8-K

 

 

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

 

 

FORM 8-K

 

 

CURRENT REPORT

PURSUANT TO SECTION 13 OR 15(d)

OF THE SECURITIES EXCHANGE ACT OF 1934

Date of report (Date of earliest event reported): May 3, 2018

 

 

MEDICAL PROPERTIES TRUST, INC.

(Exact Name of Registrant as Specified in Charter)

 

 

Commission File Number 001-32559

 

Maryland   20-0191742

(State or other jurisdiction of

incorporation or organization)

 

(I.R.S. Employer

Identification No.)

1000 Urban Center Drive, Suite 501

Birmingham, AL

  35242
(Address of principal executive offices)   (Zip Code)

Registrant’s telephone number, including area code

(205) 969-3755

 

 

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))

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).

Emerging growth company  ☐

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.  ☐

 

 

 


Item 2.02. Results of Operations and Financial Condition.

On May 3, 2018, Medical Properties Trust, Inc. issued a press release announcing its financial results for the quarter ended March 31, 2018. 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 “filed” 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.

 

Item 9.01. Financial Statements and Exhibits.

(d) Exhibits.

 

Exhibit

Number

  

Description

99.1    Press release dated May 3, 2018 reporting financial results for the quarter ended March 31, 2018
99.2    Medical Properties Trust, Inc. 1st Quarter 2018 Supplemental Information

 

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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: May 3, 2018

EX-99.1

Exhibit 99.1

 

LOGO

 

Contact: Tim Berryman
Director – Investor Relations
Medical Properties Trust, Inc.
(205) 969-3755
tberryman@medicalpropertiestrust.com

MEDICAL PROPERTIES TRUST, INC. REPORTS FIRST QUARTER RESULTS

Per Share Net Income of $0.25 and Normalized FFO of $0.36 Up 19% and 9% Respectively Compared to Prior Year Quarter

Birmingham, AL – May 3, 2018 – Medical Properties Trust, Inc. (the “Company” or “MPT”) (NYSE: MPW) today announced financial and operating results for the first quarter ended March 31, 2018 and recent highlights.

“After a record year in 2017, MPT raised its quarterly dividend by over 4 percent in the first quarter making this the fourth consecutive year that the Company has increased its payout to shareholders,” said Edward K. Aldag, Jr., MPT’s Chairman, President and Chief Executive Officer. “Our consistent dividend growth has contributed to superior total shareholder returns and is the result of strongly accretive acquisitions. The Company has experienced extraordinary growth over the past five years, increasing total assets at a compound rate of over 33 percent annually, and our pipeline is very strong.”

FIRST QUARTER AND RECENT HIGHLIGHTS

 

    Net income of $0.25 and Normalized Funds from Operations (“NFFO”) of $0.36 in the first quarter both on a per diluted share basis;

 

    Completed construction of a 40-bed, 50,985 square foot rehabilitation hospital in Flagstaff, Arizona operated by Ernest Health (“Ernest”) for a total investment of approximately $24 million; commenced rent on March 1st;

 

    Entered into a 15-year lease agreement in March with a joint venture formed by Vibra Healthcare and Ernest for an LTAC hospital in Boise, Idaho; lease has three 5-year renewal options;

 

    Increased quarterly dividend by 4.2% to $0.25 making 2018 the fourth consecutive year that MPT has increased its dividend;

 

    Added Elizabeth Pitman to Company’s Board of Directors in February.

Aldag commented on the election of Elizabeth Pitman to MPT’s Board of Directors and the recent promotions of two senior team members. “MPT will benefit greatly from Elizabeth’s addition to the Board. Her extensive healthcare and legal experience together with her expertise in cyber security is critical and complements the Board’s needs. The sustainability of MPT

 

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depends in part on the career growth of our people. In the first quarter, we were very pleased to announce the promotion of Rosa Hooper to Vice President and Managing Director, Asset Management and Underwriting in recognition of the outstanding job she has done managing MPT’s largest department. We were delighted to also announce the promotion of Charles Lambert to Treasurer and Managing Director, Capital Markets as an acknowledgement of his significant contribution to the Company over the past 12 years.”

Included in the financial tables accompanying this press release is information about the Company’s assets and liabilities, net income and reconciliations of net income to NFFO, all on a basis comparable to 2017 results. In addition, a reconciliation of pro forma total gross assets to total assets is included in the financial tables accompanying this press release.

PORTFOLIO UPDATE

The Company has pro forma total gross assets of approximately $9.5 billion, including $6.6 billion in general acute care hospitals, $2.1 billion in inpatient rehabilitation hospitals, and $0.4 billion in long-term acute care hospitals. This pro forma portfolio includes 275 properties representing more than 32,000 licensed beds in 29 states and in Germany, the United Kingdom, Italy and Spain. The properties are leased to or mortgaged by 31 hospital operating companies.

OPERATING RESULTS AND OUTLOOK

Net income for the first quarter of 2018 was $90.6 million (or $0.25 per diluted share), compared to $68.0 million (or $0.21 per diluted share) in the first quarter of 2017.

NFFO for the first quarter of 2018 increased 24% to $131.5 million compared with $105.9 million in the first quarter of 2017. Per share NFFO increased 9% to $0.36 per diluted share in the first quarter of 2018, compared with $0.33 per diluted share in the first quarter of 2017.

On January 1, 2018, the Company adopted new accounting rules, which resulted in an increase in general and administrative expenses for the first quarter. Certain third party transaction costs that were previously accounted for as acquisition expenses are now capitalized. With this accounting change, MPT will no longer charge indirect and internal transaction costs as acquisition expenses.

The Company reaffirms its NFFO estimates for 2018. Net income is expected to range from $1.00 to $1.04 per diluted share, while NFFO is expected to range from $1.42 to $1.46 per diluted share. This estimate assumes no additional acquisitions or investments, no asset sales and no material capital transactions. The Company also reaffirmed its expectations that it will complete negotiations of certain joint venture arrangements during the first half of 2018. However, there is no assurance that any such arrangements will be completed.

A reconciliation of NFFO guidance to net income is included with the financial tables accompanying this press release.

