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): November 5, 2013
MEDICAL PROPERTIES TRUST, INC.
(Exact Name of Registrant as Specified in Charter)
Commission File Number 001-32559
| Maryland | 20-0191742 | |
| (State or other jurisdiction of incorporation or organization) |
(I. R. S. Employer Identification No.) |
| 1000 Urban Center Drive, Suite 501 Birmingham, AL |
35242 | |
| (Address of principal executive offices) | (Zip Code) |
Registrant’s telephone number, including area code
(205) 969-3755
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the Registrant under any of the following provisions:
| ¨ | Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) |
| ¨ | Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) |
| ¨ | Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) |
| ¨ | Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) |
Item 2.02. Results of Operations and Financial Condition.
On November 5, 2013, Medical Properties Trust, Inc. issued a press release announcing its financial results for the three and nine months ended September 30, 2013. 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.
The Company disclosed three non-GAAP financial measures in the attached press release for the three and nine months ended September 30, 2013: Funds from operations, Normalized funds from operations and Adjusted funds from operations. The most directly comparable GAAP financial measure to each of these non-GAAP financial measures is net income, which was $25.6 million, or $0.16 per diluted share for the three months ended September 30, 2013 compared to $31.5 million, or $0.23 per diluted share for the three months ended September 30, 2012. For the nine months ended September 30, 2013 net income was $79.2 million, or $0.53 per diluted share compared to $61.3 million, or $0.46 per diluted share for the nine months ended September 30, 2012. In the attached press release, the Company disclosed Funds from operations of $34.3 million and $102.7 million for the three and nine months ended September 30, 2013, respectively, and Normalized funds from operations of $38.4 million and $109.2 million for the three and nine months ended September 30, 2013, respectively. Adjusted funds from operations were disclosed in the press release as $36.4 million and $104.5 million for the three and nine months ended September 30, 2013 respectively.
A reconciliation of the non-GAAP financial measures to net income as well as a statement disclosing the reasons why the Company’s management believes that presentation of these non-GAAP financial measures provides useful information to investors regarding the Company’s financial condition and results of operations are included in Exhibits 99.1 and 99.2.
Item 9.01. Financial Statements and Exhibits.
(d) Exhibits.
| Exhibit |
Description | |
| 99.1 | Press release dated November 5, 2013 reporting financial results for the three and nine months ended September 30, 2013 | |
| 99.2 | Medical Properties Trust, Inc. 3rd Quarter 2013 Supplemental Information | |
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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 (Principal Financial and Accounting Officer) | ||
Date: November 5, 2013
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INDEX TO EXHIBITS
| Exhibit |
Description | |
| 99.1 | Press release dated November 5, 2013 reporting financial results for the three and nine months ended September 30, 2013 | |
| 99.2 | Medical Properties Trust, Inc. 3rd Quarter 2013 Supplemental Information | |
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Exhibit 99.1
| Contact: Charles Lambert | ||
| Managing Director – Capital Markets | ||
| Medical Properties Trust, Inc. | ||
| (205) 397-8897 clambert@medicalpropertiestrust.com |
MEDICAL PROPERTIES TRUST, INC. REPORTS
STRONG THIRD QUARTER 2013 RESULTS
Company Expects to Complete Acquisitions Totaling $650 Million in 2013
Birmingham, AL – November 5, 2013 – Medical Properties Trust, Inc. (the “Company”) (NYSE: MPW) today announced financial and operating results for the third quarter ended September 30, 2013.
HIGHLIGHTS
| • | Achieved third quarter Normalized Funds from Operations (“FFO”) per diluted share of $0.25; |
| • | Completed the $283 million acquisition of the real estate assets of three general acute care hospitals operated by IASIS Healthcare, LLC; |
| • | Executed definitive agreements to acquire approximately $248 million (€184 million) of the real estate assets of 11 rehabilitation facilities in Germany; |
| • | Commenced development of three free-standing emergency room facilities and reviewing diligence materials for 18 additional potential locations pursuant to the recently completed agreement with First Choice ER, LLC. |
| • | Acquired and leased an existing $15.8 million inpatient rehabilitation hospital to Ernest Health and continued construction of two additional rehabilitation hospitals for Ernest Health; |
| • | Completed approximately $420 million of long-term fixed rate debt transactions at an weighted average coupon of 5.9%; |
| • | Raised approximately $147 million through a common stock offering; |
| • | Paid 2013 third quarter cash dividend of $0.20 per share. |
Included in the financial tables accompanying this press release is information about the Company’s assets and liabilities, net income and reconciliations of net income to FFO and AFFO, all on a comparable basis to 2012 periods.
“Once again we have been able to exceed expectations by acquiring more than $650 million of high quality assets this year,” said Edward K. Aldag, Jr., Chairman, President and CEO of Medical Properties Trust. “Along with development properties opened in 2013, these additional
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facilities will generate approximately $68 million in additional revenue and at our high positive spreads are expected to meaningfully increase our normalized FFO run rate per share.
“In addition to the strong investments made in the U.S. during this past quarter, we announced the acquisition of 11 rehabilitation facilities in Germany. The addition of these facilities in the strong economic and political environment of Germany adds significant strength to our portfolio for the benefit of our investors. We continue to be excited about our growing opportunities in the U.S. and now our additional opportunities in other parts of the world. We expect that 2014 will be another strong year for MPT.”
OPERATING RESULTS
Normalized FFO for the quarter increased 15% to $38.4 million compared with $33.4 million in the third quarter of 2012. Per share Normalized FFO was $0.25 per diluted share for the third quarter of 2013 and 2012. For the nine months ended September 30, 2013, normalized FFO increased 28% to $109.2 million from $85.5 million. On a per diluted share basis, normalized FFO increased 12% for that same period to $0.73 per diluted share from $0.65 per diluted share.
Net income, before gains on property sales, for the third quarter of 2013 was $25.7 million (or $0.16 per diluted share) compared with net income of $22.8 million (or $0.17 per diluted share) in the third quarter of 2012. The third quarter in 2012 included a one-time gain of $8.7 million (or $0.06 per diluted share) related to the sale of a property. Additionally, due to increased acquisition activity in the third quarter of 2013, acquisition expenses were $4.2 million compared to $0.4 million in the third quarter of 2012. Net income for the nine months ended September grew 29% to $79.3 million (or $0.53 per diluted share) from $61.5 million (or $0.46 per diluted share).
