Medical Properties Trust, Inc. Reports Second Quarter Results
Medical Properties Trust (NYSE: MPW) reported its Q2 2024 results, highlighting $2.5 billion in year-to-date liquidity transactions and modified credit facility terms. Key financial results include:
- Net loss of ($0.54) per share
- Normalized Funds from Operations (NFFO) of $0.23 per share
- $400 million in real estate gains, offset by $700 million in impairments
Notable transactions:
- $350 million sale of five hospitals to Prime Healthcare
- $1.1 billion sale of 75% interest in five Utah hospitals
- £631 million (~$800 million) secured financing of 27 U.K. hospitals
- $160 million sale of seven emergency facilities and one hospital
MPT repaid $1.5 billion in debt and amended its credit facility, including reducing the revolver commitment and modifying covenants. The company's portfolio now includes 435 properties across 53 hospital operating companies globally.
Medical Properties Trust (NYSE: MPW) ha riportato i risultati del secondo trimestre del 2024, evidenziando 2,5 miliardi di dollari in transazioni di liquidità dall'inizio dell'anno e termini modificati del contratto di credito. I principali risultati finanziari includono:
- Perdita netta di ($0,54) per azione
- Fondi normalizzati dalle operazioni (NFFO) di $0,23 per azione
- $400 milioni di guadagni immobiliari, compensati da $700 milioni di svalutazioni
Transazioni notevoli:
- Vendita di cinque ospedali a Prime Healthcare per $350 milioni
- Vendita del 75% delle quote in cinque ospedali in Utah per $1,1 miliardi
- Finanziamento garantito di 631 milioni di sterline (~$800 milioni) per 27 ospedali nel Regno Unito
- Vendita di sette strutture di emergenza e un ospedale per $160 milioni
MPT ha rimborsato $1,5 miliardi di debito e ha modificato il proprio contratto di credito, inclusa la riduzione dell'impegno rotativo e la modifica dei vincoli. Il portafoglio dell'azienda ora include 435 proprietà in 53 società di gestione ospedaliera a livello globale.
Medical Properties Trust (NYSE: MPW) reportó sus resultados del segundo trimestre de 2024, destacando 2.5 mil millones de dólares en transacciones de liquidez en lo que va del año y términos modificados de su línea de crédito. Los principales resultados financieros incluyen:
- Pérdida neta de ($0.54) por acción
- Fondos normalizados de operaciones (NFFO) de $0.23 por acción
- $400 millones en ganancias inmobiliarias, compensados por $700 millones en deterioros
Transacciones destacadas:
- Venta de cinco hospitales a Prime Healthcare por $350 millones
- Venta del 75% de interés en cinco hospitales de Utah por $1.1 mil millones
- Financiamiento asegurado de £631 millones (~$800 millones) para 27 hospitales en el Reino Unido
- Venta de siete instalaciones de emergencia y un hospital por $160 millones
MPT reembolsó $1.5 mil millones en deudas y modificó su línea de crédito, incluyendo la reducción del compromiso rotativo y la modificación de convenios. El portafolio de la empresa ahora incluye 435 propiedades en 53 compañías operadoras de hospitales a nivel mundial.
메디컬 프로퍼티 트러스트(Medical Properties Trust, NYSE: MPW)는 2024년 2분기 결과를 발표하며 올해까지 25억 달러의 유동성 거래와 수정된 신용 시설 조건을 강조했습니다. 주요 재무 결과는 다음과 같습니다:
- 주당 순손실 ($0.54)
- 운영에서 정상화된 자금(NFFO) 주당 $0.23
- $4억 달러의 부동산 이익, $7억 달러의 손상으로 상쇄됨
주요 거래:
- 프라임 헬스케어에 5개 병원 판매($3.5억 달러)
- 유타주 병원 5곳의 75% 지분 매각($11억 달러)
- 영국의 27개 병원에 대해 6억 3100만 파운드(~8억 달러) 보장된 금융
- 7개 응급 시설과 1개 병원 판매($1.6억 달러)
MPT는 15억 달러의 부채를 상환하고 신용 시설을 수정하여 회전 대출 약정금을 줄이고 계약을 수정했습니다. 회사의 포트폴리오에는 현재 전 세계 53개 병원 운영 회사를 포함한 435개의 자산이 포함되어 있습니다.