These estimates do not include the effects, if any, of unexpected real estate operating costs, changes in accounting pronouncements, litigation costs, debt refinancing costs, acquisition costs, currency exchange rate movements, interest rate hedging activities, write-offs of straight-line

 

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rent or other non-recurring or unplanned transactions, including the previously mentioned joint venture arrangements. These estimates may change if the Company acquires or sells assets, market interest rates change, debt is refinanced, new shares are issued, additional debt is incurred, other operating expenses vary, income from investments in tenant operations vary from expectations, or existing leases do not perform in accordance with their terms.

CONFERENCE CALL AND WEBCAST

The Company has scheduled a conference call and webcast for Thursday, May 3, 2018 at 11:00 a.m. Eastern Time to present the Company’s financial and operating results for the quarter ended March 31, 2018. The dial-in numbers for the conference call are 855-365-5214 (U.S.) and 440-996-5721 (international); both numbers require passcode 2449648. The conference call will also be available via webcast in the Investor Relations’ section of the Company’s website, www.medicalpropertiestrust.com.

A telephone and webcast replay of the call will be available beginning shortly after the call’s completion through May 17, 2018. Dial-in numbers for the replay are 855-859-2056 and 404-537-3406 for U.S. and International callers, respectively. The replay passcode for both U.S. and international callers is 2449648.

The Company’s supplemental information package for the current period will also be available on the Company’s website under the “Investor Relations” section.

About Medical Properties Trust, Inc.

Medical Properties Trust, Inc. is a self-advised real estate investment trust formed to capitalize on the changing trends in healthcare delivery by acquiring and developing net-leased healthcare facilities. MPT’s financing model helps facilitate acquisitions and recapitalizations and allows operators of hospitals and other healthcare facilities to unlock the value of their real estate assets to fund facility improvements, technology upgrades and other investments in operations. Facilities include acute care hospitals, inpatient rehabilitation hospitals, long-term acute care hospitals, and other medical and surgical facilities. For more information, please visit the Company’s website at www.medicalpropertiestrust.com.

The statements in this press release that are forward looking are based on current expectations and actual results or future events may differ materially. Words such as “expects,” “believes,” “anticipates,” “intends,” “will,” “should” and variations of such words and similar expressions are intended to identify such forward-looking statements. Forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause the actual results of the Company or future events to differ materially from those expressed in or underlying such forward-looking statements, including without limitation: the satisfaction of all conditions to, and the timely closing (if at all) of pending transactions; net income per share for 2018; NFFO per share for 2018; the amount of acquisitions of healthcare real estate, if any; results from potential sales and joint venture arrangements, if any; capital markets conditions; estimated leverage metrics; the repayment of debt arrangements; statements concerning the additional income to the Company as a result of ownership interests in certain hospital operations and the timing of such income; the payment of future dividends, if any; completion of additional debt arrangements, and additional investments; national and international economic, business, real estate and other market conditions; the competitive environment in which the Company

 

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operates; the execution of the Company’s business plan; financing risks; the Company’s ability to maintain its status as a REIT for income tax purposes; acquisition and development risks; potential environmental and other liabilities; and other factors affecting the real estate industry generally or healthcare real estate in particular. For further discussion of the factors that could affect outcomes, please refer to the “Risk factors” section of the Company’s Annual Report on Form 10-K for the year ended December 31, 2017 and as updated by the Company’s subsequently filed Quarterly Reports on Form 10-Q and other SEC filings. Except as otherwise required by the federal securities laws, the Company undertakes no obligation to update the information in this press release.

# # #

 

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MEDICAL PROPERTIES TRUST, INC. AND SUBSIDIARIES

Consolidated Balance Sheets

 

(Amounts in thousands, except for per share data)    March 31, 2018     December 31, 2017  
     (Unaudited)     (A)  

Assets

    

Real estate assets

    

Land, buildings and improvements, intangible lease assets, and other

   $ 5,867,286     $ 5,944,220  

Mortgage loans

     1,927,393       1,778,316  

Net investment in direct financing leases

     686,024       698,727  
  

 

 

   

 

 

 

Gross investment in real estate assets

     8,480,703       8,421,263  

Accumulated depreciation and amortization

     (493,782     (455,712
  

 

 

   

 

 

 

Net investment in real estate assets

     7,986,921       7,965,551  

Cash and cash equivalents

     138,314       171,472  

Interest and rent receivables

     81,965       78,970  

Straight-line rent receivables

     202,317       185,592  

Other assets

     622,323       618,703  
  

 

 

   

 

 

 

Total Assets

   $ 9,031,840     $ 9,020,288  
  

 

 

   

 

 

 

Liabilities and Equity

    

Liabilities

    

Debt, net

   $ 4,898,364     $ 4,898,667  

Accounts payable and accrued expenses

     206,891       211,188  

Deferred revenue

     15,549       18,178  

Lease deposits and other obligations to tenants

     57,847       57,050  
  

 

 

   

 

 

 

Total Liabilities

     5,178,651       5,185,083  

Equity

    

Preferred stock, $0.001 par value. Authorized 10,000 shares; no shares outstanding

     —         —    

Common stock, $0.001 par value. Authorized 500,000 shares; issued and outstanding - 364,695 shares at March 31, 2018 and 364,424 shares at December 31, 2017

     365       364  

Additional paid-in capital

     4,333,972       4,333,027  

Distributions in excess of net income

     (484,804     (485,932

Accumulated other comprehensive loss

     (9,961     (26,049

Treasury shares, at cost

     (777     (777
  

 

 

   

 

 

 

Total Medical Properties Trust, Inc. Stockholders’ Equity

     3,838,795       3,820,633  
  

 

 

   

 

 

 

Non-controlling interests

     14,394       14,572  
  

 

 

   

 

 

 

Total Equity

     3,853,189       3,835,205  
  

 

 

   

 

 

 

Total Liabilities and Equity

   $ 9,031,840     $ 9,020,288  
  

 

 

   

 

 

 

(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  
     March 31, 2018     March 31, 2017  

Revenues

    

