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): February 12, 2015
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 Rule425 under the Securities Act (17 CFR 230.425) |
| ¨ | Soliciting material pursuant to Rule14a-12 under the Exchange Act (17 CFR 240.14a-12) |
| ¨ | Pre-commencement communications pursuant to Rule14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) |
| ¨ | 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 February 12, 2015, Medical Properties Trust, Inc. issued a press release announcing its financial results for the quarter and year ended December 31, 2014. 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 quarter and year ended December 31, 2014: 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 $14.9 million, or $0.08 per diluted share for the quarter ended December 31, 2014 compared to $17.8 million, or $0.11 per diluted share for the quarter ended December 31, 2013. For the year ended December 31, 2014 net income was $50.5 million, or $0.29 per diluted share compared to $97.0 million, or $0.63 per diluted share for the year ended December 31, 2013. In the attached press release, the Company disclosed Funds from operations of $26.2 million and $106.7 million for the quarter and year ended December 31, 2014, respectively, and Normalized funds from operations of $48.0 million and $181.7 million for quarter and year ended December 31, 2014, respectively. Adjusted funds from operations were disclosed in the press release as $45.1million and $171.1 million for the quarter and year ended December 31, 2014, 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 Number |
Description | |
| 99.1 | Press release dated February 12, 2015 reporting financial results for the quarter and year ended December 31, 2014 | |
| 99.2 | Medical Properties Trust, Inc. 4th Quarter 2014 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 and Chief Financial Officer (Principal Financial and Accounting Officer) | ||
Date: February 12, 2015
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INDEX TO EXHIBITS
| Exhibit Number | Description | |
| 99.1 | Press release dated February 12, 2015 reporting financial results for the quarter and year ended December 31, 2014 | |
| 99.2 | Medical Properties Trust, Inc. 4th Quarter 2014 Supplemental Information | |
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Exhibit 99.1
| Contact: Tim Berryman Director – Investor Relations Medical Properties Trust, Inc. (205) 397-8589 tberryman@medicalpropertiestrust.com |
MEDICAL PROPERTIES TRUST, INC. GROWS FOURTH QUARTER NORMALIZED FFO BY 17% YEAR-OVER-YEAR TO $0.28 PER SHARE
GROWS REVENUE AND TOTAL ASSETS 29% FOR FULL YEAR 2014
Birmingham, AL – February 12, 2015 – Medical Properties Trust, Inc. (the “Company” or “MPT”) (NYSE: MPW) today announced financial and operating results for the fourth quarter ended December 31, 2014.
FOURTH QUARTER AND RECENT HIGHLIGHTS
| • | Normalized Funds from Operations (“FFO”) per diluted share was $0.28 in the fourth quarter, up 17% compared with $0.24 per diluted share in the fourth quarter of 2013; |
| • | 2014 Normalized FFO per diluted share grew 10% to $1.06 compared with 2013; |
| • | Acquisitions committed to or completed in 2014 totaled approximately $1.4 billion compared with approximately $700 million in 2013 and $800 million in 2012; |
| • | Completed the acquisition, with Waterland Private Equity, of MEDIAN Kliniken Group, and initiated the purchase and leaseback process of its 40 rehabilitation and acute care hospitals; |
| • | Received an upgrade on the Company’s Senior Notes to the investment grade rating of BBB- from BB from Standard & Poor’s Rating Services and an upgrade to the corporate credit rating to BB+ with a stable outlook from BB; |
| • | Issued 34.5 million shares of common stock in early January at a public offering price of $14.50 for net proceeds of approximately $480 million. |
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 Adjusted Funds from Operations (“AFFO”), all on a basis comparable to 2013 periods.
1
“This was a monumental year for MPT as we eclipsed the billion dollar mark in acquisitions for the first time in our 10-year history and strategically expanded and further diversified our portfolio with our investments in Germany,” said Edward K. Aldag, Jr., Chairman, President and CEO of Medical Properties Trust. “MPT is among the top five U.S. for-profit owners of hospital beds and the successful completion of nearly $1.4 billion in acquisitions was a tremendous accomplishment by our organization. We will continue to leverage our hospital expertise to achieve future growth in the U.S. and Western Europe.”
OPERATING RESULTS
Normalized FFO for the fourth quarter of 2014 increased 26% to $48.0 million compared with $38.1 million in the fourth quarter of 2013. Per share Normalized FFO increased 17% to $0.28 per diluted share in the fourth quarter of 2014 compared with $0.24 per diluted share in the fourth quarter of 2013.
For the twelve months ended December 31, 2014, Normalized FFO increased 23% to $181.7 million from $147.2 million in 2013. On a per diluted share basis, Normalized FFO increased 10% in 2014 to $1.06 per diluted share from $0.96 per diluted share in 2013.
Fourth quarter 2014 total revenues increased 21% to $82.1 million compared with $67.7 million for the fourth quarter of 2013. Revenue for the twelve months ended December 31, 2014 increased 29% to $312.5 million from $242.5 million in 2013.
Net income for the fourth quarter of 2014 was $14.9 million (or $0.08 per diluted share) down from net income of $17.8 million (or $0.11 per diluted share) in the fourth quarter of 2013 primarily due to acquisition expenses related to the Median acquisition. Net income for the twelve months ended December 31, 2014 was $50.5 million (or $0.29 per diluted share) compared with net income of $97.0 million (or $0.63 per diluted share) in 2013. Net income in 2014 includes previously disclosed impairments of $50.1 million, a negative impact of $0.30 per diluted share, related to Monroe Hospital in Bloomington, Indiana and Bucks County Hospital in Pennsylvania along with higher acquisition expenses.
PORTFOLIO UPDATE AND OUTLOOK
As of December 31, 2014, the Company had total real estate and related investments of approximately $3.6 billion consisting of 132 properties in 27 states and in Germany and the United Kingdom. The properties are leased to or mortgaged by 27 hospital operating companies. Including completion of development commitments and the pending MEDIAN acquisitions, the Company projects total real estate and related investments of approximately $4.1 billion comprising more than 172 healthcare properties.
