e8vk
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 8-K
CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
Date of report (Date of earliest event reported): January 28, 2010
MEDICAL PROPERTIES TRUST, INC.
(Exact Name of Registrant as Specified in Charter)
Commission File Number 001-32559
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Maryland
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20-0191742 |
(State or other jurisdiction
of incorporation or organization )
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(I. R. S. Employer
Identification No.) |
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1000 Urban Center Drive, Suite 501
Birmingham, AL
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35242 |
(Address of principal executive offices)
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(Zip Code) |
Registrants telephone number, including area code
(205) 969-3755
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the
filing obligation of the Registrant under any of the following provisions:
o Written communications pursuant to Rule425 under the Securities Act (17 CFR 230.425)
o Soliciting material pursuant to Rule14a-12 under the Exchange Act (17 CFR 240.14a-12)
o Pre-commencement communications pursuant to Rule14d-2(b) under the Exchange Act (17 CFR
240.14d-2(b))
o Pre-commencement communications pursuant to Rule13e-4(c) under the Exchange Act (17 CFR
240.13e-4(c))
Item 2.02. Results of Operations and Financial Condition.
On January 28, 2010, Medical Properties Trust, Inc. issued a press release announcing its financial
results for the quarter and year ended December 31, 2009. A copy of the press release is attached
as Exhibit 99.1 to this Current Report on Form 8-K and is incorporated herein by reference. The
information in this Current Report on Form 8-K, including the information set forth in Exhibit 99.1
attached hereto, shall not be deemed filed for purposes of Section 18 of the Securities Exchange
Act of 1934, as amended, or otherwise subject to the liability of that section or Sections 11 and
12(a)(2) of the Securities Act of 1933, as amended. In addition, this information shall not be
deemed incorporated by reference in any filing of Medical Properties Trust, Inc. with the
Securities and Exchange Commission, except as expressly set forth by specific reference in any such
filing.
Item 9.01. Financial Statements and Exhibits.
(d) Exhibits.
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Exhibit Number |
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Description |
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99.1 |
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Press release dated January 28, 2010
reporting financial results for the three
months and year ended December 31, 2009 |
2
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused
this report to be signed on its behalf by the undersigned hereunto duly authorized.
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MEDICAL PROPERTIES TRUST, INC.
(Registrant)
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By: |
/s/ R. Steven Hamner
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R. Steven Hamner |
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Executive Vice President
and Chief Financial Officer
(Principal Financial and Accounting Officer) |
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Date: January 28, 2010 |
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3
INDEX TO EXHIBITS
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Exhibit Number |
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Description |
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99.1 |
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Press release dated January 28, 2010
reporting financial results for the three
months and year ended December 31, 2009 |
4
exv99w1
Exhibit 99.1
Contact: Charles Lambert
Finance Director
Medical Properties Trust, Inc.
(205) 397-8897
clambert@medicalpropertiestrust.com
MEDICAL PROPERTIES TRUST, INC. REPORTS
FOURTH QUARTER AND FULL-YEAR 2009 RESULTS
Birmingham, AL January 28, 2010 Medical Properties Trust, Inc. (NYSE: MPW) today
announced financial and operating results for the quarter and year ended December 31, 2009.
HIGHLIGHTS
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Reported fourth quarter normalized Funds from Operations (FFO) and Adjusted FFO
(AFFO) per diluted share of $0.23 each, in-line with guidance as adjusted for certain
non-routine expenses; |
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Delivered 2009 full year total revenues of $129.8 million, up more than 11% over $116.8
million reported in 2008; normalized FFO and AFFO were $0.90 and $0.92 per share,
respectively, in 2009 as adjusted for certain non-routine expenses; |
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Continued profitability from Shasta Regional Medical Center after lease restructuring; |
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Reached agreements to settle all claims asserted by Stealth, L.P. in previously
disclosed litigation concerning termination of leases of Houston Town and Country Hospital
and medical office building; |
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Paid 2009 fourth quarter cash dividend of $0.20 per share on January 14, 2010. |
Commenting on the Companys 2009 performance, Medical Properties Trust, Inc. President and
Chief Executive Officer Edward K. Aldag, Jr. emphasized the strength of the Companys portfolio,
Our tenants continued to perform beyond expectations in 2009 with an overall EBITDAR lease
coverage ratio exceeding 5 times. The acute care, long-term acute care and inpatient
rehabilitation sectors lease coverage improved to more than 6 times, 2 times, and 3 times,
respectively. Our tenants are some of the largest, strongest and best performing leaders in the
industry. Properties operated by Prime Healthcare Systems, Community Health Systems, Health
Management Associates, HealthSouth, North Cypress Medical Center and IASIS Healthcare constitute
more than 65% of our portfolio. In addition, other operators, such as Vibra Healthcare, which has
grown to become the third largest provider of LTAC services in the country, once again performed
above expectations.