PORTFOLIO UPDATE AND FUTURE OUTLOOK
On September 30, 2013, the Company had total real estate and related investments of approximately $2.5 billion comprised of 90 healthcare properties in 25 states leased or loaned to 25 hospital operating companies. The Company estimates that 2013 normalized funds from operations will range between $0.98 and $1.00 per diluted share, reflecting the impact of timing of closing the Company’s outstanding acquisition volume. During the third quarter, the Company completed acquisition financing prior to the consummation of more than $527 million of announced acquisitions. Assuming no additional acquisitions or capital transactions and including a property divestiture expected to occur in the fourth quarter of 2013, the Company estimates that the run rate of funds from operations as of the end of 2013, will range between $1.07 and $1.11 per diluted share.
Guidance estimates do not include the effects, if any, of real estate operating costs, litigation costs, debt refinancing costs, acquisition costs, including the future payment of $12 million in German transfer taxes, interest rate hedging activities, foreign currency impacts, write-offs of straight-line rent or other non-recurring or unplanned transactions. These estimates will change if the Company acquires assets totaling more or less than its expectations, the timing of
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acquisitions varies from expectations, capitalization rates vary from expectations, market interest rates change, debt is refinanced, new shares are issued, additional debt is incurred, assets are sold, other operating expenses vary, income from investments in tenant operations vary from expectations, or existing leases do not perform in accordance with their terms.
CONFERENCE CALL AND WEBCAST
The Company has scheduled a conference call and webcast for Tuesday, November 5, 2013 at 11:00 a.m. Eastern Time to present the Company’s financial and operating results for the quarter ended September 30, 2013. The dial-in telephone numbers for the conference call are 800-706-7741 (U.S.) and 617-614-3471 (International); using passcode 36971357. 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 of the call through November 19, 2013. Telephone numbers for the replay are 888-286-8010 and 617-801-6888 for U.S. and International callers, respectively. The replay passcode is 77326432.
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. 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; Normalized FFO per share; expected payout ratio, the amount of acquisitions of healthcare real estate, if any; capital markets conditions, the repayment of debt arrangements; statements concerning the additional income to the Company as a result of ownership interests in certain hospital operations and the timing of such income; the restructuring of the Company’s investments in non-revenue producing properties; the payment of future dividends, if any; completion of additional debt arrangement, 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
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income tax purposes; acquisition and development risks; potential environmental and other liabilities; and other factors affecting the real estate industry generally or healthcare real estate in particular. For further discussion of the factors that could affect outcomes, please refer to the “Risk factors” section of the Company’s Annual Report on Form 10-K for the year ended December 31, 2012, and as updated by the Company’s subsequently filed Quarterly Reports on Form 10-Q and other SEC filings. Except as otherwise required by the federal securities laws, the Company undertakes no obligation to update the information in this press release.
# # #
4
MEDICAL PROPERTIES TRUST, INC. AND SUBSIDIARIES
Consolidated Balance Sheets
| September 30, 2013 | December 31, 2012 | |||||||
| (Unaudited) | (A) | |||||||
| Assets |
||||||||
| Real estate assets |
||||||||
| Land, buildings and improvements, and intangible lease assets |
$ | 1,564,797,564 | $ | 1,223,760,599 | ||||
| Construction in progress and other |
41,633,350 | 38,338,985 | ||||||
| Real estate held for sale |
— | 16,497,248 | ||||||
| Net investment in direct financing leases |
403,512,336 | 314,411,549 | ||||||
| Mortgage loans |
368,650,000 | 368,650,000 | ||||||
|
|
|
|
|
|||||
| Gross investment in real estate assets |
2,378,593,250 | 1,961,658,381 | ||||||
| Accumulated depreciation and amortization |
(150,666,149 | ) | (124,615,504 | ) | ||||
|
|
|
|
|
|||||
| Net investment in real estate assets |
2,227,927,101 | 1,837,042,877 | ||||||
| Cash and cash equivalents |
12,124,194 | 37,311,207 | ||||||
| Interest and rent receivable |
54,505,451 | 45,288,845 | ||||||
| Straight-line rent receivable |
44,240,282 | 35,859,703 | ||||||
| Other assets |
224,352,868 | 223,383,020 | ||||||
|
|
|
|
|
|||||
| Total Assets |
$ | 2,563,149,896 | $ | 2,178,885,652 | ||||
|
|
|
|
|
|||||
| Liabilities and Equity |
||||||||
| Liabilities |
||||||||
| Debt, net |
$ | 1,086,972,647 | $ | 1,025,159,854 | ||||
| Accounts payable and accrued expenses |
73,852,217 | 65,960,792 | ||||||
| Deferred revenue |
23,228,722 | 20,609,467 | ||||||
| Lease deposits and other obligations to tenants |
20,527,213 | 17,341,694 | ||||||
|
|
|
|
|
|||||
| Total liabilities |
1,204,580,799 | 1,129,071,807 | ||||||
| Equity |
||||||||
| Preferred stock, $0.001 par value. Authorized 10,000,000 shares; no shares outstanding |
— | — | ||||||
| Common stock, $0.001 par value. Authorized 250,000,000 shares; issued and outstanding - 160,880,162 shares at September 30, 2013 and 136,335,427 shares at December 31, 2012 |
160,880 | 136,336 | ||||||
| Additional paid in capital |
1,615,229,624 | 1,295,916,192 | ||||||
| Distributions in excess of net income |
(246,865,083 | ) | (233,494,130 | ) | ||||
| Accumulated other comprehensive income (loss) |
(9,693,981 | ) | (12,482,210 | ) | ||||
| Treasury shares, at cost |
(262,343 | ) | (262,343 | ) | ||||
|
|
|
|
|
|||||
| Total Equity |
1,358,569,097 | 1,049,813,845 | ||||||
|
|
|
|
|
|||||
| Total Liabilities and Equity |
$ | 2,563,149,896 | $ | 2,178,885,652 | ||||
|
|
|
|
|
|||||
| (A) | Financials have been derived from the prior year audited financials adjusted for discontinued operations. |
MEDICAL PROPERTIES TRUST, INC. AND SUBSIDIARIES
Consolidated Statements of Income
(Unaudited)
| For the Three Months Ended | For the Nine Months Ended | |||||||||||||||
| September 30, 2013 | September 30, 2012 | September 30, 2013 | September 30, 2012 | |||||||||||||
| (A) | (A) | |||||||||||||||
| Revenues |
||||||||||||||||
| Rent billed |
$ | 31,877,115 | $ | 30,297,697 | $ | 95,073,326 | $ | 90,680,685 | ||||||||
| Straight-line rent |
2,853,240 | 2,745,298 | 8,260,267 | 5,428,798 | ||||||||||||
| Income from direct financing leases |
11,297,974 | 5,773,138 | 29,284,432 | 12,979,142 | ||||||||||||
| Interest and fee income |
14,427,392 | 14,037,030 | 43,282,318 | 33,485,603 | ||||||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| Total revenues |
60,455,721 | 52,853,163 | 175,900,343 | 142,574,228 | ||||||||||||
| Expenses |
||||||||||||||||
| Real estate depreciation and amortization |
8,789,048 | 8,308,006 | 26,050,645 | 24,826,225 | ||||||||||||
