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8-K - FORM 8-K - MEDICAL PROPERTIES TRUST INCg27822e8vk.htm
EX-99.1 - EX-99.1 - MEDICAL PROPERTIES TRUST INCg27822exv99w1.htm
Exhibit 99.2
(MEDICAL PROPERTIES TRUST LOGO)
2nd Quarter 2011 Supplemental Information
(GRAPHIC)
Paradise Valley Hospital, San Diego, California
Medical Properties Trust, Inc.
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

 


 

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 for the Six Months Ended June 30, 2011
    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, 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 to Funds from Operations
MEDICAL PROPERTIES TRUST, INC. AND SUBSIDIARIES
Reconciliation of Net Income to Funds From Operations

(Unaudited)
                                 
    For the Three Months Ended     For the Six Months Ended  
    June 30, 2011     June 30, 2010     June 30, 2011     June 30, 2010  
FFO information
                               
Net income attributable to MPT common stockholders
  $ 2,639,645     $ 6,223,120     $ 13,419,251     $ 3,401,150  
Participating securities’ share in earnings
    (281,310 )     (328,185 )     (596,670 )     (678,906 )
 
                       
Net income, less participating securities’ share in earning
  $ 2,358,335     $ 5,894,935     $ 12,822,581     $ 2,722,244  
 
Depreciation and amortization
                               
Continuing operations
    8,355,023       5,766,003       16,248,279       11,890,895  
Discontinued operations
          330,765             1,085,979  
Loss (gain) on sale of real estate
          (6,161,756 )     (5,324 )     (6,177,825 )
 
                       
Funds from operations
  $ 10,713,358     $ 5,829,947     $ 29,065,536     $ 9,521,293  
 
Acquisition costs
    616,081       884,523       2,656,053       949,163  
Debt refinancing costs
    3,788,998       6,214,211       3,788,998       6,214,211  
Executive severance
          2,830,221             2,830,221  
Real estate impairment charge
    564,005             564,005        
Loan impairment charge
                      12,000,000  
Write-off of other receivables
    1,845,968             1,845,967        
 
                       
Normalized funds from operations
  $ 17,528,410     $ 15,758,902     $ 37,920,559     $ 31,514,888  
 
Share-based compensation
    1,823,597       1,433,366       3,661,306       2,963,100  
Debt costs amortization
    1,011,107       1,259,000       1,998,062       2,736,390  
Additional rent received in advance (A)
    (300,000 )     10,000,000       (600,000 )     10,000,000  
Straight-line rent revenue
    (2,280,189 )     176,908       (4,014,863 )     (1,674,554 )
 
                       
Adjusted funds from operations
  $ 17,782,925     $ 28,628,176     $ 38,965,064     $ 45,539,824  
 
                       
 
                               
Per diluted share data
                               
Net income, less participating securities’ share in earning
  $ 0.02     $ 0.06     $ 0.12     $ 0.03  
Depreciation and amortization Continuing operations
    0.08       0.06       0.14       0.13  
Discontinued operations
                      0.01  
Loss (gain) on sale of real estate
          (0.06 )           (0.07 )
 
                       
Funds from operations
  $ 0.10     $ 0.06     $ 0.26     $ 0.10  
 
Acquisition costs
    0.01             0.03       0.01  
Debt refinancing costs
    0.03       0.06       0.03       0.07  
Executive severance
          0.03             0.03  
Real estate impairment charge
                       
Loan impairment charge
                      0.14  
Write-off of other receivables
    0.02             0.02        
 
                       
Normalized funds from operations
  $ 0.16     $ 0.15     $ 0.34     $ 0.35  
 
Share-based compensation
    0.02       0.02       0.03       0.03  
Debt costs amortization
          0.01       0.02       0.03  
Additional rent received in advance (A)
          0.10             0.11  
Straight-line rent revenue
    (0.02 )           (0.04 )     (0.02 )
 
                       
Adjusted funds from operations
  $ 0.16     $ 0.28     $ 0.35     $ 0.50  
 
                       
 
(A)   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.
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 loan origination costs) and after adjustments for unconsolidated partnerships and joint ventures. 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 management’s 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 June 30, 2011
                                 
    Real Estate     Percentage     Total     Percentage  
    Assets     of Total Assets     Revenue     of Total Revenue  
         
General Acute Care Hospitals
  $ 897,244,188       53.5 %   $ 44,236,779       61.3 %
Long-Term Acute Care Hospitals
    322,561,991       19.2 %     17,056,711       23.6 %
Medical Office Buildings
    15,795,436       0.9 %     865,509       1.2 %
Rehabilitation Hospitals
    182,468,168       10.9 %     9,157,040       12.7 %
Wellness Centers
    15,624,817       0.9 %     830,676       1.2 %
Net other assets
    245,025,587       14.6 %            
         
Total
  $ 1,678,720,187       100.0 %   $ 72,146,715       100.0 %
         
Investments and Revenue by Operator — As of June 30, 2011
                                 
    Real Estate     Percentage     Total     Percentage  
    Assets     of Total Assets     Revenue     of Total Revenue  
         
Prime Healthcare
  $ 430,112,248       25.6 %   $ 22,522,244       31.2 %
Vibra Healthcare, LLC
    132,918,169       7.9 %     9,119,873       12.6 %
HealthSouth Corporation
    97,757,589       5.8 %     4,655,921       6.5 %
RehabCare
    83,434,567       5.0 %     3,997,842       5.5 %
Reliant Healthcare Partners
    73,851,400       4.4 %     3,806,972       5.3 %
14 other operators
    615,620,627       36.7 %     28,043,863       38.9 %
Net other assets
    245,025,587       14.6 %            
 
