Attached files
| file | filename |
|---|---|
| 8-K - 8-K - MEDICAL PROPERTIES TRUST INC | d206768d8k.htm |
| EX-99.1 - EX-99.1 - MEDICAL PROPERTIES TRUST INC | d206768dex991.htm |
Table of Contents
Exhibit 99.2
THIRD QUARTER 2015
Supplemental Information
Table of Contents
MEDICALPROPERTIESTRUST.COM
FORWARD-LOOKING STATEMENT Forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause the actual results of the Company or future events to differ materially from those expressed in or underlying such forward-looking statements, including without limitation: the satisfaction of all conditions to, and the timely closing (if at all) of the Median sale-leaseback transactions; the Company financing of the transactions described herein; the capacity of Median and the Company’s other tenants to meet the terms of their agreements; Normalized FFO per share; expected payout ratio, the amount of acquisitions of healthcare real estate, if any; capital markets conditions, the repayment of debt arrangements; statements concerning the additional income to the Company as a result of ownership interests in certain hospital operations and the timing of such income; the payment of future dividends, if any; completion of additional debt arrangement, and additional investments; national and international economic, business, real estate and other market conditions; the competitive environment in which the Company operates; the execution of the Company’s business plan; financing risks; the Company’s ability to maintain its status as a REIT for federal income tax purposes; acquisition and development risks; potential environmental and other liabilities; and other factors affecting the real estate industry generally or healthcare real estate in particular. For further discussion of the factors that could affect outcomes, please refer to the “Risk factors” section of the Company’s Annual Report on Form 10-K for the year ended December 31, 2014, and as updated by the Company’s subsequently filed Quarterly Reports on Form 10-Q and other SEC filings. Except as otherwise required by the federal securities laws, the Company undertakes no obligation to update the information in this report.
On the Cover: Carolina Pines Regional Medical Center - Hartsville, South Carolina. Acquired in 2015.
| Q3 2015 | SUPPLEMENTAL INFORMATION 2 |
Table of Contents
MEDICALPROPERTIESTRUST.COM
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, Treasurer and Secretary | |
| Frank R. Williams, Jr. | Senior Vice President, Senior Managing Director - Acquisitions | |
BOARD OF DIRECTORS
| Edward K. Aldag, Jr. |
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G. Steven Dawson |
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R. Steven Hamner |
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Robert. E. Holmes, Ph.D. |
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Sherry A. Kellett |
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William G. McKenzie |
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L. Glenn Orr, Jr. |
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D. Paul Sparks, Jr.
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CORPORATE HEADQUARTERS |
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Medical Properties Trust, Inc. |
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1000 Urban Center Drive, Suite 501 |
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Birmingham, AL 35242 |
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(205) 969-3755 |
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(205) 969-3756 (fax)
www.medicalpropertiestrust.com |
| Q3 2015 | SUPPLEMENTAL INFORMATION 3 |
Table of Contents
MEDICALPROPERTIESTRUST.COM
COMPANY OVERVIEW (continued)
| INVESTOR RELATIONS
Tim Berryman | Director - Investor Relations (205) 397-8589 tberryman@medicalpropertiestrust.com |
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CAPITAL MARKETS
Charles Lambert | Managing Director - Capital Markets (205) 397-8897 clambert@medicalpropertiestrust.com | ||||
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| TRANSFER AGENT | STOCK EXCHANGE | SENIOR UNSECURED | ||||
| American Stock Transfer | LISTING AND | DEBT RATINGS | ||||
