Attached files
| file | filename |
|---|---|
| 8-K - FORM 8-K - MEDICAL PROPERTIES TRUST INC | d479927d8k.htm |
| EX-99.1 - EX-99.1 - MEDICAL PROPERTIES TRUST INC | d479927dex991.htm |
Exhibit 99.2
4 Q
Investing In the future of healthcare.
MPT
Medical Properties Trust
FOURTH QUARTER 2012
SUPPLEMENTAL INFORMATION
|
Table of Contents |
| Company Information |
1 | |||
| Reconciliation of Net Income to Funds from Operations |
2 | |||
| Investment and Revenue by Asset Type, Operator and by State |
3 | |||
| Lease Maturity Schedule |
4 | |||
| Debt Summary |
5 | |||
| Consolidated Balance Sheets |
6 | |||
| Acquisitions and Operating Investments and Related Results |
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 package.
For more information, please contact:
Charles Lambert, Managing Director - Capital Markets 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
MPW
LISTED
NYSE®
MEDICAL PROPERTIES TRUST, INC. AND SUBSIDIARIES
Reconciliation of Net Income to Funds From Operations
(Unaudited)
| For the Three Months Ended | For the Twelve Months Ended | |||||||||||||||
| December 31, 2012 |
December 31, 2011 |
December 31, 2012 |
December 31, 2011 |
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| (A) | (A) | |||||||||||||||
| FFO information: |
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| Net income attributable to MPT common stockholders |
$ | 28,555,960 | $ | 12,692,077 | $ | 89,899,695 | $ | 26,535,892 | ||||||||
| Participating securities’ share in earnings |
(171,473 | ) | (229,415 | ) | (886,374 | ) | (1,089,841 | ) | ||||||||
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| Net income, less participating securities’ share in earnings |
$ | 28,384,487 | $ | 12,462,662 | $ | 89,013,321 | $ | 25,446,051 | ||||||||
| Depreciation and amortization: |
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| Continuing operations |
8,390,401 | 8,624,094 | 33,545,383 | 30,895,697 | ||||||||||||
| Discontinued operations |
52,190 | 1,407,158 | 1,310,302 | 3,813,587 | ||||||||||||
| Loss (gain) on sale of real estate |
(9,089,008 | ) | (5,426,067 | ) | (16,369,188 | ) | (5,431,391 | ) | ||||||||
| Real estate impairment charge |
— | — | — | 564,005 | ||||||||||||
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| Funds from operations |
$ | 27,738,070 | $ | 17,067,847 | $ | 107,499,818 | $ | 55,287,949 | ||||||||
| Write-off straight line rent |
4,816,433 | 2,470,436 | 6,456,272 | 2,470,436 | ||||||||||||
| Acquisition costs |
1,305,731 | 998,530 | 5,420,427 | 4,184,463 | ||||||||||||
| Debt refinancing costs |
— | — | — | 14,214,036 | ||||||||||||
| Write-off of other receivables |
— | — | — | 1,845,966 | ||||||||||||
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| Normalized funds from operations |
$ | 33,860,234 | $ | 20,536,813 | $ | 119,376,517 | $ | 78,002,850 | ||||||||
| Share-based compensation |
2,207,235 | 1,690,793 | 7,637,420 | 6,983,471 | ||||||||||||
| Debt costs amortization |
880,777 | 766,608 | 3,458,797 | 3,537,876 | ||||||||||||
| Additional rent received in advance (B) |
(300,000 | ) | (300,000 | ) | (1,200,000 | ) | (1,200,000 | ) | ||||||||
| Straight-line rent revenue and other |
(3,907,388 | ) | (1,536,330 | ) | (11,696,822 | ) | (7,353,316 | ) | ||||||||
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| Adjusted funds from operations |
$ | 32,740,858 | $ | 21,157,884 | $ | 117,575,912 | $ | 79,970,881 | ||||||||
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| Per diluted share data: |
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| Net income, less participating securities’ share in earnings |
$ | 0.21 | $ | 0.11 | $ | 0.67 | $ | 0.23 | ||||||||
| Depreciation and amortization: |
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| Continuing operations |
