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.) |
|
||
(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 April 28, 2022, Medical Properties Trust, Inc. (the “Company”) issued a press release announcing its financial results for the three months ended March 31, 2022. 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.
Item 7.01 | Regulation FD Disclosure |
Beginning on April 28, 2022, the Company intends to use the presentation attached to this Current Report on Form 8-K as Exhibit 99.3 in discussions with investors. The presentation was also posted on the Company’s website, www.medicalpropertiestrust.com, on April 28, 2022.
The information in this Current Report on Form 8-K, including the information set forth in Exhibit 99.1, Exhibit 99.2, and Exhibit 99.3 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 the Company 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 April 28, 2022 reporting financial results for the three months ended March 31, 2022 | |
99.2 | Medical Properties Trust, Inc. 1st Quarter 2022 Supplemental Information | |
99.3 | Investor Presentation dated April 28, 2022 | |
104 | Cover Page Interactive Data File (embedded within the Inline XBRL document) |
2
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: April 28, 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 FIRST QUARTER RESULTS
Per Share Net Income of $1.05 and Normalized FFO of $0.47 in First Quarter
12% Growth in Per Share NFFO Versus Prior-Year Quarter
Acquisitions, Dispositions and Macquarie Partnership Consistent with Accretive Capital Recycling Strategy
Birmingham, AL April 28, 2022 Medical Properties Trust, Inc. (the Company or MPT) (NYSE: MPW) today announced financial and operating results for the first quarter ended March 31, 2022, as well as certain events occurring subsequent to quarter end, continuing its record of double-digit growth in per share normalized funds from operations. MPT plans to also publish an Investor Update presentation under Webcasts & Presentations in the Investor Relations section of the Companys website, https://investor-relations.medicalpropertiestrust.com/.
| Net income of $1.05 and Normalized Funds from Operations (NFFO) of $0.47 for the 2022 first quarter on a per diluted share basis; |
| Completed in March the previously announced hospital partnership transaction with Macquarie Asset Management, resulting in an approximate $600 million gain on sale of real estate and roughly $1.3 billion in cash proceeds; |
| Added approximately $370 million in new investments, including an aggregate of approximately $200 million for four general acute hospitals in Finland; |
| As of late-April completed the profitable sales for cash proceeds of $86 million of two under-rented general acute hospitals formerly operated by Adeptus Health (Adeptus), reducing to less than $10 million the Companys current investment in vacant Adeptus facilities; and |
| In February declared a quarterly dividend of $0.29 per share, an approximate 4% increase that represents the tenth consecutive year in which MPT has increased its dividend. |
Our hospitals continue to perform exceptionally well, and the organic growth benefits provided by our inflation-protected leases were realized early in 2022, as average cash rents for the majority of our portfolio increased by roughly 4%, said Edward K. Aldag, Jr., Chairman, President, and Chief Executive Officer. Our history of consistent dividend growth has no doubt been driven by accretive acquisitions, but it is equally the product of the uninterrupted and compounding annual cash rent increases that are embedded in virtually 100% of our leases.
1
Mr. Aldag continued, Our expected acquisitions of one to three billion dollars in 2022 is focused on the most compelling opportunities available and sized to be funded primarily with non-dilutive and attractively priced proceeds from partnership transactions such as the Macquarie deal and single asset dispositions such as the Adeptus sales.
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 2021 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 first quarter, MPT continued to execute on its growth pipeline while considering several funding options that are expected to achieve accretive spreads while normalizing leverage.
In March, MPT invested approximately 178 million in a portfolio of four general acute hospitals in Helsinki, Oulu, Turku and Kuopio, Finland. The facilities are leased to Pihlajalinna, one of the largest private hospital operators in Finland, subject to leases with CPI-based rent escalators. Finland is recognized for its high quality of care and is a top destination in Europe for orthopedic surgeries among other acute conditions. MPTs entry into the Nordic region, where reforms are creating new opportunities for private investment in health care, increases its overall investment footprint to 10 countries.
In addition, construction of the $48 million new-build Bakersfield inpatient rehabilitation hospital for Ernest was completed and added to the rent paying portfolio, and an additional £96 million was invested in the Priory relationship.
The Company has total pro forma gross assets of approximately $22.2 billion, including $16.0 billion of general acute care hospitals, $2.6 billion of behavioral health facilities, $2.0 billion of inpatient rehabilitation hospitals, $0.3 billion of long-term acute care hospitals, and $0.2 billion of 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 as well as in Germany, the United Kingdom, Switzerland, Italy, Spain, Finland, Portugal, Australia and Colombia. The properties are leased to or mortgaged by 53 hospital operating companies.
OPERATING RESULTS AND OUTLOOK
Net income for the first quarter ended March 31, 2022 was $632 million ($1.05 per diluted share) compared to $164 million ($0.28 per diluted share) in the year earlier period.
NFFO for the first quarter was $282 million ($0.47 per diluted share) compared to $244 million ($0.42 per diluted share) in the year earlier period, a 12% increase on a per share basis.
The Company is introducing several enhancements to its periodic disclosures with this quarters results. First, the previous practice of providing run-rate estimates of future results has been revised to estimate 2022 calendar earnings and NFFO based on the existing portfolio and capitalization. The existing portfolio will include binding acquisition agreements and lease terms but will exclude the expected future contributions from development and other capital projects, the possible future impact of deleveraging and other capital markets strategies. Accordingly, the Companys new estimates of per share net income and NFFO of $1.10 to $1.14 and $1.78 to $1.82, respectively, do not include approximately $25 million in rents from development projects that were included in the previous run-rate estimates. The 2022 estimate includes the Companys expectations concerning Primes repurchase options for two of the five Prime master leases; that outcome remains undetermined, but the dilutive impact of any potential outcome would remain within the scope of the guidance range.
2
Second, the Companys Quarterly Supplemental package now includes enhanced disclosures of tenant-level EBITDARM to lease payment coverage levels. Most leases are now listed by named tenant relationship, along with a description of calculation methodology.
Third, the Quarterly Supplemental package provides additional information about certain Company investments in unconsolidated real estate partnerships and investments in hospital operations that are affiliated with MPT lessees.
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, April 28, 2022 at 11:00 a.m. Eastern Time to present the Companys financial and operating results for the quarter ended March 31, 2022. 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 4176908. 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 May 12, 2022 using dial-in numbers 855-859-2056 and 404-537-3406 for U.S. and International callers, respectively, and passcode 4176908. 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.
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.
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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 ten 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 guidance for 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, rising inflation 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 property sales, loan repayments, and other capital recycling transactions do not occur; (xvii) the accuracy of our methodologies and estimates regarding environmental, social and governance (ESG) metrics, goals and targets, tenant willingness and ability to collaborate towards reporting ESG metrics and meeting ESG goals and targets, and the impact of governmental regulation on our ESG efforts; and (xviii) the risk that the sale by Steward of its Utah operations to HCA does not occur.
