Medical Properties Trust, Inc. Reports Fourth Quarter Results
BIRMINGHAM, Ala.--(BUSINESS WIRE)--Feb 7, 2019--Medical Properties Trust, Inc. (NYSE: MPW) (the “Company” or “MPT”) today announced financial and operating results for the fourth quarter and year ended December 31, 2018. Per diluted share net income was $0.21 and $2.76, respectively and Normalized Funds from Operations (“NFFO”) was $0.31 and $1.37, respectively.
“We have begun 2019 by immediately executing the growth plans we laid out late last year,” said Edward K. Aldag, Jr., MPT’s Chairman, President and Chief Executive Officer. “Our recently announced agreements to acquire 11 premier hospitals in Australia for approximately $859 million is the first of what we expect to be several major acquisitions in 2019. We have continued growing our acquisition pipeline and look forward to capitalizing on diverse and accretive opportunities through the coming year.”
FOURTH QUARTER AND RECENT HIGHLIGHTSNet income of $0.21 and NFFO of $0.31 for the fourth quarter, both on a per diluted share basis; On a full year basis, 2018 net income per share of $2.76 and NFFO of $1.37; Entered into definitive agreements to acquire and lease back 11 Australian hospitals operated by Healthscope Ltd. (“Healthscope”) for an aggregate purchase price of approximately $859 million; the agreements also provide for up to $350 million of additional investments in improvements, expansions and redevelopments; Previously announced completion of sale of MPT’s equity investment in Ernest Health, Inc. in October resulting in total proceeds of approximately $176 million; Through January sold 11.9 million shares of common stock under the Company’s “at-the-market” program generating approximately $200 million in proceeds, and further strengthening the balance sheet in anticipation of future acquisitions.
MPT’s pending investments of up to $1.2 billion in 11 Healthscope hospitals are expected to immediately generate rental revenues that strongly exceed the Company’s cost of capital on a per share basis. Such spread is substantially similar to that which the Company has recently achieved in U.S. and European hospital real estate investments.
The acquisition provides MPT and its shareholders with irreplaceable assets in the strongest Australian markets operated by the country’s second largest private hospital operator. Other immediate benefits of the transaction include diversification of both the geographies and tenants in MPT’s portfolio. Australia will be the Company’s third continent and sixth country while Healthscope will become one of MPT’s top five operators by size and rental revenue.
Included in the financial tables accompanying this press release is information about the Company’s assets and liabilities, net income and reconciliations of net income to NFFO, all on a basis comparable to 2017 results. In addition, a reconciliation of pro forma total gross assets to total assets is included in the financial tables accompanying this press release.
OPERATING RESULTS AND OUTLOOK
Net income for the fourth quarter and year ended December 31, 2018 was $78 million ($0.21 per share), and $1.02 billion ($2.76 per share), respectively compared to $72 million ($0.19 per share) and $290 million ($0.82 per share) in the year earlier periods.
NFFO for the fourth quarter and year ended December 31, 2018 was $112 million ($0.31 per share), and $501 million ($1.37 per share), respectively compared to $135 million ($0.37 per share) and $475 million ($1.35 per share) in the year earlier periods.
The Company increased its estimate of 2019 acquisitions from $2.0 billion to $2.5 billion and maintained its estimate of 2019 net income as a range from $1.01 to $1.05 per diluted share and 2019 NFFO as a range from $1.42 to $1.46 per diluted share. A reconciliation of NFFO guidance to net income is included with the financial tables accompanying this press release.
These estimates do not include the effects, if any, of unexpected real estate operating costs, changes in accounting pronouncements, litigation costs, debt refinancing costs, acquisition costs, currency exchange rate movements, interest rate hedging activities, write-offs of straight-line rent or other non-recurring or unplanned transactions. These estimates may change if the Company acquires or sells assets in amounts and at times different from estimates, market interest rates change, debt is refinanced, new shares are issued, additional debt is incurred, other operating expenses vary, income from investments in tenant operations vary from expectations, or existing leases do not perform in accordance with their terms.
CONFERENCE CALL AND WEBCAST
The Company has scheduled a conference call and webcast for Thursday, February 7, 2019 at 11:00 a.m. Eastern Time to present the Company’s financial and operating results for the quarter ended December 31, 2018. The dial-in numbers for the conference call are 844-535-3969 (U.S.) and 409-937-8903 (International); both numbers require passcode 2688239. The conference call will also be available via webcast in the Investor Relations’ section of the Company’s website, www.medicalpropertiestrust.com.
A telephone and webcast replay of the call will be available beginning shortly after the call’s completion through February 21, 2019. Dial-in numbers for the replay are 855-859-2056 and 404-537-3406 for U.S. and International callers, respectively. The replay passcode for both U.S. and International callers is 2688239.
The Company’s supplemental information package for the current period will also be available on the Company’s website under the “Investor Relations” section.
About Medical Properties Trust, Inc.
Medical Properties Trust, Inc. is a self-advised real estate investment trust formed to capitalize on the changing trends in healthcare delivery by acquiring and developing net-leased healthcare facilities. MPT’s financing model helps facilitate acquisitions and recapitalizations and allows operators of hospitals and other healthcare facilities to unlock the value of their real estate assets to fund facility improvements, technology upgrades and other investments in operations. Facilities include acute care hospitals, inpatient rehabilitation hospitals, long-term acute care hospitals, and other medical and surgical facilities. For more information, please visit the Company’s website at www.medicalpropertiestrust.com.
The statements in this press release that are forward looking are based on current expectations and actual results or future events may differ materially. Words such as “expects,” “believes,” “anticipates,” “intends,” “will,” “should” and variations of such words and similar expressions are intended to identify such forward-looking statements. 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 pending transactions; net income per share for 2019; NFFO per share for 2019; resulting financial gains from pending transactions; the amount of acquisitions of healthcare real estate, if any; results from potential sales and joint venture arrangements, if any; capital markets conditions; estimated leverage metrics; 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 arrangements, 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 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, 2017 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 press release.
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CONTACT: Tim Berryman
Director – Investor Relations
Medical Properties Trust, Inc.
KEYWORD: UNITED STATES NORTH AMERICA ALABAMA
INDUSTRY KEYWORD: HEALTH HOSPITALS REIT CONSTRUCTION & PROPERTY
SOURCE: Medical Properties Trust, Inc.
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PUB: 02/07/2019 08:30 AM/DISC: 02/07/2019 08:30 AM