Medical Properties Trust (NYSE: MPW) a annoncé ses résultats pour le deuxième trimestre 2024, mettant en lumière 2,5 milliards de dollars de transactions de liquidités à ce jour et des modalités de crédit modifiées. Les résultats financiers clés incluent :
- Perte nette de ($0,54) par action
- Fonds normalisés provenant des opérations (NFFO) de $0,23 par action
- $400 millions de gains immobiliers, compensés par $700 millions de dépréciations
Transactions notables :
- Vente de cinq hôpitaux à Prime Healthcare pour 350 millions de dollars
- Vente de 75 % d'intérêt dans cinq hôpitaux de l'Utah pour 1,1 milliard de dollars
- Financement sécurisé de 631 millions de livres (~800 millions de dollars) pour 27 hôpitaux au Royaume-Uni
- Vente de sept installations d'urgence et d'un hôpital pour 160 millions de dollars
MPT a remboursé 1,5 milliard de dollars de dettes et a modifié sa ligne de crédit, y compris la réduction de l'engagement renouvelable et la modification des covenants. Le portefeuille de l'entreprise comprend maintenant 435 propriétés dans 53 sociétés opérant des hôpitaux à l'échelle mondiale.
Medical Properties Trust (NYSE: MPW) hat die Ergebnisse für das 2. Quartal 2024 veröffentlicht und dabei 2,5 Milliarden Dollar an Liquiditätstransaktionen im bisherigen Jahresverlauf sowie geänderte Kreditbedingungen hervorgehoben. Die wichtigsten finanziellen Ergebnisse umfassen:
- Nettoverlust von ($0,54) pro Aktie
- Normalisierte Mittel aus Betrieben (NFFO) von $0,23 pro Aktie
- $400 Millionen an Immobiliengewinnen, die durch $700 Millionen an Wertminderungen ausgeglichen werden
Bemerkenswerte Transaktionen:
- Verkauf von fünf Krankenhäusern an Prime Healthcare für 350 Millionen Dollar
- Verkauf von 75% des Anteils an fünf Krankenhäusern in Utah für 1,1 Milliarden Dollar
- Gesicherte Finanzierung von 631 Millionen Pfund (~800 Millionen Dollar) für 27 Krankenhäuser im Vereinigten Königreich
- Verkauf von sieben Notfalleinrichtungen und einem Krankenhaus für 160 Millionen Dollar
MPT hat 1,5 Milliarden Dollar Schulden zurückgezahlt und seine Kreditfazilität geändert, einschließlich der Reduzierung des revolvierenden Engagements und der Neufassung von Auflagen. Das Portfolio des Unternehmens umfasst nun 435 Immobilien in 53 Krankenhausbetriebsunternehmen weltweit.
- Successfully executed over $2.5 billion in liquidity transactions year-to-date
- Closed $350 million sale of five hospitals to Prime Healthcare
- Completed £631 million (~$800 million) secured financing of 27 U.K. hospitals
- Repaid approximately $1.5 billion in debt, including all 2024 maturities
- Strong revenue trends in U.S. portfolio, excluding Steward and Prospect facilities
- Lifepoint Health operated hospitals recorded highest total admissions in nearly three years
- Net loss of ($0.54) per share for Q2 2024
- Approximately $700 million in impairments and negative fair value adjustments
- $400 million impairment of equity stake in Massachusetts partnership with Macquarie
- $163 million negative fair market value adjustment to investment in PHP
- NFFO decreased to $0.23 per share compared to $0.48 per share in the previous year
- Agreed to limit cash component of quarterly dividends to no more than $0.08 per share
Insights
Medical Properties Trust's Q2 results reveal a challenging period with a net loss of
The company's aggressive liquidity-generating actions, totaling over
While asset sales have bolstered liquidity, the impairment of MPT's
The performance of MPT's portfolio reveals a mixed picture across different healthcare segments and geographies. The European general acute portfolio is benefiting from increased private hospital utilization and reimbursement rates keeping pace with expenses. This trend aligns with the broader shift towards private healthcare in many European markets.
In the U.S., excluding Steward and Prospect properties, general acute revenues show strength due to higher admissions, acuity mix and reimbursement rates. The behavioral segment reports steady growth, while post-acute performance remains stable. Notably, Lifepoint Health-operated hospitals recorded their highest total admissions in nearly three years, a positive indicator for this segment of MPT's portfolio.