0.07 | 0.08 | 0.25 | 0.28 | ||||||||||||
| Discontinued operations |
— | 0.01 | 0.01 | 0.04 | ||||||||||||
| Loss (gain) on sale of real estate |
(0.07 | ) | (0.05 | ) | (0.12 | ) | (0.05 | ) | ||||||||
| Real estate impairment charge |
— | — | — | — | ||||||||||||
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| Funds from operations |
$ | 0.21 | $ | 0.15 | $ | 0.81 | $ | 0.50 | ||||||||
| Write-off straight line rent |
0.03 | 0.03 | 0.05 | 0.02 | ||||||||||||
| Acquisition costs |
0.01 | 0.01 | 0.04 | 0.04 | ||||||||||||
| Debt refinancing costs |
— | — | — | 0.13 | ||||||||||||
| Write-off of other receivables |
— | — | — | 0.02 | ||||||||||||
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| Normalized funds from operations |
$ | 0.25 | $ | 0.19 | $ | 0.90 | $ | 0.71 | ||||||||
| Share-based compensation |
0.02 | 0.01 | 0.06 | 0.06 | ||||||||||||
| Debt costs amortization |
0.01 | 0.01 | 0.03 | 0.03 | ||||||||||||
| Additional rent received in advance (B) |
(0.01 | ) | — | (0.01 | ) | (0.01 | ) | |||||||||
| Straight-line rent revenue and other |
(0.03 | ) | (0.02 | ) | (0.09 | ) | (0.07 | ) | ||||||||
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| Adjusted funds from operations |
$ | 0.24 | $ | 0.19 | $ | 0.89 | $ | 0.72 | ||||||||
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| (A) | Financials have been restated to reclass the operating results of certain properties sold in 2012 to discontinued operations. |
| (B) | Represents additional rent from one tenant received in advance of when we can recognize as revenue for accounting purposes. This additional rent is being recorded to revenue on a straight-line basis over the lease life. |
Investors and analysts following the real estate industry utilize funds from operations, or 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 and after adjustments for unconsolidated partnerships and joint ventures.
In addition to presenting FFO in accordance with the NAREIT definition, we also 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 necessary 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 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) unbilled 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 |
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INVESTMENT AND REVENUE BY ASSET TYPE, OPERATOR AND BY STATE
Investments and Revenue by Asset Type - As of December 31, 2012
| Total Assets | Percentage of Total Assets |
Total Revenue | Percentage of Total Revenue |
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| General Acute Care Hospitals |
$ | 1,216,087,741 | 52.7 | % | $ | 111,283,677 | 55.3 | % | ||||||||
| Long-Term Acute Care Hospitals |
482,647,872 | 20.9 | % | 50,915,725 | 25.3 | % | ||||||||||
| Medical Office Buildings |
15,795,436 | 0.7 | % | 1,889,017 | 0.9 | % | ||||||||||
| Rehabilitation Hospitals |
392,863,857 | 17.0 | % | 35,647,641 | 17.7 | % | ||||||||||
| Wellness Centers |
15,624,817 | 0.7 | % | 1,661,358 | 0.8 | % | ||||||||||
| Other assets |
182,599,568 | 8.0 | % | — | — | |||||||||||
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| Total gross assets |
2,305,619,291 | 100.0 | % | |||||||||||||
| Accumulated depreciation and amortization |
(126,733,639 | ) | ||||||||||||||
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| Total |
$ | 2,178,885,652 | $ | 201,397,418 | 100.0 | % | ||||||||||
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Investments and Revenue by Operator - As of December 31, 2012
| Total Assets | Percentage of Total Assets |
Total Revenue | Percentage of Total Revenue |
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| Prime Healthcare |
$ | 607,919,162 | 26.4 | % | $ | 55,002,074 | 27.3 | % | ||||||||
| Ernest Health, Inc. |