Rent billed

   $ 128,011     $ 96,763  

Straight-line rent

     15,791       12,779  

Income from direct financing leases

     17,681       17,880  

Interest and fee income

     43,563       28,975  
  

 

 

   

 

 

 

Total revenues

     205,046       156,397  

Expenses

    

Interest

     57,023       38,029  

Real estate depreciation and amortization

     35,802       27,586  

Property-related

     2,184       1,328  

General and administrative

     17,818       13,197  

Acquisition costs

     —         2,756  
  

 

 

   

 

 

 

Total expenses

     112,827       82,896  

Other income (expense)

    

Gain on sale of real estate, net

     1,467       7,413  

Debt refinancing costs

     —         (13,629

Other

     (1,468     1,767  
  

 

 

   

 

 

 

Total other income (expense)

     (1     (4,449
  

 

 

   

 

 

 

Income before income tax

     92,218       69,052  

Income tax expense

     (1,175     (867
  

 

 

   

 

 

 

Net income

     91,043       68,185  

Net income attributable to non-controlling interests

     (442     (215
  

 

 

   

 

 

 

Net income attributable to MPT common stockholders

   $ 90,601     $ 67,970  
  

 

 

   

 

 

 

Earnings per common share - basic and diluted:

    

Net income attributable to MPT common stockholders

   $ 0.25     $ 0.21  
  

 

 

   

 

 

 

Weighted average shares outstanding - basic

     364,882       321,057  

Weighted average shares outstanding - diluted

     365,343       321,423  

Dividends declared per common share

   $ 0.25     $ 0.24  


MEDICAL PROPERTIES TRUST, INC. AND SUBSIDIARIES

Reconciliation of Net Income to Funds From Operations

(Unaudited)

 

(Amounts in thousands, except for per share data)    For the Three Months Ended  
     March 31, 2018     March 31, 2017  

FFO information:

    

Net income attributable to MPT common stockholders

   $ 90,601     $ 67,970  

Participating securities’ share in earnings

     (195     (125
  

 

 

   

 

 

 

Net income, less participating securities’ share in earnings

   $ 90,406     $ 67,845  

Depreciation and amortization (A)

     36,517       28,099  

Gain on sale of real estate, net

     (1,467     (7,413
  

 

 

   

 

 

 

Funds from operations

   $ 125,456     $ 88,531  

Write-off of straight-line rent and other

     6,059       1,117  

Debt refinancing costs

     —         13,629  

Acquisition costs, net of tax benefit (A)

     —         2,645  
  

 

 

   

 

 

 

Normalized funds from operations

   $ 131,515     $ 105,922  

Share-based compensation

     1,856       1,971  

Debt costs amortization

     1,789       1,617  

Straight-line rent revenue and other (A)

     (23,425     (16,482
  

 

 

   

 

 

 

Adjusted funds from operations

   $ 111,735     $ 93,028  
  

 

 

   

 

 

 

Per diluted share data:

    

Net income, less participating securities’ share in earnings

   $ 0.25     $ 0.21  

Depreciation and amortization (A)

     0.09       0.09  

Gain on sale of real estate, net

     —         (0.02
  

 

 

   

 

 

 

Funds from operations

   $ 0.34     $ 0.28  

Write-off of straight-line rent and other

     0.02       —    

Debt refinancing costs

     —         0.04  

Acquisition costs, net of tax benefit (A)

     —         0.01  
  

 

 

   

 

 

 

Normalized funds from operations

   $ 0.36     $ 0.33  

Share-based compensation

     0.01       0.01  

Debt costs amortization

     —         —    

Straight-line rent revenue and other (A)

     (0.06     (0.05
  

 

 

   

 

 

 

Adjusted funds from operations

   $ 0.31     $ 0.29  
  

 

 

   

 

 

 

(A) Includes our share of real estate depreciation, acquisition expenses and straight-line rent revenue from unconsolidated joint ventures. These amounts are included with the activity of all of our equity interests in the “Other” line on the consolidated statements of income.

Investors and analysts following the real estate industry utilize funds from operations, or FFO, 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 and after adjustments for unconsolidated partnerships and joint ventures.

In addition to presenting FFO in accordance with the NAREIT definition, we also 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 necessary 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 financial performance or to cash flow from operating activities (computed in accordance with GAAP) as an indicator of our liquidity.

We calculate adjusted funds from operations, or AFFO, by subtracting from or adding to normalized FFO (i) unbilled rent revenue, (ii) non-cash share-based compensation expense, and (iii) amortization of deferred financing costs. AFFO is an operating measurement that we use to analyze our results of operations based on the receipt, rather than the accrual, of our rental revenue and on certain other adjustments. We believe that this is an important measurement because our leases generally have significant contractual escalations of base rents and therefore result in recognition of rental income that is not collected until future periods, and costs that are deferred or are non-cash charges. Our calculation of AFFO may not be comparable to AFFO or similarly titled measures reported by other REITs. AFFO should not be considered as an alternative to net income (calculated pursuant to GAAP) as an indicator of our results of operations or to cash flow from operating activities (calculated pursuant to GAAP) as an indicator of our liquidity.


MEDICAL PROPERTIES TRUST, INC. AND SUBSIDIARIES

Fiscal Year 2018 Guidance Reconciliation

(Unaudited)

 

     Fiscal Year 2018 Guidance - Per Share(1)  
     Low      High  

Net income attributable to MPT common stockholders

   $ 1.00      $ 1.04  

Participating securities’ share in earnings

     —          —    
  

 

 

    

 

 

 

Net income, less participating securities’ share in earnings

   $ 1.00      $ 1.04  

Depreciation and amortization

     0.40        0.40  
  

 

 

    

 

 

 

Funds from operations

   $ 1.40      $ 1.44  

Other adjustments

     0.02        0.02  
  

 

 

    

 

 

 

Normalized funds from operations

   $ 1.42      $ 1.46  
  

 

 

    

 

 

 

 

  (1) The guidance is based on current expectations and actual results or future events may differ materially from those expressed in this table, which is a forward-looking statement within the meaning of the federal securities laws. Please refer to the forward-looking statement included in this press release and our filings with the Securities and Exchange Commission for a discussion of risk factors that affect our performance.