However, the ongoing challenges with Steward Health Care and Prospect Medical Holdings, two significant tenants, continue to pose risks. The potential relinquishment of ownership in eight Steward-operated Massachusetts hospitals due to regulatory issues is particularly concerning and highlights the complex regulatory environment in healthcare real estate.
MPT's strategic moves in Q2 reflect a company actively managing its portfolio under pressure. The sale of assets, including the
The secured financing of
The amendment of the credit facility, including the reduction of the revolver commitment from
Successfully Executed More than
Modified Credit Facility Terms and Conditions
Second Quarter Financial Highlights
-
Net loss of (
$0.54 $0.23 -
Second quarter net loss included approximately
$400 million $700 million
Corporate Updates During and Subsequent to the Second Quarter
-
Closed on the sale of five previously leased hospitals to Prime Healthcare for total consideration of
$350 million -
Closed on the sale of a
75% interest in fiveUtah hospitals leased to CommonSpirit to a new joint venture with an institutional investor in April for total proceeds of$1.1 billion -
Completed a
£631 million (~ ) secured financing of 27 U.K. hospitals leased to Circle Health in May;$800 million -
Sold for approximately
$160 million Arizona to Dignity Health in July; -
Repaid approximately
$1.5 billion -
Paid a regular quarterly dividend of
$0.15
Edward K. Aldag, Jr., Chairman, President and Chief Executive Officer, said, “MPT took decisive action to generate more than
Included in the financial tables accompanying this press release is information about the Company’s assets and liabilities, operating results, and reconciliations of net loss to NFFO, including per share amounts, all on a basis comparable to 2023 results.
CAPITAL ALLOCATION UPDATE
Subsequent to the end of the quarter, MPT amended its credit facility to reflect recent disposition and financing transactions and better align with the Company’s current capital allocation strategy, as well as to accommodate the expected timing of sales and re-tenanting transactions that Steward Health Care (“Steward”) is pursuing through its court-supervised restructuring process.
The amendment includes the reduction of MPT’s revolver commitment from
PORTFOLIO UPDATE
Medical Properties Trust has total assets of approximately
MPT’s European general acute portfolio continues to benefit from the broadening role of private hospitals in addressing rapidly growing care needs, particularly in the
In the Company’s
As expected, Steward paid May and June cash rent of approximately
Due to unanticipated restrictions imposed by regulators that impacted the process of transitioning ownership of eight hospitals operated by Steward in
During the second quarter of 2024, Prospect paid cash rent of
OPERATING RESULTS
Net loss for the second quarter ended June 30, 2024 was (
-
The impairment of MPT’s approximate
$400 million Massachusetts partnership with Macquarie (included on the income statement in earnings from equity interests); and -
A
$163 million
NFFO for the second quarter ended June 30, 2024 was
A reconciliation of net loss to FFO and NFFO, including per share amounts, can be found in the financial tables accompanying this press release.
CONFERENCE CALL AND WEBCAST
The Company has scheduled a conference call and webcast for August 8, 2024 at 11:00 a.m. Eastern Time to present the Company’s financial and operating results for the quarter ended June 30, 2024. The dial-in numbers for the conference call are 877-883-0383 (
A telephone and webcast replay of the call will be available beginning shortly after the call’s completion. The telephone replay will be available through August 22, 2024, using dial-in numbers 877-344-7529 (
The Company’s supplemental information package for the current period will also be available on the Company’s website in the Investor Relations section.
The Company uses, and intends to continue to use, the Investor Relations page of its website, which can be found at www.medicalpropertiestrust.com, as a means of disclosing material nonpublic information and of complying with its disclosure obligations under Regulation FD, including, without limitation, through the posting of investor presentations that may include material nonpublic information. Accordingly, investors should monitor the Investor Relations page, in addition to following our press releases, SEC filings, public conference calls, presentations and webcasts. The information contained on, or that may be accessed through, our website is not incorporated by reference into, and is not a part of, this document.
