Medical Properties Trust, Inc. Reports 39% Increase in Normalized FFO Per Share in First Quarter 2013

  Medical Properties Trust, Inc. Reports 39% Increase in Normalized FFO Per
  Share in First Quarter 2013

             Net Income Increases 148% Over 2012’s First Quarter

Business Wire

BIRMINGHAM, Ala. -- April 26, 2013

Medical Properties Trust, Inc. (the “Company”) (NYSE: MPW) today announced
financial and operating results for the first quarter ended March 31, 2013.

FIRST QUARTER AND RECENT HIGHLIGHTS

  *Achieved first quarter Normalized Funds from Operations (“FFO”) per
    diluted share of $0.25, up 39% compared with $0.18 per diluted share
    reported in the first quarter of 2012;
  *Issued 12,650,000 shares of stock for $14.25 per share reflecting an
    increase of 46% in value over the prior share offering in February 2012;
  *Further strengthened balance sheet with nearly $500 million in liquidity
    for near-term acquisitions;
  *Paid 2013 first quarter cash dividend of $0.20 per share, resulting in a
    dividend payout ratio of a very well-covered 80% of Normalized FFO; and
  *Subsequent to the first quarter, sold two long-term acute care hospitals,
    for an expected gain of approximately $2.1 million.

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 FFO and AFFO, all on a comparable basis to
2012 periods.

“Medical Properties Trust remains the only healthcare REIT focused exclusively
on funding hospitals and other related facilities, and our first quarter
results demonstrate the power of this strategy,” said Edward K. Aldag, Jr.,
Chairman, President and CEO of Medical Properties Trust. “Over the past 10
years, we have invested approximately $3.0 billion in 101 transactions with an
average first year cap rate of approximately 10%. Recently, we have delivered
four consecutive quarters of year-over-year normalized FFO per share growth as
well as a strong, stable and well-covered dividend. During the first quarter
we raised $173 million through an offering of 12.65 million common shares,
which, when combined with our revolving credit facility, provides us with
nearly $500 million in immediately available resources to continue to acquire
hospital real estate with double digit long-term returns. We are delighted
with our results and look forward to continued success.”

OPERATING RESULTS

First quarter 2013 total revenues increased 42% to $58.4 million compared with
$41.3 million for the first quarter of 2012. Normalized FFO for the quarter
increased 55% to $34.8 million compared with $22.5 million in the first
quarter of 2012. Per share Normalized FFO increased 39% to $0.25 per diluted
share in the 2013 first quarter, compared with $0.18 per diluted share in the
first quarter of 2012.

Net income for the first quarter of 2013 was $26.2 million (or $0.18 per
diluted share) compared with net income of $10.6 million (or $0.08 per diluted
share) in the first quarter of 2012.

PORTFOLIO UPDATE AND FUTURE OUTLOOK

Since January 1, 2013, the Company has agreed to fund the construction of a
rehabilitation hospital in Post Falls, ID for $14.4 million. In addition, in
April 2013 the Company sold two long-term acute care hospitals in Arizona and
Texas where leases had expired to their operators for total proceeds of $18.5
million. The Company expects to realize a gain on these two sales of
approximately $2.1 million in the second quarter of 2013 and estimates that
its investment in these two properties generated an unlevered internal rate of
return of 10.3%. There are no other lease expirations in 2013.

At March 31, 2013, the Company had total real estate and related investments
of approximately $2.1 billion comprised of 83 healthcare properties in 25
states leased or loaned to 24 hospital operating companies. The Company
continues to believe that acquisition volume and timing, along with current
capital market conditions, will generate Normalized FFO per share in 2013 of
$1.10.

Guidance estimates do not include the effects, if any, of real estate
operating costs, litigation costs, debt refinancing costs, acquisition costs,
interest rate hedging activities, write-offs of straight-line rent or other
non-recurring or unplanned transactions. These estimates will change if the
Company acquires assets totaling more or less than its expectations, the
timing of acquisitions varies from expectations, capitalization rates vary
from expectations, market interest rates change, debt is refinanced, new
shares are issued, additional debt is incurred, assets are sold, 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 Friday, April 26,
2013 at 11:00 a.m. Eastern Time to present the Company’s financial and
operating results for the quarter ended March 31, 2013. The dial-in telephone
numbers for the conference call 866-515-2910 (U.S.) and 617-399-5124
(International); using passcode 53605329. 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 from shortly
after the completion of the call through May 10, 2013. Telephone numbers for
the replay are 888-286-8010 and 617-801-6888 for U.S. and International
callers, respectively. The replay passcode is 36151225.

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 Birmingham, Alabama based self-advised
real estate investment trust formed to capitalize on the changing trends in
healthcare delivery by acquiring and developing net-leased healthcare
facilities. These facilities include inpatient rehabilitation hospitals,
long-term acute care hospitals, regional acute care hospitals, ambulatory
surgery centers and other single-discipline healthcare 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 capacity of the Company’s
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 restructuring of the Company’s investments in non-revenue
producing properties; the payment of future dividends, if any; completion of
additional debt arrangement, and additional investments; national and
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, 2012, 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.