414,456,341 | 18.0 | % | 37,401,517 | 18.6 | % | ||||||||||
| IJKG/HUMC |
126,401,831 | 5.5 | % | 16,196,451 | 8.0 | % | ||||||||||
| Vibra Healthcare |
89,965,519 | 3.9 | % | 11,609,175 | 5.8 | % | ||||||||||
| Kindred Healthcare |
83,434,567 | 3.6 | % | 8,491,200 | 4.2 | % | ||||||||||
| 17 other operators |
800,842,303 | 34.6 | % | 72,697,001 | 36.1 | % | ||||||||||
| Other assets |
182,599,568 | 8.0 | % | — | — | |||||||||||
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| Total gross assets |
2,305,619,291 | 100.0 | % | |||||||||||||
| Accumulated depreciation and amortization |
(126,733,639 | ) | ||||||||||||||
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| Total |
$ | 2,178,885,652 | $ | 201,397,418 | 100.0 | % | ||||||||||
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Investment and Revenue by State - As of December 31, 2012
| Total Assets | Percentage of Total Assets |
Total Revenue | Percentage of Total Revenue |
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| California |
$ | 522,874,636 | 22.7 | % | $ | 54,791,794 | 27.2 | % | ||||||||
| Texas |
534,163,747 | 23.2 | % | 49,281,780 | 24.5 | % | ||||||||||
| New Jersey |
126,401,831 | 5.5 | % | 16,196,451 | 8.0 | % | ||||||||||
| Arizona |
96,066,056 | 4.2 | % | 9,302,669 | 4.6 | % | ||||||||||
| Idaho |
86,101,018 | 3.7 | % | 9,554,058 | 4.7 | % | ||||||||||
| 20 other states |
757,412,435 | 32.7 | % | 62,270,666 | 31.0 | % | ||||||||||
| Other assets |
182,599,568 | 8.0 | % | — | — | |||||||||||
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| Total gross assets |
2,305,619,291 | 100.0 | % | |||||||||||||
| Accumulated depreciation and amortization |
(126,733,639 | ) | ||||||||||||||
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| Total |
$ | 2,178,885,652 | $ | 201,397,418 | 100.0 | % | ||||||||||
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| 3 |
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LEASE MATURITY SCHEDULE - AS OF DECEMBER 31, 2012
| Total portfolio (1) |
Total leases | Base rent (2) | Percent of total base rent |
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| 2013 |
2 | $ | 1,048,044 | 0.7 | % | |||||||
| 2014 |
2 | 4,811,508 | 3.2 | % | ||||||||
| 2015 |
2 | 4,039,476 | 2.7 | % | ||||||||
| 2016 |
1 | 2,250,000 | 1.5 | % | ||||||||
| 2017 |
— | — | 0.0 | % | ||||||||
| 2018 |
1 | 1,927,452 | 1.3 | % | ||||||||
| 2019 |
8 | 10,151,490 | 6.7 | % | ||||||||
| 2020 |
1 | 1,039,728 | 0.7 | % | ||||||||
| 2021 |
4 | 12,487,514 | 8.3 | % | ||||||||
| 2022 |
12 | 37,800,050 | 25.0 | % | ||||||||
| 2023 |
1 | 1,216,872 | 0.8 | % | ||||||||
| 2024 |
1 | 2,232,504 | 1.5 | % | ||||||||
| 2025 |
4 | 11,009,493 | 7.3 | % | ||||||||
| Thereafter |
29 | 60,942,444 | 40.3 | % | ||||||||
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| 68 | $ | 150,956,575 | 100.0 | % | ||||||||
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| (1) | Excludes six of our properties that are under development. Also, lease expiration is based on the fixed term of the lease and does not factor in potential renewal options provided for in our leases. |
| (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 |
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DEBT SUMMARY AS OF DECEMBER 31, 2012
| Instrument |
Rate Type |
Rate | Balance | 2013 | 2014 | 2015 | 2016 | 2017 | Thereafter | |||||||||||||||||||||||||
| 6.875% Notes Due 2021 |
Fixed | 6.88 | % | $ | 450,000,000 | $ | — | $ | — | $ | — | $ | — | $ | — | $ | 450,000,000 | |||||||||||||||||
| 6.375% Notes Due 2022 |
Fixed | 6.38 | % | 200,000,000 | — | — | — | — | — | 200,000,000 | ||||||||||||||||||||||||
| 2015 Credit Facility Revolver |
Variable | 3.07 | %(1) | 125,000,000 | — | — | 125,000,000 | — | — | — | ||||||||||||||||||||||||
| 2016 Term Loan |