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. 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”, “objectives”, “outlook”, “guidance” or other similar words, and include statements regarding our strategies, objectives, asset sales and other liquidity transactions (including the use of proceeds thereof), expected returns on investments and financial performance, expected trends and performance across our various markets, and expected outcomes from Steward’s restructuring process. Forward-looking statements involve known and unknown risks and uncertainties 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 bankruptcy restructuring of Steward, the Company’s largest tenant, does not result in MPT recovering deferred rent or its other investments in Steward at full value, within a reasonable time period or at all; (ii) macroeconomic conditions, including due to geopolitical conditions and instability, which may lead to a disruption of or lack of access to the capital markets, disruptions and instability in the banking and financial services industries, rising inflation and movements in currency exchange rates; (iii) the risk that previously announced or contemplated property sales, loan repayments, and other capital recycling transactions do not occur as anticipated or at all; (iv) the risk that MPT is not able to attain its leverage, liquidity and cost of capital objectives within a reasonable time period or at all; (v) MPT’s ability to obtain debt financing on attractive terms or at all, as a result of changes in interest rates and other factors, which may adversely impact its ability to pay down, refinance, restructure or extend its indebtedness as it becomes due, or pursue acquisition and development opportunities; (vi) the ability of our tenants, operators and borrowers to satisfy their obligations under their respective contractual arrangements with us; (vii) the economic, political and social impact of, and uncertainty relating to, the potential impact from health crises (like COVID-19), which may adversely affect MPT’s and its tenants’ business, financial condition, results of operations and liquidity; (viii) our success in implementing our business strategy and our ability to identify, underwrite, finance, consummate and integrate acquisitions and investments; (ix) the nature and extent of our current and future competition; (x) international, national and local economic, real estate and other market conditions, which may negatively impact, among other things, the financial condition of our tenants, lenders and institutions that hold our cash balances, and may expose us to increased risks of default by these parties; (xi) factors affecting the real estate industry generally or the healthcare real estate industry in particular; (xii) our ability to maintain our status as a REIT for income tax purposes in the
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 and our Form 10-Q, and as may be updated in our other filings with the SEC. Forward-looking statements are inherently uncertain and actual performance or outcomes may vary materially from any forward-looking statements and the assumptions on which those statements are based. 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.
| MEDICAL PROPERTIES TRUST, INC. AND SUBSIDIARIES | ||||||||
| Consolidated Balance Sheets | ||||||||
| (Amounts in thousands, except for per share data) | ||||||||
| June 30, 2024 | December 31, 2023 | |||||||
| Assets | (Unaudited) | (A) | ||||||
| Real estate assets | ||||||||
| Land, buildings and improvements, intangible lease assets, and other | $ |
11,949,385 |
|
$ |