| Property-related |
458,253 | 214,478 | 1,520,384 | 1,027,609 | ||||||||||||
| Acquisition expenses |
4,178,765 | 410,426 | 6,457,217 | 4,114,696 | ||||||||||||
| General and administrative |
6,379,604 | 7,052,618 | 21,423,170 | 21,341,288 | ||||||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| Total operating expenses |
19,805,670 | 15,985,528 | 55,451,416 | 51,309,818 | ||||||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| Operating income |
40,650,051 | 36,867,635 | 120,448,927 | 91,264,410 | ||||||||||||
| Interest and other income (expense) |
(14,984,097 | ) | (14,004,022 | ) | (43,629,496 | ) | (40,840,864 | ) | ||||||||
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|
|
|
|
|
|
|
|||||||||
| Income from continuing operations |
25,665,954 | 22,863,613 | 76,819,431 | 50,423,546 | ||||||||||||
| Income from discontinued operations |
37,100 | 8,643,283 | 2,498,156 | 11,050,011 | ||||||||||||
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|
|
|
|
|
|
|
|||||||||
| Net income |
25,703,054 | 31,506,896 | 79,317,587 | 61,473,557 | ||||||||||||
| Net income attributable to non-controlling interests |
(55,002 | ) | (43,300 | ) | (165,217 | ) | (129,822 | ) | ||||||||
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|
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|
|
|
|
|
|||||||||
| Net income attributable to MPT common stockholders |
$ | 25,648,052 | $ | 31,463,596 | $ | 79,152,370 | $ | 61,343,735 | ||||||||
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|
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|
|||||||||
| Earnings per common share - basic : |
||||||||||||||||
| Income from continuing operations |
$ | 0.16 | $ | 0.17 | $ | 0.51 | $ | 0.38 | ||||||||
| Income from discontinued operations |
— | 0.06 | 0.02 | 0.08 | ||||||||||||
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|
|
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|
|||||||||
| Net income attributable to MPT common stockholders |
$ | 0.16 | $ | 0.23 | $ | 0.53 | $ | 0.46 | ||||||||
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|
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| Earnings per common share - diluted: |
||||||||||||||||
| Income from continuing operations |
$ | 0.16 | $ | 0.17 | $ | 0.51 | $ | 0.38 | ||||||||
| Income from discontinued operations |
— | 0.06 | 0.02 | 0.08 | ||||||||||||
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|
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|
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|
|||||||||
| Net income attributable to MPT common stockholders |
$ | 0.16 | $ | 0.23 | $ | 0.53 | $ | 0.46 | ||||||||
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|
|
|||||||||
| Dividends declared per common share |
$ | 0.20 | $ | 0.20 | $ | 0.60 | $ | 0.60 | ||||||||
| Weighted average shares outstanding - basic |
154,757,902 | 134,780,992 | 148,204,479 | 131,467,285 | ||||||||||||
| Weighted average shares outstanding - diluted |
155,968,954 | 134,781,577 | 149,517,040 | 131,467,480 | ||||||||||||
| (A) | Financials have been restated to reclass the operating results of certain properties sold in 2012 and 2013 to discontinued operations. |
MEDICAL PROPERTIES TRUST, INC. AND SUBSIDIARIES
Reconciliation of Net Income to Funds From Operations
(Unaudited)
| For the Three Months Ended | For the Nine Months Ended | |||||||||||||||
| September 30, 2013 | September 30, 2012 | September 30, 2013 | September 30, 2012 | |||||||||||||
| (A) | (A) | |||||||||||||||
| FFO information: |
||||||||||||||||
| Net income attributable to MPT common stockholders |
$ | 25,648,052 | $ | 31,463,596 | $ | 79,152,370 | $ | 61,343,735 | ||||||||
| Participating securities’ share in earnings |
(166,066 | ) | (224,867 | ) | (538,391 | ) | (714,901 | ) | ||||||||
|
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|
|
|
|
|
|
|
|||||||||
| Net income, less participating securities’ share in earnings |
$ | 25,481,986 | $ | 31,238,729 | $ | 78,613,979 | $ | 60,628,834 | ||||||||
| Depreciation and amortization: |
||||||||||||||||
| Continuing operations |
8,789,048 | 8,308,006 | 26,050,645 | 24,826,225 | ||||||||||||
| Discontinued operations |
— | 494,026 | 103,197 | 1,586,869 | ||||||||||||
| Loss (gain) on sale of real estate |
— | (8,725,735 | ) | (2,054,229 | ) | (7,280,180 | ) | |||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| Funds from operations |
$ | 34,271,034 | $ | 31,315,026 | $ | 102,713,592 | $ | 79,761,748 | ||||||||
| Write-off straight line rent |
— | 1,639,839 | — | 1,639,839 | ||||||||||||
| Acquisition costs |
4,178,765 | 410,426 | 6,457,217 | 4,114,696 | ||||||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| Normalized funds from operations |
$ | 38,449,799 | $ | 33,365,291 | $ | 109,170,809 | $ | 85,516,283 | ||||||||
| Share-based compensation |
1,815,195 | 1,793,476 | 6,019,100 | 5,430,185 | ||||||||||||
| Debt costs amortization |
871,974 | 867,193 | 2,624,123 | 2,578,020 | ||||||||||||
| Additional rent received in advance (B) |
(300,000 | ) | (300,000 | ) | (900,000 | ) | (900,000 | ) | ||||||||
| Straight-line rent revenue and other |
(4,461,141 | ) | (3,756,682 | ) | (12,365,795 | ) | (7,789,434 | ) | ||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| Adjusted funds from operations |
$ | 36,375,827 | $ | 31,969,278 | $ | 104,548,237 | $ | 84,835,054 | ||||||||
|
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|
|
|
|
|
|
|
|||||||||
| Per diluted share data: |
||||||||||||||||
| Net income, less participating securities’ share in earnings |
$ | 0.16 | $ | 0.23 | $ | 0.53 | $ | 0.46 | ||||||||
| Depreciation and amortization: |
||||||||||||||||
| Continuing operations |
0.06 | 0.06 | 0.17 | 0.19 | ||||||||||||
| Discontinued operations |
— | — | — | 0.01 | ||||||||||||
| Loss (gain) on sale of real estate |
— | (0.06 | ) | (0.01 | ) | (0.05 | ) | |||||||||
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|
|
|
|
|
|
|
|
|||||||||
| Funds from operations |
$ | 0.22 | $ | 0.23 | $ | 0.69 | $ | 0.61 | ||||||||
| Write-off straight line rent |
— | 0.01 | — | 0.01 | ||||||||||||
| Acquisition costs |
0.03 | 0.01 | 0.04 | 0.03 | ||||||||||||
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|
|
|
|
|
|
|
|||||||||
| Normalized funds from operations |
$ | 0.25 | $ | 0.25 | $ | 0.73 | $ | 0.65 | ||||||||
| Share-based compensation |
0.01 | 0.01 | 0.04 | 0.04 | ||||||||||||
| Debt costs amortization |
— | 0.01 | 0.02 | 0.02 | ||||||||||||
| Additional rent received in advance (B) |
— | — | (0.01 | ) | — | |||||||||||
| Straight-line rent revenue and other |
(0.03 | ) | (0.03 | ) | (0.08 | ) | (0.06 | ) | ||||||||
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|||||||||
| Adjusted funds from operations |
$ | 0.23 | $ | 0.24 | $ | 0.70 | $ | 0.65 | ||||||||
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| (A) | Financials have been restated to reclass the operating results of certain properties sold in 2012 and 2013 to discontinued operations. |
| (B) | 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. |
