Medical Properties Trust, Inc. (NYSE: MPW)

View:

Download DOC

Download PDF

Download XLS

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): August 4, 2011

MEDICAL PROPERTIES TRUST, INC.

(Exact Name of Registrant as Specified in Charter)

Commission File Number 001-32559


Maryland (State or other jurisdiction of incorporation or organization )		20-0191742 (I. R. S. Employer Identification No.)

1000 Urban Center Drive, Suite 501 Birmingham, AL (Address of principal executive offices)		35242 (Zip Code)

Registrant’s telephone number, including area code
(205) 969-3755

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the Registrant under any of the following provisions:


o		Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)


o		Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)


o		Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))


o		Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

TABLE OF CONTENTS


Item 2.02. Results of Operations and Financial Condition.
Item 9.01. Financial Statements and Exhibits.
SIGNATURE
INDEX TO EXHIBITS
EX-99.1
EX-99.2

Item 2.02. Results of Operations and Financial Condition.

On August 4, 2011, Medical Properties Trust, Inc. issued a press release announcing its financial results for the three and six months ended June 30, 2011. A copy of the press release is attached as Exhibit 99.1 to this Current Report on Form 8-K and is incorporated herein by reference. The information in this Current Report on Form 8-K, including the information set forth in Exhibit 99.1 and Exhibit 99.2 attached hereto, shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended, or otherwise subject to the liability of that section or Sections 11 and 12(a)(2) of the Securities Act of 1933, as amended. In addition, this information shall not be deemed incorporated by reference in any filing of Medical Properties Trust, Inc. with the Securities and Exchange Commission, except as expressly set forth by specific reference in any such filing.

Item 9.01. Financial Statements and Exhibits.

(d) Exhibits.


Exhibit Number		Description
99.1		Press release dated August 4, 2011 reporting financial results for the three and six months ended June 30, 2011

99.2		Medical Properties Trust, Inc. 2nd Quarter 2011 Supplemental Information

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.


	MEDICAL PROPERTIES TRUST, INC. (Registrant)
	By:	/s/ R. Steven Hamner
		R. Steven Hamner
		Executive Vice President and Chief Financial Officer (Principal Financial and Accounting Officer)

Date: August 4, 2011

INDEX TO EXHIBITS


Exhibit Number		Description
99.1		Press release dated August 4, 2011 reporting financial results for the three and six months ended June 30, 2011

99.2		Medical Properties Trust, Inc. 2nd Quarter 2011 Supplemental Information

exv99w1

Exhibit 99.1


		Contact: Charles Lambert
		Finance Director
		Medical Properties Trust, Inc.
		(205) 397-8897
		clambert@medicalpropertiestrust.com

MEDICAL PROPERTIES TRUST, INC. REPORTS
SECOND QUARTER 2011 RESULTS

Total 2011 Investments of $268 Million Year-to-Date,
Including $18.0 Million Investment in Dallas-area LTACH in July

Birmingham, AL — August 4, 2011 — Medical Properties Trust, Inc. (NYSE: MPW) today announced financial and operating results for the quarter ended June 30, 2011.

SECOND QUARTER AND RECENT HIGHLIGHTS

	•		Reported second quarter Normalized Funds from Operations (“FFO”) and Adjusted FFO (“AFFO”) per diluted share of $0.16 and $0.16, respectively;

	•		Invested $18.0 million in 40-bed LTACH in DeSoto, Texas in July;

	•		Completed previously announced refinancing and $450 million offering of unsecured notes;

	•		Completed repurchase of 85% of the $82.0 million issue of 9.25% exchangeable notes due 2013 in July;

	•		Expects $75 million investment involving the Hoboken University Medical Center to close in the third quarter;

	•		Paid 2011 second quarter cash dividend of $0.20 per share on July 14, 2011.

