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8-K - FORM 8-K - MEDICAL PROPERTIES TRUST INCg27107e8vk.htm
EX-99.1 - EX-99.1 - MEDICAL PROPERTIES TRUST INCg27107exv99w1.htm
Exhibit 99.2
(MEDICAL PROPERTIES TRUST LOGO)
1st Quarter 2011 Supplemental Information
(PICTURE)
Bucks County Specialty Hospital, Bensalem, Pennsylvania
Medical Properties Trust, Inc.
1000 Urban Center Drive, Suite 501
Birmingham, AL 35242
(205) 969-3755
www.medicalpropertiestrust.com
Contact: Charles Lambert, Director of Finance
(205) 397-8897 or clambert@medicalpropertiestrust.com

 


 

Table Of Contents
         
Company Information
    1  
 
       
Reconciliation of Net Income (loss) to Funds from Operations
    2  
 
       
Investment by Asset Type, Operator, and by State
    3  
 
       
Lease Maturity Schedule
    4  
 
       
Debt Summary
    5  
 
       
Consolidated Balance Sheets
    6  
 
       
Acquisitions for the Three Months Ended March 31, 2011
    7  
The information in this supplemental information package should be read in conjunction with the Company’s Annual Report on Form 10-K, Quarterly Reports on Form 10-Q, Current Reports on Form 8-K and other information filed with the Securities and Exchange Commission. You can access these documents free of charge at www.sec.gov and from the Company’s website at www.medicalpropertiestrust.com. The information contained on the Company’s website is not incorporated by reference into, and should not be considered a part of, this supplemental pakcage.
For more information, please contact Charles Lambert, Finance Director at (205) 397-8897.

 


 

Company Information
     
Headquarters:
  Medical Properties Trust, Inc.
 
  1000 Urban Center Drive, Suite 501
 
  Birmingham, AL 35242
 
  (205) 969-3755
 
  Fax: (205) 969-3756
 
   
Website:
  www.medicalpropertiestrust.com
 
   
Executive Officers:
  Edward K. Aldag, Jr., Chairman, President and Chief Executive Officer R. Steven Hamner, Executive Vice President and Chief Financial Officer Emmett E. McLean, Executive Vice President, Chief Operating Officer Secretary and Treasurer
 
   
Investor Relations:
  Medical Properties Trust, Inc.
 
  1000 Urban Center Drive, Suite 501
 
  Birmingham, AL 35242
 
  Attn: Charles Lambert
 
  (205) 397-8897
 
  clambert@medicalpropertiestrust.com

1


 

Reconciliation of Net Income (loss) to Funds from Operations
MEDICAL PROPERTIES TRUST, INC. AND SUBSIDIARIES
Reconciliation of Net Income (Loss) to Funds From Operations

(Unaudited)
                 
    For the Three Months Ended  
    March 31, 2011     March 31, 2010  
FFO information:
               
Net income (loss) attributable to MPT common stockholders
  $ 10,779,607     $ (2,821,970 )
Participating securities’ share in earnings
    (315,360 )     (350,721 )
 
           
Net income (loss) , less participating securities’ share in earnings
  $ 10,464,247     $ (3,172,691 )
 
               
Depreciation and amortization
               
Continuing operations
    7,893,256       6,124,892  
Discontinued operations
          755,214  
Gain on sale of real estate
    (5,324 )     (16,069 )
 
           
Funds from operations
  $ 18,352,179     $ 3,691,346  
 
Acquisition costs
    2,039,971       64,640  
Loan impairment charge
          12,000,000  
 
           
Normalized funds from operations
  $ 20,392,150     $ 15,755,986  
 
Share-based compensation
    1,837,709       1,529,734  
Debt costs amortization
    986,955       1,477,390  
Additional rent received in advance
    (300,000 )      
Straight-line rent revenue
    (1,734,673 )     (1,810,770 )
 