Based solely on the completed acquisitions, development commitments, and pending MEDIAN transactions, per share Normalized FFO is expected to grow to between approximately $1.21 and $1.27 on an annual run-rate basis. In addition, MPT expects to continue to invest in similarly accretive hospital real estate in 2015, and any impact to FFO is not included in the annual run rate provided herein.
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These estimates do not include the effects, if any, of real estate operating costs, litigation costs, debt refinancing costs, acquisition costs, currency exchange rate movements, interest rate hedging activities, 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 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 Thursday, February 12, 2015 at 11:00 a.m. Eastern Time to present the Company’s financial and operating results for the quarter ended December 31, 2014. The dial-in numbers for the conference call are 866-825-1709 (U.S.) and 617-213-8060 (international); both numbers require passcode 76141494. 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 beginning shortly after the call’s completion through February 26, 2015. Dial-in numbers for the replay are 888-286-8010 and 617-801-6888 for U.S. and International callers, respectively. The replay passcode for both U.S. and international callers is 60979641.
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. MPT’s financing model allows hospitals and other healthcare facilities to unlock the value of their underlying real estate in order to fund facility improvements, technology upgrades, staff additions and new construction. Facilities include acute care hospitals, inpatient rehabilitation hospitals, long-term acute care hospitals, and other medical and surgical 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
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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 satisfaction of all conditions to, and the timely closing (if at all) of the Median sale-leaseback transactions; the Company financing of the transactions described herein; the capacity of Median and the Company’s other 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 payment of future dividends, if any; completion of additional debt arrangement, and additional investments; national and international economic, business, real estate and other market conditions; the competitive environment in which the Company operates; the execution of the 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 Annual Report on Form 10-K for the year ended December 31, 2013, 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
| December 31, 2014 | December 31, 2013 | |||||||
| (Unaudited) | (A) | |||||||
| Assets |
||||||||
| Real estate assets |
||||||||
| Land, buildings and improvements, and intangible lease assets |
$ | 2,149,611,503 | $ | 1,823,683,129 | ||||
| Construction in progress and other |
23,162,924 | 41,771,499 | ||||||
| Net investment in direct financing leases |
439,516,173 | 431,024,228 | ||||||
| Mortgage loans |
397,593,819 | 388,756,469 | ||||||
|
|
|
|
|
|||||
| Gross investment in real estate assets |
3,009,884,419 | 2,685,235,325 | ||||||
| Accumulated depreciation and amortization |
(202,627,286 | ) | (159,776,091 | ) | ||||
|
|
|
|
|
|||||
| Net investment in real estate assets |
2,807,257,133 | 2,525,459,234 | ||||||
| Cash and cash equivalents |
144,541,257 | 45,979,648 | ||||||
| Interest and rent receivable |
41,136,306 | 58,565,294 | ||||||
| Straight-line rent receivable |
59,127,947 | 45,828,685 | ||||||
| Other assets |
695,273,179 | 228,862,582 | ||||||
|
|
|
|
|
|||||
| Total Assets |
$ | 3,747,335,822 | $ | 2,904,695,443 | ||||
|
|
|
|
|
|||||
| Liabilities and Equity |
||||||||
| Liabilities |
||||||||
| Debt, net |
$ | 2,201,654,334 | $ | 1,421,680,749 | ||||
| Accounts payable and accrued expenses |
112,623,187 | 94,289,615 | ||||||
| Deferred revenue |
27,206,612 | 24,114,374 | ||||||
| Lease deposits and other obligations to tenants |
23,804,458 | 20,402,058 | ||||||
|
|
|
|
|
|||||
| Total liabilities |
2,365,288,591 | 1,560,486,796 | ||||||
| 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 — 172,743,348 shares at December 31, 2014 and 161,309,725 shares at December 31, 2013 |
172,743 | 161,310 | ||||||
| Additional paid in capital |
1,765,380,949 | 1,618,054,133 | ||||||
| Distributions in excess of net income |
(361,330,051 | ) | (264,803,804 | ) | ||||
| Accumulated other comprehensive income (loss) |
(21,914,067 | ) | (8,940,649 | ) | ||||
| Treasury shares, at cost |
(262,343 | ) | (262,343 | ) | ||||
|
|
|
|
|
|||||
| Total Equity |
1,382,047,231 | 1,344,208,647 | ||||||
|
|
|
|
|
|||||
| Total Liabilities and Equity |
$ | 3,747,335,822 | $ | 2,904,695,443 | ||||
|
|
|
|
|
|||||
| (A) | Financials have been derived from the prior year audited financials and include certain minor reclasses to be consistent with the 2014 presentation. |
MEDICAL PROPERTIES TRUST, INC. AND SUBSIDIARIES
Consolidated Statements of Income
| For the Three Months Ended | For the Twelve Months Ended | |||||||||||||||
| December 31, 2014 | December 31, 2013 | December 31, 2014 | December 31, 2013 | |||||||||||||
| (unaudited) | (A) | (unaudited) | (A) | |||||||||||||
| Revenues |
||||||||||||||||
| Rent billed |
$ | 50,065,768 | $ | 38,520,039 | $ | 187,018,147 | $ | 132,578,216 | ||||||||
| Straight-line rent |
2,858,620 | 2,474,148 | 13,507,120 | 10,705,792 | ||||||||||||
| Income from direct financing leases |
12,367,929 | 11,545,956 | 49,154,786 | 40,830,388 | ||||||||||||
| Interest and fee income |
16,813,085 | 15,139,342 | 62,851,590 | 58,409,167 | ||||||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| Total revenues |
82,105,402 | 67,679,485 | 312,531,643 | 242,523,563 | ||||||||||||
| Expenses |
||||||||||||||||
| Real estate depreciation and amortization |
14,452,563 | 11,151,338 | 53,937,810 | 36,977,724 | ||||||||||||
| Impairment charges |
— | — | 50,127,895 | — | ||||||||||||