4
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, 2021 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) | ||||||||
March 31, 2022 | December 31, 2021 | |||||||
(Unaudited) | (A) | |||||||
Assets |
||||||||
Real estate assets |
||||||||
Land, buildings and improvements, intangible lease assets, and other |
$ | 14,029,059 | $ | 14,062,722 | ||||
Investment in financing leases |
2,063,227 | 2,053,327 | ||||||
Real estate held for sale |
| 1,096,505 | ||||||
Mortgage loans |
224,281 | 213,211 | ||||||
|
|
|
|
|||||
Gross investment in real estate assets |
16,316,567 | 17,425,765 | ||||||
Accumulated depreciation and amortization |
(1,054,361 | ) | (993,100 | ) | ||||
|
|
|
|
|||||
Net investment in real estate assets |
15,262,206 | 16,432,665 | ||||||
Cash and cash equivalents |
248,846 | 459,227 | ||||||
Interest and rent receivables |
65,933 | 56,229 | ||||||
Straight-line rent receivables |
660,421 | 728,522 | ||||||
Investments in unconsolidated real estate joint ventures |
1,534,514 | 1,152,927 | ||||||
Investments in unconsolidated operating entities |
1,455,842 | 1,289,434 | ||||||
Other loans |
66,963 | 67,317 | ||||||
Other assets |
523,109 | 333,480 | ||||||
|
|
|
|
|||||
Total Assets |
$ | 19,817,834 | $ | 20,519,801 | ||||
|
|
|
|
|||||
Liabilities and Equity |
||||||||
Liabilities |
||||||||
Debt, net |
$ | 10,117,989 | $ | 11,282,770 | ||||
Accounts payable and accrued expenses |
595,026 | 607,792 | ||||||
Deferred revenue |
18,834 | 25,563 | ||||||
Obligations to tenants and other lease liabilities |
166,626 | 158,005 | ||||||
|
|
|
|
|||||
Total Liabilities |
10,898,475 | 12,074,130 | ||||||
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 598,676 shares at March 31, 2022 and 596,748 |
599 | 597 | ||||||
shares at December 31, 2021 |
||||||||
Additional paid-in capital |
8,547,892 | 8,564,009 | ||||||
Retained earnings (deficit) |
369,972 | (87,691 | ) | |||||
Accumulated other comprehensive loss |
(5,010 | ) | (36,727 | ) | ||||
|
|
|
|
|||||
Total Medical Properties Trust, Inc. Stockholders Equity |
8,913,453 | 8,440,188 | ||||||
Non-controlling interests |
5,906 | 5,483 | ||||||
|
|
|
|
|||||
Total Equity |
8,919,359 | 8,445,671 | ||||||
|
|
|
|
|||||
Total Liabilities and Equity |
$ | 19,817,834 | $ | 20,519,801 | ||||
|
|
|
|
(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, 2022 | March 31, 2021 | |||||||
Revenues |
||||||||
Rent billed |
$ | 263,402 | $ | 213,344 | ||||
Straight-line rent |
61,044 | 54,873 | ||||||
Income from financing leases |
51,776 | 50,894 | ||||||
Interest and other income |
33,578 | 43,654 | ||||||
|
|
|
|
|||||
Total revenues |
409,800 | 362,765 | ||||||
Expenses |
||||||||
Interest |
91,183 | 86,972 | ||||||
Real estate depreciation and amortization |
85,316 | 75,642 | ||||||
Property-related (A) |
8,598 | 5,453 | ||||||
General and administrative |
41,424 | 36,073 | ||||||
|
|
|
|
|||||
Total expenses |
226,521 | 204,140 | ||||||
Other income (expense) |
||||||||
Gain on sale of real estate and other, net |
451,638 | 989 | ||||||
Earnings from equity interests |
7,338 | 7,101 | ||||||
Debt refinancing and unutilized financing costs |
(8,816 | ) | (2,269 | ) | ||||
Other (including fair value adjustments on securities) |
9,887 | 7,794 | ||||||
|
|
|
|
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Total other income |
460,047 | 13,615 | ||||||
|
|
|
|
|||||
Income before income tax |
643,326 | 172,240 | ||||||
Income tax expense |
(11,379 | ) | (8,360 | ) | ||||
|
|
|
|
|||||
Net income |
631,947 | 163,880 | ||||||
Net income attributable to non-controlling interests |
(266 | ) | (97 | ) | ||||
|
|
|
|
|||||
Net income attributable to MPT common stockholders |
$ | 631,681 | $ | 163,783 | ||||
|
|
|
|
|||||
Earnings per common share - basic and diluted: |
||||||||
Net income attributable to MPT common stockholders |
$ | 1.05 | $ | 0.28 | ||||
|
|
|
|
|||||
Weighted average shares outstanding - basic |
598,676 | 576,240 | ||||||
Weighted average shares outstanding - diluted |
598,932 | 577,541 | ||||||
Dividends declared per common share |
$ | 0.29 | $ | 0.28 |
(A) Includes $6.3 million and $3.5 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 March 31, 2022 and 2021, 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 | |||||||
March 31, 2022 | March 31, 2021 | |||||||
FFO information: |
||||||||
Net income attributable to MPT common stockholders |
$ | 631,681 | $ | 163,783 | ||||
Participating securities share in earnings |
(402 | ) | (370 | ) | ||||
|
|
|
|
|||||
Net income, less participating securities share in earnings |
$ | 631,279 | $ | 163,413 | ||||
Depreciation and amortization |
99,459 | 88,536 | ||||||
Gain on sale of real estate and other, net |
(451,638 | ) | (989 | ) | ||||
|
|
|
|
|||||
Funds from operations |
$ | 279,100 | $ | 250,960 | ||||
Write-off (recovery) of straight-line rent and other |
2,604 | (5,238 | ) | |||||
Non-cash fair value adjustments |
(8,023 | ) | (4,065 | ) | ||||
Debt refinancing and unutilized financing costs |
8,816 | 2,269 | ||||||
|
|
|
|
|||||
Normalized funds from operations |
$ | 282,497 | $ | 243,926 | ||||
Share-based compensation |
11,804 | 12,264 | ||||||
Debt costs amortization |
5,613 | 4,009 | ||||||
Rent deferral, net |
(3,716 | ) | 803 | |||||
Straight-line rent revenue and other |
(77,333 | ) | (67,275 | ) | ||||
|
|
|
|
|||||
Adjusted funds from operations |
$ | 218,865 | $ | 193,727 | ||||
|
|
|
|
|||||
Per diluted share data: |
||||||||
Net income, less participating securities share in earnings |
$ | 1.05 | $ | 0.28 | ||||
Depreciation and amortization |
0.17 | 0.15 | ||||||
Gain on sale of real estate and other, net |
(0.75 | ) | | |||||
|
|
|
|
|||||
Funds from operations |
$ | 0.47 | $ | 0.43 | ||||
Write-off (recovery) of straight-line rent and other |
| (0.01 | ) | |||||
Non-cash fair value adjustments |
(0.01 | ) | | |||||
Debt refinancing and unutilized financing costs |
0.01 | | ||||||
Normalized funds from operations | $ | 0.47 | $ | 0.42 | ||||
Share-based compensation |
0.02 | 0.02 | ||||||
Debt costs amortization |
0.01 | 0.01 | ||||||
Rent deferral, net |
(0.01 | ) | | |||||
Straight-line rent revenue and other |
(0.12 | ) | (0.11 | ) | ||||
|
|
|
|
|||||
Adjusted funds from operations |
$ | 0.37 | $ | 0.34 | ||||
|
|
|
|
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
2022 Guidance Reconciliation
(Unaudited)
2022 Guidance -Per Share(1) | ||||||||
Low | High | |||||||
Net income attributable to MPT common stockholders |
$ | 1.10 | $ | 1.14 | ||||
Participating securities share in earnings |
| | ||||||
|
|
|
|
|||||
Net income, less participating securities share in earnings |
$ | 1.10 | $ | 1.14 | ||||
Depreciation and amortization |
0.68 | 0.68 | ||||||
|
|
|
|
|||||
Funds from operations |
$ | 1.78 | $ | 1.82 | ||||
Other adjustments |
| | ||||||
|
|
|
|
|||||
Normalized funds from operations | $ | 1.78 | $ | 1.82 | ||||
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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) | March 31, 2022 | |||
Total Assets |
$ | 19,817,834 | ||
Add: |
||||
Accumulated depreciation and amortization |
1,054,361 | |||
Incremental gross assets of our joint ventures and other(1) |
1,611,625 | |||
Less: |
||||
Cash on hand |
(248,846 | ) | ||
|
|
|||
Total Pro Forma Gross Assets(2) |
$ | 22,234,974 | ||
|
|
(1) | Adjustment to reflect our share of our joint ventures gross assets and certain lease intangible assets. |
(2) | Total pro forma gross assets is total assets before accumulated depreciation/amortization and assumes material real estate commitments on new investments are fully funded using cash on hand (if available). We believe total pro forma 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. |
Adjusted Revenues
(Unaudited)
For the Three Months Ended |
||||
(Amounts in thousands) | March 31, 2022 | |||
Total Revenues |
$ | 409,800 | ||
Revenue from real estate properties owned through joint venture arrangements |
34,976 | |||
|
|
|||
Total Adjusted Revenues(1) |
$ | 444,776 | ||
|
|
(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 revenues 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
Q1 2022 SUPPLEMENTAL
FORWARD-LOOKING STATEMENTS COMPANY OVERVIEW Forward-looking statements involve known and 3 unknown risks, uncertainties and other
factors that Company Information 3 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;
FINANCIAL INFORMATION expected payout ratio; the amount of acquisitions of healthcare real estate, if any; Net Debt to EBITDA; Reconciliation of Net Income to Funds from Operations 6 portfolio diversification; capital markets conditions;
the repayment of debt arrangements; statements Debt Summary 7 concerning the additional income to the Company as 6 a result of ownership interests in certain hospital oper- Pro
Forma Net Debt /Annualized Adjusted EBITDA 8 ations 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 PORTFOLIO INFORMATION other market conditions; the competitive environment in which the Company operates; the execution of the Pro Forma Lease and Loan Maturity Schedule 9 Companys business plan; financing risks; the Companys
ability to maintain its status as a REIT for federal
Total Pro Forma Gross Assets and Adjusted Revenue income tax purposes; acquisition and development
risks; potential environmental and other liabilities;
9 by Asset Type, Operator, State and
Country 10 potential impact from COVID-19 on our tenants/bor-
rowers and the related impact to us; and other factors
EBITDARM to Rent Coverage 13 affecting the real estate industry generally or health-care real estate in particular. For further discussion of
Summary of Investments and Development Projects 14 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,
2021, and as updated by the Companys subsequently FINANCIAL
STATEMENTS filed Quarterly Reports on Form 10-Q and other SEC filings. Except as otherwise required by the federal
Consolidated Statements of Income 15 securities laws, the Company undertakes no obligation to update the information in this report.
Consolidated Balance Sheets 16
Certain information in the supplemental package
15 Investments in Unconsolidated Real Estate may be shown pro forma for transactions completed subsequent to period end and the consummation of Joint Ventures 17 pending
transactions, including leasing five facilities in
Utah to a new tenant. The pro forma adjustments are
Investments in Unconsolidated Operating Entities 18 based upon available information and assumptions
that we believe are reasonable. There is no assurance
Unconsolidated Real Estate Joint Venture
Details 19 that any pending transactions will occur.Copper Springs EastGilbert, Arizona.