Pro Forma Total Gross Assets

(Unaudited)

 

     March 31, 2018  

Total Assets

   $ 9,031,840  

Add:

  

Binding real estate commitments on new investments(2)

     17,500  

Unfunded amounts on development deals and commenced capital improvement projects(3)

     139,799  

Accumulated depreciation and amortization

     493,782  

Less:

  

Cash and cash equivalents

     (138,314
  

 

 

 

Pro Forma Total Gross Assets(4)

   $ 9,544,607  
  

 

 

 

 

  (2) Reflects a commitment to acquire a facility post March 31, 2018.
  (3) Includes $123.6 million unfunded amounts on ongoing development projects and $16.2 million unfunded amounts on capital improvement projects and development projects that have commenced rent.
  (4) Pro forma total gross assets is total assets before accumulated depreciation/amortization, assumes all real estate binding commitments on new investments and unfunded amounts on development deals and commenced capital improvement projects are fully funded, and assumes cash on hand is fully used in these transactions. We believe pro forma total gross assets is useful to investors as it provides a more current view of our portfolio and allows for a better understanding of our concentration levels as our binding commitments close and our other commitments are fully funded.

 

 

EX-99.2

Exhibit 99.2

 

LOGO

MEDICAL PROPERTIES TRUST Supplemental Information


LOGO

MEDICALPROPERTIESTRUST.COM TABLE OF CONTENTS     COMPANY OVERVIEW Company Information3 FINANCIAL INFORMATION Reconciliation of Net Income to Funds from Operations5 Debt Summary6 Debt Maturity Schedule7 Pro Forma Net Debt /Annualized Adjusted EBITDA8 PORTFOLIO INFORMATION Lease and Mortgage Loan Maturity Schedule9 Total Pro Forma Gross Assets and Actual Revenue by Asset Type, Operator, State and Country10 EBITDAR to Rent Coverage13 Summary of Acquisitions and Development Projects14 FINANCIAL STATEMENTS Consolidated Statements of Income15 Consolidated Balance Sheets16    FORWARD-LOOKING STATEMENT Forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause the actual results of the Company or future events to differ materially from those expressed in or underlying such forward-looking statements, including without limitation: Normalized FFO per share; expected payout ratio, the amount of acquisitions of healthcare real estate, if any; estimated debt metrics, portfolio diversification, capital markets conditions, the repayment of debt arrangements; statements concerning the additional income to the Company as a result of ownership interests in certain hospital operations and the timing of such income; the payment of future dividends, if any; completion of additional debt arrangement, and additional investments; national and international economic, business, real estate and other market conditions; the competitive environment in which the Company operates; the execution of the Company’s business plan; financing risks; the Company’s ability to maintain its status as a REIT for federal income tax purposes; acquisition and development risks; potential environmental and other liabilities; and other factors affecting the real estate industry generally or healthcare real estate in particular. For further discussion of the factors that could affect outcomes, please refer to the “Risk Factors” section of the Company’s Annual Report on Form 10-K for the year ended December 31, 2017, and as updated by the Company’s subsequently filed Quarterly Reports on Form 10-Q and other SEC filings. Except as otherwise required by the federal securities laws, the Company undertakes no obligation to update the information in this report. On the Cover: Renderings and photo of Circle Birmingham, an MPT-owned hospital now under construction in Birmingham, U.K.    Q1 2018 | SUPPLEMENTAL INFORMATION                2


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COMPANY OVERVIEW Medical Properties Trust, Inc. is a Birmingham, Alabama based self-advised real estate investment trust formed to capitalize on the changing trends in healthcare delivery by acquiring and developing net-leased healthcare facilities. MPT’s financing model allows hospitals and other healthcare facilities to unlock the value of their underlying real estate in order to fund facility improvements, technology upgrades, staff additions and new construction. Facilities include acute care hospitals, inpatient rehabilitation hospitals, long-term acute care hospitals, and other medical and surgical facilities. OFFICERS Edward K. Aldag, Jr. Chairman, President and Chief Executive Officer R. Steven Hamner Executive Vice President and Chief Financial Officer Emmett E. McLean Executive Vice President, Chief Operating Officer and Secretary J. Kevin Hanna Vice President, Controller and Chief Accounting Officer Rosa H. Hooper Vice President, Managing Director of Asset Management and Underwriting Charles R. Lambert Treasurer and Managing Director of Capital Markets BOARD OF DIRECTORS Edward K. Aldag, Jr. G. Steven Dawson    R. Steven Hamner Elizabeth N. Pitman D. Paul Sparks, Jr. Michael G. Stewart C. Reynolds Thompson, III CORPORATE HEADQUARTERS Medical Properties Trust, Inc. 1000 Urban Center Drive, Suite 501 Birmingham, AL 35242 (205) 969-3755 MPT Officers: R. Steven Hamner, Emmett E. McLean, Edward K. Aldag, Jr., (205) 969-3756 (fax) Rosa H. Hooper, J. Kevin Hanna and Charles R. Lambert www.medicalpropertiestrust.com Q1 2018 | SUPPLEMENTAL INFORMATION                3


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COMPANY OVERVIEW (continued) INVESTOR RELATIONS    CAPITAL MARKETS Tim Berryman Charles Lambert Director—Investor RelationsTreasurer and Managing Director—Capital Markets (205) 397-8589 tberryman@medicalpropertiestrust.com(205) 397-8897 clambert@medicalpropertiestrust.com TRANSFER AGENTSTOCK EXCHANGESENIOR UNSECURED LISTING ANDDEBT RATINGS and American Trust Company Stock TransferTRADING SYMBOLMoody’s – Ba1 6201 15th AvenueNew York Stock ExchangeStandard & Poor’s – BBB- Brooklyn, NY 11219(NYSE): MPW CONTINUUM OF CARE Medical Properties Trust focuses on the most critical components of healthcare delivery.    ACUTE CARE HOSPITALS & FREE STANDING EMERGENCY ROOMS INPATIENT REHABILITATION FACILITIES LONG-TERM ACUTE CARE HOSPITALS NURSING HOMES ASSISTED LIVING HOME HEALTH CARE MPT facility types shown in green.    INTENSITY OF CARE NURSING HOMES LOWER ASSISTED LIVING HOME HEALTH CARE LONG-TERM ACUTE CARE HOSPITALS INPATIENT REHABILITATION FACILITIES ACUTE CARE HOSPITALS REHIGH Q1 2018 | SUPPLEMENTAL INFORMATION                4