| Property-related |
449,926 | 934,118 | 1,850,659 | 2,450,521 | ||||||||||||
| Acquisition expenses (B) |
18,455,684 | 13,036,440 | 26,388,957 | 19,493,657 | ||||||||||||
| General and administrative |
11,437,880 | 8,901,727 | 37,274,269 | 30,063,409 | ||||||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| Total operating expenses |
44,796,053 | 34,023,623 | 169,579,590 | 88,985,311 | ||||||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| Operating income |
37,309,349 | 33,655,862 | 142,952,053 | 153,538,252 | ||||||||||||
| Interest and other income (expense) |
(22,171,124 | ) | (19,881,506 | ) | (91,813,437 | ) | (63,511,002 | ) | ||||||||
| Income tax (expense) benefit |
(108,407 | ) | (464,219 | ) | (340,368 | ) | (725,707 | ) | ||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| Income from continuing operations |
15,029,818 | 13,310,137 | 50,798,248 | 89,301,543 | ||||||||||||
| Income from discontinued operations |
(320 | ) | 4,587,686 | (1,820 | ) | 7,913,867 | ||||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| Net income |
15,029,498 | 17,897,823 | 50,796,428 | 97,215,410 | ||||||||||||
| Net income attributable to non-controlling interests |
(81,779 | ) | (59,083 | ) | (273,701 | ) | (224,300 | ) | ||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| Net income attributable to MPT common stockholders |
$ | 14,947,719 | $ | 17,838,740 | $ | 50,522,727 | $ | 96,991,110 | ||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| Earnings per common share — basic: |
||||||||||||||||
| Income from continuing operations |
$ | 0.08 | $ | 0.08 | $ | 0.29 | $ | 0.59 | ||||||||
| Income from discontinued operations |
— | 0.03 | — | 0.05 | ||||||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| Net income attributable to MPT common stockholders |
$ | 0.08 | $ | 0.11 | $ | 0.29 | $ | 0.64 | ||||||||
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|
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|
|
|
|
|
|||||||||
| Earnings per common share — diluted: |
||||||||||||||||
| Income from continuing operations |
$ | 0.08 | $ | 0.08 | $ | 0.29 | $ | 0.58 | ||||||||
| Income from discontinued operations |
— | 0.03 | — | 0.05 | ||||||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| Net income attributable to MPT common stockholders |
$ | 0.08 | $ | 0.11 | $ | 0.29 | $ | 0.63 | ||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| Dividends declared per common share |
$ | 0.21 | $ | 0.21 | $ | 0.84 | $ | 0.81 | ||||||||
| Weighted average shares outstanding — basic |
172,411,250 | 161,142,567 | 169,998,971 | 151,439,002 | ||||||||||||
| Weighted average shares outstanding — diluted |
172,603,919 | 161,839,544 | 170,540,178 | 152,597,666 | ||||||||||||
| (A) | Financials have been derived from the prior year audited financials. |
| (B) | Includes $3.9 million and $5.8 million in real estate transfer taxes in the quarter and year ended December 31, 2014, respectively. Includes $12.0 million in real estate transfer taxes in the quarter and year ended December 31, 2013. |
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, 2014 | December 31, 2013 | December 31, 2014 | December 31, 2013 | |||||||||||||
| FFO information: |
||||||||||||||||
| Net income attributable to MPT common stockholders |
$ | 14,947,719 | $ | 17,838,740 | $ | 50,522,727 | $ | 96,991,110 | ||||||||
| Participating securities’ share in earnings |
(310,807 | ) | (190,142 | ) | (894,604 | ) | (728,533 | ) | ||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| Net income, less participating securities’ share in earnings |
$ | 14,636,912 | $ | 17,648,598 | $ | 49,628,123 | $ | 96,262,577 | ||||||||
| Depreciation and amortization: |
||||||||||||||||
| Continuing operations |
14,452,563 | 11,151,338 | 53,937,810 | 36,977,724 | ||||||||||||
| Discontinued operations |
— | 380,966 | — | 708,422 | ||||||||||||
| Gain on sale of real estate |
(2,857,475 | ) | (5,605,087 | ) | (2,857,475 | ) | (7,659,316 | ) | ||||||||
| Real estate impairment charge |
— | — | 5,974,400 | — | ||||||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| Funds from operations |
$ | 26,232,000 | $ | 23,575,815 | $ | 106,682,858 | $ | 126,289,407 | ||||||||
| Write-off straight line rent |
1,867,389 | 1,457,235 | 2,817,727 | 1,457,235 | ||||||||||||
| Acquisition costs |
18,455,684 | 13,036,440 | 26,388,957 | 19,493,657 | ||||||||||||
| Unutilized financings fees / debt refinancing costs |
1,407,385 | — | 1,698,020 | — | ||||||||||||
| Loan and other impairment charges |
— | — | 44,153,495 | — | ||||||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| Normalized funds from operations |
$ | 47,962,458 | $ | 38,069,490 | $ | 181,741,057 | $ | 147,240,299 | ||||||||
| Share-based compensation |
2,515,745 | 2,812,906 | 8,694,224 | 8,832,006 | ||||||||||||
| Debt costs amortization |
1,373,494 | 934,383 | 4,813,880 | 3,558,506 | ||||||||||||
| Additional rent received in advance (A) |
(300,000 | ) | (300,000 | ) | (1,200,000 | ) | (1,200,000 | ) | ||||||||
| Straight-line rent revenue and other |
(6,473,535 | ) | (4,673,544 | ) | (22,985,887 | ) | (17,039,339 | ) | ||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| Adjusted funds from operations |
$ | 45,078,162 | $ | 36,843,235 | $ | 171,063,274 | $ | 141,391,472 | ||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| Per diluted share data: |
||||||||||||||||
| Net income, less participating securities’ share in earnings |
$ | 0.08 | $ | 0.11 | $ | 0.29 | $ | 0.63 | ||||||||
| Depreciation and amortization: |
||||||||||||||||
| Continuing operations |
0.08 | 0.07 | 0.31 | 0.24 | ||||||||||||
| Discontinued operations |
— | — | — | — | ||||||||||||
| Gain on sale of real estate |
(0.01 | ) | (0.03 | ) | (0.01 | ) | (0.04 | ) | ||||||||
| Real estate impairment charge |
— | — | 0.04 | — | ||||||||||||
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|
|
|
|
|
|
|
|
|||||||||
| Funds from operations |
$ | 0.15 | $ | 0.15 | $ | 0.63 | $ | 0.83 | ||||||||