COMPANY OVERVIEW
M edical 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.
As of March 31, 2022.
440 53 ~46,000
32 10
properties operators beds U. S. states countries
MEDICAL PROPERTIES
TRUST | SUPPLEMENTAL INFORMATION | Q1 2022 3
COMPANY OVERVIEW
MPT OFFICERS:
From the Left: Charles R. Lambert, Emmett E. McLean, R. Lucas Savage, Edward K. Aldag, Jr., R. Steven Hamner, Rosa H. Hooper 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
Emily W. Murphy
(205) 969-3755
Elizabeth N. Pitman
D. Paul Sparks, Jr. (205) 969-3756
(fax)
Michael G. Stewart www.medicalpropertiestrust.com
C. Reynolds Thompson,
III
MEDICAL PROPERTIES TRUST | SUPPLEMENTAL INFORMATION | Q1 2022 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
Cheadle Royal HospitalManchester,
United Kingdom
MEDICAL PROPERTIES TRUST | SUPPLEMENTAL INFORMATION | Q1 2022 5
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, 2022 March 31, 2021
FFO INFORMATION:
Net income attributable to MPT common stockholders $ 631,681
$ 163,783 Participating securities share in earnings (402) (370)
Net income, less participating securities share in earnings $ 631,279 $ 163,413
Depreciation and amortization 99,459 88,536 Gain on sale of real estate and other, net (451,638) (989)
Funds from operations $ 279,100 $ 250,960
Write-off
(recovery) of straight-line rent and other 2,604 (5,238) Non-cash fair value adjustments (8,023) (4,065) Debt refinancing and unutilized financing costs 8,816 2,269
Normalized funds from operations $ 282,497 $ 243,926
Share-based compensation 11,804 12,264
Debt costs amortization 5,613 4,009 Rent deferral, net (3,716) 803 Straight-line rent revenue and other (77,333) (67,275)
Adjusted funds from operations $ 218,865
$ 193,727
PER DILUTED SHARE DATA:
Net income, less participating
securities share in earnings $ 1.05 $ 0.28 Depreciation and amortization 0.17 0.15 Gain on sale of real estate and other, net (0.75) -
Funds from operations
$ 0 .47 $ 0 .43
Write-off (recovery) of straight-line rent and other (0.01)
Non-cash fair value adjustments (0.01) -Debt refinancing and unutilized financing costs 0.01 -
Normalized funds from
operations $ 0 .47 $ 0 .42
Share-based compensation 0.02 0.02 Debt costs amortization 0.01 0.01 Rent deferral, net (0.01) -Straight-line rent revenue and other
(0.12) (0.11)
Adjusted funds from operations $ 0 .37 $ 0 .34
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 | Q1 2022 6
FINANCIAL INFORMATION
(As of March 31, 2022)
($ amounts in thousands)
DEBT MATURITIES
Senior Unsecured
Year Term Loans/Revolver Total Debt % of Total Notes
2022 $ $ $0.0% 2023
525,520525,520 5.2% 20241,429,259 1,429,259 14.0% 2025 553,350 919,660 1,473,010 14.5% 2026 1,710,250 200,000 1,910,250 18.8% 2027 1,400,000 1,400,000 13.7% 2028 788,280788,280 7.7% 2029 900,000900,000 8.8% 2030
459,830459,830 4.5% 2031 1,300,000 1,300,000 12.8%
Totals $ 7,637,230 $ 2,548,919 $ 10,186,149 100.0%
DEBT BY LOCAL CURRENCY
Senior Unsecured
Term Loans/Revolver Total Debt % of Total Notes
United States $ 4,100,000 $ 530,000 $
4,630,000 45.5% United Kingdom 2,430,530 919,660 3,350,190 32.9% Australia 897,840 897,840 8.8% Europe 1,106,700 201,419 1,308,119 12.8%
Totals $ 7,637,230 $
2,548,919 $ 10,186,149 100.0%
DEBT SUMMARY
Debt Instrument Rate Type Rate
Balance
2024 Credit Facility Revolver Variable 1.200%1.650% $ 531,419
2026 Term Loan Variable 1.900% 200,000 RATE TYPE AS PERCENTAGE OF TOTAL DEBT
2.550% Notes Due 2023 (£400M) (A) Fixed 2.550% 525,520
(A) (B) Variable
2024 AUD Term Loan (A$1.2B) Fixed 2.450% 897,840 7.2% 3.325% Notes Due 2025 (€500M) (A) Fixed 3.325% (A) Fixed (C) 1.949% 2025 GBP Term Loan (£700M) 0.993% Notes Due 2026 (€500M) (A) Fixed 0.993% 5.250% Notes Due 2026 Fixed 5.250%
(A) Fixed 2.500% Fixed 2.500% Notes Due 2026 (£500M)
92.8%
5.000% Notes Due 2027 Fixed 5.000% 3.692% Notes Due 2028 (£600M) (A) Fixed 3.692% 4.625% Notes Due 2029 Fixed 4.625% 3.375% Notes Due 2030 (£350M) (A) Fixed
3.375%
3.500% Notes Due 2031 Fixed 3.500% 1,300,000 $ 10,186,149
Debt
issuance costs and discount (68,160) Weighted average rate 3.272% $ 10,117,989
(A) Non-USD denominated debt converted to
U.S. dollars at March 31, 2022.
(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 | Q1 2022 7
FINANCIAL INFORMATION
PRO FORMA NET DEBT /
ANNUALIZED ADJUSTED EBITDA
(Unaudited)
(Amounts in thousands)
For the Three Months Ended March 31, 2022
Net income attributable to MPT common
stockholders $ 631,681 Pro forma adjustments for investment activity (A) (22,566) Pro forma net income $ 609,115
Add back:
Interest (B) 89,428 Depreciation and amortization (B) 96,914 Share-based compensation 11,804 Gain on sale of real estate and other, net (451,638)
Write-off of straight-line rent and other 2,604 Debt refinancing and unutilized financing costs 8,816 Non-cash fair value adjustments (8,023) Income tax (B) 12,156
1Q 2022 Pro forma adjusted EBITDA $ 371,176 Annualization $ 1,484,704
Total
debt at March 31, 2022 $ 10,117,989 Pro forma cash at March 31, 2022 (C) (495,155)
Pro forma net debt $ 9,622,834
Pro forma net debt / annualized adjusted EBITDA 6.5x
(A) Reflects our binding commitments on
leasing five facilities in Utah to a new tenant, as well as other mid-quarter investments and property sales, such as the Steward Massachusetts partnership.
(B) Includes our share of interest, real estate depreciation and income tax expense from unconsolidated joint ventures.
(C) Represents cash at March 31, 2022 adjusted for costs funded on development and other capital projects not yet generating revenue.
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 | Q1 2022 8
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 11 $ 47,372 3.5% 2023 5 15,341 1.1% 2024 1 2,731 0.2% 2025 6 18,226 1.4% 2026
4 2,333 0.2% 2027 1 3,346 0.2% 2028 4 5,779 0.4% 2029 6 16,219 1.2% 2030 11 6,048 0.4% 2031 4 4,211 0.3% Thereafter 380 1,228,401 91.1%
433 $ 1,350,007 100.0%
Percentage of total base rent/interest
100%
91.1% 90% 80% 70% 60% 50% 40% 30% 20% 10% 3.5%
1.1% 0.2% 1.4% 0.2% 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 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 | Q1 2022 9
PORTFOLIO INFORMATION
TOTAL PRO FORMA GROSS ASSETS
AND ADJUSTED REVENUE BY ASSET TYPE
(March 31, 2022)
($ amounts in thousands)
Pro Forma Adjusted
Total Percentage of Q1 2022 Percentage of Asset Types
Properties (A) (B) Gross Assets Total Gross Assets Revenue Q1 2022 Revenue
General Acute Care Hospitals 208 $ 15,991,573 71.9% $ 334,858 75.3% Behavioral
Health Facilities 60 2,610,577 11.8% 50,897 11.4% Inpatient Rehabilitation Hospitals 111 2,018,521 9.1% 45,043 10.1% Long-Term Acute Care Hospitals 20 337,963 1.5% 8,302 1.9% Freestanding ER/Urgent Care Facilities 41 248,272 1.1% 5,676 1.3%
Other 1,028,068 4.6% -
Total 440 $ 22,234,974 100.0% $ 444,776
100.0%
TOTAL PRO FORMA GROSS ASSETS BY ASSET TYPE TOTAL ADJUSTED REVENUE BY ASSET TYPE
1% 1% 5% 1% 2% 9%
General Acute Care Hospitals 10% Behavioral Health Facilities 12% 12%
Inpatient Rehabilitation Hospitals
72%
Long-Term Acute Care Hospitals
75%
Freestanding ER/Urgent Care Facilities Other
DOMESTIC PRO FORMA GROSS ASSETS BY ASSET TYPE DOMESTIC ADJUSTED REVENUE BY ASSET TYPE
2% 5% 3%
3% 7% 2%
6% General Acute Care Hospitals
8%
Behavioral Health Facilities
9%
Inpatient Rehabilitation Hospitals
75% Long-Term Acute Care Hospitals 80% 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 material real
estate commitments on new investments are fully funded. See press release dated April 28, 2022 for reconciliation of total assets to total pro forma gross assets at March 31, 2022.