OPERATING RESULTS

The Company reported second quarter 2011 Normalized FFO and AFFO of $17.5 million and $17.8 million, or $0.16 and $0.16 per diluted share, respectively. Normalized FFO and AFFO for the second quarter of 2010 were $15.8 million and $28.6 million, or $0.15 and $0.28 per diluted share, respectively. AFFO for the second quarter of 2010 included collection of $12.0 million of early payment of additional rent. All 2011 per share amounts were affected by a 7% increase in the weighted average diluted common shares outstanding to 110.6 million for the

quarter ended June 30, 2011, from 103.5 million for the same period in 2010, primarily due to the common stock offering of 29.9 million shares completed in April of 2010.

For the six months ended June 30, 2011, Normalized FFO and AFFO were $37.9 million and $39.0 million, or $0.34 and $0.35 per diluted share, respectively. For the corresponding period in 2010, Normalized FFO and AFFO were $31.5 million and $45.5 million, or $0.35 and $0.50 per diluted share, respectively.

A reconciliation of Normalized FFO and AFFO to net income is included in the financial tables accompanying this press release.

DIVIDEND

The Company’s Board of Directors declared a quarterly dividend of $0.20 per share of common stock, which was paid on July 14, 2011 to stockholders of record on June 16, 2011.

LIQUIDITY

Subsequent to the previously described refinancing transactions that were completed during the second quarter, the Company used approximately $93.0 million of proceeds to make investments in hospital real estate and operations (including $75.0 million committed to the completion of the previously described Hoboken transaction) and $82.4 million to repurchase approximately 85% of the Company’s 9.25% exchangeable notes that mature in March 2013. As of June 30, 2011, MPT held $227.9 million in cash (including the proceeds committed to Hoboken) and had available undrawn credit facilities aggregating $321.0 million. Tenants at two of MPT’s hospitals (with an aggregated net book value of $37.0 million) have indicated the intent to reacquire the real estate pursuant to the expiring leases.

PORTFOLIO UPDATE

Subsequent to June 30, 2011, the Company acquired the real estate and an indirect 25% interest in the operations of a newly constructed long-term acute care hospital in the Dallas, Texas suburb of DeSoto.

The Company purchased the real estate of the 40-bed, 37,000 square foot facility and 3.5 acres for $13.0 million. The hospital includes 28 medical/surgical beds and a 12-bed intensive care unit. The initial term of the 15-year net lease expires in July 2026 and has three five-year renewal options. The operator of the facility is Vibra Healthcare. MPT has also agreed to fund up to $2.5 million as a secured working capital loan to the operator and has made an indirect investment in the operating entity of $2.5 million.

In the second quarter, the Company entered into previously described definitive agreements for a transaction involving HUMC Holdco, LLC and the Hoboken University Medical Center in New Jersey. Completion of this transaction is expected prior to the end of the

third quarter and remains subject to regulatory and bankruptcy court approval and other customary closing conditions. There is no assurance of such approvals or that the closing will occur in the third quarter or at all.

At June 30, 2011, the Company had total real estate investments of approximately $1.4 billion comprised of 58 healthcare properties in 22 states leased to 19 hospital operating companies. Two of these investments are in the form of mortgage loans.

FUTURE OPERATIONS OUTLOOK

Based solely on the portfolio as of June 30, 2011 and including the Hoboken and DeSoto acquisitions, the recent note offering and the tender offer for the 9.25% notes, the Company estimates that annualized Normalized FFO per share would approximate $0.72 to $0.76 per diluted share. The Company further estimates that its existing portfolio of assets plus approximately $325 million of assets expected to be acquired with available liquidity will generate Normalized FFO of between $0.93 and $0.97 per diluted share on an annualized basis once fully invested. This estimate assumes that average initial yields on new investments will range from 9.75% to 10.5%.