1
OPERATING RESULTS
The Company reported fourth quarter normalized FFO and AFFO of $0.17 each per diluted share.
Adjusting for $5.1 million ($0.06 per share) of property related expenses and litigation costs
($1.3 million and $3.8 million, respectively) that were excluded from the Companys previous annual
guidance estimate, fourth quarter normalized FFO and AFFO per diluted share amounts were $0.23
each, in-line with previous annualized FFO estimates of $0.89 to $0.93 per diluted share.
Normalized FFO and AFFO per diluted share for the comparable fourth quarter of 2008 were $0.20 and
$0.21, respectively. Net income for the three months ended December 31, 2009 was $7.4 million or
$0.09 per diluted share, compared with net income of $1.4 million or $0.02 per diluted share for
the same period one year ago. Per share amounts were affected by an increase in the weighted
average diluted common shares outstanding to 78.8 million for the three months ended December 31,
2009, from 65.1 million for the same period in 2008.
The Company reported normalized FFO for the full year ended December 31, 2009 of $61.5
million, or $0.79 per diluted share, compared with $70.3 million, or $1.13 per diluted share, for
the full year 2008. AFFO for the full year ended December 31, 2009 was $63.2 million, or $0.81 per
diluted share, compared with $73.0 million, or $1.17 per diluted share for the full year 2008. Net
income for the full year ended December 31, 2009 was $36.3 million, or $0.45 per diluted share,
compared with $32.7 million, or $0.50 per diluted share, for the full year 2008. Per share amounts
were affected by an increase in the weighted average diluted common shares outstanding to 78.1
million for the year ended December 31, 2009, from 62.0 million for the same period in 2008.
Adjusting for property related expenses ($4.5 million) and litigation costs ($4.5 million),
normalized FFO and AFFO for the full year ended December 31, 2009 were $0.90 and $0.92 per diluted
share, respectively.
A reconciliation of normalized FFO and AFFO to net income is included in the financial tables
accompanying this press release.
LIQUIDITY
As of December 31, 2009, the Company had approximately $73.3 million in immediately available
liquidity through its cash balances and credit facilities.
The Companys outstanding debt as of December 31, 2009 consisted of fixed-rate debt of $345.4
million and variable rate debt of $231.3 million. The earliest non-extendable maturity of the
Companys debt is November 2010, at which time approximately $30.0 million will be due. In
addition, $96 million of amounts outstanding under the Companys revolving credit facilities due in
November 2010 may be extended until November 2011. The Company has approximately $10.8 million in
unfunded commitments to complete additions and refurbishments of existing facilities and no
commitments for new acquisitions or developments.
2
DIVIDEND
The Companys Board of Directors declared a quarterly dividend of $0.20 per share of common
stock, which was paid on January 14, 2010 to stockholders of record on December 17, 2009.
PORTFOLIO UPDATE AND FUTURE OPERATIONS
At December 31, 2009, the Company had total real estate portfolio assets of approximately $1.3
billion. The Companys portfolio is comprised of 51 healthcare properties in 21 states leased to 14
hospital operating companies. Three investments are in the form of mortgage loans to two separate
operating companies.
During the fourth quarter, the Company sold for $15 million its interests in Encino Hospital
Medical Center facility to an affiliate of Prime Healthcare, the facilitys current operator.
Additionally, the Company made a $15 million loan to an affiliate of Prime for the expansion of its
Desert Valley Hospital facility. The funds committed will be utilized for a 65-bed expansion that
will bring the total number of licensed beds to 148. Desert Valley Hospital has been named to
Thomson Reuters 100 Top Hospitals four times since 2003.