MEDICALPROPERTIESTRUST.COM

 

 

FINANCIAL INFORMATION     

 

 

RECONCILIATION OF NET INCOME TO FUNDS FROM OPERATIONS    

(Unaudited)    

(Amounts in thousands, except per share data)    

 

     For the Three Months Ended  
     March 31, 2018     March 31, 2017  

FFO INFORMATION:

    

Net income attributable to MPT common stockholders

   $ 90,601     $ 67,970  

Participating securities’ share in earnings

     (195     (125
  

 

 

   

 

 

 

Net income, less participating securities’ share in earnings

   $ 90,406     $ 67,845  

Depreciation and amortization (A)

     36,517       28,099  

Gain on sale of real estate, net

     (1,467     (7,413
  

 

 

   

 

 

 

Funds from operations

   $ 125,456     $ 88,531  

Write-off of straight-line rent and other

     6,059       1,117  

Debt refinancing costs

     —         13,629  

Acquisition costs, net of tax benefit (A)

     —         2,645  
  

 

 

   

 

 

 

Normalized funds from operations

   $ 131,515     $ 105,922  
  

 

 

   

 

 

 

Share-based compensation

     1,856       1,971  

Debt costs amortization

     1,789       1,617  

Straight-line rent revenue and other (A)

     (23,425     (16,482
  

 

 

   

 

 

 

Adjusted funds from operations

   $ 111,735     $ 93,028  
  

 

 

   

 

 

 

PER DILUTED SHARE DATA:

    

Net income, less participating securities’ share in earnings

   $ 0.25     $ 0.21  

Depreciation and amortization (A)

     0.09       0.09  

Gain on sale of real estate, net

     —         (0.02
  

 

 

   

 

 

 

Funds from operations

   $ 0.34     $ 0.28  

Write-off of straight-line rent and other

     0.02       —    

Debt refinancing costs

     —         0.04  

Acquisition costs, net of tax benefit (A)

     —         0.01  
  

 

 

   

 

 

 

Normalized funds from operations

   $ 0.36     $ 0.33  
  

 

 

   

 

 

 

Share-based compensation

     0.01       0.01  

Debt costs amortization

     —         —    

Straight-line rent revenue and other (A)

     (0.06     (0.05
  

 

 

   

 

 

 

Adjusted funds from operations

   $ 0.31     $ 0.29  
  

 

 

   

 

 

 

 

(A) Includes our share of real estate depreciation, acquisition expenses, and straight-line rent revenue from unconsolidated joint ventures. These amounts are included with the activity of all of our equity interests in the “Other” line on the consolidated statements of income.

Investors and analysts following the real estate industry utilize funds from operations, or FFO, 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 and after adjustments for unconsolidated partnerships and joint ventures.

In addition to presenting FFO in accordance with the NAREIT definition, we also 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 necessary 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 financial performance or to cash flow from operating activities (computed in accordance with GAAP) as an indicator of our liquidity.

We calculate adjusted funds from operations, or AFFO, by subtracting from or adding to normalized FFO (i) unbilled rent revenue, (ii) non-cash share-based compensation expense, and (iii) amortization of deferred financing costs. AFFO is an operating measurement that we use to analyze our results of operations based on the receipt, rather than the accrual, of our rental revenue and on certain other adjustments. We believe that this is an important measurement because our leases generally have significant contractual escalations of base rents and therefore result in recognition of rental income that is not collected until future periods, and costs that are deferred or are non-cash charges. Our calculation of AFFO may not be comparable to AFFO or similarly titled measures reported by other REITs. AFFO should not be considered as an alternative to net income (calculated pursuant to GAAP) as an indicator of our results of operations or to cash flow from operating activities (calculated pursuant to GAAP) as an indicator of our liquidity.

 

Q1 2018  |  SUPPLEMENTAL INFORMATION     5


MEDICALPROPERTIESTRUST.COM

 

 

FINANCIAL INFORMATION

 

 

DEBT SUMMARY

(as of March 31, 2018)

($ amounts in thousands)

 

Debt Instrument

   Rate Type      Rate     Balance  

2021 Credit Facility Revolver

     Variable        2.970% - 3.130   $ 795,000  

2021 Credit Facility Revolver (GBP) (A)

     Variable        1.770     12,614  

2022 Term Loan

     Variable        3.290     200,000  

4.000% Notes Due 2022 (Euro) (B)

     Fixed        4.000     616,200  

6.375% Notes Due 2024

     Fixed        6.375     500,000  

5.500% Notes Due 2024

     Fixed        5.500     300,000  

3.325% Notes Due 2025 (Euro) (B)

     Fixed        3.325     616,200  

5.250% Notes Due 2026

     Fixed        5.250     500,000  

5.000% Notes Due 2027

     Fixed        5.000     1,400,000  
       

 

 

 
        $ 4,940,014  

Debt issuance costs

          (41,650
     

 

 

   

 

 

 
     Weighted average rate        4.470   $ 4,898,364  
     

 

 

   

 

 

 

 

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(A) Represents credit facility borrowings in pound sterling and converted to U.S. dollars at March 31, 2018.

(B) Represents bonds issued in euros and converted to U.S. dollars at March 31, 2018.

