Medical Properties Trust Comments on Delayed Form 10-Q Filing and Related Notice From NYSE
Medical Properties Trust (MPW) has delayed its Form 10-Q filing for the period ending March 31, 2024 due to extra review procedures needed after Steward Health Care System 's recent bankruptcy filing.
The delay has prompted the New York Stock Exchange (NYSE) to issue a notice of non-compliance with its timely filing criteria.
This notice, received on May 16, 2024, does not immediately affect MPW’s stock listing. The company has six months from May 15, 2024, to regain compliance by filing the report, with a potential six-month extension at the NYSE's discretion.
PricewaterhouseCoopers LLP, MPW's independent accounting firm, is allocating significant resources to finalize the report.
- The delayed filing does not immediately affect MPW's listing on the NYSE.
- The company has a six-month window, with a possible additional six-month extension, to regain compliance.
- Significant resources are being dedicated to complete the necessary work for the SEC filing.
- The delayed Quarterly Report filing indicates potential financial and operational issues following Steward Health Care System 's bankruptcy.
- MPW received a notice from NYSE for non-compliance with timely filing standards, which can affect investor confidence.
- The need for additional review procedures may indicate underlying complexities in MPW's financials.
Insights
Medical Properties Trust (MPT) is currently facing delays in filing its quarterly report for the period ending March 31, 2024. This is primarily due to the voluntary bankruptcy petition filed by one of its major tenants, Steward Health Care System LLC. This delay has triggered a notice from the New York Stock Exchange (NYSE) indicating non-compliance with timely filing regulations.
From a financial perspective, the delay in filing and the bankruptcy of a significant tenant could be concerning for investors. Bankruptcy proceedings often involve uncertainties that can affect rent payments and lease agreements. This can impact cash flows and future earnings projections.
Additionally, the delay in filing the Form 10-Q means that investors are left in the dark about the company's financial health for that period. This lack of transparency could lead to increased market volatility and potential declines in stock price.
Given that the NYSE notice currently holds no immediate effect on the stock's listing, investors should monitor how quickly MPT can resolve these issues. The company has a six-month window to file the report and regain compliance, which might provide some breathing room, but the underlying issues remain significant.
The NYSE notice related to MPT's delayed filing is more of a formal compliance issue at this stage, rather than an indicator of immediate delisting or severe penalties. However, these notices can be a precursor to more significant actions if not addressed promptly.
From a legal standpoint, the bankruptcy of Steward Health Care introduces complexities. Bankruptcy proceedings can lead to renegotiations or cancellations of existing lease agreements. MPT's reliance on Steward for a portion of its revenue stream means that any adverse changes could have potential cascading effects on its financial stability.
Investors should also consider the implications of extended legal processes associated with bankruptcy, which can be both time-consuming and costly. The final outcomes of these proceedings are often unpredictable and can materially affect MPT’s operational strategies and financial outcomes.
In the short term, it’s important to observe any legal filings or announcements from both MPT and Steward Health Care to understand the evolving legal landscape and its impact.
On May 16, 2024, due to the delayed filing of the Quarterly Report, the Company received a notice from the New York Stock Exchange (“NYSE”) that the Company is not in compliance with the NYSE’s timely filing criteria set forth in Section 802.01E of the NYSE Listed Company Manual. The notice has no immediate effect on the listing of the Company’s common stock on the NYSE. Under NYSE rules, the Company has six months from May 15, 2024 to regain compliance with the NYSE listing standards by filing the Quarterly Report with the SEC, subject to an additional six-month extension at the NYSE's discretion.
About Medical Properties Trust, Inc.
Medical Properties Trust, Inc. is a self-advised real estate investment trust formed in 2003 to acquire and develop net-leased hospital facilities. From its inception in
Forward-Looking Statements
This press release includes forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Statements regarding the Company’s current expectations with respect to the filing of its Quarterly Report on Form 10-Q for the quarter ended March 31, 2024 and related matters, as well as all other statements other than statements of historical fact included in this press release, are forward-looking statements. Forward-looking statements can generally be identified by the use of forward-looking words such as “may”, “will”, “would”, “could”, “expect”, “intend”, “plan”, “estimate”, “target”, “anticipate”, “believe” or other similar words. Forward-looking statements involve known and unknown risks and uncertainties, some of which may be beyond our control, that may cause our actual results or future events to differ materially from those expressed in or underlying such forward-looking statements, including, but not limited to: (i) the risk that the completion and filing of the Quarterly Report will take longer than expected; (ii) the risk that additional information that may arise during the preparation of the Quarterly Report for filing with the SEC; and (iii) the timing of the Company regaining compliance with the NYSE’s continued listing standards.
The risks described above are not exhaustive and additional factors could adversely affect our business and financial performance, including the risk factors discussed under the section captioned “Risk Factors” in our most recent Annual Report on Form 10-K, as may be updated in our other filings with the SEC. Readers are cautioned to not place undue reliance on forward-looking statements as predictions of future events. We disclaim any responsibility to update such forward-looking statements, which speak only as of the date on which they were made.
View source version on businesswire.com: https://www.businesswire.com/news/home/20240516833350/en/
Drew Babin, CFA, CMA
Senior Managing Director of Corporate Communications
Medical Properties Trust, Inc.
(646) 884-9809
dbabin@medicalpropertiestrust.com
Source: Medical Properties Trust, Inc.
FAQ
Why is Medical Properties Trust (MPW) delaying its Form 10-Q filing?
What is the impact of the delayed Form 10-Q filing on MPW's NYSE listing?
What is the deadline for MPW to regain compliance with NYSE's timely filing criteria?
Who is assisting MPW with the delayed Form 10-Q filing?
What caused the need for additional review procedures in MPW's Form 10-Q filing?