These estimates do not include the effects, if any, of real estate operating costs, litigation costs, debt refinancing costs, costs of acquisitions, new interest rate hedging activities, write-offs of straight-line rent or other non-recurring or unplanned transactions; nor do they include earnings, if any, from the Company’s profits interests or other investments in lessees. In addition, this estimate will change if $325 million in new acquisitions are not completed or such investments’ average initial yields are lower or higher than the range of 9.75% to 10.5%, market interest rates change, debt is refinanced, assets are sold, the River Oaks property is leased, other operating expenses vary or existing leases do not perform in accordance with their terms.

CONFERENCE CALL AND WEBCAST

The Company has scheduled a conference call and webcast on Thursday, August 4, 2011 at 11:00 a.m. Eastern Time to present the Company’s financial and operating results for the quarter ended June 30, 2011. The dial-in telephone numbers for the conference call are 866-730-5762 (U.S.) and 857-350-1586 (International); using passcode 64403027. The conference call will also be available via webcast in the Investor Relations’ section of the Company’s website, www.medicalpropertiestrust.com.

A telephone and webcast replay of the call will be available from shortly after the completion through August 11, 2011. Telephone numbers for the replay are 888-286-8010 and 617-801-6888 for U.S. and International callers, respectively. The replay passcode is 35237562.

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

About Medical Properties Trust, Inc.

Medical Properties Trust, Inc. is a 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 Company’s website at www.medicalpropertiestrust.com.

The statements in this press release that are forward looking are based on current expectations and actual results or future events may differ materially. Words such as “expects,” “believes,” “anticipates,” “intends,” “will,” “should” and variations of such words and similar expressions are intended to identify such forward-looking statements. Forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause the actual results of the Company or future events to differ materially from those expressed in or underlying such forward-looking statements, including without limitation: the capacity of the Company’s tenants to meet the terms of their agreements; annual Normalized FFO per share; the amount of acquisitions of healthcare real estate, if any; the repayment of debt arrangements; statements concerning the additional income to the Company as a result of ownership interests in certain hospital operations and the timing of such income; the restructuring of the Company’s investments in non-revenue producing properties; the payment of future dividends, if any; 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 Company’s business plan; financing risks; the Company’s ability to maintain its status as a REIT for federal income tax purposes; acquisition and development risks; potential environmental and other liabilities; and other factors affecting the real estate industry generally or healthcare real estate in particular. For further discussion of the factors that could affect outcomes, please refer to the “Risk factors” section of the Company’s Form 10-K for the year ended December 31, 2010, as amended, and 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.

# # #

MEDICAL PROPERTIES TRUST, INC. AND SUBSIDIARIES

Consolidated Balance Sheets


	June 30, 2011			December 31, 2010
	(Unaudited)
Assets
Real estate assets
Land, buildings and improvements, and intangible lease assets	$	1,227,250,997		$	1,032,369,288
Mortgage loans		165,000,000			165,000,000

Gross investment in real estate assets		1,392,250,997			1,197,369,288
Accumulated depreciation and amortization		(92,342,635	)		(76,094,356	)

Net investment in real estate assets		1,299,908,362			1,121,274,932

Cash and cash equivalents		227,905,625			98,408,509
Interest and rent receivable		26,676,630			26,175,635
Straight-line rent receivable		32,983,500			28,911,861
Other loans		54,978,453			50,984,904
Other assets		36,267,617			23,057,868

Total Assets	$	1,678,720,187		$	1,348,813,709


Liabilities and Equity
Liabilities
Debt, net	$	718,308,852		$	369,969,691
Accounts payable and accrued expenses		46,377,266			35,974,314
Deferred revenue		20,847,300			23,136,926
Lease deposits and other obligations to tenants		24,484,952			20,156,716