Investors and analysts following the real estate industry utilize funds from operations, or FFO, as a supplemental performance measure. FFO, reflecting the assumption that real estate asset values rise or fall with market conditions, principally adjusts for the effects of GAAP depreciation and amortization of real estate assets, which assumes that the value of real estate diminishes predictably over time. We compute FFO in accordance with the definition provided by the National Association of Real Estate Investment Trusts, or NAREIT, which represents net income (loss) (computed in accordance with GAAP), excluding gains (losses) on sales of real estate and impairment charges on real estate assets, plus real estate depreciation and amortization and after adjustments for unconsolidated partnerships and joint ventures.
In addition to presenting FFO in accordance with the NAREIT definition, we also disclose normalized FFO, which adjusts FFO for items that relate to unanticipated or non-core events or activities or accounting changes that, if not noted, would make comparison to prior period results and market expectations less meaningful to investors and analysts. We believe that the use of FFO, combined with the required GAAP presentations, improves the understanding of our operating results among investors and the use of normalized FFO makes comparisons of our operating results with prior periods and other companies more meaningful. While FFO and normalized FFO are relevant and widely used supplemental measures of operating and financial performance of REITs, they should not be viewed as a substitute measure of our operating performance since the measures do not reflect either depreciation and amortization costs or the level of capital expenditures and leasing costs necessary to maintain the operating performance of our properties, which can be significant economic costs that could materially impact our results of operations. FFO and normalized FFO should not be considered an alternative to net income (loss) (computed in accordance with GAAP) as indicators of our financial performance or to cash flow from operating activities (computed in accordance with GAAP) as an indicator of our liquidity.
We calculate adjusted funds from operations, or AFFO, by subtracting from or adding to normalized FFO (i) unbilled rent revenue, (ii) non-cash share-based compensation expense, and (iii) amortization of deferred financing costs. AFFO is an operating measurement that we use to analyze our results of operations based on the receipt, rather than the accrual, of our rental revenue and on certain other adjustments. We believe that this is an important measurement because our leases generally have significant contractual escalations of base rents and therefore result in recognition of rental income that is not collected until future periods, and costs that are deferred or are non-cash charges. Our calculation of AFFO may not be comparable to AFFO or similarly titled measures reported by other REITs. AFFO should not be considered as an alternative to net income (calculated pursuant to GAAP) as an indicator of our results of operations or to cash flow from operating activities (calculated pursuant to GAAP) as an indicator of our liquidity.
Exhibit 99.2
Investing In the future of healthcare. THIRD QUARTER 2013 SUPPLEMENTAL INFORMATION
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 Statements of Income 6 Consolidated Balance Sheets 7 Acquisitions and Summary of Development Projects 8 Detail of Other Assets 9 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, Managing Director—Capital Markets 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
MEDICAL PROPERTIES TRUST, INC. AND SUBSIDIARIES
Reconciliation of Net Income to Funds From Operations
(Unaudited)
| For the Three Months Ended | For the Nine Months Ended | |||||||||||||||
| September 30, 2013 | September 30, 2012 | September 30, 2013 | September 30, 2012 | |||||||||||||
| (A) | (A) | |||||||||||||||
| FFO information: |
||||||||||||||||
| Net income attributable to MPT common stockholders |
$ | 25,648,052 | $ | 31,463,596 | $ | 79,152,370 | $ | 61,343,735 | ||||||||
| Participating securities’ share in earnings |
(166,066 | ) | (224,867 | ) | (538,391 | ) | (714,901 | ) | ||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| Net income, less participating securities’ share in earnings |
$ | 25,481,986 | $ | 31,238,729 | $ | 78,613,979 | $ | 60,628,834 | ||||||||
| Depreciation and amortization: |
||||||||||||||||
| Continuing operations |
8,789,048 | 8,308,006 | 26,050,645 | 24,826,225 | ||||||||||||
| Discontinued operations |
— | 494,026 | 103,197 | 1,586,869 | ||||||||||||
| Loss (gain) on sale of real estate |
— | (8,725,735 | ) | (2,054,229 | ) | (7,280,180 | ) | |||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| Funds from operations |
$ | 34,271,034 | $ | 31,315,026 | $ | 102,713,592 | $ | 79,761,748 | ||||||||
| Write-off straight line rent |
— | 1,639,839 | — | 1,639,839 | ||||||||||||
| Acquisition costs |
4,178,765 | 410,426 | 6,457,217 | 4,114,696 | ||||||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| Normalized funds from operations |
$ | 38,449,799 | $ | 33,365,291 | $ | 109,170,809 | $ | 85,516,283 | ||||||||
| Share-based compensation |
1,815,195 | 1,793,476 | 6,019,100 | 5,430,185 | ||||||||||||
| Debt costs amortization |
871,974 | 867,193 | 2,624,123 | 2,578,020 | ||||||||||||
| Additional rent received in advance (B) |
(300,000 | ) | (300,000 | ) | (900,000 | ) | (900,000 | ) | ||||||||
| Straight-line rent revenue and other |
(4,461,141 | ) | (3,756,682 | ) | (12,365,795 | ) | (7,789,434 | ) | ||||||||
|
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|
|
|
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|
|
|||||||||
| Adjusted funds from operations |
$ | 36,375,827 | $ | 31,969,278 | $ | 104,548,237 | $ | 84,835,054 | ||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| Per diluted share data: |
||||||||||||||||
| Net income, less participating securities’ share in earnings |
$ | 0.16 | $ | 0.23 | $ | 0.53 | $ | 0.46 | ||||||||
| Depreciation and amortization: |
||||||||||||||||
| Continuing operations |
0.06 | 0.06 | 0.17 | 0.19 | ||||||||||||
| Discontinued operations |
— | — | — | 0.01 | ||||||||||||
| Loss (gain) on sale of real estate |
— | (0.06 | ) | (0.01 | ) | (0.05 | ) | |||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| Funds from operations |
$ | 0.22 | $ | 0.23 | $ | 0.69 | $ | 0.61 | ||||||||
| Write-off straight line rent |
— | 0.01 | — | 0.01 | ||||||||||||
| Acquisition costs |
0.03 | 0.01 | 0.04 | 0.03 | ||||||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| Normalized funds from operations |
$ | 0.25 | $ | 0.25 | $ | 0.73 | $ | 0.65 | ||||||||
| Share-based compensation |
0.01 | 0.01 | 0.04 | 0.04 | ||||||||||||
| Debt costs amortization |
— | 0.01 | 0.02 | 0.02 | ||||||||||||
| Additional rent received in advance (B) |
— | — | (0.01 | ) | — | |||||||||||
| Straight-line rent revenue and other |
(0.03 | ) | (0.03 | ) | (0.08 | ) | (0.06 | ) | ||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| Adjusted funds from operations |
$ | 0.23 | $ | 0.24 | $ | 0.70 | $ | 0.65 | ||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| (A) | Financials have been restated to reclass the operating results of certain properties sold in 2012 and 2013 to discontinued operations. |
| (B) | 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.
