Medical Properties Trust, Inc. Announces 96% June Collections and Completion of Circle Health Lease
June 22 2020 - 8:30AM
Business Wire
Tenants Steadfast in Meeting Obligations to
MPT; 8.9% GAAP Yield in Effect for Circle Health Investment
Medical Properties Trust, Inc. (the “Company” or “MPT”) (NYSE:
MPW) today provided an update on June rent and loan payment
collections and announced, as expected, the completion of its £1.5B
lease agreement with UK-based hospital operator Circle Health.
Financial Health of MPT Operators Evident in June Collections,
Repayment Agreements
In addition to having received June rent and loan payments
consistent with April and May at 96% of amounts due, MPT has
reached agreements in principle to collect all amounts, with
interest, deferred by certain operators during the COVID-19
pandemic.
Circle Health Master Lease Structure Completed to Reflect
Enhanced Rent Growth Profile
As expected, the 8.9% GAAP yield on MPT’s master lease to Circle
Health became effective concurrent with the finalization of an
amendment introducing a 2% minimum annual cash rent escalator to
the full and extended terms of the agreement. MPT began to
recognize the related additional straight-line rent on June 16.
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
hospitals with 389 facilities and more than 41,000 licensed beds in
eight countries and across three continents. 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.
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, 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) the economic,
political and social impact of, and uncertainty relating to, the
COVID-19 pandemic, including governmental assistance to hospitals
and healthcare providers, including certain of our tenants; (ii)
the ability of our tenants, operators and borrowers to satisfy
their obligations under their respective contractual arrangements
with us, especially as a result of the adverse economic impact of
the COVID-19 pandemic, and government regulation of hospitals and
healthcare providers in connection with same, such as mandatory
deferrals of non-critical surgeries and intake of COVID-19 patients
(as further detailed in our Current Report on Form 8-K filed with
the SEC on April 8, 2020); (iii) our expectations regarding annual
run-rate net income and NFFO per share; (iv) our success in
implementing our business strategy and our ability to identify,
underwrite, finance, consummate and integrate acquisitions and
investments; (v) the nature and extent of our current and future
competition; (vi) macroeconomic conditions, such as a disruption of
or lack of access to the capital markets; (vii) our ability to
obtain debt financing on attractive terms or at all, which may
adversely impact our ability to pursue acquisition and development
opportunities and pay down, refinance, restructure or extend our
indebtedness as it becomes due; (viii) increases in our borrowing
costs as a result of changes in interest rates and other factors,
including the potential phasing out of LIBOR after 2021; (ix)
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; (x) factors affecting the real estate
industry generally or the healthcare real estate industry in
particular; (xi) our ability to maintain our status as a REIT for
federal and state income tax purposes; (xii) federal and state
healthcare and other regulatory requirements, as well as those in
the foreign jurisdictions where we own properties; (xiii) 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; (xiv)
the ability of our tenants and operators to comply with applicable
laws, rules and regulations in the operation of the our properties,
to deliver high-quality services, to attract and retain qualified
personnel and to attract residents and patients; and (xv) potential
environmental contingencies and other liabilities.
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 Report on Form 10-K for the
year ended December 31, 2019 and as updated by the Company’s
subsequently filed Quarterly Reports on Form 10-Q and other SEC
filings. 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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version on businesswire.com: https://www.businesswire.com/news/home/20200622005340/en/
Drew Babin, CFA Sr. Managing Director – Corporate Communications
Medical Properties Trust, Inc. (646) 884-9809
dbabin@medicalpropertiestrust.com
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