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)
Commission File Number
(State or other jurisdiction of incorporation or organization) |
(I.R.S. Employer Identification No.) |
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(Address of principal executive offices) | (Zip Code) |
Registrant’s 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:
Title of each class |
Trading Symbol |
Name of each exchange on which registered | ||
Common Stock, par value $0.001 per share, of Medical Properties Trust, Inc. |
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 February 3, 2022, Medical Properties Trust, Inc. issued a press release announcing its financial results for the three and twelve months ended December 31, 2021. 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 February 3, 2022 reporting financial results for the three and twelve months ended December 31, 2021 | |
99.2 | Medical Properties Trust, Inc. 4th Quarter 2021 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 3, 2022
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Exhibit 99.1
Contact: Drew Babin, CFA, CMA Senior Managing Director of Corporate Communications Medical Properties Trust, Inc. (646) 884-9809 dbabin@medicalpropertiestrust.com |
MEDICAL PROPERTIES TRUST, INC. REPORTS FOURTH QUARTER AND FULL-YEAR RESULTS
Per Share Net Income of $0.34 and Normalized FFO of $0.47 in Fourth Quarter
Robust Double-Digit Growth in Full-Year Net Income, NFFO and AFFO per Share
$3.9 Billion of Investments Completed in 2021
Birmingham, AL February 3, 2022 Medical Properties Trust, Inc. (the Company or MPT) (NYSE: MPW) today announced financial and operating results for the fourth quarter and full-year ended December 31, 2021, as well as certain events occurring subsequent to quarter end.
| Net income of $0.34 and Normalized Funds from Operations (NFFO) of $0.47 for the 2021 fourth quarter and net income of $1.11 and NFFO of $1.75 for the full-year 2021, all on a per diluted share basis; |
| Acquired in early December for an incremental investment of approximately 46 million the 50% interest formerly owned by MPTs joint venture partner in a general acute hospital operated by IMED Hospitales in Valencia, Spain; |
| Completed in December the previously announced $135 million sale of Capital Medical Center in Olympia, WA, as well as $46 million of other property dispositions, for an aggregate real estate gain of nearly $44 million; |
| Commenced in the fourth quarter the construction of a replacement hospital for Steward Health Care Systems (Steward) Wadley Regional Medical Center in Texarkana, TX for a total expected investment of roughly $169 million; |
| Agreed in February to sell a 99-bed general acute care hospital in Dodge City, Kansas for $63 million; |
| Previously announced partnership transaction with Macquarie Infrastructure Partners V (MIP V) related to eight Steward-operated hospitals in Massachusetts expected to close by the end of the first quarter; |
| Previously announced lease agreement with HCA Healthcare for five Utah hospitals currently operated by Steward expected to close in the first half of 2022; and |
| Hospital tenants uniformly reporting continued strong operating and financial performance. |
2021 was truly a signature year for MPT, made possible through the tenacity, dedication, and foresight of our people and the innovative culture we have built which are all evidenced in so many of our accomplishments, said Edward K. Aldag, Jr., Chairman, President, and Chief Executive Officer. We achieved far broader
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recognition of our U.S. hospitals as essential community infrastructure after nearly 20 years of acting on that core belief, made new investments in hospitals in urban Los Angeles and South Florida where our operators are making important new investments to raise the bar for patient care, and established crucial footholds in the accelerating inpatient behavioral hospital segment.
Mr. Aldag continued, We enter 2022 with tremendous confidence in our operators, expected transactions that will result in our most diversified portfolio ever, a robust pipeline of new opportunities, and an expanding array of attractive funding options.
Included in the financial tables accompanying this press release is information about the Companys assets and liabilities, net income, and reconciliations of net income to NFFO, all on a basis comparable to 2020 results, and reconciliations of total assets to total pro forma gross assets and total revenues to total adjusted revenues.
PORTFOLIO UPDATE
During and subsequent to the fourth quarter, MPT continued to execute on its expansive growth pipeline while considering several funding options that are expected to achieve accretive spreads while normalizing leverage.
MPT invested 46 million in the fourth quarter to acquire its partners interest in IMED Valencia at a yield enhanced by MPTs internalization of management responsibilities. The facility is a state-of-the-art private hospital in Valencia, Spain for which MPT made an initial unconsolidated investment in September of 2015. The role of private hospital operators is expanding throughout Spain, and MPT is excited to increase its presence.
Also in the fourth quarter, construction began on a replacement hospital for Stewards existing Wadley Medical Center in Texarkana, TX, a facility in which MPT has no investment interest. MPTs total investment in the new facility is anticipated to be $169 million, and construction is expected to be completed in 2024. The state-of-the-art, approximately 120-bed facility will be located at a separate location from Stewards existing hospital in downtown Texarkana and will significantly expand the array of services provided to the community.
In the fourth quarter, MPT completed the previously announced sale of Capital Medical Center in Olympia, WA for $135 million, solidifying both a mid-teens internal rate of return and a real estate gain of roughly $33 million. The Company also sold one inpatient rehabilitation property in Fort Lauderdale and five vacant freestanding emergency department facilities for combined proceeds of $46 million and an aggregate real estate gain of approximately $11 million.
In addition, MPT agreed in February to sell Western Plains Medical Complex in Dodge City, KS, operated by LifePoint Health, for approximately $63 million and expects to recognize a real estate gain in excess of $7 million.
The Company has total pro forma gross assets of approximately $22.3 billion, including $16.2 billion in general acute care hospitals, $2.6 billion in behavioral health facilities, $2.1 billion in inpatient rehabilitation hospitals, $0.3 billion in long-term acute care hospitals, and $0.3 billion in freestanding emergency room and urgent care properties. MPTs portfolio, pro forma for the transactions described herein, includes roughly 440 properties and 46,000 licensed beds across the United States and in Germany, the United Kingdom, Switzerland, Italy, Spain, Portugal, Australia, and Colombia. The properties are leased to or mortgaged by 53 hospital operating companies. MPT continues to work with existing and new operators in the U.S. and abroad on numerous opportunities.
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OPERATING RESULTS AND OUTLOOK
Net income for the fourth quarter and year ended December 31, 2021 was $207 million ($0.34 per diluted share) and $656 million ($1.11 per diluted share), respectively, compared to $110 million ($0.20 per diluted share) and $431 million ($0.81 per diluted share) in the year earlier periods.
NFFO for the fourth quarter and year ended December 31, 2021 was $279 million ($0.47 per diluted share) and $1,036 million ($1.75 per diluted share), respectively, compared to $220 million ($0.41 per diluted share) and $831 million ($1.57 per diluted share) in the year earlier periods.
Based on year-to-date transactions, along with an assumed capital structure pro forma for the completion of the partnership with Macquarie and other additional debt or equity transactions (resulting in a net debt to EBITDA ratio of approximately 6.0 times), MPT expects an annual run-rate of $1.16 to $1.20 per diluted share for net income and $1.81 to $1.85 per diluted share for NFFO.
Included in the annual run-rate estimate, but not fully included in the actual results for the fourth quarter, are the impact of CPI-based rent escalators, timing adjustments related to investment and capital markets transactions closed during and/or subsequent to the quarter, the impact of MPTs binding agreement to execute the partnership with MIP V, and the aggregate future earnings contribution from hospitals under development and various expansion projects where rent has not yet commenced.