Total liabilities		810,018,370			449,237,647

Equity
Preferred stock, $0.001 par value. Authorized 10,000,000 shares; no shares outstanding		—			—
Common stock, $0.001 par value. Authorized 150,000,000 shares; issued and outstanding - 110,571,240 shares at June 30, 2011 and 110,225,052 shares at December 31, 2010		110,571			110,225
Additional paid in capital		1,055,389,297			1,051,785,240
Distributions in excess of net income		(179,930,751	)		(148,530,467	)
Accumulated other comprehensive income (loss)		(6,709,695	)		(3,640,751	)
Treasury shares, at cost		(262,343	)		(262,343	)

Total Medical Properties Trust, Inc. stockholders’ equity		868,597,079			899,461,904


Non-controlling interests		104,738			114,158

Total Equity		868,701,817			899,576,062


Total Liabilities and Equity	$	1,678,720,187		$	1,348,813,709

MEDICAL PROPERTIES TRUST, INC. AND SUBSIDIARIES

Consolidated Statements of Income

(Unaudited)


	For the Three Months Ended						For the Six Months Ended
	June 30, 2011			June 30, 2010			June 30, 2011			June 30, 2010
Revenues
Rent billed	$	29,108,490		$	24,311,336		$	57,781,213		$	45,559,628
Straight-line rent		2,069,633			(217,600	)		3,804,306			1,593,170
Interest and fee income		5,269,955			6,499,243			10,561,196			14,298,480

Total revenues		36,448,078			30,592,979			72,146,715			61,451,278

Expenses
Real estate depreciation and amortization		8,355,023			5,766,003			16,248,279			11,890,895
Impairment charge		564,005			—			564,005			12,000,000
Property-related		256,056			926,680			316,997			1,455,873
Acquisition expenses		616,081			884,523			2,656,053			949,163
General and administrative		7,818,054			8,579,124			14,692,315			14,684,064

Total operating expenses		17,609,219			16,156,330			34,477,649			40,979,995

Operating income		18,838,859			14,436,649			37,669,066			20,471,283

Other income (expense)
Interest and other income		20,627			29,058			6,225			13,432
Debt refinancing costs		(3,788,998	)		(6,214,211	)		(3,788,998	)		(6,214,211	)
Interest expense		(12,386,552	)		(8,556,353	)		(20,526,479	)		(18,014,081	)

Net other expense		(16,154,923	)		(14,741,506	)		(24,309,252	)		(24,214,860	)


Income (loss) from continuing operations		2,683,936			(304,857	)		13,359,814			(3,743,577	)
Income (loss) from discontinued operations		(882	)		6,537,097			147,223			7,162,417

Net income		2,683,054			6,232,240			13,507,037			3,418,840
Net income attributable to non-controlling interests		(43,409	)		(9,120	)		(87,786	)		(17,690	)

Net income attributable to MPT common stockholders	$	2,639,645		$	6,223,120		$	13,419,251		$	3,401,150


Earnings per common share — basic and diluted:
Income (loss) from continuing operations	$	0.02		$	—		$	0.12		$	(0.05	)
Income from discontinued operations		—			0.06			—			0.08

Net income attributable to MPT common stockholders	$	0.02		$	0.06		$	0.12		$	0.03


Dividends declared per common share	$	0.20		$	0.20		$	0.40		$	0.40

Weighted average shares outstanding — basic		110,589,329			103,497,945			110,494,506			91,336,728
Weighted average shares outstanding — diluted		110,600,421			103,497,945			110,504,105			91,336,728

MEDICAL PROPERTIES TRUST, INC. AND SUBSIDIARIES
Reconciliation of Net Income to Funds From Operations
(Unaudited)


	For the Three Months Ended						For the Six Months Ended
	June 30, 2011			June 30, 2010			June 30, 2011			June 30, 2010
FFO information:
Net income attributable to MPT common stockholders	$	2,639,645		$	6,223,120		$	13,419,251		$	3,401,150
Participating securities’ share in earnings		(281,310	)		(328,185	)		(596,670	)		(678,906	)

Net income, less participating securities’ share in earnings	$	2,358,335		$	5,894,935		$	12,822,581		$	2,722,244