           
Adjusted funds from operations
  $ 21,182,141     $ 16,952,340  
 
           
 
               
Per diluted share data:
               
Net income (loss) , less participating securities’ share in earnings
  $ 0.09     $ (0.04 )
Depreciation and amortization
               
Continuing operations
    0.08       0.08  
Discontinued operations
          0.01  
Gain on sale of real estate
           
 
           
Funds from operations
  $ 0.17     $ 0.05  
 
Acquisition costs
    0.01        
Loan impairment charge
          0.15  
 
           
Normalized funds from operations
  $ 0.18     $ 0.20  
 
Share-based compensation
    0.02       0.02  
Debt costs amortization
    0.01       0.01  
Additional rent received in advance
           
Straight-line rent revenue
    (0.02 )     (0.02 )
 
           
Adjusted funds from operations
  $ 0.19     $ 0.21  
 
           
Funds from operations, or FFO, represents net income (computed in accordance with GAAP), excluding gains (or losses) from sales of property, plus real estate related depreciation and amortization (excluding amortization of deferred financing costs). Management considers funds from operations a useful additional measure of performance for an equity REIT because it facilitates an understanding of the operating performance of our properties without giving effect to real estate depreciation and amortization, which assumes that the value of real estate assets diminishes predictably over time. Since real estate values have historically risen or fallen with market conditions, we believe that funds from operations provides a meaningful supplemental indication of our performance. We compute funds from operations in accordance with standards established by the Board of Governors of the National Association of Real Estate Investment Trusts, or NAREIT, in its March 1995 White Paper (as amended in November 1999 and April 2002), which may differ from the methodology for calculating funds from operations utilized by other equity REITs and, accordingly, may not be comparable to such other REITs. FFO does not represent amounts available for management’s discretionary use because of needed capital replacement or expansion, debt service obligations, or other commitments and uncertainties, nor is it indicative of funds available to fund our cash needs, including our ability to make distributions. Funds from operations should not be considered as an alternative to net income (loss) (computed in accordance with GAAP) as indicators of our financial performance or to cash flow from operating activities (computed in accordance with GAAP) as an indicator of our liquidity.
We calculate adjusted funds from operations, or AFFO, by subtracting from or adding to normalized FFO (i) straight-line rent revenue, (ii) non-cash share-based compensation expense, and (iii) amortization of deferred financing costs. AFFO is an operating measurement that we use to analyze our results of operations based on the receipt, rather than the accrual, of our rental revenue and on certain other adjustments. We believe that this is an important measurement because our leases generally have significant contractual escalations of base rents and therefore result in recognition of rental income that is not collected until future periods, and costs that are deferred or are non-cash charges. Our calculation of AFFO may not be comparable to AFFO or similarly titled measures reported by other REITs. AFFO should not be considered as an alternative to net income (calculated pursuant to GAAP) as an indicator of our results of operations or to cash flow from operating activities (calculated pursuant to GAAP) as an indicator of our liquidity.

2


 

Investments and Revenue by Asset Type — As of March 31, 2011
                                 
    Real Estate   Percentage   Total   Percentage
    Assets   of Total Assets   Revenue   of Total Revenue
         
General Acute Care Hospitals
  $ 896,967,648       61.9 %   $ 21,103,358       59.1 %
Long-term Acute Care Hospitals
    324,015,250       22.3 %     9,024,417       25.3 %
Medical Office Buildings
    15,795,436       1.1 %     432,755       1.2 %
Rehabilitation Hospitals
    182,468,168       12.6 %     4,722,769       13.2 %
Wellness Centers
    15,624,817       1.1 %     415,339       1.2 %
Net other assets
    14,216,593       1.0 %            
         
 
                               
Total
  $ 1,449,087,912       100.0 %   $ 35,698,638       100.00 %
         
Investments and Revenue by Operator — As of March 31, 2011
                                 
    Real Estate   Percentage   Total   Percentage
    Assets   of Total Assets   Revenue   of Total Revenue
         