| Write-off straight line rent |
0.01 | 0.01 | 0.02 | 0.01 | ||||||||||||
| Acquisition costs |
0.11 | 0.08 | 0.15 | 0.12 | ||||||||||||
| Unutilized financings fees / debt refinancing costs |
0.01 | — | — | — | ||||||||||||
| Loan and other impairment charges |
— | — | 0.26 | — | ||||||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| Normalized funds from operations |
$ | 0.28 | $ | 0.24 | $ | 1.06 | $ | 0.96 | ||||||||
| Share-based compensation |
0.01 | 0.02 | 0.05 | 0.06 | ||||||||||||
| Debt costs amortization |
0.01 | 0.01 | 0.03 | 0.02 | ||||||||||||
| Additional rent received in advance (A) |
— | (0.01 | ) | — | (0.01 | ) | ||||||||||
| Straight-line rent revenue and other |
(0.04 | ) | (0.03 | ) | (0.14 | ) | (0.10 | ) | ||||||||
|
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|
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|
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|
|||||||||
| Adjusted funds from operations |
$ | 0.26 | $ | 0.23 | $ | 1.00 | $ | 0.93 | ||||||||
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|
|||||||||
| (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. |
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
4Q
FOURTH QUARTER 2014
SUPPLEMENTAL INFORMATION
KLINK HOHENLOHE
Medical Properties Trust MPT
MPT
Table of Contents
Company Information 1
Reconciliation of Net Income to Funds from Operations 2
Investment and Revenue by Asset Type, Operator, Country and 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
Tim Berryman, Director - Investor Relations at (205) 397-8589
United Kingdom Germany
Company Information
Headquarters: Medical Properties Trust, Inc.
1000 Urban Center Drive, Suite
501
Birmingham, AL 35242
(205) 969-3755
Fax: (205) 969-3756
Fontana-Klinik - Bad Liebenwerda, Germany
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
Frank R. Williams, Senior Vice President, Senior Managing Director - Acquisitions
Investor Relations: Medical Properties Trust, Inc.
1000 Urban Center Drive, Suite 501
Birmingham, AL 35242
Attn: Tim Berryman
(205) 397-8589
tberryman@medicalpropertiestrust.com
MPW
LISTED
NYSE
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, 2014 | December 31, 2013 | December 31, 2014 | December 31, 2013 | |||||||||||||
| FFO information: |
||||||||||||||||
| Net income attributable to MPT common stockholders |
$ | 14,947,719 | $ | 17,838,740 | $ | 50,522,727 | $ | 96,991,110 | ||||||||
| Participating securities’ share in earnings |
(310,807 | ) | (190,142 | ) | (894,604 | ) | (728,533 | ) | ||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| Net income, less participating securities’ share in earnings |
$ | 14,636,912 | $ | 17,648,598 | $ | 49,628,123 | $ | 96,262,577 | ||||||||
| Depreciation and amortization: |
||||||||||||||||
| Continuing operations |
14,452,563 | 11,151,338 | 53,937,810 | 36,977,724 | ||||||||||||
| Discontinued operations |
— | 380,966 | — | 708,422 | ||||||||||||
| Gain on sale of real estate |
(2,857,475 | ) | (5,605,087 | ) | (2,857,475 | ) | (7,659,316 | ) | ||||||||
| Real estate impairment charge |
— | — | 5,974,400 | — | ||||||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| Funds from operations |
$ | 26,232,000 | $ | 23,575,815 | $ | 106,682,858 | $ | 126,289,407 | ||||||||
| Write-off straight line rent |
1,867,389 | 1,457,235 | 2,817,727 | 1,457,235 | ||||||||||||
| Acquisition costs |
18,455,684 | 13,036,440 | 26,388,957 | 19,493,657 | ||||||||||||
| Unutilized financings fees / debt refinancing costs |
1,407,385 | — | 1,698,020 | — | ||||||||||||
| Loan and other impairment charges |
— | — | 44,153,495 | — | ||||||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| Normalized funds from operations |
$ | 47,962,458 | $ | 38,069,490 | $ | 181,741,057 | $ | 147,240,299 | ||||||||
| Share-based compensation |
2,515,745 | 2,812,906 | 8,694,224 | 8,832,006 | ||||||||||||
| Debt costs amortization |
1,373,494 | 934,383 | 4,813,880 | 3,558,506 | ||||||||||||
| Additional rent received in advance (A) |
(300,000 | ) | (300,000 | ) | (1,200,000 | ) | (1,200,000 | ) | ||||||||
| Straight-line rent revenue and other |
(6,473,535 | ) | (4,673,544 | ) | (22,985,887 | ) | (17,039,339 | ) | ||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| Adjusted funds from operations |
$ | 45,078,162 | $ | 36,843,235 | $ | 171,063,274 | $ | 141,391,472 | ||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| Per diluted share data: |
||||||||||||||||
| Net income, less participating securities’ share in earnings |
$ | 0.08 | $ | 0.11 | $ | 0.29 | $ | 0.63 | ||||||||
| Depreciation and amortization: |
||||||||||||||||
| Continuing operations |
0.08 | 0.07 | 0.31 | 0.24 | ||||||||||||
| Discontinued operations |
— | — | — | — | ||||||||||||
| Gain on sale of real estate |
(0.01 | ) | (0.03 | ) | (0.01 | ) | (0.04 | ) | ||||||||
| Real estate impairment charge |
— | — | 0.04 | — | ||||||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| Funds from operations |
$ | 0.15 | $ | 0.15 | $ | 0.63 | $ | 0.83 | ||||||||
| Write-off straight line rent |
0.01 | 0.01 | 0.02 | 0.01 | ||||||||||||
| Acquisition costs |
0.11 | 0.08 | 0.15 | 0.12 | ||||||||||||
| Unutilized financings fees / debt refinancing costs |
0.01 | — | — | — | ||||||||||||
| Loan and other impairment charges |
— | — | 0.26 | — | ||||||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| Normalized funds from operations |
$ | 0.28 | $ | 0.24 | $ | 1.06 | $ | 0.96 | ||||||||
| Share-based compensation |
0.01 | 0.02 | 0.05 | 0.06 | ||||||||||||
| Debt costs amortization |
0.01 | 0.01 | 0.03 | 0.02 | ||||||||||||
| Additional rent received in advance (A) |
— | (0.01 | ) | — | (0.01 | ) | ||||||||||
| Straight-line rent revenue and other |
(0.04 | ) | (0.03 | ) | (0.14 | ) | (0.10 | ) | ||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| Adjusted funds from operations |
$ | 0.26 | $ | 0.23 | $ | 1.00 | $ | 0.93 | ||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| (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.