                       
Total
  $ 1,678,720,187       100.0 %   $ 72,146,715       100.0 %
         
Investment and Revenue by State — As of June 30, 2011
                                 
    Real Estate     Percentage     Total     Percentage  
    Assets     of Total Assets     Revenue     of Total Revenue  
         
California
  $ 455,222,748       27.1 %   $ 24,428,360       33.9 %
Texas
    346,926,067       20.7 %     17,179,077       23.8 %
Utah
    66,355,303       4.0 %     3,300,033       4.6 %
Missouri
    60,921,029       3.6 %     3,103,064       4.3 %
New Jersey
    58,000,000       3.5 %     2,738,889       3.8 %
17 other states
    446,269,453       26.6 %     21,397,292       29.6 %
Net other assets
    245,025,587       14.5 %            
         
Total
  $ 1,678,720,187       100.0 %   $ 72,146,715       100.0 %
         

3


 

Lease Maturity Schedule — As of June 30, 2011
                         
(Dollars in thousands)                   Percent of total  
Total portfolio (1)   Total leases     Base rent (2)     base rent  
2011
    2     $ 3,407       3.0 %
2012
    3       2,851       2.5 %
2013
                 
2014
    2       4,731       4.2 %
2015
    2       3,788       3.4 %
2016
    1       2,250       2.0 %
2017
                 
2018
    6       12,603       11.1 %
2019
    8       12,502       11.0 %
2020
    2       3,208       2.8 %
Thereafter
    28       68,144       60.0 %
 
                 
 
    54     $ 113,484       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 June 30, 2011
                                                                         
                            Amounts Due  
Instrument   Rate Type     Rate     Balance     2011     2012     2013     2014     2015     Thereafter  
6.875% Notes Due 2021
  Fixed     6.88 %   $ 450,000,000     $     $     $     $     $     $ 450,000,000  
 
BB&T Revolver
  Variable     1.69 %     39,600,000             39,600,000                          
 
2011 Credit Facility Revolver
  Variable     (1)                                            
 
2016 Unsecured Notes
  Fixed     7.71 %(2)     125,000,000                                     125,000,000  
 
2006 Exchangeable Notes
  Fixed     6.13 %     9,175,000       9,175,000                                
 
2008 Exchangeable Notes
  Fixed     9.25 %(3)     82,000,000                   82,000,000                    
 
Northland — Mortgage Capital Term Loan
  Fixed     6.20 %     14,539,729       110,457       231,789       249,384       265,521       282,701       13,399,877  
 
                                                         
 
 
                  $ 720,314,729     $ 9,285,457     $ 39,831,789     $ 82,249,384     $ 265,521     $ 282,701     $ 588,399,877  
 
                                                         
 
 
    Debt Discount     (2,005,877 )                                                
 
                                                         
 
 
                  $ 718,308,852                                                  
 
                                                         
 
(1)   Represents a $330 million unsecured revolving credit facility with spreads over LIBOR ranging from 2.60% to 3.40%.
 
(2)   Represents weighted-average rate for four traunches of the 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.
 
(3)   On July 14, the Company completed a tender offer for $69.5 million of the 2013 Exchangeable Notes.

5


 

Consolidated Balance Sheets
MEDICAL PROPERTIES TRUST,INC. AND SUBSIDIARIES
Consolidated Balance Sheets
                 
    June 30, 2011     December 31, 2010  
    (Unaudited)          
Assets
               
Real estate assets
               
Land,buildings and improvements, and intangible lease assets
  $ 1,227,250,997     $ 1,032,369,288  
Mortgage loans
    165,000,000       165,000,000  
 
           
Gross investment in real estate assets
    1,392,250,997       1,197,369,288  
Accumulated depreciation and amortization
    (92,342,635 )     (76,094,356 )
 
           
Net investment in real estate assets
    1,299,908,362       1,121,274,932  
 
Cash and cash equivalents
    227,905,625       98,408,509  
Interest and rent receivable
    26,676,630       26,175,635  
Straight-line rent receivable
    32,983,500       28,911,861  
Other loans
    54,978,453       50,984,904  
Other assets
    36,267,617       23,057,868  
 
           
Total Assets
  $ 1,678,720,187     $ 1,348,813,709  
 
           
Liabilities and Equity
               
Liabilities
             
Debt, net
  $ 718,308,852     $ 369,969,691  
Accounts payable and accrued expenses
    46,377,266       35,974,314  
Deferred revenue
    20,847,300       23,136,926  
Lease deposits and other obligations to tenants
    24,484,952       20,156,716  
 
           
Total liabilities
    810,018,370       449,237,647  
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 - 110,571,240 shares at June 30, 2011 and 110,225,052 shares at December 31, 2010
    110,571       110,225  
Additional paid in capital
    1,055,389,297       1,051,785,240  
Distributions in excess of net income
    (179,930,751 )     (148,530,467 )
Accumulated other comprehensive income (loss)
    (6,709,695 )     (3,640,751 )
Treasury shares, at cost
    (262,343 )     (262,343 )
 
           
Total Medical Properties Trust, Inc. stockholders’ equity
    868,597,079       899,461,904  
 
           
 
Non-controlling interests
    104,738       114,158  
 
           
Total Equity
    868,701,817       899,576,062  
 
           
 
Total Liabilities and Equity
  $ 1,678,720,187     $ 1,348,813,709  
 
           

6


 

Acquisitions for the Six Months Ended June 30, 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