The Company believes that its existing portfolio of assets will generate normalized FFO of
between approximately $0.89 and $0.93 per diluted share on an annualized basis in 2010. This
estimate does not include the effects, if any, of costs and litigation related to discontinued
operations, real estate operating costs, write-offs of straight-line rent or other non-recurring or
unplanned transactions. In addition, this estimate will change if market interest rates change,
debt is refinanced, assets are sold or acquired, the Sharpstown and River Oaks properties are sold
or leased, other operating expenses vary or existing leases do not perform in accordance with their
terms.
Mr. Aldag concluded, Given the compelling dynamics of our business model within healthcare
real estate and the attractive pipeline of potential acquisitions, we continue to remain excited
about the prospects for strong growth levels throughout the year. As a result of this as well as
increased stability in both the real estate and credit markets, the Company currently expects to
invest approximately $150 million in healthcare real estate assets in 2010.
3
TAX TREATMENT OF 2009 DIVIDENDS
In 2009 Medical Properties Trust, Inc. declared total dividends of $0.80 and paid total
dividends of $0.80 per share as follows:
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Allocable to 2009 |
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Total |
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Unrecaptured |
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Date |
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Date of |
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Date |
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Ordinary |
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Capital |
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Sec. 1250 |
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Return of |
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Amount |
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Declared |
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Record |
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Paid |
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Income |
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Gain |
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Gain |
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Capital |
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Allocable to 2010 |
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$0.20 |
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December 4, 2008 |
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December 23, 2008 |
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January 22, 2009 |
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$0.117948 |
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$0.000927 |
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$0.000927 |
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$0.081125 |
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$0.20 |
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February 24, 2009 |
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March 19, 2009 |
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April 9, 2009 |
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$0.117948 |
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$0.000927 |
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$0.000927 |
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$0.081125 |
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$0.20 |
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May 21, 2009 |
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June 11, 2009 |
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July 14, 2009 |
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$0.117948 |
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$0.000927 |
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$0.000927 |
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$0.081125 |
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$0.20 |
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August 20, 2009 |
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September 17, 2009 |
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October 15, 2009 |
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$0.117948 |
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$0.000927 |
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$0.000927 |
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$0.081125 |
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$0.20 |
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November 19, 2009 |
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December 17, 2009 |
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January 14, 2010 |
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$0.200000 |
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TOTAL |
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$0.471792 |
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$0.003708 |
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$0.003708 |
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$0.324500 |
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$0.200000 |
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Of the fourth quarter 2009 dividend that was declared on November 19, 2009, none will be
taxable to stockholders as part of their 2009 dividend income and all
will be allocable to 2010.
Accordingly, dividends totaling $0.471792 will be reported as ordinary dividends and $0.003708 will
be reported as total capital gain, $0.003708 of which is unrecaptured Sec. 1250 gain, on form
1099-Div for 2009. Also, $0.324500 of dividends paid in 2009 will be treated as a return of
capital. Regarding the dividends included in the 2009 form 1099-Div, no amount is considered
qualified dividends (i.e., eligible for the lower individual tax rate).
CONFERENCE CALL AND WEBCAST
The Company has scheduled a conference call and webcast on Thursday, January 28, 2010 at 11:00
a.m. Eastern Time to present the Companys financial and operating results for the quarter and full
year ended December 31, 2009. The dial-in telephone numbers for the conference call are
866-788-0539 (U.S.) and 857-350-1677 (International) using passcode 54700344. 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 from
shortly after the completion through February 11, 2010. Telephone numbers for the replay are
888-286-8010 and 617-801-6888 for U.S. and International callers, respectively. The replay
passcode is 12524357.
4
About Medical Properties Trust, Inc.
Medical Properties Trust, Inc. is a Birmingham, Alabama based self-advised real estate
investment trust formed to capitalize on the changing trends in healthcare delivery by acquiring
and developing net-leased healthcare facilities. These facilities include inpatient rehabilitation
hospitals, long-term acute care hospitals, regional acute care hospitals, ambulatory surgery
centers and other single-discipline healthcare facilities, such as heart hospitals and orthopedic
hospitals. For more information, please visit the Companys website at
www.medicalpropertiestrust.com.