| and Trust Company | TRADING SYMBOL | Moody’s – Ba1 | ||||
| 6201 15th Avenue | New York Stock Exchange | Standard & Poor’s – BBB- | ||||
| Brooklyn, NY 11219 | (NYSE): MPW | |||||
Q3 2015 | SUPPLEMENTAL INFORMATION 4
Table of Contents
MEDICALPROPERTIESTRUST.COM
RECONCILIATION OF NET INCOME TO FUNDS FROM OPERATIONS
(Unaudited)
(Amounts in thousands except per share data)
| For the Three Months Ended | For the Nine Months Ended | |||||||||||||||
| September 30, 2015 |
September 30, 2014 |
September 30, 2015 |
September 30, 2014 |
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| FFO INFORMATION: |
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| Net income attributable to MPT common stockholders |
$ | 23,057 | $ | 28,537 | $ | 81,361 | $ | 35,575 | ||||||||
| Participating securities’ share in earnings |
(265 | ) | (179 | ) | (781 | ) | (584 | ) | ||||||||
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| Net income, less participating securities’ share in earnings |
$ | 22,792 | $ | 28,358 | $ | 80,580 | $ | 34,991 | ||||||||
| Depreciation and amortization |
20,016 | 13,354 | 49,728 | 39,485 | ||||||||||||
| Gain on sale of real estate |
(3,268 | ) | — | (3,268 | ) | — | ||||||||||
| Real estate impairment charges |
— | — | — | 5,974 | ||||||||||||
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| Funds from operations |
$ | 39,540 | $ | 41,712 | $ | 127,040 | $ | 80,450 | ||||||||
| Write-off straight line rent and other |
3,928 | — | 3,928 | 950 | ||||||||||||
| Unutilized financing fees / debt refinancing costs |
4,080 | — | 4,319 | 290 | ||||||||||||
| Loan and other impairment charges |
— | — | — | 44,154 | ||||||||||||
| Acquisition expenses |
24,949 | 4,886 | 56,997 | 7,933 | ||||||||||||
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| Normalized funds from operations |
$ | 72,497 | $ | 46,598 | $ | 192,284 | $ | 133,777 | ||||||||
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| Share-based compensation |
2,515 | 2,059 | 7,716 | 6,179 | ||||||||||||
| Debt costs amortization |
1,523 | 1,247 | 4,294 | 3,441 | ||||||||||||
| Additional rent received in advance(A) |
(300 | ) | (300 | ) | (900 | ) | (900 | ) | ||||||||
| Straight-line rent revenue and other |
(9,840 | ) | (6,979 | ) | (23,100 | ) | (16,512 | ) | ||||||||
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| Adjusted funds from operations |
$ | 66,395 | $ | 42,625 | $ | 180,294 | $ | 125,985 | ||||||||
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| PER DILUTED SHARE DATA: |
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| Net income, less participating securities’ share in earnings |
$ | 0.10 | $ | 0.16 | $ | 0.38 | $ | 0.21 | ||||||||
| Depreciation and amortization |
0.09 | 0.08 | 0.23 | 0.22 | ||||||||||||
| Gain on sale of real estate |
(0.01 | ) | — | (0.01 | ) | — | ||||||||||
| Real estate impairment charges |
— | — | — | 0.04 | ||||||||||||
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| Funds from operations |
$ | 0.18 | $ | 0.24 | $ | 0.60 | $ | 0.47 | ||||||||
| Write-off straight line rent and other |
0.01 | — | 0.02 | 0.01 | ||||||||||||
| Unutilized financing fees / debt refinancing costs |
0.02 | — | 0.02 | — | ||||||||||||
| Loan and other impairment charges |
— | — | — | 0.26 | ||||||||||||
| Acquisition expenses |
0.11 | 0.03 | 0.27 | 0.05 | ||||||||||||
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| Normalized funds from operations |
$ | 0.32 | $ | 0.27 | $ | 0.91 | $ | 0.79 | ||||||||
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| Share-based compensation |
0.01 | 0.01 | 0.04 | 0.04 | ||||||||||||
| Debt costs amortization |
0.01 | 0.01 | 0.01 | 0.02 | ||||||||||||
| Additional rent received in advance(A) |
— | — | — | (0.01 | ) | |||||||||||
| Straight-line rent revenue and other |
(0.04 | ) | (0.04 | ) | (0.11 | ) | (0.10 | ) | ||||||||
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| Adjusted funds from operations |
$ | 0.30 | $ | 0.25 | $ | 0.85 | $ | 0.74 | ||||||||
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| (A) | Represents additional rent received from one tenant 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.