13,237,187 |
|
||
| Investment in financing leases |
|
1,181,959 |
|
|
1,231,630 |
|
||
| Mortgage loans |
|
399,150 |
|
|
309,315 |
|
||
| Gross investment in real estate assets |
|
13,530,494 |
|
|
14,778,132 |
|
||
| Accumulated depreciation and amortization |
|
(1,417,910 |
) |
|
(1,407,971 |
) |
||
| Net investment in real estate assets |
|
12,112,584 |
|
|
13,370,161 |
|
||
| Cash and cash equivalents |
|
606,550 |
|
|
250,016 |
|
||
| Interest and rent receivables |
|
39,471 |
|
|
45,059 |
|
||
| Straight-line rent receivables |
|
664,271 |
|
|
635,987 |
|
||
| Investments in unconsolidated real estate joint ventures |
|
1,143,231 |
|
|
1,474,455 |
|
||
| Investments in unconsolidated operating entities |
|
635,206 |
|
|
1,778,640 |
|
||
| Other loans |
|
505,942 |
|
|
292,615 |
|
||
| Other assets |
|
487,488 |
|
|
457,911 |
|
||
| Total Assets | $ |
16,194,743 |
|
$ |
18,304,844 |
|
||
| Liabilities and Equity | ||||||||
| Liabilities | ||||||||
| Debt, net | $ |
9,369,064 |
|
$ |
10,064,236 |
|
||
| Accounts payable and accrued expenses |
|
446,893 |
|
|
412,178 |
|
||
| Deferred revenue |
|
25,700 |
|
|
37,962 |
|
||
| Obligations to tenants and other lease liabilities |
|
160,009 |
|
|
156,603 |
|
||
| Total Liabilities |
|
10,001,666 |
|
|
10,670,979 |
|
||
| Equity | ||||||||
| Preferred stock, |
|
- |
|
|
- |
|
||
| Common stock, |
|
600 |
|
|
599 |
|
||
| Additional paid-in capital |
|
8,571,662 |
|
|
8,560,309 |
|
||
| Retained deficit |
|
(2,348,170 |
) |
|
(971,809 |
) |
||
| Accumulated other comprehensive (loss) income |
|
(33,910 |
) |
|
42,501 |
|
||
| Total Medical Properties Trust, Inc. Stockholders' Equity |
|
6,190,182 |
|
|
7,631,600 |
|
||
| Non-controlling interests |
|
2,895 |
|
|
2,265 |
|
||
| Total Equity |
|
6,193,077 |
|
|
7,633,865 |
|
||
| Total Liabilities and Equity | $ |
16,194,743 |
|
$ |
18,304,844 |
|
||
| (A) Financials have been derived from the prior year audited financial statements. | ||||||||
| MEDICAL PROPERTIES TRUST, INC. AND SUBSIDIARIES | ||||||||||||||||
| Consolidated Statements of Income | ||||||||||||||||
| (Unaudited) | ||||||||||||||||
| (Amounts in thousands, except for per share data) | For the Three Months Ended | For the Six Months Ended | ||||||||||||||
| June 30, 2024 | June 30, 2023 | June 30, 2024 | June 30, 2023 | |||||||||||||
| Revenues | ||||||||||||||||
| Rent billed | $ |
183,764 |
|
$ |
247,491 |
|
$ |
383,063 |
|
$ |
495,648 |
|
||||
| Straight-line rent |
|
38,381 |
|
|
(39,329 |
) |
|
83,117 |
|
|
17,364 |
|
||||
| Income from financing leases |
|
27,641 |
|
|
68,468 |
|
|
44,034 |
|
|
81,663 |
|
||||
| Interest and other income |
|
16,774 |
|
|
60,765 |
|
|
27,662 |
|
|
92,931 |
|
||||
| Total revenues |
|
266,560 |
|
|
337,395 |
|
|
537,876 |
|
|
687,606 |
|
||||
| Expenses | ||||||||||||||||
| Interest |
|
101,430 |
|
|
104,470 |
|
|
210,115 |
|
|
202,124 |
|
||||
| Real estate depreciation and amortization |
|
102,240 |
|
|
364,403 |
|
|
177,826 |
|
|
448,263 |
|
||||
| Property-related (A) |
|
7,663 |
|
|
24,676 |
|
|
12,481 |
|
|
31,786 |
|
||||
| General and administrative |
|
35,327 |
|
|
35,604 |
|
|
68,675 |
|
|
77,328 |
|
||||
| Total expenses |
|
246,660 |
|
|
529,153 |
|
|
469,097 |
|
|
759,501 |
|
||||
| Other (expense) income | ||||||||||||||||
| Gain on sale of real estate |
|
384,824 |
|
|
167 |
|
|
383,401 |
|
|
229 |
|
||||
| Real estate and other impairment charges, net |
|
(137,419 |
) |
|
- |
|
|
(830,507 |
) |
|
(89,538 |
) |
||||
| (Loss) earnings from equity interests |
|
(401,757 |
) |
|
12,224 |
|
|
(391,208 |
) |
|
23,576 |
|
||||
| Debt refinancing and unutilized financing costs |