(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 April 28, 2022 for a reconciliation of actual revenues to adjusted revenues.
MEDICAL PROPERTIES TRUST | SUPPLEMENTAL INFORMATION | Q1 2022 10
PORTFOLIO INFORMATION
TOTAL PRO FORMA GROSS
ASSETSLARGEST INDIVIDUAL FACILITY
(March 31, 2022)
Percentage of
COMPREHENSIVE PROPERTY-LEVEL UNDERWRITING FRAMEWORK
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 Prospect Medical Holdings 1.1% market? both practice and specialty?
Circle Health 1.0%
Swiss Medical Network 0.9% Would the community
suffer were this Would the facility be attractive to multiple hospital not here? identified high-quality replacement operators
48 operators 1.3% in the rare
event a tenant must be replaced?
Largest Individual Facility Investment is Less Than Are hospital relationships with admitting
3% of MPT Investment Portfolio local physicians deep, time-tested, and Could the operator potentially be replaced at sustainable? equal or more favorable (to MPT) terms?
TOTAL PRO FORMA GROSS ASSETS AND ADJUSTED REVENUE BY OPERATOR
(March 31,
2022)
($ amounts in thousands)
Pro Forma Adjusted
Total Percentage of Q1 2022 Percentage of Operators Properties (A) (B) Gross Assets Total Gross Assets Revenue Q1 2022 Revenue
Steward Health Care 34
Florida market $1,337,192 6.0% $ 25,304 5.7% Massachusetts market
1,173,852 5.3% 35,818 8.0% Texas/Arkansas/Louisiana market 983,344 4.4% 18,612 4.2% Arizona market 338,873 1.5% 8,532 1.9% Ohio/Pennsylvania market 141,615 0.7% 3,565 0.8% Utah market 32,763 7.4% Circle Health 36 2,408,716 10.8% 51,212
11.5% Prospect Medical Holdings 14 1,639,588 7.4% 38,684 8.7% Swiss Medical Network 17 1,299,524 5.8% 11,751 2.6% HCA Healthcare 9 1,240,264 5.6% 355 0.1% 48 operators 330 10,643,938 47.9% 218,180 49.1% Other 1,028,068 4.6%
Total 440 $ 22,234,974 100.0% $ 444,776 100.0%
(A) Includes gross real estate
assets, other loans, equity investments, and pro rata portion of gross assets in joint venture arrangements, assuming material real estate commitments on new investments are fully funded. See press release dated April 28, 2022 for
reconciliation of total assets to total pro forma gross assets at March 31, 2022.
(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 April 28, 2022 for a reconciliation of actual revenues to adjusted revenues.
MEDICAL PROPERTIES TRUST | SUPPLEMENTAL INFORMATION | Q1 2022 11
PORTFOLIO INFORMATION
TOTAL PRO FORMA GROSS ASSETS
AND ADJUSTED REVENUE BY U.S. STATE AND COUNTRY
(March 31, 2022)
($ amounts in
thousands)
Pro Forma Adjusted
Total Percentage of Q1 2022 Percentage of U.S.
States and Other Countries Properties (A) (B) Gross Assets Total Gross Assets Revenue Q1 2022 Revenue
Texas 52 $ 1,995,890 9.0% $ 34,844 7.8% California 28
1,641,873 7.4% 41,291 9.3% Florida 8 1,337,191 6.0% 25,305 5.7% Utah 7 1,255,334 5.6% 33,768 7.6% Massachusetts 10 1,179,252 5.3% 35,981 8.1%
27 Other States 124
5,141,829 23.1% 125,907 28.3% Other 730,743 3.3% -
United States 229 $ 13,282,112 59.7% $ 297,096 66.8%
United Kingdom 81 $ 4,362,100 19.6% $ 83,906 18.9% Switzerland 17 1,299,524 5.9% 11,751 2.6% Germany 82 1,222,002 5.5% 24,883 5.6% Australia 11 986,926 4.4% 17,031 3.8% Spain 3
258,343 1.2% 3,604 0.8% Other Countries 17 526,642 2.4% 6,505 1.5% Other 297,325 1.3% -
International 211 $ 8,952,862 40.3% $ 147,680 33.2% Total 440
$ 22,234,974 100.0% $ 444,776 100.0%
(A) Includes gross real estate assets, other loans, equity investments, and pro rata portion of gross assets in joint venture
arrangements, assuming material real estate commitments on new investments are fully funded. See press release dated April 28, 2022 for reconciliation of total assets to total pro forma gross assets at March 31, 2022.
(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 April 28, 2022 for a reconciliation of actual revenues to adjusted revenues.
TOTAL PRO FORMA GROSS ASSETS BY COUNTRY TOTAL ADJUSTED REVENUE BY
COUNTRY
2% 1%
4% 1% 1%
1% 5%
United States 3% 4%
6% United Kingdom
6%
Switzerland
60% Germany 19% 20%
Australia 67% Spain Other Countries Other
PRO FORMA GROSS ASSETS BY U.S. STATE ADJUSTED
REVENUE BY U.S. STATE
Texas
3% 9% 8%
California 9% Florida 28% 23% 8%
Utah
6%
6% Massachusetts
8%
5% 6% 27 Other States
8%
Other
MEDICAL PROPERTIES TRUST | SUPPLEMENTAL INFORMATION | Q1 2022 12
PORTFOLIO INFORMATION
TOTAL PORTFOLIO TTM
EBITDARM(A)(B) RENT COVERAGE INCLUSIVE OF CARES ACT GRANTS
YOY AND SEQUENTIAL QUARTER COMPARISONS BY PROPERTY TYPE
5
4
3.0x
3.2x 3.2x 3.2x
2.9x 2.9x 2.9x 2.7x 2.8x 2.7x 3 2.1x 2.0x 2.0x 2.1x 2.0x 2.0x 2.1x
2 1.8x 1.8x 1.6x
1
0
General Acute Inpatient Rehabilitation Behavioral Health Facilities Long-Term Acute Total
Portfolio Care Hospitals Facilities Care Hospitals Q4 2020 (YoY) Q4 2021 (YoY) Q3 2021 (QoQ) Q4 2021 (QoQ)
EBITDARM RENT COVERAGE: OPERATORS WITH PROPERTY-LEVEL
REPORTING NOT REQUIRED OR UNAVAILABLE PROPERTY-LEVEL REPORTING
Above data represents 88% of MPT Total Real Estate Investment
Notes: All data presented is on a trailing twelve month basis. For properties acquired in the preceding twelve months, data is for the period between MPT acquisition and
12/31/2021.
(A) EBITDARM is earnings before interest, taxes, depreciation, amortization, rent and management fees. EBITDARM does not reflect historical cash
expenditures or future cash requirements for facility capital expenditures or contractual commitments. In addition, EBITDARM does not represent property net income or cash flows from operations and should not be considered an alternative to those
indicators. EBITDARM figures utilized in calculating coverages presented are based on financial information provided by MPTs tenants. MPT has not independently verified this information [but has no reason to believe this information is
inaccurate in any material respect]. TTM Coverages calculated based on actual, unadjusted EBITDARM results as presented in tenant financial reporting and cash rent paid to MPT, except as noted below.
- Total CARES Act Grants received by tenants during the period between March 2020 and June 2021 have been spread evenly by quarter from Q2 2020 through Q2 2021. Any additional
grants received after June 2021 are included in the quarter that they were recorded by the tenant.
- Prospect EBITDARM adjusted to exclude out-of-period California Provider Fee income in March 2020 and spread evenly to the period from July 2019 to March 2020.
- Steward EBITDARM adjusted for one-time out-of-period legal
settlement in July 2020.
- LifePoint EBITDARM adjusted for one-time out-of-period legal settlement in June 2020.
(B) Total Master Lease, Cross Defaulted and/or with Parent Guaranty coverage
includes Prospects Pennsylvania and Connecticut facilities which are classified by Prospect as held for sale as part of publicly announced agreements executed by Prospect to sell assets.
(C) Prospect coverage excludes Pennsylvania and Connecticut facilities classified by Prospect as held for sale as part of publicly announced agreements executed by Prospect to sell
the assets.
MEDICAL PROPERTIES TRUST | SUPPLEMENTAL INFORMATION | Q1 2022 13
PORTFOLIO INFORMATION
SUMMARY OF COMPLETED
INVESTMENTS
(For the three months ended March 31, 2022)
(Amounts in
thousands)
Operator Location Investment (A) Commencement Date Investment/ Development
Priory Group U.K. $ 131,105 2/16/2022 Investment Ernest Health California 47,929 3/1/2022 Development Pihlajalinna Finland 194,234 3/11/2022 Investment
$ 373,268
SUMMARY OF CURRENT DEVELOPMENT PROJECTS AS OF MARCH 31, 2022
(Amounts in thousands)
Costs Incurred as of Estimated Commencement Operator Location Commitment 3/31/2022 Date
Ernest Health California $ 47,700 $ 37,104 Q3 2022 Steward Health Care Texas 169,408 56,890 Q2 2024
$ 217,108 $ 93,994
(A) Excludes transaction costs, such as real estate transfer and other
taxes. Amount assumes exchange rate as of the investment date.