The statements in this press release that are forward looking are based on current expectations and
actual results or future events may differ materially. Words such as expects, believes,
anticipates, intends, will, should and variations of such words and similar expressions are
intended to identify such forward-looking statements. Forward-looking statements involve known and
unknown risks, uncertainties and other factors that may cause the actual results of the Company or
future events to differ materially from those expressed in or underlying such forward-looking
statements, including without limitation: the capacity of the Companys tenants to meet the terms
of their agreements; annual normalized FFO per share; the amount of acquisitions of healthcare real
estate, if any; the level of unfunded commitments; the repayment and refinancing of debt
arrangements; statements concerning the additional income to the Company as a result of ownership
interests in certain hospital operations and the timing of such income; the restructuring of the
Companys investments in non-revenue producing properties; the payment of future dividends, if any;
acquisition of healthcare real estate; completion of additional debt arrangements; and additional
investments; national and economic, business, real estate and other market conditions; the
competitive environment in which the Company operates; the execution of the Companys business
plan; financing risks; the Companys ability to maintain its status as a REIT for federal income
tax purposes; acquisition and development risks; potential environmental and other liabilities; and
other factors affecting the real estate industry generally or healthcare real estate in particular.
For further discussion of the facts that could affect outcomes, please refer to the Risk factors
section of the Companys Form 10-K for the year ended December 31, 2008 as updated by our
subsequently filed Quarterly Reports on Form 10-Q and our other SEC filings. Except as otherwise
required by the federal securities laws, the Company undertakes no obligation to update the
information in this press release.
# # #
5
MEDICAL PROPERTIES TRUST, INC. AND SUBSIDIARIES
Consolidated Balance Sheets
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December 31, 2009 |
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December 31, 2008 |
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(Unaudited) |
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(A) |
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Assets |
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Real estate assets |
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Land, buildings and improvements, and intangible lease assets |
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$ |
983,475,589 |
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$ |
981,949,065 |
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Real estate held for sale |
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14,912,447 |
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Mortgage loans |
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200,163,980 |
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185,000,000 |
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Gross investment in real estate assets |
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1,183,639,569 |
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1,181,861,512 |
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Accumulated depreciation and amortization |
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(60,302,300 |
) |
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(40,230,776 |
) |
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Net investment in real estate assets |
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1,123,337,269 |
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1,141,630,736 |
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Cash and cash equivalents |
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15,306,889 |
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11,747,894 |
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Interest and rent receivable |
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|
19,845,699 |
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|
13,836,775 |
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Straight-line rent receivable |
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|
27,538,737 |
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19,003,110 |
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Other loans |
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110,841,900 |
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108,522,933 |
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Assets of discontinued operations |
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1,184,808 |
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2,384,808 |
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Other assets |
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11,842,824 |
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14,246,975 |
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Total Assets |
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$ |
1,309,898,126 |
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$ |
1,311,373,231 |
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Liabilities and Equity |