Prime Healthcare
  $ 430,112,248       29.7 %   $ 10,862,243       30.4 %
Vibra Healthcare, LLC
    133,807,423       9.2 %     4,463,361       12.5 %
HealthSouth Corporation
    97,757,589       6.7 %     2,472,222       6.9 %
RehabCare
    83,434,567       5.8 %     1,875,053       5.3 %
Reliant Healthcare Partners
    73,851,400       5.1 %     1,903,487       5.3 %
14 other operators
    615,908,092       42.5 %     14,122,272       39.6 %
Net other assets
    14,216,593       1.0 %            
         
 
Total
  $ 1,449,087,912       100.0 %   $ 35,698,638       100.00 %
         
Investment and Revenue by State — As of March 31, 2011
                                 
    Real Estate   Percentage   Total   Percentage
    Assets   of Total Assets   Revenue   of Total Revenue
         
California
  $ 455,222,748       31.4 %   $ 11,703,945       32.8 %
Texas
    346,917,126       23.9 %     8,457,296       23.7 %
Utah
    66,355,303       4.6 %     1,650,016       4.6 %
Missouri
    60,921,029       4.2 %     1,278,806       3.6 %
New Jersey
    58,000,000       4.0 %     1,038,889       2.9 %
17 other states
    447,455,113       30.9 %     11,569,686       32.4 %
Net other assets
    14,216,593       1.0 %            
         
 
Total
  $ 1,449,087,912       100.0 %   $ 35,698,638       100.00 %
         

3


 

Lease Maturity Schedule — As of March 31, 2011
(Dollars in thousands)
                         
                  Percentage of total  
Total portfolio (1)   Total leases     Base rent(2)     base rent  
2011
    3     $ 5,656       6.0 %
2012
    3       2,850       3.0 %
2013
                0.0 %
2014
    2       4,731       5.1 %
2015
    2       3,789       4.0 %
2016
                0.0 %
2017
                0.0 %
2018
    12       16,939       18.0 %
2019
    2       8,166       8.7 %
2020
    2       3,208       3.4 %
Thereafter
    23       48,611       51.8 %
 
                 
 
    49     $ 93,950       100 %
 
                 
 
(1)   Excludes our River Oaks facility, as it is currently under re-development and not subject to lease and our Florence facility that is under development.
 
(2)   The most recent monthly base rent annualized. Base rent does not include tenant recoveries, additional rents and other lease-related adjustments to revenue (i.e., straight-line rents and deferred revenues).

4


 

Debt Summary as of March 31, 2011
                                                                         
                            Amounts Due  
Instrument   Rate Type     Rate     Balance     2011     2012     2013     2014     2015     Thereafter  
2010 Credit Facility Term Loan
  Variable     5.00 %   $ 142,375,000     $ 1,125,000     $ 1,500,000     $ 1,500,000     $ 1,500,000     $ 1,500,000     $ 135,250,000  
BB&T Revolver
  Variable     1.76 %     40,400,000       800,000       39,600,000                          
2010 Credit Facility Revolver
  Variable     3.27 %     58,000,000                   58,000,000                    
2016 Unsecured Notes
  Fixed     7.71 %(1)     125,000,000                                     125,000,000  
2006 Exchangeable Notes
  Fixed     6.13 %     9,175,000       9,175,000                                
2008 Exchangeable Notes
  Fixed     9.25 %     82,000,000                   82,000,000                    
Union Bank and Trust Term Loan
  Fixed     5.66 %     8,363,336       8,363,336                                
Northland — Mortgage Capital Term Loan
  Fixed     6.20 %     14,592,557       163,285       231,789       249,384       265,521       282,701       13,399,877  
 
                                                         
 
                  $ 479,905,893     $ 19,626,621     $ 41,331,789     $ 141,749,384     $ 1,765,521     $ 1,782,701     $ 273,649,877  
 
                                                         
 