| Q3 2015 | SUPPLEMENTAL INFORMATION 5 |
Table of Contents
MEDICALPROPERTIESTRUST.COM
FINANCIAL INFORMATION
(as of September 30, 2015)
($ amounts in thousands)
| Debt Instrument |
Rate Type |
Rate | Balance | |||||||
| 2016 Unsecured Notes |
Fixed | 5.59 | %(1) | $ | 125,000 | |||||
| Northland – Mortgage Capital Term Loan |
Fixed | 6.20 | % | 13,473 | ||||||
| 2018 Credit Facility Revolver |
Variable | 1.60%–1.61 | %(2) | 1,091,000 | ||||||
| 2019 Term Loan |
Variable | 1.86%-1.87 | % | 250,000 | ||||||
| 5.75% Notes Due 2020 (Euro) |
Fixed | 5.75 | %(3) | 223,540 | ||||||
| 4.00% Notes Due 2022 (Euro) |
Fixed | 4.00 | %(3) | 558,850 | ||||||
| 6.875% Notes Due 2021 |
Fixed | 6.88 | % | 450,000 | ||||||
| 6.375% Notes Due 2022 |
Fixed | 6.38 | % | 350,000 | ||||||
| 5.5% Notes Due 2024 |
Fixed | 5.50 | % | 300,000 | ||||||
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| $ | 3,361,863 | |||||||||
| Debt Premium |
2,256 | |||||||||
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| Weighted average rate |
4.08 | % | $ | 3,364,119 | ||||||
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| (1) | Represents the weighted-average rate for four tranches of the Notes at September 30, 2015, 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. |
| (2) | At September 30, 2015, this represents a $1.3 billion unsecured revolving credit facility with spreads over LIBOR ranging from 0.95% to 1.75%. |
| (3) | Represents 700 million of bonds issued in EUR and converted to USD at September 30, 2015. |
Q3 2015 | SUPPLEMENTAL INFORMATION 6
Table of Contents
MEDICALPROPERTIESTRUST.COM
FINANCIAL INFORMATION
(as of September 30, 2015)
($ amounts in thousands)
| Debt Instrument |
2015 | 2016 | 2017 | 2018 | 2019 | Thereafter | ||||||||||||||||||
| 2016 Unsecured Notes |
$ | — | $ | 125,000 | $ | — | $ | — | $ | — | $ | — | ||||||||||||
| Northland – Mortgage Capital Term Loan |
73 | 299 | 320 | 12,781 | — | — | ||||||||||||||||||
| 2018 Credit Facility Revolver |
— | — | — | 1,091,000 | — | — | ||||||||||||||||||
| 2019 Term Loan |
— | — | — | — | 250,000 | — | ||||||||||||||||||
| 5.75% Notes Due 2020 (Euro) |
— | — | — | — | — | 223,540 | ||||||||||||||||||
| 6.875% Notes Due 2021 |
— | — | — | — | — | 450,000 | ||||||||||||||||||
| 4.00% Notes Due 2022 (Euro) |
— | — | — | — | — | 558,850 | ||||||||||||||||||
| 6.375% Notes Due 2022 |
— | — | — | — | — | 350,000 | ||||||||||||||||||
| 5.5% Notes Due 2024 |
— | — | — | — | — | 300,000 | ||||||||||||||||||
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| $ | 73 | $ | 125,299 | $ | 320 | $ | 1,103,781 | $ | 250,000 | $ | 1,882,390 | |||||||||||||
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Q3 2015 | SUPPLEMENTAL INFORMATION 7
Table of Contents
MEDICALPROPERTIESTRUST.COM
(as of September 30, 2015)
($ amounts in thousands)
| Years of Lease Maturities (1) |
Total Leases | Base Rent (2) | Percent of Total Base Rent |
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| 2015 |
— | $ | — | — | ||||||||
| 2016 |
1 | 2,250 | 0.6 | % | ||||||||
| 2017 |
— | — | — | |||||||||
| 2018 |
1 | 1,989 | 0.6 | % | ||||||||
| 2019 |
2 | 4,994 | 1.4 | % | ||||||||
| 2020 |
1 | 1,093 | 0.3 | % | ||||||||
| 2021 |
2 | 10,609 | 3.0 | % | ||||||||
| 2022(3) |
12 | 41,565 | 11.8 | % | ||||||||
| 2023 |
4 | 12,380 | 3.5 | % | ||||||||
| 2024 |
1 | 2,520 | 0.7 | % | ||||||||
| 2025 |
7 | 18,641 | 5.3 | % | ||||||||
| Thereafter |
131 | 255,743 | 72.8 | % | ||||||||
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| 162 | $ | 351,784 | 100.0 | % | ||||||||
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| (1) | Excludes 10 of our properties that are under development. 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) | Represents base rent on an annualized basis but does not include tenant recoveries, additional rents and other lease-related adjustments to revenue (i.e., straight-line rents and deferred revenues). |