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, COUNTRY AND STATE
Investments and Revenue by Asset Type - As of December 31, 2014
| Total Assets |
Percentage of Gross Assets |
Total Revenue |
Percentage of Total Revenue |
|||||||||||||||||
| General Acute Care Hospitals |
A | $ | 1,934,305,208 | 49.0 | % | $ | 186,399,338 | 59.6 | % | |||||||||||
| Rehabilitation Hospitals |
1,176,357,094 | 29.8 | % | 71,563,582 | 22.9 | % | ||||||||||||||
| Long-Term Acute Care Hospitals |
456,764,411 | 11.5 | % | 53,908,117 | 17.3 | % | ||||||||||||||
| Wellness Centers |
15,624,816 | 0.4 | % | 660,606 | 0.2 | % | ||||||||||||||
| Other assets |
366,911,579 | 9.3 | % | — | — | |||||||||||||||
|
|
|
|
|
|
|
|
|
|||||||||||||
| Total gross assets |
3,949,963,108 | 100.0 | % | |||||||||||||||||
| Accumulated depreciation and amortization |
(202,627,286 | ) | ||||||||||||||||||
|
|
|
|||||||||||||||||||
| Total |
$ | 3,747,335,822 | $ | 312,531,643 | 100.0 | % | ||||||||||||||
|
|
|
|
|
|
|
|||||||||||||||
Investments and Revenue by Operator - As of December 31, 2014
| Total Assets |
Percentage of Gross Assets |
Total Revenue |
Percentage of Total Revenue |
|||||||||||||
| Prime Healthcare |
$ | 749,553,147 | 18.9 | % | $ | 84,038,074 | 26.9 | % | ||||||||
| Ernest Health, Inc. |
486,757,666 | 12.3 | % | 57,315,045 | 18.3 | % | ||||||||||
| Median |
422,453,196 | 10.7 | % | 1,569,349 | 0.5 | % | ||||||||||
| IASIS Healthcare |
347,611,962 | 8.8 | % | 27,351,093 | 8.8 | % | ||||||||||
| RHM |
284,983,512 | 7.2 | % | 22,093,195 | 7.1 | % | ||||||||||
| 22 operators |
1,291,692,046 | 32.8 | % | 120,164,887 | 38.4 | % | ||||||||||
| Other assets |
366,911,579 | 9.3 | % | — | — | |||||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| Total gross assets |
3,949,963,108 | 100.0 | % | |||||||||||||
| Accumulated depreciation and amortization |
(202,627,286 | ) | ||||||||||||||
|
|
|
|||||||||||||||
| Total |
$ | 3,747,335,822 | $ | 312,531,643 | 100.0 | % | ||||||||||
|
|
|
|
|
|
|
|||||||||||
Investment and Revenue by Country and State - As of December 31, 2014
| Total Assets |
Percentage of Gross Assets |
Total Revenue |
Percentage of Total Revenue |
|||||||||||||
| United States |
||||||||||||||||
| Texas |
$ | 776,016,942 | 19.6 | % | $ | 74,044,195 | 23.7 | % | ||||||||
| California |
547,098,066 | 13.9 | % | 64,267,558 | 20.5 | % | ||||||||||
| New Jersey |
238,140,898 | 6.1 | % | 15,595,887 | 5.0 | % | ||||||||||
| Arizona |
201,738,969 | 5.1 | % | 9,344,827 | 3.0 | % | ||||||||||
| Louisiana |
132,133,693 | 3.3 | % | 21,544,969 | 6.9 | % | ||||||||||
| 22 other states |
936,481,227 | 23.7 | % | 101,749,805 | 32.6 | % | ||||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| United States Total |
2,831,609,795 | 71.7 | % | 286,547,241 | 91.7 | % | ||||||||||
| International |
||||||||||||||||
| U.K. |
44,005,026 | 1.1 | % | 2,321,858 | 0.7 | % | ||||||||||
| Germany |
707,436,708 | 17.9 | % | 23,662,544 | 7.6 | % | ||||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| International Total |
751,441,734 | 19.0 | % | 25,984,402 | 8.3 | % | ||||||||||
| Other assets |
366,911,579 | 9.3 | % | |||||||||||||
|
|
|
|
|
|||||||||||||
| Total gross assets |
3,949,963,108 | 100.0 | % | |||||||||||||
| Accumulated depreciation and amortization |
(202,627,286 | ) | ||||||||||||||
|
|
|
|
|
|
|
|||||||||||
| Total |
$ | 3,747,335,822 | $ | 312,531,643 | 100.0 | % | ||||||||||
|
|
|
|
|
|
|
|||||||||||
| A | Includes three medical office buildings. |
| 3 |
|
LEASE MATURITY SCHEDULE - AS OF DECEMBER 31, 2014
| Total portfolio (1) |
Total leases | Base rent (2) | Percent of total base rent |
|||||||||
| 2015 |
2 | 4,155,412 | 1.6 | % | ||||||||
| 2016 |
1 | 2,250,000 | 0.9 | % | ||||||||
| 2017 |
— | — | 0.0 | % | ||||||||
| 2018 |
1 | 2,019,936 | 0.8 | % | ||||||||
| 2019 |
8 | 6,547,245 | 2.6 | % | ||||||||
| 2020 |
1 | 1,060,512 | 0.4 | % | ||||||||
| 2021 |
3 | 14,243,812 | 5.7 | % | ||||||||
| 2022 |
12 | 37,954,640 | 15.1 | % | ||||||||
| 2023 |
4 | 12,029,276 | 4.8 | % | ||||||||
| 2024 |
1 | 2,478,388 | 1.0 | % | ||||||||
| 2025 |
3 | 7,499,572 | 3.0 | % | ||||||||
| Thereafter |
79 | 161,345,198 | 64.1 | % | ||||||||
|
|
|
|
|
|
|
|||||||
| 115 | $ | 251,583,991 | 100.0 | % | ||||||||
|
|
|
|
|
|
|
|||||||
| (1) | Excludes 9 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) | Represents base rent on an annualized basis but 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 DECEMBER 31, 2014
| Instrument |
Rate Type | Rate | Balance | 2015 | 2016 | 2017 | 2018 | 2019 | Thereafter | |||||||||||||||||||||||||
| 2018 Credit Facility Revolver |