MEDICAL PROPERTIES TRUST | SUPPLEMENTAL INFORMATION | Q1 2022 14
FINANCIAL STATEMENTS
CONSOLIDATED STATEMENTS OF
INCOME
(Unaudited)
(Amounts in thousands, except per share data)
For the Three Months Ended
March 31, 2022 March 31, 2021 REVENUES
Rent billed $ 263,402 $ 213,344 Straight-line rent 61,044 54,873 Income from financing leases 51,776 50,894 Interest and other income 33,578 43,654 Total revenues 409,800 362,765
EXPENSES
Interest 91,183 86,972 Real estate depreciation and amortization
85,316 75,642 Property-related (A) 8,598 5,453 General and administrative 41,424 36,073 Total expenses 226,521 204,140
OTHER INCOME (EXPENSE)
Gain on sale of real estate and other, net 451,638 989 Earnings from equity interests 7,338 7,101 Debt refinancing and unutilized financing costs (8,816) (2,269) Other (including
fair value adjustments on securities) 9,887 7,794 Total other income 460,047 13,615
Income before income tax 643,326 172,240 Income tax expense (11,379) (8,360)
Net income 631,947 163,880
Net income attributable to non-controlling interests (266) (97)
Net income attributable to MPT common stockholders $ 631,681 $ 163,783
EARNINGS PER COMMON SHAREBASIC AND DILUTED
Net income attributable to MPT common
stockholders $ 1.05 $ 0.28
WEIGHTED AVERAGE SHARES OUTSTANDINGBASIC 598,676 576,240 WEIGHTED AVERAGE SHARES OUTSTANDINGDILUTED 598,932 577,541 $ -DIVIDENDS DECLARED PER COMMON SHARE $ 0.29 $ 0.28
(A) Includes $6.3 million and $3.5 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 March 31, 2022 and 2021, respectively.
MEDICAL PROPERTIES TRUST | SUPPLEMENTAL INFORMATION | Q1 2022 15
FINANCIAL STATEMENTS
CONSOLIDATED BALANCE SHEETS
(Amounts in thousands, except per share data)
March 31, 2022
December 31, 2021
(Unaudited) (A) ASSETS
Real estate assets
Land, buildings and improvements, intangible lease assets, and other $ 14,029,059 $ 14,062,722 Investment in financing leases 2,063,227 2,053,327 Real estate held
for sale 1,096,505 Mortgage loans 224,281 213,211
Gross investment in real estate assets 16,316,567 17,425,765
Accumulated depreciation and amortization (1,054,361) (993,100)
Net investment in real estate
assets 15,262,206 16,432,665
Cash and cash equivalents 248,846 459,227 Interest and rent receivables 65,933 56,229 Straight-line rent receivables 660,421 728,522
Investments in unconsolidated real estate joint ventures 1,534,514 1,152,927 Investments in unconsolidated operating entities 1,455,842 1,289,434 Other loans 66,963 67,317 Other assets 523,109 333,480
Total Assets $ 19,817,834 $ 20,519,801
LIABILITIES AND EQUITY Liabilities
Debt, net $ 10,117,989 $ 11,282,770 Accounts payable and accrued expenses 595,026 607,792 Deferred revenue 18,834 25,563 Obligations to tenants and other lease liabilities 166,626
158,005 Total Liabilities 10,898,475 12,074,130
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 598,676 shares at March 31, 2022 and 596,748 shares at December 31, 2021 599
597 Additional paid-in capital 8,547,892 8,564,009 Retained earnings (deficit) 369,972 (87,691) Accumulated other comprehensive loss (5,010) (36,727) Total Medical Properties Trust, Inc. Stockholders
Equity 8,913,453 8,440,188 Non-controlling interests 5,906 5,483
Total Equity 8,919,359 8,445,671
Total Liabilities and Equity $ 19,817,834 $ 20,519,801
(A) Financials have been derived from
the prior year audited financial statements.
MEDICAL PROPERTIES TRUST | SUPPLEMENTAL INFORMATION | Q1 2022 16
FINANCIAL STATEMENTS
INVESTMENTS IN UNCONSOLIDATED
REAL ESTATE JOINT VENTURES
(Amounts in thousands)
REAL ESTATE JOINT VENTURE
FRAMEWORK
MPT seeks to partner with institutional investors that share a similar view that hospital real estate is a necessary infrastructure-type asset in
communities.
Underlying real estate and leases are structured similar to the rest of our portfolio Partnering with local investors provide
opportunities for entry into newthe risk profile is the same as our 100%-owned real estate investments. markets with new operators.
Returns are
comparable to our other triple net leased healthcare assets. Opportunity to generate low-cost capital.
Joint
venture partnerships unlock the value of previously 100%-owned real estate. Building relationships with new partners may lead to future acquisition opportunities.
Investment as Ownership
Operator Structure of 3/31/2022 Interest
Swiss Medical Network $ 473,235 70% Represents ownership in Infracore, which owns and leases all 17 Switzerland facilities.
Represents ownership in eight Massachusetts hospital facilities that are fully leased pursuant Steward Health Care 400,367 50% to a master lease.
MEDIAN 505,883 50% Represents ownership in 71 German facilities that are fully leased.
Policlinico di Monza 93,833 50% Represents ownership in eight Italian facilities that are fully leased.
HM Hospitales 61,196 45% Represents ownership in two Spanish facilities that are fully leased.
Total $ 1,534,514
INVESTMENTS IN UNCONSOLIDATED REAL ESTATE JOINT VENTURES AS
A PERCENTAGE OF TOTAL ASSETS
8%
92%
MEDICAL PROPERTIES TRUST | SUPPLEMENTAL INFORMATION | Q1 2022 17
FINANCIAL STATEMENTS
INVESTMENTS IN UNCONSOLIDATED
OPERATING ENTITIES
(Amounts in thousands)
OPERATING ENTITY INVESTMENT
FRAMEWORK
MPTs hospital expertise and comprehensive underwriting process allows for opportunistic investments in hospital operations.
Passive investments are typically made in conjunction with larger Certain of these investments entitle us to customary minority rights and real estate transactions.
protections
Operators are vetted as part of our overall underwriting process. No additional operating loss exposure beyond our investment.
Potential for outsized returns and organic growth. Proven track record of successful investments, including Ernest Health and Capella Healthcare.
Investment as Ownership
Operator Structure of 3/31/2022 Interest
Loan, for which proceeds were paid to Stewards former private equity sponsor, is secured by the equity Steward Health Care $ 363,236 N/A of Steward and provides for an
initial 4% cash return along with possible outsized return based on the increase in value of Steward.
Includes our 49% equity ownership interest and a loan made
for the purpose of investing in select International Joint Venture 231,403 49.0% international hospital operations. The loan carries a 7.5% interest rate and is secured by the remaining equity of the international joint venture and guaranteed by the
other equity owner.
With the 2021 acquisition of 18 behavioral facilities, we made a 49% equity investment and a loan, Springstone 192,958 49.0% proceeds of which
were paid to the former owners of the Springstone operating entity. The loan carries an 8% interest rate and is secured by the remaining equity of the other equity owner.
As part of our 2021 acquisition of 35 facilities, we made a 9.9% passive equity investment and a loan, Priory 167,478 9.9% proceeds of which were paid to the former owner. The loan
carries a variable interest rate.
Includes our passive equity ownership interest, along with a CHF 45 million loan as part of a syndicated Swiss Medical
Network 157,431 10.0% loan facility.
Includes our passive equity ownership interest. Proceeds from our investment were paid directly to Steward Health Care 139,000
9.9% Stewards former private equity sponsor and other shareholders.
Loan originated in connection with the overall $1.55 billion acquisition of 14
facilities, proceeds of which Prospect Medical Holdings 112,319 N/A were paid to the prior owner. The loan carries an interest rate of 8% and matures in 2026. The loan is secured and cross-defaulted with real estate and guaranteed by Parent.
Includes our passive equity ownership interest in Aevis, a public healthcare investment company. Our Aevis 76,029 4.6% original investment of CHF 47 million
is marked-to-market quarterly.
Includes our passive equity ownership interest in
Aspris, a recent spin-off of Priorys education and Aspris 15,988 9.9% childrens services line of business.