Investors and analysts following the real estate industry utilize funds from operations, or FFO, as a supplemental performance measure. FFO, reflecting the assumption that real estate asset values rise or fall with market conditions, principally adjusts for the effects of GAAP depreciation and amortization of real estate assets, which assumes that the value of real estate diminishes predictably over time. We compute FFO in accordance with the definition provided by the National Association of Real Estate Investment Trusts, or NAREIT, which represents net income (loss) (computed in accordance with GAAP), excluding gains (losses) on sales of real estate and impairment charges on real estate assets, plus real estate depreciation and amortization and after adjustments for unconsolidated partnerships and joint ventures.
In addition to presenting FFO in accordance with the NAREIT definition, we also disclose normalized FFO,which adjusts FFO for items that relate to unanticipated or non-core events or activities or accounting changes that, if not noted, would make comparison to prior period results and market expectations less meaningful to investors and analysts. We believe that the use of FFO, combined with the required GAAP presentations, improves the understanding of our operating results among investors and the use of normalized FFO makes comparisons of our operating results with prior periods and other companies more meaningful. While FFO and normalized FFO are relevant and widely used supplemental measures of operating and financial performance of REITs, they should not be viewed as a substitute measure of our operating performance since the measures do not reflect either depreciation and amortization costs or the level of capital expenditures and leasing costs necessary to maintain the operating performance of our properties, which can be significant economic costs that could materially impact our results of operations. FFO and normalized FFO should not be considered an alternative to net income (loss) (computed in accordance with GAAP) as indicators of our financial performance or to cash flow from operating activities (computed in accordance with GAAP) as an indicator of our liquidity.
We calculate adjusted funds from operations, or AFFO, by subtracting from or adding to normalized FFO (i) unbilled rent revenue, (ii) non-cash share-based compensation expense, and (iii) amortization of deferred financing costs. AFFO is an operating measurement that we use to analyze our results of operations based on the receipt, rather than the accrual, of our rental revenue and on certain other adjustments. We believe that this is an important measurement because our leases generally have significant contractual escalations of base rents and therefore result in recognition of rental income that is not collected until future periods, and costs that are deferred or are non-cash charges. Our calculation of AFFO may not be comparable to AFFO or similarly titled measures reported by other REITs. AFFO should not be considered as an alternative to net income (calculated pursuant to GAAP) as an indicator of our results of operations or to cash flow from operating activities (calculated pursuant to GAAP) as an indicator of our liquidity.
| 2 |
|
INVESTMENT AND REVENUE BY ASSET TYPE, OPERATOR AND BY STATE
Investments and Revenue by Asset Type - As of September 30, 2013
| Total Assets |
Percentage of Gross Assets |
Total Revenue |
Percentage of Total Revenue |
|||||||||||||||||
| General Acute Care Hospitals |
A | $ | 1,629,627,084 | 60.1 | % | $ | 102,572,777 | 58.3 | % | |||||||||||
| Long-Term Acute Care Hospitals |
470,544,700 | 17.3 | % | 40,237,151 | 22.9 | % | ||||||||||||||
| Rehabilitation Hospitals |
424,041,806 | 15.6 | % | 31,844,399 | 18.1 | % | ||||||||||||||
| Wellness Centers |
15,624,817 | 0.6 | % | 1,246,016 | 0.7 | % | ||||||||||||||
| Other assets |
173,977,638 | 6.4 | % | — | — | |||||||||||||||
|
|
|
|
|
|
|
|
|
|||||||||||||
| Total gross assets |
2,713,816,045 | 100.0 | % | |||||||||||||||||
| Accumulated depreciation and amortization |
(150,666,149 | ) | ||||||||||||||||||
|
|
|
|||||||||||||||||||
| Total |
$ | 2,563,149,896 | $ | 175,900,343 | 100.0 | % | ||||||||||||||
|
|
|
|
|
|
|
|||||||||||||||
Investments and Revenue by Operator - As of September 30, 2013
| Total Assets |
Percentage of Gross Assets |
Total Revenue |
Percentage of Total Revenue |
|||||||||||||
| Prime Healthcare |
$ | 684,302,858 | 25.2 | % | $ | 56,993,444 | 32.4 | % | ||||||||
| Ernest Health, Inc. |
464,141,872 | 17.1 | % | 35,990,375 | 20.4 | % | ||||||||||
| IASIS Healthcare |
347,609,453 | 12.8 | % | 5,238,256 | 3.0 | % | ||||||||||
| IJKG/HUMC |