Variable | 1.42% - 1.57 | % (1) | $ | 593,490,000 | $ | — | $ | — | $ | — | $ | 593,490,000 | $ | — | $ | — | |||||||||||||||||
| 2019 Term Loan |
Variable | 1.82 | % | 125,000,000 | — | — | — | — | 125,000,000 | — | ||||||||||||||||||||||||
| 2016 Unsecured Notes |
Fixed | 5.59 | % (2) | 125,000,000 | — | 125,000,000 | — | — | — | — | ||||||||||||||||||||||||
| 5.75% Notes Due 2020 (Euro) |
Fixed | 5.75 | % (3) | 241,960,000 | — | — | — | — | — | 241,960,000 | ||||||||||||||||||||||||
| 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 | ||||||||||||||||||||||||
| 5.5% Notes Due 2024 |
Fixed | 5.50 | % | 300,000,000 | — | — | — | — | — | 300,000,000 | ||||||||||||||||||||||||
| Northland - Mortgage Capital Term Loan |
Fixed | 6.20 | % | 13,682,578 | 282,700 | 298,582 | 320,312 | 12,780,984 | — | — | ||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||
| $ | 2,199,132,578 | $ | 282,700 | $ | 125,298,582 | $ | 320,312 | $ | 606,270,984 | $ | 125,000,000 | $ | 1,341,960,000 | |||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||
| Debt Premium |
$ | 2,521,756 | ||||||||||||||||||||||||||||||||
|
|
|
|||||||||||||||||||||||||||||||||
| $ | 2,201,654,334 | |||||||||||||||||||||||||||||||||
|
|
|
|||||||||||||||||||||||||||||||||
| (1) | At December 31, 2014, this represents a $1.025 billion unsecured revolving credit facility with spreads over LIBOR ranging from 0.95% to 1.75%. |
| (2) | Represents the weighted-average rate for four traunches of the Notes at December 31, 2014 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.
| (3) | Represents 200,000,000 of bonds issued in EUR and converted to USD at December 31, 2014. |
| 5 |
|
MEDICAL PROPERTIES TRUST, INC. AND SUBSIDIARIES
Consolidated Statements of Income
| For the Three Months Ended | For the Twelve Months Ended | |||||||||||||||
| December 31, 2014 | December 31, 2013 | December 31, 2014 | December 31, 2013 | |||||||||||||
| (unaudited) | (A) | (unaudited) | (A) | |||||||||||||
| Revenues |
||||||||||||||||
| Rent billed |
$ | 50,065,768 | $ | 38,520,039 | $ | 187,018,147 | $ | 132,578,216 | ||||||||
| Straight-line rent |
2,858,620 | 2,474,148 | 13,507,120 | 10,705,792 | ||||||||||||
| Income from direct financing leases |
12,367,929 | 11,545,956 | 49,154,786 | 40,830,388 | ||||||||||||
| Interest and fee income |
16,813,085 | 15,139,342 | 62,851,590 | 58,409,167 | ||||||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| Total revenues |
82,105,402 | 67,679,485 | 312,531,643 | 242,523,563 | ||||||||||||
| Expenses |
||||||||||||||||
| Real estate depreciation and amortization |
14,452,563 | 11,151,338 | 53,937,810 | 36,977,724 | ||||||||||||
| Impairment charges |
— | — | 50,127,895 | — | ||||||||||||
| Property-related |
449,926 | 934,118 | 1,850,659 | 2,450,521 | ||||||||||||
| Acquisition expenses (B) |
18,455,684 | 13,036,440 | 26,388,957 | 19,493,657 | ||||||||||||
| General and administrative |
11,437,880 | 8,901,727 | 37,274,269 | 30,063,409 | ||||||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| Total operating expenses |
44,796,053 | 34,023,623 | 169,579,590 | 88,985,311 | ||||||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| Operating income |
37,309,349 | 33,655,862 | 142,952,053 | 153,538,252 | ||||||||||||
| Interest and other income (expense) |
(22,171,124 | ) | (19,881,506 | ) | (91,813,437 | ) | (63,511,002 | ) | ||||||||
| Income tax (expense) benefit |
(108,407 | ) | (464,219 | ) | (340,368 | ) | (725,707 | ) | ||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| Income from continuing operations |
15,029,818 | 13,310,137 | 50,798,248 | 89,301,543 | ||||||||||||
| Income from discontinued operations |
(320 | ) | 4,587,686 | (1,820 | ) | 7,913,867 | ||||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| Net income |
15,029,498 | 17,897,823 | 50,796,428 | 97,215,410 | ||||||||||||
| Net income attributable to non-controlling interests |
(81,779 | ) | (59,083 | ) | (273,701 | ) | (224,300 | ) | ||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| Net income attributable to MPT common stockholders |
$ | 14,947,719 | $ | 17,838,740 | $ | 50,522,727 | $ | 96,991,110 | ||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| Earnings per common share — basic: |
||||||||||||||||
| Income from continuing operations |
$ | 0.08 | $ | 0.08 | $ | 0.29 | $ | 0.59 | ||||||||
| Income from discontinued operations |
— | 0.03 | — | 0.05 | ||||||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| Net income attributable to MPT common stockholders |
$ | 0.08 | $ | 0.11 | $ | 0.29 | $ | 0.64 | ||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| Earnings per common share — diluted: |
