Medical Properties Trust, Inc. to Invest $1.4 Billion in Ten Acute Care Hospitals and One Behavioral Health Facility
Acquisitions Immediately Accretive to Normalized FFO by
Benefits to MPT’s Portfolio
Increases Critical Mass. This transaction increases MPT’s pro
forma total gross assets by approximately 20% to almost
$9 billion. Further, it adds 11 outstanding hospitals and over 2,400 beds to MPT’s portfolio, increasing the total number to 269 and 31,266, respectively.
Attractive Markets. Community-focused hospitals clustered
primarily within large metropolitan areas in high-growth urban and
suburban markets in the states of
Utah, Arizona, Texasand Arkansasoffer suitable payor mixes.
- Increased Acute Care Percentage. Acute care hospitals increase to 72.5% of MPT’s total portfolio and 84.0% of the U.S. portfolio, an increase from 66.9% and 79.9%, respectively.
- Decreased LTACH Percentage. Long-term acute care hospitals decrease to 4.2% of MPT’s total portfolio and 5.0% of the U.S. portfolio, a decline from 5.0% and 6.3%, respectively.
- Single Largest Hospital Exposure. The largest hospital in MPT’s pro forma portfolio represents just 3.9% of MPT’s total real estate investments with this transaction.
Expands Steward Relationship. MPT expands its relationship with
an innovative, forward-thinking operator in Steward, which will become
the largest private, for-profit hospital operator in
the United States. With this transaction, Steward will have nearly 7,500 patient beds in 36 hospitals across ten states. Steward’s integrated model, including 1,800 directly employed multi-specialty physicians and several thousand aligned physicians, shifts healthcare delivery to a more cost-effective, local coordinated approach emphasizing quality care and wellness. The merging of the managed care operations of Steward and IASIS will result in more than 1.1 million covered lives.
“We are very excited about this opportunity to grow with one of the top
hospital operators in the country,” said
“Steward has similarly achieved remarkable success in growing its
company starting with the turnaround of a struggling not-for-profit
hospital system in eastern
MPT’s interests in the hospitals to be acquired will be subject to a
master lease and mortgage loan arrangements with cross default
provisions and backed by a corporate guaranty. Nine hospitals will be
MPT’s pro forma investment of
The transaction is expected to close by
The Company has posted a presentation regarding the Steward transaction, including a reconciliation of pro forma FFO per diluted share to Net Income, the most comparable GAAP measure, on the Investor Relations page of the Company’s website, www.medicalpropertiestrust.com under Webcasts & Presentations.
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: our ability to successfully consummate the Steward/IASIS
transactions discussed in this press release; the satisfaction of all
conditions to, and the timely closing (if at all) of pending
transactions; net income per share; Normalized FFO per share; the amount
of acquisitions of healthcare real estate, if any; results from the
potential sales, if any, of assets; capital markets conditions;
estimated leverage metrics; 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 arrangements, 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 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
Medical Properties Trust, Inc.
Tim Berryman, 205-969-3755
Director – Investor Relations