Variable | 2.47 | % | 100,000,000 | — | — | — | 100,000,000 | — | — | ||||||||||||||||||||||||
| 2016 Unsecured Notes |
Fixed | 5.59 | %(2) | 125,000,000 | — | — | — | 125,000,000 | — | — | ||||||||||||||||||||||||
| 2013 Exchangeable Notes |
Fixed | 9.25 | % | 11,000,000 | 11,000,000 | — | — | — | — | — | ||||||||||||||||||||||||
| Northland - Mortgage Capital Term Loan |
Fixed | 6.20 | % | 14,197,483 | 249,384 | 265,521 | 282,701 | 298,582 | 320,312 | 12,780,983 | ||||||||||||||||||||||||
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| $ | 1,025,197,483 | $ | 11,249,384 | $ | 265,521 | $ | 125,282,701 | $ | 225,298,582 | $ | 320,312 | $ | 662,780,983 | |||||||||||||||||||||
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| Debt Discount |
(37,629 | ) | ||||||||||||||||||||||||||||||||
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| $ | 1,025,159,854 | |||||||||||||||||||||||||||||||||
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| (1) | Represents a $400 million unsecured revolving credit facility with spreads over LIBOR ranging from 2.60% to 3.40%. |
| (2) | Represents the weighted-average rate for four traunches of the Notes at December 31, 2012 factoring in interest rate swaps in effect at that time. |
The Company has entered into two swap agreements which began in July and October 2011. Effective July 31, 2011, the Company is paying 5.507% on $65 million of the Notes and effective October 31, 2011, the Company is paying 5.675% on $60 million of Notes.
| 5 |
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MEDICAL PROPERTIES TRUST, INC. AND SUBSIDIARIES
Consolidated Balance Sheets
| December 31, 2012 |
December 31, 2011 |
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| (Unaudited) | (A) | |||||||
| Assets |
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| Real estate assets |
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| Land, buildings and improvements, and intangible lease assets |
$ | 1,242,375,982 | $ | 1,174,153,751 | ||||
| Construction in progress and other |
38,338,985 | 30,902,348 | ||||||
| Real estate held for sale |
— | 59,793,225 | ||||||
| Net investment in direct financing leases |
314,411,549 | — | ||||||
| Mortgage loans |
368,650,000 | 165,000,000 | ||||||
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| Gross investment in real estate assets |
1,963,776,516 | 1,429,849,324 | ||||||
| Accumulated depreciation and amortization |
(126,733,639 | ) | (93,188,257 | ) | ||||
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| Net investment in real estate assets |
1,837,042,877 | 1,336,661,067 | ||||||
| Cash and cash equivalents |
37,311,207 | 102,725,906 | ||||||
| Interest and rent receivable |
47,586,709 | 29,862,106 | ||||||
| Straight-line rent receivable |
35,859,703 | 33,993,032 | ||||||
| Other assets |
221,085,156 | 118,631,608 | ||||||
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| Total Assets |
$ | 2,178,885,652 | $ | 1,621,873,719 | ||||
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| Liabilities and Equity |
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| Liabilities |
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| Debt, net |
$ | 1,025,159,854 | $ | 689,848,981 | ||||
| Accounts payable and accrued expenses |
65,960,792 | 51,124,723 | ||||||
| Deferred revenue |
20,609,467 | 23,307,074 | ||||||
| Lease deposits and other obligations to tenants |
17,341,694 | 28,777,787 | ||||||
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| Total liabilities |
1,129,071,807 | 793,058,565 | ||||||
| Equity |
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| Preferred stock, $0.001 par value. Authorized 10,000,000 shares; no shares outstanding |
— | — | ||||||
