Accelerated Asset Divestiture Strategy with
More Than $480 million of Liquidity Transactions
Medical Properties Trust, Inc. (the “Company” or “MPT”) (NYSE:
MPW) today announced financial and operating results for the fourth
quarter and full-year ended December 31, 2023, as well as certain
events occurring subsequent to quarter end.
- Net loss of ($1.11) and Normalized Funds from Operations
(“NFFO”) of $0.36 for the 2023 fourth quarter and net loss of
($0.93) and NFFO of $1.59 for the full-year 2023, all on a per
share basis. Included in NFFO is approximately $0.12 per share of
revenue from Steward Health Care System (“Steward”) recognized
prior to moving to cash basis accounting effective January 1,
2024;
- Fourth quarter 2023 net loss includes approximately $772
million ($1.29 per share) in non-recurring write-offs and
impairments, primarily related to Steward;
- Entered into agreements in February to divest of five hospitals
to Prime Healthcare (“Prime”) at a 7.4% economic cap rate for $350
million and the sale of MPT’s remaining noncontrolling interest in
a tenant and two under-leased hospitals in South Carolina for
combined proceeds of approximately $17 million; and
- Executed the sale of its syndicated term loan investment in
MEDIAN, the parent of Priory Group (“Priory”), in January for
approximately $115 million (£90 million).
Edward K. Aldag, Jr., Chairman, President and Chief Executive
Officer, said, “Our primary focus is on accelerating our capital
allocation strategy by pursuing transactions expected to generate
at least $2 billion of incremental liquidity in 2024. We are making
progress as evidenced by our recent agreement to sell hospital real
estate to Prime at pricing well above our historical cost and
substantially better than estimates of our implied market
capitalization rate.”
Mr. Aldag continued, “With regard to Steward, we are encouraged
by the amount of interest received to date from other hospital
operators for these mission-critical facilities, and we expect this
real estate portfolio will either resume its contributions to
earnings or become additional sources of liquidity as the year
progresses.”
Included in the financial tables accompanying this press release
is information about the Company’s assets and liabilities,
operating results, and reconciliations of net income (loss) to
NFFO, including per share amounts, all on a basis comparable to
2022 results.
PORTFOLIO UPDATE
Medical Properties Trust has total assets of approximately $18.3
billion, including $12.0 billion of general acute facilities, $2.6
billion of behavioral health facilities and $1.7 billion of
post-acute facilities. As of December 31, 2023, MPT’s portfolio
included 439 properties and approximately 43,000 licensed beds
leased to or mortgaged by 54 hospital operating companies across
the United States as well as in the United Kingdom, Switzerland,
Germany, Spain, Finland, Colombia, Italy and Portugal.
As of December 31, 2023, the Company’s assets include
approximately $5.0 billion of leased real estate and other
investments which will be subject to cash basis accounting in 2024,
with rent and interest only to be recognized as cash is received.
More specifically, effective January 1, 2024, Steward and the
International Joint Venture will become part of this portfolio,
which already included Prospect and other smaller operators. For
much of this portfolio, MPT has started a process to transition
real estate to new tenants, sell, or otherwise monetize these
assets in the near-term. To assist investors in more accurately
assessing MPT’s portfolio, the commentary and tables included below
segregate the fourth quarter operating performance of these “Cash
Basis” assets from the Company’s “Stabilized Portfolio” with
approximately $11.0 billion of total assets and for which accrual
method accounting is appropriate. It is possible that the size and
earnings contribution of these portfolios could be impacted by
future asset sale and other transactions.
Stabilized / Accrual Method Portfolio (approximately $11.0
billion total assets)
Europe (approximately $6.0
billion)
Across MPT’s European portfolio, operators continue to benefit
from improving occupancy rates, growing reimbursement revenue,
normalization of labor costs, and the rapid growth of behavioral
health services.
Circle Health (“Circle”) ($2.1 billion) has maintained its
performance, as the private healthcare market continues to attract
patients in the United Kingdom who are seeking to minimize
diagnostic and surgical waiting times. As previously announced, in
January, Centene completed its sale of Circle’s operations to Pure
Health for $1.2 billion. This transaction provides third-party
validation of the inherent value of MPT’s UK hospital real estate
portfolio and demonstrates that the business of running private
hospitals in the United Kingdom is attractive to a broad, global
investor base.
