Medical Properties Trust Sells North Cypress Medical Center to HCA for $148 Million Resulting in Approximate $100 Million Gain
September 06 2018 - 4:05PM
Business Wire
Transaction Yields 5.6% Exit Cap Rate and
17% Unlevered IRR
Medical Properties Trust, Inc. (“MPT” or the “Company”) (NYSE:
MPW), today announced that it has completed the sale of North
Cypress Medical Center, a 139-bed acute care hospital located in
Cypress, Texas near Houston, to Hospital Corporation of America
(“HCA”). The $148 million sale to HCA resulted in an approximate
$100 million gain for MPT and an unlevered internal rate of return
of more than 17% since the completion of development in 2007. The
company expects to use proceeds to make additional investments
in U.S. hospital real estate and for other corporate purposes.
“North Cypress Medical Center was founded by local physicians
who wanted to create a sophisticated, upscale experience for
patients in the Houston community,” said Edward K. Aldag, Jr.,
MPT’s Chairman, President and CEO. “We were pleased to develop this
magnificent facility for Dr. Robert Behar, the hospital’s founder,
Chairman and CEO, beginning in 2005, the same year that Medical
Properties Trust became a publicly-traded company.
“Through investments such as North Cypress MPW has generated
shareholder returns far exceeding benchmark REIT indices and also
the S&P 500 over the past ten years and since our IPO. This
transaction again indicates the outstanding value that exists in
MPT’s portfolio,” added Aldag.
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 helps facilitate acquisitions and recapitalizations
and allows operators of hospitals and other healthcare facilities
to unlock the value of their real estate assets to fund facility
improvements, technology upgrades and other investments in
operations. 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: the
satisfaction of all conditions to, and the timely closing (if at
all) of pending transactions; the amount of acquisitions of
healthcare real estate, if any; results from potential sales and
joint venture arrangements, if any; 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 December 31, 2017 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.
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version on businesswire.com: https://www.businesswire.com/news/home/20180906005898/en/
Medical Properties Trust, Inc.Tim Berryman, 205-969-3755Director
– Investor Relationstberryman@medicalpropertiestrust.com
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