Depreciation and amortization
Continuing operations		8,355,023			5,766,003			16,248,279			11,890,895
Discontinued operations		—			330,765			—			1,085,979
Loss (gain) on sale of real estate		—			(6,161,756	)		(5,324	)		(6,177,825	)

Funds from operations	$	10,713,358		$	5,829,947		$	29,065,536		$	9,521,293

Acquisition costs		616,081			884,523			2,656,053			949,163
Debt refinancing costs		3,788,998			6,214,211			3,788,998			6,214,211
Executive severance		—			2,830,221			—			2,830,221
Real estate impairment charge		564,005			—			564,005			—
Loan impairment charge		—			—			—			12,000,000
Write-off of other receivables		1,845,968			—			1,845,967			—

Normalized funds from operations	$	17,528,410		$	15,758,902		$	37,920,559		$	31,514,888

Share-based compensation		1,823,597			1,433,366			3,661,306			2,963,100
Debt costs amortization		1,011,107			1,259,000			1,998,062			2,736,390
Additional rent received in advance (A)		(300,000	)		10,000,000			(600,000	)		10,000,000
Straight-line rent revenue		(2,280,189	)		176,908			(4,014,863	)		(1,674,554	)

Adjusted funds from operations	$	17,782,925		$	28,628,176		$	38,965,064		$	45,539,824


Per diluted share data:
Net income, less participating securities’ share in earnings	$	0.02		$	0.06		$	0.12		$	0.03
Depreciation and amortization
Continuing operations		0.08			0.06			0.14			0.13
Discontinued operations		—			—			—			0.01
Loss (gain) on sale of real estate		—			(0.06	)		—			(0.07	)

Funds from operations	$	0.10		$	0.06		$	0.26		$	0.10

Acquisition costs		0.01			—			0.03			0.01
Debt refinancing costs		0.03			0.06			0.03			0.07
Executive severance		—			0.03			—			0.03
Real estate impairment charge		—			—			—			—
Loan impairment charge		—			—			—			0.14
Write-off of other receivables		0.02			—			0.02			—

Normalized funds from operations	$	0.16		$	0.15		$	0.34		$	0.35

Share-based compensation		0.02			0.02			0.03			0.03
Debt costs amortization		—			0.01			0.02			0.03
Additional rent received in advance (A)		—			0.10			—			0.11
Straight-line rent revenue		(0.02	)		—			(0.04	)		(0.02	)

Adjusted funds from operations	$	0.16		$	0.28		$	0.35		$	0.50


(A)		Represents additional rent from one tenant in advance of when we can recognize as revenue for accounting purposes.

		This additional rent is being recorded to revenue on a straight-line basis over the lease life.

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 management’s 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.

exv99w2

Exhibit 99.2

2nd Quarter 2011 Supplemental Information

Paradise Valley Hospital, San Diego, California

Medical Properties Trust, Inc.
1000 Urban Center Drive, Suite 501
Birmingham, AL 35242
(205) 969-3755
www.medicalpropertiestrust.com

Contact: Charles Lambert, Director of Finance

(205) 397-8897 or clambert@medicalpropertiestrust.com

Table Of Contents


Company Information			1

Reconciliation of Net Income to Funds from Operations			2

Investment and Revenue by Asset Type, Operator, and by State			3

Lease Maturity Schedule			4

Debt Summary			5

Consolidated Balance Sheets			6

Acquisitions for the Six Months Ended June 30, 2011			7

The information in this supplemental information package should be read in conjunction with the Company’s Annual Report on Form 10-K, Quarterly Reports on Form 10-Q, Current Reports on Form 8-K and other information filed with the Securities and Exchange Commission. You can access these documents free of charge at www.sec.gov and from the Company’s website at www.medicalpropertiestrust.com. The information contained on the Company’s website is not incorporated by reference into, and should not be considered a part of, this supplemental package.

For more information, please contact Charles Lambert, Finance Director at (205) 397-8897.