MEDIAN maintained EBITDARM coverage in the 1.5-2.0x range and
successfully achieved its 2023 financial targets given steadily
improving occupancy, negotiated reimbursement rate increases, and
stabilization of energy expenses. Priory ($1.4 billion) continues
to operate profitably with improving EBITDARM coverage of 2.2x
driven by increases to its already high utilization rate,
reimbursement rate increases, and efficient cost management.
Americas (approximately $5.0
billion)
In MPT’s Americas portfolio, operators have largely maintained
hospital volumes while making significant progress in reducing
contract labor. Behavioral health facilities continue to perform
well driven primarily by revenues from increasing inpatient
volume.
In February, the Company agreed to sell Saint Francis Medical
Center in Lynwood, CA and four properties within the St. Clare’s
system in New Jersey to Prime for $250 million in immediate cash
and a $100 million interest-bearing mortgage note due to MPT in
nine months, representing an approximate $50 million gain on sale
of real estate. Completion of the transaction is subject to
customary conditions and notice provisions.
MPT and Prime have also agreed to combine three hospitals in
Michigan and Missouri previously subject to a lease maturing in
early 2025 with its only other remaining Prime facility (Newark,
NJ) to form a new 20-year master lease with a double-digit
prevailing cash rental yield and inflation-based escalators
collared between 2% and 4%. Further, Prime has agreed to an
approximately $5 million increase in annual escalating cash rents.
Including this increase in rent for the remaining leased
facilities, the St. Francis and St. Clare’s facilities were
transacted at an economic cap rate of 7.4%.
The new lease also includes an option for Prime to repurchase
the facilities at any time for a value of at least $260 million.
Should Prime choose to exercise this purchase option, MPT would
expect to record an additional gain on sale of real estate of
approximately $95 million on the remaining four facilities leased
to Prime.
Cash Basis Portfolio
Steward ($3.5 billion)
As announced in early January, MPT has worked with Steward to
develop an action plan designed to strengthen Steward’s liquidity
and restore its balance sheet, optimize MPT’s ability to recover
unpaid rent and ultimately reduce MPT’s exposure to Steward. MPT
and certain of Steward’s asset backed lenders are negotiating a new
bridge facility whereby it is expected, but there is no assurance,
that each party will fund an initial $37.5 million to Steward,
based on its achievement of certain milestones previously
established in January. MPT has already funded $20 million of such
amount. Any subsequent loan fundings would be contingent on Steward
achieving further significant milestones that optimize the amount
and timing of recoveries for MPT and Steward’s ABL lenders.
Prospect Medical (“Prospect”) ($1.1
billion)
In California, Prospect is current on all rent and interest due
through the end of 2023, and EBITDARM improved year-over-year as a
result of improved admissions, increased Medi-Cal reimbursement
rates and lower supplies costs. Further, the $75 million delayed
draw term loan MPT extended to Prospect in May 2023 was fully drawn
as of December 31, 2023.
OPERATING RESULTS AND OUTLOOK
Net loss for the fourth quarter and year ended December 31, 2023
was ($664 million) (($1.11) per share) and ($556 million) (($0.93)
per share), respectively, compared to ($140 million) (($0.24) per
share) and net income of $903 million ($1.50 per share) in the year
earlier periods. Net loss for the quarter ended December 31, 2023
included several non-recurring write-offs and impairments detailed
in the tables below.
NFFO for the fourth quarter and year ended December 31, 2023 was
$218 million ($0.36 per share) and $951 million ($1.59 per share),
respectively, compared to $258 million ($0.43 per share) and $1,088
million ($1.82 per share) in the year earlier periods.
MPT has expanded its disclosure related to non-cash revenue,
providing information allowing investors to adjust NFFO for
non-cash components of accrued revenue not limited to deferred rent
and payment-in-kind (“PIK”) interest, as well as cash recoveries of
such items. These adjustments as they relate to fourth quarter and
full-year 2023, as well as prior-year reporting, are included in
this release and in the earnings supplemental.
Due to uncertainty regarding its hospitals leased to Steward and
the timing of liquidity transactions, the Company is not providing
an estimate of full-year 2024 net income or normalized funds from
operations.