||||||||||||||||
| Income from continuing operations |
$ | 0.08 | $ | 0.08 | $ | 0.29 | $ | 0.58 | ||||||||
| Income from discontinued operations |
— | 0.03 | — | 0.05 | ||||||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| Net income attributable to MPT common stockholders |
$ | 0.08 | $ | 0.11 | $ | 0.29 | $ | 0.63 | ||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| Dividends declared per common share |
$ | 0.21 | $ | 0.21 | $ | 0.84 | $ | 0.81 | ||||||||
| Weighted average shares outstanding — basic |
172,411,250 | 161,142,567 | 169,998,971 | 151,439,002 | ||||||||||||
| Weighted average shares outstanding — diluted |
172,603,919 | 161,839,544 | 170,540,178 | 152,597,666 | ||||||||||||
| (A) | Financials have been derived from the prior year audited financials. |
| (B) | Includes $3.9 million and $5.8 million in real estate transfer taxes in the quarter and year ended December 31, 2014, respectively. |
Includes $12.0 million in real estate transfer taxes in the quarter and year ended December 31, 2013.
| 6 |
|
MEDICAL PROPERTIES TRUST, INC. AND SUBSIDIARIES
Consolidated Balance Sheets
| December 31, 2014 | December 31, 2013 | |||||||
| (Unaudited) | (A) | |||||||
| Assets |
||||||||
| Real estate assets |
||||||||
| Land, buildings and improvements, and intangible lease assets |
$ | 2,149,611,503 | $ | 1,823,683,129 | ||||
| Construction in progress and other |
23,162,924 | 41,771,499 | ||||||
| Net investment in direct financing leases |
439,516,173 | 431,024,228 | ||||||
| Mortgage loans |
397,593,819 | 388,756,469 | ||||||
|
|
|
|
|
|||||
| Gross investment in real estate assets |
3,009,884,419 | 2,685,235,325 | ||||||
| Accumulated depreciation and amortization |
(202,627,286 | ) | (159,776,091 | ) | ||||
|
|
|
|
|
|||||
| Net investment in real estate assets |
2,807,257,133 | 2,525,459,234 | ||||||
| Cash and cash equivalents |
144,541,257 | 45,979,648 | ||||||
| Interest and rent receivable |
41,136,306 | 58,565,294 | ||||||
| Straight-line rent receivable |
59,127,947 | 45,828,685 | ||||||
| Other assets |
695,273,179 | 228,862,582 | ||||||
|
|
|
|
|
|||||
| Total Assets |
$ | 3,747,335,822 | $ | 2,904,695,443 | ||||
|
|
|
|
|
|||||
| Liabilities and Equity |
||||||||
| Liabilities |
||||||||
| Debt, net |
$ | 2,201,654,334 | $ | 1,421,680,749 | ||||
| Accounts payable and accrued expenses |
112,623,187 | 94,289,615 | ||||||
| Deferred revenue |
27,206,612 | 24,114,374 | ||||||
| Lease deposits and other obligations to tenants |
23,804,458 | 20,402,058 | ||||||
|
|
|
|
|
|||||
| Total liabilities |
2,365,288,591 | 1,560,486,796 | ||||||
| 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 — 172,743,348 shares at December 31, 2014 and 161,309,725 shares at December 31, 2013 |
172,743 | 161,310 | ||||||
| Additional paid in capital |
1,765,380,949 | 1,618,054,133 | ||||||
| Distributions in excess of net income |
(361,330,051 | ) | (264,803,804 | ) | ||||
| Accumulated other comprehensive income (loss) |
(21,914,067 | ) | (8,940,649 | ) | ||||
| Treasury shares, at cost |
(262,343 | ) | (262,343 | ) | ||||
|
|
|
|
|
|||||
| Total Equity |
1,382,047,231 | 1,344,208,647 | ||||||
|
|
|
|
|
|||||
| Total Liabilities and Equity |
$ | 3,747,335,822 | $ | 2,904,695,443 | ||||
|
|
|
|
|
|||||
| (A) | Financials have been derived from the prior year audited financials and include certain minor reclasses to be consistent with the 2014 presentation. |
| 7 |
|
ACQUISITIONS FOR THE TWELVE MONTHS ENDED DECEMBER 31, 2014
| Name |
Location |
Property Type |
Acquisition / Development |
Investment / Commitment |
||||||
| Legacy Health Partners |
Montclair, NJ | Acute Care Hospital | Acquisition | $ | 115,000,000 | |||||
| Circle Holdings |
Bath, U.K. | Acute Care Hospital | Acquisition | 49,900,000 | ||||||
| Ernest Health, Inc. |
Laredo, TX | Inpatient Rehabilitation Hospital | Development | 5,250,000 | ||||||
| Adeptus Health |
Various | Acute Care Hospital | Development | 150,000,000 | ||||||
| UAB Medical West |
Hoover, AL | Acute Care Hospital & MOB | Development | 8,653,000 | ||||||
| Fairmont Regional Medical Center |
Fairmont, WV | Acute Care Hospital | Acquisition | 25,000,000 | ||||||
| Wilson N. Jones Regional Medical Center |
Sherman, TX | Acute Care Hospital | Acquisition | 40,000,000 | ||||||
| Buchberg- Klinik** |
Bad Tolz, Germany | Inpatient Rehabilitation Hospital | Acquisition | 15,630,825 | ||||||
| Heinrich-Mann-Klinik** |
Bad Liebenstein, Germany | Inpatient Rehabilitation Hospital | Acquisition | 46,929,881 | ||||||
| Klink-Hohenlohe** |