MEDICAL PROPERTIES TRUST, INC. AND SUBSIDIARIES

Consolidated Balance Sheets

                                       March 31, 2013     December 31, 2012
Assets                                   (Unaudited)         (A)
Real estate assets
Land, buildings and improvements,        $ 1,280,194,338     $ 1,242,375,982
and intangible lease assets
Construction in progress and other         13,719,055          38,338,985
Net investment in direct financing         315,638,905         314,411,549
leases
Mortgage loans                            368,650,000       368,650,000   
Gross investment in real estate            1,978,202,298       1,963,776,516
assets
Accumulated depreciation and              (135,380,788  )    (126,733,639  )
amortization
Net investment in real estate assets       1,842,821,510       1,837,042,877
                                                             
Cash and cash equivalents                  75,675,211          37,311,207
Interest and rent receivable               49,838,480          47,586,709
Straight-line rent receivable              38,560,795          35,859,703
Other assets                              220,299,834       221,085,156   
Total Assets                             $ 2,227,195,830    $ 2,178,885,652 
                                                             
Liabilities and Equity
Liabilities
Debt, net                                $ 900,133,586       $ 1,025,159,854
Accounts payable and accrued               65,620,577          65,960,792
expenses
Deferred revenue                           19,384,238          20,609,467
Lease deposits and other obligations      20,487,269        17,341,694    
to tenants
Total liabilities                          1,005,625,670       1,129,071,807
                                                             
Equity
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 - 149,141,049       149,141             136,336
shares at March 31, 2013 and
136,335,427 shares at December 31,
2012
Additional paid in capital                 1,470,736,814       1,295,916,192
Distributions in excess of net             (237,398,195  )     (233,494,130  )
income
Accumulated other comprehensive            (11,655,257   )     (12,482,210   )
income (loss)
Treasury shares, at cost                  (262,343      )    (262,343      )
Total Equity                              1,221,570,160     1,049,813,845 
                                                             
Total Liabilities and Equity             $ 2,227,195,830    $ 2,178,885,652 




(A) Financials have been derived from the prior year audited financials.



MEDICAL PROPERTIES TRUST, INC. AND SUBSIDIARIES

Consolidated Statements of Income
(Unaudited)

                               For the Three Months Ended
                                 March 31, 2013           March 31, 2012
                                                           (A)
Revenues
Rent billed                      $   32,306,305            $   30,151,892
Straight-line rent                   2,660,994                 1,359,093
Income from direct                   8,756,471                 1,835,161
financing leases
Interest and fee income             14,716,820              7,921,420    
Total revenues                       58,440,590                41,267,566
Expenses
Real estate depreciation             8,647,150                 8,293,131
and amortization
Property-related                     415,339                   227,270
Acquisition expenses                 190,549                   3,425,012
General and                         7,818,196               7,591,555    
administrative
Total operating expenses            17,071,234              19,536,968   
Operating income                     41,369,356                21,730,598
                                                           
Interest and other                  (15,157,366   )          (12,811,119  )
income (expense)
Income from continuing               26,211,990                8,919,479
operations
Income (loss) from                  (1,865        )          1,686,749    
discontinued operations
Net income                           26,210,125                10,606,228
Net income attributable
to non-controlling                  (53,633       )          (42,358      )
interests
Net income attributable
to MPT common                    $   26,156,492           $   10,563,870   
stockholders
                                                           
                                                           
Earnings per common
share - basic :
Income from continuing           $   0.19                  $   0.07
operations
Income from discontinued            -                       0.01         
operations
Net income attributable
to MPT common                    $   0.19                 $   0.08         
stockholders
                                                           
Earnings per common
share - diluted:
Income from continuing           $   0.18                  $   0.07
operations
Income from discontinued            -                       0.01         
operations
Net income attributable
to MPT common                    $   0.18                 $   0.08         
stockholders
                                                           
Dividends declared per           $   0.20                  $   0.20
common share
                                                               .
                                                           
Weighted average shares              140,346,579               124,906,358
outstanding - basic
Weighted average shares              141,526,311               124,906,358
outstanding - diluted
                                                           
                                                           
(A) Financials have been restated to reclass the operating results of certain
properties sold in 2012 to discontinued operations.



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


                               For the Three Months Ended
                                 March 31, 2013          March 31, 2012
                                                          (A)
FFO information:
Net income attributable
to MPT common                    $   26,156,492           $   10,563,870
stockholders
Participating
securities' share in                (193,062     )          (251,867     )
earnings
Net income, less
participating                    $   25,963,430           $   10,312,003
securities' share in
earnings
                                                          
Depreciation and
amortization:
Continuing operations                8,647,150                8,293,131
Discontinued operations             -                      453,342      
Funds from operations            $   34,610,580           $   19,058,476
                                                          
Acquisition costs                   190,549                3,425,012    
Normalized funds from            $   34,801,129           $   22,483,488
operations
                                                          
Share-based                          1,918,855                1,858,456
compensation
Debt costs amortization              896,732                  855,382
Additional rent                      (300,000     )           (300,000     )
received in advance (B)
Straight-line rent                  (3,892,628   )          (1,733,696   )
revenue and other
Adjusted funds from              $   33,424,088          $   23,163,630   
operations
                                                          
                                                          
                                                          
Per diluted share data:
Net income, less
participating                    $   0.18                 $   0.08
securities' share in
earnings
Depreciation and
amortization:
Continuing operations                0.06                     0.07
Discontinued operations             -                      -            
Funds from operations            $   0.24                 $   0.15
                                                          
Acquisition costs                   0.01                   0.03         
Normalized funds from            $   0.25                 $   0.18
operations
                                                          
Share-based                          0.01                     0.01
compensation
Debt costs amortization              0.01                     0.01
Additional rent                      -                        -
received in advance (B)
Straight-line rent                  (0.03        )          (0.01        )
revenue and other
Adjusted funds from              $   0.24                $   0.19         
operations
                                                          
                                                          
(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 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.

Contact:

Medical Properties Trust, Inc.
Charles Lambert, 205-397-8897
Managing Director – Capital Markets
clambert@medicalpropertiestrust.com
 
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