Total $ 1,455,842
INVESTMENTS IN UNCONSOLIDATED OPERATING ENTITIES AS A
PERCENTAGE OF TOTAL ASSETS
7%
93%
MEDICAL PROPERTIES TRUST | SUPPLEMENTAL INFORMATION | Q1 2022 18
FINANCIAL STATEMENTS
UNCONSOLIDATED REAL ESTATE
JOINT VENTURE DETAILS
(As of and for the three months ended March 31, 2022) (Unaudited) ($ amounts in thousands)
MPT Pro Rata Interest
Property-MPT Weighted Total Gross Third-Party Shareholder Total Operators Related Average Interest Assets Net Debt Loan Revenues (A) (A) Expenses
HM Hospitales,
MEDIAN, Policlinico di Monza, Swiss
55% $ 3,211,117 $ 1,311,596 $ 328,690 $ 34,976 $ 2,397 Medical Network, Steward Health Care
PRO RATA TOTAL GROSS ASSETS BY COUNTRY PRO RATA TOTAL GROSS ASSETS BY PROPERTY TYPE
3%
5%
33% 30% 27%
70% 32%
Switzerland Germany General Acute Care Hospitals United States Spain Inpatient
Rehabilitation Hospitals Italy
Income Statement Impact to MPT Amounts Financial Statement Location
Real estate joint venture income (B) $ 7,338 Earnings from equity interests
Management fee
revenue $ 148 Interest and other income Shareholder loan interest revenue $ 4,232 Interest and other income
(A) The joint venture with Macquarie Asset Management,
which we own a 50% interest, was formed on March 14, 2022. Includes revenue and expenses subsequent to the date of acquiring the interest.
(B) Includes
$2.2 million of straight-line rent revenue, $14.0 million of depreciation and amortization expense, and $9.3 million of interest expense on third-party debt and shareholder loans.
MEDICAL PROPERTIES TRUST | SUPPLEMENTAL INFORMATION | Q1 2022 19
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
Exhibit 99.3 HM Torrelodones – Madrid, Spain INVESTOR UPDATE APRIL 2022
® AT THE VERY HEART OF HEALTHCARE.
FORWARD-LOOKING STATEMENTS This presentation 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 guidance for 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, rising inflation 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 property sales, loan repayments, and other capital recycling transactions do not occur; (xvii) the accuracy of our methodologies and estimates regarding environmental, social and governance (“ESG”) metrics, goals and targets, tenant willingness and ability to collaborate towards reporting ESG metrics and meeting ESG goals and targets, and the impact of governmental regulation on our ESG efforts; and (xviii) the risk that the sale by Steward of its Utah operations to HCA does not occur. 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, 2021 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.
WHO IS MPT? MPT IS THE ONLY VEHICLE FOR INVESTMENT IN HOSPITAL REAL ESTATE IN THE MOST ADVANCED GLOBAL MARKETS From our inception, we have executed a single, unchanging strategy to deliver to our shareholders: • Premium real estate returns • Backed by long-term net leases of the most critical facilities in the healthcare delivery continuum • Giving us the highest-priority position among all creditors • Inflation protection 4
LONG-TERM OUTPERFORMANCE: WELL-COVERED DIVIDEND AND SUSTAINED AFFO PER SHARE GROWTH CASH CANNOT BE ENGINEERED OR MANIPULATED Since 2012: AFFO and Dividends Paid ($ thousands; 2012 - 2021) $1,000,000 $8.3 BILLION IN $800,000 SHAREHOLDER $600,000 1 VALUE CREATION $400,000 $200,000 ▪ $3.2 billion in cash dividends paid ▪ $5.1 billion equity capital $- appreciation 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 AFFO Dividends Paid Annual AFFO and Dividends Paid per Share (2012 to 2021) 356% TOTAL $1.55 100% Reflects dilution from September 2018 sale of 50% SHAREHOLDER of MEDIAN-leased facilities to Primonial for €500 $1.35 95% million gain and $1.2 billion in cash proceeds RETURN (TSR), $1.15 90% OUTPACING: $0.95 85% $0.75 ▪ 102% Dow Jones U.S. Real Estate 80% Health Care Index $0.55 ▪ 192% MSCI U.S. REIT Index 75% $0.35 ▪ 277% S&P 400 $0.15 70% 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 AFFO per Share Dividends Paid per Share AFFO Payout (right axis) 1. Calculated as dividends paid plus increase in equity market capitalization, less equity issued Source: Factset, S&P Global, Company Disclosure 5 Reconciliation of net income to normalized and adjusted funds from operations, on a total and per share basis, is provided in the Appendix.
MPT STOCK (NYSE: MPW) INEXPENSIVE ON CASH EARNINGS METRICS CASH CANNOT BE ENGINEERED OR MANIPULATED 2022E AFFO MULTIPLE (CONSENSUS) 35.0x 29.9x 30.0x 23.4x 23.4x 25.0x 20.9x 20.2x 20.0x 16.9x 12.5x 15.0x 10.0x 10.0x 5.0x 0.0x WELL VTR PEAK HTA HR DOC MPW OHI DIVIDEND YIELD AND 2022E AFFO PAYOUT (CONSENSUS) 12.0% 9.8% 110% 10.0% 8.0% 90% 6.4% 5.2% 6.0% 4.4% 70% 4.1% 3.5% 3.1% 4.0% 2.6% 50% 2.0% 0.0% 30% OHI MPW DOC HR HTA PEAK VTR WELL Dividend Yield AFFO Payout (right axis) 6 1. Represents reciprocal of approximate cash yield on transaction Source: S&P Global, Factset. Priced April 26, 2022 at close.
PROFITABILITY, EVEN IN THE WORST OF CIRCUMSTANCES ADEPTUS CASE STUDY: RENT NOT REDUCED AND TENANT NOT SUBSIDIZED MPT model mitigates operator-specific risks such that, even in event of bankruptcy: RENTS ARE PAID VALUE IS PROTECTED NEW TENANTS ARE AVAILABLE In the case of $415 million initial investment in 59 Adeptus facilities: UNDERWRITING STRUCTURE CONTINGENCIES ✓ Facilities are identified as ✓ Multiple master lease structure ✓ Industry knowledge and necessary infrastructure of local guarantees MPT right to “take relationships with competing not- hospital delivery systems back” all properties upon default for-profit and for-profit operators such as Dignity Health, UC Health, Ochsner, Methodist, HCA and ✓ MPT demands “hub and spoke” ✓ Absolute net lease drafted others structure of Adeptus FSEDs rigorously to withstand around three general acute bankruptcy law scrutiny hospitals No luck involved: profitable outcome despite bankruptcy of operator the direct result of unique expertise, foresight and careful planning characteristic of virtually all MPT investments 1 ▪ $340 million fair market value of 37 properties re-leased, in most cases at materially identical double-digit lease yields ▪ $135 million realized value on sale of 19 properties 2 ▪ $9 million fair market value of three remaining vacant properties ▪ $484 million total fair market value 17% above original investment 7 1. 2022 annual rent divided by estimated market cap rate (6.5% weighted average) 2. Expected sale price based on ongoing negotiations
2025 2021 2024 2023 2020 2022 2019 2021 2020 2018 2019 2017 2018 2017 2016 2016 2015 2015 2014 2014 2013 2013 2012 2012 NET LEASE CASH YIELDS SHOULD TREND “UP AND TO THE RIGHT” THIS IS EXACTLY WHAT MPT’S LEASES OFFER CASH RENT Generic MPT lease example, assuming: $12,000,000 Yields grow more $11,500,000 rapidly when inflation- ▪ $100 million lease base $11,000,000 dictated rents exceed $10,500,000 ▪ 8% initial cash yield beginning in 2012 minimum escalator $10,000,000 ▪ 2% minimum escalators through 2021 $9,500,000 $9,000,000 ▪ 5% CPI-based escalators beginning in 2022 $8,500,000 $8,000,000 Indicative of virtually every lease in MPT’s portfolio, except each lease’s commencing and escalating rates are individually negotiated… …but this is a completely different measure than charting the growth of a net lease REIT’s consolidated balance sheet – especially across a period of compressing market cap rates REASONS FOR DECREASING 1 CASH YIELD-ON-COST CONSOLIDATED YIELD-ON-COST: International total pro 10.0% $10,000 forma gross assets 9.5% $9,000 increase by $6.6 billion ▪ Larger leases signed during recent period of extraordinary, but strongly 9.0% $8,000 accretive, asset growth (top decile among REITs) dominate portfolio “mix” 8.5% $7,000 8.0% $6,000 ▪ Earlier-year leases signed at higher, since-escalated yields are simply Commencing yield includes benefit of higher 7.5% $5,000 smaller in size than recent deals at lower cap rates early-year cap rates and cumulative 7.0% $4,000 escalation of yields since inception 6.5% $3,000 ▪ Analysis in a vacuum is misleading, as it ignores declining cost of capital 6.0% $2,000 over same period (constant spreads) 5.5% $1,000 ▪ International transactions and related debt costs are lower than in U.S. 5.0% $- ▪ Entirely unrelated to straight-line rent accounting • Historical disclosed straight-line rent write-offs virtually all related to re- YoY Increase in Gross Assets ($ millions; right axis) Cash Yield-on-Cost tenanting and highly profitable property sales • No adjustments for lease amendments 8 1. GAAP rent billed, divided by average of prior and current year balances of land, buildings and improvements, intangible lease assets, and other