Company Information


Headquarters:		Medical Properties Trust, Inc. 1000 Urban Center Drive, Suite 501 Birmingham, AL 35242 (205) 969-3755 Fax: (205) 969-3756

Website:		www.medicalpropertiestrust.com

Executive 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 Secretary and Treasurer

Investor Relations:		Medical Properties Trust, Inc. 1000 Urban Center Drive, Suite 501 Birmingham, AL 35242 Attn: Charles Lambert (205) 397-8897 clambert@medicalpropertiestrust.com

Reconciliation of Net Income to Funds from Operations

MEDICAL PROPERTIES TRUST, INC. AND SUBSIDIARIES
Reconciliation of Net Income to Funds From Operations
(Unaudited)


	For the Three Months Ended						For the Six Months Ended
	June 30, 2011			June 30, 2010			June 30, 2011			June 30, 2010
FFO information
Net income attributable to MPT common stockholders	$	2,639,645		$	6,223,120		$	13,419,251		$	3,401,150
Participating securities’ share in earnings		(281,310	)		(328,185	)		(596,670	)		(678,906	)

Net income, less participating securities’ share in earning	$	2,358,335		$	5,894,935		$	12,822,581		$	2,722,244

Depreciation and amortization
Continuing operations		8,355,023			5,766,003			16,248,279			11,890,895
Discontinued operations		—			330,765			—			1,085,979
Loss (gain) on sale of real estate		—			(6,161,756	)		(5,324	)		(6,177,825	)

Funds from operations	$	10,713,358		$	5,829,947		$	29,065,536		$	9,521,293

Acquisition costs		616,081			884,523			2,656,053			949,163
Debt refinancing costs		3,788,998			6,214,211			3,788,998			6,214,211
Executive severance		—			2,830,221			—			2,830,221
Real estate impairment charge		564,005			—			564,005			—
Loan impairment charge		—			—			—			12,000,000
Write-off of other receivables		1,845,968			—			1,845,967			—

Normalized funds from operations	$	17,528,410		$	15,758,902		$	37,920,559		$	31,514,888

Share-based compensation		1,823,597			1,433,366			3,661,306			2,963,100
Debt costs amortization		1,011,107			1,259,000			1,998,062			2,736,390
Additional rent received in advance (A)		(300,000	)		10,000,000			(600,000	)		10,000,000
Straight-line rent revenue		(2,280,189	)		176,908			(4,014,863	)		(1,674,554	)

Adjusted funds from operations	$	17,782,925		$	28,628,176		$	38,965,064		$	45,539,824


Per diluted share data
Net income, less participating securities’ share in earning	$	0.02		$	0.06		$	0.12		$	0.03
Depreciation and amortization Continuing operations		0.08			0.06			0.14			0.13
Discontinued operations		—			—			—			0.01
Loss (gain) on sale of real estate		—			(0.06	)		—			(0.07	)

Funds from operations	$	0.10		$	0.06		$	0.26		$	0.10

Acquisition costs		0.01			—			0.03			0.01
Debt refinancing costs		0.03			0.06			0.03			0.07
Executive severance		—			0.03			—			0.03
Real estate impairment charge		—			—			—			—
Loan impairment charge		—			—			—			0.14
Write-off of other receivables		0.02			—			0.02			—

Normalized funds from operations	$	0.16		$	0.15		$	0.34		$	0.35

Share-based compensation		0.02			0.02			0.03			0.03
Debt costs amortization		—			0.01			0.02			0.03
Additional rent received in advance (A)		—			0.10			—			0.11
Straight-line rent revenue		(0.02	)		—			(0.04	)		(0.02	)

Adjusted funds from operations	$	0.16		$	0.28		$	0.35		$	0.50


(A)		Represents additional rent from one tenant in advance of when we can recognize as revenue for accounting purposes.

		This additional rent is being recorded to revenue on a straight-line basis over the lease life.

