Attached files
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8-K - FORM 8-K - MEDICAL PROPERTIES TRUST INC | g27822e8vk.htm |
EX-99.1 - EX-99.1 - MEDICAL PROPERTIES TRUST INC | g27822exv99w1.htm |
Exhibit 99.2
2nd Quarter 2011 Supplemental Information
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
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 Companys 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 Companys website
at www.medicalpropertiestrust.com. The information contained on the Companys
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)
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 managements 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