MPT COVERAGE REPORTING METHODOLOGY: BOTTOM-UP APPROACH MATCHES MPT UNDERWRITING PHILOSOPHY AND LEASE MECHANICS MPT REPORTING METHODOLOGY CMS COST REPORT METHODOLOGY* ✓ Property-specific coverages • CMS reporting is neither GAAP nor cash-based • Individual hospitals use CMS Worksheet A to ✓ TTM coverages calculated based on actual, report on certain CMS allowable expenses for unadjusted EBITDARM results as presented in 1 tenant reporting and cash rent owed to MPT the purpose of informing future reimbursement ✓ GAAP-based and unadjusted: net revenues, • On separate CMS Worksheet G-2, from which 1 less direct operating expenses information is made available to third-party data providers, individual hospitals are ✓ Aggregated into various reporting categories, afforded additional discretion to include the and now by tenant broader scope of costs in “operating expenses” and may report, where applicable, items not ✓ MPT leases ensure immediate control of limited to: properties in rare event of parent-level distress A. Certain capital expenditures B. Rent expense ✓ Property-level sensitivity to periods of C. Depreciation and amortization outsized labor and other cost inflation are D. Interest expense on asset-backed loans E. Income tax expense evaluated in hospital underwriting, even F. Facility-level overhead though CMS Acute Inpatient PPS G. Allocated corporate expenses from “home office” CMS cost reports reimbursement has exceeded inflation over long periods of time * Similarly, American Hospital Association Annual Survey data reports margins based on total expenses and clearly advertises the calculation 2 as such 1. Total grants received by operators during the period between March 2020 and June 2021 have been spread evenly by quarter from Q2 2020 through Q2 2021 9 2. Source: https://www.aha.org/system/files/2018-05/2018-chartbook-table-4-1.pdf
HOSPITAL UNDERWRITING IS MPT’S CORE COMPETENCY CASH FLOW GENERATION OF PROPERTIES ALONE SUPPORTS GROWING RENTS, CASH REAL ESTATE GAINS MPT INVESTMENT IN STEWARD HOSPITALS HAS BEEN HIGHLY SUCCESSFUL $4.5 billion of investments in properties initially operated by Steward $4.3 billion (95%) of MPT’s consideration was paid directly to sellers of real estate such as Community Health, IASIS and Tenet Health or immediately paid by Steward to its prior private equity sponsor • Materially all of remaining $200 million was paid to Steward in July 2020 Utah sale-leaseback transaction • Facility-level cash flow has covered more than $1.4 billion in cash rent and interest collected since Q4 2016 1 • FY 2021 property-level EBITDARM rent coverage of 2.8x MPT’S CONSERVATIVE UNDERWRITING DEMONSTRATED IN: $600 million approximate real estate gain realized on Massachusetts partnership transaction • Certain options related to HCA Healthcare’s agreement to lease MPT’s Utah hospitals (currently operated by Steward) which effectively guarantee MPT the right to sell the properties to HCA at the higher of market or MPT’s basis 10 1. See MPT Q1 2022 supplemental for disclosures related to EBITDARM rent coverage reporting
HOSPITAL UNDERWRITING IS MPT’S CORE COMPETENCY STEWARD HOSPITAL UNDERWRITING CASE STUDIES STEWARD MASS. PORTFOLIO UTAH HOSPITALS (IASIS HEALTHCARE) SCENIC MOUNTAIN MEDICAL CENTER 5 Hospitals UT Oct 2019 1 Hospital TX Oct 2016 9 Hospitals MA Sept 2017 • Utah portfolio established with $1.4 billion IASIS • $600 million leased properties + $600 million • MPT acquired hospital from Steward for $26 portfolio acquisition mortgage loan investments million, immediately after Steward’s ~$12 • Portfolio included $700 million in mortgage loans million purchase of capital-starved facility • Initial cash cap rate in mid-7% range on two highly profitable Utah hospitals • MPT funds $50 million in improvements and then • Full ~$14 million difference between MPT- pays Steward incremental $200 million* in July underwritten $26 million* real estate value • Mortgage loans converted to leases in 2018 2020 to lease the previously mortgaged Utah and Steward’s price deployed into hospital properties at market valuation of $950 million improvements • After capital improvements and • September 2021: HCA Healthcare agrees to • March 2022: Macquarie Asset Management implementation of Steward’s model, the purchase Utah hospital operations from Steward acquires 50% interest in eight properties facility’s operations improved significantly • MPT to receive same cash rent and escalators • MPT achieves 14% unlevered IRR and $600 • Facility now a solid contributor to Steward under new lease to HCA, even though HCA million gain on sale of real estate master lease EBITDARM coverage commands a lower market cap rate than Steward • Transaction validates MPT’s conservative • Illustrates value of MPT underwriting • Higher of market value or MPT’s cost basis initial underwriting and Steward’s value- process, which projects a hospital’s future effectively guaranteed by certain options to add as an operator potential – with a capable operator and facilitate future HCA purchase of hospitals critical capital improvements * Incremental $200 million paid to Steward in sale-leaseback conversion and $26 million paid to Steward for Scenic Mountain Medical Center are the only two instances 11 among $4.5 billion of total investments in Steward facilities from which acquisition consideration from MPT was ever available to Steward for discretionary use OUTCOME / INITIAL SUBSEQUENT TRANSACTION NOTES ACTIVITY
MPT “EQUITY” INVESTMENTS REAL ESTATE INVESTMENT IS THE CORE OF MPT UNCONSOLIDATED INVESTMENT ACTIVITY • $1.5 billion equity investment representing $3.2 billion (at MPT Total Pro Forma Gross Assets MPT’s share) portfolio of general acute and post-acute care facilities across five countries 13% • Nearly 60% of equity investment comprised of formerly- consolidated Primonial JV and Macquarie partnership 14% properties Consolidated Real Estate Investments • Remaining ~40% invested in: Unconsolidated Real ➢ 17 hospitals operated by Swiss Medical Network through MPT’s Estate Investments 73% 70% interest in the Infracore JV Other Assets ➢ 50% interest in eight Italian hospitals operated by PdM ➢ 45% interest in two Spanish hospitals operated by HM Hospitales • Real estate equity investments increase when a consolidated portfolio is sold into a joint venture or partnership 1 ➢ Example 1: MPT investments in real estate joint ventures increased from roughly $120 million in Q2 2018 to about $700 million in Q3 2018 due to the closing of the Primonial joint venture of 71 German post-acute facilities leased to MEDIAN 1 ➢ Example 2: MPT investments in real estate joint ventures increased from approximately $1.15 billion at end of 2021 to roughly $1.5 billion in Q1 2022 due to the closing of the Macquarie partnership transaction 1. Includes historical shareholder loan balances, consistent with new definition of equity investments in real estate as of Q1 2022 12 2. Total Pro Forma Gross Assets for period 2016 - Q1 2022 is further explained in Appendix.
MPT “EQUITY” INVESTMENTS ($ in thousands) HOSPITAL EXPERTISE AND COMPREHENSIVE UNDERWRITING INVESTMENT AS OF OWNERSHIP PROCESS ALLOW FOR OPPORTUNISTIC INVESTMENTS IN 1 OPERATOR 3/31/2022 INTEREST BASIC DESCRIPTION HOSPITAL OPERATIONS Loan is secured by the equity of Steward and provides for an initial 4% cash return along with $363,236 N/A possible outsized return based on the increase in value of Steward Passive investments often accompany large real estate transactions ✓ A) Equity ownership interest and B) loan at a International 7.5% interest rate for the purpose of investing 231,403 49.0% Joint Venture Operators vetted as part of underwriting process in select international hospital operations ✓ A) Equity investment and B) loan at an 8% 192,958 49.0% interest rate ✓ Potential for outsized returns and organic growth A) Passive equity investment and B) variable 167,478 9.9% rate loan, proceeds of which were paid to the former owner No operating loss exposure beyond our investment ✓ A) Passive equity ownership interest and B) CHF 45 million loan as part of a syndicated 157,431 10.0% loan facility Certain investments include protective rights ✓ Passive equity ownership interest; proceeds from investment paid directly to Steward’s 139,000 9.9% Proven track record of realized gains on sale of former private equity sponsor and other ✓ shareholders operator investments (see bottom right) Loan earning 8% and maturing in 2026 that was originated in connection with the overall 112,319 N/A $1.55 billion acquisition of 14 facilities; proceeds were paid to prior owner MPT Total Pro Forma Gross Assets Passive equity interest in Aevis, a public 76,029 4.6% healthcare investment company Passive equity interest in Aspris, a recent spin- Consolidated Real 6% off of Priory's education and children's services 15,988 9.9% 7% Estate Investments line of business 14% Unconsolidated Real Total $1,455,842 Estate Investments Investments in Operators $489M 8% $43M 11% $96M 13% Investment IRR Other Investment IRR Investment IRR < 1 year of ownership 73% €11.4M 19% €1.3M 47% 1. See Q1 2022 supplemental for detailed disclosure of structure, as well as other information Investment IRR 13 Investment IRR 2. Total Pro Forma Gross Assets for period 2016 - Q1 2022 is further explained in Appendix.