Q4 2023 Non-Recurring Accounting Adjustment Summary ($
amounts in millions)
Income Statement: Line Item
Impacted
Amount
Description
Rent billed
$
(154
)
Write-off of Steward rent
receivable, including deferred rent on Norwood Hospital, and lease
incentive assets
Straight-line rent
(224
)
Write-off of Steward consolidated
straight-line rent
Interest and other income
(81
)
Write-off of previously disclosed
non-cash interest receivable on loans to Steward and International
JV
Real estate and other impairment
charges, net
(112
)
Steward and other real estate
impairments
Real estate and other impairment
charges, net
(171
)
Steward non-real estate
impairments
Loss from equity interests
(30
)
Massachusetts partnership
straight-line rent and other receivables
Q4 2023 Consolidated Revenue Attribution ($ amounts in
millions)
Stabilized/ Accrual|
Portfolio
Steward1
Prospect and Other
Cash-Basis2
Non- Recurring Charges
Total
Rent billed
$
183
$
48
$
1
$
(154
)
$
78
Straight-line rent
44
13
-
(224
)
(167
)
Income from financing leases
10
-
10
-
20
Interest and other income
15
8
5
(81
)
(53
)
Total revenues
$
252
$
69
$
16
$
(459
)
$
(122
)
Q4 2023 Unconsolidated FFO and NFFO Attribution ($ amounts in
millions)
Stabilized/ Accrual
Portfolio
Steward1
Non- Recurring Charges
Total
Earnings from equity interests
$
5
$
4
$
(30
)
$
(21
)
Depreciation and amortization3
13
5
-
18
MPT share of unconsolidated FFO
18
9
(30
)
(3
)
Normalizing adjustments
-
-
30
30
MPT share of unconsolidated
NFFO
$
18
$
9
-
$
27
1 MPT will account for Steward revenue on
a cash basis, effective January 1, 2024
2 In addition to Prospect, includes
revenue from other smaller tenants, as well as interest income from
MPT’s loan to the International Joint Venture for which interest
will only be recognized as cash is received effective January 1,
2024
3 MPT share of unconsolidated depreciation
and amortization
A reconciliation of net (loss) income to FFO and NFFO, including
per share amounts, can be found in the financial tables
accompanying this press release.
ANNUAL MEETING OF STOCKHOLDERS
Medical Properties Trust also announced that its annual meeting
of stockholders will be at 10:30 a.m. Central Time on May 30, 2024,
in Birmingham, Alabama. Stockholders of record as of March 20,
2024, will be invited to attend.
CONFERENCE CALL AND WEBCAST
The Company has scheduled a conference call and webcast for
February 21, 2024 at 12:00 p.m. Eastern Time to present the
Company’s financial and operating results for the quarter and year
ended December 31, 2023. The dial-in numbers for the conference
call are 877-883-0383 (U.S.) and 412-902-6506 (International) along
with passcode 4099233. 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 March 6, 2024, using dial-in numbers
877-344-7529 (U.S.), 855-669-9658 (Canada) and 412-317-0088
(International) along with passcode 1685767. 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 439 facilities and approximately 43,000
licensed beds in nine countries and across three continents as of
December 31, 2023. 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, future expansion and development
activities, asset sales and other liquidity transactions, expected
returns on investments and expected financial performance.
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)
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; (ii) the risk that MPT is not
able to recover deferred rent or its other investments in Steward
at full value, within a reasonable time period or at all; (iii) the
risk that 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 U.S.