|
(2,964 |
) |
|
(816 |
) |
|
(2,964 |
) |
|
(816 |
) |
||||
| Other (including fair value adjustments on securities) |
|
(167,686 |
) |
|
(10,512 |
) |
|
(397,031 |
) |
|
(15,678 |
) |
||||
| Total other (expense) income |
|
(325,002 |
) |
|
1,063 |
|
|
(1,238,309 |
) |
|
(82,227 |
) |
||||
| Loss before income tax |
|
(305,102 |
) |
|
(190,695 |
) |
|
(1,169,530 |
) |
|
(154,122 |
) |
||||
| Income tax (expense) benefit |
|
(14,557 |
) |
|
148,262 |
|
|
(25,506 |
) |
|
144,719 |
|
||||
| Net loss |
|
(319,659 |
) |
|
(42,433 |
) |
|
(1,195,036 |
) |
|
(9,403 |
) |
||||
| Net (income) loss attributable to non-controlling interests |
|
(976 |
) |
|
396 |
|
|
(1,224 |
) |
|
160 |
|
||||
| Net loss attributable to MPT common stockholders | $ |
(320,635 |
) |
$ |
(42,037 |
) |
$ |
(1,196,260 |
) |
$ |
(9,243 |
) |
||||
| Earnings per common share - basic and diluted: | ||||||||||||||||
| Net loss attributable to MPT common stockholders | $ |
(0.54 |
) |
$ |
(0.07 |
) |
$ |
(1.99 |
) |
$ |
(0.02 |
) |
||||
| Weighted average shares outstanding - basic |
|
600,057 |
|
|
598,344 |
|
|
600,181 |
|
|
598,323 |
|
||||
| Weighted average shares outstanding - diluted |
|
600,057 |
|
|
598,344 |
|
|
600,181 |
|
|
598,323 |
|
||||
| Dividends declared per common share | $ |
0.30 |
|
$ |
0.29 |
|
$ |
0.30 |
|
$ |
0.58 |
|
||||
| (A) Includes |
||||||||||||||||
| MEDICAL PROPERTIES TRUST, INC. AND SUBSIDIARIES | ||||||||||||||||
| Reconciliation of Net Loss to Funds From Operations | ||||||||||||||||
| (Unaudited) | ||||||||||||||||
| (Amounts in thousands, except for per share data) | For the Three Months Ended | For the Six Months Ended | ||||||||||||||
| June 30, 2024 | June 30, 2023 | June 30, 2024 | June 30, 2023 | |||||||||||||
| FFO information: | ||||||||||||||||
| Net loss attributable to MPT common stockholders | $ |
(320,635 |
) |
$ |
(42,037 |
) |
$ |
(1,196,260 |
) |
$ |
(9,243 |
) |
||||
| Participating securities' share in earnings |
|
(654 |
) |
|
(469 |
) |
|
(654 |
) |
|
(984 |
) |
||||
| Net loss, less participating securities' share in earnings | $ |
(321,289 |
) |
$ |
(42,506 |
) |
$ |
(1,196,914 |
) |
$ |
(10,227 |
) |
||||
| Depreciation and amortization |
|
117,239 |
|
|
382,244 |
|
|
211,482 |
|
|
484,204 |
|
||||
| Gain on sale of real estate |
|
(384,824 |
) |
|
(167 |
) |
|
(383,401 |
) |
|
(229 |
) |
||||
| Real estate impairment charges |
|
499,324 |
|
|
- |
|
|
499,324 |
|
|
52,104 |
|
||||
| Funds from operations | $ |
(89,550 |
) |
$ |
339,571 |
|
$ |
(869,509 |
) |
$ |
525,852 |
|
||||
| Write-off of billed and unbilled rent and other |
|
1,188 |
|
|
95,642 |
|
|
3,005 |
|
|
135,268 |
|
||||
| Other impairment charges, net |
|
48,885 |
|
|
- |
|
|
741,973 |
|
|
- |
|
||||
| Litigation and other |
|
11,738 |
|
|
2,502 |
|
|
17,608 |
|
|
10,228 |
|
||||
| Share-based compensation adjustments |
|
- |
|
|
(4,363 |
) |
|
- |
|
|
(4,363 |
) |
||||
| Non-cash fair value adjustments |
|
159,247 |
|
|
8,374 |
|
|
380,523 |
|
|
4,253 |
|
||||
| Tax rate changes and other |
|
4,895 |
|
|
(157,230 |
) |
|
4,588 |
|
|
(164,535 |
) |
||||
| Debt refinancing and unutilized financing costs |
|
2,964 |
|
|
816 |
|
|
2,964 |
|
|
816 |
|
||||
| Normalized funds from operations | $ |
139,367 |
|
$ |
285,312 |
|
$ |
281,152 |
|
$ |
507,519 |
|
||||
| Certain non-cash and related recovery information: | ||||||||||||||||
| Share-based compensation | $ |
8,521 |
|
$ |
10,800 |
|
$ |
16,154 |
|
$ |
22,629 |
|
||||
| Debt costs amortization | $ |
4,936 |
|
$ |
5,203 |
|
$ |
9,775 |
|
$ |
10,324 |
|
||||
| Non-cash rent and interest revenue (A) | $ |
- |
|
$ |
(129,494 |
) |
$ |
- |
|