G&A IN PERSPECTIVE SUPERIOR ALIGNMENT: EXECUTIVE COMPENSATION 1 IS ROUGHLY TWO-THIRDS PERFORMANCE-BASED RESTRICTED STOCK GRANTS Growth in NFFO per share ~95% $5.4 billion 2 and total shareholder return AVERAGE SUPPORT OF SHAREHOLDER VALUE CREATION DOMINATE COMPENSATION CALCULATION EXECUTIVE COMPENSATION PLAN SINCE BEGINNING OF 2019 OVER LAST FIVE YEARS AND $8.1 BILLION SINCE IPO Compensation plan is designed to reward only accretive and disciplined growth CEO CEO MARKET G&A AS A PERCENTAGE OF COMPENSATION VALUE OF STOCK 10- 3 AVERAGE TOTAL PRO FORMA GROSS ASSETS % INSIDER = NON-CASH OWNED 3-YEAR 5-YEAR YEAR 4 5 5 5 5 TICKER OWNERSHIP (2020) (MILLIONS) TSR TSR TSR 1.1% 1.2% WELL 0.2% 68% $4.6 39% 61% 152% 2021 HC REIT 1.1% simple average = 7 VTR 0.3% 75% $39.0 1% 5% 70% 0.7% 1.0% 0.9% 0.8% PEAK 0.3% 71% $12.3 48% 55% 58% 0.8% 0.7% 0.8% 0.7% 0.7% 0.7% MPW 1.3% 76% $76.8 73% 160% 356% 0.6% 6 HTA 0.5% 55% $13.4 50% 42% N/A 0.4% OHI 0.4% 78% $0.1 6% 41% 213% 0.2% HR 1.0% 29% $15.9 25% 27% 162% 0.0% DOC 0.9% 52% $8.1 38% 30% N/A 2013 2014 2015 2016 2017 2018 2019 2020 2021 Source: S&P Global 1. 2016-2020 average 2. Defined as dividends paid and increase in equity market capitalization, less value of common stock issued 3. Total Pro Forma Gross Assets for period 2016 - Q1 2022 is further explained in Appendix. 4. Most recent year in which all listed company data is available 5. Through 12/31/2021 14 6. Former CEO 7. Includes CHCT, CTRE, DHC, DOC, GMRE, HR, HTA, LTC, MPW, NHI, OHI, PEAK, SBRA, UHT, VTR, WELL
INVESTING IN COMMUNITIES – GIVING BACK MPT MADE MORE THAN $10 MILLION IN CONTRIBUTIONS TO 200+ DIFFERENT GROUPS IN 2021 Mobile Medical Disaster Relief WHERE WE FOCUS OUR GIVING Birmingham Alabama United States Where we have 229 Our Headquarters City Our Home State facilities in 32 states Europe Australia Where we Where we now have recently opened our APAC properties in seven office in Sydney countries 15
APPENDIX NORMALIZED AND ADJUSTED FUNDS FROM OPERATIONS 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. 16
NORMALIZED AND ADJUSTED FUNDS FROM OPERATIONS RECONCILIATION (in thousands, except per share data) For the Year Ended December 31, 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 FFO information: Net income attributable to MPT common shareholders $ 89,899 $ 96,991 $ 50,523 $ 139,598 $ 225,048 $ 289,793 $ 1 ,016,685 $ 374,684 $ 431,450 $ 656,021 Participating securities' share in earnings (886) (729) (895) (1,029) (559) (1,409) (3,685) (2,308) (2,105) (2,161) Net income, less participating securities' share in earnings $ 89,013 $96,262 $49,628 $138,569 $224,489 $288,384 $1,013,000 $372,376 $429,345 $653,860 Depreciation and amortization 34,855 37,686 53,938 69,867 96,157 127,559 143,720 183,921 306,493 374,599 (Gain) loss on sale of real estate, net (16,369) (7,659) (2,857) (3,268) (67,168) (7,431) ( 719,392) (41,560) 2,833 (52,471) Real estate impairment charges - - 5,974 - - - 48,007 21,031 19,006 - Funds from operations $ 107,499 $126,289 $106,683 $205,168 $253,478 $408,512 $485,335 $535,768 $757,677 $975,988 Write-off (recovery) of straight-line rent and other, net 6,456 1,457 2,818 3,928 3,063 5,340 18,002 22,447 26,415 (2,271) Debt refinancing and unutilized financing costs - - 1,698 4,367 22,539 32,574 - 6,106 28,180 27,650 Tax rate and other changes - - - - (3,956) - (4,405) - - 42,746 Acquisition and other transaction costs, net 5,420 19,494 26,389 61,342 52,473 28,453 2,072 - - - Non-cash fair value adjustments - - 44,153 - 7,229 - - (6,908) 18,937 (8,193) Normalized funds from operations $ 1 19,375 $ 147,240 $ 1 81,741 $ 274,805 $ 3 34,826 $ 474,879 $ 5 01,004 $ 5 57,413 $ 8 31,209 $ 1,035,920 Share-based compensation 7,636 8,832 8,694 10,237 7,942 9,949 16,505 32,188 47,154 52,110 Debt costs amortization 3,458 3,558 4,814 6,085 7,613 6,521 7,534 9,675 13,937 17,661 Additional rent received in advance (1,200) (1,200) (1,200) (1,200) (1,200) (1,200) - - - - Rent deferral, net - - - - - - - - (11,393) 2,755 Straight-line rent revenue and other (11,696) (17,039) (22,986) (34,218) (50,687) (82,276) (105,072) ( 145,598) ( 238,687) (297,078) Adjusted funds from operations $ 1 17,573 $ 141,391 $ 1 71,063 $ 2 55,709 $ 298,494 $ 4 07,873 $ 4 19,971 $ 4 53,678 $ 6 42,220 $ 8 11,368 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 Per diluted share data: Net income, less participating securities' share in earnings $ 0.66 $ 0.63 $ 0.29 $ 0.63 $ 0.86 $ 0.82 $ 2.76 $ 0.87 $ 0.81 $ 1.11 Depreciation and amortization 0.27 0.24 0.31 0.32 0.37 0.37 0.39 0.43 0.57 0.63 (Gain) loss on sale of real estate, net (0.12) (0.04) (0.01) (0.01) (0.26) (0.02) (1.96) (0.10) 0.01 (0.09) Real estate impairment charges - - 0.04 - - - 0.13 0.05 0.04 - Funds from operations $ 0.81 $ 0.83 $ 0.63 $ 0.94 $ 0.97 $ 1.17 $ 1.32 $ 1.25 $ 1.43 $ 1.65 Write-off (recovery) of straight-line rent and other, net 0.04 0.01 0.02 0.02 0.01 0.01 0.05 0.05 0.05 - Debt refinancing and unutilized financing costs - - - 0.02 0.09 0.09 - 0.01 0.05 0.04 Tax rate and other changes - - - - (0.02) - (0.01) - - 0.07 Acquisition and other transaction costs, net 0.05 0.12 0.15 0.28 0.20 0.08 0.01 - - - Non-cash fair value adjustments - - 0.26 - 0.03 - - (0.01) 0.04 (0.01) Normalized funds from operations $ 0.90 $ 0.96 $ 1.06 $ 1.26 $ 1.28 $ 1.35 $ 1.37 $ 1.30 $ 1.57 $ 1.75 Share-based compensation 0.05 0.06 0.05 0.05 0.03 0.03 0.05 0.08 0.09 0.09 Debt costs amortization 0.04 0.02 0.03 0.03 0.02 0.02 0.02 0.02 0.02 0.03 Additional rent received in advance (0.01) (0.01) - (0.01) - - - - - - Rent deferral, net - - - - - - - - (0.02) - Straight-line rent revenue and other (0.09) (0.10) (0.14) (0.16) (0.19) (0.24) (0.29) (0.34) (0.45) (0.50) Adjusted funds from operations $ 0.89 $ 0.93 $ 1.00 $ 1.17 $ 1.14 $ 1.16 $ 1.15 $ 1.06 $ 1.21 $ 1.37 17
TOTAL PRO FORMA GROSS ASSETS RECONCILIATION Total Pro Forma Gross Assets (Unaudited) (Amounts in millions) December 31, 2016 December 31, 2017 December 31, 2018 December 31, 2019 December 31, 2020 December 31, 2021 March 31, 2022 Total Assets $ 6 ,419 $ 9,020 $ 8,844 $ 1 4,467 $ 16,829 $ 20,520 $ 19,818 Add: Real estate commitments on new investments 288 18 865 1 ,989 1 ,901 - - Accumulated depreciation and amortization 325 456 465 570 834 993 1 ,054 1 Incremental gross assets of our joint ventures and other - - 376 564 1,287 1,71 3 1 ,614 Less: 2 Cash used for funding the transactions above and debt repayment ( 83) ( 18) ( 722) (1,061) ( 421) (897) (249) Total Pro Forma Gross Assets $ 6,949 $ 9,476 $ 9,828 $ 16,529 $ 20,430 $ 22,329 $ 22,237 1 Adjustment to reflect our share of our joint ventures' gross assets and certain lease intangible assets. 2 Includes cash available on hand plus cash generated from activities subsequent to period-end including loan repayments or dispositions, if any Gross assets derived from our consolidated balance sheet for period 2012 - 2015 and represents total assets before accumulated depreciation and amortization. We initiated reporting of total pro forma gross assets in 2017 (with disclosure provided for 2016). Total pro forma gross assets is total assets before accumulated depreciation/amortization, assumes material real estate binding commitments on new investments are fully funded using cash on hand (if available). We believe total pro forma 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. 18