These estimates do not include the effects, among others, of unexpected real estate operating costs, changes in accounting pronouncements, litigation costs, debt refinancing costs, acquisition costs, currency exchange rate movements, changes in income tax rates, interest rate hedging activities, write-offs of straight-line rent or other non-recurring or unplanned transactions. Moreover, these estimates do not provide for the impact on MPT or its tenants and borrowers from the global COVID-19 pandemic. These estimates may change if the Company acquires or sells assets in amounts that are different from estimates, market interest rates change, debt is refinanced, new shares are issued, additional debt is incurred, other operating expenses vary, income from equity investments vary from expectations, or existing leases or loans do not perform in accordance with their terms.
CONFERENCE CALL AND WEBCAST
The Company has scheduled a conference call and webcast for Thursday, February 3, 2022 at 11:00 a.m. Eastern Time to present the Companys financial and operating results for the quarter and year ended December 31, 2021. The dial-in numbers for the conference call are 844-535-3969 (U.S. and Canada) and 409-937-8903 (International); both numbers require passcode 2415467. The conference call will also be available via webcast in the Investor Relations section of the Companys website, www.medicalpropertiestrust.com.
A telephone and webcast replay of the call will be available beginning shortly after the calls completion. The telephone replay will be available through February 17, 2022 using dial-in numbers 855-859-2056 and 404-537-3406 for U.S. and International callers, respectively, and passcode 2415467. The webcast replay will be available for one year following the calls completion on the Investor Relations section of the companys website.
The Companys supplemental information package for the current period will also be available on the Companys website in the Investor Relations section.
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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 worlds largest owners of hospitals with roughly 440 facilities and 46,000 licensed beds (on a pro forma basis) in nine countries and across four continents. MPTs 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 Companys website at www.medicalpropertiestrust.com.
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 may, will, would, could, expect, intend, plan, estimate, target, anticipate, believe, objectives, outlook, guidance or other similar words, and include statements regarding our strategies, objectives, future expansion and development activities, and expected financial performance. 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 economic, political and social impact of, and uncertainty relating to, the COVID-19 pandemic, including governmental assistance to hospitals and healthcare providers, including certain of our tenants; (ii) the ability of our tenants, operators and borrowers to satisfy their obligations under their respective contractual arrangements with us, especially as a result of the adverse economic impact of the COVID-19 pandemic, and government regulation of hospitals and healthcare providers in connection with same (as further detailed in our Current Report on Form 8-K filed with the SEC on April 8, 2020); (iii) our expectations regarding annual run-rate net income and NFFO per share; (iv) our success in implementing our business strategy and our ability to identify, underwrite, finance, consummate and integrate acquisitions and investments; (v) the nature and extent of our current and future competition; (vi) macroeconomic conditions, such as a disruption of or lack of access to the capital markets or movements in currency exchange rates; (vii) our ability to obtain debt financing on attractive terms or at all, which may adversely impact our ability to pursue acquisition and development opportunities and pay down, refinance, restructure or extend our indebtedness as it becomes due; (viii) increases in our borrowing costs as a result of changes in interest rates and other factors, including the potential phasing out of LIBOR (ix) international, national and local economic, real estate and other market conditions, which may negatively impact, among other things, the financial condition of our tenants, lenders and institutions that hold our cash balances, and may expose us to increased risks of default by these parties; (x) factors affecting the real estate industry generally or the healthcare real estate industry in particular; (xi) our ability to maintain our status as a REIT for federal and state income tax purposes; (xii) federal and state healthcare and other regulatory requirements, as well as those in the foreign jurisdictions where we own properties; (xiii) the value of our real estate assets, which may limit our ability to dispose of assets at attractive prices or obtain or maintain equity or debt financing secured by our properties or on an unsecured basis; (xiv) the ability of our tenants and operators to comply with applicable laws, rules and regulations in the operation of the our properties, to deliver high-quality services, to attract and retain qualified personnel and to attract patients; (xv) potential environmental contingencies and other liabilities; (xvi) the risk that the Steward Massachusetts partnership transaction and unrelated property sales, loan repayments, and other capital recycling transactions do not occur; and (xvii) the risk that the sale by Steward of its Utah operations to HCA does not occur.
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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 Risk Factors in our Annual Report on Form 10-K for the year ended December 31, 2020 and as updated in our quarterly reports on Form 10-Q. 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.
# # #
5
MEDICAL PROPERTIES TRUST, INC. AND SUBSIDIARIES
Consolidated Balance Sheets
(Amounts in thousands, except for per share data)
December 31, 2021 | December 31, 2020 | |||||||
Assets | (Unaudited) | (A) | ||||||
Real estate assets |
||||||||
Land, buildings and improvements, intangible lease assets, and other |
$ | 14,062,722 | $ | 12,078,927 | ||||
Investment in financing leases |
2,053,327 | 2,010,922 | ||||||
Real estate held for sale |
1,096,505 | | ||||||
Mortgage loans |
213,211 | 248,080 | ||||||
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Gross investment in real estate assets |
17,425,765 | 14,337,929 | ||||||
Accumulated depreciation and amortization |
(993,100 | ) | (833,529 | ) | ||||
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|
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Net investment in real estate assets |
16,432,665 | 13,504,400 | ||||||
Cash and cash equivalents |
459,227 | 549,884 | ||||||
Interest and rent receivables |
56,229 | 46,208 | ||||||
Straight-line rent receivables |
728,522 | 490,462 | ||||||
Equity investments |
1,181,025 | 1,123,623 | ||||||
Other loans |
1,328,653 | 858,368 | ||||||
Other assets |
333,480 | 256,069 | ||||||
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Total Assets |
$ | 20,519,801 | $ | 16,829,014 | ||||
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Liabilities and Equity |
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Liabilities |
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Debt, net |
$ | 11,282,770 | $ | 8,865,458 | ||||
Accounts payable and accrued expenses |
607,792 | 438,750 | ||||||
Deferred revenue |
25,563 | 36,177 | ||||||
Obligations to tenants and other lease liabilities |
158,005 | 144,772 | ||||||
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Total Liabilities |
12,074,130 | 9,485,157 | ||||||
Equity |
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Preferred stock, $0.001 par value. Authorized 10,000 shares; no shares outstanding |