126,401,831 | 4.7 | % | 12,213,208 | 6.9 | % | ||||||||||
| Vibra Healthcare |
85,697,606 | 3.2 | % | 8,188,094 | 4.7 | % | ||||||||||
| 20 other operators |
831,684,787 | 30.6 | % | 57,276,966 | 32.6 | % | ||||||||||
| Other assets |
173,977,638 | 6.4 | % | — | — | |||||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| Total gross assets |
2,713,816,045 | 100.0 | % | |||||||||||||
| Accumulated depreciation and amortization |
(150,666,149 | ) | ||||||||||||||
|
|
|
|||||||||||||||
| Total |
$ | 2,563,149,896 | $ | 175,900,343 | 100.0 | % | ||||||||||
|
|
|
|
|
|
|
|||||||||||
Investment and Revenue by State - As of September 30, 2013
| Total Assets | Percentage of Gross Assets |
Total Revenue | Percentage of Total Revenue |
|||||||||||||
| Texas |
$ | 640,402,390 | 23.6 | % | $ | 42,377,371 | 24.1 | % | ||||||||
| California |
522,826,939 | 19.2 | % | 47,032,309 | 26.7 | % | ||||||||||
| Arizona |
200,844,185 | 7.4 | % | 7,601,263 | 4.3 | % | ||||||||||
| Louisiana |
138,211,048 | 5.1 | % | 4,508,295 | 2.6 | % | ||||||||||
| New Jersey |
126,401,831 | 4.7 | % | 12,213,208 | 6.9 | % | ||||||||||
| 20 other states |
911,152,014 | 33.6 | % | 62,167,897 | 35.4 | % | ||||||||||
| Other assets |
173,977,638 | 6.4 | % | — | — | |||||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| Total gross assets |
2,713,816,045 | 100.0 | % | |||||||||||||
| Accumulated depreciation and amortization |
(150,666,149 | ) | ||||||||||||||
|
|
|
|||||||||||||||
| Total |
$ | 2,563,149,896 | $ | 175,900,343 | 100.0 | % | ||||||||||
|
|
|
|
|
|
|
|||||||||||
A Includes two medical office buildings
| 3 |
|
LEASE MATURITY SCHEDULE - AS OF SEPTEMBER 30, 2013
| Total portfolio (1) |
Total leases | Base rent (2) | Percent of total base rent |
|||||||||
| 2013 |
— | $ | — | — | ||||||||
| 2014 |
1 | 2,122,415 | 1.1 | % | ||||||||
| 2015 |
2 | 4,155,412 | 2.2 | % | ||||||||
| 2016 |
1 | 2,250,000 | 1.2 | % | ||||||||
| 2017 |
— | — | — | |||||||||
| 2018 |
1 | 1,958,100 | 1.0 | % | ||||||||
| 2019 |
8 | 6,525,198 | 3.5 | % | ||||||||
| 2020 |
1 | 1,039,728 | 0.6 | % | ||||||||
| 2021 |
4 | 12,799,716 | 6.8 | % | ||||||||
| 2022 |
12 | 38,548,776 | 20.6 | % | ||||||||
| 2023 |
3 | 9,152,292 | 4.9 | % | ||||||||
| 2024 |
1 | 2,453,856 | 1.3 | % | ||||||||
| 2025 |
4 | 11,228,224 | 6.0 | % | ||||||||
| Thereafter |
38 | 95,152,114 | 50.8 | % | ||||||||
|
|
|
|
|
|
|
|||||||
| 76 | $ | 187,385,831 | 100.0 | % | ||||||||
|
|
|
|
|
|
|
|||||||
| (1) | Excludes 6 of our properties that are under development. |
Also, lease expiration is based on the fixed term of the lease and does not factor in potential renewal options provided for in our leases.
| (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). |
| 4 |
|
DEBT SUMMARY AS OF SEPTEMBER 30, 2013
| Instrument |
Rate Type | Rate | Balance | 2013 | 2014 | 2015 | 2016 | 2017 | Thereafter | |||||||||||||||||||||||||
| 6.875% Notes Due 2021 |
Fixed | 6.88 | % | $ | 450,000,000 | $ | — | $ | — | $ | — | $ | — | $ | — | $ | 450,000,000 | |||||||||||||||||
| 6.375% Notes Due 2022 |
Fixed | 6.38 | % | 350,000,000 | — | — | — | — | — | 350,000,000 | ||||||||||||||||||||||||
| 2015 Credit Facility Revolver |
Variable | 3.03 | % (1) | 45,000,000 | — | — | 45,000,000 | — | — | — | ||||||||||||||||||||||||
| 2016 Term Loan |
Variable | 2.44 | % | 100,000,000 | — | — | — | 100,000,000 | — | — | ||||||||||||||||||||||||
| 2016 Unsecured Notes |
Fixed | 5.59 | % (2) | 125,000,000 | — | — | — | 125,000,000 | — | — | ||||||||||||||||||||||||
| Northland - Mortgage Capital Term Loan |
Fixed | 6.20 | % | 14,012,504 | 64,405 | 265,521 | 282,701 | 298,582 | 320,312 | 12,780,983 | ||||||||||||||||||||||||
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|
|
|
|||||||||||||||||||||
| $ | 1,084,012,504 | $ | 64,405 | $ | 265,521 | $ | 45,282,701 | $ | 225,298,582 | $ | 320,312 | $ | 812,780,983 | |||||||||||||||||||||
|
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|
|
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|
|
|
|||||||||||||||||||||
| Debt Premium |
|
2,960,143 | ||||||||||||||||||||||||||||||||
|
|
|
|||||||||||||||||||||||||||||||||
| $ | 1,086,972,647 | |||||||||||||||||||||||||||||||||
|
|
|
|||||||||||||||||||||||||||||||||
| (1) | Represents a $400 million unsecured revolving credit facility with spreads over LIBOR ranging from 2.60% to 3.40%. |
| (2) | Represents the weighted-average rate for four traunches of the Notes at September 30, 2013 factoring in interest rate swaps in effect at that time. |
The Company has entered into two swap agreements which began in July and October 2011. Effective July 31, 2011, the Company is paying 5.507% on $65 million of the Notes and effective October 31, 2011, the Company is paying 5.675% on $60 million of Notes.