| (3) | 95% of the 2022 maturities are under a Master Lease with Prime Healthcare; Master Lease renewal options are for all properties or none of them. |
| Q3 2015 | SUPPLEMENTAL INFORMATION 8 |
Table of Contents
MEDICALPROPERTIESTRUST.COM
PORTFOLIO INFORMATION
INVESTMENTS AND REVENUE BY ASSET TYPE
(as of September 30, 2015)
($ amounts in thousands)
| Asset Types |
Total Assets (B) |
Percentage of Gross Assets |
Total Revenue |
Percentage of Total Revenue |
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| General Acute Care Hospitals |
(A) | $ | 3,291,466 | 56.1 | % | $ | 173,083 | 55.8 | % | |||||||||
| Inpatient Rehabilitation Hospitals |
1,546,514 | 26.3 | % | 97,868 | 31.5 | % | ||||||||||||
| Long-Term Acute Care Hospitals |
459,228 | 7.8 | % | 39,382 | 12.7 | % | ||||||||||||
| Other assets |
576,065 | 9.8 | % | — | — | |||||||||||||
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| Total |
$ | 5,873,273 | 100.0 | % | $ | 310,333 | 100.0 | % | ||||||||||
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| Accumulated depreciation and amortization |
(239,950 | ) | ||||||||||||||||
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| Total assets |
$ | 5,633,323 | ||||||||||||||||
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| (A) | Includes three medical office buildings. |
| (B) | Includes loans to operators. |
Q3 2015 | SUPPLEMENTAL INFORMATION 9
Table of Contents
MEDICALPROPERTIESTRUST.COM
PORTFOLIO INFORMATION
INVESTMENTS AND REVENUE BY OPERATOR
(as of September 30, 2015)
($ amounts in thousands)
| Operators |
Total Assets |
Percentage of Gross Assets |
Total Revenue |
Percentage of Total Revenue |
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| Prime Healthcare |
$ | 1,016,619 | 17.3 | % | $ | 75,982 | 24.5 | % | ||||||||
| Capella Healthcare, Inc. |
989,417 | (1) | 16.8 | % | 7,155 | 2.3 | % | |||||||||
| MEDIAN |
742,448 | 12.6 | % | 38,581 | 12.4 | % | ||||||||||
| Ernest Health, Inc. |
561,115 | 9.6 | % | 45,874 | 14.8 | % | ||||||||||
| IASIS Healthcare |
347,612 | 6.0 | % | 20,786 | 6.7 | % | ||||||||||
| 25 operators |
1,639,997 | 27.9 | % | 121,955 | 39.3 | % | ||||||||||
| Other assets |
576,065 | 9.8 | % | — | — | |||||||||||
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| Total |
5,873,273 | 100.0 | % | $ | 310,333 | 100.0 | % | |||||||||
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| Accumulated depreciation and amortization |
(239,950 | ) | ||||||||||||||
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| Total assets |
$ | 5,633,323 | ||||||||||||||
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| (1) | Includes $89 million of cash on hand acquired at time of acquisition. |
Q3 2015 | SUPPLEMENTAL INFORMATION 10
Table of Contents
MEDICALPROPERTIESTRUST.COM
PORTFOLIO INFORMATION
INVESTMENTS AND REVENUE BY U.S. STATE AND COUNTRY
(as of September 30, 2015)
($ amounts in thousands)
| U.S. States and Other Countries |
Total Assets |
Percentage of Gross Assets |
Total Revenue |
Percentage of Total Revenue |
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| Texas |
$ | 893,980 | 15.2 | % | $ | 63,815 | 20.6 | % | ||||||||
| California |
547,089 | 9.3 | % | 49,595 | 16.0 | % | ||||||||||
| New Jersey |
324,918 | 5.5 | % | 11,694 | 3.8 | % | ||||||||||
| Oklahoma |
280,320 | 4.8 | % | 2,379 | 0.8 | % | ||||||||||
| Arkansas |
280,258 | 4.8 | % | 2,387 | 0.8 | % | ||||||||||
| 24 Other States |
1,913,730 | 32.7 | % | 120,546 | 38.7 | % | ||||||||||
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| United States |
4,240,295 | 72.3 | % | 250,416 | 80.7 | % | ||||||||||
| Germany |
1,005,737 | 17.1 | % | 56,609 | 18.2 | % | ||||||||||
| U.K. and Spain |
51,176 | 0.8 | % | 3,308 | 1.1 | % | ||||||||||
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| International |
1,056,913 | 17.9 | % | 59,917 | 19.3 | % | ||||||||||
| Other assets |
576,065 | 9.8 | % | — | — | |||||||||||