and U.K.; (xiii) federal and state healthcare and other regulatory
requirements, as well as those in the foreign jurisdictions where
we own properties; (xiv) the value of our real estate assets, which
may limit our ability to dispose of assets at attractive prices or
obtain or maintain equity or debt financing secured by our
properties or on an unsecured basis; (xv) the ability of our
tenants and operators to operate profitably and generate positive
cash flow, 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;
(xvi) potential environmental contingencies and other liabilities;
(xvii) the risk that the expected sale of three Connecticut
hospitals currently leased to Prospect does not occur; (xviii) the
risk that MPT is unable to monetize its investment in PHP at full
value within a reasonable time period or at all; and (xix) 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 most recent Annual Report on Form
10-K, 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) December 31, 2023 December 31, 2022
Assets (Unaudited) (A) Real estate assets
Land, buildings and improvements, intangible lease assets, and
other
$
13,237,187
$
13,862,415
Investment in financing leases
1,231,630
1,691,323
Mortgage loans
309,315
364,101
Gross investment in real estate assets
14,778,132
15,917,839
Accumulated depreciation and amortization
(1,407,971
)
(1,193,312
)
Net investment in real estate assets
13,370,161
14,724,527
Cash and cash equivalents
250,016
235,668
Interest and rent receivables
45,059
167,035
Straight-line rent receivables
635,987
787,166
Investments in unconsolidated real estate joint ventures
1,474,455
1,497,903
Investments in unconsolidated operating entities
1,778,640
1,444,872
Other loans
292,615
227,839
Other assets
457,911
572,990
Total Assets
$
18,304,844
$
19,658,000
Liabilities and Equity Liabilities Debt, net
$
10,064,236
$
10,268,412
Accounts payable and accrued expenses
412,178
621,324
Deferred revenue
37,962
27,727
Obligations to tenants and other lease liabilities
156,603
146,130
Total Liabilities
10,670,979
11,063,593
Equity Preferred stock, $0.001 par value. Authorized 10,000
shares; no shares outstanding
-
-
Common stock, $0.001 par value. Authorized 750,000 shares; issued
and outstanding - 598,991 shares at December 31, 2023 and 597,476
599
597
shares at December 31, 2022 Additional paid-in capital
8,560,309
8,535,140
Retained (deficit) earnings
(971,809
)
116,285
Accumulated other comprehensive income (loss)
42,501
(59,184
)
Total Medical Properties Trust, Inc. Stockholders' Equity
7,631,600
8,592,838
Non-controlling interests
2,265
1,569
Total Equity
7,633,865
8,594,407
Total Liabilities and Equity
$
18,304,844
$
19,658,000
(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 Twelve Months Ended
December 31, 2023 December 31, 2022 December 31, 2023 December 31,
2022
Revenues Rent billed
$
78,421
$
231,845
$
803,375
$
968,874
Straight-line rent
(166,769
)
58,045
(127,894
)
204,159
Income from financing leases
19,412
48,920
127,141
203,580
Interest and other income
(53,447
)
41,676
69,177
166,238
Total revenues
(122,383
)
380,486
871,799
1,542,851
Expenses Interest
102,338
92,047
411,171
359,036
Real estate depreciation and amortization
77,295
81,454
603,360
332,977
Property-related (A)
3,298
7,699
41,567
45,697
General and administrative
30,150
42,893
145,588
160,494
Total expenses
213,081
224,093
1,201,686
898,204
Other (expense) income (Loss) gain on sale of real
estate
(2,024
)
(33
)
(1,815
)
536,755
Real estate and other impairment charges, net
(283,619
)
(282,950
)
(376,907
)
(268,375
)
(Losses) earnings from equity interests
(20,873
)
7,194
13,967
40,800
Debt refinancing and unutilized financing benefit (costs)
239
-
285
(9,452
)
Other (including fair value adjustments on securities)
(17,861
)
(5,531
)
7,586
15,344
Total other (expense) income
(324,138
)
(281,320
)
(356,884
)
315,072
(Loss) income before income tax
(659,602
)
(124,927
)
(686,771
)
959,719
Income tax (expense) benefit
(3,982
)
(15,285
)
130,679
(55,900
)
Net (loss) income
(663,584
)
(140,212
)
(556,092
)
903,819
Net income attributable to non-controlling interests
(359
)
(262
)
(384
)
(1,222
)
Net (loss) income attributable to MPT common stockholders
$
(663,943
)
$
(140,474
)
$
(556,476
)
$
902,597
Earnings per common share - basic and diluted: Net
(loss) income attributable to MPT common stockholders
$
(1.11
)
$
(0.24
)
$
(0.93
)
$
1.50
Weighted average shares outstanding - basic
598,984
598,053
598,518
598,634
Weighted average shares outstanding - diluted
598,984
598,053
598,518
598,837
Dividends declared per common share
$
0.15
$
0.29
$
0.88
$
1.16
(A) Includes $0.7 million and $6.0 million of ground lease
and other expenses (such as property taxes and insurance) paid
directly by us and reimbursed by our tenants for the three months
ended December 31, 2023 and 2022, respectively, and $29.3 million
and $36.3 million for the twelve months ended December 31, 2023 and
2022, respectively.
