Company Announces Binding Development Agreement and UK Hospital
Acquisition; Transactions Valued at Approximately $200 Million
Company Remains On Track to Achieve In-Place Annualized Normalized
FFO per Share of $1.10 to $1.14
BIRMINGHAM, Ala.--(BUSINESS WIRE)--
Medical Properties Trust, Inc. (NYSE:MPW) today announced it will host
a conference call and webcast on Thursday, August 7, 2014 at 11:00 a.m.
Eastern Time to discuss the company's second quarter 2014 financial
results. A press release with second quarter 2014 financial results will
be issued before the market opens on August 7, 2014.
The dial-in numbers for the conference call are 877-546-5019 (U.S.) and
857-244-7551 (international); both numbers require passcode 31764608.
The conference call will also be webcast live on 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 August 21, 2014. 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 27363175.
Conference Call Preview
In addition to quarterly and year-to-date financial results, management
expects to describe recent activities, including:
On July 1, an affiliate of MPT acquired for £29.4 million
(approximately $49.9 million) the real estate assets of an
award-winning acute care hospital in the city of Bath, 100 miles west
of London, from Circle Health Ltd. ("Circle").
Subsequent to June 30, MPT and Adeptus Health (the operator of First
Choice ER facilities) executed a binding $150 million agreement for
the development of multiple facilities, including licensed acute care
hospitals and surrounding free-standing emergency departments in
On June 25, Adeptus successfully completed an initial public offering
significantly improving its financial strength and growth outlook and
demonstrating the enthusiasm in financial and healthcare markets for
its innovative healthcare delivery model. MPT first provided
sale/leaseback financing to Adeptus in 2012 with an initial $100
million commitment which has since been utilized. Prior to its 2012
relationship with Adeptus, MPT pioneered the concept of sale/leaseback
financing of hospitals licensed as stand-alone emergency departments
with another leading operator.
The initial cash yields for both transactions fall in the range between
8.0% and 11.0%.
"One of MPT's key advantages over other hospital real estate investors
has always been our ability to identify new and innovative methods to
deliver healthcare, both in the U.S. and internationally," said Edward
K. Aldag, Jr., Chairman, President and CEO of Medical Properties Trust,
Inc. "MPT's specialized knowledge enables us to identify healthcare
trends and predict where healthcare is next headed and puts us in a
position to be first to market with the financing of new delivery models
and to seek out growth companies like Adeptus Health and Circle Health."
Under the terms of the UK transaction, MPT acquired the real estate
assets of CircleBath, an acute care hospital, and leased back the
facility to Circle Hospital (Bath) in a 15-year lease with a tenant
option to extend the lease for an additional 15 years. As is typical of
MPT's standard agreements, the lease includes annual rent increases,
based on the UK's retail price index, to safeguard MPT from inflation.
In commenting on the UK hospital acquisition, Aldag noted, "The
acquisition of CircleBath is another proof point of our substantial
progress in executing our growth and diversification strategy. We are
very pleased to have expanded our Western European footprint into the UK
and expect significant opportunities in the region as the National
Health Service continues to grant access to private hospitals. While we
expect the U.S. to remain our core market for hospital investments, we
see significant opportunity to diversify our portfolio internationally
making accretive acquisitions that will help to expand our FFO."
Thus far in 2014, Medical Properties Trust has issued approximately
9,900,000 shares of its common stock, which continues to improve its
balance sheet strength and positions the Company to invest immediately
in desirable properties even as the share issuance has a dilutive effect
on earnings in the short term. Additionally, the Company issued $300
million in unsecured debt priced at 5.5% in early April. As a result of
acquisitions and development commitments completed so far during 2014,
these capital markets activities and a strongly positive outlook for
further accretive growth opportunities through the remainder of 2014,
management remains confident that the company will reach its goal of
acquiring at least $500 million in new investments and commitments and
achieve a run rate of between $1.10 and $1.14 per share of normalized
funds from operations as of the end of the year.
As the company had previously disclosed its expectation, the tenant of
the Bucks County Hospital recently exercised its option to acquire the
hospital's real estate. The Bucks County hospital was the only facility
that the Company was required to re-lease during the 2009 global
financial crisis, and the repurchase is expected to close during the
third quarter for proceeds that are estimated to result in less than a
$3 million loss on sale.
In addition, affiliates of the Company have entered into agreements for
the management and re-lease of the Monroe Hospital real estate that
contemplate a bankruptcy filing by the existing tenant. Subsequent to
exit from the bankruptcy process the new tenant is expected to commence
paying cash rent in an initial annual amount of approximately $2.1
million. As a result, the Company expects to incur an impairment charge
in the range of $25 to $30 million for the second quarter.
About Medical Properties Trust, Inc.
Medical Properties Trust, Inc. is a 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 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: Normalized FFO per share, the amount of acquisitions of
healthcare real estate, if any, capital markets conditions, the
restructuring of the Company's investments in Monroe Hospital and
expected impairment charge, the sale of the Bucks County Hospital and
the expected loss on sale, the consummation of the Lessees' ability to
continue providing care and the Lessees' ability to generate sufficient
earnings to pay rent. 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.
Source: Medical Properties Trust, Inc.