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| Total |
5,873,273 | 100.0 | % | $ | 310,333 | 100.0 | % | |||||||||
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| Accumulated depreciation and amortization |
(239,950 | ) | ||||||||||||||
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| Total assets |
$ | 5,633,323 | ||||||||||||||
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Q3 2015 | SUPPLEMENTAL INFORMATION 11
Table of Contents
MEDICALPROPERTIESTRUST.COM
PORTFOLIO INFORMATION
Same Store EBITDAR(1) Rent Coverage
YOY and Sequential Quarter Comparisons by Property Type
Stratification of Portfolio EBITDAR Rent Coverage
| EBITDAR Rent Coverage TTM |
Investment (in MM) |
No. of Facilities | Percentage of Investment |
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| Greater than or equal to 4.50x |
$ | 223 | 5 | 11 | % | |||||||
| 3.00x - 4.49x |
$ | 93 | 2 | 5 | % | |||||||
| 1.50x - 2.99x |
$ | 42 | 2 | 2 | % | |||||||
| Less than 1.50x |
$ | 30 | 1 | 2 | % | |||||||
| Total Master Leased and/or with Parent Guaranty: 3.1x |
$ | 1,551 | 52 | 80 | % | |||||||
| General Acute Master Leased and/or with |
$ | 833 | 19 | 43 | % | |||||||
| Inpatient Rehabilitation Facilities Master |
$ | 325 | 13 | 17 | % | |||||||
| Long-Term Acute Care Hospitals Master |
$ | 393 | 20 | 20 | % | |||||||
Notes:
Same Store represents properties with at least 24 months of financial reporting data. Properties that do not provide financial reporting and disposed assets are not included.
Freestanding ERs will be reported as a distinct property type, but are not included in this information because they have less than 24 months of financial reporting data.
All data presented is on a trailing twelve month basis.
| (1) | EBITDAR adjusted for non-recurring items. |
Q3 2015 | SUPPLEMENTAL INFORMATION 12
Table of Contents
MEDICALPROPERTIESTRUST.COM
PORTFOLIO INFORMATION
ACQUISITIONS FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2015
($ amounts in thousands)
| Name |
Operator |
Location |
Property Type |
Acquisition / Development |
Investment / Commitment |
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| Weslaco Regional Rehabilitation Hospital |
Ernest Health | Weslaco, TX | Inpatient Rehabilitation Hospital | Acquisition | $ | 15,700 | ||||||
| St. Joseph Medical Center |
Prime Healthcare | Kansas City, MO | Acute Care Hospital | Acquisition | 110,000 | |||||||
| St. Mary’s Medical Center |
Prime Healthcare | Blue Springs, MO | Acute Care Hospital | Acquisition | 40,000 | |||||||
| Adeptus Health |
Adeptus Health | Various | Acute Care Hospital | Development | 250,000 | |||||||
| Rehabilitation Hospital of Northwest Ohio |
Ernest Health | Toledo, OH | Inpatient Rehabilitation Hospital | Development | 19,212 | |||||||
| Trustpoint Rehabilitation Hospital of Lubbock |
Ernest Health | Lubbock, TX | Inpatient Rehabilitation Hospital | Acquisition | 32,820 | |||||||
| Texas Specialty Hospital |
Ernest Health | Lubbock, TX | Long-Term Acute Care | Acquisition | 10,725 | |||||||
| IMED |
IMED Valencia | Valencia, Spain | Acute Care Hospital | Development | 24,000 | |||||||
| Capella (1) |
Capella Healthcare, Inc. | Various | Acute Care Hospital | Acquisition | 900,000 | |||||||
| Lake Huron Medical Center |
Prime Healthcare | Port Huron, MI | Acute Care Hospital | Acquisition | 30,000 | |||||||
| St. Clare’s Health System (2) |
Prime Healthcare | Various | Acute Care Hospital | Acquisition | 100,000 | |||||||
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| Total Investments / Commitments |
$ | 1,532,457 | ||||||||||
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| (1) | Includes a portfolio of seven hospitals in five states for $600 million and an equity investment and acquisition loan of approximately $300 million. |
The investment amount excludes cash of approximately $89 million acquired at time of acquisition.