| | ||||||
Common stock, $0.001 par value. Authorized 750,000 shares; issued and outstanding - 596,814 shares at December 31, 2021 and 541,419 shares at December 31, 2020 |
597 | 541 | ||||||
Additional paid-in capital |
8,564,786 | 7,461,503 | ||||||
Distributions in excess of net income |
(87,691 | ) | (71,411 | ) | ||||
Accumulated other comprehensive loss |
(36,727 | ) | (51,324 | ) | ||||
Treasury shares, at cost |
(777 | ) | (777 | ) | ||||
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Total Medical Properties Trust, Inc. Stockholders Equity |
8,440,188 | 7,338,532 | ||||||
Non-controlling interests |
5,483 | 5,325 | ||||||
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Total Equity |
8,445,671 | 7,343,857 | ||||||
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Total Liabilities and Equity |
$ | 20,519,801 | $ | 16,829,014 | ||||
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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, 2021 | December 31, 2020 | December 31, 2021 | December 31, 2020 | |||||||||||||
Revenues |
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Rent billed |
$ | 259,517 | $ | 203,034 | $ | 931,942 | $ | 741,311 | ||||||||
Straight-line rent |
66,458 | 55,184 | 241,433 | 158,881 | ||||||||||||
Income from financing leases |
50,701 | 49,081 | 202,599 | 206,550 | ||||||||||||
Interest and other income |
32,657 | 26,507 | 168,695 | 142,496 | ||||||||||||
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Total revenues |
409,333 | 333,806 | 1,544,669 | 1,249,238 | ||||||||||||
Expenses |
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Interest |
93,984 | 85,190 | 367,393 | 328,728 | ||||||||||||
Real estate depreciation and amortization |
84,199 | 72,196 | 321,249 | 264,245 | ||||||||||||
Property-related (A) |
7,833 | 5,712 | 39,098 | 24,890 | ||||||||||||
General and administrative |
38,326 | 34,542 | 145,638 | 131,663 | ||||||||||||
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Total expenses |
224,342 | 197,640 | 873,378 | 749,526 | ||||||||||||
Other income (expense) |
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Gain (loss) on sale of real estate |
43,575 | (130 | ) | 52,471 | (2,833 | ) | ||||||||||
Real estate impairment charges |
| | | (19,006 | ) | |||||||||||
Earnings from equity interests |
6,855 | 5,154 | 28,488 | 20,417 | ||||||||||||
Debt refinancing and unutilized financing costs |
(25,311 | ) | (27,569 | ) | (27,650 | ) | (28,180 | ) | ||||||||
Other (including mark-to-market adjustments on equity securities) |
1,541 | 2,717 | 6,288 | (6,782 | ) | |||||||||||
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Total other income (expense) |
26,660 | (19,828 | ) | 59,597 | (36,384 | ) | ||||||||||
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Income before income tax |
211,651 | 116,338 | 730,888 | 463,328 | ||||||||||||
Income tax expense |
(4,807 | ) | (6,232 | ) | (73,948 | ) | (31,056 | ) | ||||||||
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Net income |
206,844 | 110,106 | 656,940 | 432,272 | ||||||||||||
Net income attributable to non-controlling interests |
(308 | ) | (222 | ) | (919 | ) | (822 | ) | ||||||||
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Net income attributable to MPT common stockholders |
$ | 206,536 | $ | 109,884 | $ | 656,021 | $ | 431,450 | ||||||||
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Earnings per common sharebasic and diluted: |
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Net income attributable to MPT common stockholders |
$ | 0.34 | $ | 0.20 | $ | 1.11 | $ | 0.81 | ||||||||
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Weighted average shares outstandingbasic |
596,395 | 537,003 | 588,817 | 529,239 | ||||||||||||
Weighted average shares outstandingdiluted |
596,665 | 538,351 | 590,139 | 530,461 | ||||||||||||
Dividends declared per common share |
$ | 0.28 | $ | 0.27 | $ | 1.12 | $ | 1.08 |
(A) Includes $4.8 million and $2.9 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, 2021 and 2020, respectively, and $27.9 million and $13.8 million of such expenses for the twelve months ended December 31, 2021 and 2020, respectively. |
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 | For the Twelve Months Ended | ||||||||||||||
December 31, 2021 | December 31, 2020 | December 31, 2021 | December 31, 2020 | |||||||||||||
FFO information: |
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Net income attributable to MPT common stockholders |
$ | 206,536 | $ | 109,884 | $ | 656,021 | $ | 431,450 | ||||||||
Participating securities share in earnings |
(1,073 | ) | (719 | ) | (2,161 | ) | (2,105 | ) | ||||||||
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Net income, less participating securities share in earnings |
$ | 205,463 | $ | 109,165 | $ | 653,860 | $ | 429,345 | ||||||||
Depreciation and amortization |
97,510 | 83,327 | 374,599 | 306,493 | ||||||||||||
(Gain) loss on sale of real estate |
(43,575 | ) | 130 | (52,471 | ) | 2,833 | ||||||||||
Real estate impairment charges |
| | | 19,006 | ||||||||||||
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Funds from operations |
$ | 259,398 | $ | 192,622 | $ | 975,988 | $ | 757,677 | ||||||||
Write-off (recovery) of straight-line rent and other |
(670 | ) | (683 | ) | (2,271 | ) | 26,415 | |||||||||
Non-cash fair value adjustments |
(5,430 | ) | 612 | (8,193 | ) | 9,642 | ||||||||||
Tax rate and other changes |
| (366 | ) | 42,746 | 9,295 | |||||||||||
Debt refinancing and unutilized financing costs |
25,311 | 27,569 | 27,650 | 28,180 | ||||||||||||
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Normalized funds from operations |
$ | 278,609 | $ | 219,754 | $ | 1,035,920 | $ | 831,209 | ||||||||
Share-based compensation |
13,520 | 12,554 | 52,110 | 47,154 | ||||||||||||
Debt costs amortization |
4,968 | 3,548 | 17,661 | 13,937 | ||||||||||||
Rent deferral, net |
557 | 1,267 | 2,755 | (11,393 | ) | |||||||||||
Straight-line rent revenue and other |
(81,909 | ) | (71,659 | ) | (297,078 | ) | (238,687 | ) | ||||||||
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Adjusted funds from operations |
$ | 215,745 | $ | 165,464 | $ | 811,368 | $ | 642,220 | ||||||||
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Per diluted share data: |
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Net income, less participating securities share in earnings |
$ | 0.34 | $ | 0.20 | $ | 1.11 | $ | 0.81 | ||||||||
Depreciation and amortization |
0.16 | 0.16 | 0.63 | 0.57 | ||||||||||||
(Gain) loss on sale of real estate |
(0.07 | ) | | (0.09 | ) | 0.01 | ||||||||||
Real estate impairment charges |
| | | 0.04 | ||||||||||||
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Funds from operations |
$ | 0.43 | $ | 0.36 | $ | 1.65 | $ | 1.43 | ||||||||
Write-off (recovery) of straight-line rent and other |
| | | 0.05 | ||||||||||||
Non-cash fair value adjustments |
(0.01 | ) | | (0.01 | ) | 0.02 | ||||||||||
Tax rate and other changes |
| | 0.07 | 0.02 | ||||||||||||
Debt refinancing and unutilized financing costs |
0.05 | 0.05 | 0.04 | 0.05 | ||||||||||||
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Normalized funds from operations |
$ | 0.47 | $ | 0.41 | $ | 1.75 | $ | 1.57 | ||||||||
Share-based compensation |
0.02 | 0.02 | 0.09 | 0.09 | ||||||||||||
Debt costs amortization |
0.01 | 0.01 | 0.03 | 0.02 | ||||||||||||
Rent deferral, net |
| | | (0.02 | ) | |||||||||||
Straight-line rent revenue and other |
(0.14 | ) | (0.13 | ) | (0.50 | ) | (0.45 | ) | ||||||||
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Adjusted funds from operations |
$ | 0.36 | $ | 0.31 | $ | 1.37 | $ | 1.21 | ||||||||
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Notes:
(A) 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 the activity of all of our equity interests in the Earnings from equity interests line on the consolidated statements of income.