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Liabilities |
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Debt |
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$ |
576,677,892 |
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$ |
630,556,564 |
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Accounts payable and accrued expenses |
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29,246,855 |
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24,718,097 |
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Deferred revenue |
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15,350,492 |
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16,110,241 |
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Lease deposits and other obligations to tenants |
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17,048,163 |
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13,645,259 |
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Total liabilities |
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638,323,402 |
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685,030,161 |
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Medical Properties Trust, Inc. stockholders equity |
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Preferred stock, $0.001 par value. Authorized 10,000,000
shares; no shares outstanding |
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Common stock, $0.001 par value. Authorized 150,000,000 shares;
issued and outstanding - 78,724,733 at December 31,
2009, and 65,056,387 shares at December 31, 2008 |
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|
78,725 |
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|
65,056 |
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Additional paid in capital |
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|
759,720,673 |
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|
686,238,117 |
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Distributions in excess of net income |
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|
(88,093,261 |
) |
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|
(59,941,011 |
) |
Treasury shares, at cost |
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(262,343 |
) |
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(262,343 |
) |
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Total Medical Properties Trust, Inc. stockholders equity |
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671,443,794 |
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|
626,099,819 |
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Non-controlling interests |
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130,930 |
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|
243,251 |
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Total Equity |
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671,574,724 |
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|
|
626,343,070 |
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Total Liabilities and Equity |
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$ |
1,309,898,126 |
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$ |
1,311,373,231 |
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(A) |
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Financials have been derived from the prior year audited financials; however, we have restated certain line items to reflect
our adoption of the new accounting pronouncements involving (i) convertible bonds, (ii) participating securities,
and (iii) non-controlling interests. In addition, with the sale of our Encino facility in December 2009, we have reclassed
its related real estate to Real Estate Held for Sale. |
6
MEDICAL PROPERTIES TRUST, INC. AND SUBSIDIARIES
Consolidated Statements of Income
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For the Three Months Ended |
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For the Twelve Months Ended |
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December 31, 2009 |
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December 31, 2008 |
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December 31, 2009 |
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December 31, 2008 |
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(unaudited) |
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(unaudited)(A) |
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(unaudited) |
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(A) |
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Revenues |
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|
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Rent billed |
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$ |
22,956,887 |
|
|
$ |
22,729,928 |
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|
$ |
92,076,816 |
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|
$ |
83,107,725 |
|
Straight-line rent |
|
|
2,568,939 |
|
|
|
(736,320 |
) |
|
|
8,424,988 |
|
|
|
3,971,045 |
|
Interest and fee income |
|
|
7,445,601 |
|
|
|
7,547,096 |
|
|
|
29,249,626 |
|
|
|
29,692,592 |
|
|
|
|
|
|
|
|
|
|
|
|
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Total revenues |
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|
32,971,427 |
|
|
|
29,540,704 |
|
|
|
129,751,430 |
|
|
|
116,771,362 |
|
Expenses |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Real estate depreciation and amortization |
|
|
6,415,641 |
|
|
|
6,033,496 |
|
|
|