$ |
(150,357 |
) |
||||
| Cash recoveries of non-cash rent and interest revenue (B) | $ |
540 |
|
$ |
2,380 |
|
$ |
6,288 |
|
$ |
33,736 |
|
||||
| Straight-line rent revenue from operating and finance leases | $ |
(40,786 |
) |
$ |
(60,825 |
) |
$ |
(88,032 |
) |
$ |
(123,414 |
) |
||||
| Per diluted share data: | ||||||||||||||||
| Net loss, less participating securities' share in earnings | $ |
(0.54 |
) |
$ |
(0.07 |
) |
$ |
(1.99 |
) |
$ |
(0.02 |
) |
||||
| Depreciation and amortization |
|
0.20 |
|
|
0.64 |
|
|
0.35 |
|
|
0.81 |
|
||||
| Gain on sale of real estate |
|
(0.64 |
) |
|
- |
|
|
(0.64 |
) |
|
- |
|
||||
| Real estate impairment charges |
|
0.83 |
|
|
- |
|
|
0.83 |
|
|
0.09 |
|
||||
| Funds from operations | $ |
(0.15 |
) |
$ |
0.57 |
|
$ |
(1.45 |
) |
$ |
0.88 |
|
||||
| Write-off of billed and unbilled rent and other |
|
- |
|
|
0.16 |
|
|
0.01 |
|
|
0.23 |
|
||||
| Other impairment charges, net |
|
0.08 |
|
|
- |
|
|
1.24 |
|
|
- |
|
||||
| Litigation and other |
|
0.02 |
|
|
- |
|
|
0.03 |
|
|
0.01 |
|
||||
| Share-based compensation adjustments |
|
- |
|
|
- |
|
|
- |
|
|
- |
|
||||
| Non-cash fair value adjustments |
|
0.27 |
|
|
0.01 |
|
|
0.63 |
|
|
- |
|
||||
| Tax rate changes and other |
|
0.01 |
|
|
(0.26 |
) |
|
0.01 |
|
|
(0.27 |
) |
||||
| Debt refinancing and unutilized financing costs |
|
- |
|
|
- |
|
|
- |
|
|
- |
|
||||
| Normalized funds from operations | $ |
0.23 |
|
$ |
0.48 |
|
$ |
0.47 |
|
$ |
0.85 |
|
||||
| Certain non-cash and related recovery information: | ||||||||||||||||
| Share-based compensation | $ |
0.01 |
|
$ |
0.02 |
|
$ |
0.03 |
|
$ |
0.04 |
|
||||
| Debt costs amortization | $ |
0.01 |
|
$ |
0.01 |
|
$ |
0.02 |
|
$ |
0.02 |
|
||||
| Non-cash rent and interest revenue (A) | $ |
- |
|
$ |
(0.22 |
) |
$ |
- |
|
$ |
(0.25 |
) |
||||
| Cash recoveries of non-cash rent and interest revenue (B) | $ |
- |
|
$ |
- |
|
$ |
0.01 |
|
$ |
0.06 |
|
||||
| Straight-line rent revenue from operating and finance leases | $ |
(0.07 |
) |
$ |
(0.10 |
) |
$ |
(0.15 |
) |
$ |
(0.21 |
) |
||||
Notes:
Investors and analysts following the real estate industry utilize funds from operations ("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, including amortization related to in-place lease intangibles, and after adjustments for unconsolidated partnerships and joint ventures.
In addition to presenting FFO in accordance with the Nareit definition, we 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 (if any not paid by our tenants) 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 results of operations or to cash flow from operating activities (computed in accordance with GAAP) as an indicator of our liquidity.
Certain line items above (such as depreciation and amortization) include our share of such income/expense from unconsolidated joint ventures. These amounts are included with all activity of our equity interests in the "(Loss) earnings from equity interests" line on the consolidated statements of income.
(A) Includes revenue accrued during the period but not received in cash, such as deferred rent, payment-in-kind ("PIK") interest or other accruals.
(B) Includes cash received to satisfy previously accrued non-cash revenue, such as the cash receipt of previously deferred rent or PIK interest.
View source version on businesswire.com: https://www.businesswire.com/news/home/20240807354979/en/
Drew Babin, CFA, CMA
Head of Financial Strategy and Investor Relations
Medical Properties Trust, Inc.
(646) 884-9809
dbabin@medicalpropertiestrust.com
Source: Medical Properties Trust, Inc.
FAQ
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