(B) 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 results of operations 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) non-cash 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
Annual Run-Rate Guidance Reconciliation
(Unaudited)
Annual Run-Rate Guidance - Per Share(1) | ||||||||
Low | High | |||||||
Net income attributable to MPT common stockholders |
$ | 1.16 | $ | 1.20 | ||||
Participating securities share in earnings |
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Net income, less participating securities share in earnings |
$ | 1.16 | $ | 1.20 | ||||
Depreciation and amortization |
0.65 | 0.65 | ||||||
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Funds from operations |
$ | 1.81 | $ | 1.85 | ||||
Other adjustments |
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Normalized funds from operations |
$ | 1.81 | $ | 1.85 | ||||
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(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. |
Total Pro Forma Gross Assets
(Unaudited)
(Amounts in thousands) | December 31, 2021 | December 31, 2020 | ||||||
Total Assets |
$ | 20,519,801 | $ | 16,829,014 | ||||
Add: |
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Real estate commitments on new investments(1) |
| 1,901,087 | ||||||
Unfunded amounts on development deals and commenced capital improvement projects(2) |
480,132 | 166,258 | ||||||
Accumulated depreciation and amortization |
993,100 | 833,529 | ||||||
Incremental gross assets of our joint ventures and other(3) |
1,713,603 | 1,287,077 | ||||||
Less: |
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Cash used for funding the transactions above(4) |
(1,377,299 | ) | (587,384 | ) | ||||
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Total Pro Forma Gross Assets(5) |
$ | 22,329,337 | $ | 20,429,581 | ||||
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(1) | The 2020 column reflects investments made in 2021, including the acquisition of 35 facilities in the United Kingdom on January 19, 2021. |
(2) | Includes $163.6 million and $65.5 million of unfunded amounts on ongoing development projects and $316.5 million and $100.8 million of unfunded amounts on capital improvement projects, as of December 31, 2021 and December 31, 2020, respectively. |
(3) | Adjustment to reflect our share of our joint ventures gross assets. |
(4) | Includes cash available on-hand plus cash generated from activities subsequent to period-end including loan repayments or dispositions, if any. |
(5) | Total pro forma gross assets is total assets before accumulated depreciation/amortization and assumes all real estate commitments on new investments and unfunded amounts on development deals and commenced capital improvement projects are fully funded using cash on hand (if available). 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 commitments close and our other commitments are fully funded. |
Adjusted Revenues
(Unaudited)
(Amounts in thousands) | For the Three Months Ended December 31, 2021 |
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Total Revenues |
$ | 409,333 | ||
Revenue from real estate properties owned through joint venture arrangements |
32,594 | |||
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Total Adjusted Revenues(1) |
$ | 441,927 | ||
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(1) | Adjusted revenues are total revenues adjusted for our pro rata portion of similar revenues in our real estate joint venture arrangements. We believe adjusted revenue is useful to investors as it provides a more complete view of revenue across all of our investments and allows for better understanding of our revenue concentration. |
Exhibit 99.2
MPT Medical Properties Trust SUPPLEMENTAL Q4
3 (COMPANY)OVERVIEW Company Information 3 FINANCIAL INFORMATION Reconciliation of Net Income to Funds from Operations 6 6 Debt Summary 7 Debt Maturity Schedule 8 Pro Forma Net Debt /Annualized Adjusted EBITDA 9 PORTFOLIO INFORMATION Pro Forma Lease and Loan Maturity Schedule 10 10 (Total)Pro Forma Gross Assets and Adjusted Revenue by Asset Type, Operator, State and Country 11 EBITDARM to Rent Coverage 14 Summary of Investments and Development Projects 15 FINANCIAL STATEMENTS Consolidated Statements of Income 16 16 Consolidated Balance Sheets 17 Unconsolidated Joint Venture Investments 18 Saint Lukes Community Hospital - Shawnee, Kansas. 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: Normalized FFO per share; expected payout ratio; the amount of acquisitions of healthcare real estate, if any; Net Debt to EBITDA; 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 arrangements 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 Companys business plan; financing risks; the Companys ability to maintain its status as a REIT for federal income tax purposes; acquisition and development risks; potential environmental and other liabilities; potential impact from COVID-19 on our tenants/borrowers and the related impact to us; and other factors affecting the real estate industry generally or health-care real estate in particular. For further discussion of the factors that could affect outcomes, please refer to the Risk Factors section of the Companys Annual Report on Form 10-K for the year ended December 31, 2020, and as updated by the Companys 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. Certain information in the supplemental package is shown pro forma for transactions completed subsequent to period end and the consummation of pending transactions, including the Steward Massachusetts partnership and leasing five facilities in Utah to a new tenant. The pro forma adjustments are based upon available information and assumptions that we believe are reasonable. There is no assurance that the pending transactions will occur.
COMPANY OVERVIEW Medical Properties Trust, Inc. is a self-advised MPTs financing model facilitates acquisitions real estate investment trust formed in and recapitalizations and allows operators 2003 to acquire and develop net-leased hospital of hospitals to unlock the value of their real facilities. From its inception in Birmingham, estate assets to fund facility improvements, Alabama, the Company has grown to become one technology upgrades and other investments of the worlds largest owners of hospitals. in operations. Pro Forma as of December 31, 2021. 438 53 ~46,000 32 9 properties operators beds U. S. states countries MEDICAL PROPERTIES TRUST | SUPPLEMENTAL INFORMATION | Q4 2021 3