| 5 |
|
MEDICAL PROPERTIES TRUST, INC. AND SUBSIDIARIES
Consolidated Statements of Income
(Unaudited)
| For the Three Months Ended | For the Nine Months Ended | |||||||||||||||
| September 30, 2013 | September 30, 2012 | September 30, 2013 | September 30, 2012 | |||||||||||||
| (A) | (A) | |||||||||||||||
| Revenues |
||||||||||||||||
| Rent billed |
$ | 31,877,115 | $ | 30,297,697 | $ | 95,073,326 | $ | 90,680,685 | ||||||||
| Straight-line rent |
2,853,240 | 2,745,298 | 8,260,267 | 5,428,798 | ||||||||||||
| Income from direct financing leases |
11,297,974 | 5,773,138 | 29,284,432 | 12,979,142 | ||||||||||||
| Interest and fee income |
14,427,392 | 14,037,030 | 43,282,318 | 33,485,603 | ||||||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| Total revenues |
60,455,721 | 52,853,163 | 175,900,343 | 142,574,228 | ||||||||||||
| Expenses |
||||||||||||||||
| Real estate depreciation and amortization |
8,789,048 | 8,308,006 | 26,050,645 | 24,826,225 | ||||||||||||
| Property-related |
458,253 | 214,478 | 1,520,384 | 1,027,609 | ||||||||||||
| Acquisition expenses |
4,178,765 | 410,426 | 6,457,217 | 4,114,696 | ||||||||||||
| General and administrative |
6,379,604 | 7,052,618 | 21,423,170 | 21,341,288 | ||||||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| Total operating expenses |
19,805,670 | 15,985,528 | 55,451,416 | 51,309,818 | ||||||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| Operating income |
40,650,051 | 36,867,635 | 120,448,927 | 91,264,410 | ||||||||||||
| Interest and other income (expense) |
(14,984,097 | ) | (14,004,022 | ) | (43,629,496 | ) | (40,840,864 | ) | ||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| Income from continuing operations |
25,665,954 | 22,863,613 | 76,819,431 | 50,423,546 | ||||||||||||
| Income from discontinued operations |
37,100 | 8,643,283 | 2,498,156 | 11,050,011 | ||||||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| Net income |
25,703,054 | 31,506,896 | 79,317,587 | 61,473,557 | ||||||||||||
| Net income attributable to non-controlling interests |
(55,002 | ) | (43,300 | ) | (165,217 | ) | (129,822 | ) | ||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| Net income attributable to MPT common stockholders |
$ | 25,648,052 | $ | 31,463,596 | $ | 79,152,370 | $ | 61,343,735 | ||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| Earnings per common share - basic: |
||||||||||||||||
| Income from continuing operations |
$ | 0.16 | $ | 0.17 | $ | 0.51 | $ | 0.38 | ||||||||
| Income from discontinued operations |
— | 0.06 | 0.02 | 0.08 | ||||||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| Net income attributable to MPT common stockholders |
$ | 0.16 | $ | 0.23 | $ | 0.53 | $ | 0.46 | ||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| Earnings per common share - diluted: |
||||||||||||||||
| Income from continuing operations |
$ | 0.16 | $ | 0.17 | $ | 0.51 | $ | 0.38 | ||||||||
| Income from discontinued operations |
— | 0.06 | 0.02 | 0.08 | ||||||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| Net income attributable to MPT common stockholders |
$ | 0.16 | $ | 0.23 | $ | 0.53 | $ | 0.46 | ||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| Dividends declared per common share |
$ | 0.20 | $ | 0.20 | $ | 0.60 | $ | 0.60 | ||||||||
| Weighted average shares outstanding - basic |
154,757,902 | 134,780,992 | 148,204,479 | 131,467,285 | ||||||||||||
| Weighted average shares outstanding - diluted |
155,968,954 | 134,781,577 | 149,517,040 | 131,467,480 | ||||||||||||
| (A) | Financials have been restated to reclass the operating results of certain properties sold in 2012 and 2013 to discontinued operations. |
| 6 |
|
MEDICAL PROPERTIES TRUST, INC. AND SUBSIDIARIES
Consolidated Balance Sheets
| September 30, 2013 | December 31, 2012 | |||||||
| (Unaudited) | (A) | |||||||
| Assets |
||||||||
| Real estate assets |
||||||||
| Land, buildings and improvements, and intangible lease assets |
$ | 1,564,797,564 | $ | 1,223,760,599 | ||||
| Construction in progress and other |
41,633,350 | 38,338,985 | ||||||
| Real estate held for sale |
— | 16,497,248 | ||||||
| Net investment in direct financing leases |
403,512,336 | 314,411,549 | ||||||
| Mortgage loans |
368,650,000 | 368,650,000 | ||||||
|
|
|
|
|
|||||
| Gross investment in real estate assets |
2,378,593,250 | 1,961,658,381 | ||||||
| Accumulated depreciation and amortization |
(150,666,149 | ) | (124,615,504 | ) | ||||
|
|
|
|
|
|||||
| Net investment in real estate assets |
2,227,927,101 | 1,837,042,877 | ||||||
| Cash and cash equivalents |
12,124,194 | 37,311,207 | ||||||
| Interest and rent receivable |
54,505,451 | 45,288,845 | ||||||
| Straight-line rent receivable |
44,240,282 | 35,859,703 | ||||||
| Other assets |
224,352,868 | 223,383,020 | ||||||
|
|
|
|
|
|||||
| Total Assets |
$ | 2,563,149,896 | $ | 2,178,885,652 | ||||
|
|
|
|
|
|||||
| Liabilities and Equity |
||||||||
| Liabilities |
||||||||
| Debt, net |
$ | 1,086,972,647 | $ | 1,025,159,854 | ||||
| Accounts payable and accrued expenses |
73,852,217 | 65,960,792 | ||||||
| Deferred revenue |
23,228,722 | 20,609,467 | ||||||
| Lease deposits and other obligations to tenants |
20,527,213 | 17,341,694 | ||||||
|
|
|
|
|
|||||
| Total liabilities |
1,204,580,799 | 1,129,071,807 | ||||||
| Equity |
||||||||
| Preferred stock, $0.001 par value. Authorized 10,000,000 shares; no shares outstanding |
— | — | ||||||
| Common stock, $0.001 par value. Authorized 250,000,000 shares; issued and outstanding - 160,880,162 shares at September 30, 2013 and 136,335,427 shares at December 31, 2012 |
160,880 | 136,336 | ||||||
| Additional paid in capital |
1,615,229,624 | 1,295,916,192 | ||||||
| Distributions in excess of net income |