MEDICAL PROPERTIES TRUST, INC. AND
SUBSIDIARIES Reconciliation of Net (Loss) Income to
Funds From Operations (Unaudited)
(Amounts in thousands,
except for per share data) For the Three Months Ended For the
Twelve Months Ended December 31, 2023 December 31, 2022 December
31, 2023 December 31, 2022
FFO information: Net
(loss) income attributable to MPT common stockholders
$
(663,943
)
$
(140,474
)
$
(556,476
)
$
902,597
Participating securities' share in earnings
(349
)
(567
)
(1,644
)
(1,602
)
Net (loss) income, less participating securities' share in earnings
$
(664,292
)
$
(141,041
)
$
(558,120
)
$
900,995
Depreciation and amortization
95,648
98,891
676,132
399,622
Loss (gain) on sale of real estate
2,024
(99
)
1,815
(536,887
)
Real estate impairment charges
112,112
170,582
167,966
170,582
Funds from operations
$
(454,508
)
$
128,333
$
287,793
$
934,312
Write-off of billed and unbilled rent and other
499,335
111
649,911
35,370
Other impairment charges
171,507
112,368
208,941
97,793
Litigation and other
2,899
-
15,886
-
Share-based compensation adjustments
(6,571
)
4,042
(9,691
)
3,076
Non-cash fair value adjustments
8,405
9,466
(34,157
)
(3,097
)
Tax rate changes and other
(2,797
)
3,796
(167,332
)
10,697
Debt refinancing and unutilized financing (benefit) costs
(239
)
-
(285
)
9,452
Normalized funds from operations
$
218,031
$
258,116
$
951,066
$
1,087,603
Certain non-cash and related recovery information:
Share-based compensation
$
10,102
$
12,377
$
42,941
$
46,345
Debt costs amortization
$
4,933
$
5,023
$
20,273
$
19,739
Non-cash rent and interest revenue (C)
$
(57,920
)
$
(47,216
)
$
(239,599
)
$
(120,573
)
Cash recoveries of non-cash rent and interest revenue (D)
$
2,364
$
514
$
38,451
$
1,445
Straight-line rent revenue from operating and finance leases
$
(63,282
)
$
(72,494
)
$
(247,699
)
$
(297,645
)
Per diluted share data: Net (loss) income,
less participating securities' share in earnings
$
(1.11
)
$
(0.24
)
$
(0.93
)
$
1.50
Depreciation and amortization
0.16
0.16
1.13
0.67
Loss (gain) on sale of real estate
-
-
-
(0.90
)
Real estate impairment charges
0.19
0.29
0.28
0.29
Funds from operations
$
(0.76
)
$
0.21
$
0.48
$
1.56
Write-off of billed and unbilled rent and other
0.83
-
1.09
0.06
Other impairment charges
0.29
0.19
0.35
0.16
Litigation and other
-
-
0.03
-
Share-based compensation adjustments
(0.01
)
0.01
(0.02
)
0.01
Non-cash fair value adjustments
0.01
0.02
(0.06
)
(0.01
)
Tax rate changes and other
-
-
(0.28
)
0.02
Debt refinancing and unutilized financing (benefit) costs
-
-
-
0.02
Normalized funds from operations
$
0.36
$
0.43
$
1.59
$
1.82
Certain non-cash and related recovery information:
Share-based compensation
$
0.02
$
0.02
$
0.07
$
0.08
Debt costs amortization
$
0.01
$
0.01
$
0.03
$
0.03
Non-cash rent and interest revenue (C) (E)
$
(0.10
)
$
(0.08
)
$
(0.40
)
$
(0.20
)
Cash recoveries of non-cash rent and interest revenue (D)
$
-
$
-
$
0.06
$
-
Straight-line rent revenue from operating and finance leases (E)
$
(0.11
)
$
(0.12
)
$
(0.41
)
$
(0.50
)
Notes:
(A) 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 "(Losses) earnings from
equity interests" line on the consolidated statements of
income.
(B) 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.
(C) Includes revenue accrued during the period but not received
in cash, such as deferred rent, payment-in-kind ("PIK") interest or
other accruals.
(D) Includes cash received to satisfy previously accrued
non-cash revenue, such as the cash receipt of previously deferred
rent or PIK interest.
(E) Each line includes a portion of non-cash revenue from
Steward in Q4 2023 totaling $0.12 per share.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20240220394795/en/
Drew Babin, CFA, CMA Senior Managing Director of Corporate
Communications Medical Properties Trust, Inc. (646) 884-9809
dbabin@medicalpropertiestrust.com
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