COMPANY OVERVIEW MPT OFFICERS: From the Left: Charles R. Lambert, Rosa H. Hooper, R. Lucas Savage, Edward K. Aldag, Jr., R. Steven Hamner, Emmett E. McLean and J. Kevin Hanna. 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 R. Lucas Savage Vice President, Head of Global Acquisitions Charles R. Lambert Vice President, Treasurer and Managing Director of Capital Markets Board of Directors Corporate Headquarters Edward K. Aldag, Jr. G. Steven Dawson Medical Properties Trust, Inc. R. Steven Hamner 1000 Urban Center Drive, Suite 501 Caterina A. Mozingo Birmingham, AL 35242 Elizabeth N. Pitman (205) 969-3755 D. Paul Sparks, Jr. Michael G. Stewart (205) 969-3756 (fax) C. Reynolds Thompson, III www.medicalpropertiestrust.com MEDICAL PROPERTIES TRUST | SUPPLEMENTAL INFORMATION | Q4 2021 4
COMPANY OVERVIEW INVESTOR RELATIONS Drew Babin Tim Berryman Senior Managing Director of Corporate Communications Managing Director of Investor Relations (646) 884-9809 dbabin@medicalpropertiestrust.com (205) 397-8589 tberryman@medicalpropertiestrust.com Stock Exchange Senior Transfer Listing and Unsecured Agent Trading Symbol Debt Ratings American Stock Transfer New York Stock Exchange Moodys Ba1 and Trust Company (NYSE): MPW Standard & Poors BBB- 6201 15th Avenue Brooklyn, NY 11219 Memorial Hospital of Gardena - Los Angeles, California. MEDICAL PROPERTIES TRUST | SUPPLEMENTAL INFORMATION | Q4 2021 5
FINANCIAL INFORMATION RECONCILIATION OF NET INCOME TO FUNDS FROM OPERATIONS (Unaudited) (Amounts in thousands, except per share data) For the Three Months Ended For the Twelve Months Ended December 31, 2021 December 31, 2020 December 31, 2021 December 31, 2020 FFO INFORMATION: Net income attributable to MPT common stockholders $ 206,536 $ 109,884 $ 656,021 $ 431,450 Participating securities share in earnings (1,073) (719) (2,161) (2,105) Net income, less participating securities share in earnings $ 205,463 $ 109,165 $ 653,860 $ 429,345 Depreciation and amortization 97,510 83,327 374,599 306,493 (Gain) loss on sale of real estate (43,575) 130 (52,471) 2,833 Real estate impairment charges - - - 19,006 Funds from operations $ 259,398 $ 192,622 $ 975,988 $ 757,677 Write-off (recovery) of straight-line rent and other (670) (683) (2,271) 26,415 Non-cash fair value adjustments (5,430) 612 (8,193) 9,642 Tax rate and other changes - (366) 42,746 9,295 Debt refinancing and unutilized financing costs 25,311 27,569 27,650 28,180 Normalized funds from operations $ 278,609 $ 219,754 $ 1,035,920 $ 831,209 Share-based compensation 13,520 12,554 52,110 47,154 Debt costs amortization 4,968 3,548 17,661 13,937 Rent deferral, net 557 1,267 2,755 (11,393) Straight-line rent revenue and other (81,909) (71,659) (297,078) (238,687) Adjusted funds from operations $ 215,745 $ 165,464 $ 811,368 $ 642,220 PER DILUTED SHARE DATA: Net income, less participating securities share in earnings $ 0.34 $ 0.20 $ 1.11 $ 0.81 Depreciation and amortization 0.16 0.16 0.63 0.57 (Gain) loss on sale of real estate (0.07) - (0.09) 0.01 Real estate impairment charges - - - 0.04 Funds from operations $ 0.43 $ 0.36 $ 1.65 $ 1.43 Write-off (recovery) of straight-line rent and other - - - 0.05 Non-cash fair value adjustments (0.01) - (0.01) 0.02 Tax rate and other changes - - 0.07 0.02 Debt refinancing and unutilized financing costs 0.05 0.05 0.04 0.05 Normalized funds from operations $ 0.47 $ 0.41 $ 1.75 $ 1.57 Share-based compensation 0.02 0.02 0.09 0.09 Debt costs amortization 0.01 0.01 0.03 0.02 Rent deferral, net - - - (0.02) Straight-line rent revenue and other (0.14) (0.13) (0.50) (0.45) Adjusted funds from operations $ 0.36 $ 0.31 $ 1.37 $ 1.21 Notes: (A) 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 the activity of all of our equity interests in the Earnings from equity interests line on the consolidated statements of income. (B) 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 results of operations 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) non-cash 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 | SUPPLEMENTAL INFORMATION | Q4 2021 6
FINANCIAL INFORMATION DEBT SUMMARY (As of December 31, 2021) ($ amounts in thousands) Debt Instrument Rate Type Rate Balance 2024 Credit Facility Revolver Variable 1.310% $ 730,000 2022 Interim Loan Variable 1.610% 869,606 2026 Term Loan Variable 1.560% 200,000 2.550% Notes Due 2023 (£400M) (A) Fixed 2.550% 541,280 (B) 2024 AUD Term Loan (A$1.2B) (A) Fixed 2.450% 871,560 3.325% Notes Due 2025 (€500M) (A) Fixed 3.325% 568,500 (A) (C) 2025 GBP Term Loan (£700M) Fixed 1.949% 947,240 0.993% Notes Due 2026 (€500M) (A) Fixed 0.993% 568,500 5.250% Notes Due 2026 Fixed 5.250% 500,000 2.500% Notes Due 2026 (£500M) (A) Fixed 2.500% 676,600 5.000% Notes Due 2027 Fixed 5.000% 1,400,000 3.692% Notes Due 2028 (£600M) (A) Fixed 3.692% 811,920 4.625% Notes Due 2029 Fixed 4.625% 900,000 3.375% Notes Due 2030 (£350M) (A) Fixed 3.375% 473,620 3.500% Notes Due 2031 Fixed 3.500% 1,300,000 $ 11,358,826 Debt issuance costs and discount (76,056) Weighted average rate 3.091% $ 11,282,770 RATE TYPE AS PERCENTAGE OF TOTAL DEBT Variable 15.8% Fixed 84.2% (A) Non-USD denominated debt converted to U.S. dollars at December 31, 2021. (B) We entered into an interest rate swap transaction, effective July 3, 2019, to fix the interest rate to 2.450% for the duration of the loan. (C) We entered into an interest rate swap transaction, effective March 6, 2020, to fix the interest rate to 1.949% for the duration of the loan. MEDICAL PROPERTIES TRUST | SUPPLEMENTAL INFORMATION | Q4 2021 7
FINANCIAL INFORMATION DEBT MATURITY SCHEDULE ($ amounts in thousands) Debt Instrument 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2024 Credit Facility Revolver $ - $ - $ 730,000 $ - $ - $ - $ - $ - $ - $ - 2022 Interim Loan 869,606 - - - - - - - - -2026 Term Loan - - - - 200,000 - - - - - 2.550% Notes Due 2023 (£400M) (A) - 541,280 - - - - - - - -2024 AUD Term Loan (A$1.2B) (A) - - 871,560 - - - - - - - 3.325% Notes Due 2025 (€500M) (A) - - - 568,500 - - - - - -2025 GBP Term Loan (£700M) (A) - - - 947,240 - - - - - - 0.993% Notes Due 2026 (€500M) (A) - - - - 568,500 - - - - - 5.250% Notes Due 2026 - - - - 500,000 - - - - - 2.500% Notes Due 2026 (£500M) (A) - - - - 676,600 - - - - - 5.000% Notes Due 2027 - - - - - 1,400,000 - - - - 3.692% Notes Due 2028 (£600M) (A) - - - - - - 811,920 - - - 4.625% Notes Due 2029 - - - - - - - 900,000 - - 3.375% Notes Due 2030 (£350M) (A) - - - - - - - - 473,620 - 3.500% Notes Due 2031 - - - - - - - - - 1,300,000 $ 869,606 $ 541,280 $ 1,601,560 $ 1,515,740 $ 1,945,100 $ 1,400,000 $ 811,920 $ 900,000 $ 473,620 $ 1,300,000 $2,000,000 $1,945,100 $1,800,000 $1,601,560 $1,600,000 $1,515,740 $1,400,000 $1,400,000 $1,300,000 $1,200,000 $1,000,000 $900,000 $869,606 $811,920 $800,000 $600,000 $541,280 $473,620 $400,000 $200,000 $- 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2024 Credit Facility Revolver 2022 Interim Loan 2026 Term Loan 2.550% Notes Due 2023 2024 AUD Term Loan 3.325% Notes Due 2025 2025 GBP Term Loan 0.993% Notes Due 2026 5.250% Notes Due 2026 2.500% Notes Due 2026 5.000% Notes Due 2027 3.692% Notes Due 2028 4.625% Notes Due 2029 3.375% Notes Due 2030 3.500% Notes Due 2031 (A) Non-USD denominated debt converted to U.S. dollars at December 31, 2021. MEDICAL PROPERTIES TRUST | SUPPLEMENTAL INFORMATION | Q4 2021 8