 

Q1 2018  |  SUPPLEMENTAL INFORMATION     6


MEDICALPROPERTIESTRUST.COM

 

 

FINANCIAL INFORMATION

 

 

DEBT MATURITY SCHEDULE

($ amounts in thousands)

 

Debt Instrument

  2018     2019     2020     2021     2022     2023     2024     2025     2026     2027  

2021 Credit Facility Revolver

  $ —       $ —       $ —       $ 795,000     $ —       $ —       $ —       $ —       $ —       $ —    

2021 Credit Facility Revolver (GBP)

    —         —         —         12,614       —         —         —         —         —         —    

2022 Term Loan

    —         —         —         —         200,000       —         —         —         —         —    

4.000% Notes Due 2022 (Euro)

    —         —         —         —         616,200       —         —         —         —         —    

6.375% Notes Due 2024

    —         —         —         —         —         —         500,000       —         —         —    

5.500% Notes Due 2024

    —         —         —         —         —         —         300,000       —         —         —    

3.325% Notes Due 2025 (Euro)

    —         —         —         —         —         —         —         616,200       —         —    

5.250% Notes Due 2026

    —         —         —         —         —         —         —         —         500,000       —    

5.000% Notes Due 2027

    —         —         —         —         —         —         —         —         —         1,400,000  
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 
  $ —       $ —       $ —       $ 807,614     $ 816,200     $ —       $ 800,000     $ 616,200     $ 500,000     $ 1,400,000  
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

 

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Q1 2018  |  SUPPLEMENTAL INFORMATION     7


MEDICALPROPERTIESTRUST.COM

 

 

FINANCIAL INFORMATION

 

 

PRO FORMA NET DEBT / ANNUALIZED ADJUSTED EBITDA

(Unaudited)

(Amounts in thousands)

 

     For the Three Months Ended  
     March 31, 2018  

Net income attributable to MPT common stockholders

   $ 90,601  

Pro forma adjustments for mid-quarter acquisitions and acquisitions that occurred after the period (A)

     1,390  
  

 

 

 

Pro forma net income

   $ 91,991  

Add back:

  

Interest

     57,023  

Depreciation and amortization

     38,574  

Stock-based compensation

     1,856  

Gain on sale of real estate, net

     (1,467

Write-off of straight-line rent and other

     6,059  

Income tax expense

     1,175  
  

 

 

 

1Q 2018 Pro forma adjusted EBITDA

   $ 195,211  
  

 

 

 

Annualization (B)

   $ 798,984  
  

 

 

 

Total debt

   $ 4,898,364  

Pro forma changes to cash and debt balance after March 31, 2018 (A)

     (155,936
  

 

 

 

Pro forma net debt

   $ 4,742,428  
  

 

 

 

Pro forma net debt / annualized adjusted EBITDA

     5.9x  

 

(A) The schedule reflects our previously disclosed commitment to acquire one RCCH facility for $17.5 million.
(B) Annualization is adjusted for certain timing differences included in net income.

Investors and analysts following the real estate industry utilize net debt (debt less cash) to EBITDA (net income before interest expense, income taxes, depreciation and amortization) as a measurement of leverage that shows how many years it would take for us to pay back our debt, assuming net debt and EBITDA are held constant. The table above considers the pro forma effects on net debt and EBITDA from investments and capital transactions that were either completed during the period or disclosed as firm commitments, assuming such transactions were consummated/fully funded as of the beginning of the period. In addition, we show EBITDA adjusted to exclude stock compensation expense, gains or losses on real estate and other dispositions, debt refinancing charges, and impairment charges to derive Pro forma Annualized Adjusted EBITDA, which is a non-GAAP measure. We believe Pro forma Net Debt and Pro forma Annualized Adjusted EBITDA 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.

 

Q1 2018  |  SUPPLEMENTAL INFORMATION     8


MEDICALPROPERTIESTRUST.COM

 

 

PORTFOLIO INFORMATION     

 

 

LEASE AND MORTGAGE LOAN MATURITY SCHEDULE    

(as of March 31, 2018)    

($ amounts in thousands)    

 

Years of Maturities (A)

   Total Properties (B)      Base Rent/Interest (C)      Percent of Total
Base Rent/Interest
 

2018

     10      $ 5,367        0.7

2019

     4        9,211        1.3

2020

     1        2,050        0.3

2021

     3        13,675        1.9

2022

     15        75,445        10.4

2023

     4        13,150        1.8

2024

     1        2,320        0.3

2025

     7        23,352        3.2

2026

     6        26,995        3.8

2027

     1        3,051        0.4

2028

     5        7,106        1.0

Thereafter

     199        542,523        74.9
  

 

 

    

 

 

    

 

 

 
     256      $ 724,245        100.0
  

 

 

    

 

 

    

 

 

 

 

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(A) Lease/Loan expiration is based on the fixed term of the lease/loan and does not factor in potential renewal options provided for in our agreements.
(B) Includes properties currently subject to either a lease or mortgage loan; however, the schedule specifically excludes two facilities that are under development, Twelve Oaks facility that is not fully occupied, and nine properties owned through joint venture arrangements. The schedule reflects our previously disclosed commitment to acquire one RCCH facility for $17.5M.
(C) Represents base rent/interest income on an annualized basis but does not include tenant recoveries, additional rents and other lease-related adjustments to revenue (i.e., straight-line rents and deferred revenues).

 

Q1 2018  |  SUPPLEMENTAL INFORMATION     9


MEDICALPROPERTIESTRUST.COM

 

 

PORTFOLIO INFORMATION

 

 

TOTAL PRO FORMA GROSS ASSETS AND ACTUAL REVENUE BY ASSET TYPE

(March 31, 2018)

($ amounts in thousands)

 

Asset Types

   Total Pro Forma
Gross Assets (B)
     Percentage of
Pro Forma
Gross Assets
    YTD Actual
Revenue
     Percentage of
Total Actual
Revenue
 

General Acute Care Hospitals (A)

   $ 6,649,810        69.7   $ 145,797        71.1

Inpatient Rehabilitation Hospitals

     2,064,586        21.6     50,159        24.5

Long-Term Acute Care Hospitals

     364,116        3.8     9,090        4.4

Other assets

     466,095        4.9     —          —    
  

 

 

    

 

 

   

 

 

    

 

 

 

Total

   $ 9,544,607        100.0   $ 205,046        100.0
  

 

 

    

 

 

   

 

 

    

 

 

 

 

LOGO

 

(A) Includes three medical office buildings.
(B) Represents investment concentration as a percentage of gross real estate assets, other loans, and equity investments, assuming all binding real estate commitments on new investments and unfunded amounts on development deals and commenced capital improvement projects are fully funded. See press release dated May 3, 2018 for reconciliation of total assets to pro forma total gross assets at March 31, 2018.