Investments and Revenue by Asset Type — As of June 30, 2011


	Real Estate		Percentage			Total		Percentage
	Assets		of Total Assets			Revenue		of Total Revenue

General Acute Care Hospitals	$	897,244,188		53.5	%	$	44,236,779		61.3	%
Long-Term Acute Care Hospitals		322,561,991		19.2	%		17,056,711		23.6	%
Medical Office Buildings		15,795,436		0.9	%		865,509		1.2	%
Rehabilitation Hospitals		182,468,168		10.9	%		9,157,040		12.7	%
Wellness Centers		15,624,817		0.9	%		830,676		1.2	%
Net other assets		245,025,587		14.6	%		—		—

Total	$	1,678,720,187		100.0	%	$	72,146,715		100.0	%

Investments and Revenue by Operator — As of June 30, 2011


	Real Estate		Percentage			Total		Percentage
	Assets		of Total Assets			Revenue		of Total Revenue

Prime Healthcare	$	430,112,248		25.6	%	$	22,522,244		31.2	%
Vibra Healthcare, LLC		132,918,169		7.9	%		9,119,873		12.6	%
HealthSouth Corporation		97,757,589		5.8	%		4,655,921		6.5	%
RehabCare		83,434,567		5.0	%		3,997,842		5.5	%
Reliant Healthcare Partners		73,851,400		4.4	%		3,806,972		5.3	%
14 other operators		615,620,627		36.7	%		28,043,863		38.9	%
Net other assets		245,025,587		14.6	%		—		—

Total	$	1,678,720,187		100.0	%	$	72,146,715		100.0	%

Investment and Revenue by State — As of June 30, 2011


	Real Estate		Percentage			Total		Percentage
	Assets		of Total Assets			Revenue		of Total Revenue

California	$	455,222,748		27.1	%	$	24,428,360		33.9	%
Texas		346,926,067		20.7	%		17,179,077		23.8	%
Utah		66,355,303		4.0	%		3,300,033		4.6	%
Missouri		60,921,029		3.6	%		3,103,064		4.3	%
New Jersey		58,000,000		3.5	%		2,738,889		3.8	%
17 other states		446,269,453		26.6	%		21,397,292		29.6	%
Net other assets		245,025,587		14.5	%		—		—

Total	$	1,678,720,187		100.0	%	$	72,146,715		100.0	%

Lease Maturity Schedule — As of June 30, 2011


(Dollars in thousands)					Percent of total
Total portfolio (1)	Total leases		Base rent ⁽²⁾		base rent
2011		2	$	3,407		3.0	%
2012		3		2,851		2.5	%
2013		—		—		—
2014		2		4,731		4.2	%
2015		2		3,788		3.4	%
2016		1		2,250		2.0	%
2017		—		—		—
2018		6		12,603		11.1	%
2019		8		12,502		11.0	%
2020		2		3,208		2.8	%
Thereafter		28		68,144		60.0	%

		54	$	113,484		100	%


(1)		Excludes our River Oaks facility, as it is currently under re-development and not subject to lease and our Florence facility that is under development.

(2)		The most recent monthly base rent annualized. Base rent does not include tenant recoveries, additional rents and other lease-related adjustments to revenue (i.e., straight-line rents and deferred revenues).

Debt Summary as of June 30, 2011


									Amounts Due
Instrument	Rate Type		Rate			Balance			2011		2012		2013		2014		2015		Thereafter
6.875% Notes Due 2021	Fixed			6.88	%	$	450,000,000		$	—	$	—	$	—	$	—	$	—	$	450,000,000