Bad Mergentheim, Germany | Inpatient Rehabilitation Hospital | Acquisition | 17,073,210 | ||||||
| Portfolio of 40 MEDIAN Kliniken properties** |
Germany | Inpatient Rehabilitation Hospitals | Acquisition | 881,250,000 | A | |||||
|
|
|
|||||||||
| Total Investments / Commitments |
$ | 1,354,686,916 | ||||||||
|
|
|
|||||||||
| ** | Exchange rate as of date of acquisition used for foreign investments. |
| A | Excludes real estate transfer taxes, capital gains, and equity investment. |
SUMMARY OF DEVELOPMENT PROJECTS AS OF DECEMBER 31, 2014
| Property |
Location |
Property Type |
Operator |
Commitment | Costs Incurred as of 12/31/14 |
Percent Leased | Estimated Completion Date | |||||||||||||
| UAB Medical West |
Hoover, AL | Acute Care Hospital & MOB | Medical West, an affiliate of UAB | $ | 8,653,000 | $ | 1,973,303 | 100 | % | 2Q 2015 | ||||||||||
| First Choice ER - Summerwood |
Houston, TX | Acute Care Hospital | Adeptus Health | 6,015,000 | 2,560,354 | 100 | % | 2Q 2015 | ||||||||||||
| First Choice ER - Ft. Worth Avondale - Haslet |
Fort Worth, TX | Acute Care Hospital | Adeptus Health | 4,779,550 | 871,219 | 100 | % | 2Q 2015 | ||||||||||||
| First Choice ER - Carrollton |
Carrollton, TX | Acute Care Hospital | Adeptus Health | 35,819,897 | 15,628,996 | 100 | % | 3Q 2015 | ||||||||||||
| First Choice ER - Chandler |
Chandler, AZ | Acute Care Hospital | Adeptus Health | 5,049,335 | 894,785 | 100 | % | 3Q 2015 | ||||||||||||
| First Choice ER - Converse |
Converse, TX | Acute Care Hospital | Adeptus Health | 5,753,859 | 1,141,167 | 100 | % | 3Q 2015 | ||||||||||||
| First Choice ER - Denver 48th |
Denver, CO | Acute Care Hospital | Adeptus Health | 5,123,464 | 43,516 | 100 | % | 3Q 2015 | ||||||||||||
| First Choice ER - McKinney |
McKinney, TX | Acute Care Hospital | Adeptus Health | 4,749,949 | 49,584 | 100 | % | 3Q 2015 | ||||||||||||
| First Choice Emergency Rooms |
Various | Acute Care Hospital | Adeptus Health | 84,422,543 | — | |||||||||||||||
|
|
|
|
|
|||||||||||||||||
| $ | 160,366,597 | $ | 23,162,924 | |||||||||||||||||
|
|
|
|
|
|||||||||||||||||
| 8 |
|
DETAIL OF OTHER ASSETS AS OF DECEMBER 31, 2014
| Operator |
Investment | Annual Interest Rate |
YTD Ridea Income (3) |
Security / Credit Enhancements | ||||||||||
| Non-Operating Loans |
||||||||||||||
| Vibra Healthcare acquisition loan (1) |
$ | 10,167,122 | 10.25 | % | Secured and cross-defaulted with real estate, other agreements and guaranteed by Parent | |||||||||
| Vibra Healthcare working capital |
5,232,500 | 9.50 | % | Secured and cross-defaulted with real estate, other agreements and guaranteed by Parent | ||||||||||
| Post Acute Medical working capital |
5,891,502 | 11.10 | % | Secured and cross-defaulted with real estate; certain loans are cross-defaulted with other loans and real estate | ||||||||||
| Alecto working capital |
16,680,000 | 11.00 | % | Secured and cross-defaulted with real estate and guaranteed by Parent | ||||||||||
| IKJG/HUMC working capital |
11,789,067 | 10.40 | % | Secured and cross-defaulted with real estate and guaranteed by Parent | ||||||||||
| Ernest Health |
4,250,000 | 9.38 | % | Secured and cross-defaulted with real estate and guaranteed by Parent | ||||||||||
| Other |
151,891 | |||||||||||||
|
|
|
|||||||||||||
| 54,162,082 | ||||||||||||||
| Operating Loans |
||||||||||||||
| Ernest Health, Inc. (2) |
93,200,000 | 15.00 | % | 15,332,370 | Secured and cross-defaulted with real estate and guaranteed by Parent | |||||||||
| IKJG/HUMC convertible loan |
3,351,832 | 480,381 | Secured and cross-defaulted with real estate and guaranteed by Parent | |||||||||||
|
|
|
|
|
|||||||||||
| 96,551,832 | 15,812,751 | |||||||||||||
| Median investments (4) |
455,176,927 | |||||||||||||
| Equity investments |
14,727,753 | 2,559,275 | ||||||||||||
| Deferred debt financing costs |
35,323,684 | Not applicable | ||||||||||||
| Lease and cash collateral |
3,764,409 | Not applicable | ||||||||||||
| Other assets (5) |
35,566,492 | Not applicable | ||||||||||||
|
|
|
|
|
|||||||||||
| Total |
$ | 695,273,179 | $ | 18,372,026 | ||||||||||
|
|
|
|
|
|||||||||||
| (1) | Original amortizing acquistion loan was $41 million; loan matures in 2019 |
| (2) | Cash rate is 10% effective March 1, 2014. |
| (3) | Income earned on operating loans is reflected in the interest income line of the income statement. |
| (4) | Includes loans and equity investment. |
| (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
or
Tim Berryman, Director - Investor Relations
(205) 397-8589 or
tberryman@medicalpropertiestrust.com
Investing in the future of healthcare.