(246,865,083 | ) | (233,494,130 | ) | ||||
| Accumulated other comprehensive income (loss) |
(9,693,981 | ) | (12,482,210 | ) | ||||
| Treasury shares, at cost |
(262,343 | ) | (262,343 | ) | ||||
|
|
|
|
|
|||||
| Total Medical Properties Trust, Inc. stockholders’ equity |
1,358,569,097 | 1,049,813,845 | ||||||
|
|
|
|
|
|||||
| Total Liabilities and Equity |
$ | 2,563,149,896 | $ | 2,178,885,652 | ||||
|
|
|
|
|
|||||
| (A) | Financials have been derived from the prior year audited financials adjusted for discontinued operations. |
| 7 |
|
ACQUISITIONS FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2013
| Investment / | ||||||||||
| Name |
Location |
Property Type |
Acquisition / Development |
Commitment | ||||||
| Ernest Health, Inc. |
Post Falls, ID |
Inpatient Rehabilitation Hospital |
Development |
$ | 14,387,000 | |||||
| Ernest Health, Inc. |
South Ogden, UT |
Inpatient Rehabilitation Hospital |
Development |
19,153,000 | ||||||
| Prime Healthcare |
Kansas City, KS |
Acute Care Hospital |
Acquisition |
60,000,000 | ||||||
| Prime Healthcare |
Leavenworth, KS |
Acute Care Hospital |
Acquisition |
15,000,000 | ||||||
| IASIS Healthcare, LLC |
Port Arthur, TX |
Acute Care Hospital |
Acquisition |
81,934,040 | ||||||
| IASIS Healthcare, LLC |
Mesa, AZ |
Acute Care Hospital |
Acquisition |
112,047,210 | ||||||
| IASIS Healthcare, LLC |
West Monroe, LA |
Acute Care Hospital |
Acquisition |
87,268,750 | ||||||
| Ernest Health, Inc. |
Corpus Christi, TX |
Inpatient Rehabilitation Hospital |
Acquisition |
15,830,000 | ||||||
|
|
|
|||||||||
| Total Investments / Commitments |
$ | 405,620,000 | ||||||||
|
|
|
|||||||||
SUMMARY OF DEVELOPMENT PROJECTS AS OF SEPTEMBER 30, 2013
| Property |
Location |
Property Type |
Operator |
Commitment | Costs Incurred as of 9/30/13 |
Percent Leased |
Estimated Completion Date |
|||||||||||||||
| Victoria Rehabilitation Hospital |
Victoria, TX |
Inpatient Rehabilitation Hospital |
Post Acute Medical |
$ | 9,400,000 | $ | 8,390,986 | 100 | % | 4Q 2013 | ||||||||||||
| Rehabilitation Hospital of the Northwest |
Post Falls, ID |
Inpatient Rehabilitation Hospital |
Ernest Health, Inc. |
14,387,000 | 10,388,593 | 100 | % | 4Q 2013 | ||||||||||||||
| First Choice ER- Little Elm |
Dallas, TX |
General Acute Care Hospital |
First Choice ER, LLC |
5,200,000 | 2,792,174 | 100 | % | 4Q 2013 | ||||||||||||||
| First Choice ER- Brodie |
Austin, TX |
General Acute Care Hospital |
First Choice ER, LLC |
5,470,000 | 1,509,321 | 100 | % | 1Q 2014 | ||||||||||||||
| Oakleaf Surgical Hospital |
Altoona, WI |
General Acute Care Hospital |
National Surgical Hospitals |
33,500,000 | 11,146,337 | 100 | % | 3Q 2014 | ||||||||||||||
| First Choice Emergency Rooms |
Various |
General Acute Care Hospital |
First Choice |
89,330,000 | — | 100 | % | Various | ||||||||||||||
| Northern Utah Rehabilitation Hospital |
South Ogden, UT |
Inpatient Rehabilitation Hospital |
Ernest Health, Inc. |
19,153,000 | 7,405,939 | 100 | % | 3Q 2014 | ||||||||||||||
|
|
|
|
|
|||||||||||||||||||
| $ | 176,440,000 | $ | 41,633,350 | |||||||||||||||||||
|
|
|
|
|
|||||||||||||||||||
| 8 |
|
DETAIL OF OTHER ASSETS AS OF SEPTEMBER 30, 2013
| YTD | ||||||||||||||
| Annual | Ridea Income | |||||||||||||
| Operator |
Investment | Interest Rate | (4) | Security / Credit Enhancements | ||||||||||
| Non-Operating Loans |
||||||||||||||
| Vibra Healthcare acquisition loan (1) |
$ | 13,107,070 | 10.25 | % | Secured and cross-defaulted with real estate, other agreements and guaranteed by Parent | |||||||||
| Vibra Healthcare working capital |
5,347,336 | 9.63 | % | Secured and cross-defaulted with real estate, other agreements and guaranteed by Parent | ||||||||||
| Post Acute Medical working capital |
7,718,857 | 10.86 | % | Secured and cross-defaulted with real estate; certain loans are cross-defaulted with other loans and real estate | ||||||||||
| Monroe Hospital (2) |
18,141,163 | |||||||||||||
| IKJG/HUMC working capital |
15,050,000 | 10.4 | % | Secured and cross-defaulted with real estate and guaranteed by Parent | ||||||||||
| Ernest |
5,083,333 | 9.2 | % | Secured and cross-defaulted with real estate and guaranteed by Parent | ||||||||||
| Other |
245,567 | |||||||||||||
|
|
|
|||||||||||||
| 64,693,326 | ||||||||||||||
| Operating Loans |
||||||||||||||
| Ernest Health, Inc. (3) |
93,200,000 | 15.00 | % | 10,485,000 | Secured and cross-defaulted with real estate and guaranteed by Parent | |||||||||
| IKJG/HUMC convertible loan |
3,351,831 | 879,887 | Secured and cross-defaulted with real estate and guaranteed by Parent | |||||||||||
|
|
|
|
|
|||||||||||
| 96,551,831 | 11,364,887 | |||||||||||||
| Equity investments |
12,876,735 | 2,511,309 | ||||||||||||
| Deferred debt financing costs |
22,708,765 | Not applicable | ||||||||||||
| Lease and cash collateral |
4,692,525 | Not applicable | ||||||||||||
| Other assets (5) |
22,829,686 | Not applicable | ||||||||||||
|
|
|
|
|
|||||||||||
| Total |
$ | 224,352,868 | $ | 13,876,196 | ||||||||||
|
|
|
|
|
|||||||||||
| (1) | Original amortizing acquisition loan was $41 million; loan matures in 2019 |
| (2) | Ceased accruing interest in 2010; net of $12.0 million reserve. |
| (3) | Cash rate is 7% in 2013 and increases to 10% in 2014. |
| (4) | Income earned on operating loans is reflected in the interest income line of the income statement. |
| (5) | Includes prepaid expenses, office property and equipment and other. |
| 9 |
|
Medical Properties Trust Medical Properties Trust, Inc. 1000 Urban Center Drive, Suite 501 Birmingham, AL 35242 (205) 969-3755 www.medicalpropertiestrust.com Contact: Charles Lambert, Managing Director - Capital Markets (205) 397-8897 or clambert@medicalpropertiestrust.com