 

Q1 2018  |  SUPPLEMENTAL INFORMATION     10


MEDICALPROPERTIESTRUST.COM

 

 

PORTFOLIO INFORMATION

 

 

TOTAL PRO FORMA GROSS ASSETS AND ACTUAL REVENUE BY OPERATOR    

(March 31, 2018)

($ amounts in thousands)

 

Operators

   Total Pro Forma
Gross Assets (A)
     Percentage of
Pro Forma
Gross Assets
    YTD Actual
Revenue
     Percentage of
Total Actual
Revenue
 

Steward

   $ 3,459,275        36.2   $ 73,227        35.7

MEDIAN

     1,261,991        13.2     29,088        14.2

Prime Healthcare

     1,120,737        11.7     31,778        15.5

Ernest Health

     612,112        6.4     16,416        8.0

RCCH

     506,265        5.3     9,537        4.7

26 operators

     2,118,132        22.3     45,000        21.9

Other assets

     466,095        4.9     —          —    
  

 

 

    

 

 

   

 

 

    

 

 

 

Total

   $ 9,544,607        100.0   $ 205,046        100.0
  

 

 

    

 

 

   

 

 

    

 

 

 

 

(A) Represents investment concentration as a percentage of gross real estate assets, other loans, and equity investments, assuming all binding real estate commitments on new investments and unfunded amounts on development deals and commenced capital improvement projects are fully funded. See press release dated May 3, 2018 for reconciliation of total assets to pro forma total gross assets at March 31, 2018.

 

LOGO

 

Q1 2018  |  SUPPLEMENTAL INFORMATION     11


MEDICALPROPERTIESTRUST.COM

 

 

PORTFOLIO INFORMATION

 

 

TOTAL PRO FORMA GROSS ASSETS AND ACTUAL REVENUE BY U.S. STATE AND COUNTRY

(March 31, 2018)

($ amounts in thousands)

 

U.S. States and Other Countries

   Total Pro Forma
Gross Assets (A)
     Percentage of
Pro Forma
Gross Assets
    YTD Actual
Revenue
     Percentage of
Total Actual
Revenue
 

Massachusetts

   $ 1,298,226        13.6   $ 26,940        13.1

Texas

     1,260,795        13.2     30,355        14.8

Utah

     1,035,748        10.9     20,871        10.2

California

     542,873        5.7     16,666        8.1

Arizona

     489,185        5.1     11,386        5.6

24 Other States

     2,616,686        27.4     60,037        29.3

Other assets

     402,841        4.2     —          —    
  

 

 

    

 

 

   

 

 

    

 

 

 

United States

   $ 7,646,354        80.1   $ 166,255        81.1

Germany

   $ 1,623,755        17.0   $ 37,665        18.4

Italy

     99,532        1.0     —          —    

United Kingdom

     84,804        0.9     993        0.4

Spain

     26,908        0.3     133        0.1

Other assets

     63,254        0.7     —          —    
  

 

 

    

 

 

   

 

 

    

 

 

 

International

   $ 1,898,253        19.9   $ 38,791        18.9
  

 

 

    

 

 

   

 

 

    

 

 

 

Total

   $ 9,544,607        100.0   $ 205,046        100.0
  

 

 

    

 

 

   

 

 

    

 

 

 

 

(A) Represents investment concentration as a percentage of gross real estate assets, other loans, and equity investments, assuming all binding real estate commitments on new investments and unfunded amounts on development deals and commenced capital improvement projects are fully funded. See press release dated May 3, 2018 for reconciliation of total assets to pro forma total gross assets at March 31, 2018.

 

LOGO

 

Q1 2018  |  SUPPLEMENTAL INFORMATION     12


MEDICALPROPERTIESTRUST.COM

 

 

PORTFOLIO INFORMATION     

 

 

Same Store EBITDAR(1) Rent Coverage    

YOY and Sequential Quarter Comparisons by Property Type    

 

LOGO

Stratification of Portfolio EBITDAR Rent Coverage

 

EBITDAR Rent Coverage TTM

   Investment
(in thousands)
     No. of Facilities      Percentage of
Investment
 

Greater than or equal to 4.50x

   $ 189,931        4        4.4

3.00x - 4.49x

   $ 122,408        2        2.9

1.50x - 2.99x

   $ 72,529        5        1.7

Less than 1.50x

   $ 19,594        2        0.5

Total Master Leased, Cross-Defaulted and/or with Parent Guaranty: 2.1x

   $ 3,881,791        120        90.5

General Acute Master Leased, Cross-Defaulted and/or with Parent Guaranty: 2.6x

   $ 1,960,791        39        45.7

Inpatient Rehabilitation Facilities Master Leased, Cross-Defaulted and/or with Parent Guaranty: 1.5x

   $ 1,563,530        64        36.5

Long-Term Acute Care Hospitals Master Leased, Cross-Defaulted and/or with Parent Guaranty: 1.4x

   $ 357,470        17        8.3

 

LOGO

Notes:

Same Store represents properties with at least 24 months of financial reporting data. Properties that do not provide financial reporting and disposed assets are not included.

All data presented is on a trailing twelve month basis.

 

(1) EBITDAR adjusted for non-recurring items.

