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8-K - FORM 8-K - MEDICAL PROPERTIES TRUST INC | g27107e8vk.htm |
EX-99.1 - EX-99.1 - MEDICAL PROPERTIES TRUST INC | g27107exv99w1.htm |
Exhibit 99.2
1st Quarter 2011 Supplemental Information
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
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
(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 Companys 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 Companys website at www.medicalpropertiestrust.com. The information
contained on the Companys 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)
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 managements 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)
(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