| Common stock, $0.001 par value. Authorized 250,000,000 shares; issued and outstanding - 136,335,427 shares at December 31, 2012 and 110,786,183 shares at December 31, 2011 |
136,336 | 110,786 | ||||||
| Additional paid in capital |
1,295,916,192 | 1,055,255,776 | ||||||
| Distributions in excess of net income |
(233,494,130 | ) | (214,058,258 | ) | ||||
| Accumulated other comprehensive income (loss) |
(12,482,210 | ) | (12,230,807 | ) | ||||
| Treasury shares, at cost |
(262,343 | ) | (262,343 | ) | ||||
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| Total Equity |
1,049,813,845 | 828,815,154 | ||||||
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| Total Liabilities and Equity |
$ | 2,178,885,652 | $ | 1,621,873,719 | ||||
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| (A) | Financials have been derived from the prior year audited financials; however, we have reclassed the real estate (including accumulated depreciation) of certain properties sold in 2012 to Real Estate Held for Sale. |
| 6 |
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ACQUISITIONS FOR THE TWELVE MONTHS ENDED DECEMBER 31, 2012
| Name |
Location | Property Type |
Acquisition / Development |
Investment / Commitment |
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| Ernest Health, Inc. |
Nine states | Long-term acute care and inpatient rehabilitation |
Acquisition | $ | 396,500,000 | |||||
| Post Acute Medical |
Victoria, TX | Inpatient rehabilitation |
Development | 9,400,000 | ||||||
| Ernest Health, Inc. |
Lafayette, IN | Inpatient rehabilitation |
Development | 16,600,000 | ||||||
| Centinela Hospital Medical Center |
Inglewood, CA | General acute care |
Acquisition | 100,000,000 | ||||||
| St. Mary’s Regional Medical Center |
Reno, NV | General acute care |
Acquisition | 80,000,000 | ||||||
| Roxborough Memorial Hospital |
Philadelphia, PA | General acute care |
Acquisition | 30,000,000 | ||||||
| Ernest Health, Inc. |
Spartanburg, SC | Inpatient rehabilitation |
Development | 17,805,000 | ||||||
| Post Acute Specialty Hospital of Hammond |
Hammond, LA | Long-term acute care |
Acquisition | 16,990,000 | ||||||
| OakLeaf Surgical Hospital |
Altoona, WI | General acute care |
Development | 33,500,000 | ||||||
| First Choice Emergency Room |
TBD | General acute care |
Development | 100,000,000 | ||||||
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| Total Investments / Commitments |
$ | 800,795,000 | ||||||||
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OPERATING INVESTMENTS AND RELATED RESULTS AS OF AND FOR THE TWELVE MONTHS ENDED DECEMBER 31, 2012
| Non-Ernest Operating Investments (1) |
Operations Revenue | Annualized Return | ||||||||
| $ | 12,167,500 | $ | 4,261,749 | (2) | 43.1 | % | ||||
| Ernest Health Inc. Operating Investment (3) |
Operations Revenue | Annualized Return | ||||||||
| $ | 96,500,000 | $ | 11,688,833 | (4) | 14.5 | % | ||||
Note: The Company began reporting earnings from equity and other interests in operations in the second quarter of 2013 one quarter in arrears; we did not report any earnings from equity interests for the three months ended March 31, 2012.
| (1) | Non-Ernest operating investments includes $2.0 million invested in the operations of a Hammond, LA facility in the fourth quarter of 2013. There is no profit or loss associated with that investment in 2012. |
| (2) | Includes interest from our convertible note investment. |
| (3) | The Ernest Health, Inc. transaction closed on February 29, 2012. |
| (4) | Includes interest from our acquisition note. |
| 7 |
|
MPT
Medical Properties Trust
Medical Properties Trust, Inc. 1000 Urban Center Drive, Suite 501 Birmingham, AL 35242 (205) 969-3755 www.medicalpropertiestrust.com
Contact: Charles Lambert, Managing Director - Capital Markets (205) 397-8897 or clambert@medicalpropertiestrust.com