      Debt Discount     (3,552,431 )                                                
 
                                                                     
 
                  $ 476,353,462                                                  
 
                                                                     
Notes: Subsequent to March 31, 2011, the Company repaid and terminated the 2010 Credit Facility Term Loan and Revolver and the Union Bank and Trust Term Loan with the proceeds of a $450 million 6.875% Unsecured Senior Note Offering. As of April 26, 2011, the Company has a $330 million unsecured revolving credit facility with spreads over LIBOR ranging from 2.60% to 3.40%.
(1) Represents weighted-average rate for four traunches of these Notes. The Company has entered into two swap agreements that begin in July and October 2011. Beginning July 31, 2011, the Company will pay 5.507% on $65 million of the Notes and beginning October 31, 2011, the Company will pay 5.675% on $60 million of Notes.

5


 

Consolidated Balance Sheets
MEDICAL PROPERTIES TRUST, INC. AND SUBSIDIARIES
Consolidated Balance Sheets
                 
    March 31, 2011     December 31, 2010  
    (Unaudited)          
Assets
               
Real estate assets
               
Land, buildings and improvements, and intangible lease assets
  $ 1,223,512,488     $ 1,032,369,288  
Mortgage loans
    165,000,000       165,000,000  
 
           
Gross investment in real estate assets
    1,388,512,488       1,197,369,288  
Accumulated depreciation and amortization
    (83,987,612 )     (76,094,356 )
 
           
Net investment in real estate assets
    1,304,524,876       1,121,274,932  
 
               
Cash and cash equivalents
    7,009,911       98,408,509  
Interest and rent receivable
    26,977,437       26,175,635  
Straight-line rent receivable
    30,674,923       28,911,861  
Other loans
    55,867,707       50,984,904  
Other assets
    24,033,058       23,057,868  
 
           
Total Assets
  $ 1,449,087,912     $ 1,348,813,709  
 
           
 
               
Liabilities and Equity
               
Liabilities
               
Debt, net
  $ 476,353,462     $ 369,969,691  
Accounts payable and accrued expenses
    37,817,906       35,974,314  
Deferred revenue
    20,877,232       23,136,926  
Lease deposits and other obligations to tenants
    23,768,362       20,156,716  
 
           
Total liabilities
    558,816,962       449,237,647  
 
               
Medical Properties Trust, Inc. stockholders’ equity
               
Preferred stock, $0.001 par value. Authorized 10,000,000 shares; no shares outstanding
           
Common stock, $0.001 par value. Authorized 150,000,000 shares; issued and outstanding - 110,404,517 at March 31, 2011, and 110,225,052 shares at December 31, 2010
    110,405       110,225  
Additional paid in capital
    1,053,590,169       1,051,785,240  
Distributions in excess of net income
    (160,154,152 )     (148,530,467 )
Accumulated other comprehensive loss
    (3,123,740 )     (3,640,751 )
Treasury shares, at cost
    (262,343 )     (262,343 )
 
           
Total Medical Properties Trust, Inc. stockholders’ equity
    890,160,339       899,461,904  
 
           
 
               
Non-controlling interests
    110,611       114,158  
 
           
Total Equity
    890,270,950       899,576,062  
 
           
 
               
Total Liabilities and Equity
  $ 1,449,087,912     $ 1,348,813,709  
 
           

6


 

Acquisitions for the Three Months Ended March 31, 2011
(Dollars in thousands)
               
Name   Location   Property Type   Investment
Gilbert Hospital
  Gilbert, AZ   General Acute Care   $ 17,100
Atrium Medical Center
  Corinth, TX   LTACH     30,000
Bayonne Medical Center
  Bayonne, NJ   General Acute Care     58,000
Alvarado Hospital
  San Diego, CA   General Acute Care     70,000
Northland LTACH Hospital
  Kansas City, MO   LTACH     19,489
 
           
 
             
Total Investments
          $ 194,589
 
           

7