25,648,042 |
|
|
|
25,457,798 |
|
Property-related |
|
|
1,757,064 |
|
|
|
4,137,581 |
|
|
|
6,113,057 |
|
|
|
4,682,949 |
|
General and administrative |
|
|
4,759,044 |
|
|
|
5,882,883 |
|
|
|
21,095,970 |
|
|
|
19,514,768 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total operating expenses |
|
|
12,931,749 |
|
|
|
16,053,960 |
|
|
|
52,857,069 |
|
|
|
49,655,515 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating income |
|
|
20,039,678 |
|
|
|
13,486,744 |
|
|
|
76,894,361 |
|
|
|
67,115,847 |
|
Other income (expense) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest and other income (expense) |
|
|
(5,114 |
) |
|
|
5,109 |
|
|
|
43,021 |
|
|
|
85,419 |
|
Interest expense |
|
|
(9,378,793 |
) |
|
|
(11,267,823 |
) |
|
|
(37,662,501 |
) |
|
|
(42,439,917 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Net other expense |
|
|
(9,383,907 |
) |
|
|
(11,262,714 |
) |
|
|
(37,619,480 |
) |
|
|
(42,354,498 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Income from continuing operations |
|
|
10,655,771 |
|
|
|
2,224,030 |
|
|
|
39,274,881 |
|
|
|
24,761,349 |
|
Income (loss) from discontinued operations |
|
|
(3,248,927 |
) |
|
|
(810,946 |
) |
|
|
(2,908,034 |
) |
|
|
7,971,972 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income |
|
|
7,406,844 |
|
|
|
1,413,084 |
|
|
|
36,366,847 |
|
|
|
32,733,321 |
|
Net income (loss)
attributable to
non-controlling
interests |
|
|
(7,052 |
) |
|
|
2,920 |
|
|
|
(36,649 |
) |
|
|
(33,529 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income
attributable to MPT
common stockholders |
|
$ |
7,399,792 |
|
|
$ |
1,416,004 |
|
|
$ |
36,330,198 |
|
|
$ |
32,699,792 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Income per common share basic: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income from continuing operations |
|
$ |
0.13 |
|
|
$ |
0.03 |
|
|
$ |
0.48 |
|
|
$ |
0.37 |
|
Income (loss) from discontinued operations |
|
|
(0.04 |
) |
|
|
(0.01 |
) |
|
|
(0.03 |
) |
|
|
0.13 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income attributable to MPT common stockholders |
|
$ |
0.09 |
|
|
$ |
0.02 |
|
|
$ |
0.45 |
|
|
$ |
0.50 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Income per share diluted: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income from continuing operations |
|
$ |
0.13 |
|
|
$ |
0.03 |
|
|
$ |
0.48 |
|
|
$ |
0.37 |
|
Income (loss) from discontinued operations |
|
|
(0.04 |
) |
|
|
(0.01 |
) |
|
|
(0.03 |
) |
|
|
0.13 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income attributable to MPT common stockholders |
|
$ |
0.09 |
|
|
$ |
0.02 |
|
|
$ |
0.45 |
|
|
$ |
0.50 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Dividends declared per common share |
|
$ |
0.20 |
|
|
$ |
0.20 |
|
|
$ |
0.80 |
|
|
$ |
1.01 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average shares outstanding basic |
|
|
78,754,997 |
|
|
|
65,061,424 |
|
|
|
78,117,099 |
|
|
|
62,027,159 |
|
Weighted average shares outstanding diluted |
|
|
78,754,997 |
|
|
|
65,061,424 |
|
|
|
78,117,099 |
|
|
|
62,034,598 |
|
|
|
|
(A) |
|
Financials have been restated to reflect our adoption of the new accounting pronouncements involving
(i) convertible bonds, (ii) participating securities, and (iii) non-controlling interests. In addition, with the sale of our
Encino facility in December 2009, we have reclassified the operating results of this facility to discontinued operations. |
7
MEDICAL PROPERTIES TRUST, INC. AND SUBSIDIARIES
Reconciliation of Net Income to Funds From Operations
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the Three Months Ended |
|
|
For the Twelve Months Ended |
|
|
|
December 31, 2009 |
|
|
December 31, 2008 |
|
|
December 31, 2009 |
|
|
December 31, 2008 |
|
|
|
|
|
|
|
(A) |
|
|
|
|
|
|
(A) |
|
FFO information: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income attributable to MPT common stockholders |
|
$ |
7,399,792 |
|
|
$ |
1,416,004 |
|
|
$ |
36,330,198 |
|
|
$ |
32,699,792 |
|
Participating securities share in earnings |
|
|
(363,915 |
) |
|
|
(329,558 |
) |
|
|
(1,506,209 |
) |
|
|
(1,744,752 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income, less
participating securities
share in earnings |
|
$ |
7,035,877 |
|
|
$ |
1,086,446 |
|
|
$ |
34,823,989 |
|
|
$ |
30,955,040 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Depreciation and amortization |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Continuing operations |
|
|
6,415,640 |
|
|
|
6,033,496 |
|
|
|
25,648,042 |
|
|
|
25,457,798 |
|
Discontinued operations |
|
|
59,701 |
|
|
|
37,687 |
|
|
|
246,598 |
|
|
|
861,652 |
|
Loss (gain) on sale of real estate |
|
|
(278,230 |
) |
|
|
21,145 |
|
|
|
(278,230 |
) |
|
|
(9,305,146 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Funds from operations |
|
$ |
13,232,988 |
|
|
$ |
7,178,774 |
|
|
$ |
60,440,399 |
|
|
$ |
47,969,344 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Write-off/reserve of straight-line rent |
|
|
|
|
|
|
2,958,172 |
|
|
|
1,078,838 |
|
|
|
14,036,961 |
|
Loss due to hurricane |
|
|
|
|
|
|
1,280,000 |
|
|
|
|
|
|
|
1,280,000 |
|
Write-off of deferred financing costs |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
3,185,250 |
|
Write-off of Bucks other receivables |
|
|
|
|
|
|
1,757,203 |
|
|
|
|
|
|
|
1,757,203 |
|
Write-off of discontinued operations receivable |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2,099,027 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Normalized funds from operations |
|
$ |
13,232,988 |