| (2) | Includes three licensed hospitals and one free-standing emergency department and health center in northwest New Jersey. |
SUMMARY OF DEVELOPMENT PROJECTS AS OF SEPTEMBER 30, 2015
($ amounts in thousands)
| Property |
Location | Property Type | Operator | Commitment | Costs Incurred as of 9/30/2015 |
Estimated Completion Date |
||||||||||||
| Rehabilitation Hospital of Northwest Ohio |
Toledo, OH | Inpatient Rehabilitation Hospital | Ernest Health | $ | 19,212 | $ | 8,557 | 2Q 2016 | ||||||||||
| First Choice ER - Phoenix |
Phoenix, AZ | Acute Care Hospital | Adeptus Health | 5,261 | 3,076 | 4Q 2015 | ||||||||||||
| First Choice ER - Houston |
Houston, TX | Acute Care Hospital | Adeptus Health | 5,105 | 2,400 | 4Q 2015 | ||||||||||||
| First Choice ER - Denver |
Denver, CO | Acute Care Hospital | Adeptus Health | 6,868 | 3,109 | 4Q 2015 | ||||||||||||
| First Choice ER - DFW |
Dallas, TX | Acute Care Hospital | Adeptus Health | 5,124 | 2,632 | 1Q 2016 | ||||||||||||
| First Choice ER - Houston |
Houston, TX | Acute Care Hospital | Adeptus Health | 5,257 | 812 | 1Q 2016 | ||||||||||||
| First Choice ER - Denver |
Denver, CO | Acute Care Hospital | Adeptus Health | 5,300 | 208 | 2Q 2016 | ||||||||||||
| First Choice ER - Phoenix |
Phoenix, AZ | Acute Care Hospital | Adeptus Health | 6,728 | 1,865 | 2Q 2016 | ||||||||||||
| First Choice ER - San Antonio |
San Antonio, TX | Acute Care Hospital | Adeptus Health | 7,530 | 2,376 | 2Q 2016 | ||||||||||||
| First Choice ER - Houston |
Houston, TX | Acute Care Hospital | Adeptus Health | 45,961 | 14,167 | 3Q 2016 | ||||||||||||
| First Choice Emergency Rooms |
Various | Acute Care Hospital | Adeptus Health | 214,352 | — | |||||||||||||
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| $ | 326,698 | $ | 39,202 | |||||||||||||||
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Q3 2015 | SUPPLEMENTAL INFORMATION 13
Table of Contents
MEDICALPROPERTIESTRUST.COM
MEDICAL PROPERTIES TRUST, INC. AND SUBSIDIARIES
Consolidated Statements of Income
(Amounts in thousands except per share data)
(Unaudited)
| For the Three Months Ended | For the Nine Months Ended | |||||||||||||||
| September 30, 2015 |
September 30, 2014 |
September 30, 2015 |
September 30, 2014 |
|||||||||||||
| Revenues |
||||||||||||||||
| Rent billed |
$ | 70,358 | $ | 48,063 | $ | 177,351 | $ | 136,952 | ||||||||
| Straight-line rent |
5,023 | 5,282 | 15,003 | 10,648 | ||||||||||||
| Income from direct financing leases |
14,692 | 12,308 | 40,055 | 36,787 | ||||||||||||
| Interest and fee income |
24,497 | 15,124 | 77,924 | 46,039 | ||||||||||||
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|
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| Total revenues |
114,570 | 80,777 | 310,333 | 230,426 | ||||||||||||
| Expenses |
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| Real estate depreciation and amortization |
20,016 | 13,354 | 49,728 | 39,485 | ||||||||||||
| Impairment charges |
— | — | — | 50,128 | ||||||||||||
| Property-related |
1,727 | 700 | 2,608 | 1,401 | ||||||||||||
| Acquisition expenses |
24,949 | 4,886 | 56,997 | 7,933 | ||||||||||||
| General and administrative |
10,778 | 8,672 | 32,325 | 25,836 | ||||||||||||
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|
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| Total operating expenses |
57,470 | 27,612 | 141,658 | 124,783 | ||||||||||||
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| Operating income |
57,100 | 53,165 | 168,675 | 105,643 | ||||||||||||
| Interest and other income (expense) |
(33,897 | ) | (24,253 | ) | (86,068 | ) | (69,642 | ) | ||||||||
| Income tax (expense) benefit |
(80 | ) | (249 | ) | (1,018 | ) | (232 | ) | ||||||||
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|