FINANCIAL INFORMATION PRO FORMA NET DEBT / ANNUALIZED ADJUSTED EBITDA (Unaudited) (Amounts in thousands) For the Three Months Ended December 31, 2021 Net income attributable to MPT common stockholders $ 206,536 Pro forma adjustments for investment activity (A) (11,886) Pro forma net income $ 194,650 Add back: Interest (B) 92,055 Depreciation and amortization (B) 95,554 Share-based compensation 13,520 Gain on sale of real estate (43,575) Write-off (recovery) of straight-line rent and other 7,280 Debt refinancing and unutilized financing costs 25,311 Non-cash fair value adjustments (5,430) Income tax (B) 5,627 4Q 2021 Pro forma adjusted EBITDA $ 384,992 Annualization $ 1,539,968 Total debt at December 31, 2021 $ 11,282,770 Pro forma changes after December 31, 2021 (1,461,061) Pro forma net debt $ 9,821,709 Pro forma net debt / annualized adjusted EBITDA 6.4x (A) Reflects our binding commitments on the Steward Massachusetts partnership and leasing five facilities in Utah to a new tenant, as well as other investments and property sales during and shortly after the fourth quarter. (B) Includes our share of interest, real estate depreciation and income tax expense from unconsolidated joint ventures. 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 share-based compensation, gains or losses on real estate and other dispositions, debt refinancing or similar charges, and impairment or other non-cash 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. MEDICAL PROPERTIES TRUST | SUPPLEMENTAL INFORMATION | Q4 2021 9
PORTFOLIO INFORMATION PRO FORMA 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/Interest 2022 12 $ 46,646 3.6% 2023 5 14,360 1.1% 2024 1 2,731 0.2% 2025 6 17,448 1.3% 2026 2 1,829 0.1% 2027 1 3,221 0.2% 2028 4 5,676 0.4% 2029 6 15,853 1.2% 2030 11 5,737 0.4% 2031 4 4,326 0.3% Thereafter 378 1,187,260 91.2% 430 $ 1,305,087 100.0% Percentage of total base rent/interest 100% 91.2% 90% 80% 70% 60% 50% 40% 30% 20% 10% 3.6% 1.1% 0.2% 1.3% 0.1% 0.2% 0.4% 1.2% 0.4% 0.3% 0% (A) Schedule includes leases and mortgage loans. (B) 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. (C) Reflects all properties, including those that are part of joint ventures except vacant properties representing less than 1% of total pro forma gross assets and three facilities that are under development. (D) Represents base rent/interest income on an annualized basis as of period end but does not include tenant recoveries, additional rents and other lease-related adjustments to revenue (i.e., straight-line rents and deferred revenues). MEDICAL PROPERTIES TRUST | SUPPLEMENTAL INFORMATION | Q4 2021 10
PORTFOLIO INFORMATION TOTAL PRO FORMA GROSS ASSETS AND ADJUSTED REVENUE BY ASSET TYPE (December 31, 2021) ($ amounts in thousands) Pro Forma Adjusted Total Percentage of Q4 2021 Percentage of Asset Types Properties (A) (B) Gross Assets Total Gross Assets Revenue Q4 2021 Revenue General Acute Care Hospitals 207 $ 16,188,861 72.5% $ 338,447 76.6% Behavioral Health Facilities 58 2,565,995 11.5% 45,810 10.3% Inpatient Rehabilitation Hospitals 111 2,060,782 9.2% 44,061 10.0% Long-Term Acute Care Hospitals 20 337,609 1.5% 8,261 1.9% Freestanding ER/Urgent Care Facilities 42 255,517 1.2% 5,348 1.2% Other - 920,573 4.1% - - Total 438 $ 22,329,337 100.0% $ 441,927 100.0% TOTAL PRO FORMA GROSS ASSETS BY ASSET TYPE TOTAL ADJUSTED REVENUE BY ASSET TYPE 2% 1% 4% 1% 9% 2% General Acute Care Hospitals 10% Behavioral Health Facilities 10% 11% Inpatient Rehabilitation Hospitals 73% Long-Term Acute Care Hospitals Freestanding ER/Urgent Care Facilities 77% Other DOMESTIC PRO FORMA GROSS ASSETS BY ASSET TYPE DOMESTIC ADJUSTED REVENUE BY ASSET TYPE 2% 5% 3% 2% 7% 2% 6% General Acute Care Hospitals 7% 9% Behavioral Health Facilities Inpatient Rehabilitation Hospitals 76% Long-Term Acute Care Hospitals 81% Freestanding ER/Urgent Care Facilities Other (A) Includes gross real estate assets, other loans, equity investments, and pro rata portion of gross assets in joint venture arrangements, assuming all real estate commitments on new investments and unfunded amounts on development deals and commenced capital improvement projects are fully funded. See press release dated February 3, 2022 for reconciliation of total assets to total pro forma gross assets at December 31, 2021. (B) Reflects actual revenues on our consolidated statement of income along with revenue from properties owned through our unconsolidated joint venture arrangements. See press release dated February 3, 2022 for a reconciliation of actual revenues to adjusted revenues. MEDICAL PROPERTIES TRUST | SUPPLEMENTAL INFORMATION | Q4 2021 11
PORTFOLIO INFORMATION TOTAL PRO FORMA GROSS ASSETS - LARGEST INDIVIDUAL FACILITY (December 31, 2021) COMPREHENSIVE PROPERTY-LEVEL UNDERWRITING FRAMEWORK Percentage of Total Gross Assets - Operators While MPT seeks to align with proven operators with successful track records and Largest Individual Facility demonstrated market leadership, individual facilities are discrete transactions regardless of portfolio size or related master lease and/or cross-default provisions HCA Healthcare 2.5% Steward Health Care 2.0% Is this hospital truly needed in this local Is referral network sufficiently diversified by Circle Health 1.1% market? both practice and specialty? Prospect Medical Holdings 1.1% 0.8% Would the community suffer were this Would the facility be attractive to multiple Swiss Medical Network hospital not here? identified high-quality replacement operators 48 operators 1.3% in the rare event a tenant must be replaced? Are hospital relationships with admitting Largest Individual Facility Investment is Less Than local physicians deep, time-tested, and Could the operator potentially be replaced at 3% of MPT Investment Portfolio sustainable? equal or more favorable (to MPT) terms? TOTAL PRO FORMA GROSS ASSETS AND ADJUSTED REVENUE BY OPERATOR (December 31, 2021) ($ amounts in thousands) Pro Forma Adjusted Total