(C)ββββ(435,095) Adjusted Net Debt $ββββ 8,080,682Investors and analysts following the real estate industry utilize net debt (debt less cash) to EBITDAre as a measurement of leverage that shows how many years it would take for us to pay back our debt, assuming net debt and EBITDAre are held constant. In our calculation, we start with EBITDAre , as defined by Nareit, which is net income before interest expense, income tax expense, depreciation and amortization, losses/gains on disposition of depreciated property, impairment losses, and adjustments to reflect our share of EBITDAre from unconsolidated real estate joint ventures. We then adjust EBITDAre for non-cash share-based compensation, non-cash fair value adjustments and other items that would make comparison of our operating results with prior periods and other companies more meaningful, to derive Adjusted EBITDAre . We adjust net debt for cash funded for building improvements in progress and construction in progress for which we are not yet receiving rent to derive Adjusted Net Debt. We adjust Adjusted EBITDAre for the effects from investments and capital transactions that were completed during the period, assuming such transactions were consummated/fully funded as of the beginning of the period to derive Transaction Adjusted EBITDAre . Although non-GAAP measures, we believe Adjusted Net Debt, Adjusted EBITDAre , and Transaction Adjusted EBITDAre are useful to investors and analysts as they allow for a more current view of our credit quality and allow for the comparison of our credit strength between periods and to other real estate companies without the effect of items that by their nature are not comparable from period to period. (A) Includes only the unlevered portion of our share of EBITDAre from unconsolidated real estate joint ventures, as we have excluded any net debt from our unconsolidated real estate joint ventures in the Adjusted Net Debt line. We believe this adjustment is needed to appropriately reflect the relationship between EBITDAre and net debt.(B) Reflects a full quarter impact from our mid-quarter investments, disposals, and loan payoffs.(C) Reflects development and capital improvement projects that are in process and not yet generating a cash return.
1000 Urban Center Drive, Suite 501 Birmingham, AL 35242 (205) 969-3755 NYSE: MPW www.medicalpropertiestrust.comContact:Drew Babin, Head of Financial Strategy and Investor Relations (646) 884-9809 or [email protected] orTim Berryman, Managing Director of Investor Relations (205) 397-8589 or [email protected]