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| Income from continuing operations |
23,123 | 28,663 | 81,589 | 35,769 | ||||||||||||
| Income (loss) from discontinued operations |
— | — | — | (2 | ) | |||||||||||
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| Net income |
23,123 | 28,663 | 81,589 | 35,767 | ||||||||||||
| Net income attributable to non-controlling interests |
(66 | ) | (126 | ) | (228 | ) | (192 | ) | ||||||||
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| Net income attributable to MPT common stockholders |
$ | 23,057 | $ | 28,537 | $ | 81,361 | $ | 35,575 | ||||||||
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| Earnings per common share – basic and diluted: |
||||||||||||||||
| Income from continuing operations |
$ | 0.10 | $ | 0.16 | $ | 0.38 | $ | 0.21 | ||||||||
| Income from discontinued operations |
— | — | — | — | ||||||||||||
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| Net income attributable to MPT common stockholders |
$ | 0.10 | $ | 0.16 | $ | 0.38 | $ | 0.21 | ||||||||
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| Dividends declared per common share |
$ | 0.22 | $ | 0.21 | $ | 0.66 | $ | 0.63 | ||||||||
| Weighted average shares outstanding – basic |
223,948 | 171,893 | 211,659 | 169,195 | ||||||||||||
| Weighted average shares outstanding – diluted |
223,948 | 172,639 | 212,068 | 169,852 | ||||||||||||
| Q3 2015 | SUPPLEMENTAL INFORMATION 14 |
Table of Contents
MEDICALPROPERTIESTRUST.COM
FINANCIAL STATEMENTS
MEDICAL PROPERTIES TRUST, INC. AND SUBSIDIARIES
(Amounts in thousands except per share data)
| September 30, 2015 |
December 31, 2014 |
|||||||
| (unaudited) | ||||||||
| ASSETS |
||||||||
| Real estate assets |
||||||||
| Land, buildings and improvements, and intangible lease assets |
$ | 3,166,854 | $ | 2,149,612 | ||||
| Construction in progress and other |
39,202 | 23,163 | ||||||
| Net investment in direct financing leases |
618,493 | 439,516 | ||||||
| Mortgage loans |
762,584 | 397,594 | ||||||
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| Gross investment in real estate assets |
4,587,133 | 3,009,885 | ||||||
| Accumulated depreciation and amortization |
(239,950 | ) | (202,627 | ) | ||||
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| Net investment in real estate assets |
4,347,183 | 2,807,258 | ||||||
| Cash and cash equivalents |
332,235 | 144,541 | ||||||
| Interest and rent receivables |
47,153 | 41,137 | ||||||
| Straight-line rent receivables |
73,976 | 59,128 | ||||||
| Other assets |
832,776 | 695,272 | ||||||
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|
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| Total Assets |
$ | 5,633,323 | $ | 3,747,336 | ||||
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| LIABILITIES AND EQUITY |
||||||||
| Liabilities |
||||||||
| Debt, net |
$ | 3,364,119 | $ | 2,201,654 | ||||
| Accounts payable and accrued expenses |
123,888 | 112,623 | ||||||
| Deferred revenue |
21,594 | 27,207 | ||||||
| Lease deposits and other obligations to tenants |
11,119 | 23,805 | ||||||
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| Total liabilities |
3,520,720 | 2,365,289 | ||||||
| Equity |
||||||||
| Preferred stock, $0.001 par value. Authorized 10,000 shares; no shares outstanding |
— | — | ||||||
| Common stock, $0.001 par value. Authorized 500,000 shares; issued and outstanding - 236,656 shares at September 30, 2015 and 172,743 shares at December 31, 2014 |
236 | 172 | ||||||
| Additional paid in capital |
2,591,234 | 1,765,381 | ||||||
| Distributions in excess of net income |
(423,874 | ) | (361,330 | ) | ||||
| Accumulated other comprehensive income (loss) |
(59,731 | ) | (21,914 | ) | ||||
| Treasury shares, at cost |