BB&T Revolver	Variable			1.69	%		39,600,000			—		39,600,000		—		—		—		—

2011 Credit Facility Revolver	Variable			—	⁽¹⁾					—		—		—		—		—		—

2016 Unsecured Notes	Fixed			7.71	%⁽²⁾		125,000,000			—		—		—		—		—		125,000,000

2006 Exchangeable Notes	Fixed			6.13	%		9,175,000			9,175,000		—		—		—		—		—

2008 Exchangeable Notes	Fixed			9.25	%⁽³⁾		82,000,000			—		—		82,000,000		—		—		—

Northland — Mortgage Capital Term Loan	Fixed			6.20	%		14,539,729			110,457		231,789		249,384		265,521		282,701		13,399,877


						$	720,314,729		$	9,285,457	$	39,831,789	$	82,249,384	$	265,521	$	282,701	$	588,399,877


		Debt Discount					(2,005,877	)


						$	718,308,852


(1)		Represents a $330 million unsecured revolving credit facility with spreads over LIBOR ranging from 2.60% to 3.40%.

(2)		Represents weighted-average rate for four traunches of the Notes. The Company has entered into two swap agreements that begin in July and October 2011. Beginning July 31, 2011, the Company will pay 5.507% on $65 million of the Notes and beginning October 31, 2011, the Company will pay 5.675% on $60 million of Notes.

(3)		On July 14, the Company completed a tender offer for $69.5 million of the 2013 Exchangeable Notes.

Consolidated Balance Sheets

MEDICAL PROPERTIES TRUST,INC. AND SUBSIDIARIES

Consolidated Balance Sheets


	June 30, 2011			December 31, 2010
	(Unaudited)
Assets
Real estate assets
Land,buildings and improvements, and intangible lease assets	$	1,227,250,997		$	1,032,369,288
Mortgage loans		165,000,000			165,000,000

Gross investment in real estate assets		1,392,250,997			1,197,369,288
Accumulated depreciation and amortization		(92,342,635	)		(76,094,356	)

Net investment in real estate assets		1,299,908,362			1,121,274,932

Cash and cash equivalents		227,905,625			98,408,509
Interest and rent receivable		26,676,630			26,175,635
Straight-line rent receivable		32,983,500			28,911,861
Other loans		54,978,453			50,984,904
Other assets		36,267,617			23,057,868

Total Assets	$	1,678,720,187		$	1,348,813,709

Liabilities and Equity
Liabilities
Debt, net	$	718,308,852		$	369,969,691
Accounts payable and accrued expenses		46,377,266			35,974,314
Deferred revenue		20,847,300			23,136,926
Lease deposits and other obligations to tenants		24,484,952			20,156,716

Total liabilities		810,018,370			449,237,647
Equity
Preferred stock, $0.001 par value. Authorized 10,000,000 shares; no shares outstanding		—			—
Common stock, $0.001 par value. Authorized 150,000,000 shares; issued and outstanding - 110,571,240 shares at June 30, 2011 and 110,225,052 shares at December 31, 2010		110,571			110,225
Additional paid in capital		1,055,389,297			1,051,785,240
Distributions in excess of net income		(179,930,751	)		(148,530,467	)
Accumulated other comprehensive income (loss)		(6,709,695	)		(3,640,751	)
Treasury shares, at cost		(262,343	)		(262,343	)

Total Medical Properties Trust, Inc. stockholders’ equity		868,597,079			899,461,904


Non-controlling interests		104,738			114,158

Total Equity		868,701,817			899,576,062


Total Liabilities and Equity	$	1,678,720,187		$	1,348,813,709

Acquisitions for the Six Months Ended June 30, 2011

(Dollars in thousands)

Name

Location

Property Type

Investment

Gilbert Hospital

Gilbert,AZ

General Acute Care

17,100

Atrium Medical Center

Corinth, TX

LTACH

30,000

Bayonne Medical Center

Bayonne,NJ

General Acute Care

58,000

Alvarado Hospital

San Diego, CA

General Acute Care

70,000

Northland LTACH Hospital

Kansas City, MO

LTACH

19,489

Total Investments

194,589

Table of Contents

Table of Contents

Table of Contents

Table of Contents