 

Q1 2018  |  SUPPLEMENTAL INFORMATION     13


MEDICALPROPERTIESTRUST.COM

 

 

PORTFOLIO INFORMATION

 

 

SUMMARY OF COMPLETED ACQUISITIONS / DEVELOPMENT PROJECTS FOR THE THREE MONTHS ENDED MARCH 31, 2018

($ amounts in thousands)

 

Operator

   Location      Costs Incurred as of
3/31/2018
     Rent Commencement
Date
     Acquisition/
Development
 

Ernest Health

     Flagstaff, Arizona                              $ 23,812        3/1/2018        Development  
     

 

 

       
      $ 23,812        
     

 

 

       

SUMMARY OF CURRENT INVESTMENT COMMITMENTS AS OF MARCH 31, 2018    

($ amounts in thousands)

 

 

Operator

   Location      Commitment      Acquisition/
Development
        

RCCH

     Pasco, Washington      $ 17,500        Acquisition     
     

 

 

       
      $ 17,500        
     

 

 

       

SUMMARY OF CURRENT DEVELOPMENT PROJECTS AS OF MARCH 31, 2018

($ amounts in thousands)

 

 

Operator

   Location      Commitment      Cost Incurred as of
3/31/2018
     Estimated
Completion Date
 

Circle Health

     United Kingdom      $ 45,211      $ 18,369        Q1 2019  

Surgery Partners

     Idaho Falls, Idaho        113,468        16,753        Q1 2020  
     

 

 

    

 

 

    
      $ 158,679      $ 35,122     
     

 

 

    

 

 

    

 

Q1 2018  |  SUPPLEMENTAL INFORMATION     14


MEDICALPROPERTIESTRUST.COM

 

 

FINANCIAL STATEMENTS

 

 

MEDICAL PROPERTIES TRUST, INC. AND SUBSIDIARIES

Consolidated Statements of Income

(Unaudited)

(Amounts in thousands, except per share data)

 

     For the Three Months Ended  
     March 31, 2018     March 31, 2017  

Revenues

    

Rent billed

   $ 128,011     $ 96,763  

Straight-line rent

     15,791       12,779  

Income from direct financing leases

     17,681       17,880  

Interest and fee income

     43,563       28,975  
  

 

 

   

 

 

 

Total revenues

     205,046       156,397  

Expenses

    

Interest

     57,023       38,029  

Real estate depreciation and amortization

     35,802       27,586  

Property-related

     2,184       1,328  

General and administrative

     17,818       13,197  

Acquisition costs

     —         2,756  
  

 

 

   

 

 

 

Total expenses

     112,827       82,896  
  

 

 

   

 

 

 

Other income (expense)

    

Gain on sale of real estate, net

     1,467       7,413  

Debt refinancing costs

     —         (13,629

Other

     (1,468     1,767  
  

 

 

   

 

 

 

Total other income (expense)

     (1     (4,449
  

 

 

   

 

 

 

Income before income tax

     92,218       69,052  

Income tax expense

     (1,175     (867
  

 

 

   

 

 

 

Net income

     91,043       68,185  

Net income attributable to non-controlling interests

     (442     (215
  

 

 

   

 

 

 

Net income attributable to MPT common stockholders

   $ 90,601     $ 67,970  
  

 

 

   

 

 

 

Earnings per common share – basic and diluted:

    

Net income attributable to MPT common stockholders

   $ 0.25     $ 0.21  
  

 

 

   

 

 

 

Weighted average shares outstanding – basic

     364,882       321,057  

Weighted average shares outstanding – diluted

     365,343       321,423  

Dividends declared per common share

   $ 0.25     $ 0.24  

 

Q1 2018  |  SUPPLEMENTAL INFORMATION     15


MEDICALPROPERTIESTRUST.COM

 

 

FINANCIAL STATEMENTS

 

 

MEDICAL PROPERTIES TRUST, INC. AND SUBSIDIARIES

Consolidated Balance Sheets

(Amounts in thousands, except per share data)

 

     March 31, 2018     December 31, 2017  
     (Unaudited)     (A)  

ASSETS

    

Real estate assets

    

Land, buildings and improvements, intangible lease assets, and other

   $ 5,867,286     $ 5,944,220  

Mortgage loans

     1,927,393       1,778,316  

Net investment in direct financing leases

     686,024       698,727  
  

 

 

   

 

 

 

Gross investment in real estate assets

     8,480,703       8,421,263  

Accumulated depreciation and amortization

     (493,782     (455,712
  

 

 

   

 

 

 

Net investment in real estate assets

     7,986,921       7,965,551  

Cash and cash equivalents

     138,314       171,472  

Interest and rent receivables

     81,965       78,970  

Straight-line rent receivables

     202,317       185,592  

Other assets

     622,323       618,703  
  

 

 

   

 

 

 

Total Assets

   $ 9,031,840     $ 9,020,288  
  

 

 

   

 

 

 

LIABILITIES AND EQUITY

    

Liabilities

    

Debt, net

   $ 4,898,364     $ 4,898,667  

Accounts payable and accrued expenses

     206,891       211,188  

Deferred revenue

     15,549       18,178  

Lease deposits and other obligations to tenants

     57,847       57,050  
  

 

 

   

 

 

 

Total Liabilities

     5,178,651       5,185,083  

Equity

    

Preferred stock, $0.001 par value. Authorized 10,000 shares; no shares outstanding

     —         —    

Common stock, $0.001 par value. Authorized 500,000 shares; issued and outstanding - 364,695 shares at March 31, 2018

    

and 364,424 shares at December 31, 2017

     365       364  

Additional paid-in capital

     4,333,972       4,333,027  

Distributions in excess of net income

     (484,804     (485,932

Accumulated other comprehensive loss

     (9,961     (26,049

Treasury shares, at cost

     (777     (777
  

 

 

   

 

 

 

Total Medical Properties Trust, Inc. Stockholders’ Equity

     3,838,795       3,820,633  

Non-controlling interests

     14,394       14,572  
  

 

 

   

 

 

 

Total Equity

     3,853,189       3,835,205  
  

 

 

   

 

 

 

Total Liabilities and Equity

   $ 9,031,840     $ 9,020,288  
  

 

 

   

 

 

 

 

(A) Financials have been derived from the prior year audited financial statements.

 

Q1 2018  |  SUPPLEMENTAL INFORMATION     16


LOGO

1000 Urban Center Drive, Suite 501 Birmingham, AL 35242 (205) 969-3755 NYSE: MPW www.medicalpropertiestrust.com Contact: Tim Berryman, Director—Investor Relations (205) 397-8589 or tberryman@medicalpropertiestrust.com or Charles Lambert, Treasurer and Managing Director—Capital Markets (205) 397-8897 or clambert@medicalpropertiestrust.com A t the V ery h eArt of h eAlthcAre®.