Percentage of Q4 2021 Percentage of Operators Properties (A) (B) Gross Assets Total Gross Assets Revenue Q4 2021 Revenue Steward Health Care 34 Florida market $ 1,334,834 6.0% $ 26,147 5.9% Massachusetts market 1,177,914 5.3% 38,490 8.7% Texas/Arkansas/Louisiana market 1,129,624 5.1% 18,881 4.3% Arizona market 338,612 1.5% 8,583 1.9% Ohio/Pennsylvania market 141,506 0.6% 3,648 0.8% Utah market - - 32,081 7.3% Circle Health 36 2,481,001 11.1% 54,936 12.4% Prospect Medical Holdings 14 1,631,691 7.3% 37,912 8.6% Swiss Medical Network 17 1,300,431 5.8% 11,753 2.7% HCA Healthcare 9 1,240,546 5.6% 414 0.1% 48 operators 328 10,632,605 47.6% 209,082 47.3% Other - 920,573 4.1% - - Total 438 $ 22,329,337 100.0% $ 441,927 100.0% (A) Includes gross real estate assets, other loans, equity investments, and pro rata portion of gross assets in joint venture arrangements, assuming all real estate commitments on new investments and unfunded amounts on development deals and commenced capital improvement projects are fully funded. See press release dated February 3, 2022 for reconciliation of total assets to total pro forma gross assets at December 31, 2021. (B) Reflects actual revenues on our consolidated statement of income along with revenue from properties owned through our unconsolidated joint venture arrangements. See press release dated February 3, 2022 for a reconciliation of actual revenues to adjusted revenues. MEDICAL PROPERTIES TRUST | SUPPLEMENTAL INFORMATION | Q4 2021 12
PORTFOLIO INFORMATION TOTAL PRO FORMA GROSS ASSETS AND ADJUSTED REVENUE BY U.S. STATE AND COUNTRY (December 31, 2021) ($ amounts in thousands) Pro Forma Adjusted Total Percentage of Q4 2021 Percentage of U.S. States and Other Countries Properties (A) (B) Gross Assets Total Gross Assets Revenue Q4 2021 Revenue Texas 54 $ 2,172,882 9.7% $ 38,653 8.7% California 28 1,650,038 7.4% 38,499 8.7% Florida 8 1,334,835 6.0% 26,692 6.0% Utah 7 1,255,545 5.6% 33,040 7.5% Massachusetts 10 1,183,313 5.4% 38,655 8.7% 27 Other States 124 5,131,596 23.0% 117,653 26.7% Other - 692,280 3.1% - - United States 231 $ 13,420,489 60.2% $ 293,192 66.3% United Kingdom 81 $ 4,492,918 20.1% $ 87,753 19.9% Switzerland 17 1,300,431 5.8% 11,753 2.7% Germany 82 1,257,482 5.6% 25,037 5.7% Australia 11 1,043,399 4.7% 14,875 3.4% Spain 3 264,965 1.2% 3,585 0.8% Other Countries 13 321,360 1.4% 5,732 1.2% Other - 228,293 1.0% - - International 207 $ 8,908,848 39.8% $ 148,735 33.7% Total 438 $ 22,329,337 100.0% $ 441,927 100.0% (A) Includes gross real estate assets, other loans, equity investments, and pro rata portion of gross assets in joint venture arrangements, assuming all real estate commitments on new investments and unfunded amounts on development deals and commenced capital improvement projects are fully funded. See press release dated February 3, 2022 for reconciliation of total assets to total pro forma gross assets at December 31, 2021. (B) Reflects actual revenues on our consolidated statement of income along with revenue from properties owned through our unconsolidated joint venture arrangements. See press release dated February 3, 2022 for a reconciliation of actual revenues to adjusted revenues. TOTAL PRO FORMA GROSS ASSETS BY COUNTRY TOTAL ADJUSTED REVENUE BY COUNTRY 1% 1% 1% 1% 3% 1% United States 6% 5% 3% 6% United Kingdom 6% Switzerland 60% Germany 20% 20% Australia 66% Spain Other Countries Other PRO FORMA GROSS ASSETS BY U.S. STATE ADJUSTED REVENUE BY U.S. STATE Texas 3% 9% 10% California Florida 8% 27% 23% 7% Utah Massachusetts 6% 6% 7% 5% 6% 27 Other States 9% Other MEDICAL PROPERTIES TRUST | SUPPLEMENTAL INFORMATION | Q4 2021 13
PORTFOLIO INFORMATION TOTAL PORTFOLIO TTM EBITDARM(A) RENT COVERAGE INCLUSIVE OF CARES ACT GRANTS YOY AND SEQUENTIAL QUARTER COMPARISONS BY PROPERTY TYPE 5.00x 4.00x 3.1x 3.1x 3.1x 3.2x 3.3x 3.2x 2.9x 2.9x 2.9x 3.00x 2.7x 1.9x 2.0x 2.1x 2.1x 2.1x 1.8x 1.9x 1.9x 1.9x 2.00x 1.3x 1.00x 0.00x General Acute Care Inpatient Rehabilitation Long-Term Acute Care Behavioral Health Total Portfolio Hospitals Facilities Hospitals Facilities Q3 2020 (YoY) Q3 2021 (YoY) Q2 2021 (QoQ) Q3 2021 (QoQ) STRATIFICATION OF PORTFOLIO EBITDARM RENT COVERAGE Investment Percentage of EBITDARM Rent Coverage TTM No. of Facilities (in thousands) Investment Greater than or equal to 4.50x $ 144,062 2 0.9% 3.00x - 4.49x $ 8,017 1 0.1% 1.50x - 2.99x $ 146,962 7 0.9% Less than 1.50x $ 8,284 2 0.1% Total Master Leased, Cross-Defaulted and/or with Parent $ 15,407,062 300 98.0% Guaranty: 2.8x General Acute Care Hospitals Master Leased, Cross$ 12,139,885 145 77.2% Defaulted and/or with Parent Guaranty: 3.0x Inpatient Rehabilitation Facilities Master Leased, Cross$ 1,928,912 107 12.3% Defaulted and/or with Parent Guaranty: 2.1x Long-Term Acute Care Hospitals Master Leased, Cross$ 288,255 19 1.8% Defaulted and/or with Parent Guaranty: 3.2x Behavioral Health Facilities Master Leased, Cross- Defaulted $ 1,050,010 29 6.7% and/or with Parent Guaranty: 1.9x 2% <1% <1% <1% Greater than or equal to 4.50x <1% 7% 3.00x - 4.49x 12% 1.50x - 2.99x Less than 1.50x 77% General Acute Master Lease, Cross-Default or Parent Guaranty Rehab Master Lease, Cross-Default or Parent Guaranty LTACH Master Lease, Cross-Default or Parent Guaranty Behavioral Health Facilities Master Lease, Cross-Default or Parent Guaranty Notes: Properties that do not provide financial reporting and disposed assets are not included. All data presented is on a trailing twelve month basis. (A) EBITDARM adjusted for non-recurring items. MEDICAL PROPERTIES TRUST | SUPPLEMENTAL INFORMATION | Q4 2021 14
PORTFOLIO INFORMATION SUMMARY OF COMPLETED INVESTMENTS (For the twelve months ended December 31, 2021) (Amounts in thousands) Operator Location Investment (A) Commencement Date Investment/ Development Steward Health Care U.S. - Various $ 335,000 1/8/2021 Investment Priory Group United Kingdom 1,090,400 1/19/2021 Investment Swiss Medical Network Switzerland 157,630 4/16/2021 Investment Pipeline Health Systems California 215,000 7/6/2021 Investment Circle Health United Kingdom 21,528 7/6/2021 Investment Steward Health Care Florida 900,000 8/1/2021 Investment Springstone U.S. - Various 950,000 10/19/2021 Investment Atrys Health Portugal 20,666 10/21/2021 Investment (B) IMED Hospitales Spain 51,875 12/2/2021 Investment $ 3,742,099 SUMMARY OF CURRENT DEVELOPMENT PROJECTS AS OF DECEMBER 31, 2021 (Amounts in thousands) Costs Incurred as of Estimated Commencement Operator Location Commitment 12/31/2021 Date Ernest Health California $ 47,929 $ 42,132 Q1 2022 Ernest Health California 47,700 31,197 Q2 2022 Steward Health Care Texas 169,408 28,110 Q2 2024 $ 265,037 $ 101,439 (A) Excludes transaction costs, including real estate transfer and other taxes. Amount assumes exchange rate as of the investment date. (B) Purchased the remaining 50% interest in IMED Valencia Hospitales in Spain in December 2021, which was formerly owned by MPTs joint venture partner. MEDICAL PROPERTIES TRUST | SUPPLEMENTAL INFORMATION | Q4 2021 15