|
|
$ |
13,174,149 |
|
|
$ |
61,519,237 |
|
|
$ |
70,327,785 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Share-based compensation |
|
|
1,206,405 |
|
|
|
1,256,094 |
|
|
|
5,488,956 |
|
|
|
6,387,735 |
|
Debt costs amortization |
|
|
1,427,245 |
|
|
|
1,366,625 |
|
|
|
5,652,623 |
|
|
|
4,745,476 |
|
Straight-line rent revenue |
|
|
(2,568,939 |
) |
|
|
(2,221,852 |
) |
|
|
(9,503,827 |
) |
|
|
(8,459,448 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted funds from operations |
|
$ |
13,297,699 |
|
|
$ |
13,575,016 |
|
|
$ |
63,156,989 |
|
|
$ |
73,001,548 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Per diluted share data: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income, less participating securities share in earnings |
|
$ |
0.09 |
|
|
$ |
0.02 |
|
|
$ |
0.45 |
|
|
$ |
0.50 |
|
Depreciation and amortization |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Continuing operations |
|
|
0.08 |
|
|
|
0.09 |
|
|
|
0.32 |
|
|
|
0.41 |
|
Discontinued operations |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
0.01 |
|
Loss (gain) on sale of real estate |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(0.15 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Funds from operations |
|
$ |
0.17 |
|
|
$ |
0.11 |
|
|
$ |
0.77 |
|
|
$ |
0.77 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Write-off/reserve of straight-line rent |
|
|
|
|
|
|
0.04 |
|
|
|
0.02 |
|
|
|
0.23 |
|
Loss due to hurricane |
|
|
|
|
|
|
0.02 |
|
|
|
|
|
|
|
0.02 |
|
Write-off of deferred financing costs |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
0.05 |
|
Write-off of Bucks other receivables |
|
|
|
|
|
|
0.03 |
|
|
|
|
|
|
|
0.03 |
|
Write-off of discontinued operations receivable |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
0.03 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Normalized funds from operations |
|
$ |
0.17 |
|
|
$ |
0.20 |
|
|
$ |
0.79 |
|
|
$ |
1.13 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Share-based compensation |
|
|
0.02 |
|
|
|
0.01 |
|
|
|
0.07 |
|
|
|
0.10 |
|
Debt costs amortization |
|
|
0.02 |
|
|
|
0.03 |
|
|
|
0.07 |
|
|
|
0.08 |
|
Straight-line rent revenue |
|
|
(0.04 |
) |
|
|
(0.03 |
) |
|
|
(0.12 |
) |
|
|
(0.14 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted funds from operations |
|
$ |
0.17 |
|
|
$ |
0.21 |
|
|
$ |
0.81 |
|
|
$ |
1.17 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Funds from operations, or FFO, represents net income (computed in accordance with GAAP), excluding
gains (or losses) from sales of property, plus real estate related depreciation and amortization
(excluding amortization of loan origination costs) and after adjustments for unconsolidated
partnerships and joint ventures. Management considers funds from operations a useful additional
measure of performance for an equity REIT because it facilitates an understanding of the operating
performance of our properties without giving effect to real estate depreciation and amortization,
which assumes that the value of real estate assets diminishes predictably over time. Since real
estate values have historically risen or fallen with market conditions, we believe that funds from
operations provides a meaningful supplemental indication of our performance. We compute funds from
operations in accordance with standards established by the Board of Governors of the National
Association of Real Estate Investment Trusts, or NAREIT, in its March 1995 White Paper (as amended
in November 1999 and April 2002), which may differ from the methodology for calculating funds
from operations utilized by other equity REITs and, accordingly, may not be comparable to such
other REITs. FFO does not represent amounts available for managements discretionary use because
of needed capital replacement or expansion, debt service obligations, or other commitments and
uncertainties, nor is it indicative of funds available to fund our cash needs, including our
ability to make distributions. Funds from operations should not be considered as an alternative to
net income (loss) (computed in accordance with GAAP) as indicators of our financial performance or
to cash flow from operating activities (computed in accordance with GAAP) as an indicator of our
liquidity.
We calculate adjusted funds from operations, or AFFO, by subtracting from or adding to normalized
FFO (i) straight-line rent revenue, (ii) non-cash share-based compensation expense, and (iii)
amortization of deferred financing costs. AFFO is an operating measurement that we use to analyze
our results of operations based on the receipt, rather than the accrual, of our rental revenue and
on certain other adjustments. We believe that this is an important measurement because our leases
generally have significant contractual escalations of base rents and therefore result in
recognition of rental income that is not collected until future periods, and costs that are
deferred or are non-cash charges. Our calculation of AFFO may not be comparable to AFFO or
similarly titled measures reported by other REITs. AFFO should not be considered as an alternative
to net income (calculated pursuant to GAAP) as an indicator of our results of operations or to cash
flow from operating activities (calculated pursuant to GAAP) as an indicator of our liquidity.
|
|
|
(A) |
|
Financials have been restated to reflect our adoption of the new accounting pronouncements involving (i) convertible bonds, (ii) participating securities
and (iii) non-controlling interests. |
8