(262 | ) | (262 | ) | ||||
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| Total Medical Properties Trust, Inc. Stockholders’ Equity |
2,107,603 | 1,382,047 | ||||||
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| Non-controlling interest |
5,000 | — | ||||||
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|
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| Total equity |
2,112,603 | 1,382,047 | ||||||
|
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|
|
|||||
| Total Liabilities and Equity |
$ | 5,633,323 | $ | 3,747,336 | ||||
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Q3 2015 | SUPPLEMENTAL INFORMATION 15
Table of Contents
MEDICALPROPERTIESTRUST.COM
FINANCIAL STATEMENTS
DETAIL OF OTHER ASSETS AS OF SEPTEMBER 30, 2015
($ amounts in thousands)
| Operator |
Investment | Annual Interest Rate |
YTD RIDEA Income(3) |
Security / Credit Enhancements | ||||||||||
| Non-Operating Loans |
||||||||||||||
| Vibra Healthcare acquisition loan(1) |
$ | 8,871 | 10.25 | % | Secured and cross-defaulted with real estate, other agreements and guaranteed by Parent | |||||||||
| Vibra Healthcare working capital |
5,234 | 9.50 | % | Secured and cross-defaulted with real estate, other agreements and guaranteed by Parent | ||||||||||
| Post Acute Medical working capital |
4,999 | 11.36 | % | Secured and cross-defaulted with real estate; certain loans are cross-defaulted with other loans and real estate | ||||||||||
| Alecto working capital |
16,680 | 11.12 | % | Secured and cross-defaulted with real estate and guaranteed by Parent | ||||||||||
| IKJG/HUMC working capital |
13,566 | 10.40 | % | Secured and cross-defaulted with real estate and guaranteed by Parent | ||||||||||
| Ernest Health |
22,667 | 8.99 | % | Secured and cross-defaulted with real estate and guaranteed by Parent | ||||||||||
| MEDIAN loans |
41,693 | (5) | ||||||||||||
| Other |
10,668 | |||||||||||||
|
|
|
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| 124,378 | ||||||||||||||
| Operating Loans |
||||||||||||||
| Ernest Health, Inc.(2) |
93,200 | 15.00 | % | $ | 11,262 | Secured and cross-defaulted with real estate and guaranteed by Parent | ||||||||
| Capella |
489,146 | (6) | 8.00 | % | 3,370 | Secured and cross-defaulted with real estate and guaranteed by Parent | ||||||||
| IKJG/HUMC convertible loan |
3,352 | 354 | Secured and cross-defaulted with real estate and guaranteed by Parent | |||||||||||
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|
|
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| 585,698 | 14,986 | |||||||||||||
| Equity investments |
29,619 | 2,432 | ||||||||||||
| Deferred debt financing costs |
37,955 | Not applicable | ||||||||||||
| Lease and cash collateral |
2,857 | Not applicable | ||||||||||||
| Other assets(4) |
52,269 | Not applicable | ||||||||||||
|
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|
|
|
|||||||||||
| Total |
$ | 832,776 | $ | 17,418 | ||||||||||
|
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|
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| (1) | Original amortizing acquisition loan was $41 million; loan matures in 2019. |
| (2) | Cash rate is 10% effective March 1, 2014. |
| (3) | Income earned on operating loans is reflected in the interest income line of the income statement. |
| (4) | Includes prepaid expenses, office property and equipment and other. |
| (5) | Subsequent to September 30, 2015, loans were paid in full. |
| (6) | Includes funding of $100 million for a property located in Olympia, Washington in which we are waiting on customary state regulatory approvals, which we expect to close in the fourth quarter of 2015 along with approximately $89 million of cash acquired. |
Q3 2015 | SUPPLEMENTAL INFORMATION 16
Table of Contents