FINANCIAL STATEMENTS CONSOLIDATED STATEMENTS OF INCOME (Unaudited) (Amounts in thousands, except per share data) For the Three Months Ended For the Twelve Months Ended December 31, 2021 December 31, 2020 December 31, 2021 December 31, 2020 REVENUES Rent billed $ 259,517 $ 203,034 $ 931,942 $ 741,311 Straight-line rent 66,458 55,184 241,433 158,881 Income from financing leases 50,701 49,081 202,599 206,550 Interest and other income 32,657 26,507 168,695 142,496 Total revenues 409,333 333,806 1,544,669 1,249,238 EXPENSES Interest 93,984 85,190 367,393 328,728 Real estate depreciation and amortization 84,199 72,196 321,249 264,245 Property-related (A) 7,833 5,712 39,098 24,890 General and administrative 38,326 34,542 145,638 131,663 Total expenses 224,342 197,640 873,378 749,526 OTHER INCOME (EXPENSE) Gain (loss) on sale of real estate 43,575 (130) 52,471 (2,833) Real estate impairment charges - - - (19,006) Earnings from equity interests 6,855 5,154 28,488 20,417 Debt refinancing and unutilized financing costs (25,311) (27,569) (27,650) (28,180) Other (including mark-to-market adjustments on equity securities) 1,541 2,717 6,288 (6,782) Total other income (expense) 26,660 (19,828) 59,597 (36,384) Income before income tax 211,651 116,338 730,888 463,328 Income tax expense (4,807) (6,232) (73,948) (31,056) Net income 206,844 110,106 656,940 432,272 Net income attributable to non-controlling interests (308) (222) (919) (822) Net income attributable to MPT common stockholders $ 206,536 $ 109,884 $ 656,021 $ 431,450 EARNINGS PER COMMON SHARE - BASIC AND DILUTED Net income attributable to MPT common stockholders $ 0.34 $ 0.20 $ 1.11 $ 0.81 WEIGHTED AVERAGE SHARES OUTSTANDING - BASIC 596,395 537,003 588,817 529,239 WEIGHTED AVERAGE SHARES OUTSTANDING - DILUTED 596,665 538,351 590,139 530,461 $ - $ - DIVIDENDS DECLARED PER COMMON SHARE $ 0.28 $ 0.27 $ 1.12 $ 1.08 (A) Includes $4.8 million and $2.9 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, 2021 and 2020, respectively, and $27.9 million and $13.8 million of such expenses for the twelve months ended December 31, 2021 and 2020, respectively. MEDICAL PROPERTIES TRUST | SUPPLEMENTAL INFORMATION | Q4 2021 16
FINANCIAL STATEMENTS CONSOLIDATED BALANCE SHEETS (Amounts in thousands, except per share data) December 31, 2021 December 31, 2020 (Unaudited) (A) ASSETS Real estate assets Land, buildings and improvements, intangible lease assets, and other $ 14,062,722 $ 12,078,927 Investment in financing leases 2,053,327 2,010,922 Real estate held for sale 1,096,505 -Mortgage loans 213,211 248,080 Gross investment in real estate assets 17,425,765 14,337,929 Accumulated depreciation and amortization (993,100) (833,529) Net investment in real estate assets 16,432,665 13,504,400 Cash and cash equivalents 459,227 549,884 Interest and rent receivables 56,229 46,208 Straight-line rent receivables 728,522 490,462 Equity investments 1,181,025 1,123,623 Other loans 1,328,653 858,368 Other assets 333,480 256,069 Total Assets $ 20,519,801 $ 16,829,014 LIABILITIES AND EQUITY Liabilities Debt, net $ 11,282,770 $ 8,865,458 Accounts payable and accrued expenses 607,792 438,750 Deferred revenue 25,563 36,177 Obligations to tenants and other lease liabilities 158,005 144,772 Total Liabilities 12,074,130 9,485,157 Equity Preferred stock, $0.001 par value. Authorized 10,000 shares; no shares outstanding - -Common stock, $0.001 par value. Authorized 750,000 shares; issued and outstanding - 596,814 shares at December 31, 2021 and 541,419 shares at December 31, 2020 597 541 Additional paid-in capital 8,564,786 7,461,503 Distributions in excess of net income (87,691) (71,411) Accumulated other comprehensive loss (36,727) (51,324) Treasury shares, at cost (777) (777) Total Medical Properties Trust, Inc. Stockholders Equity 8,440,188 7,338,532 Non-controlling interests 5,483 5,325 Total Equity 8,445,671 7,343,857 Total Liabilities and Equity $ 20,519,801 $ 16,829,014 (A) Financials have been derived from the prior year audited financial statements. MEDICAL PROPERTIES TRUST | SUPPLEMENTAL INFORMATION | Q4 2021 17
FINANCIAL STATEMENTS UNCONSOLIDATED JOINT VENTURE INVESTMENTS (As of and for the three months ended December 31, 2021) (Unaudited) ($ amounts in thousands) REAL ESTATE JOINT VENTURE DETAILS MPT Pro Rata Interest Property-MPT Weighted Total Gross Third-Party Shareholder Total Operators Related Average Interest Assets Net Debt Loans Revenues (A) (A) Expenses HM Hospitales, MEDIAN, Policlinico di Monza, Swiss 53% $ 2,397,857 $ 877,324 $ 337,689 $ 32,594 $ 1,867 Medical Network PRO RATA TOTAL GROSS ASSETS BY COUNTRY PRO RATA TOTAL GROSS ASSETS BY PROPERTY TYPE 7% 5% 45% 43% 57% 43% General Acute Care Hospitals Switzerland Germany Inpatient Rehabilitation Hospitals Spain Italy JOINT VENTURE IMPACT Income Statement Impact to MPT Amounts Financial Statement Location Real estate joint venture income (B) $ 6,855 Earnings from equity interests Management fee revenue $ 147 Interest and other income Shareholder loan interest revenue $ 4,488 Interest and other income Balance Sheet Impact to MPT Amounts Financial Statement Location Real estate joint venture investments $ 817,386 Equity Investments Other equity investments 363,639 Equity Investments Total equity investments $ 1,181,025 Shareholder loans $ 337,689 Other Loans (A) Purchased the remaining 50% interest in IMED Valencia Hospitales in Spain in December 2021, which was formerly owned by MPTs joint venture partner. Includes revenue and expenses prior to the date of acquiring the additional interest. (B) Includes $1.9 million of straight-line rent revenue, $13.2 million of depreciation and amortization expense, and $8.7 million of interest expense on third-party debt and shareholder loans. MEDICAL PROPERTIES TRUST | SUPPLEMENTAL INFORMATION | Q4 2021 18
MPT Medical Properties Trust 1000 Urban Center Drive, Suite 501 Birmingham, AL 35242 (205) 969-3755 NYSE: MPW www.medicalpropertiestrust.com Contact: Drew Babin, Senior Managing Director of Corporate Communications (646) 884-9809 or dbabin@medicalpropertiestrust.com or Tim Berryman, Managing Director of Investor Relations (205) 397-8589 or tberryman@medicalpropertiestrust.com