Results Consistent with Expectations Following Mid-Quarter Debt Refinancing

BIRMINGHAM, Ala., May 01, 2025--(BUSINESS WIRE)--Medical Properties Trust, Inc. (the "Company" or "MPT") (NYSE: MPW) today announced financial and operating results for the first quarter ended March 31, 2025, as well as certain events occurring subsequent to quarter end.

• Net loss of ($0.20) and Normalized Funds from Operations ("NFFO") of $0.14 for the 2025 first quarter on a per share basis. First quarter net loss includes approximately $73 million ($0.12 per share) in impairments and fair market value adjustments related to Prospect Medical Group ("Prospect") and PHP Holdings ("PHP");
• Realized a 2.3% weighted average year-over-year inflation-based rent escalator for stabilized tenants;
• Commenced scheduled collection of cash rent from replacement operators at hospitals in Florida, Texas, and Louisiana;
• Completed a well-oversubscribed private offering of more than $2.5 billion of senior secured notes due in 2032 at a blended coupon rate of 7.885% and simultaneously amended its approximately $1.3 billion revolving line of credit, with a fully extended (at MPT’s option) maturity, in June 2027, to share in the related collateral; and
• Paid a regular quarterly dividend of $0.08 per share in April.

Edward K. Aldag, Jr., Chairman, President and Chief Executive Officer, said, "Our first quarter transactions and results are the culmination of two years of successful efforts to reduce debt, extend maturities, capture unrealized value and re-tenant hospital real estate at attractive and sustainable rents. MPT is well positioned to grow earnings from our existing in-place real estate portfolio, access capital for accretive growth in a uniquely attractive market and deliver growing dividends and other returns to our shareholders."

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 2024 results.

PORTFOLIO UPDATE

Medical Properties Trust has total assets of approximately $14.9 billion, including $8.7 billion of general acute facilities, $2.4 billion of behavioral health facilities and $1.6 billion of post-acute facilities. As of March 31, 2025, MPT’s portfolio included 393 properties and approximately 39,000 licensed beds leased to or mortgaged by 53 hospital operating companies across the United States as well as in the United Kingdom, Switzerland, Germany, Spain, Finland, Colombia, Italy and Portugal.

Across regions and asset types, operators are reporting solid top-line growth and stable EBITDARM coverage on both a year-over-year and sequential basis.

In Europe, hospitals continue to benefit from strong reimbursement and patient acuity trends. In the United Kingdom, three operators in MPT’s portfolio have been nominated for Health Investors’ Private Hospital Group of the Year – Circle Health, Priory, and Ramsay. In April, MPT agreed to fund its pro rata share of a modest new investment made by Infracore, its Swiss joint venture.

Performance in the United States continues to be driven by increased admissions in both general acute care facilities and behavioral care settings.

MPT remains encouraged by the performance of the new tenants to which it has transferred the operations of properties in Florida, Texas, Arizona, Louisiana and Pennsylvania. These operators remain focused on ramping capacity, driving higher volumes, and upgrading facilities. Through the first quarter, and with the exception of approximately $100,000 in rent related to two Ohio facilities, MPT has collected all cash rent owed by these tenants.

Prospect’s in-court restructuring process which commenced in January remains underway. In March, the Bankruptcy Court approved a settlement agreement between MPT, Prospect and certain other parties that will enable Prospect to sell its hospitals and the related real estate with MPT’s cooperation. First quarter impairments and fair market value adjustments related to Prospect and PHP are based on third party appraisals and approved restructuring terms, and MPT’s actual recoveries may ultimately differ from the adjusted book values.

OPERATING RESULTS

Net loss for the first quarter ended March 31, 2025 was ($118 million) (($0.20) per share), compared to a net loss of ($876 million) (($1.46) per share) in the year earlier period.

NFFO for the first quarter ended March 31, 2025 was $81 million ($0.14 per share), compared to $142 million ($0.24 per share) in the year earlier period. Compared to 2024’s fourth quarter results, NFFO for 2025’s first quarter reflects an increase in interest expense approximating $14 million ($0.025 per share) related to the previously described $2.5 billion secured notes financing and a decrease in cash rent due to a catch-up of $10 million ($0.015 per share) cash rent received from an in-default tenant late in 2024’s fourth quarter.

CONFERENCE CALL AND WEBCAST

The Company has scheduled a conference call and webcast for May 1, 2025 at 11:00 a.m. Eastern Time to present the Company’s financial and operating results for the quarter ended March 31, 2025. The dial-in numbers for the conference call are 800-715-9871 (North America) and 646-307-1963 (International) along with passcode 5278552. 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. The telephone replay will be available through May 8, 2025, using dial-in numbers 800-770-2030 (North America) and 609-800-9909 (International) along with passcode 5278552. The webcast replay will be available for one year following the call’s completion on the Investor Relations section of the Company’s website.

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 Birmingham, Alabama, the Company has grown to become one of the world’s largest owners of hospital real estate with 393 facilities and approximately 39,000 licensed beds in nine countries and across three continents as of March 31, 2025. MPT’s financing model facilitates acquisitions and recapitalizations and allows operators of hospitals to unlock the value of their real estate assets to fund facility improvements, technology upgrades and other investments in operations. For more information, please visit the Company’s website at www.medicalpropertiestrust.com.

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 re-tenanting of facilities and any related regulatory approvals, and expected outcomes from Prospect’s Chapter 11 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 outcome and terms of the bankruptcy restructuring of Prospect will not be consistent with those anticipated by the Company; (ii) our success in implementing our business strategy and our ability to identify, underwrite, finance, consummate and integrate acquisitions and investments; (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 or modify the terms of 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 ability of our tenants and operators to operate profitably and generate positive cash flow, remain solvent, comply with applicable laws, rules and regulations in the operation of our properties, to deliver high-quality services, to attract and retain qualified personnel and to attract patients; (viii) the risk that we are unable to monetize our investments in certain tenants at full value within a reasonable time period or at all; and (ix) the risks and uncertainties of litigation or other regulatory proceedings.

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 Annual Reports on Form 10-K and our Quarterly Reports on 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.

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Contacts

Drew Babin, CFA, CMA
Head of Financial Strategy and Investor Relations
Medical Properties Trust, Inc.
(646) 884-9809
dbabin@medicalpropertiestrust.com